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Report Date : |
29.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
GADOON TEXTILE
MILLS LIMITED |
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|
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Registered Office : |
6-A, Muhammad Ali Housing Society, Abdul Aziz Haji Hashim Tabba
Street, Karachi-75350 |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2013 |
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Year of Establishment : |
1988 |
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Com. Reg. No.: |
0017553 |
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|
|
Legal Form : |
Public Limited Company |
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|
|
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Line of Business : |
Engaged in manufacture & sale of Yarn |
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|
No. of Employees : |
700 |
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 |
GADOON TEXTILE
MILLS LIMITED
Registered Address
6-A, Muhammad Ali Housing Society, Abdul Aziz
Haji Hashim Tabba Street, Karachi-75350, Pakistan
Tel # 92 (21) 35205479, 35205480
Fax # 92 (21) 34382436
|
a. |
Nature of Business |
Engaged in manufacture & sale of Yarn |
|
b. |
Year Established |
1988 |
|
c. |
Registration # |
0017553 |
(1) 200-201, Gadoon Amazai Industrial Estate, District
Swabi, Khyber Pakhtunkhwa, Pakistan.
(2) 57 K.M., on Super Highway,
near Karachi, Pakistan.
|
M. Yousuf Adil Saleem & Co. (Chartered Accountants) |
Legal Status
|
Gadoon Textile Mills Limited is a public limited company incorporated in
Pakistan and is quoted on Karachi, Lahore and Islamabad Stock Exchanges of
Pakistan |
|
Names |
Designation |
|
Mr. Muhammad Yunus Tabba Mr. Muhammad Sohail Tabba Mr. Muhammad Ali Tabba Mr. Javed Yunus Tabba Mrs. Rahila Aleem Mrs. Marium Tabba Khan Mr. Moin M. Fudda |
Chairman Chief Executive Director Director Director Director Director |
|
Categories
|
Percentage (%) |
|
Directors, Chief Executive Officer, and their spouse and minor
children Associated Companies, Undertakings and related parties NIT & ICP Banks Development Financial Institutions,
Non Banking Financial Institutions Insurance Companies Modarbas & Mutual Funds General Public Local Foreign Others |
35.81 --- 0.14 0.63 4.67 1.49 30.81 0.68 25.77 |
|
(1) Lucky Cement
Limited, Pakistan. (2) Fazal Textile Mills Limited, Pakistan. (3) Lucky Energy (Pvt) Limited, Pakistan. (4) Lucky Textile Mills, Pakistan. (5) Yunus Textile (Pvt) Limited, Pakistan. (6) Lucky Knits (Pvt) Limited, Pakistan. (7) Aziz Tabba Foundation, Pakistan. |
Engaged in manufacture & sale of Yarn
700
2013
2012
Spindles installed (numbers) 242,528 232,648
Number of shifts
worked per day 3 3
Number of days worked 365 365
Number of shifts worked 1,098 1,098
Average number of
spindles shift worked 260,249,216 228,695,832
Installed capacity
after conversion into
20’s
(Kgs) 98,581,165 86,628,894
Actual capacity after
conversion into
20/s (Kgs) 92,511,513 57,120,784
Actual production (Kgs) 54,563,952 43,431,428
It is
difficult to describe precisely the production capacity in the textile industry
since it fluctuates widely depending on various factors such as count of yarn
spun, spindles speed, twist per inch, raw material used, etc.
Annual Sales Volume
|
Years |
In Pak Rupees |
|
2012 2013 |
13,570,317,000/- 18,673,753,000/- |
|
Various local & international |
|
(1) Allied Bank Limited,
Pakistan. (2) Bank Al-Falah Limited,
Pakistan. (3) Bank Al-Habib Limited, Pakistan. (4) Bank Islami Pakistan
Limited, Pakistan. (5) Barclays Bank PLC,
Pakistan. (6) Citibank N.A. Pakistan. (7) Dubai Islamic Bank Pakistan
Limited, Pakistan. (8) Faysal Bank Limited,
Pakistan. (9) Habib Bank Limited,
Pakistan. (10) Habib Metropolitan Bank
Limited, Pakistan. (11) HSBC Bank Middle East
Limited, Pakistan. (12) Meezan Bank Limited,
Pakistan. (13) National Bank of Pakistan. (14) Standard Chartered Bank
Pakistan Limited, Pakistan. (15) The Bank of Punjab,
Pakistan. (16) United Bank Limited,
Pakistan. |
Financial Performance
Sales amounted to Rs. 18,674
million for the year under review as compared to Rs. 13,570 million in the
corresponding period last year. The amount of turnover is the highest ever in the
history of the Company, mainly attributable to the commercial operation of the
Karachi Project. The Gross Profit of Rs. 2,267 million represents hefty growth
of 96.86 per cent over the earlier year’s GP of Rs. 1,152 million. The
substantial rise in GP is attributable to sustainable demand of yarn,
competitive position of your Company in the yarn market, both at home and
abroad, and availability of lint cotton at reasonable prices. The Finance Cost
registered rise of 46.84% increase to Rs. 434 million over previous year of Rs.
296 million due to enhanced borrowings to meet working capital requirements for
production, capital expenditure, extended period of credit to fetch export
orders and higher borrowings in local currencies on KIBOR benchmark.
GTML will continue to explore all
possible technological areas to maximize benefits for our businesses. We look
for expansion in our in-house developed ERP project, our team will explore the
possibilities of giving platform where management can utilize IT for their
strategic decision.
Karachi Chamber of Commerce & Industry.(LCCI)
All Pakistan Textile Mills Association.(APTMA)
Federation Pakistan Chamber of Commerce & Industry.(FPCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 109.15 |
|
UK Pound |
1 |
Rs. 175.45 |
|
Euro |
1 |
Rs. 146.75 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.62.38 |
|
UK Pound |
1 |
Rs.101.80 |
|
Euro |
1 |
Rs.84.75 |
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 |
|
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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.