MIRA INFORM REPORT

Report Date :

15.07.2011

IDENTIFICATION DETAILS

Name :	IBRAHIM FIBRES LIMITED
Registered Office :	1 - Ahmed Block, New Garden Town, Lahore
Country :	Pakistan
Financials (as on) :	30.06.2010
Year of Establishment :	1986
Com. Reg. No.:	0014764
Legal Form :	Limited Company
Line of Business :	Manufacture and Sale of Polyester Staple Fibre and Yarn.

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

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2010

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Pakistan	B2	B2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Business Name

IBRAHIM FIBRES LIMITE

Registered Address

1 - Ahmed Block, New Garden Town, Lahore, Pakistan

Tel #	92 (42) 111-333-777, 35869151
Fax #	92 (42) 35864915

Short Description Of Business

a.	Nature of Business	The principal business of the Company is manufacture and sale of polyester staple fibre and yarn.
b.	Year Established	1986
c.	Registration #	0014764

Corporate Office

15 - Club Road, Faisalabad, Pakistan

Plant Location

38 - 40 Kilometres, Faisalabad

Sheikhupura Road, Faisalabad,

Pakistan

Auditors

Avais Hyder Liaquat Nauman

(Chartered Accountants)

Legal Status

Ibrahim Fibres Limited (the Company) is incorporated in Pakistan as a public limited company under the Companies Ordinance, 1984 (the Ordinance) and is listed on the Stock Exchanges in Pakistan.

Details of Chairman/Directors

Names	Designation
Mr. Sheikh Mukhtar Ahmed Mr. Mohammad Naeem Mukhtar Mr. Mohammad Waseem Mukhtar Mr. Shahid Amin Mr. Anwarul Haque Mr. Mohammad Pervaiz Aslam Rana Mr. Syed Asif Hasan	Chairman Chief Executive Director Director Director Director Director

Categories of Shareholders

Categories	Percentage (%)
Associated Companies, Undertakings and related parties NIT & ICP Directors, Chief Executive Officer and their spouses Executives Banks, DFIs, NBFIs & Leasing Companies Insurance Companies Modarabas and Mutual Funds Joint Stock Companies General Public	--- 0.5862 88.0022 0.0029 0.6608 0.6915 0.3682 0.5720 9.1163

Associates

A. Subsidiary

None

B. Associated Companies

(1) A.A. Textiles Limited, Pakistan.

(2) Zainab Textile Mills Limited, Pakistan.

(3) Allied Bank of Pakistan Limited, Pakistan.

(4) Ibrahim Energy Limited, Pakistan.

Business Activities

The principal business of the Company is manufacture and sale of polyester staple fibre and yarn.

Number of Employees

1,000 - 1,500

Plant Capacity and Actual Production

2010 2009

(In Metric Tons)

Annual production capacity

Polyester Staple Fibre / Polyester Chips 208,600 208,600

Yarn converted into 20/s count (Spindles installed

137,856 (2009: 137,856)) 41,696 41,696

Annual production

Polyester Staple Fibre / Polyester Chips 181,579 178,981

Yarn converted into 20/s count (Spindles worked 136,305

(2009: 135,728)) 48,712 48,343

Bankers

(1) Bank Alfalah Limited, Pakistan.

(2) Bank Al Habib Limited, Pakistan.

(3) BankIslami Pakistan Limited, Pakistan.

(4) Barclays Bank PLC, Pakistan.

(5) Citibank, N.A., Pakistan.

(6) Deutsche Bank AG, Pakistan.

(7) Faysal Bank Limited, Pakistan.

(8) Habib Bank Limited, Pakistan.

(9) Habib Metropolitan Bank Limited, Pakistan.

(10) HSBC Bank Middle East Limited, Pakistan.

(11) JS Bank Limited, Pakistan.

(12) MCB Bank Limited, Pakistan.

(13) Meezan Bank Limited, Pakistan.

(14) National Bank of Pakistan, Pakistan.

(15) Standard Chartered Bank (Pakistan) Limited, Pakistan.

(16) United Bank Limited, Pakistan.

Financial Position

Sound.

Future Outlook

The robust demand of yarn which is expected to continue during the next financial year, and rise in prices of cotton are expected to further increase the demand of PSF in the country. On the other hand, prices of PSF feedstock are expected to remain stable during the next financial year which will improve the net margins of PSF and yarns. Your Company is expected to achieve higher production and sales volumes and, by the grace of God, will achieve better results during next financial year.

Group Profile

The group started with a cloth trading business in the industrial city of Faisalabad. Late Haji Sheikh Mohammad Ibrahim, founder of the Ibrahim Group, settled in Faisalabad after partition of India in 1947 and re-established his ancestral business of cloth trading by the name of “Ibrahim Agencies”. What is known in business today as Ibrahim Group with diversified business interests from Spinning to PSF, Financial Institutions to Banking and Energy, started off as a mere cloth trading agency just half a century ago. It was middle of the fifties, when Sheikh Mukhtar Ahmed, present Chairman of the group, joined in this family business. It was then, that he took initiative to integrate the business vertically upwards adding up yarn trading as an additional line of business. Turning out to be a milestone in the future progress, it did not take long before the group was widely reputed and respected in marketing of cotton and blended yarns. Backed by this goodwill and experience in marketing, in 1980, manufacturing of own blended yarn was initiated by establishment of Ibrahim Textile Mills Limited. With long term considerations and a simple principle of “no compromise on quality”two more textile spinning companies; A.A. Textiles Limited in 1982 and Zainab Textile Mills Limited in 1987 were established. A power generation Company Ibrahim Energy Limited was incorporated in 1991 to improve the efficiency of the existing manufacturing companies. All these manufacturing companies have now been merged into Ibrahim Fibres Limited. The Group diversified into the financial services by floating First Ibrahim Modaraba and also established a leasing company; Ibrahim Leasing Limited. Subsequently First Ibrahim Modaraba was merged into Ibrahim Leasing Limited. Upon declaration of the privatization policy by Government of Pakistan, Ibrahim Group together with other leading groups participated in the bidding to acquire controlling shares of Muslim Commercial Bank Limited. Under the scheme of reconstruction proposed by State Bank of Pakistan, Consortium of Ibrahim Leasing Limited, Ibrahim Group and its sponsors acquired more than 75% of the shareholding of Allied Bank of Pakistan Limited. Management and control of the Bank was handed over to Ibrahim Group on August 19, 2004. At present Ibrahim Group is holding more than 80% shareholding of this bank. One of the top five banks of Pakistan, Allied Bank has more than 742 branches across the country with 7,139 employees and financial assets of Pak Rupees 234 billion. The Group plans to inject its own dynamism and energy in the bank to turn it into a premier financial institution of the country. After the acquisition of the bank Ibrahim Leasing Limited has been merged into Allied Bank limited. The strength of the group today stands manifold with entrepreneurial skills and visionary leadership of Sheikh Mukhtar Ahmed added with fresh concepts and professional skills of Mohammad Naeem Mukhtar who has done his MBA from the University of Wales, Cardiff, UK. and Mohammad Waseem Mukhtar who has done his Bachelor in Computer Science and Masters in Total Quality Management (TQM) from the University of Glamorgan, Wales, UK.

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 85.95
UK Pound	1	Rs. 137.70
Euro	1	Rs. 120.50

Comments

Company enjoys high prestige and reputation in the business community, banks, financial institutions and customers. It is also amongst major contributors to the national exchequer. All the directors of the company are resourceful and experienced businessmen. Trade relations are reported as fair. Payments to creditors etc are reported slow but normal. 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.44.59
UK Pound	1	Rs.71.07
Euro	1	Rs.62.40

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	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
--	NB	New Business	--

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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