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Report Date : |
16.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
FAISAL SPINNING MILLS LIMITED |
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|
|
|
Registered Office : |
Umer House, 23/1, Sector 23, S.M. Farooq
Road, Korangi Industrial Area, Karachi |
|
|
|
|
Country : |
Pakistan |
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|
|
|
Financials (as on) : |
30.06.2012 |
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|
|
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Date of Incorporation : |
1985 |
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|
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Com. Reg. No.: |
0012667 |
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|
|
|
Legal Form : |
public limited company |
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|
|
|
Line of Business : |
Engaged in manufacture & sale of yarn &
fabric |
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|
|
|
No. of Employees : |
910 |
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 |
|
Maximum Credit Limited : |
2083100 USD |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
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 |
FAISAL
SPINNING MILLS LIMITED
|
Registered
Address |
|
Umer House,
23/1, Sector 23, S.M. Farooq Road, Korangi Industrial Area, Karachi, Pakistan |
|
Tel # |
92 (21) 35115177 - 80 (4 Lines) |
|
Fax # |
92
(21) 35115190 – 91 |
|
Email |
|
a. |
Nature of
Business |
Engaged in manufacture
& sale of yarn & fabric |
|
b. |
Year Established |
1985 |
|
c. |
Registration No. |
0012667 |
|
Address |
9th Floor,
City Tower, 6-K, Main Boulevard, Gulberg II, Lahore, Pakistan |
|
Tel
No. |
92 (42) 111-130-130 |
|
Fax
No. |
92 (42) 35770015 |
(1) A-150,
S.I.T.E., Nooriabad, Karachi, Pakistan.
(2) 18-KM, Sheikhupura
Faisalabad, Road, Feroz Watwan, Sheikhupura, Punjab, Pakistan.
|
The Company was
incorporated in Pakistan as a public limited company and is listed at all
three Stock Exchanges of Pakistan |
|
Mushtaq &
Company (Chartered Accountants) |
|
Names |
Designation |
|
Mr.
Mohammad Salim Mr.
Bilal Sharif Mr.
Khurram Salim Mr.
Mohammad Amin Mr.
Adil Shakeel Mr.
Mohammad Shaheen Mr.
Mohammad Shakeel Mr.
Mohammad Sharif |
Chairman Chief
Executive Director Director Director Director Director Director |
|
Categories |
Shareholding (%) |
|
Directors,
Chief Executive Officer their spouse and minor children Associated
Companies, Undertakings and related parties NIT
/ ICP Bank
/ Financial Institutions Insurance
Companies Modarbas
& Mutual Funds General
Public / Individuals Joint
Stock Companies |
47.02 42.16 0.01 4.26 2.23 0.03 4.29 0.00 |
Associates
A. Subsidiary
None
B. Associated Companies
(1)
Bhanero Textile Mills Limited, Pakistan.
(2) Firhaj Footwear
(Pvt) Limited, Pakistan.
(3) Blessed Textile
Limited, Pakistan.
(4) Bhanero Energy
Limited, Pakistan.
(5) Bhanero Textile
Power Generation, Pakistan.
(6) Faisal Spinning Power
Generation, Pakistan.
(7) City Towers,
Pakistan.
(8) S.M. Saeed Goreja,
Pakistan.
Engaged in manufacture & sale of yarn & fabric
910
Plant Capacity & Production
June 30, June
30,
2012 2011
Spinning unit
Total number of
spindles installed 30,720 30,720
Total spindles
worked 30,720 30,720
Number of working
days
365 365
Number of shifts
per day 3 3
Installed
capacity after conversion into 20/s Kgs 11,434,172 11,434,172
Actual production
after conversion into 20/s Kgs12,291,733
12,110,907
Weaving Unit
Total number of
looms installed 263 263
Total number of
looms worked 263 263
Number of working
days 365 365
Number of shifts
per day 3 3
Installed
capacity in meters, after conversion into
50 picks (based
on number of working days
41,237,155 41,237,155
Installed
capacity in meters, after conversion into
50 picks (based
on number of working days
31,585,583 39,542,809
The main reason of short fall in actual production as compared to the
installed capacity is the stoppage of spindles / rotors for routine
maintenance.
(1) Bank Al-Habib Limited, Pakistan.
(2)
Bank
Islami Pakistan Limited, Pakistan.
(3)
Barclays
Bank Plc, Pakistan.
(4)
Citibank
N.A., Pakistan.
(5)
Dubai
Islamic Bank, Pakistan.
(6)
Habib
Bank Limited, Pakistan.
(7)
HSBC
Middle East Bank Limited, Pakistan.
(8)
Meezan
Bank Limited, Pakistan.
(9)
Standard
Chartered Bank, Pakistan.
(10) United Bank Limited, Pakistan.
|
Various Local
& International |
|
Mainly to
European, Far East & Gulf Countries |
Sound
Major threat for textile industry is power disruption due to
shutdown of gas during winter season as well as in summer season. In the absence
of gas supply, machineries have to be operated through electricity generated
from furnace oil which is not cost effective and causes in increase in
production cost.
·
All
Pakistan Textile Mills Association.
·
Karachi
Chamber of Commerce & Industry.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs.
99.40 |
|
UK Pound |
1 |
Rs.
157.00 |
|
Euro |
1 |
Rs.
133.00 |
Subject Company was established in 1985 and is
engaged in manufacture & sale of Yarn & Fabric. Directors of the Company are reported as qualified, experienced and
resourceful businessmen. Payments are usually correct and as per commitments.
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.53.98 |
|
|
1 |
Rs.83.72 |
|
Euro |
1 |
Rs.72.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.