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Report No. : |
342001 |
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Report Date : |
26.09.2015 |
IDENTIFICATION DETAILS
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Name : |
SERVICE INDUSTRIES LIMITED |
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Registered Office : |
Servis House, 2-Main Gulberg, Lahore |
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Country : |
Pakistan |
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Date of Incorporation : |
20.031959 |
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Com. Reg. No.: |
0000864 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Purchase, manufacture &
sale of Footwear, Tyres and Tubes and technical rubber products |
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No. of Employees : |
9039 |
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 : |
Slow but correct |
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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.
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.
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Source
: CIA |
SERVICE
INDUSTRIES LIMITED
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Registered
Address |
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Servis House, 2-Main Gulberg, Lahore, Pakistan |
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Tel # |
92 (42) 35751990 - 96 (6
Lines) |
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Fax # |
92 (42) 35710593, 35712109 |
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Email |
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a. |
Nature of Business |
Principal activities of the
Company are purchase, manufacture & sale of Footwear, Tyres and Tubes and
technical rubber products |
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b. |
Year Established |
1957 |
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c. |
Registration No. |
0000864 |
(1) G.T.
(2) Muridke-Sheikhupura
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S.M. Masood & Co. (Chartered Accountants) |
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Service Industries Limited was incorporated as a Private Limited Company on
March 20, 1957 and was converted to into a Public Limited Company on
September 23, 1959. The shares of the Company are quoted on the Lahore & Karachi
Stock Exchanges of Pakistan |
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Names |
Designation |
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Mr. Chaudhry Ahmed Javed Mr. Omar Saeed Mr. M. Ijaz Butt Mr. Arif Saeed Mr. Hasan Javed Mr. Riaz Ahmed Mr. Shaukat Ellahi Shaikh Mr. Muhammad Amin Mr. Manzoor Ahmed |
Chairman Chief Executive Officer Director Director Director Director Director Director Director |
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Categories |
Percentage (%) |
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Directors, Chief Executive
Officer and their spouse & minor children Associated Companies,
Undertakings and related parties NIT & ICP Banks, Development Financial
Institutions, Non-Banking Financial Institutions Insurance Companies Modarabas & Mutual Funds General Public (Local) Others |
44.7228 4.8229 0.0075 7.4432 0.0711 18.4338 22.8070 1.6916 |
(1) Service Sales Corporation (Pvt) Limited, Pakistan.
(2) Shahid Arif Investment (Pvt) Limited, Pakistan.
Principal activities of the Company are manufacture &
sale of Footwear, Tyres and Tubes and technical rubber products
9,039
Footwear and others
Due to the nature of the
Company’s business production capacity is not determinable.
Installed Capacity Actual Production
2014 2013 2014 2013
Tyres (Nos) 12,363,104 11,132,680 7,757,151 7,006,603
Tubes (Nos)
26,969,280 23,116,080 21,726,879 19,327,060
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Subject import
globally from Japan, China, Taiwan, Korea, African Countries & European
Countries. It’s Global Trade
Suppliers are Companies related to Machineries, Footwear Raw Materials, Rubber
Raw Materials, Leather Raw Materials |
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Mainly exist at major cities of
Pakistan deals with cash term basis |
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(1) Habib Bank Limited,
Pakistan. (2) United Bank Limited,
Pakistan. (3) MCB Bank Limited, Pakistan. (4) Faysal Bank Limited,
Pakistan. (5) Barclays Bank PLC,
Pakistan. (6) Allied Bank Limited,
Pakistan. (7) HSBC Bank Middle East
Limited, Pakistan. (8) SAMBA Bank Limited,
Pakistan. (9) Standard Chartered Bank,
Pakistan. (10) Bank Alfalah Limited, Pakistan. (11) Meezan Bank Limited,
Pakistan. |
The demand of footwear in the
world markets is predicted to drop. Due to the declining raw material prices,
pressure on the finished goods prices has been created for corresponding
selling price reduction. Power outage, recession in the world markets, lack of
development activity and law and order situation will continue to be major
causes of concern which are likely to adversely affect its profitability.
·
Lahore Chamber of Commerce & Industry.(LCCI)
·
Federation Pakistan Chamber of Commerce & Industry.(FPCCI)
·
Pakistan Footwear Manufacturers Association.(PFMA)
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Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 104.20 |
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UK Pound |
1 |
Rs. 159.35 |
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Euro |
1 |
Rs. 115.85 |
Subject is a well-established
company having fine track. Directors are reported as experienced, respectable
and having satisfactory means of their own. Trade relations are reported as
fair. Payments are usually correct and as per commitments. Subject can be
considered for normal business dealings at usual trade terms and conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.66.10 |
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UK Pound |
1 |
Rs.100.89 |
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Euro |
1 |
Rs.73.96 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TRU |
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.