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MIRA INFORM REPORT
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Report No. : |
504723 |
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Report Date : |
21.04.2018 |
IDENTIFICATION DETAILS
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Name : |
ARCHROMA PAKISTAN LIMITED |
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Formerly Known As : |
CLARIANT PAKISTAN LIMITED |
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Registered Office : |
1-A/1, Sector-20, Korangi Industrial Area, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.09.2016 |
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Date of Incorporation : |
1996 |
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Com. Reg. No.: |
0037175 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
The company is
engaged in the manufacture and sale of chemicals, dyestuffs and emulsions. It
also act as an indenting agent |
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No. of Employees : |
312 |
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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Status : |
Good |
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Payment Behaviour : |
Slow and 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
ARCHROMA
PAKISTAN LIMITED (FORMERLY: CLARIANT PAKISTAN LIMITED)
Full
Address
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Registered
Address |
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1-A/1, Sector-20, Korangi Industrial Area, Karachi,
Pakistan |
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Tel # |
92 (21) 35046710, 35046711 |
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Fax # |
92 (21) 35046712 |
Short
Description Of Business
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a. |
Nature of Business |
The Company is
engaged in the manufacture and sale of Chemicals, dyestuffs and emulsions. It
also act as an indenting agent |
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b. |
Year Established |
1996 |
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c. |
Registration # |
0037175 |
Factories
Korangi Industrial Area, Karachi.
Petaro Road, Jamshoro.
Katarband Road, Thokar Niaz Baig, Lahore.
Branches
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In Faisalabad & Lahore |
Auditors
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KPMG Taseer Hadi
& Co. (Chartered Accountants) |
Legal
Status
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The Company is a limited liability company
and is incorporated and domicified in Pakistan. The Company is listed at
Pakistan Stock Exchange |
Details
of Chairman/Directors
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Names |
Designation |
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Mr. Mujtaba Rahim Mr. Hans Lourens Dr. S. Mubarik Ali Mr. Veqar Arif Mr. Roland Waibel Mr. Thomas Winkler Mr. Rahat Kaunain Hassan |
Chairman / CEO Director Director Director Director Director Director |
Shareholders
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Categories |
Percentage (%) |
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Associated Companies, Undertakings and related parties Directors, Chief Executive Officer & their spouse and minor
children NIT & ICP Banks, Development Financial Institutions, Non Banking Financial
Institutions Insurance Companies Modarbas and mutual funds General Public Others |
75.00 0.00 0.00 1.23 4.04 6.08 12.07 1.58 |
Associated
Companies
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None |
Holding
Company
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The Company is a subsidiary of Archroma Textiles S.A.R.L. (Incorporated
in Luxembourg) |
Principle
Activities
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The Company is
engaged in the manufacture and sale of Chemicals, dyestuffs and emulsions. It
also act as an indenting agent |
Number
of Employees
312
Plant
Capacity & Production
Production during the year was 56,921 tonnes (2015: 49,906 tonnes). The capacity
is indeterminable because of multi-product plants involving varying processes
of manufacture. The Company's production was according to market demand.
Trade
Suppliers (Foreign)
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Subject import globally from Companies
belongs to China, Korea, Japan, Singapore & European
Countries |
Annual
Sales Turnover
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Year |
In Pak Rupees |
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2015 2016 |
9,440,404,000/- 12,473,706,000/- |
Distributors
Mainly exist at major cities of Pakistan
Bankers
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(1)
Citibank, N.A., Pakistan. (2)
Faysal Bank Limited, Pakistan. (3)
Habib Bank Limited, Pakistan. (4)
HSBC Bank Middle East Limited, Pakistan. (5)
Meezan Bank Limited, Pakistan. (6)
National Bank of Pakistan. (7)
United Bank Limited, Pakistan. (8)
Standard Chartered Bank, Pakistan. |
Future
Outlook
Going forward, there are considerable challenges in the months ahead.
However the Company on its part has systems and procedures in place to meet
surrounding risk and challenges.
Financial
Position
Very Sound
Change
of Name
Because of the
change of holding Company from Clariant International Ltd to Archroma Textiles
S.A.R.L, the name of the Company has been changed from Clariant Pakistan Ltd to
Archroma Pakistan Ltd. The Board has approved the change of name subject to
approval by the authorities and shareholders at their meeting scheduled on 22nd
November 2013.
Memberships
KCCI
FPCCI
KATI
Comments
Subject Company enjoys excellent credibility internationally as well as
in Pakistan. Chairman & directors of the Company are reported as
resourceful and experienced businessmen. Payments are reported as slow and
delayed. 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 66.02 |
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1 |
INR 92.72 |
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Euro |
1 |
INR 81.45 |
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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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NIS |
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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
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
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.