MIRA
INFORM REPORT
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Report Date : |
23.05.2007 |
IDENTIFICATION DETAILS
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Name : |
SAPPHIRE FINISHING MILLS LIMITED |
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Registered Office : |
212, |
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Country : |
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Date of Incorporation : |
2000 |
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Com. Reg. No.: |
K-08026 |
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Legal Form : |
Unlisted Public Limited Company |
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Line of Business : |
Engaged in Process, Dye, Bleach and Finish Textile
Products |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Business Name
SAPPHIRE FINISHING MILLS LIMITED
Full Address
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Registered Address |
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212, |
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Tel |
92 (21) 2410930, 2410961 |
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Fax |
92 (21) 2416705 |
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Website |
Short Description Of
Business
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Nature of Business |
Engaged in Process, Dye,
Bleach and Finish Textile Products |
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Year Established |
2000 |
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Registration # |
K-08026 |
Branches
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Address |
7 A-K, |
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Tel # |
92 (42) 5750410 |
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Fax # |
92 (42) 5758783 |
Mills Location
Near Kasur, Raiwind,
Legal Status
The Company was incorporated in
Auditors
Hameed Chaudri & Co.
(Chartered Accountants)
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Authorised Capital |
Rs. 1,000,000,000/-
divided into 100,000,000 shares of Rs. 10/- each |
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Issued & Paid up Capital |
Rs. 674,760,000/-
divided into 67,476,000 shares of Rs. 10/- each |
Details of Chief
Executive / Directors
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Names |
Nationality |
Designation |
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Mr. Shahid Abdullah Mr. Mohammad Abdullah Mr. Nadeem Abdullah Mr. Amer Abdullah Mr. Yousuf Abdullah Mr. Mohammad Younus Mr. Mohammad Yamin |
Pakistani Pakistani Pakistani Pakistani Pakistani Pakistani Pakistani |
Chief Executive Director Director Director Director Director Director |
Shareholders
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Name of
Shareholders |
Number of Shares |
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Mr. Shahid Abdullah Mr. Mohammad Abdullah Mr. Nadeem Abdullah Mr. Amer Abdullah Mr. Yousuf Abdullah Mr. Mohammad Yamin Mr. Mohammad Younus Sapphire Textile Mills Limited Sapphire Fibres Limited Amer Cotton Mills (Pvt) Limited Sapphire Agencies (Pvt) Limited |
9,500 10,500 10,500 10,500 10,500 500 500 29,468,500 27,365,000 3,000,000 7,590,000 |
Associates
Subsidiary
None
Associated Companies
Sapphire Textile Mills Limited,
Sapphire Fibres Limited,
Amer Cotton Mills (Pvt) Limited,
Sapphire Agencies (Pvt) Limited,
Sapphire Power Generation Ltd,
Amer Fabrics Ltd,
Reliance Cotton Spinning Mills Limited,
Products
Principally engaged in Process, Dye, Bleach and Finish Textile
Products.
Number of Employees
300
Actual Plant Capacity
Processing capacity of 108,000
meters of fabric per day
Bankers
Askari Commercial Bank Limited,
Faysal Bank Limited,
Habib Bank Limited,
PICIC Commercial Bank Limited,
Prime Commercial Bank Limited,
Habib Metropolitan Bank Limited,
United Bank Limited,
Saudi Pak Commercial Bank Limited,
ABN AMRO Bank,
Customers
Various Local & International
Exports
Mainly to Europe and
Financial Position
Sound
Operational Review
Sales during the year was increased by about 54% as compared to the preceding nine months. The Company has earned Gross Profit of Rs. 81.463 million as compared to gross loss of Rs. 44.035 million in the preceding nine months. However, increase in interest rates has eliminated the profits and resulted in net loss of Rs. 8,794627/-. Whereas, exports during the year ended June 30, 2006 were Rs. 1,419,808,435/- as compared to Rs. 842,941,542/- in the preceding nine months
Future Outlook
The management has achieved better results during the year as compared to last nine months and is making all efforts for better marketing and sales to renowned brand names for better prices. During the year under progress better results are expected than last year. However, the increase in financial cost may adversely affect the management’s efforts.
Memberships
All
Foreign Exchange
Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 60.70 |
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1 |
Rs. 119.90 |
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Euro |
1 |
Rs. 81.70 |
Credit Profile
Sapphire Group is engaged in diversified activities which include Textiles, Hosiery, Power Generation, Trading etc. Group is well known and all the directors are resourceful and experienced businessmen. Trade relations are reported as fair. Payments to creditors etc are reported as normal. The Company can be considered for normal business dealings at usual trade terms and conditions.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)