|
|
|
MIRA INFORM REPORT
|
Report No. : |
499518 |
|
Report Date : |
29.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
SERVICE INDUSTRIES LIMITED |
|
|
|
|
Registered Office : |
Servis House, 2-Main Gulberg, Lahore |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
1957 |
|
|
|
|
Com. Reg. No.: |
0000864 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Principal activities of the company are purchase,
manufacture & sale of Footwear, Tyres and Tubes and technical rubber
products |
|
|
|
|
No. of Employees : |
9,733 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Maximum Credit Limit : |
USD 5,695,893.70 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Slow & Delayed |
|
|
|
|
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.
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.
|
Source
: CIA |
Business
Name
SERVICE INDUSTRIES LIMITED
Full
Address
|
Registered
Address |
|
Servis House, 2-Main Gulberg, Lahore,
Pakistan |
|
Tel # |
92 (42) 35751990 - 96 (6 Lines) |
|
Fax # |
92 (42) 35710593, 35712109 |
|
Email |
Short
Description Of Business
|
a. |
Nature of Business |
Principal activities of the Company are
purchase, manufacture & sale of Footwear, Tyres and Tubes and technical
rubber products |
|
b. |
Year Established |
1957 |
|
c. |
Registration # |
0000864 |
Factories
Location
(1) G.T.
(2) Muridke-Sheikhupura
Auditors
|
S.M. Masood & Co. (Chartered Accountants) |
Legal
Status
|
Service Industries Limited was incorporated
as a Private Limited Company on March 20, 1957 and was converted to into a
Public Limited Company on September 23, 1959. The shares of the Company are
quoted at Pakistan Stock Exchange |
Details
of Directors
|
Names |
Designation |
|
Mr. Chaudhry Ahmed Javed Mr. Omar Saeed Mr. M Ijaz Butt Mr. Arif Saeed Mr. Hassan Javed Mr. Riaz Ahmed Mr. Shaukat Ellahi Shaikh Mr. Muhammad Amin Mr. Qaiser Mufti |
Chairman Chief Executive Officer Director Director Director Director Director Director Director |
Shareholders
|
Categories |
Percentage (%) |
|
Directors, Chief Executive Officer and
their spouse & minor children Associated Companies, Undertakings and
related parties NIT & ICP Banks, Development Financial Institutions,
Non-Banking Financial Institutions Insurance Companies Modarabas & Mutual Funds General Public (Local) Others |
44.7228 4.8229 0.0075 7.4432 0.0711 18.4338 22.8070 1.6916 |
Associated
Companies
Service Sales Corporation (Pvt) Limited, Pakistan.
Shahid Arif Investment (Pvt) Limited, Pakistan.
Business
Activities
Principal activities of the Company are purchase,
manufacture & sale of Footwear, Tyres and Tubes and technical rubber
products
Number
of Employees
9,733
Production
Capacity
Footwear and others
Due to the nature of the Company’s business
production capacity is not determinable.
Installed Capacity
Actual Production
2016 2015 2016 2015
Tyres (Nos) 14,085,900 12,906,400 10,618,111 9,125,152
Tubes (Nos)
36,302,000 30,248,400 34,439,191 27,020,832
Trade
Suppliers (Foreign)
|
Subject import globally from Companies belongs
to Japan, China,
Taiwan, Korea, African
Countries & European Countries. It’s Global Trade
Suppliers are Companies related to Machineries, Footwear Raw Materials, Rubber
Raw Materials,
Leather Raw Materials |
Distribution
Network
|
Mainly exist at major cities of Pakistan |
Bankers
|
(1) Habib Bank Limited, Pakistan. (2) United Bank Limited, Pakistan. (3) MCB Bank Limited, Pakistan. (4) Faysal Bank Limited, Pakistan. (5) Barclays Bank PLC, Pakistan. (6) Allied Bank Limited, Pakistan. (7) HSBC Bank Middle East Limited,
Pakistan. (8) SAMBA Bank Limited, Pakistan. (9) Standard Chartered Bank, Pakistan. (10) Bank Alfalah Limited, Pakistan. (11) Meezan Bank Limited, Pakistan. |
Future
Outlook
Company is fully committed to create value for stakeholders. Company has
adopted a consistent strategy to position itself in both the business that we
operate. Further, to ensure sustainable growth and value for stakeholders and
to keep pace with the changing environment, the company will continue to
closely monitor and review its business segments. As part of its
diversification strategy, your Company will continue to explore investment
opportunities. Despite rising competition in footwear and tyre business in
Pakistan, your Company will continue to focus on improving shareholders’ wealth
through cost optimization, investment in new technology to achieve production efficiencies.
Pakistan GDP increased to 4.7% in 2016 compared to 4.0% in 2015, which is also
a healthy indicator regarding outlook of Pakistan. The economic growth trend is
expected to sustain subject to continuity in government’s policies and
favorable security paradigm in the country.
Memberships
LCCI
FPCCI
Comments
Subject is a well-established company having fine track records.
Directors are reported as experienced, respectable and having satisfactory
means of their own. Trade relations are reported as fair. Payments are slow and
delayed. 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.04 |
|
|
1 |
INR 92.28 |
|
Euro |
1 |
INR 80.62 |
|
PKR |
1 |
INR 0.56 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low risk
of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably on
secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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
·
Promoters
/ Management background
·
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.