MIRA INFORM REPORT

 

 

Report Date :

07.03.2013

 

IDENTIFICATION DETAILS

 

Name :

INDUS DYEING & MANUFACTURING COMPANY LIMITED

 

 

Registered Office :

5th Floor, Office # 508, Beaumont Plaza, Beaumont Road, Civil Lines Quarters, Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

1957

 

 

Com. Reg. No.:

0000885

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Manufacture & sale of Yarn & Terry Towel

 

 

No. of Employees :

680

 

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

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

 

 


 

                                   

Company name

 

INDUS DYEING & MANUFACTURING COMPANY LIMITED

 

Full Address       

 

Registered Address

5th Floor, Office # 508, Beaumont Plaza, Beaumont Road, Civil Lines Quarters, Karachi, Pakistan

                       

Tel #

92 (21) 35693641 - 60 (19 Lines)

Fax #

92 (21) 35693593, 35693594

 

Short Description Of Business

 

a.

Nature of Business           

Principal activity of the Company is to manufacture & sale of Yarn & Terry Towel

b.

Year Established

1957

c.

Registration #

0000885

 

Branches

 

Address

Ground Floor, K.D.L.B. Bldg., 59-West Wharf Road, Karachi, Pakistan

Tel #

92 (21) 32310758, 32310751

Fax #

92 (21) 32313814, 32310760

 

Factories Locations

 

(1) P 1, S.I.T.E., Hyderabad, Pakistan.

     

(2) Muzaffergarh, Bagga Sher, District Multan, Pakistan.

 

(3) Plot No. 3 & 7, Sector-25, Korangi Industrial Area, Korangi, Karachi, Pakistan.

 

 (4) 2 KM Manga Raiwand Road, Near Nafees Legler, District Kasur, Punjab, Pakistan.

 

Auditors

 

M/s Yousuf Adil Saleem & Co.

(Chartered Accountants)

 

Legal Status

 

The Company was incorporated in Pakistan as a public limited company and is listed at Karachi Stock Exchange of Pakistan

 

Details of Management

 

Names

Designation

Mr. Mian Mohammad Ahmed

 

Mr. Shahzad Ahmed

 

Mr. Mian Riaz Ahmed

 

Mr. Naveed Ahmed

 

Mr. Imran Ahmed

 

Mr. Irfan Ahmed

 

Mr. Kashif Riaz

 

Mr. Shafqat Masood

 

Mr. Farooq Hassan

 

Mr. Shahwaiz Ahmad

Chairman

 

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Shareholders                

 

Categories

    Percentage (%)

Individuals

 

Joint Stock Companies

 

Financial Institutions

 

Insurance Companies

 

Investment Companies

 

Directors, DEO & their Spouse & minor childrens

1.27

 

2.37

 

2.59

 

2.47

 

3.07

 

 

88.22

 

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

           None                                            

           

B.         Associated Companies

 

(1) Yusuf Textile Mills Limited, Pakistan.

(2) Sunrays Textile Mills Limited, Pakistan.

(3) Indus Home Limited, Pakistan.

 

Products

 

Principal activity of the Company is to manufacture & sale of Yarn & Terry Towel

           

Number of Employees

 

680

 

Plant Capacity & Production

           

Description

2012

2011

Spinning Unit

 

Total number of spindles installed

 

Total number of spindles worked per annum (average)

 

Number of shifts worked per day

 

Installed capacity of yarn converted into 20 counts (Lbs) based on 365 Days

 

 

Actual production of the year after conversion into 20 counts (Lbs)

 

 

Ginning Unit

 

Installed capacity to produce cotton bales

 

Actual production of cotton bales

 

Number of shifts

 

Capacity attained in (%)

 

 

 

139,237

 

 

138,172

 

3

 

 

 

103,342,087

 

 

 

 

88,750,231

 

 

 

 

 

135,000

 

 

50,124

 

2

 

37.13%

 

 

 

130,224

 

 

130,166

 

3

 

 

 

98,306,122

 

 

 

 

89,208,438

 

 

 

 

 

135,000

 

 

25,822

 

2

 

19.13%

 

Annual Sales Volume

 

Year

In Pak Rupees

2012

15,087,138,000/-

 

Trade Suppliers (Foreign)

 

Various International belongs to China, European Countries, Korea, India, Taiwan, Japan & U.S.A.

 

Customers

 

Mainly Buying Agencies, Distribution Companies, Private Companies etc

 

Bankers

 

(1)     MCB Bank Limited, Pakistan.

(2)     Habib Bank Limited, Pakistan.

(3)     United Bank Limited, Pakistan.

(4)     National Bank of Pakistan.

(5)     NIB Bank Limited, Pakistan.

(6)     Habib Metropolitan Bank Limited, Pakistan.

 

 

Future Outlook

 

In order to fully utilize the business potential we are continuing BMR plan to get optimum results. We hope to earn good profit in next year, as the prices of raw cotton and yarn are stable and there is a good margin.

 

Memberships

 

·         Karachi Chamber of Commerce & Industry.

·         All Pakistan Textile Mills Association.

 

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 99.05

UK Pound

1

          Rs. 153.40

Euro

1

          Rs. 132.80

 

Comments

 

Indus Group of Companies enjoys good reputation in the Pakistani Business Circle. Directors are reported as qualified, experienced and resourceful businessmen. Payments are usually correct and as per commitments. The Company can be considered good for normal business dealings at usual trade terms and conditions. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.70

UK Pound

1

Rs.82.78

Euro

1

Rs.71.42

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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