MIRA INFORM REPORT

 

 

Report No. :

346732

Report Date :

26.10.2015

 

IDENTIFICATION DETAILS

 

Name :

CENTURY PAPER & BOARD MILLS LIMITED

 

 

Registered Office :

Lakson Square Building No. 2, Sarwar Shaheed Road, Karachi-74200

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

1984

 

 

Com. Reg. No.:

0012021  

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Subject is engaged in manufacture, sale and marketing of paper, board and related products

 

 

No. of Employees :

1,543

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

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

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D


Company name

                                   

Business Name

CENTURY PAPER & BOARD MILLS LIMITED

 

 

Company Address          

 

Registered Address

Lakson Square Building No. 2, Sarwar Shaheed Road, Karachi-74200, Pakistan

                       

Tel #

92 (21) 35698000

Fax #

92 (21) 35681163, 35683410

Email

info@centurypaper.com.pk

 

 

Short Description Of Business

 

a.

Nature of Business       

The principal activity of the Company is the manufacture, sale and marketing of paper, board and related products

b.

Year Established

1984

c.

Registration #

0012021  

 

 

Branches

 

14-Ali Block, New Garden Town,

Lahore, Pakistan

 

 

Factory Location

 

62 K.M., Lahore Multan Highway,

N-5, District Kasur, Pakistan      

 

 

Auditors

 

BDO Ebrahim & Co.

(Chartered Accountants)

 

 

 

Legal Status

 

Subject Company was established as a Public Limited Company in 1984

 

 

Details of Directors

 

Names

Designation

Mr. Iqbal Ali Lakhani

 

Mr. Aftab Ahmad

 

Mr. Zulfiqar Ali Lakhani

 

Mr. Amin Mohammed Lakhani

 

Mr. Tasleemuddin Ahmed Batlay

 

Mr. Shahid Ahmed Khan

 

Mr. Kemal Shoaib

 

Mr. Muhammad Imran Rafiq

Chairman

 

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Names

Shareholding (%)

Directors, CEO, Their Spouses & Minor Children

 

Associated Companies, Undertakings and related parties

 

NIT & ICP

 

Public Sector Companies & Corporations

 

Banks, Development Financial Institutions, Non Banking Financial Institutions

 

Modaraba & Mutual Funds

 

Insurance Companies

 

General Public

 

Others

 

0.04

 

 

68.13

 

5.52

 

 

2.21

 

 

 

1.08

 

2.25

 

0.25

 

12.08

 

8.43

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

                                                            None                                            

           

B.         Associated Companies

 

(1)   Lakson Tobacco Company Limited, Pakistan.

(2)   Colgate Palmolive Pakistan Limited, Pakistan.

(3)   Cyber Internet Services (Pvt) Limited, Pakistan.

(4)   Century Insurance Company Limited, Pakistan.

(5)   Tritex Cotton Mills Limited, Pakistan.

(6)   Clover Foods Pakistan Limited, Pakistan.

(7)   Merit Packaging Limited, Pakistan.

(8)   Siza Foods (Pvt) Limited, Pakistan.

(9)   Reliance Chemicals Limited, Pakistan.

(10) Century Power Generation Limited, Pakistan.

(11) Accuray Surgicals Ltd, Pakistan.

(12) Siza (Pvt) Limited, Pakistan.

(13) Siza Services (Pvt) Limited, Pakistan.

(14) Siza Commodities (Pvt) Limited, Pakistan.

(15) Premier Fashions (Pvt) Limited, Pakistan.

 

 

Products

 

The principal activity of the Company is the manufacture, sale and marketing of paper, board and related products.

 

 

Number of Employees

 

1,543

 

 

Capacity & Production - Tonnes

 

                                                                        2015                               2014

                                                                                                        Actual

                                                    Annual Capacity      Actual        Annual     Production

                                                    On Three Shifts     Production   Capacity

                                                                                                         On three

                                                                                                          Shifts

 

Paper & paper board produced         240,000            157,646     240,000     175,461        

Paper and paper board conversion       30,000              22,081       30,000       26,011   

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2014

2015

14,667,669,000/-

13,186,182,000/-

 

 

Distributors

 

Mainly exist at major cities of Pakistan

 

 

Bankers

 

(1)   Allied Bank Limited, Pakistan.

(2)   Al Baraka Bank (Pakistan) Limited, Pakistan.

(3)   Bank Alfalah Limited, Pakistan.

(4)   Barclays Bank PLC.

(5)   Faysal Bank Limited, Pakistan.

(6)   Habib Bank Limited, Pakistan.

(7)   Habib Metropolitan Bank Limited, Pakistan.

(8)   HSBC Bank Middle East Limited.

(9)   JS Bank Limited, Pakistan.

(10) MCB Bank Limited, Pakistan.

(11) Meezan Bank Limited, Pakistan.

(12) National Bank of Pakistan.

(13) NIB Bank Limited, Pakistan.

(14) Soneri Bank Limited, Pakistan.

(15) Standard Chartered Bank, Pakistan.

 

 

 

Market Review

 

Market demand for various Paper & Paperboard products during the year under review was stable throughout the year. However, Company could not maintain market share due to the massive influx of imports. Further, the cost of production remained high due to higher cost of producing energy to supplement Shortages on the national grid. In the Face of these high costs of production and depressed prices due to dumping, the Company was forced to sacrifice some market share by limiting production to what could be sold at prices that could offset product costs. This nevertheless resulted in limiting the losses. The Company continued to lobby the Government to prevent international dumping on behalf of the paperboard sector and is still doing it.

 

 

Sales

 

The severe internal and external market environment which prevailed during the year led to the decline in sales, both in terms of quantity and value. The Company sold 157 thousand tons of products for the year under review as compared to last year sales of 170 thousand tons. The rupee value of the net sales for the year under review stood at Rs. 13,186 million.

 

 

Memberships

 

Federation Pakistan Chamber of Commerce & Industry.(FPCCI)

Karachi Chamber of Commerce & Industry.(KCCI)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 104.40

UK Pound

1

          Rs. 158.75

Euro

1

          Rs. 118.00

 

 

Comments

 

Lakson Group of Companies is engaged in diversified activities, which includes Chemical, Food & Allied, Tobacco, Fuel & Energy, Information Technology, Paper & Board, Surgical and Insurance. The group is well known and directors are resourceful and experienced businessmen. Their trade relations are reported as fair.  Payments to creditors are reported as normal. The company can be considered for normal business dealings at usual trade terms and conditions.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.88

UK Pound

1

Rs.99.89

Euro

1

Rs.72.06

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

TRU

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

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

 

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

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

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

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.