|
Report Date : |
02.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
NAVEENA EXPORTS LTD (NEL) |
|
|
|
|
Registered Office : |
B-21, Naveena House, Block 7 & 8, Banglore Town, Main
Shahrah-e-Faisal, Karachi |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
30.06.2012 |
|
|
|
|
Date of Incorporation : |
28.03.1989 |
|
|
|
|
Legal Form : |
Public Limited Liability Company
|
|
|
|
|
Line of Business : |
Manufacturing and Export of Fabrics & Garments |
|
|
|
|
No. of Employees : |
6,000 |
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, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 under 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 almost 12% for 2011, before declining to 10% in 2012. 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 fiscal year 2012, 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 about 3% per year from 2008 to 2012. 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 and rapidly urbanizing population, more than half of which is under 22. Other long term challenges include expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, and reducing dependence on foreign donors.
|
Source
: CIA |
NAVEENA EXPORTS
LTD (NEL)
|
Business Name |
Naveena Exports Limited (NEL) |
|
Address |
Head Office/
Registered Address: B-21, Naveena House, Block 7 & 8, Banglore Town, Main
Shahrah-e-Faisal, Karachi. Manufacturing
Facility: Karachi Denim Unit Plot No. 1, Sector-28, Korangi Industrial Area, Karachi - 74900.
Pakistan Lahore Denim and Shipping Unit 3.5 KM off Bhuptian Chowk, Raiwind Road, Lahore Bangladesh
Office: Flat # 10, House 531/4, Road # 11, DOHS Bharidhara, Dhaka, Bangladesh Inquiry Address: Plot No 1, Sector-28 Kotangi Industrial Area, Karachi, Pakistan |
|
Telephone |
(+92) (21) 34543181-2, 34310631-2 |
|
Fax |
(+92) (21) 34310630 |
|
Email |
|
|
Website |
|
|
Business activities |
Manufacturing and Export of Fabrics & Garments |
|
CRO Registration Number |
0019395 |
|
Date of Registration |
March 28, 1989 |
Other registry & certification details:
|
Current Legal Form |
Public Limited Liability Company
|
|
National Tax Registration Number |
0676615-3 |
|
Date of Registration |
February 28th 1996 |
|
GST Registration Number |
1201610300119 |
|
Date of Registration |
July 6th 1996 |
|
Chamber of Commerce & Industry |
Karachi Chamber of Commerce & Industry |
|
ISO Certification |
ISO 9001:2001
|
Capital
|
Type |
No. of Shares |
Par Value |
Total Value |
|
Authorized |
8,500,000 |
100 |
850,000,000 |
|
Issued, Subscribed & Paid-Up |
8,488,670 |
100 |
848,867,000 |
History
|
Who started |
Mr. Masood Riaz |
|
When started |
March 28, 1989 |
|
Change in management |
No change |
|
Year of change |
N/A |
|
Change in legal status |
Naveena Export (Pvt.) Ltd to Naveena Exports Limited |
|
Year of change |
Undetermined |
|
Change in business name |
No change |
|
Year of change |
N/A |
|
Name |
Number of Shares |
Nationality |
Appointment Date
(Last) |
|
Mr. Asif Riaz |
3,140,808 |
Pakistani |
30 OCT 2013 |
|
Mr. Masood Riaz |
3,140,808 |
Pakistani |
30 OCT 2013 |
|
Mr. Saqib Riaz |
2,207,054 |
Pakistani |
30 OCT 2013 |
|
Total |
8,488,670 |
|
|
|
Name |
Position in organization |
Qualification |
Years in
employment |
|
Mr. Masood Riaz |
CEO |
Undetermined |
Undetermined |
|
Mr. Taimoor |
Finance Manager |
Not disclosed |
Not disclosed |
|
Statutory offices |
Name of service
provider |
|
Statutory Auditors |
M/s Ibrahim Shaikh & Co Chartered Accountants |
|
Legal Advisory Services |
M/s Khalid Anwar & Co Law Associates |
|
Bank name |
Approved
financing limits PKR |
|
Soneri Bank Limited |
163,995,000 |
|
Habib Bank Ltd United Bank Ltd Faysal Bank Limited |
247,000,000 267,000,000 167,000,000 |
|
Habib Bank Limited |
266,667,000 |
|
United Bank Limited |
167,000,000 |
|
Faysal Bank Limited |
266,670,000 |
|
Hsbc Bank Middle East Limited |
179,000,000 |
|
Barclays Bank Plc |
500,000,000 |
|
Pak Oman Investment Company Limited |
356,806,000 |
|
Js Bank Limited |
134,000,000 |
|
Meezan Bank Limited |
446,000,000 |
|
Dubai Islamic Bank Pakistan Limited |
533,334,000 |
|
National Bank Of Pakistan |
300,000,000 |
|
Habib Metropolitan Bank Limited |
130,000,000 |
|
The Bank Of Punjab |
133,333,333 |
|
Allied Bank Limited |
400,000,000 |
|
Bank Alfalah Limited |
333,333,334 |
|
Bank Al Habib Limited |
Depository
relation |
|
Bank Islami Pakistan Limited |
Depository
relation |
The core business focus of NEL
is
Manufacturing of Fabrics & Garments.
Established
in 1989, Naveena Exports Limited is a complete vertically integrated company
engaged in manufacture of world class yarn and denim fabric. NEL aims to be the
leading exporter and established denim brand from Pakistan. Currently NEL is
associated with leading denim brands of the world such as Levi’s and JCP.
Purchases (Incl.
Imports)
|
Imports from |
Japan, Europe, USA |
|
Importing terms |
L/C |
|
Local |
All over Pakistan |
|
Local buying terms |
Cash and Credit of 45-60 days |
Sales (Incl.
Exports)
|
Exports to |
Europe, Far East, Africa, South & East Asia, USA |
|
Exporting terms |
L/C |
|
Local (10%) |
Sindh-Punjab |
|
Local selling terms |
Cash and Credit of 30-60 Days |
Additional
information (Extracts from official website of the organization):
Naveena Exports Limited is a modern textile group specializing in yarn
spinning, denim fabric weaving and garment production, established in 1965 with
a single Composite Knit Unit under the dynamic leadership of Late Mr. Riaz
Ahmed Tata. Since then Naveena Group has grown tremendously and performed
beyond expectations. With an objective to serve today’s diverse and innovative
market needs, the group broadened its operations in the field of textile. With
no time the vision personified into reality with the continually evolving product
line mainly offer 3 series of products, including Cotton Yarn, Denim Fabric and
Garments. At present, our annual outputs are: 10 Million Kgs of cotton
yarn, 36 million meters of denim fabrics and 2.4 million pieces of garments.
|
Nature of
employment |
Current Year |
Previous Year |
|
All Staff |
6,000 |
5,900 |
|
Total |
6,000 |
5,900 |
|
Registered Address Owned / Rented Area (approx) |
B-21, Naveena House, Block 7 & 8, Banglore Town, Main
Shahrah-e-Faisal, Karachi. Undetermined Undetermined |
|
Head Office Address Owned / Rented Area (approx) |
3.5-km Off Bhoptian Chowk, Raiwind Road, Lahore. Undetermined Undetermined |
|
Branches |
Karachi Denim Unit Lahore Denim & Spinning Unit Bangladesh Office Flat # 10, House 531/4, Road # 11, DOHS Bharidhara, Dhaka, Bangladesh.
|
Four suppliers and a company in the same line of business were contacted to get a
feedback about NEL, its products and sponsors. All the feedback was found
Satisfactory and no disputes or untoward events including complaints about
quality of products were reported/ identified during inquiry.
|
Business Name |
City |
Line of Business |
Percentile of
Shareholding |
|
None |
|||
|
Particulars |
30-Jun-12 |
30-Jun-11 |
% Change |
|
|
Rs. ‘000 |
Rs. ‘000 |
Rs. ‘000 |
|
Current assets |
4,359,191 |
4,864,926 |
(10.40) |
|
Current liabilities |
(4,342,517) |
(4,837,275) |
(10.23) |
|
Working capital |
16,674 |
27,651 |
(39.70) |
|
|
|
|
|
|
Non-current assets |
4,538,492 |
4,427,265 |
2.51 |
|
Long term liabilities |
(1,557,892) |
(1,748,253) |
(10.89) |
|
Net worth |
2,997,274 |
2,706,663 |
10.74 |
|
|
|
|
|
|
Turnover |
8,230,223 |
7,726,914 |
6.51 |
|
Gross Profit |
1,543,743 |
1,390,632 |
11.01 |
|
EBIT |
362,331 |
365,083 |
(0.75) |
|
Profit / (Loss) before tax |
372,532 |
382,260 |
(2.54) |
|
Provision for taxation |
(81,921) |
(80,986) |
1.15 |
|
Profit / (Loss) after tax |
290,611 |
301,274 |
(3.54) |
|
|
|
|
|
|
Creditors |
391,298 |
522,393 |
(25.10) |
|
Debtors |
1,262,152 |
1,048,032 |
20.43 |
|
Cash & bank balances |
105,363 |
165,981 |
(36.52) |
|
|
|
|
|
|
Growth trend |
|
|
|
|
Sales growth (%) |
6.51% |
|
|
|
Gross profit growth (%) |
11.01% |
|
|
|
|
|
|
|
|
Solvency |
|
|
|
|
Current ratio |
(1.00) |
(1.01) |
|
|
Quick ratio |
(0.50) |
(0.41) |
|
|
Total liabilities to net worth ratio (%) |
(196.86) |
(243.31) |
|
|
|
|
|
|
|
Profitability |
|
|
|
|
Return on sales (%) |
3.53 |
3.90 |
|
|
Return on net worth (%) |
9.70 |
11.13 |
|
|
Contact person |
Mr. Taimoor |
|
Position |
Manager Finance |
|
Contact Person Comments |
Mr. Taimoor confirmed business operations and business information. At the time of physical visit employees were found busy in their
respective tasks. Contact person was reluctant to share financial information. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.39 |
|
|
1 |
Rs.102.06 |
|
Euro |
1 |
Rs.84.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.