MIRA
INFORM REPORT
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Report Date : |
09.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
HUSSAIN MILLS
LIMITED |
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Registered Office : |
Room No. 808, Saima Trade Tower-B, I.I.
Chundrigar Road, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
1980 |
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Com. Reg. No.: |
0007615 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacture and Sale of Yarn and Fabric. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Business Name
HUSSAIN MILLS LIMITED
Full Address
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Registered
Address |
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Room No. 808, Saima Trade Tower-B, I.I.
Chundrigar Road, Karachi, Pakistan |
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Tel |
92 (21) 2217329, 2416098, 2415980 |
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Fax |
92 (21) 2210213, 2410924 |
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Email |
Short Description Of Business
|
Nature of Business |
Manufacture and
sale of Yarn & Fabric. |
|
Year Established |
1980 |
|
Registration # |
0007615 |
Mills Location
HML (Unit-1&3)
Fazalabad, Vehari Road, Opp. Timber Market, Multan.
Ph. No. 92-61-4527238, 4528241, 4529088
Fax No. 92-61-526487, 526572
HML (Unit-2) 3
5-KM Bahawalpur Road,
Near Adda Muhammad Pur, Multan.
HML (Unit-4) Qadir Pur Rawan Bypass,
Khanewal Road, Multan.
Ph. No. 92-61-4578866, 686979
HML (Unit 5)
8-Km, Khanewal By Pass Road,
Mauza Kohiwala, Kabirwala.
Ph. No. 92-65-2450621, 2450595
Auditors
Tariq Ayub Anwar & Co.
(Chartered
Accountants)
Nairobi Mansion, Napier Road, Lahore, Pakistan
Legal Status
Subject Company was incorporated as a Public Limited Company in 1980
|
Authorized Capital |
Rs. 200,000,000/- divided into 20,000,000
shares of Rs. 10/- each |
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Issued & Paid up Capital |
Rs. 187,997,420/- divided into 18,799,742
shares of Rs. 10/- each |
Details of Directors
|
Names |
Designation |
|
Mr. Mohammad Ismail Mr. Umar Farooq Sheikh Mr. Hussain Ahmad Fazal Mrs. Farhat Nishat Mrs. Ghazala Nasreen Mrs. Ateeqa Hussain Mr. Mian Imtiaz Fazal |
Chief Executive Director Director Director Director Director Director |
Shareholders
|
Names |
No. of Shares |
|
Mr. Nasir Ahmed Mr. Nishat Ahmed Mr. Nasim Ahmed Mrs. Farhat Nishat Mrs. Nighat Nasim Mrs. Farukh Jabeen Mrs. Ghazala Nasreen M/s Fatima Enterprises Limited Mr. Sheikh. Umar Farooq Mr. Hussain Ahmed Fazal Mr. Sheikh Zafar Iqbal Miss Erum Seher Miss Roomana Farooq Mr. Imtiaz Fazal Mr. Humayun Mubarak Mr. Salman Mubarak Mr. Rizwan Ahsan Mr. Hamid Nishat Mr. Nadim Nishat Miss Seher Nishat Mr. Rehman Nasim Mr. Amir Nasim Mr. Muhammad Ismail M/s Naseem Enterprises (Pvt) Limited Mr. Ashar Fazal Mrs. Tahira Imtiaz Mrs. Ateeqa Hussain Mr. Sohail Nasim M/s Amir fine Exports (Pvt) Limited M/s Fatima Enterprises Limited (Textile Unit) Mr. Rehan Ahmed Mr. Sheikh Rashid Ahmed |
30,442 309,504 5,280 168,960 50,160 5,280 2,200 3,611,520 52,560 9,766,560 115,480 7,920 7,920 203,920 42,240 42,240 29,568 63,360 21,120 152,960 26,400 42,240 35,200 14,840 201,504 92,696 2,000 8,000 868,560 2,808,960 5,074 5,074 |
Associates
A. Subsidiary
None
B. Associated Companies
(1) Zafar Nasir Oil
Extraction Limited, Pakistan.
(2) Ahmed Fine
Textile Mills Limited, Pakistan.
(3) Fawad Textile
Mills Limited, Pakistan.
(4) Hussain
Ginneries Limited, Pakistan.
(5) Fatima
Enterprises Limited, Pakistan.
Products
Manufacture and sale of Yarn & Fabric.
Number of Employees
3,625
Plant Capacity & Actual
Production
2007 2006
Spinning Section I, III & Open End
Number of Spindles Installed 35,096 32,936
Number of Rotors Installed 2,000 2,000
Number of Spindles Worked 31,176,391 30,605,513
Number of Rotors Worked 2,064,749 2,014,151
Number of Spindles Shifts Worked 36,140,832 31,842,240
Number of Rotors Shifts Worked 2,184,000 2,184,000
Actual Production Converted into 20/S Count (Kgs) 11,875,754 10,170,359
Actual Production of all Counts (Kgs.) 16,763,831 15,203,583
Number of Shifts Worked per day 3 3
Spindles 1,092 1,092
Rotors 1,092 1,092
Spinning Section II
Number of Spindles Installed 22,704 22,704
Number of Spindles Worked 24,450,645 24,351,015
Number of Spindles Shifts Worked 24,792,768 24,792,768
Actual Production Converted into 20/S Count (Kgs.) 8,400,223 8,205,083
Actual Production of all Counts (Kgs.) 8,416,004 8,169,722
Number of Shifts Worked per day 3 3
Total Number of Shifts Worked during the Year 1,092 1,092
Spinning Section V - Leased Capacity
Number of Spindles Installed 20,640 -
Number of Spindles Worked 12,623,937 -
Number of Spindles Shifts Worked 22,538,880 -
Actual Production Converted into 20/S Count (Kgs.) 3,733,634 -
Actual Production of all Count (Kgs.) 5,610,216 -
Number of Shifts Worked per day 3 -
Total Number of Shifts Worked during the Year 636 -
Annual Sales Volume
|
Years |
In Pak Rupees |
|
2006 2007 |
3,132,314,226/- 3,768,564,364/- |
Customers
Mainly Textile Companies, Trading Companies,
Retailers etc
Bankers
Askari Commercial
Bank Limited, Pakistan
Allied Bank Limited,
Pakistan.
National Bank of Pakistan.
Habib Bank Limited,
Pakistan.
Soneri Bank Limited,
Pakistan.
MCB Bank Limited,
Pakistan.
Bank Al-Habib
Limited, Pakistan.
Citi Bank N.A.,
Pakistan.
Faysal Bank Limited,
Pakistan.
Financial Overview
Hussain Mills
Limited (HML) is one of the largest textile composite unit of southern Punjab
primarily engaged in spinning and weaving. From the foregoing it can be seen
that it is a gigantic and wider diversified unit fully integrated by
comprehensive information systems for all the locations of the Company
providing relevant information timely and accurately in decision making and
managing Company's resources. The current financial year was an overall good
year in comparison with the last year in which its sales reached a new land
mark of Rs. 3.8 Billion and next year the management of Company is anticipating
touching land mark of Rs. 5.0 Billion approximately.
General Market Conditions And
Profitability
The year was quite
difficult for textile industry and particularly for spinning sector as compared
to last year. Deteriorating market conditions coupled with inflationary
pressures on the cost of doing business and higher borrowing costs have
adversely affected Company's performance. Consequent of billion of rupees
investment during past two years in spinning sector has resulted in increased
demand and consumption of cotton as compared to availability and supply which
has badly impacted cotton prices. Despite adverse market conditions, Company
was able to sustain its gross profit and net profit margin at 8.51% and 0.87%
respectively slightly above when compared with figures of corresponding year.
This is mainly attributed to the increased capacity and its utilization along
with controlled administrative expenses.
Future Outlook
The inexorable
rise of mark up rates, tariffs on domestic energy sources and further elevating
the cost of self generated electricity have impacted and will continue to
impact the profitability of the Company along with the prices of cotton which
are also witnessing a rising trend in the local and international commodity
markets. In addition to this yarn market is facing bearish sentiment because of
heavily subsidized overseas competitors. However, the management is optimistic
that the development of an improved product mix, delivery of the enhanced
production efficiencies, up-gradation of its facilities and systems,
diversifying product portfolio and lowering it operating costs will continue to
bring about increased profitability in the next financial year as well.
Memberships
All Pakistan Textile Mills Association.(APTMA)
Foreign Exchange Rates
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 62.85 |
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UK Pound |
1 |
Rs. 123.00 |
|
Euro |
1 |
Rs. 91.90 |
Comments
Subject Company was established in 1980 and
is engaged in manufacture and sale of Yarn & Fabric. Market reputation is
good. Trade relations are reported as fair. The Company can be considered for
normal business dealings at usual trade terms and conditions.
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HUSSAIN MILLS
LIMITED |
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BALANCE SHEET AS
AT JUNE 30, 2007 |
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Note |
2007 |
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2006 |
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EQUITY AND
LIABILITIES |
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Rupees |
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SHARE CAPITAL AND
RESERVES |
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Authorized capital |
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20,000,000 ordinary shares of Rs. 10 each |
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200,000,000 |
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200,000,000 |
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Issued, subscribed and paid-up capital |
3 |
187,997,420 |
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187,997,420 |
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Premium on issue of shares |
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2,400,000 |
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2,400,000 |
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Un-appropriated profit |
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386,936,573 |
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343,609,405 |
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577,333,993 |
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534,006,825 |
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Surplus on
revaluation of fixed assets |
4 |
1,712,951,413 |
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301,713,752 |
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NON CURRENT
LIABILITIES |
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Long term Finances |
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5 |
1,502,318,149 |
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603,749,009 |
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Deferred liabilities |
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6 |
219,276,692 |
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27,130,947 |
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CURRENT
LIABILITIES |
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Trade and other payables |
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7 |
116,296,329 |
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96,234,137 |
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Accrued interest and markup - Secured |
8 |
61,315,246 |
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54,885,259 |
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Short term finances - Secured |
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9 |
1,409,812,026 |
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1,305,847,463 |
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Current portion of long term liabilities |
10 |
244,337,538 |
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176,738,293 |
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Provision for taxation |
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11 |
34,662,277 |
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29,800,000 |
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Unclaimed dividend |
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98,844 |
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98,844 |
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1,866,522,260 |
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1,663,603,996 |
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CONTINGENCIES
AND COMMITMENTS |
12 |
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5,878,402,507 |
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3,130,204,529 |
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Note |
2007 |
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2006 |
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ASSETS |
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Rupees |
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NON CURRENT
ASSETS |
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Property, plant and equipment |
13 |
3,938,281,825 |
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1,494,719,323 |
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Intangible assets |
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14 |
680,000 |
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- |
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Long term investments - at cost |
15 |
107,678,635 |
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14,720,577 |
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Long term deposits and deferred cost |
16 |
72,292,788 |
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41,613,539 |
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4,118,933,248 |
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1,551,053,439 |
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CURRENT ASSETS |
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Stores, spares and loose tools |
17 |
93,966,032 |
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33,513,975 |
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Stock in trade |
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18 |
954,159,735 |
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784,728,261 |
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Trade debtors |
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19 |
390,869,778 |
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144,221,194 |
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Loans and advances |
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20 |
20,495,265 |
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190,747,516 |
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Trade deposits and short term prepayments |
21 |
36,778,897 |
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34,832,637 |
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Short term investments |
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22 |
362,897 |
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1,248,000 |
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Due from government departments |
23 |
21,912,360 |
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19,933,123 |
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Other receivables |
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24 |
53,823,775 |
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43,795,503 |
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Cash and bank balances |
25 |
187,100,520 |
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326,130,881 |
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1,759,469,259 |
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1,579,151,090 |
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5,878,402,507 |
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3,130,204,529 |
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HUSSAIN MILLS
LIMITED |
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PROFIT AND LOSS
ACCOUNT |
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FOR THE PERIOD
ENDED JUNE 30, 2007 |
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Note |
2007 |
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2006 |
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Rupees |
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Sales |
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26 |
3,768,564,364 |
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3,132,314,226 |
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Cost of sales |
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27 |
3,447,767,451 |
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2,903,049,442 |
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Gross profit |
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320,796,913 |
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229,264,784 |
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Distribution & marketing cost |
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28 |
62,693,272 |
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52,343,305 |
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Administrative expenses |
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29 |
71,752,351 |
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63,778,863 |
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134,445,623 |
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116,122,168 |
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Other operating income |
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30 |
39,335,123 |
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44,585,434 |
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Other operating charges |
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31 |
2,236,547 |
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1,204,049 |
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223,449,866 |
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156,524,001 |
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Finance cost |
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32 |
190,691,789 |
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147,421,624 |
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Net profit for
the year from operations |
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32,758,077 |
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9,102,377 |
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Gain on disposal of Un-operational segment |
33 |
- |
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6,173,520 |
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Net profit for
the year before taxation |
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32,758,077 |
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15,275,897 |
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Taxation |
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34 |
15,337,769 |
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11,534,694 |
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Net profit for the
year after taxation |
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17,420,308 |
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3,741,203 |
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Earnings per
share |
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35 |
0.93 |
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0.20 |
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FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.20 |
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UK Pound |
1 |
Rs.81.48 |
|
Euro |
1 |
Rs.64.27 |
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. |
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%)