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MIRA
INFORM REPORT
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Report No. : |
496479 |
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Report Date : |
09.03.2018 |
IDENTIFICATION DETAILS
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Name : |
TARIQ GLASS INDUSTRIES LIMITED |
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Registered Office : |
128-J, Model Town, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
1978 |
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Com. Reg. No.: |
0006434 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
The
Company is engaged in the manufacture and sale of glass containers,
tableware and float glass |
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No. of Employees : |
797 |
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 |
Company Name
TARIQ GLASS INDUSTRIES LIMITED
Full Address
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Registered
Address |
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128-J, Model Town, Lahore, Pakistan |
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Tel # |
92 (42) 111-343-434 |
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Fax # |
92 (42) 35857692, 35857693 |
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Email |
Work Location
33 K.M., Lahore / Sheikhupura Road,
Lahore, Punjab, Pakistan
Short Description Of Business
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a. |
Nature
of Business |
The Company is principally engaged in the manufacture and sale of glass containers, tableware and float
glass |
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b. |
Year
Established |
1978 |
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c. |
Registration
# |
0006434 |
Auditors
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KPMG Taseer Hadi & Co. (Chartered Accountants) |
Legal Status
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Public Limited Company (Listed at
stock exchange of Pakistan) |
Details of Chief Executive / Directors
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Names |
Designation |
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Mr. Mansoor Irfani Mr. Tariq Baig Mr. Omer Baig Mrs. Naima Shahnaz Baig Mr. Mohammad Baig Mr. Saad Iqbal Mr. Tajammal Hussain Bokharee |
Chairman Managing Director Director Director Director Director Director |
Shareholders
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Categories |
Shareholding (%) |
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List of Shareholders are attached in
separate file in PDF Format |
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Associated Companies
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(1) Omer Glass Industries Limited,
Pakistan. |
Business Activities
The Company is principally engaged in
the manufacture and sale of glass containers, tableware and float
glass
Number of Employees
797
Capacity And Production
2017 2016
M. Tons M. Tons
Pulled
Production 251,780
223,809
Packed
Production 183,486
168,263
The capacity of plant is indeterminable because capacity of
furnaces to produce glassware varies with the measurement / size of glass
produced.
Trade Suppliers (Foreign)
Subject import globally from Companies
belongs to China, Korea, Taiwan, European Countries, Canada & Malaysia
Distributors Network
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Mainly exist at major cities of
Pakistan |
Bankers
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(1) National Bank
of Pakistan. (2) Habib Bank
Limited, Pakistan. (3) United Bank
Limited, Pakistan. (4) The Bank of
Punjab, Pakistan. (5) MCB Bank
Limited, Pakistan. (6) The Bank of
Khyber, Pakistan. (7) Askari Bank
Limited, Pakistan. (8) Meezan Bank
Limited, Pakistan. (9) Bank
Alfalah Limited, Pakistan. (10) Faysal
Bank Limited, Pakistan. (11) Sindh Bank
Limited, Pakistan. (12) Bank
Islami Pakistan Limited, Pakistan. (13) NIB Bank
Limited, Pakistan. (14) Samba Bank
Limited, Pakistan. (15) Albaraka
Bank (Pakistan) Limited, Pakistan. (16) Standard
Chartered Bank, Pakistan. |
Financial Position
Sound
Business Review
The Company has registered record
net sales Rs. 9,903 million against Rs.8,076 million in the previous year
showing a robust growth of 22.62% on the back of economic up cycle due to
improved domestic activities. The profit after tax and EPS for the period under
report are Rs. 760 million and Rs. 10.34 as compared to corresponding figures
of last year of Rs. 490 million and Rs. 6.67 respectively. The lucrative
profitability is attributable to efficient monitoring and development of
operating procedures, implementation of effective marketing plans, promotional
schemes and media campaigns to secure volumes of tableware as well as float
glass produce. Consequently, the Company succeeded in increased consumption of
its goods through demand pull strategy.
Economy Review
Economic growth in Pakistan has
historically remained volatile, lacking a steady growth path and adding to the
economic uncertainty about the country's economic conditions. The outgoing
fiscal year has witnessed an impressive growth in agriculture output and in the
services sector. Real GDP growth rate for the FY 2017 is measured at 5.28
percent, which is the highest in last 10 years. The accommodative monetary
policy stance, increase in development spending, substantial growth in private
sector credit, inspired activities in the power sector, friendly and
progressive policies for real sector growth, such as relief measures and in
particular for the agriculture sector, were instrumental in achieving this
impressive growth performance. Inflation is controlled to some extent and the
current deficit narrowed with favorable prices for oil and other commodities.
We believe that the social and economic prospects will improve further if
Government successfully implements its plans to alleviate the energy crisis and
improve security situation in the country.
Memberships
FPCCI
LCCI
Comments
Subject Company was established in 1978 and is principally engaged in the manufacture &
sale of glass containers, tableware & float glass. Overall reputation is
satisfactory. 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 64.92 |
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1 |
INR 90.23 |
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Euro |
1 |
INR 80.54 |
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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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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
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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.