MIRA INFORM REPORT

 

 

Report Date :

29.12.2012

 

IDENTIFICATION DETAILS

 

Name :

DEWAN WEAVING (PVT) LIMITED

 

 

 

 

Registered Office :

7th Floor, Block A, Finance & Trade Centre, Shahrah-e-Faisal, Karachi

 

 

Country :

Pakistan

 

 

Date of Incorporation :

31.05.2012

 

 

Com. Reg. No.:

0080025

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Engaged in the manufacture, marketing & export of Yarn

 

 

No. of Employees :

60

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

--

NB

New Business

 

--

 

Status :

New Business

Payment Behaviour :

Unknown

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Pakistan

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

PAKISTAN - ECONOMIC OVERVIEW

 

Decades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. Agriculture accounts for more than one-fifth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings, and Pakistan's failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Official unemployment is 6%, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty - the UN Human Development Report estimated poverty in 2011 at almost 50% of the population. Inflation has worsened the situation, climbing from 7.7% in 2007 to more than 13% for 2011, before declining to 9.3% at year-end. As a result of political and economic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis. Although the economy has stabilized since the crisis, it has failed to recover. Foreign investment has not returned, due to investor concerns related to governance, energy, security, and a slow-down in the global economy. Remittances from overseas workers, averaging about $1 billion a month since March 2011, remain a bright spot for Pakistan. However, after a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to deficit in the second half of 2011, spurred by higher prices for imported oil and lower prices for exported cotton. Pakistan remains stuck in a low-income, low-growth trap, with growth averaging 2.9% per year from 2008 to 2011. Pakistan must address long standing issues related to government revenues and energy production in order to spur the amount of economic growth that will be necessary to employ its growing population. Other long term challenges include expanding investment in education and healthcare, and reducing dependence on foreign donors.

Source : CIA

Business Name

 

DEWAN WEAVING (PVT) LIMITED

 

 

Full Address       

 

Registered Address

7th Floor, Block A, Finance & Trade Centre, Shahrah-e-Faisal, Karachi, Pakistan

                       

Tel #

92 (21) 111-364-111

Fax #

92 (21) 35630883

 

 

Short Description Of Business

 

a.

Nature of Business       

Engaged in the manufacture, marketing & export of Yarn

b.

Year Established

31st May, 2012

c.

Registration #

0080025

 

 

Mills Location

 

Plant is located at Industrial Estate of Karachi

 

 

Auditors

 

Messrs Tahir Jawad Imran Fecto

(Chartered Accountants)

309, Progressive Centre, 30-A, Block 6, P.E.C.H.S., Shahrah-e-Faisal, Karachi, Pakistan

 

 

Legal Status

 

Subject Company was established as a Private Limited Company in 31st May, 2012

 

 

Authorised Capital           

Rs. 200,000,000/- divided into 20,000,000 shares of Rs. 10/- each

Issued & Paid up Capital

Rs. 200,000,000/- divided into 20,000,000 shares of Rs. 10/- each

 

Details of Management

 

Names

Designation

Mr. Moiz Ahmed Kirmani

 

Mr. Dewan Muhammad Yousuf Farooqui

 

Mr. Dewan Abdul Baqi Farooqui

 

Mr. Haroon Iqbal

Chief Executive

 

Director

 

 

Director

 

Director

 

 

Shareholders                

 

Names

No. of Shares

Mr. Dewan Muhammad Yousuf Farooqui

 

Mr. Dewan Abdullah Ahmed

 

Mr. Dewan Abdul Baqi Farooqui

 

Mr. Abdul Rehman

 

Assets Risk Management Services (Pvt) Limited, Pakistan

 

Mr. Haroon Iqbal

 

11,999,999

 

1,500,000

 

3,000,000

 

1,500,000

 

 

2,000,000

 

1

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

                        None                                             

           

B.         Associated Companies

 

(1)   Dewan Automotive Engineering Limited, Pakistan.

(2)   Dewan Petroleum (Pvt) Limited, Pakistan.

(3)   Dewan Textile Mills Limited, Pakistan.

(4)   Dewan Khalid Textile Mills Limited, Pakistan.

(5)   Dewan Mushtaq Textile Mills Limited, Pakistan.

(6)   Dewan Farooque Spinning Mills Limited, Pakistan.

(7)   Dewan Cement Limited, Pakistan.

(8)   Dewan Sugar Mills Limited, Pakistan.

Business Activities

 

Engaged in the manufacture, marketing & export of Yarn

 

 

No of Employees

 

60

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2012

Not ascertained as the subject is a new Company and not yet started its commercial production

 

 

Trade Suppliers (Foreign)

           

Subject mainly import from Companies belongs to European Countries & China

 

 

Customers

           

None

 

 

Bankers

 

(1) Habib Bank Limited, Pakistan.

(2) MCB Bank Limited, Pakistan.

(3) Bank Alfalah Limited, Pakistan.

(4) Askari Bank Limited, Pakistan.

(5) Faysal Bank Limited, Pakistan.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 97.40

UK Pound

1

          Rs. 159.00

Euro

1

          Rs. 128.30

Comments

 

Subject Company is recently established and is engaged in manufacture, marketing & export of Yarn. 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.54.85

UK Pound

1

Rs.88.39

Euro

1

Rs.72.63

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.