Summary - Pakistan Poultry Farms
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Summary - M/s Pakistan Poultry Farms Requirement: NIACF - Rs. 50.0M (Working Capital Requirements for Poultry Business) LC (DA) - Rs. 10.0M Total: Rs. 60.0M Mark-up Rate: NIACF: 3 Months KIBOR + 3.0% LC (DA): APSC Legal Status: Partnership Concern Originating Branch: Jinnah Avenue, Islamabad. Collateral / Security: Prime: Hypothecation of stock Rs. 48.0M of chicks, feed, eggs, machinery & poultry utensils of the firm with 20% Margin duly insured by Bank’s approved Insurance Company covering the risks of fire, burglary & earthquake. DP to be calculated on hypothecated stocks & stock report to be obtained on monthly basis. Secondary: Charge on Agri. Land / Full Registered Mortgage will be created on property measuring 32 Kanals – 01 Marla (Poultry Farms: Land, Building & Machinery) bearing Khasra #s 787/559 & 789/560; situated at Karmang Bala, Tehsil & Distt. Mansehra having MV Rs. 100.697M with FSV Rs. 85.170M owned by Ch. Muhammad Akram & Ch. Abdul Majeed as Sale Deeds are not available rather Register Haqdaran Zameen is held as Collateral. The above mentioned property will be insured covering the risks of Fire, Burglary & earthquake. Personal Guarantee of Partners / Mortgagers of the property. DETAILS OF EXISTING LOANS: Bank Purpose of Loan Loan Amount (Fund Based) Date of Disbursemen t O/S Loan Maturity Date Security MCB Poultry 20.0M 9.0M (Non-Fund Based) 1-10-08 29.0M 30-09-09 Properties & Hypo. of Stock ABL Poultry 75.0M 08-06-09 75.0M 31-03-2010 Properties &
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Pakistan Poultry
Transcript of Summary - Pakistan Poultry Farms
Summary - M/s Pakistan Poultry Farms
Requirement: NIACF - Rs. 50.0M (Working Capital Requirements for Poultry Business)LC (DA) - Rs. 10.0MTotal: Rs. 60.0M
Mark-up Rate: NIACF: 3 Months KIBOR + 3.0%LC (DA): APSC
Legal Status: Partnership Concern
Originating Branch: Jinnah Avenue, Islamabad.
Collateral / Security:Prime:
Hypothecation of stock Rs. 48.0M of chicks, feed, eggs, machinery & poultry utensils of the firm with 20% Margin duly insured by Bank’s approved Insurance Company covering the risks of fire, burglary & earthquake.
DP to be calculated on hypothecated stocks & stock report to be obtained on monthly basis.
Secondary: Charge on Agri. Land / Full Registered Mortgage will be created on property
measuring 32 Kanals – 01 Marla (Poultry Farms: Land, Building & Machinery) bearing Khasra #s 787/559 & 789/560; situated at Karmang Bala, Tehsil & Distt. Mansehra having MV Rs. 100.697M with FSV Rs. 85.170M owned by Ch. Muhammad Akram & Ch. Abdul Majeed as Sale Deeds are not available rather Register Haqdaran Zameen is held as Collateral.
The above mentioned property will be insured covering the risks of Fire, Burglary & earthquake.
Personal Guarantee of Partners / Mortgagers of the property.
DETAILS OF EXISTING LOANS:
Bank Purpose of Loan
Loan Amount(Fund Based)
Date of Disburseme
nt
O/S Loan Maturity
Date
Security
MCB Poultry 20.0M 9.0M (Non-Fund Based)
1-10-08 29.0M 30-09-09 Properties & Hypo. of Stock
ABL Poultry 75.0M 08-06-09 75.0M 31-03-2010 Properties & Hypo. of Stock
Grays Leasing
Poultry 5.536M 01-03-07 1.850M 28-02-2010 Machinery & Equipments
Askari Leasing
Poultry 10.30M 01-09-2005 1.425M 31-10-2009 Machinery & Equipments
Al-Zamin Leasing
Poultry 11.275M 01-02-2006 1.850M 31-01-2010 Machinery & Equipments
Total Lines
131.111M 109.125M
Financial projections:
Comments & Justification:
Basis of Recommendation Strong Business Financial worth with positive future outlook for PPF as well overall
Poultry Business. Clean financial record with other Financial Institutions. Business experience over 25 years backed with poultry industry professionals. Readily available Domestic market coupled with sufficient international market
presence. Poultry industry after recessions has come out with only serious poultry players & PPF
is one of those entities. Adequate Collateral Cover to safeguard Banks interest.
Assessment of Probability of Default Probability of Default is minimal as evident from clean e-CIB plus diversified poultry
business enables them to generate appropriate funds to repay their loans & other liabilities.
Particulars 2006 (Audited)
2007 (Audited)
2008 (Audited)
Sales 162,486,809 188,313,537 206,656,863
Profitability Ratios
Net Income/Sales 2.5 2.4 3.3
Net Income/Net Worth12 9.4 10.1
Operating Profit/Sales6.9 6.8 6.5
liquidity Ratios
Current Ratio1.3 1.2 1.4
Quick Ratio0.1 0.1 0.1
Leverage Ratios
Total Liabilities/Net Worth4.5 3.0 1.9
Long Term Liab./Net Worth2.5 1.0 0.5
Debt Service Coverage Ratio0.7 0.6
Total Liabilities/Total Assets82% 75.1% 65.2%
Total LT Liabilities/Total Assets38% 25.2% 15.7%
Business growth outlook is positive with increase sale margins getting apt returns on Investment.
Assessment of sources of repayment Hefty Sales returns with increasing profit margins enables PPF to repay outstanding
Liabilities as they have successfully repaid ZTBL liability on the same farms comprehensively on time.
In Worst case scenario, we have requisite collateral cover with hypo charge on machinery and stock additionally.
Overall Justification- Pakistan Poultry Farms leading business player of poultry industry of
Pakistan has immaculate track record with financial institutions. They have succeed locally & have venture internationally in UAE now also in Saudi
Arabia due to lifting of Ban by Saudi Authorities for poultry products from Pakistan. They want to avail Funded & Non funded financial services from UBL to meet the
working capital requirements together with Export LC. Taking in consideration the financial strength, pristine relationship with Banks, viable
plans of expansion backed with security cover & sturdy outlook of poultry industry in Pakistan, we strongly recommend approving above mentioned limits for Pakistan Poultry Farms.
