MIRA INFORM REPORT

Report Date :

31.10.2008

IDENTIFICATION DETAILS

Name :	ARAIN MILLS LIMITED

Registered Office :	61 - Abdali Road, Multan, Punjab

Country :	Pakistan

Year of Establishment :	1990

Com. Reg. No.:	0021259

Legal Form :	Non-Listed Public Limited Company

Line of Business :	Manufacture & Sale of Yarn

RATING & COMMENTS

MIRA’s Rating :

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

ARAIN MILLS LIMITED

Full Address

Registered Address

61 - Abdali Road, Multan, Punjab, Pakistan

Tel	92 (61) 111-555-456
Fax	92 (61) 4511867
Email	yarn@rahimbaksh.com

Short Description Of Business

a.	Nature of Business	Manufacture & Sale of Yarn
b.	Year Established	1990
c.	Registration #	0021259

Branches

(1) 78/9, Arif Jan Road, Lahore Cantt, Pakistan.

(2) 1, 2 Kaya Market, Mulji Street, Kharadar, Karachi, Pakistan.

Mills Location

Kot Chutta Basti Malana,

Jampur Road, Dera Ghazi Khan,

Pakistan

Auditors

M/s Hameed Chaudhary & Co.

(Chartered Accountants)

3^rd Floor, H.M. House, 7-Bank Square, Lahore, Pakistan

Legal Status

Subject Company was established as a Non-Listed Public Limited Company in 1990

Authorized Capital	Rs. 100,000,000/- divided into 10,000,000 shares of Rs. 10/- each
Issued & Paid up Capital	Rs. 52,500,000/- divided into 5,250,000 shares of Rs. 10/- each

Details of Directors

Names

Nationality

Address

Occupation

Designation

Mr. Muneer Ahmed

Mr. Waseem Ahmad

Mr. Abdul Waheed

Mr. Rashid Ahmed

Mrs. Zakria Begum

Mr. Tanveer Ahmed

Mr. Naveed Ahmad

Pakistani

61 - Abdali Road, Multan

Business

Chief Executive

Director

Shareholders

Names

Mr. Muneer Ahmed

Mr. Waseem Ahmad

Mr. Abdul Waheed

Mr. Rashid Ahmed

Mrs. Zakria Begum

Mr. Tanveer Ahmed

Mr. Naveed Ahmad

Associates

A. Subsidiary

None

B. Associated Companies

Rahimbaksh Textile Mills Limited, Pakistan.

Arain Textile Mills Limited, Pakistan.

Suleman Spinning Mills Limited, Pakistan.

Arain Fibres Limited, Pakistan.

Rahimbaksh Cotton Factory, Pakistan.

Business Activities

Subject Company is engaged in the business as Manufacture & Sale of Yarn.

Its mainly import Textile Raw Materials, Textile Machineries through L/C, D/A basis.

Its brand names are “MINK YARN 100% COTTON”.

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 2,200 Sq.ft. which is situated in commercial area.

Subject employs about 360 - 380 persons in its set up.

Annual Sales Volume

Year	In Pak Rupees
2006	550,000,000/- (Estimated)

Production Capacity

6,553,000 Kg per year

Customers (Foreign)

Various Local & International

Bankers

(1) Bank Alfalah Limited, Pakistan.

(2) Standard Chartered Bank, Pakistan.

(3) Faysal Bank Limited, Pakistan.

(4) Habib Bank Limited, Pakistan.

Memberships

· Multan Chamber of Commerce & Industry.(MCCI)

· All Pakistan Textile Mills Association.(APTMA)

Group Profile

Rahimbaksh Group of Companies has been in cotton ginning business for over 40 years. Rahimbaksh Textile Mills Ltd was established in 1982 in D.G. Khan based on past experience of the founders of the Group. The Group expanded to a capacity of 102,720 spindles from a mere start of 12,480 spindles. All the mills are situated in the vicinity of D.G. Khan, which is famous, as best quality cotton production area in Pakistan. Group production facilities are equipped with the best machinery made by the renowned manufacturers of the world, which is capable to produce export quality yarn. Since it's inception in 1982 Rahimbaksh group increased its exports rapidly and won customer satisfaction throughout the world. Rahimbaksh Group has become a well-recognized and distinguished name in the field of Textile industry by virtue of its commitment to quality products. Group has about 3,000 direct workers and 1,000 indirect workers employed in it. Rahimbaksh Group is contributing in the development of National Economy of Pakistan through disbursement of various Federal / Provincial Taxes, Foreign Exchange, and employment generation.

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 82.75
UK Pound	1	Rs. 135.45
Euro	1	Rs. 106.90

Comments

Subject Company was established in 1990 and is engaged in manufacture & sale of Yarn. Subject market reputation is good. Company can be considered for normal business dealings at usual trade terms and conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 49.25
UK Pound	1	Rs.80.36
Euro	1	Rs.62.84

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%)

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