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Report No. : |
342137 |
|
Report Date : |
25.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
CENTURY PAPER & BOARD MILLS LIMITED |
|
|
|
|
Registered Office : |
Lakson Square Building No. 2, Sarwar Shaheed Road, Karachi-74200 |
|
|
|
|
Country : |
Pakistan |
|
|
|
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Financials (as on) : |
30.06.2015 |
|
|
|
|
Year of Establishment : |
1984 |
|
|
|
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Com. Reg. No.: |
0012021 |
|
|
|
|
Legal Form : |
Public Limited
Company |
|
|
|
|
Line of Business : |
The principal activity of the Company is
the 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 |
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|
|
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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 |
|
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 |
|
Business Name |
CENTURY PAPER
& BOARD MILLS LIMITED |
|
Registered
Address |
|
Lakson Square Building No. 2, Sarwar Shaheed
Road, Karachi-74200, Pakistan |
|
Tel # |
92 (21) 35698000 |
|
Fax # |
92 (21) 35681163, 35683410 |
|
Email |
|
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 |
14-Ali Block, New Garden Town,
Lahore, Pakistan
62 K.M., Lahore Multan Highway,
N-5, District Kasur, Pakistan
|
BDO Ebrahim & Co. (Chartered Accountants) |
|
Subject Company was established as a Public Limited Company in 1984 |
|
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 |
|
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 |
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.
The principal
activity of the Company is the manufacture, sale and marketing of paper, board
and related products.
1,543
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
|
Years |
In Pak Rupees |
|
2014 2015 |
14,667,669,000/- 13,186,182,000/- |
|
Mainly exist at major cities of Pakistan |
(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 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.
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.
·
Federation Pakistan
Chamber of Commerce & Industry.(FPCCI)
·
Karachi Chamber of
Commerce & Industry.(KCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 104.20 |
|
UK Pound |
1 |
Rs. 159.35 |
|
Euro |
1 |
Rs. 115.85 |
Lakson Group of
Companies is engaged in diversified activities, which includes Chemical,
Food & Allied, Tobacco, Fuel & Energy, Information Technology, Paper
& Board, Surgical and Insurance etc. The group is well known and directors
are resourceful and experienced businessmen. Their trade relations are reported
as fair. Payments to creditors etc 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.66.10 |
|
|
1 |
Rs.100.89 |
|
Euro |
1 |
Rs.73.96 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.