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MIRA INFORM REPORT
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Report No. : |
499392 |
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Report Date : |
29.03.2018 |
IDENTIFICATION DETAILS
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Name : |
EXIDE PAKISTAN LIMITED |
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Registered Office : |
A-44, Hill Street, Off: Manghopir Road, S.I.T.E., Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
1953 |
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Com. Reg. No.: |
0000564 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
The company is engaged in the manufacturing and sale of batteries,
chemicals and acid. |
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No. of Employees : |
442 |
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 & 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
EXIDE PAKISTAN
LIMITED
Full
Address
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Registered
Address & Factory |
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A-44, Hill Street, Off: Manghopir Road, S.I.T.E., Karachi, Pakistan |
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Tel # |
92 (21) 32593371 |
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Fax # |
92 (21) 32573573 |
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Email |
Short
Description Of Business
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a. |
Nature of Business |
The company is engaged in the manufacturing and sale of batteries,
chemicals and acid |
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b. |
Year Established |
1953 |
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c. |
Registration No. |
0000564 |
Branches
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In Lahore, Multan, Peshawar, Rawalpindi, Faisalabad & Sukkur |
Auditors
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A.F. Ferguson & Co. (Chartered Accountants) |
Legal
Status
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Exide Pakistan Limited (the Company) is a public limited company and
is incorporated in Pakistan. |
Details
of Management
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Names |
Designation |
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Mr. Arif Hashwani Mr. Arshad Shehzada Mr. Altaf Hashwani Mr. Hussain Hashwani Mr. S. Haider Mehdi Mr. S. M. Faiq Mr. Ayub Hameed Mr. Muhammad Kamran Shahzad |
Chairman Managing Director / CEO Director Director Director Director Director Director |
Shareholders
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Categories |
Shareholding (%) |
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Directors, CEO & Children NIT & ICP Banks, DFI & NBFI Insurance Companies Mutual Funds General Public (Local) General Public (Foreign) Others Joint Stock Companies Foreign Companies Charitable Trust Modarbas |
75.3279 6.6862 0.0045 7.8512 2.0296 4.0162 0.0626 2.3246 0.2140 1.4755 0.0002 0.0077 |
Associates
A. Subsidiary
None
B. Associated Companies
(1) Chloride Pakistan (Pvt) Limited, Pakistan.
Business
Activities
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The Company is engaged in the manufacturing and sale of batteries,
chemicals and acid |
Number
of Employees
442
Actual
Capacity & Production
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The capacity and production of the Company’s
plant is indeterminable as it is multi-product and involves various
processes of manufacturing |
Annual
Sales Volume
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Years |
In Pak Rupees |
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2016 2017 |
11,695,892,000/- 12,909,940,000/- |
Trade
Suppliers (Foreign)
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Subject import globally from Companies belongs to China, Korea,
Taiwan, Japan, Singapore & European Countries. Its global trade suppliers
are Companies related to Raw Materials |
Customers
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Major customers are Automobile Manufacturers, Industrial
Organizations, Distribution Companies deal with cash term basis |
Bankers
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(1) Allied Bank Ltd. (2) Bank Alfalah Limited (3) BankIslami Pakistan Ltd. (4) Bank of Tokyo Mitsubishi UFJ, Ltd. (5) Habib Bank Ltd. (6) Habib Metropolitan Bank Limited (7) JS Bank Ltd. (8) MCB Bank Ltd. (9) Meezan Bank Limited (10) NIB Bank Limited (11) Standard Chartered Bank (Pakistan) Ltd. (12) United Bank Ltd. (13) Dubai Islamic Bank Pakistan Limited |
Financial
Position
Very Sound
Production
Production activities were effectively planned and adjusted to cater to
the market demand both in terms of quantity and quality. Stress on quality
control at all stages of production processes was implemented with great vigor
for further strengthening quality standards of the products of your Company.
During the year your company acquired an adjacent plot measuring approximately
2 acres to consolidate and further improve efficiencies of our manufacturing
activities.
The
Industry
Growth of automotive sector in the preceding few years was instrumental
in better capacity utilization for the battery industry. Sales of locally
produced cars and LTV improved by 8.6 percent to 181,255 units in July-March
2017 as compared to 166,898 units sold during corresponding period of last
year. Trucks and Busses sales improved by 36 percent. Farm tractors sales
improved by 17.4 percent to 38,938 units sold in July-March 2017 as against
33,181 units sold in the same period a year ago. Sales of motorcycles and three
wheelers improved by 23.9 percent, from 977,720 units to 1,211,456 units. The
prices of refined and recycled lead increased during the year under review
Memberships
KCCI
PAMA
FPCCI
Comments
Subject Company was
established in 1953. The
Company is engaged in the manufacturing and sale of batteries, chemicals and
acid. Overall reputation is sound.
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 65.04 |
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1 |
INR 92.28 |
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Euro |
1 |
INR 80.62 |
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PKR |
1 |
INR 0.56 |
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 : |
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
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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
·
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.