MIRA INFORM REPORT

 

 

Report Date :

04.11.2011

 

IDENTIFICATION DETAILS

 

Name :

AZGARD NINE LIMITED

 

 

Registered Office :

Ismail Aiwan-i-Science, Off Shahrah-i-Roomi, Lahore 54600

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2011

 

 

Year of Establishment :

1993

 

 

Com. Reg. No.:

0029409

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Manufacturing of Yarn, Denim & Denim Products

 

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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

 

AZGARD NINE LIMITED

 

 

Full Address       

 

Registered Address

Ismail Aiwan-i-Science, Off Shahrah-i-Roomi, Lahore 54600, Pakistan.

                       

Tel #

92 (42) 111-786-645, 35761791

Fax #

92 (42) 35761792

Website

www.azgard9.com

 

 

Project Locations

           

Address

2.5 KM, Off Managa, Raiwind Road, District Kasur, Pakistan.

Tel #

92 (4951) 384081, 384082

Fax #

92 (4951) 384093

           

Address

Alipur Road, Muzaffargarh, Pakistan.

Tel #

92 (661) 422503, 422651

Fax #

92 (661) 422652

 

 

Short Description Of Business

 

a.

Nature of Business        

Manufacturing of Yarn, Denim & Denim Products

b.

Year Established

1993

c.

Registration #

0029409

 

 

Branches

 

In Muzaffargarh, Raiwind & Karachi.

 

 

Front Office

           

In U.S.A., Italy, Turkey & Sweden.

 

 

 

Legal Status

 

The name of the Company was changed from Legler Nafees Denim Mills Limited to Azgard Nine Limited (the Company) as on April 07, 2004. Company was incorporated in Pakistan as a public limited Company and its shares are quoted at Karachi Stock Exchange (Guarantee) Limited.

 

 

Auditors

           

Rahman Sarfaraz Rahim Iqbal Rafiq

(Chartered Accountants)

 

 

Details of Chairman / Directors

 

Names

Designation

Mr. Khalid A.H. Al-Sagar

 

Mr. Ahmed H. Shaikh

 

Mr. Aehsun M.H. Shaikh

 

Mr. Irfan Nazir Ahmed

 

Mr. Aamer Ghias

 

Mr. Usman Rasheed

 

Mr. Naseer Miyan

Chairman

 

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Categories of Share Holders                 

 

Shareholders

In Percentage (%)

Individuals

 

Insurance Companies

 

Joint Stock Companies

 

Financial Institutions

 

Modarabas

 

Investment Companies

 

Mutual Funds

 

Leasing Companies

 

Funds

 

Modaraba Management Cos.

 

Others

35.00

 

1.82

 

29.0

 

14.6

 

0.05

 

10.1

 

0.65

 

0.03

 

7.90

 

0.03

 

 0.80

           

 

Associated Companies

 

(1)     Nafees International Tekstil, Turkey.

(2)     Jahangir Siddiqui Group, Pakistan.

 

 

Products / Services

 

Principally engaged in the manufacturing of Yarn, Denim & Denim Products.

 

 

Number of Employees

 

4,700

 

 

Plant Capacity & Production

 

                                                                                                2011                             2009                

            Spinning

 

            No. of Rotors Installed                                                    2,416                           2,416    

            Plant capacity on the basis of utilization                         

Converted into 6.5s count                       - Kgs       11,218,474                   14,965,001

            Actual production converted

            into 6.5s count                                       - Kgs         9,104,294                   11,924,619

 

 

            No. of spindles installed                                                  54,408                       54,408                

Plant capacity on the basis of                                        

            Utilization converted into 20s count          - Kgs          12,814,834                 12,814,834

            Actual production converted into 

            20s count                                              - Kgs          11,339,742                 10,754,318

 

            Weaving 

           

            No. of looms installed                                            230                              230    

            Annual rated capacity on the

            Basis of utilization - at 38 picks   - Mtrs                69,486,535                 40,028,613          

            Actual production - at 38 picks    - Mtrs                35,413,708                 26,246,413

 

 

            Garments

 

            No. of stitching machines installed                                 2,229                            2,229

            Annual capacity on the basis of

Utilization                                              - Pcs       11,109,339                    10,797,583                

Actual Production                                  - Pcs         9,558,897                      8,457,943    

 

 

            Urea Fertilizer

 

Rated capacity on basis of utilization       Metric Tonnes          519,750                         346,500

Actual production                                     Metric Tonnes        379,430                         383,879

Production Efficiency                                      %age                      73                               111 

 

 

Phosphatic Fertilizer

           

Rated capacity on basis of utilization         Metric Tonnes         121,500                          81,000

Actual production                                     Metric Tonnes        133,874                         113,819

Production efficiency                                       %age                    110                               141

  

 

Bankers

 

(1)     JS Bank Limited, Pakistan.

(2)     MCB Bank Limited, Pakistan.

(3)     Citibank N.A., Pakistan.

(4)     Faysal Bank Limited, Pakistan.

(5)     Habib Bank Limited, Pakistan.

(6)     HSBC Bank Middle East Limited, Pakistan.

(7)     United Bank Limited, Pakistan.

(8)     Standard Chartered Bank, Pakistan.

(9)     NIB Bank Limited, Pakistan.

(10) National Bank of Pakistan.

(11) Allied Bank Limited, Pakistan.

(12) KASB Bank Limited, Pakistan.

(13) Silk Bank Limited, Pakistan.

(14) Summit Bank Limited, Pakistan.

(15) Al Baraka Bank Pakistan Limited, Pakistan.

 

 

 

Customers

 

Various international

 

 

Exports

 

Mainly to European Countries and U.S.A.

 

 

Financial Position

 

Sound

 

 

 

Future Outlook       

 

Uncertainties and long term challenges remain on the horizon in the shape of high interest rates, persisting energy crises and rising utility costs, volatile cost of cotton and deteriorating law and order conditions. The expected devaluation of Rupee and ever increasing inflation are the other causes of concern for this sector. In this difficult time, the textile sector expects very effective measures from the government to protect export businesses of the Country of which textile sector is the biggest contributor.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

           Rs. 86.30

UK Pound

1

           Rs. 137.60

Euro

1

           Rs. 118.50

 

 

Comments

 

Subject is a well-established company enjoying satisfactory share of its market products. Trade relations are reported as fair.  Payments to creditors etc are reported as 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.49.37

UK Pound

1

Rs.78.49

Euro

1

Rs.67.59

 

 

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%)

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.