MIRA
INFORM REPORT
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Report Date : |
15.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
ARZOO TEXTILE MILLS LIMITED |
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Registered Office : |
209, Regency Arcade, The
Mall, Faisalabad, |
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Country : |
Pakistan |
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Financials (as on) : |
2003 |
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Date of Incorporation : |
1991 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacture & Export of Home Textile Products & Garments |
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 : |
No Complaints |
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Litigation : |
Clear |
COMPANY Name
ARZOO TEXTILE MILLS LIMITED
Address
Registered Address
209, Regency Arcade, The Mall, Faisalabad,
Pakistan
Tel 92 (41) 4361250, 4361251
Fax 92 (41) 4362677
Email anjumtex@fsd.comsats.net.pk,
Short Description Of
Business
Nature of Business Manufacture
& Export of Home Textile Products & Garments.
Year Established 1991
Registration # 0023788
Factory Location
Address 2.6 Km, Jaranwala Road,
Khurianwala, Faisalabad, Pakistan
Tel # 92 (41) 4361251, 4361250
Fax # 92 (41) 4361476, 4362677
Auditors
Aslam Khan & Company
(Chartered Accountants)
11-Happy Homes, Salman Ahmad Road, Gulberg,
Lahore, Pakistan
Legal Status
Subject Company was established as a Public
Limited Company in 1991
Authorized Capital
& Issued & Paid up
Capital
Authorized Capital Rs.
350,000,000/- divided into 35,000,000 shares of Rs. 10/- each
Issued & Paid up Capital Rs. 343,286,000/- divided into 34,328,600
shares of Rs. 10/- each
Details of Directors
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Names |
Designation |
|
Mr. Azhar Majeed Sheikh Mrs. Dilshad Azhar Mr. Arsal Majeed Sheikh Mr. Asim Majeed Sheikh Mr. Athar Majeed Sheikh Mr. Afzal Majeed Sheikh Mrs. Maryam Arsal Miss Madeeha Asad |
Chief Executive Director Director Director Director Director Director Director |
Shareholders
|
Names |
No. of Shares |
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Mr. Azhar Majeed Sheikh Mr. Asim Majeed Sheikh Mr. Arsal Majeed Sheikh Mrs. Dilshad Azhar Mr. Athar Majeed Sheikh Mr. Afzal Majeed Sheikh Mrs. Maryam Arsal Mrs. Nazli Asad Mr. Ayaan Azhar Miss. Madeeha Asad |
25,907,910 1,000 2,574,645 1,029,860 85,820 2,574,645 1,029,860 9,500 85,500 1,029,860 |
Associates
A. Subsidiary
None
B. Associated Companies
(1) Arzoo International (Private) Limited, Pakistan.
Business Activities
Subject Company is engaged in the business as manufacture & export
of Home Textile Products & Garments.
Its mainly import Textile Raw Materials, Textile Machineries through
L/C, T.T. basis.
It sells its product through L/C, T.T. basis.
Its main customers are reputable companies, worldwide.
Subject operates from caption leased office premises measuring 1,650
Sq.ft. which is situated in commercial centre.
Subject employs more than 400 persons in its set up.
Annual Sales Volume
|
Years |
In Pak Rupees |
|
2002 2003 |
2,785,014,388/- 2,752,204,103/- |
Production Capactiy
500,000 Pieces Per Annum
Customers (Foreign)
(1) GAP.
(2) TOMMY HILFIGER.
(3) VF CORPORATION.
(4) SEARS.
(5) RUSSELL ATHLETICS.
(6) AMERICAN EAGLE OUTFITTERS.
(7) JCPENNEY.
(8) LEE SPORTSWEAR.
(9) PHILLIPS VAN HEUSEN.
Bankers
(1) Faysal Bank Limited, Pakistan.
(2) Bank Alfalah Limited, Pakistan.
(3) Habib Bank Limited, Pakistan.
(4) Standard Chartered Bank, Pakistan.
(5) Citibank N.A., Pakistan.
(6) Allied Bank Limited, Pakistan.
(7) United Bank
Limited, Pakistan.
Memberships
Faisalabad Chamber of Commerce & Industry.(FCCI)
All Pakistan Textile Mills Association.(APTMA)
Foreign Exchange
Rates
|
Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 63.10 |
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UK Pound |
1 |
Rs. 124.15 |
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Euro |
1 |
Rs. 92.15 |
Comments
Subject Company was established in 1991 and is engaged in manufacture
& export of Home Textile Products & Garments. Subject 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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ARZOO TEXTILE MILLS LIMITED |
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BALANCE SHEET AS AT JUNE 30, 2003 |
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2003 |
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2002 |
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Note |
Rupees |
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SHARE CAPITAL & RESERVES |
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Authorised capital |
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3 |
350,000,000 |
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350,000,000 |
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Issued, subscribed and paid-up capital |
3 |
343,286,000 |
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343,286,000 |
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Accumulated profit |
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560,235,511 |
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492,926,378 |
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903,521,511 |
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836,212,378 |
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Capital reserve |
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34,374,979 |
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34,374,979 |
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937,896,490 |
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870,587,357 |
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Long term loans |
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Long term loans |
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4 |
133,333,333 |
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- |
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Liabilities against assets subject to finance |
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lease |
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5 |
1,299,201 |
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1,085,703 |
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134,632,534 |
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1,085,703 |
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Current liabilities |
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Current portion of long term loans |
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68,231,437 |
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1,119,758 |
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Finance under mark up arrangement |
6 |
1,574,697,922 |
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1,305,473,070 |
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Creditors, accrued and other liabilities |
7 |
311,616,523 |
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317,543,823 |
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1,954,545,882 |
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1,624,136,651 |
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Contingencies and commitments |
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8 |
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3,027,074,906 |
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2,495,809,711 |
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2003 |
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2002 |
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Note |
Rupees |
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FIXED CAPITAL
EXPENDITURE |
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Operating fixed
assets - Tangible |
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9 |
705,519,914 |
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629,037,486 |
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Long term deposits
and deferred costs |
10 |
826,512 |
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600,862 |
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Long term
investments |
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11 |
72,055,000 |
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72,055,000 |
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Current assets |
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Stores, spares and
loose tools |
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12 |
136,381,467 |
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43,619,190 |
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Stock in trade |
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13 |
492,541,474 |
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402,805,802 |
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Trade debts |
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14 |
735,959,108 |
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675,365,110 |
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Short term
investments |
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15 |
256,000,000 |
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30,000,000 |
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Advances, deposits
and prepayments |
16 |
486,831,411 |
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564,505,189 |
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Cash and bank
balances |
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17 |
140,960,020 |
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77,821,072 |
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2,248,673,480 |
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1,794,116,363 |
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3,027,074,906 |
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2,495,809,711 |
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ARZOO TEXTILE MILLS LIMITED |
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PROFIT AND LOSS ACCOUNT |
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FOR THE YEAR ENDED JUNE 30, 2003 |
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2003 |
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2002 |
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Note |
Rupees |
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Sales |
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18 |
2,752,204,103 |
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2,785,014,388 |
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Cost of goods sold |
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19 |
2,442,592,568 |
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2,464,934,200 |
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Gross profit |
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309,611,535 |
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320,080,188 |
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OPERATING EXPENSES |
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Administrative |
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20 |
81,148,704 |
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62,278,135 |
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Selling and distribution |
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21 |
49,235,016 |
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61,093,585 |
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130,383,720 |
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123,371,720 |
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Operating profit |
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179,227,815 |
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196,708,468 |
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Financial charges |
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22 |
85,697,803 |
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132,796,503 |
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93,530,012 |
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63,911,965 |
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Other income / (Loss) |
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55,200 |
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(5,000) |
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93,585,212 |
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63,906,965 |
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Workers profit participation fund |
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4,679,261 |
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3,194,294 |
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Profit / (Loss) before taxation |
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88,905,951 |
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60,712,671 |
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Provision for taxation - Current |
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(21,660,492) |
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(22,451,931) |
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Net profit / (loss) after taxation |
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67,245,459 |
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38,260,740 |
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Prior year adjustment |
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334,258 |
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(8,155,514) |
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Prior year tax adjustment |
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(270,584) |
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478,932 |
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67,309,133 |
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30,584,158 |
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Unappropriated profit brought forward |
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492,926,378 |
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462,342,220 |
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560,235,511 |
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492,926,378 |
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Earnings per share - Basic |
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24 |
1.96 |
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1.11 |
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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%)