MIRA INFORM REPORT

Report Date :

05.01.2013

IDENTIFICATION DETAILS

Name :	A L TEXTILES (PVT) LIMITED

Registered Office :	130 - Industrial Area, Kot Lakhpat, Lahore,

Country :	Pakistan

Year of Establishment :	2002

Com. Reg. No.:	0044447

Legal Form :	Private Limited Company

Line of Business :	Engaged in Manufacture, Marketing & Export of Yarn

No. of Employees :	320

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
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 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Pakistan

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

COMPANY Name

A L TEXTILES (PVT) LIMITED

Full Address

Registered Address & Mill

130 - Industrial Area, Kot Lakhpat, Lahore, Pakistan

Tel #	92 (42) 35140591, 35140592
Fax #	92 (42) 35140593
Email	altextiles@brain.net.pk

Short Description Of Business

a.	Nature of Business	Engaged in Manufacture, Marketing & Export of Yarn
b.	Year Established	2002
c.	Registration #	0044447

Branches

In Lahore at present

Auditors

Tariq Ayub Anwar & Company

(Chartered Accountants)

1^st Floor, 84-B-1, Ghalib Road, Gulberg III, Lahore, Pakistan

Legal Status

Subject Company was established as a Private Limited Company in 2002

Authorised Capital	Rs. 305,000,000/- divided into 30,500,000 shares of Rs. 10/- each
Issued & Paid up Capital	Rs. 204,300,000/- divided into 20,430,000 shares of Rs. 10/- each

Details of Directors

Names

Nationality

Address

Occupation

Designation

Mr. Abdul Latif Chaudhry

Mr. Atif Latif Chaudhry

Mr. Omar Latif Chaudhry

Pakistani

130 - Industrial Area, Kot Lakhpat, Lahore

Business

Chief Executive

Director

Shareholders

Names

No. of Shares

Mr. Abdul Latif Chaudhry

Mr. Atif Latif Chaudhry

Mr. Omar Latif Chaudhry

Mrs. Neelofar Latif

8,429,800

4,000,000

4,000,200

Associates

A. Subsidiary

None

B. Associated Companies

(1) Fine Gas Company (Pvt) Limited, Pakistan.

(2) Fine Crystoplast (Pvt) Limited, Pakistan.

Business Activities

Subject Company is engaged in manufacture, marketing & export of Yarn.

Its mainly import Textile Raw Materials, Textile Machineries through L/C, T.T. basis.

Its main products are Combed Yarn / Slub Yarn.

It sells its product through cash / credit terms in local markets. Whereas in case of export, payment would be accepted through L/C, D/A basis.

Its main customers are Buying Agencies, Textile Manufacturers, Trading Companies etc.

Subject operates from caption leased factory premises which is located at industrial area of Lahore.

Subject employs about 320 persons in its set up.

Annual Sales Volume

Year	In Pak Rupees
2011	500,000,000/- (Estimated)

Mills Installed

20,160 spindles

Trade Suppliers (Foreign)

Subject mainly import from Companies belongs to China, India, Korea, Hong Kong, Taiwan, Thailand, Indonesia & Japan

Bankers

(1) Habib Bank Limited, Pakistan.

(2) Faysal Bank Limited, Pakistan.

(3) Bank Alfalah Limited, Pakistan.

(4) Standard Chartered Bank, Pakistan.

(5) Soneri Bank Limited, Pakistan.

(6) United Bank Limited, Pakistan.

Memberships

· Lahore Chamber of Commerce & Industry.(LCCI)

· All Pakistan Textile Mills Association.(APTMA)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 97.50
UK Pound	1	Rs. 158.50
Euro	1	Rs. 129.00

Comments

Subject Company was established in 2002 and is engaged in manufacture, marketing & export of yarn. Market reputation is good. 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.54.84
UK Pound	1	Rs.88.16
Euro	1	Rs.71.54

INFORMATION DETAILS

Report Prepared by :

NLM

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%)

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