|
Report Date : |
23.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
LEATHER FIELD (PVT) LTD (LF) |
|
|
|
|
Registered Office : |
Cheema Square, Capital Road, Sialkot. |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
30.06.2012 |
|
|
|
|
Date of Incorporation : |
24.03.1990 |
|
|
|
|
Com. Reg. No.: |
0021362 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and Exporter of Leather and Leather Garments |
|
|
|
|
No. of Employees : |
3000 |
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
under 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 almost 12% for 2011, before declining to 10% in 2012. 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 fiscal year 2012, 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 about 3% per year from
2008 to 2012. 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 and rapidly urbanizing population,
more than half of which is under 22. Other long term challenges include
expanding investment in education and healthcare, adapting to the effects of
climate change and natural disasters, and reducing dependence on foreign
donors.
|
Source
: CIA |
LEATHER FIELD (PVT) LTD (LF)
|
Business Name |
LEATHER FIELD PVT LTD. (LF) |
|
Address |
Head Office/
Registered Office: Cheema Square, Capital Road, Sialkot. Gloves &
Bags Division: Defense Road, Sialkot Tannery
Division: 12 Kilometre, Wazirabad Road near Sahowala Stand, Sialkot |
|
Telephone |
(+92) (52) 3556272-8 (7 Lines) |
|
Fax |
(+92) (52) 3551942-64, 3553564 |
|
Email |
|
|
Website |
|
|
Business activities |
Manufacturer and Exporter of Leather and Leather Garments |
Registry Details
|
CRO Registration Number |
0021362 |
|
Date of Registration |
March 24, 1990 |
Other registry
& certification details:
|
Current Legal Form |
Private Limited Company |
||
|
National Tax Registration Number |
0679465-3 |
||
|
Date of Registration |
25-Nov-1995 |
||
|
GST Registration Number |
0990999905246 |
||
|
Date of Registration & Expiry |
10-Jul-1995 |
||
|
Chamber of Commerce & Industry |
Sialkot Chamber of Commerce and Industry |
||
|
Date of Registration & Expiry |
Undetermined |
||
|
Certificates |
Undetermined |
||
|
Date of Registration & Expiry |
Undetermined |
Capital
|
Type |
No. of Shares |
Par Value |
Total Value |
|
Authorized |
1,600,000 |
100 |
160,000,000 |
|
Issued, Subscribed & Paid-Up |
30,000 |
100 |
3,000,000 |
History
|
Who started |
Mr. Muhammad Ajmal Cheema |
|
When started |
March 24, 1990 |
|
Change in management |
No Change |
|
Year of change |
N/A |
|
Change in legal status |
No Change |
|
Year of change |
N/A |
|
Change in business name |
No Change |
|
Year of change |
N/A |
|
Name |
Number of Shares |
Nationality |
Appointment Date
(Last) |
|
Muhammad Ajmal Cheema |
9,800 |
Pakistani |
31/12/2008 |
|
Qaiser Mehmood Cheema |
6,800 |
Pakistani |
31/12/2008 |
|
Muhammad Akmal Cheema |
6,800 |
Pakistani |
31/12/2008 |
|
Mushtaq Ahmad Cheema |
3,600 |
Pakistani |
31/12/2008 |
|
Amat-ul-Aleem Mushtaq |
1,800 |
Pakistani |
31/12/2008 |
|
Mst. Musarat Ajmal |
1,200 |
Pakistani |
31/12/2008 |
|
Total |
30,000 |
|
|
|
Name |
Position in organization |
Qualification |
Years in
employment |
|
Mr. Muhammad Ajmal Cheema |
CEO |
Undetermined |
Undetermined |
|
Mr. Farhat Abbas |
Finance Manager |
Undetermined |
Undetermined |
|
Mr. Mudassar Mirza |
Company Secretary |
Undetermined |
Undetermined |
|
Statutory offices |
Name of service
provider |
|
Statutory Auditors |
F.R.A.N.T.S & Company Chartered Accountants |
|
Legal Advisory Services |
Mr. Aftab Hussain Nagra Law Associates |
|
Bank name |
Approved financing
limits PKR |
|
Habib Bank Ltd |
1,700,001,000 |
|
United Bank Ltd |
1,400,001,000 |
|
Silk Bank Ltd |
890,001,000 |
|
Faysal Bank Ltd |
615,999,000 |
|
Citi Bank N.A |
519,999,000 |
|
Meezan Bank Ltd |
513,999,000 |
|
United Bank Ltd. |
55,000,000 |
|
HBL Bank Ltd |
Depository relation |
|
Faysal Bank Ltd |
Depository relation |
|
Meezan Bank Ltd |
Depository relation |
|
UBL bank Ltd |
Depository relation |
|
Silk Bank Ltd |
Depository relation |
|
Citi Bank |
Depository relation |
|
National Bank of Pakistan |
Depository relation |
The core business focus of LF is Manufacturing and Export of Leather
& Leather Garments.
Purchases (Incl.
Imports)
|
Imports from |
None |
|
Importing terms |
N/A |
|
Local |
Karachi |
|
Local buying terms |
Cash and Credit of 30 days. |
Sales (Incl.
Exports)
|
Exports to |
Europe |
|
Exporting terms |
L/C |
|
Local |
None |
|
Local selling terms |
N/A |
|
Nature of
employment |
Current Year |
Previous Year |
|
All staff |
3000 |
Undetermined |
|
Total |
3000 |
|
|
Head office/Factory Owned / Rented Area (approx) |
Cheema Square, Capital Road, Sialkot. Undetermined Undetermined |
|
Gloves and Bags Division Owned Area (approx) |
Defence Road, Sialkot Undetermined Undetermined |
|
Tanning Unit Address Owned / Rented Area (approx) |
Wazirabad road, Sahowala, District Sialkot. Undetermined Undetermined |
The primary focus of the concern is
manufacturing and export of leather goods, the feedback from the customers/
vendors and related concerns were found Satisfactory and no disputes or
untoward events including complaints about quality of products were reported/
identified during inquiry.
|
Business Name |
City |
Line of Business |
Percentile of
Shareholding |
|
None reported by the contact person |
|||
|
Particulars |
30-Jun-12 |
|
|
- |
|
Current assets |
3,912,210,631 |
|
Current liabilities |
(2,295,057,740) |
|
Working capital |
1,617,152,891 |
|
|
|
|
Non-current assets |
2,424,837,085 |
|
Long term liabilities |
(153,911,449) |
|
Net worth |
3,888,078,527 |
|
|
|
|
Turnover |
3,441,926,663 |
|
Gross Profit |
657,656,680 |
|
EBIT |
284,681,425 |
|
Worker’s Welfare Fund |
(2,540,402) |
|
Profit / (Loss) before tax |
65,760,762 |
|
Provision for taxation |
(34,419,266) |
|
Profit / (Loss) after tax |
31,341,496 |
|
|
|
|
Creditors |
808,791,598 |
|
Debtors |
2,062,756,070 |
|
Cash & bank balances |
7,083,644 |
|
|
|
|
Growth trend |
|
|
Sales growth (%) |
- |
|
Gross profit growth (%) |
- |
|
|
|
|
Solvency |
|
|
Current ratio |
1.70 |
|
Quick ratio |
1.70 |
|
Total liabilities to net worth ratio (%) |
62.99 |
|
|
|
|
Profitability |
|
|
Return on sales (%) |
0.082 |
|
Return on net worth (%) |
0.073 |
|
Contact person |
Mr. Farhat Abbas |
|
Position |
Finance Manager |
|
Comments |
Mr. Farhat Abbas confirmed business operations and shared business
information, including financials. |
|
Analyst’s Observations/ comments |
The Factory was found operational at the time of physical visit. Labor was found working in their respective tasks. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.02 |
|
|
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.84.92 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.