|
Report Date : |
22.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
DIN TEXTILE MILLS LIMITED |
|
|
|
|
Registered Office : |
Din House, 35-A/1, Lalazar Area, Opp. Beach
Luxury Hotel, Karachi |
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|
|
|
Country : |
Pakistan |
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|
|
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Date of Incorporation : |
13.06.1988 |
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|
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Com. Reg. No.: |
0018066 |
|
|
|
|
Legal Form : |
limited
by shares |
|
|
|
|
Line of Business : |
The principal business of the company is
to manufacture and sale of yarn |
|
|
|
|
No. of Employees : |
2,480 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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 |
DIN TEXTILE MILLS
LIMITED
|
Registered
Address |
|
Din House, 35-A/1,
Lalazar Area, Opp. Beach Luxury Hotel, Karachi, Pakistan |
|
Tel # |
92 (21) 35610001, 3 |
|
Fax # |
92 (21) 35610009, 35610455 |
|
Website |
|
|
Email |
|
Nature of
Business |
The principal
business of the company is to manufacture and sale of yarn |
|
Year Established |
1988 |
|
Registration # |
0018066 |
|
(1) Unit-I and
II: Kot Akbar Khan, 70 Km Multan Road, Tehsil Pattoki, District Kasur,
Punjab, Pakistan. (2) Unit-III:
Revenue Estate, Bhai Kot, Tablighi Chowk, Raiwind Road, Tehsil and District,
Lahore, Punjab, Pakistan. (3) Unit-IV: 48 Km Multan Road, Bhai Pheru, District Kasur, Punjab,
Pakistan. |
Address
|
Din House, 16-M Model Town Extension,
Lahore, Pakistan |
|
Tel
# |
92 (42) 35168201, 3 |
|
Fax
# |
92 (42) 35168206 |
|
Mushtaq & Co. (Chartered Accountants) |
|
The company is limited by shares, incorporated in
Pakistan on June 13, 1988 and is quoted on stock exchanges at Karachi and
Lahore |
|
Names |
Designation |
|
Mr. Shaikh Mohammad Muneer Mr. Shaikh Mohammad Pervez Mr. Shaikh Muhammad Tanveer Mr. Shahzad Naseer Mr. S. M. Naveed Mr. Faisal Jawed Mr. Farhad Shaikh Mohammad |
Chairman / Chief Executive Director Director Director Director Director Director |
|
Categories |
Percentage
(%) |
|
Individuals Investment Companies Joint Stock Companies Directors, Chief Executive & their
spouse and minor children Executive NIT / ICP Associated Company Banks, DFIs, Insurnace Companies, Modarbas
& Mutual Funds Foreign Investors |
38.43 0.01 2.93 50.56 --- 1.62 0.03 5.96 0.45 |
(1) Din Leather Private Limited, Pakistan.
(2)
Din Parekh Chemicals (Pvt.) Limited, Pakistan.
(3)
Din Power Limited, Pakistan.
The principal business of the company is to
manufacture and sale of yarn
2,480
|
Years |
In
Pak Rupees |
|
2011 2012 |
7,574,654,189/- 7,358,488,625/- |
It is difficult to describe precisely the
production capacity in textile industry since it fluctuates widely depending on
various factors such as count of yarn spun, raw material used, spindle speed and
twist. It would also vary according to the pattern of production adopted in a
particular year.
2012 2011
Total number of
spindles installed 80,569 79,008
Total number of
spindles worked 77,587 76,973
Number of shifts
per day 3 3
Installed capacity
of yarn converted into 20/s count-Kgs 26,718,219 24,499,564
Actual production
of yarn converted into 20/s count-Kgs 21,943,754 21,882,246
Note :
Actual production
is lower than capacity due to the manufacturing of specialized Mélange yarn and
periodic repair and maintenance.
|
Mainly to Korea, Hong Kong, China, Taiwan, and Turkey. |
|
Various Local
& International. |
(1) Allied Bank Ltd, Pakistan.
(2) Barclays Bank PLC, Pakistan.
(3) Dubai Islamic Bank Pakistan Ltd, Pakistan.
(4) Faysal Bank Ltd, Pakistan.
(5) Habib Bank Ltd, Pakistan.
(6) Habib Metropolitan Bank Ltd, Pakistan.
(7) MCB Bank Ltd, Pakistan.
(8) Meezan Bank Ltd, Pakistan.
(9) National Bank of Pakistan, Pakistan.
(10) Standard Chartered Bank, Pakistan.
(11) The Bank of Punjab, Pakistan.
Sound
From the day of inception, Din Textile has been constantly striving to
achieve excellence and generate highest value for all of its stakeholders.
Today Din Textile holds an unchallenged position at forefront of industry,
within the country and overseas for its groundbreaking developments and
innovative products line, Din Textile has gained immense trust for delivering
superior quality products for exceeding the customer expectations. This is
a testimony to Din's unwavering
commitment to total satisfaction of its customers. Under the dynamic leadership
of the Group and strong Human Resource, Din Textile Mills Ltd. was founded in
1987 and in a very short time become an icon for the spinning industry in
Pakistan. With four state-of-the-art spinning units and 1 dyeing unit located
at Chunian and Lahore having annual production capacity of yarn 26.72 million
Kgs. and dyeing of Fiber and Yarn 2.8 million Kgs.With an annual turnover of
Rs. 7.358 billion, today Din Textile Mills Ltd. employs over 2,480 employees.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs.
99.20 |
|
UK Pound |
1 |
Rs.
152.00 |
|
Euro |
1 |
Rs.
133.50 |
Din Group of Companies is engaged in diversified
activities which includes Textiles, Fuel & Energy, Chemicals, Leather, Garments
etc. Group is well known and directors are resourceful and experienced
businessmen. Subject is a well-established company enjoying satisfactory share
of its market products. 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.54.28 |
|
|
1 |
Rs.82.65 |
|
Euro |
1 |
Rs.70.22 |
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.