MIRA INFORM REPORT

 

 

Report Date :

22.12.2008

 

IDENTIFICATION DETAILS

 

Name :

M.N. CHEMICAL INDUSTRIES (PRIVATE) LIMITED

 

 

Registered Office :

Atta Building, Gurdawara, Street #2, Kutchery Bazar, Faisalabad

 

 

Country :

Pakistan

 

 

Year of Establishment :

1989

 

 

Com. Reg. No.:

0020027

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture of Textile Chemicals, Textile Auxiliaries. Also engaged in Import and Trading of Dyes & Pigments, Chemical Additives used for Textile processing & manufacturing

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

                                               

Business Name

 

M.N. CHEMICAL INDUSTRIES (PRIVATE) LIMITED

 

 

Registered Office         

Registered Address

Atta Building, Gurdawara, Street #2, Kutchery Bazar, Faisalabad, Pakistan

 

 

 

                       

Tel

92 (41) 2616260, 2624802

Fax

92 (41) 2627228

Email

sahipk@yahoo.com,

asad@fsd.comsats.net.pk

 

 

Short Description Of Business

 

Nature of Business           

Manufacture of Textile Chemicals, Textile Auxiliaries. Also engaged in import & trading of Dyes & Pigments, Chemical Additives used for Textile processing & manufacturing

Year Established

1989

Registration #

0020027   

 

 

Factory Location

                       

20 K.M. Jaranwala Road,

Faisalabad, Pakistan

 

 

Auditors

           

M/s Yaqub & Co.

(Chartered Accountants)

2nd Floor, Asad Arcade, Circular Road No. 2, Faisalabad, Pakistan

 

 

Legal Status

 

Subject Company was established as a Private Limited Company in 1989

 

 

Authorized Capital 

Rs. 40,000,000/-  divided into 400,000 shares of Rs. 100/- each

Issued & Paid up Capital

Rs. 40,000,000/- divided into 400,000 shares of Rs. 100/- each

Details of Management

 

Names

Designation

Mr. Shahzad Muazzam

 

Mr. Muhammad Muazzam

 

Mrs. Naseem Muazzam

 

Mr. Asad Muazzam

 

Mr. Javed Rafique

 

Mr. Imran Saeed

 

Mrs. Zubaida Begum

 

Mr. Muhammad Shahid Nawaz

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Names

Mr. Shahzad Muazzam

 

Mr. Muhammad Muazzam

 

Mrs. Naseem Muazzam

 

Mr. Asad Muazzam

 

Mr. Javed Rafique

 

Mrs. Aneela Javaid

 

Mr. Muhammad Ali

 

Mr. Imran Saeed

 

Mr. Muhammad Nawaz

 

Mr. Sheikh Hameed Ahmad

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

            None                                                                   

           


 

B.         Associated Companies

 

(1) M.N. Protein Farms (Private) Limited, Pakistan.

(2) Shalimar Dyes & Chemicals (Private) Limited, Pakistan.

 

 

Business Activities

 

Manufacture of Textile Chemicals, Textile Auxiliaries. Also engaged in import & trading of Dyes & Pigments, Chemical Additives used for textile processing & manufacturing

 

 

No. of Employees

 

230

 

 

Annual Production Volume

     

The capacity and production of the company’s plant is indeterminable as it involves varying processes of manufacture

                       

 

Annual Sales Turnover

Year

In Pak Rupees

2007

250,000,000/- (Estimated)

 

 

 

 

 

Customers (Pakistan Based)

 

(1) GUL AHMED TEXTILE MILLS LIMITED, PAKISTAN.

(2) DIN TEXTILE MILLS LIMITED, PAKISTAN.

(3) ELITE TEXTILE MILLS LIMITED, PAKISTAN.

(4) CRESCENT TEXTILE MILLS LIMITED, PAKISTAN.

(5) KOHINOOR TEXTILE MILLS LIMITED, PAKISTAN.

(6) ASIM TEXTILE MILLS LIMITED, PAKISTAN.

(7) BHANERO TEXTILES, PAKISTAN.

(8) SAIF TEXTILE MILLS LIMITED, PAKISTAN.

(9) DAWOOD COTTON MILLS, PAKISTAN.

 

 

Bankers

 

  1. Bank Alfalah Limited, Pakistan.

 

  1. Saudi Pak Commercial Bank Limited, Pakistan.

 

  1. Habib Bank Limited, Pakistan.

 

  1. Albaraka Islamic Bank B S C, Pakistan.

 

 

Scenario Related To Textile Industry In Pakistan

 

Pakistan is a single industry country i.e., the main industry is textile which earns up to 66 percent of the total annual foreign exchange earnings. Pakistan is more independent economically than politically. When Pakistan's Prime Minister visited China a couple of months back, he had signed with the Chinese Prime Minister a five-year bilateral economic cooperation agreement identifying textile as area of collaboration between the two countries. China is interested in joint venture business investment and technology  in areas of cotton growing and processing, development of chemical fibre industry, upgrading textile equipments and technology, boosting market competitiveness internationally in textile products. China is the biggest player in cotton textile industries and is the largest importer of raw cotton and it cannot export any cotton to China as is already short by some 2.5 million bales annually. What is really need is the assistance and cooperation of China and USA in improving efficiency and competitiveness in textile sector for staying competitive in the world market and not over-taking Pakistan textile industry for own benefits. A spate of textile-production units shifting from Pakistan to Bangladesh has alarm bells ringing in Islamabad. Since the translocations began all of a sudden a year ago, Pakistani trade and textile authorities have become frantically engaged in talks with local industry representatives, attempting to convince them to stay in the country. Pakistan’s textile ministry, first formed in Prime Minister Shaukat Aziz’s Cabinet in 2004, appears convinced that time is running out for the country’s textile exporters, largely due to an increased cost of doing business. Many worry that a continuation of the situation could trigger capital flight, and cause massive unemployment. While the government did offer the textile sector a PKR 40 billion relief package through export rebates and concessions on loan mark-ups, textile businesses are desperate for more. “We will lose our export orders, which we find difficult to comply with because of a rise in production cost,” warns Aziz Memon, chairman of Kings Group, a large garment exporter. “Once we lose a market after having failed to service our booked orders, it is next to impossible to get back there again.”  Textile exports in Pakistan are projected to earn USD 11.5 billion this fiscal year, up from USD 10.1 billion last year. But the sector may miss that target specifically due to issues of incentives, which are still unsettled between the industry and the government. Further the cost of doing textiles business in Pakistan is much higher than in other South Asian Countries, mainly due to exorbitant and unbalanced energy costs.

 

 

Memberships

 

Faisalabad Chamber of Commerce & Industry.(FCCI)

Federation Pakistan Chamber of Commerce & Industry.(FPCCI)

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupees

US Dollar

1

            Rs. 79.00 

UK Pound

1

            Rs. 119.10

Euro

1

            Rs. 110.60

 

 

 

Comments

 

Subject Company was established in 1989 and is engaged in manufacture of Textile Chemicals, Textile Auxiliaries. Also engaged in import & trading of Dyes & Pigments, Chemical Additives used for Textile processing & manufacturing. Company’s market reputation is good. Trade relations are reported as fair. Subject can be considered for normal business dealings at usual trade terms and conditions.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.47.39

UK Pound

1

Rs.70.65

Euro

1

Rs.66.33

 

 

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

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