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Report No. : |
341156 |
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Report Date : |
22.09.2015 |
IDENTIFICATION DETAILS
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Name : |
FATIMA FERTILIZER COMPANY LIMITED |
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Registered Office : |
E-110,
Khayaban-e-Jinnah, Lahore Cantt, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
2003 |
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Com. Reg. No.: |
0046552 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
The principal activity of the Company is manufacturing,
producing, buying, selling, importing and exporting fertilizers and chemicals |
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No. of Employees : |
1,773 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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 |
FATIMA FERTILIZER COMPANY LIMITED
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Registered
Address |
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E-110,
Khayaban-e-Jinnah, Lahore Cantt, Lahore, Pakistan |
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Tel # |
92 (42) 111-328-462 |
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Fax # |
92 (42) 36621389 |
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a. |
Nature of Business |
The principal activity of the Company is manufacturing,
producing, buying, selling, importing and exporting fertilizers and chemicals |
|
b. |
Year Established |
2003 |
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c. |
Registration No. |
0046552 |
|
In Islamabad & Karachi |
Mukhtar Garh,
Sadiqabad, District
Rahim Yar Khan,
Punjab, Pakistan
|
M. Yousuf Adil Saleem & Company (Chartered Accountants) |
|
Subject Company was established as a Public Limited Company in 2003
and is listed at Karachi, Lahore & Islamabad Stock Exchanges of Pakistan |
|
Names |
Designation |
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Mr. Arif Habib Mr. Fawad Ahmed Mukhtar Mr. Fazal Ahmed Sheikh Mr. Faisal Ahmed Mukhtar Mr. M. Abad Khan Mr. Muhammad Kashif Habib Mr. Peter Vang Christensen Mr. Tariq Jamali |
Chairman Chief Executive
Officer Director Director Director Director Director Director |
|
Categories |
Percentage (%) |
|
Directors, Chief Executive Officer, and their spouse and minor
children Associated Companies, Undertakings and related parties Executives Public Sector Companies & Corporations Banks, Development Financial Institutions, Non Banking Financial
Institutions, Insurance Companies, Takaful, Modarabas & Pension Funds Mutual Funds General Public Foreign Companies Others |
34.85 43.61 0.08 0.36 4.04 0.91 10.89 2.19 3.08 |
|
(1) Pak Arab
Fertilizers Limited, Pakistan. (2) Reliance Weaving Mills Limited,
Pakistan. (3) Reliance Commodities (Pvt) Limited,
Pakistan. (4) Fatima Sugar Mills Limited, Pakistan. (5) Fatima Energy Limited, Pakistan. (6) Pakistan Mining Company Limited,
Pakistan. |
The principal activity of the Company is
manufacturing, producing, buying, selling, importing and exporting fertilizers
and chemicals.
It purchases raw material against L/C, D/P basis.
Its exporting Countries are Middle East & Far East Countries.
It’s mainly import from China,
Korea, Malaysia, Singapore & European Countries.
Its major customers are Distribution Companies, International Buyers,
Local Farmers, Trading Companies etc.
Subject employs about 1,773 persons in its set up.
|
Years |
In Pak Rupees |
|
2013 2014 |
33,495,889,000/- 36,169,191,000/- |
2014 2013
(Metric Tons)
Urea
Designed Production Capacity 500,000 500,000
Actual Production 372,712 351,738
Can
Designed Production Capacity 420,000 420,000
Actual production 433,005 419,104
NP
Designed Production Capacity 360,000
360,000
Actual production 375,091 332,539
Subject mainly import from Companies belongs to
China, Korea, Malaysia, Singapore & European Countries
|
(1) Allied Bank
Limited, Pakistan. (2) Summit Bank
Limited, Pakistan. (3) Askari Bank
Limited, Pakistan. (4) Bank Alfalah
Limited, Pakistan. (5) Faysal Bank
Limited, Pakistan. (6) Habib Bank
Limited, Pakistan. (7) Habib
Metropolitan Bank Limited, Pakistan. (8) Meezan Bank
Limited, Pakistan. (9) MCB Bank Limited,
Pakistan. (10) National Bank of
Pakistan Limited, Pakistan. (11) Soneri Bank Limited,
Pakistan. (12) Standard
Chartered Bank, Pakistan. (13) Silk Bank
Limited, Pakistan. (14) The Royal Bank
of Scotland, Pakistan. (15) United Bank
Limited, Pakistan. |
With immense pleasure,
we announce that Fatima had another successful year of operations scoring all
time highest production, sales and profitability. In 2014, the Company has
achieved its highest ever after-tax-profit of PKR 9.26 Billion for the year
registering an increase of more than 15.40% over last year. The after tax
profit of the Company improved to 25.60% (2013: 23.95%) and registering an EPS
of PKR 4.41 (2013: PKR 3.82) showing an improvement of 15.45% over last year.
The improvement in performance resulted due to significant increase in
revenues, unprecedented production achievements on back of improved capacity
utilization and smooth operations, resulting in healthy cash generation. This
was augmented by concentrated diversification and nationwide expansion of
distribution network, strengthened brand, increased demand of products, income
from technical services rendered outside Pakistan, efficient utilization of
resources, downwards markup rate negotiations with lenders and optimum funds
utilization.Revenues increased to PKR 36.17 Billion as compared PKR 33.50
Billion last year
- an increase of 7.98%, mainly due to the improved nationwide demand and
availability of products. Product wise contribution towards revenue remained
tilted towards NP, with 40%, whereas CAN and UREA contributed 28% and 31%
respectively. Nitric Acid and Ammonia contributed the remaining 1%
An amount of PKR
7.12 Billion (2013: PKR 6.51 Billion) was contributed during the year in respect of Custom duties,
Sales tax and Income tax.
As a responsible
citizen of our country your Company contributed 19.7% (2013: 19.4%) of total
revenue back to the Economy
Karachi Chamber of Commerce & Industry.(KCCI)
Federation Pakistan Chamber of Commerce &
Industry.(FPCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 104.45 |
|
UK Pound |
1 |
Rs. 160.25 |
|
Euro |
1 |
Rs. 117.50 |
Subject Company was established in 2003. The principal activity of the Company is manufacturing, producing,
buying, selling, importing and exporting fertilizers and chemicals. Market
reputation is satisfactory. 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.65.75 |
|
|
1 |
Rs.102.17 |
|
Euro |
1 |
Rs.74.37 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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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.