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MIRA
INFORM REPORT
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Report No. : |
492797 |
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Report Date : |
22.02.2018 |
IDENTIFICATION DETAILS
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Name : |
PAKISTAN SYNTHETICS LIMITED |
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Registered Office : |
3rd Floor, Karachi Dock Labour Board Building, 58- West Wharf Road,
Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
1984 |
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Com. Reg. No.: |
0012405 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
The principal activity of the Company is manufacturing and sale of
Plastic Caps and Crown Caps and Polyester Staple Fibre |
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No. of Employees : |
234 |
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 : |
Satisfactory |
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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 |
COMPANY NAME
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Business Name |
PAKISTAN SYNTHETICS
LIMITED
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Full Address
Registered Address
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3rd Floor, Karachi Dock Labour Board Building, 58- West Wharf Road,
Karachi, Pakistan |
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Tel No. |
92 (21) 32313031,
32313032, 32313033, 32313034 |
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Fax No. |
92 (21) 32310625 |
Short Description Of Business
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Nature of
Business |
The principal activity of the Company is manufacturing and sale of
Plastic Caps and Crown Caps and Polyester Staple Fibre |
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Year Established |
1984 |
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Registration # |
0012405 |
Factories Location
F. 1, 2, 3, & F. 13, 14 & 15, Hub Industrial
Trading Estate, District Lasbella,
Baluchistan
Plot No. A-5,
N.W.I.Z. Port Qasim Authority,
Karachi,
Pakistan
Auditors
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KPMG Taseer Hadi & Co. (Chartered
Accountants) |
Legal Status
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Pakistan
Synthetics Limited was incorporated on 18 November 1984 as a
private limited company in Pakistan and subsequently converted into a public
limited company on 30 December 1987. The shares of the Company are listed on
Karachi, Lahore and Islamabad Stock Exchanges with effect from 27 June 1995. |
Details of Management
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Names |
Designation |
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Mr. Umer Haji Karim Mr. Anwar Haji Karim Mr. Pir Muhammad A. Kaliya Mr. Abid Umer Mr. Sajid Haroon Mr. Aamir Amin Mr. Noman Yakoob |
Chairman Chief Executive Director Director Director Director Director |
Shareholders
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Categories |
Shareholding (%) |
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Individuals Joint Stock Companies Financial Institutions Investment Companies Insurance Companies Foreign Investors Banks Modaraba Leasing Mutual Fund |
88.38 --- 4.43 --- 3.36 0.61 0.01 0.01 0.01 3.19 |
Associates
A. Subsidiary
None
B. Associated Companies
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(1) Al-Karam Textiles (Pvt)
Limited, Pakistan. (2) Sattar (Pvt) Limited,
Pakistan. (3) Dhabeji Salt Works Pvt
Ltd, Pakistan. (4) Farooqi Food Industries, Pakistan. (5) Gul Agencies Pvt Ltd, Pakistan. (6) Haji Karim Haji Mohammad, Pakistan. (7) Iqbal Textile Mills Ltd, Pakistan. (8) Imran Crown Cork Pvt Ltd, Pakistan. (9) Muslim Cotton Mills Ltd, Pakistan. (10) Orient Textile Mills Ltd, Pakistan. (11) Pakistan Dairy Products Ltd, Pakistan. (12) Zaman Textile Mills Ltd, Pakistan. (13) Thermo King Pvt Ltd, Pakistan. |
Business Activities
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The principal activity of the Company is
manufacturing and sale of Plastic Caps and Crown Caps and Polyester Staple
Fibre |
Number of Employees
234
Plant Capacity and Production
2017 2016
Capacity available - Plastic and crown caps Cartons 504,000 504,000
Actual production - Plastic and crown caps Cartons 409,253 404,813
Capacity
available – PET Resin Metric Tons 28,000 28,000
Actual production
– PET Resin Metric Tons 20,952 ---
Since the production of plastic and crown
division is purely demand driven therefore variance is mainly attributed to the
reduced demand.
Trade Suppliers (Foreign)
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Subject import globally from Companies belongs to European Countries,
China, Korea, Singapore, Taiwan & Japan |
Customers
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Various local
& international |
Bankers
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(1) Habib Bank
Limited, Pakistan. (2) Habib
Metropolitan Bank Limited, Pakistan. (3) Bank Al
Habib Limited, Pakistan. (4) Askari Bank
Limited, Pakistan. (5) Meezan Bank
Limited, Pakistan. (6) Bank of
Punjab Limited, Pakistan. (7) Bank Alfalah
Limited, Pakistan. |
Future Outlook
Packaging segment of the Company has maintained track record of healthy
growth. However, because of
global economic rescission and volatility in commodity prices coupled with
exchange rate volatility and increasing conversion cost are key challenges to
be addressed in future period. These factors might hamper the growth of
packaging segment. Recent increase in gas prices will further hamper bottom
line.
Memberships
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KCCI
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FPCCI
Comments
Company enjoys high prestige and reputation in the business community, banks, financial institutions and customers. It is also amongst major contributors to the national exchequer. Directors of the Company are resourceful and experienced businessmen. Trade relations are reported as fair.
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 63.81 |
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1 |
INR 90.66 |
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Euro |
1 |
INR 79.94 |
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PKR |
1 |
INR 0.59 |
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 : |
SYL |
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
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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.