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Report Date : |
05.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
AZGARD NINE LTD. (ANL) |
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|
|
|
Registered Office : |
Ismail Aiwan-e-Science, off Shahrah-e-Roomi, Lahore-54600 |
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|
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Country : |
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|
|
|
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Financials (as on) : |
30.06.2013 |
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|
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Date of Incorporation : |
20.01.1993 |
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|
|
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Reg. No.: |
0029409 |
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|
|
|
Legal Form : |
Limited Liability company |
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|
|
|
Line of Business : |
Manufacturing of Yarn, Denim and Denim products |
|
|
|
|
No. of Employees : |
Not Available |
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 |
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|
|
|
Payment Behaviour : |
No complaints |
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|
|
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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 |
|
Business Name |
AZGARD NINE LTD.
(ANL) |
|
Address |
Head Office / Registered Office: Ismail Aiwan-e-Science, off
Shahrah-e-Roomi, Lahore-54600 Project
Location: Unit 1: 2.5 KM off Manga, Raiwind Road, District Kasur Unit 2: Alipur Road, Muzaffargarh Unit 3: 20 KM off Ferozepur Road, 6 KM Badian Road on Ruhi Nala, Der Khurd,
Lahore Inquiry Address: ISMAIL AIWAN-E-SCIENCE BLDG FEROZPUR ROAD LAHORE |
|
Telephone |
+92(0)42 111-786-645 |
|
Fax |
+92(0)42 35761791 |
|
Mobile |
NIL |
|
Email |
|
|
Website |
|
|
Business activities |
Manufacturing of Yarn, Denim and Denim products. |
|
CRO Registration Number |
0029409 |
|
Date of Registration |
20/1/1993 |
|
Current Legal Form |
Limited Liability company |
|
National Tax Registration Number |
1319140-3 |
|
Date of Registration |
15/11/2001 |
|
GST Registration Number |
0301520201346 |
|
Date of Registration |
26/02/1996 |
|
Chamber of Commerce & Industry |
1. Lahore Chamber of Commerce & Industry 2. All Pakistan Textile Mills Association (APTMA) 3. Pakistan Readymade Garments Manufacturers and Exporters Association
(PRGMEA) |
|
Date of Registration |
Undetermined |
|
ISO Certification |
ISO-9000, ISO-9001, ISO-14000 |
|
Date of Registration |
Undetermined |
|
Other certifications |
OEKO TAX100, ORGANIC |
|
Date of Registration |
Undetermined |
|
Type |
No. of Shares |
Par Value |
Total Value |
|
Authorized |
1,500,000,000 |
10/- |
Rs.15,000,000,000 |
|
Issued, Subscribed & Paid-Up |
Rs. 520,996,953 |
10/- |
Rs. 5,209,969,530 |
|
Who started |
Legler Nafees Denim Mills was established as a joint venture between
the colony group of Pakistan and Legler Spa, Italy. |
|
When started |
1994 |
|
Change in Business Name |
Legler-Nafees Denim Mills to Azgard Nine
Limited |
|
Year of change |
2004 |
|
Merger / Acquisition |
Azgard Nine Limited was merged into Nafees Cotton Mills Ltd. |
|
Year of change |
2002 |
|
Name |
Number of Shares |
Nationality |
Appointment Date
(Last) |
|
Mr. Ahmed H. Shaikh |
30,622,000 |
Pakistani |
10/07/09 |
|
Mr. Aehsun M.H Sheikh |
10,733,000 |
Pakistani |
07/07/09 |
|
Nasir Ali Khan Bhatti |
Undetermined |
Pakistani |
28/02/13 |
|
Mr. Naseer Mian |
Undetermined |
Pakistani |
02/05/11 |
|
Mr. Usman Rasheed |
Undetermined |
Pakistani |
30/04/10 |
|
Mr. Imran Maqbool |
Undetermined |
Pakistani |
29/04/13 |
|
Mr. Imtiaz Ali Bhatti |
Undetermined |
Pakistani |
10/09/12 |
|
Other share holder |
|
|
SAJ Capital Management Ltd. |
38,460,000 |
|
Jahangir Siddiqui & Co.
Ltd. |
112,157,863 |
|
Total |
150,617,863 |
|
Name |
Position in organization |
Qualification |
Years in
employment |
|
Aehsun M.H. Shaikh |
Chairman |
Details not provided |
|
|
Ahmed H. Sheikh |
Chief Executive Officer |
||
|
Muhammad Ijaz Haider |
Company Secretary |
||
|
Zahid Rafiq, |
Chief Financial Officer |
FCA |
--- |
|
Statutory offices |
Name of service
provider |
|
Statutory Auditors |
KPMG Taseer Hadi & Company. |
|
Legal Advisory Services |
M/S. Hamid Law Associates |
|
Bank name |
Approved
financing limits in PKR |
|
National Bank of Pakistan |
54,259,312,292 |
|
Faysal Bank Limited |
9,367,760,042 |
|
Summit Bank Limited |
90,554,245 |
|
KASB Bank Limited |
87,397,150 |
|
United Bank Limited |
69,681,083 |
|
Standard Chartered Bank (Pakistan) Limited |
66,855,751 |
|
NIB Bank Limited |
61,690,668 |
|
Allied Bank Limited |
48,445,090 |
|
Silk Bank Limited |
31,637,012 |
The Company is a composite spinning, weaving, dyeing and stitching unit
engaged in the manufacturing of yarn, denim and denim products. ANL is listed
on the Karachi Stock Exchange and aims to be the country’s largest denim product
company. ANL has earned good reputation in the market due to its quality.
ANL has also earned international recognition in the form of ISO
certification and other awards/certification such as SA
8000 : 2008, OE 100 and Oeko - Tex 100.
Purchases (Incl.
Imports)
|
Imports from |
China, Singapore, Taiwan, UK, USA |
|
Importing terms |
LC basis |
|
Local (%) |
60% |
|
Local buying terms |
60 days cash & credit basis. |
Sales (Incl.
Exports)
|
Exports to |
Italy, Spain, Turkey, USA and China |
|
Exporting terms |
LC/DA basis. |
|
Local (%) |
20% |
|
Local selling terms |
30 days credit |
|
Nature of
employment |
Current Year |
Previous Year |
|
All Staff |
Undetermined |
Undetermined |
|
Total |
Undetermined |
|
|
Head office Address Owned / Rented Area (approx) |
Ismail Aiwan-e-Science, Shahrah-e-Roomi, Lahore-54600 Undetermined |
|
Factory Address Owned / Rented Area (approx) |
Unit 1: 2.5 KM off Manga, Raiwind Road, District Kasur. Unit 2: Alipur Road, Muzaffaragarh. Unit 3: 20 KM off Ferozepur Road, 6 KM Badian Road on Ruhi Nala, Der Khurd, Lahore. Undetermined Undetermined |
Market Reputation:
During the market check of ANL
we contacted various suppliers / customer / competitor of the subject company.
In their opinion the subject company enjoys good market reputation. Market
sources further mentioned that ANL is well known as a profitable business
in the industry.
|
Business Name |
City |
Line of Business |
Percentile of
Shareholding |
|
Montebello S.R.L |
Europe |
Textile and Apparel |
100% |
|
Particulars |
30-Jun-13 |
30-Jun-12 |
% Change |
|
|
|
|
|
|
Current assets |
5,970,155,525 |
17,682,682,199 |
(66.24) |
|
Current liabilities |
(9,732,794,035) |
(22,056,458,874) |
(55.87) |
|
Working capital |
(3,762,638,510) |
(4,373,776,675) |
(13.97) |
|
|
|
|
|
|
Non-current assets |
14,704,261,531 |
15,190,765,500 |
(3.20) |
|
Long term liabilities |
(6,210,052,248) |
(2,753,455,935) |
125.54 |
|
Net worth |
4,731,570,773 |
8,063,532,890 |
(41.32) |
|
|
|
|
|
|
Turnover |
13,719,625,585 |
11,524,279,419 |
19.05 |
|
Gross Profit |
461,579,630 |
(1,118,047,401) |
141.28 |
|
EBIT |
3,203,234,266 |
(2,536,242,646) |
(226.30) |
|
Profit / (Loss) before tax |
1,101,484,062 |
(5,960,620,717) |
(118.48) |
|
Provision for taxation |
(137,539,517) |
(115,954,408) |
18.62 |
|
Profit / (Loss) after tax |
963,944,545 |
(6,076,575,125) |
(115.86) |
|
|
|
|
|
|
Creditors |
2,526,245,640 |
4,049,064,395 |
(37.61) |
|
Debtors |
2,149,837,255 |
2,384,301,663 |
(9.83) |
|
Cash & bank balances |
132,259,604 |
289,721,743 |
(54.35) |
|
|
|
|
|
|
Growth trend |
|
|
|
|
Sales growth (%) |
19.05% |
|
|
|
Gross profit growth (%) |
-141.28% |
|
|
|
|
|
|
|
|
Solvency |
|
|
|
|
Current ratio |
(0.61) |
(0.80) |
|
|
Quick ratio |
0.95 |
(0.80) |
|
|
Total liabilities to net worth ratio (%) |
(336.95) |
(307.68) |
|
|
|
|
|
|
|
Profitability |
|
|
|
|
Return on sales (%) |
7.03 |
(52.73) |
|
|
Return on net worth (%) |
20.37 |
(75.36) |
|
|
Contact person |
Mr. Zahid Rafiq, Salman Khalid |
|
Position |
CFO, Manager |
|
Comments |
Both the above mentioned persons confirmed business. Employees were seen busy in their respective tasks. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.33 |
|
|
1 |
Rs.102.18 |
|
Euro |
1 |
Rs.84.68 |
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.