MIRA INFORM REPORT

Report Date :

19.07.2007

IDENTIFICATION DETAILS

Name :	MSC TEXTILES (PRIVATE) LIMITED

Registered Office :	P-19, 1^st Floor, Montgomery Bazar, Faisalabad

Country :	Pakistan

Date of Incorporation :	1986

Com. Reg. No.:	L-179/19861003

Legal Form :	Private Limited Company

Line of Business :	Manufacture & Marketing of Textile & Home Textile Products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Business Name

MSC TEXTILES (PRIVATE) LIMITED

Full Address

Registered Address

P-19, 1^st Floor, Montgomery Bazar, Faisalabad, Pakistan

Tel	92 (41) 2644577, 2611653
Fax	92 (41) 2624849
Email	babar@msc-textiles.com

Short Description Of Business

Nature of Business	Manufacture & Marketing of Textile & Home Textile Products
Year Established	1986
Registration #	L-179/19861003

Factory Location

Address	5^th K.M., Khurrianwala, Jaranwala Road, Faisalabad, Pakistan
Tel #	92 (41) 4363811 - 20 (9 Lines)
Fax #	92 (41) 4360705

Auditors

Zahid Jamil & Co.

(Chartered Accountants)

356/A, 2^nd Floor, Al-Jamil Plaza, Small ‘D’ Ground, Peoples Colony, Faisalabad, Pakistan

Legal Status

Subject Company was established as a Private Limited Company in 1986

Authorised Capital	Rs. 200,000,000/- divided into 2,000,000 shares of Rs. 100/- each
Issued & Paid up Capital	Rs. 110,000,000/- divided into 1,100,000 shares of Rs. 100/- each

Details of Directors

Names

Address

Occupation

Designation

Mr. Mushtaq Ali Cheema

Mr. Shamshad Ali Cheema

Mr. Mumtaz Ali Cheema

Mr. Ali Raza Cheema

P 275, Sarfaraz Colony, Faisalabad

Business

Chief Executive

Director

Shareholders

Name

Mr. Mushtaq Ali Cheema

Mr. Shamshad Ali Cheema

Mr. Mumtaz Ali Cheema

Mr. Ali Raza Cheema

Associates

Subsidiary

None

Associated Companies

Shafi Textile Mills (Private) Limited, Pakistan.

Fantasy Fabrics (Private) Limited, Pakistan.

Business Activities

Subject Company is engaged in the business as manufacture & marketing of Textile & Home Textile Products.

It purchases raw material against L/C, D/A basis.

It sells against cash / credit basis. Whereas incase of exports, payment would be accepted through L/C basis.

It’s mainly export to U.S.A., Europe, Fareast and the South African region.

It’s mainly import from China, Taiwan & Germany.

Its’ major customers are Traders, Retailers, Buying Agencies etc.

Subject operates from caption leased office premises of area measuring 1,900 Sq ft. which is situated in commercial area.

Subject employs about 600 persons in its set up.

Annual Sales Volume

Year	In Pak Rupees
2006 - 2007	Between 1 & 2 Billion (Estimated)

Actual Production Volume

The Annual Production is indeterminable as it mainly depends on International Demand related to Home Textile Products and its demand varies from time to time.

Bankers

Askari Commercial Bank Limited, University Road, Faisalabad, Pakistan.

Habib Bank Limited, Commercial Centre, Circular Road, Faisalabad, Pakistan.

Bank Alfalah Limited, State Life Building, Liaquat Road, Faisalabad, Pakistan.

United Bank Limited, Bilal Road, Civil Lines, Faisalabad, Pakistan.

Dubai Islamic Bank Pakistan Limited, Kotwali Road, Faisalabad, Pakistan.

United Bank Limited, Bank Square, Circular Road, Faisalabad, Pakistan.

Union Bank Limited, Kotwali Road, Faisalabad, Pakistan.

Memberships

All Pakistan Textile Mills Association (APTMA)

Faisalabad Chamber of Commerce & Industry (FCCI)

All Pakistan Cloth Exporters Association (APCEA)

Chief Executive Biography &

Qualifications

Born on May 10, 1951 in Faisalabad, Mr. Mushtaq Ali Cheema - Masters in Commerce is the Chief Executive of MSC Textiles Pvt. Ltd. Faisalabad. He is the pioneer in establishing dry ports in private sector in Pakistan. He also remained the Chairman for All Pakistan Cloth Exporters Association (APCEA) from 1993 to 1997, which is the biggest export association of Pakistan. His professional profile also includes his able Chairmanship for Faisalabad Dry Port Authority trust from 1999 to 2002. He is the founder of Citizen Police Liaison Committee (CPLC) Faisalabad and remained its Chief from 2000 to 2002. He was elected MNA from NA-83, Faisalabad in the general elections held in 2002. Since then under his able leadership he leads the Ministry of Textile Industry, Pakistan as the honorable Federal Minister. He has traveled to the Far East, U.S.A, Saudi Arabia and several European countries. On personal front he is married and is the father of two sons and a daughter.

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 60.90
UK Pound	1	Rs. 124.50
Euro	1	Rs. 83.70

Comments

Subject Company enjoys good reputation in Pakistan business circle. Directors are reported as qualified, experienced & resourceful businessmen. Trade relations are reported as fair. Subject Company can be considered for normal business dealings at usual trade terms and conditions.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions