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Report No. : |
343857 |
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Report Date : |
08.10.2015 |
IDENTIFICATION DETAILS
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Name : |
ATTOCK CEMENT PAKISTAN LIMITED |
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Registered Office : |
D-70, Block 4, Kehkashan 5, Clifton, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2015 |
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Date of Incorporation : |
14.10.1981 |
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Com. Reg. No.: |
0008979 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Principally engaged
in manufacturing, selling and marketing of cement |
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No. of Employees : |
800 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Pakistan |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
PAKISTAN - ECONOMIC OVERVIEW
Decades of internal political disputes and low levels of
foreign investment have led to slow growth and underdevelopment in Pakistan.
Agriculture accounts for more than one-fourth of output and two-fifths of
employment. Textiles account for most of Pakistan's export earnings, and
Pakistan's failure to diversify its exportshas left the country vulnerable to
shifts in world demand. Official unemployment was 6.9% in 2014, but this fails
to capture the true picture, because much of the economy is informal and underemployment
remains high. Pakistan’s human development continues to lag behind most of the
region.. As a result of political and macroeconomic instability, the Pakistani
rupee has depreciated more than 40% since 2007. The government agreed to an
International Monetary Fund Standby Arrangement in November 2008 to preventa
balance of payments crisis, but the IMF ended the Arrangement early because of
Pakistan’s failure to implement required reforms. The economy has stabilized,
it continues to underperform and foreign investment has not returned to levels
seen during themid-2000’s, due to investor concerns related to governance,
electricity shortages, , and a slow-down in the global economy. Remittances
from overseas workers, averaging more than$1 billion a month, remain a bright
spot for Pakistan. After a small current account surplus in fiscal year 2011
(July 2010/June 2011), Pakistan's current account turned to a deficit where it
remained through 2014, spurred by higher prices for imported oil and lower prices
for exported cotton. In September 2013, after facing balance of payments
concerns, Pakistan entered into a three-year, $6.7 billion IMF Extended Fund
Facility. The Sharif government has since made modest progress implementing
fiscal and energy reforms, and in December 2014 the IMF described Pakistan’s
progress as “broadly on track.” Pakistan remains stuck in a low-income,
low-growth trap, with growth averaging about 3.5% per year from 2008 to 2014.
Pakistan must address long standing issues related to government revenues and
the electricity and natural gas sectorsin order to spur the amount of economic
growth that will be necessary to employ its growing and rapidly urbanizing
population, more than half of which is under 22. Other long term challenges include
expanding investment in education and healthcare, adapting to the effects of
climate change and natural disasters, and reducing dependence on foreign
donors.
|
Source
: CIA |
ATTOCK CEMENT PAKISTAN LIMITED
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Registered
Address |
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D-70, Block 4, Kehkashan 5, Clifton, Karachi, Pakistan |
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Tel No. |
92 (21) 111-171-717, 35309773, 35309774 |
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Fax No. |
92 (21) 35309775 |
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Email |
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a. |
Nature of Business |
Principally
engaged in manufacturing, selling and marketing of cement |
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b. |
Year Established |
14th October, 1981 |
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c. |
Registration No. |
0008979 |
Hub Chowki, Lasbella,
Baluchistan, Pakistan
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In Karachi, Lahore & Rawalpindi |
|
A.F. Ferguson & Co. (Chartered Accountants) |
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Public Limited Company (Listed at stock exchanges of Pakistan) |
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Names |
Designation |
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Dr. Ghaith R. Pharaon Mr. Babar Bashir Nawaz Mr. Laith G. Pharaon Mr. Wael G. Pharaon Mr. Shuaib A. Malik Mr. Abdus Sattar Mr. Agha Sher Shah |
Chairman Chief Executive Director Director Director Director Director |
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Categories |
Shareholding (%) |
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Directors and their spouses and minor
children Associated Companies, Undertakings &
Related Parties Executives Banks, Development Financial Institutions, Non
Banking Financial Institutions, Insurance Companies & Takaful Modarabas & Mutual Funds Others Institutions Foreign Individuals Pharaon Investment Group Limited, Holding
S.A.L. Beirut, Lebanon |
0.10 --- --- 2.90 1.69 5.89 1.11 4.25 84.06 |
|
The Company is a subsidiary of Pharaon Investment Group Limited
Holding S.A.L., Lebanon |
A. Subsidiary
None
B. Associated
Companies
|
(1) Attock Petroleum
Limited, Pakistan. (2) National Refinery
Limited, Pakistan. (3) Pakistan
Oilfields Limited, Pakistan. (4) Attock Refinery
Limited, Pakistan. (5) Attock Oil, U.K. (6) Attock Information Technologies Services
(Pvt.) Limited, Pakistan. (7) Attock
Gen Limited, Pakistan. |
Principally engaged
in manufacturing, selling and marketing of cement
800
2015 2014
(In Metric Tons)
Production Capacity
-
Clinker 1,740,000 1,740,000
-
Cement 1,827,000 1,827,000
Actual Production
- Clinker 1,835,254
1,800,135
- Cement 1,877,150 1,912,921
|
Years |
In Pak Rupees |
|
2014 2015 |
12,547,251,000/- 13,086,120,000/- |
Various local and international
|
Mainly to
South Africa, Srilanka, Iraq
and in other East African Countries and Indian Ocean Markets |
|
(1) Habib Bank Limited, Pakistan. (2) MCB Bank Limited, Pakistan. (3) Allied Bank Limited, Pakistan. (4) Standard Chartered Bank, Pakistan. (5) The Bank of Punjab, Pakistan. (6) Faysal Bank Limited, Pakistan. (7) Askari Bank Limited, Pakistan. (8) Bank Al-Habib Limited, Pakistan. (9) Soneri Bank Limited, Pakistan. (10) National Bank of Pakistan, Pakistan. (11) United Bank Limited, Pakistan. (12) NIB Bank
Limited, Pakistan. (13) Meezan Bank
Limited, Pakistan. (14) Dubai
Islamic Bank Pakistan Limited. |
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Mainly to Afghanistan, India & South African Countries |
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Subject mainly import from Companies
belongs to European Countries, Japan,
Korea, Taiwan, Singapore, China & Malaysia |
Pakistan economy
witnessed some key events during the year 2014-2015. Stabilization of the economy
to a great extent with inflation hitting the lowest level at 4.8% for the year
2014-15, improvement of international ratings by Moody’s and Standard &
Poor’s, reduction in benchmark discount rate, successful IMF reviews, re-entry
of Pakistan into international bond markets, successful off loading of shares
of three leading commercial banks in local and international markets, the
historical agreement with Chinese on China Pak Economic Corridor (CPEC) were
some of the hall marks of last year. The decline in international oil prices
helped in stabilization of PKR to USD exchange rate and building up of foreign
exchange reserves. While there is some improvement in GDP growth, there are
significant concerns on the economic performance for the year. These include
reduction in growth of commodity producing sectors of Agriculture and Industry
which are generally supposed to create employment in the economy and the
decline in foreign direct investment (FDI). Besides this the energy and water
crisis continue to dominate the debate on growth prospects. Real GDP growth of
4.2% during FY15 has slightly improved as compared to last year but still far
below the growth rate of other countries in the region.
The year
2014-2015 was a record breaking year of the company both in operational and
financial terms. The company achieved record production and record despatches.
Beside this the company achieved record sales in value and cloaked highest ever
profit after tax. The margins, both gross and operating, improved to 34% and
25% as compared to previous year’s level of 30% and 21% respectively. The
cement sales prices, during the year under review, largely remained stable and
cost parameters with specific reference to coal and power remained under
control. The Company continued to use excess liquidity in buying coal at lower
levels besides investing in equipments bringing operational efficiencies in
terms of use of electricity. These were also major factors in improvements of
margins.
The Company
contributed Rs. 1,231 million during the year to the national exchequer on
account of payments towards Sales Tax, Income tax, Excise duty and other
statutory levies. An amount of approximately Rs. 416 million was also paid as
withholding income tax deducted by the Company from shareholders, employees,
suppliers and contractors. In addition to that your Company earned precious
foreign exchange of approximate US$ 40 million during the year under review
from export sales.
Federation Pakistan Chamber of Commerce &
Industry.
Rawalpindi Chamber of Commerce &
Industry.
All Pakistan Cement Manufacturers
Association.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 104.25 |
|
UK Pound |
1 |
Rs. 157.90 |
|
Euro |
1 |
Rs. 116.25 |
Subject Company was established in 14th
October, 1981 and is engaged in manufacturing, selling and marketing of cement.
Overall reputation is sound. Trade relations are reported as fair. Subject can
be considered for normal business dealings at usual trade terms and conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.25 |
|
|
1 |
Rs.99.53 |
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Euro |
1 |
Rs.73.47 |
INFORMATION DETAILS
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Analysis Done by
: |
HEE |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.