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MIRA
INFORM REPORT
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Report No. : |
508722 |
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Report Date : |
15.05.2018 |
IDENTIFICATION DETAILS
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Name : |
PACKAGES LIMITED |
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Registered Office : |
4th Floor, The Forum, Suite No. 416-422, G-20,
Block 9, Khayaban-e-Jami, Clifton, Karachi, Pakistan |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
1956 |
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Com. Reg. No.: |
0000792 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject Engaged in the manufacture & sale of paper,
paperboard, packaging materials and tissue products |
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No. of Employees : |
1,510 |
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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Maximum Credit Limit : |
USD 5,737,871 |
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Status : |
Satisfactory |
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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
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Business
Name |
PACKAGES LIMITED |
Full Address
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Registered
Address |
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4th Floor, The Forum, Suite No. 416-422, G-20, Block
9, Khayaban-e-Jami, Clifton, Karachi, Pakistan |
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Tel # |
92 (21) 35874047,
35874048, 35874049 |
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Fax # |
92 (21) 35860251 |
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Website |
Head Office
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Address |
Shahrah-e-Roomi, P.O. Amer Sidhu, Lahore, Pakistan |
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Tel # |
92 (42) 35811541, 46, 35811191, 94 |
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Fax # |
92 (42) 35811195, 35820147 |
Factory Location
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Address |
Plot No. 6 & 6/1, Sector 28, Korangi Industrial Area,
Karachi, Pakistan |
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Tel # |
92 (21) 35045320, 35045310 |
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Fax # |
92 (21) 35045330 |
Short Description Of Business
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a. |
Nature
of Business |
Engaged in the manufacture & sale of paper, paperboard,
packaging materials and tissue products |
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b. |
Year
Established |
1956 |
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c. |
Registration
# |
0000792 |
Auditors
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A.F. Ferguson & Co. (Chartered
Accountants) |
Legal Status
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The Company is a limited liability company incorporated in
Pakistan and is listed at Pakistan Stock Exchange |
Details of Management
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Names |
Designation |
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Mr. Towfiq Habib Chinoy Mr. Syed Hyder Ali Mr. Rizwan Ghani Mr. Jari Latvanen Mr. Josef Meinrad Mueller Mr. Muhammad Aurangzeb Mr. Shamim Ahmad Khan Mr. Syed Aslam Mehdi Mr. Syed Shahid Ali Mr. Tariq Iqbal Khan |
Chairman Chief Executive & Managing Director Executive Director Director Director Director Director Director Director Director |
Categories of Share Holders
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Categories
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Percentage (%) |
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Directors, Chief Executive Officer, and their spouse & minor
children Associated Companies, undertakings and related parties Banks, Development Financial Institutions, Non Banking Financial
Institutions Insurance Companies Modarabas and Mutual Funds General Public Local Foreign Other |
2.6 32.42 3.08 6.72 16.39 22.05 7.93 8.75 |
Associates
Subsidiary
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(1) DIC Pakistan Limited. (2) Bulleh Shah Packaging (Pvt) Limited. (3) Packages Lanka (Pvt) Limited. (4) Linnaea Holding Inc. (5) Chantier Packages Inc. (6) Packages Construction (Pvt) Limited. (7) Packages Power (Pvt) Limited. (8) Anemone Holdings Limited. (9) Flexible Packages Convertors. |
B. Associated
Companies
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(1) International General Insurance
Co. of Pakistan Limited, Pakistan. (2) Treet Corporation Limited,
Pakistan. (3) Loads limited, Pakistan. (4) Treet Packages Limited, Pakistan. (5) Orient Match Company Limited, Pakistan. |
Business Activities
Principally engaged in the manufacture and sale of paper,
paperboard, packaging materials and tissue products
Number of Employees
1,510
Capacity & Production - Tons
Capacity Actual
Production
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2017 2016
2017 2016
Paper
and paperboard produced - tons 41,400 41,400 13,861 14,353
Paper
and paperboard converted – tons 52,855 50,800 41,851 36,890
Plastics
all sorts converted - tons
24,500 24,500 20,143 20,995
Note:
The variance
of actual production from capacity is primarily on account of the product mix.
Annual Sales Volume
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Years |
In Pak
Rupees |
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2016 2017 |
19,793,529,000/- 21,388,949,000/- |
Trade Suppliers (Foreign)
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Subject
import globally from Companies belongs to China,
Korea, Taiwan, European Countries, Japan & Singapore. Its global trade
suppliers are Companies related to Raw Materials, Machineries |
Customers
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Major
customers are Distribution Companies, Private Companies, Retail &
Wholesale Markets in all over Pakistan |
Bankers
(1) Allied Bank Limited, Pakistan.
(2) Askari Bank Limited, Pakistan.
(3) Bank Al-Habib Limited, Pakistan.
(4) Bank Alfalah Limited, Pakistan.
(5) Bank Islami Pakistan Limited, Pakistan.
(6) Faysal Bank Limited, Pakistan.
(7) Habib Bank Limited, Pakistan.
(8) Habib Metropolitan Bank Limited, Pakistan.
(9) MCB Bank Limited, Pakistan.
(10) NIB Bank Limited, Pakistan.
(11) Standard Chartered Bank, Pakistan.
(12) United Bank Limited, Pakistan.
(13) JS Bank Limited, Pakistan.
(14) Samba Bank Limited, Pakistan.
(15) Silk Bank Limited, Pakistan.
(16) HSBC Bank Middle East Limited, Pakistan.
(17) National Bank of Pakistan.
(18) Citibank N.A., Pakistan.
Operational Review
Commensurately to the last year,
our production did not collapse, it remained a smidgen high but fear of scarcity of cotton in the
market induced the company procure it even at high rates and resort to import
to replenish
the gap. Such uncertainty resulted the company incur loss at the end; albeit
the company produced
more goods and earned more consideration. Despite loss, we maintained the chain
of our loyal customers
that would bode well for the company in future.
Future Outlook
The financial year 2018 would be
a challenging one for the company to recuperate its financial sturdiness.
Though the task seems difficult, yet the company is resolute to make good out
of the worst. Besides, the government of Pakistan would have to introduce far-reaching
policies to alleviate the concerns the textile sector had been
highlighting over the years. Pakistan is the only country where the impact of
duties, taxes and
surcharges on export are exorbitantly high as compare to its competitors in the
region. Government will have to launch beneficial policies to rejuvenate textile
sector all over the world like, availability of quality cotton at mild
pricing, slashing taxes, financing at concessional rates, prompt release of
sales tax refund,
relief in energy tariff, etc. Such measures would allow the textile sector make
best use of its resources
converting into healthy output.
Financial Position
Sound
Memberships
KCCI
FPCCI
LCCI
Comments
Subject Company is well known and the directors are reported as resourceful and experienced businessmen. Trade relations are reported as fair. Payments to creditors are reported 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 67.32 |
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1 |
INR 91.25 |
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Euro |
1 |
INR 80.51 |
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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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VIV |
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Report Prepared
by : |
KET |
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
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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.