MIRA INFORM REPORT

Report Date :

19.01.2013

IDENTIFICATION DETAILS

Name :	FATIMA ENTERPRISES LIMITED

Registered Office :	487-A, Vehari Road, Mumtazabad, Multan

Country :	Pakistan

Financials (as on) :	30.06.2010

Year of Establishment :	1976

Com. Reg. No.:	0005519

Legal Form :	Karachi Stock Exchange of Pakistan

Line of Business :	Subjects engaged in the business of Cotton Ginning, Extraction of Seed Oil, manufacture & sale of Vegetable Ghee, Cooking Oil, Laundry Soap and woollen, cotton, Synthetic, Yarn, Fabrics

No. of Employees :	2,795

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 :	Satisfactory
Payment Behaviour :	No Complaint
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

FATIMA ENTERPRISES LIMITED

Full Address

Registered Address

487-A, Vehari Road, Mumtazabad, Multan, Pakistan

Tel #

92 (61) 6761066, 6528145, 6528141

Fax #

92 (61) 6528092

Email

drnafis@hotmail.com

naffis@brain.net.pk

Short Description Of Business

a.	Nature of Business	Principally engaged in the business of Cotton Ginning, Extraction of Seed Oil, manufacture & sale of Vegetable Ghee, Cooking Oil, Laundry Soap and woollen, cotton, Synthetic, Yarn, Fabrics
b.	Year Established	1976
c.	Registration #	0005519

Branches

78/78-A, Kareem Shopping Centre, Bohra

Street Cantt, Multan 60000,

Pakistan

Auditors

Ahmed Mushir & Co.

(Chartered Accountants)

Legal Status

Fatima Enterprises Limited was incorporated in Pakistan in 1976 and is quoted on the Karachi Stock Exchange of Pakistan

Details of Management

Names

Designation

Mr. Sheikh Nishat Ahmad

Mr. Sheikh Zafar Iqbal

Mr. Ashar Fazal

Mr. Muhammad Islam

Mr. Muhammad Saeed Khan

Mr. M. Ibad Raja

Mr. S. Arshad Hussain Shah

Chief Executive

Director

Categories of Shareholders

Shareholders

Percentage (%)

Associated Companies, Undertakings & related parties

NIT & ICP

Directors, CEO, their spouses and minor children

Banks, Development Finance Institutions, Non Banking Finance Institutions, Insurance Companies, Modarabas & Mutual Funds

Joint Stock Companies

Individuals

61.30

9.05

11.06

0.01

0.13

18.45

Associated Companies

(1) Ahmed Fine Textiles Ltd, Pakistan.

Business Activities

Principally engaged in the business of Cotton Ginning, Extraction of Seed Oil, manufacture & sale of Vegetable Ghee, Cooking Oil, Laundry Soap and woollen, cotton, Synthetic, Yarn, Fabrics

Number of Employees

2,795

Plant Capacity & Production

June 30 June 30

2010 2009

Cotton Spinning Units

Number of spindles installed

- Muzaffargarah Numbers 42,120 42,120

- Okara Numbers 28,848 28,848

Number of spindles worked 49,912,927 55,800,195

Installed capacity converted at 20’s

Count Kgs. 19,590,010 20,015,668

Production of yarn:

Actual Kgs. 15,060,654 15,835,278

Converted at 20’s count Kgs. 14,220,841 14,651,983

Number of shifts worked - Textile unit

Muzaffargarah 1,092 1,092

Okara 1,092 1,092

Weaving unit

Number of looms installed: Numbers 247 247

Installed capacity Meters 36,560,000 38,602,478

Actual production Meters 33,843,069 37,070,908

Actual production

Cotton Ginning Factories (120 days) Bales 4,074 12,633 Oil Mills (120 days) M.Tons 938 3,400

Vegetable Ghee Units

Owned processing M.Tons 1,286 15,020

Processing at leased plant M.Tons 0 0

Woollen mills Kgs. 0 0

Solvent Extraction Plant Owned processing M.Tons 23,100 17,637

Processing at leased plant M.Tons 16,850 5,176

Note:

Production of cotton ginning factories, oil mills and woollen unit was low due to stiff market competition.

Annual Sales Turnover

Years

In Pak Rupees

2009

2010

7,654,539,000/-

7,894,355,000/-

Bankers

(1) Allied Bank Limited, Pakistan.

(2) Faysal Bank Limited, Pakistan.

(3) Habib Bank Limited, Pakistan.

(4) MCB Bank Limited, Pakistan.

(5) Soneri Bank Limited, Pakistan.

(6) The Bank of Punjab, Pakistan.

(7) United Bank Limited, Pakistan.

(8) Bank Islami Pakistan Limited, Pakistan.

(9) Habib Metropolitan Bank Limited, Pakistan

Future Outlook

Future outlooks are at uncertain due to challenges of power, gas, high rates of markup, increase in wages, & other operational expenses. Some units of the company generate power required for operation through gas fired generators. In the light of above circumstances the profit margins for the company may remain under pressure, however still remain cautiously optimistic about achieving better results

Memberships

· MCCI

· FPCCI

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 98.60
UK Pound	1	Rs. 157.10
Euro	1	Rs. 130.70

Comments

Subject Company enjoys good reputation in Pakistan. Directors of the Company are resourceful and experienced businessmen. Payments are reported as correct. 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.53.94
UK Pound	1	Rs.86.24
Euro	1	Rs.72.20

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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