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MIRA INFORM REPORT
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Report No. : |
484342 |
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Report Date : |
11.01.2018 |
IDENTIFICATION DETAILS
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Name : |
RYK MILLS LIMITED |
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Formerly Known As : |
RYK SUGAR MILLS LIMITED |
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Registered Office : |
75/4-D, Sarfraz Rafiqui Road, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.09.2015 |
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Date of Incorporation : |
05.06.2007 |
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Com. Reg. No.: |
0061422 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
The Company is principally
engaged in the business of production and sale of sugar and by-products and
to generate and sell electricity. |
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No. of Employees : |
916 |
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 (30.06.2017) |
Current Rating (30.09.2017) |
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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 slow growth and underdevelopment in Pakistan. Pakistan has a large English-speaking population. Nevertheless, 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 most 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 6.1% in 2016, 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 2016. Low global oil prices in 2016 contributed to a narrowing current account deficit and lower inflation. Remittances from overseas workers continued to be a key revenue source, also mitigating the impact of the lack of foreign investment and a growing trade deficit on the country’s current account.
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,” a $46 billion investment program targeted towards the energy sector and other infrastructure projects that Islamabad and Beijing had agreed on in early 2013.
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Source
: CIA |
Company
Name
RYK MILLS LIMITED
Full
Address
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Registered
Address |
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75/4-D, Sarfraz Rafiqui Road, Lahore, Pakistan |
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Tel # |
92 (42) 36601381, 36601382, 36601383,
36601384 |
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Fax # |
92 (42) 36601385 |
Mills
Location
Rakanabad Tehsil Liaquatpur, District
Rahim Yar Khan, Pakistan
Short
Description Of Business
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a. |
Nature of Business |
The Company is principally engaged in the business of production
and sale of sugar and by-products and to generate and sell electricity. The Company
has entered into Energy Purchase Agreement on 10th October, 2014
with National Transmission and
Despatch Company Limited through its Central Power Purchase Agency
relating to its 30 Mega Watt Bagasse fired electric power generation facility
located at Rakanabad Tehsil Liaquatpur, District Rahim Yar Khan |
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b. |
Incorporated |
5th June, 2007 |
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c. |
Registration
No. |
0061422 |
Auditors
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Riaz Ahmed & Company (Chartered
Accountants) |
Legal
Status
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Public Limited Company (Not listed at stock exchange of
Pakistan) |
Details
of Chief Executive / Directors
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Names |
Designation |
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Mr. Makhdum Omar Sheryar Mr. Tarik Jawaid Mrs. Bilqees Fatima Mr. Munir Hussain Mrs. Riffat Zamani Mrs. Tehmina Sadiq Javaid |
Chief Executive Director Director Director Director Director |
Shareholders
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Names |
No. of Shares |
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Mr. Makhdum Omar Sheryar Mr. Munir Hussain Ms. Irum Ameen Mr. Wajid Ahmad Khan Bhatti Mrs. Bilqees Fatima Mrs. Tehmina Sadiq Javaid Cascade Tek (Pvt) Limited, Pakistan Axe Capital Limited, Pakistan Ms. Mahrukh Jahangir Mrs. Naseem Javaid Mrs. Riffat Zamani Mr. Tarik Jawaid |
28,400,500 6,550,000 7,127,260 13,570,000 2,250,000 6,252,500 26,455,240 23,000,000 13,350,000 2,500 2,500 15,042,000 |
Associated
Companies
None
Business
Activities
The Company is principally
engaged in the business of production and sale of sugar and by-products and to
generate and sell electricity. The Company has entered into Energy Purchase
Agreement on 10th October, 2014 with National Transmission and Despatch Company Limited through its Central
Power Purchase Agency relating to its 30 Mega Watt Bagasse fired electric power
generation facility located at Rakanabad Tehsil Liaquatpur, District Rahim Yar
Khan
Number
of Employees
916
Capacity
And Production
2015 2014
Sugar
Installed crushing capacity for 127 (2014:
143 working days (Metric Tons) 1,524,000 1,716,000
Actual crushing (Metric Tons) 1,073,153
1,261,098
Actual Production (Metric Tons) 108,287 129,144
Sugar Recovery (Percentage) 10.09 10.24
Power Generation
Installed Capacity (Based on 8,760 tons)
(MWH) 262,800 -
Utilized capacity 34,853 -
Energy Delivered
32,218 -
Due to normal
technical stoppages during the season, 100% crushing capacity could not be
achieved.
Trade
Suppliers (Foreign)
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Subject import globally from Companies belongs to China, Korea, Taiwan, Japan, Malaysia &
European Countries. Its global trade suppliers are Companies related to Sugar
Plants & Machineries |
Annual
Sales Volume
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Years |
In Pak
Rupees |
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2015 2016 |
2,589,796,557/- 3,261,246,962/- |
Customers
Major customers are Private Companies,
Government Corporations, Distribution Companies, Retail & Wholesale Traders
deal with cash term basis
Bankers
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(1) Soneri Bank Limited, Pakistan. (2) Albaraka Bank (Pakistan) Limited. (3) National Bank of Pakistan. (4) NIB Bank Limited, Pakistan. (5) MCB Bank Limited, Pakistan. (6) Soneri Bank Limited, Pakistan. (7) Allied Bank Limited, Pakistan. (8) Soneri Bank Limited, Pakistan. (9) The Bank of Punjab, Pakistan. (10) Sindh Bank Limited, Pakistan. (11) Faysal Bank Limited, Pakistan. (12) JS Bank Limited, Pakistan. (13) Meezan Bank Limited, Pakistan. (14) Dubai Islamic Bank (Pakistan)
Limited, Pakistan. |
Memberships
LCCI
PSMA
FPCCI
Comments
Subject Company was established
in 5th June, 2007. Company is principally engaged in the business of
production and sale of sugar and by-products and to generate and sell electricity.
Directors are reported as qualified & resourceful 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 63.83 |
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1 |
INR 86.28 |
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Euro |
1 |
INR 76.13 |
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PKR |
1 |
INR 0.58 |
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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DIV |
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Report Prepared
by : |
TRU |
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
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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.