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MIRA INFORM REPORT
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Report No. : |
485251 |
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Report Date : |
15.01.2018 |
IDENTIFICATION DETAILS
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Name : |
MUGHAL IRON & STEEL
INDUSTRIES LIMITED |
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Registered Office : |
31-A, Shadman 1, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
1940 |
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Com. Reg. No.: |
0071627 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
The
principal activity of the Company is manufacturing and trading of mild steel
products. |
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No. of Employees : |
706 |
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
MUGHAL
IRON & STEEL INDUSTRIES LIMITED
Full
Address
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Registered Address |
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31-A, Shadman 1, Lahore, Pakistan |
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Tel # |
92 (42) 111-000-007, 35960841, 35960842, 35960843 |
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Fax # |
92 (42) 35960846 |
Short
Description Of Business
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a. |
Nature of Business |
The principal
activity of the Company is manufacturing and trading of mild steel products |
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b. |
Year Established |
1940 |
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c. |
Registration No. |
0071627 |
Branches
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41 Peco Road Badami Bagh, Lahore, Pakistan |
Works
Location
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17 K.M., Sheikupura Road, Lahore, Pakistan |
Auditors
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Fazal Mehmood & Co. (Chartered Accountants) |
Legal
Status
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Public Limited Company (Listed at stock exchange of Pakistan) |
Details
of Directors
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Names |
Designation |
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Mr. Mirza Javed Iqbal Mr. Syed Salman Ali Shah Mr. Jamshed Iqbal Mr. Khurram Javed Mr. Muhammad Mubeen Tariq Mughal Mr. Fazeel Bin Tariq Mr. Muhammad Mateen Jamshed Mr. Fahad Javaid Mr. Muhammad Waleed Bin Tariq Mughal |
Chairman Chief Executive Director Director Director Director Director Director Director |
Shareholders
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Categories |
Shareholding (%) |
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Sponsors, Directors, CEO and Children Banks, DFI and NBFI Insurance Companies Mutual Funds General Public (Local) General Public (Foreign) Others Modarabas Foreign Companies |
74.9980 2.2063 1.7942 7.0406 10.4448 0.2933 3.1758 0.0147 0.0324 |
Associates
A. Subsidiary
None
B. Associated
Companies
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(1) Mughal Steel Metallurgies Corporation Limited, Pakistan (2) Kalabagh Steel Mills Corporation Limited, Pakistan. (3) Mughal Energy Limited, Pakistan. (4) Mughal Steel Re-Rolling Industries Limited, Pakistan. (5) Indus Steel Mills Corporation (Pvt) Limited, Pakistan. (6) Al-Bashir Steel Industries (Pvt) Ltd, Pakistan. (7) Indus Engineering (Pvt) Limited, Pakistan. |
Business
Activities
The
principal activity of the Company is manufacturing and trading of mild steel
products.
It sells against Cash / Credit term basis to its domestic
customers.
Its major customers are Steel Traders, Construction Companies,
Government Organizations, Private Companies etc.
Subject operates from caption leased office & factory premises
located at commercial & industrial centers of Lahore.
Subject employs about 706 persons in its set up.
Annual
Sales Volume
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Years |
In Pak Rupees |
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2015 2016 2017 |
12,241,271,852/- 18,983,478,792/- 18,802,810,936/- |
Trade
Suppliers (Foreign)
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Subject import globally from Companies
belongs to European Countries, China, Korea, Japan, Taiwan, Singapore &
U.S.A. |
Customers
Major customers are Traders, Dealers,
Government Corporations, Engineering Companies, Construction Companies etc
Annual
Production Volume
2017 2016
Total installed capacity (MT)
Melting 642,000 546,000
Re-Rolling 688,000 688,000
Installed active capacity availability
(MT)
Melting 340,688 155,719
Re-Rolling 446,224 326,563
Actual production (MT)
Melting 116,207 99,657
Re-Rolling 241,773
245,675
Total active capacity available
is subject to availability of electricity and current available electricity
load and comprise of currently active mills. Currently, the company is fully
utilizing its available load capacity from its dedicated grid station and
captive gas fred power plant. Melting production is dependant on availability
of surplus load capacity after meeting re-rolling production. Increase in
installed melting capacity is due
to furnaces leased-in. During the year 19,279 MT of melting and 12,316 MT of
re-rolling production was outsourced.
Bankers
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(1) MCB Bank Limited, Pakistan. (2) Bank Alfalah Limited, Pakistan. (3) Soneri Bank Limited, Pakistan (4) Bank Islami Pakistan Limited, Pakistan. (5) Summit Bank Limited, Pakistan. (6) JS Bank Limited, Pakistan. (7) Meezan Bank Limited, Pakistan. (8) Dubai Islamic Bank Limited, Pakistan. (9) Askari bank Limited, Pakistan. (10) Samba Bank Limited, Pakistan. |
Company’s
Profile
With a history of over 50 years
of excellence to its credit, mughal iron & steel industries limited
(“misil”) is one of the leading companies of Pakistan in the iron and steel
sector. The company was incepted in the early 1950 in the form of a
proprietorship firm with a purpose to uplift trade, contribute to national
economy and ensure industrial growth of the country. In the turmoil that
surrounded the newly independent country, the sponsors came up with a strong
vision and devoted entirely to trade and industry, their dedication is truly
appreciated by their commendable clientele. The company is involved in
multidimensional activities from making billets of mild steel, spring steel,
deformed bar, re-bar, cold twisted rebar and a huge range of sections such as
i.beams, l.sections, c.section, h.beam, t.bar etc. In the down stream industry.
Over the years mughal steel has emerged as a thriving progressive steel
enterprise due to its ability to transform itself rapidly to meet the
challenges of a highly competitive global economy. Constant modernization,
introduction of state-of-the-art technology and being manned by the highly
efficient and dynamic team of employees, has enabled the company to stay ahead
in the industry and successfully meet the expectations of all customers.
Memberships
Lahore Chamber of Commerce &
Industry. (LCCI)
Federation Pakistan Chamber of Commerce
& Industry.(FPCCI)
Comments
Subject Company was established in 1940 and is engaged in manufacture & marketing of Billet, Ingot for Mild Steel, Carbon Steel, Special Steels and Stainless Steel. Market reputation is good. 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 63.53 |
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1 |
INR 86.05 |
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Euro |
1 |
INR 76.53 |
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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.