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MIRA INFORM REPORT
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Report No. : |
502717 |
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Report Date : |
16.04.2018 |
IDENTIFICATION DETAILS
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Name : |
PAKISTAN CABLES LIMITED |
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Registered Office : |
B-21, Pakistan Cables Road, Sindh
Industrial Trading Estate, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
1953 |
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Com. Reg. No.: |
0000591 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is principally engaged in the manufacturing of copper rods,
wires, cables and conductors, aluminium extrusion profiles and PVC compounds |
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No. of Employees : |
463 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Maximum Credit Limit : |
2,598,200.60 USD |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow & Delayed |
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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
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Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Pakistan |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
PAKISTAN - ECONOMIC OVERVIEW
Decades of internal political disputes and low levels of foreign investment
have led to underdevelopment in Pakistan. Pakistan has a large English-speaking
population. A challenging security environment, electricity shortages, and a
burdensome investment climate have deterred investors. Agriculture accounts for
one-fifth of output and two-fifths of employment. Textiles and apparel account
for more than half of Pakistan's export earnings; Pakistan's failure to
diversify its exports has left the country vulnerable to shifts in world
demand. Pakistan’s GDP growth has gradually increased since 2012. Official
unemployment was 6% in 2017, but this fails to capture the true picture,
because much of the economy is informal and underemployment remains high. Human
development continues to lag behind most of the region.
In 2013, Pakistan embarked on a $6.3 billion IMF Extended Fund Facility,
which focused on reducing energy shortages, stabilizing public finances,
increasing revenue collection, and improving its balance of payments position.
The program concluded in September 2016. Although Pakistan missed several
structural reform criteria, it restored macroeconomic stability, improved its
credit rating, and boosted growth. The Pakistani rupee, after heavy
depreciation in 2013, remained relatively stable against the US dollar in 2015-17.
Balance of payments concerns have reemerged, however, as a result of increased
imports and declining remittances.
Pakistan must continue to address several longstanding issues, including
expanding investment in education and healthcare, adapting to the effects of
climate change and natural disasters, improving the country’s business
environment, reducing dependence on foreign donors, and widening the country’s
tax base. Given demographic challenges, Pakistan’s leadership will be pressed
to implement economic reforms, promote further development of the energy
sector, and attract foreign investment to support sufficient economic growth
necessary to employ its growing and rapidly urbanizing population, much of
which is under the age of 25.
In an effort to boost development, Pakistan and China are implementing
the “China-Pakistan Economic Corridor,” with $60 billion in investments
targeted towards energy and other infrastructure projects. Pakistan believes
CPEC investments will enable growth rates of over 6% of GDP by laying the
groundwork for increased exports. CPEC-related obligations, however, have
raised IMF concern that capital outflows that will begin to increase in 2020.
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Source
: CIA |
Business Name
PAKISTAN
CABLES LIMITED
Full
Address
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Registered
Address |
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B-21, Pakistan Cables Road, Sindh
Industrial Trading Estate, Karachi, Pakistan |
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Tel |
92 (21) 32561170, 32561175 (5
Lines) |
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Fax |
92 (21) 32585115, 32564614 |
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Website |
Short
Description Of Business
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a. |
Nature of Business |
Principally engaged in the manufacturing of copper rods, wires, cables
and conductors, aluminium extrusion profiles and PVC compounds |
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b. |
Year Established |
1953 |
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c. |
Registration # |
0000591 |
Head
Office
Arif Habib Center, 1st Floor, 23 M.T. Khan Road, Karachi,
Pakistan
Regional
Offices
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Address |
Lahore Co-operative Insurance Building, Shahrah-e-Quaid-e-Azam,
Lahore, Pakistan |
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Tel # |
92 (42) 37355783, 37120790, 37120791, 37353520 |
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Fax # |
92 (42) 37355480 |
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Address |
455-A, Adamjee Street, Rawalpindi, Pakistan |
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Tel # |
92 (51) 5125429, 5512797, 5125202 |
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Fax # |
92 (51) 5587029 |
Auditors
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KPMG Taseer Hadi & Co. (Chartered Accountants) |
Legal
Status
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The Company was incorporated in Pakistan as a private Limited company
on 22 April 1953 and in 1955, It was converted into a public limited company
in which year it also obtained a listing on the Karachi Stock Exchange. Company
is listed at Pakistan Stock Exchange |
Details
of Directors
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Names |
Designation |
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Mr. Mustapha A. Chinoy Mr. Kamal A. Chinoy Mr. Haroun Rashid Mr. Roderick Macdonald Mrs. Sadia Khan Mr. Saquib H. Shirazi Mr. Fahd Kamal Chinoy Mr. Muhammad Ashfaq Alam Mr. Naveed Kamran Baloch |
Chairman Chief Executive Director Director Director Director Director Director Director |
Shareholders
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Categories |
Shareholding (%) |
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Associated Companies, Undertakings and
Related Parties Mutual Funds Executives Public Sector Companies & Corporations Banks, Development Finance Institutions,
Non-Banking Finance Companies, Insurance Companies, Takaful, Modarabas and
pension funds General Public Others |
33.11 31.92 0.34 --- 1.66 25.18 0.73 |
Associates
A. Subsidiary
None
B. Associated Companies
International
Industries Limited, Pakistan.
Heritage
Development, Pakistan.
Intermark (Pvt)
Limited, Pakistan.
GK Technologies,
Pakistan.
International
Steels Limited, Pakistan.
Products
Principally engaged in the manufacturing of copper rods, wires, cables
and conductors, aluminium extrusion profiles and PVC compounds
Number
of Employees
463
Annual
Sales Turnover
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Years |
In Pak Rupees |
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2015 2016 2017 |
6,956,670,000/- 6,849,559,000/- 8,083,511,000/- |
Plant
Capacity & Actual Production
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The production capacity of the plant cannot be determined as this depends
on the relative proportions of the various types and sizes of cables and
wires and type of aluminium sections produced. |
Trade
Suppliers (Foreign)
Subject import globally from Companies belongs
to European Countries, Singapore, China, Korea, Taiwan,
Malaysia, Japan & U.S.A.
Customers
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Major customers are Distribution Companies, Retail & Wholesale
Traders, Construction Companies, Government Corporations, Industrial
Corporations etc |
Bankers
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(1) Standard Chartered Bank (Pakistan) Limited, Pakistan. (2) Bank Al-Habib Limited, Pakistan. (3) Habib Bank Limited, Pakistan. (4) Meezan Bank Limited, Pakistan. (5) MCB Bank Limited, Pakistan. (6) NIB Bank Limited, Pakistan. (7) Industrial and Commercial Bank of China Limited, Pakistan. |
Business
Review
Overall the business environment has shown improvement, bringing about
investment in infrastructure, greater economic activity, several new projects
and growth in the residential construction market. With this backdrop, the
Company has had a good financial year in terms of sales and has witnessed
significant growth in all its key markets. The Company’s efforts in
debottlenecking several areas of constraint supported by better output and
closer alignment of all functions has assisted in meeting the growing demands
of the market. At the same time, with competitive scenario within the industry
also continues to become increasingly challenging thereby creating the risk of
eroding margins in the future.
Contribution
to National Exchequer
The Company’s contribution to the National Exchequer by way of taxes,
levies, sales tax, etc. amounted to Rs. 1,897 million during the year (2015-16:
Rs. 1,551 million).
Future
Outlook
The Company has a cautiously optimistic outlook with respect to the
coming year, based on positive trends on the economic front. If there is
political stability, the market for wire and cable is expected to continue to
grow in volume terms based on domestic demand through development of the
country’s electrical infrastructure, enhancement in energy capacity, growth in
the housing and construction segment and expansion in several industry
segments. However, should there be ongoing uncertainty with respect to the
political scenario, there is a genuine possibility of a slowdown, which could
have an impact on your Company’s markets. In recent times, there has been a
growth in the import of cables, primarily due to various exemptions on duties
and sales tax for imports of wire and cables provided to certain CPEC and
special projects. The same exemptions are not available if our customers
procure the product from local manufacturers of wire and cable. Should this
trend continue, the Company’s sales may come under pressure. As such, several efforts
in recent times have been underway through the All Pakistan Cables and
Conductors Manufacturers Association, as the benefits available to imported
cables are not available to local manufacturers of wire and cable. This has
resulted in an imbalanced playing field, which is an issue that impacts the
entire domestic industry. Various efforts are being made at several levels
within the Government to provide the local industry with a chance to compete
with imports via a level playing field. In this context, the Company’s strategy
is to remain proactive with respect to approaching the Government on issues
impacting the local industry. The Company intends to continue its efforts in
marketing its products, focus on enhanced output and support this with an aggressive
sales program. In addition, the Company expects to benefit from some recent
capacity enhancements in certain value streams
Memberships
KCCI
FPCCI
Comments
In view of current disturbed economic and political
situation, we would advise to deal with all the business in Pakistan with some
caution.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.22 |
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1 |
INR 92.77 |
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Euro |
1 |
INR 80.34 |
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PKR |
1 |
INR 0.57 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.