MIRA
INFORM REPORT
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Report Date : |
30.10.2007 |
IDENTIFICATION
DETAILS
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Name : |
RUBY TEXTILE MILLS LIMITED |
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Registered Office : |
203, 2nd Floor, Faiyaz Centre, 3-A Sindhi
Muslim Co-operative Housing Society, Shahrah-e-Faisal, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
2000 |
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Com. Reg. No.: |
0041215 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacture & Sale of Yarn |
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. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
Business Name
RUBY TEXTILE MILLS LIMITED
Full Address
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Registered Address |
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203, 2nd Floor, Faiyaz Centre, 3-A Sindhi Muslim Co-operative Housing Society, Shahrah-e-Faisal, Karachi, Pakistan |
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Tel |
92 (21) 4535448, 4535449 |
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Fax |
92 (21) 4559081 |
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Short Description Of Business
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Nature of Business |
Manufacture & Sale of Yarn |
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Year Established |
0041215 |
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Registration # |
2000 |
Branches
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Address |
35-Industrial Area, Gulberg-III, Lahore, Pakistan |
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Tel # |
92 (42) 5761244, 5761243 |
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Fax # |
92 (42) 5711400 5761222 |
Factory Location
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Address |
Raiwind Manga Road, Raiwind, Distt Kasur, Punjab, Pakistan |
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Tel # |
92 (42) 5391031, 5392651, 5392652 |
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Fax # |
92 (42) 5391032 |
Auditors
M/s Mushtaq & Co.
(Chartered Accountants)
Room # 407, 4th Floor, Commerce Centre, Hasrat mohani Road, Karachi, Pakistan
Legal Status
Ruby Textile Mills Limited is a public limited company incorporated in Pakistan and is quoted on Lahore and Karachi Stock Exchanges of Pakistan.
Details of Directors
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Names |
Designation |
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Mr. Noor Elahi Mrs. Parveen Elahi Mrs. Naheed Javed Mr. Javed Usman Mr. Nabeel Javed Mr. Ikram Illahi Mr. Mansoob A. Akhtar |
Chairman Managing Director Director Director Director Director Director |
Shareholders
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Categories of
Shareholders |
Percentage (%) |
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Directors, Chief Executive Officers, and their spouse and minor children Associated Companies, undertakings and related parties NIT & ICP Banks Development Financial Institutions, Non Banking Financial Institutions Insurance Companies Modarabas and Mutual Funds General Public a. Local Joint Stock Companies |
87.3383 2.0434 6.3480 0.0000 0.0000 0.0000 4.2235 0.0469 |
Associated Companies
Naheed Noor Enterprises Limited, Pakistan.
Naheed Noor (Private) Limited, Pakistan.
Products
Manufacturing & sale of yarn by their brand name of “LAMP”, “RUBY”
Number of Employees
655
Plant Capacity
June 30, 2006 June 30, 2005
Spindles
installed (numbers) 17,856
17,664
Spindles
worked (numbers) 17,856 17,664
Capacity converted into 20/s (Kgs) 7,368,637 7,893,343
Actual production of yarn converted
into 20/s (Kgs) 8,015,924 7,893,343
Number of shifts worked per day 3 3
Annual Sales Volume (Last 2
Years)
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Years |
Rupees in ‘000’ |
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2005 2006 |
468,627,372/- 643,108,879/- |
Customers
Mainly in all important cities of Pakistan
Bankers
(1) Habib Bank Limited, Pakistan.
(2) Habib Metropolitan Bank Limited, Pakistan.
(3) Muslim Commercial Bank Limited, Pakistan.
(4) Bank Alhabib Limited, Pakistan.
(5) National Bank of Pakistan
(6) Citibank N.A., Pakistan.
Financial Results
During this year, Company have earned the gross profit of Rs. 30.030 million as compared to last period gross profit of 29,831 million. The Company incurred a loss of before tax of Rs. 16,158 million compared to last period profit of Rs. 6.245 million. This year the net sales of the Company have been Rs. 643.108 million as against last period sales of Rs. 468,627 million. The loss for the year was due to higher financial cost, Incremental Depreciation charged on surplus on revaluation of fixed assets and loss on sale of revalued plant and machinery. The Company is successfully implementing its expansion plan and errection process of machinery is under way and it hope that it commence production by mid of November this year. It would be able to effectively absorb its fixed assets and it will be in better position to compete with the market and hopefully profit would be earned in coming future.
Future Outlook
The upward momentum in the economic growth reflects the stability and growth in all sectors of the economy. The reduction in tariff rates, liberalization and the global image of Pakistan has resulted in substantial growth in foreign investment and exports. At the same time, there are significant challenges that can be a threat if not addressed timely.
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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UK Pound |
1 |
Rs. 124.65 |
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Euro |
1 |
Rs. 87.10 |
Comments
Subject is a well-established company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Trade relations are reported as fair. Payments are usually correct and as per commitments. The Company can be considered for normal business dealings at usual trade terms and conditions.
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RUBY
TEXTILE MILLS LIMITED |
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BALANCE
SHEET AS AT JUNE 30, 2006 |
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June 30, 2006 |
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June 30, 2005 |
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June 30, 2006 |
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June 30, 2005 |
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EQUITY
AND LIABILITIES |
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In Pak Rupees |
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NON
CURRENT ASSETS |
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In Pak Rupees |
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SHARE
CAPITAL AND RESERVES |
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Fixed
assets - tangible |
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Authorized
capital |
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20,000,000
(2005: 10,000,000) ordinary shares |
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Property,
plant and equipment |
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628,999,145 |
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574,638,880 |
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of
Rs. 10/- each |
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200,000,000 |
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100,000,000 |
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Long
term deposits |
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- |
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103,800 |
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Issued,
subscribed and paid-up capital |
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Issued,
subscribed and paid-up capital |
196,000,000 |
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98,000,000 |
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Capital
reserves |
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3,240,000 |
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3,240,000 |
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Accumulated
loss |
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(104,065,458) |
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(92,901,988) |
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95,174,542 |
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8,338,012 |
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Surplus
on revaluation of fixed assets |
327,397,476 |
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347,645,300 |
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NON
CURRENT LIABILITIES |
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Long
term financing |
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158,517,671 |
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198,241,667 |
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Liabilities
against assets subject to finance lease |
- |
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243,285 |
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CURRENT
ASSETS |
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Deferred
liabilities |
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22,820,075 |
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18,455,777 |
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Stores,
spare part and loose tools |
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18,116,550 |
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14,828,090 |
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Stock-in-trade |
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128,238,505 |
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87,456,292 |
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CURRENT
LIABILITIES |
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Trade
debts |
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17,718,644 |
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17,046,171 |
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Trade
and other payables |
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44,133,474 |
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34,241,965 |
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Loans
and advances |
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67,906,961 |
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5,475,108 |
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Interest
/ mark up on loans |
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6,232,237 |
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3,138,300 |
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Trade
deposits and short term prepayments |
7,240,782 |
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10,850,465 |
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Short
term borrowings |
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185,681,082 |
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107,402,468 |
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Other
receivables |
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11,233,766 |
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13,924,782 |
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Current
portion of: |
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Cash
and bank balances |
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3,017,980 |
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16,727,840 |
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Long
term borrowings |
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39,160,267 |
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20,365,333 |
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253,473,188 |
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166,308,748 |
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Liabilities
against assets subject to finance lease |
139,965 |
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627,623 |
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Provision
for taxation |
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3,215,544 |
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2,351,699 |
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278,562,569 |
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168,127,388 |
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CONTINGENCIES
AND COMMITMENTS |
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882,472,333 |
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741,051,429 |
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882,472,333 |
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741,051,429 |
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RUBY TEXTILE MILLS
LIMITED |
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PROFIT AND LOSS ACCOUNT |
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FOR THE YEAR ENDED JUNE
30, 2006 |
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June 30, 2006 |
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June 30, 2005 |
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In Pak Rupees |
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Sales |
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643,108,879 |
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468,627,372 |
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Cost of sales |
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(613,078,747) |
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(438,796,180) |
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30,030,132 |
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29,831,192 |
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Other operating
income |
1,172,845 |
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3,915,981 |
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Distribution cost |
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(9,238,771) |
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(8,176,982) |
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Administrative
expenses |
(11,064,939) |
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(6,851,827) |
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Other operating
expenses |
(1,894,781) |
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Finance cost |
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(25,162,645) |
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(12,142,868) |
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Workers' profit
participation fund |
- |
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(329,893) |
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Profit before
taxation |
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(16,158,159) |
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6,245,603 |
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Taxation |
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7,087,827 |
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9,272,202 |
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Net loss for
the year / period |
(23,245,986) |
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(3,026,599) |
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Earning per
share - basic and diluted |
(0.22) |
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(0.03) |
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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. |
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%)