MIRA INFORM REPORT

Report Date :

09.01.2013

IDENTIFICATION DETAILS

Name :	AL-KARAM TEXTILE MILLS (PVT) LIMITED
Registered Office :	3rd Floor, Karachi Dock Labour Board Building, 58 West Wharf Road, Karachi
Country :	Pakistan
Date of Incorporation :	1986
Com. Reg. No.:	0013997
Legal Form :	Private Limited Company
Line of Business :	Manufacture & Export of Yarn, Grey Fabric, Dyed Fabric, Yarn Dyed Fabric, Knit, Fashion Garments, Home Textile Products
No. of Employees :	More than 1,126 persons

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 :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES:

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ECGC Country Risk Classification List – June 30^th, 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

Company name

AL-KARAM TEXTILE MILLS (PVT) LIMITED

Full Address

Registered Address

3^rd Floor, Karachi Dock Labour Board Building, 58 West Wharf Road, Karachi, Pakistan

Tel #	92 (21) 32313036, 32313031
Fax #	92 (21) 32310625
Email	headoffice@alkaram.com

Short Description Of Business

a.	Nature of Business	Manufacture & Export of Yarn, Grey Fabric, Dyed Fabric, Yarn Dyed Fabric, Knit, Fashion Garments, Home Textile Products
b.	Year Established	1986
c.	Registration #	0013997

Factory Location

HT-11, Landhi Industrial Area,
75150 Karachi, Pakistan

Auditors

M/s Hyder Bhimji & Co.

(Chartered Accountants)

2^nd Floor, Standard Insurance House, I.I. Chundrigar Road, Karachi, Pakistan

Legal Status

Subject Company was established as a Private Limited Company in 1986

6.	Authorized Capital	Rs. 250,000,000/- divided into 25,000,000 shares of Rs. 10/- each
	Issued & Paid up Capital	Rs. 180,000,000/- divided into 18,000,000 shares of Rs. 10/- each

Details of Directors

Names	Nationality	Address	Occupation	Designation
Mr. Anwar Haji Karim Mr. Ebrahim H. Karim Mr. Haroon Haji Karim Mr. Umer Haji Karim Mr. Yaqoob Haji Karim Mr. Iqbal Ebrahim	Pakistani Pakistani Pakistani Pakistani Pakistani Pakistani	H-79/1, Street # 9, Block IV, D.H.A., Karachi 89/1, Khayaban-e-Shamsheer, D.H.A., Phase VI, Karachi 89/1, Khayaban-e-Shamsheer, D.H.A., Phase VI, Karachi 89/1, Khayaban-e-Shamsheer, D.H.A., Phase VI, Karachi 89/1, Khayaban-e-Shamsheer, D.H.A., Phase VI, Karachi 89/1, Khayaban-e-Shamsheer, D.H.A., Phase VI, Karachi	Business Business Business Business Business Business	Chief Executive Director Director Director Director Director

Shareholders

Names

No. of Shares

Mr. Ebrahim Haji Karim Mrs. Hajra Bai Haji Ebrahim Mr. Ahmed Haji Ebrahim Mr. Mahmood Ahmed Mr. Iqbal Haji Ebrahim Mrs. Afshin Iqbal Mr. Rafiq Haji Ebrahim Mrs. Zainab Rafiq Mr. Ismail Haji Ebrahim Mr. A. Karim Ismail Mrs. Zeenat Ebrahim Mrs. Khairoon Bai H. Haroon Mr. Sajid Haji Haroon Mrs. Saira Haji Haroon Mrs. Shahnaz Haji Haroon Mr. Salik Sajid Mr. Safi Sajid Mrs. Fatima Sajid Mr. Umer Haji Karim Mrs. Ameena Haji Umer Mr. Afzal Umer Mr. Abib Umer Mrs. Akila Umer Mrs. Azila Umer Mrs. Anisa Umer Mr. Ajmal Afzal Mr. Maqsood Haji Razzak Mr. Mubashir Maqsood Mr. Mujib Haji Razzak Mrs. Mehfooza Haji Razzak Mr. Mumtaz Haji Razzak Mrs. Zahida Mujib Mrs. Yasmin Haji Razzak Mrs. Mehzabeen Haji Razzak Mr. Anwar Haji Karim Mr. Fahad Anwar Mr. Fayaz Anwar Mrs. Fouzia Anwar Mrs. Feroza Anwar Mrs. Zeenat Anwar Mr. Yakoob Haji Karim Mrs. Shahida Yakoob Mr. Anis Yakoob Mr. Noman Yakoob Mrs. Farah Yakoob Mrs. Sara Yakoob Mrs. Sana Yakoob

43,200 255,600 333,335 270,000 333,335 270,000 333,335 270,000 333,335 270,000 287,875 382,140 772,497 649,108 656,248 216,000 216,000 108,000 72,000 295,920 252,000 752,040 375,840 375,840 376,318 500,040 449,820 299,880 449,774 375,210 375,210 300,170 374,731 375,210 216,000 799,920 799,920 428,400 428,400 327,355 211,320 211,320 736,344 736,530 368,280 368,280 367,920

Associates

Subsidiary

None

Associated Companies

Sattar (Pvt) Limited.

Dhabeji Salt Works Pvt Ltd.

Farooqi Food Industries.

Gul Agencies Pvt Ltd.

Haji Karim Haji Mohammad.

Iqbal Textile Mills Ltd.

Imran Crown Cork Pvt Ltd.

Muslim Cotton Mills Ltd.

Orient Textile Mills Ltd.

Pakistan Dairy Products Ltd.

Zaman Textile Mills Ltd.

Thermo King Pvt Ltd.

Business Activities

Subject Company is engaged in manufacture & export of Yarn, Grey Fabric, Dyed Fabric, Yarn Dyed Fabric, Knit, Fashion Garments, Home Textile Products.

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

Its brand names are SHABNAM, CHANCELLOR, IGLOO, SUPER COT AL-KARAM.

It sells its product through Cash, L/C, T.T. basis (In case of Export).

Its main customers are Individuals, Reputable Companies, Worldwide.

Subject operates from caption leased office premises measuring 2,200 Sq.ft. which is situated in commercial area.

Subject employs more than 1,126 persons in its set up.

Annual Sales Volume

Year	In Pak Rupees
2011	5,000,000,000/- (Estimated)

Production Capacity

Daily 63 Tons Of Cotton & Blended Yarn, 17534 Fabric, 50000 Mt Dyeing, 60000 Mt Printing,116666 Mt Fi

Bankers

(1) Habib Bank Limited, Pakistan.

(2) Habib Metropolitan Bank Limited, Pakistan.

(3) Standard Chartered Bank, Pakistan.

(4) Faysal Bank Limited, Pakistan.

(5) Askari Bank Limited, Pakistan.

(6) Soneri Bank Limited, Pakistan.

(7) KASB Bank Limited, Pakistan.

Memberships

Karachi Chamber of Commerce & Industry.(KCCI)

All Pakistan Textile Mills Association.(APTMA)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 98.20
UK Pound	1	Rs. 157.50
Euro	1	Rs. 127.00

Comments

Subject Company was established in 1986 and is engaged in manufacture & export of Yarn, Grey Fabric, Dyed Fabric, Yarn Dyed Fabric, Knit, Fashion Garments, Home Textile Products. Market reputation is satisfactory. 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.55.33
UK Pound	1	Rs.89.05
Euro	1	Rs.72.57

INFORMATION DETAILS

Report Prepared by :

SDA

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.