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Report Date : |
21.08.2014 |
IDENTIFICATION DETAILS
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Name : |
NISHAT MILLS LIMITED |
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Registered Office : |
Nishat House, 53
A, |
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Country : |
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|
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Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
1960 |
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Com. Reg. No.: |
0001053 |
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Legal Form : |
Public Limited
Company |
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|
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Line of Business : |
Subject is engaged in the business of textile manufacturing and of spinning,
combing, weaving, bleaching, dyeing, printing, stitching / apparel, buying, selling
and otherwise dealing in yarn, linen, cloth and other goods and fabrics made
from raw cotton, synthetic fibre and cloth and to generate, accumulate,
distribute, supply and sell electricity |
|
|
|
|
No. of Employees |
14,601 |
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 |
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Payment Behaviour : |
No complaints |
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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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Pakistan |
B2 |
B2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 was 6.6% in 2013, 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. 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 following two years, 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 3.5% per year from 2008 to 2013. 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 |
NISHAT MILLS LIMITED
|
Registered Address |
|
Nishat House, 53
A, Lawrence Road, Lahore, Pakistan |
|
Tel # |
92 (42) 36367812,
36367816 |
|
Fax # |
92 (42) 36367414 |
|
a. |
Nature of Business |
The Company is engaged in the business of textile manufacturing and of
spinning, combing, weaving, bleaching, dyeing, printing, stitching / apparel,
buying, selling and otherwise dealing in yarn, linen, cloth and other goods
and fabrics made from raw cotton, synthetic fibre and cloth and to generate,
accumulate, distribute, supply and sell electricity |
|
b. |
Incorporated |
1960 |
|
c. |
Registration No. |
0001053 |
|
Address |
7-Main Gulberg, |
|
Tel # |
92 (42) 35716351,
35716359 |
|
Fax # |
92 (42) 35716349,
50 |
|
Address |
1st
Floor, Karachi Chambers, Hasrat Mohani Road, Karachi, Pakistan |
|
Tel # |
92 (21) 32414721,
722, 723 |
|
Fax # |
92 (21) 32412936 |
(1) Nishatabad,
Faisalabad.(Spinning, Processing, Stitching Units & Power Plant)
(2) 12 KM,
Faisalabad Road, Sheikhupura.(Weaving Units & Power Plants)
(3) 21 Km, Ferozepur
Road, Lahore.(Stitching Unit)
(4) 5 Km, Nishat Avenue Off 22 Km Ferozepur Road, Lahore.
(5) 20 KM,
Sheikhupura Faisalabad Road, Feroze Watwan.(Spinning Unit)
|
Riaz Ahmad &
Company (Chartered Accountants) |
|
Public Limited
Company (Listed at stock exchanges of Pakistan) |
|
Names |
Designation |
|
Mr. Mian Umer Mansha Mr. Mian Hassan Mansha Mr. Khalid Qadeer Qureshi Mr. Muhammad Azam Mr. Syed Zahid Hussain Ms. Nabiha Shahnawaz Cheema Mr. Maqsood Ahmad |
Chairman / Chief
Executive Director Director Director Director Director Director |
|
Categories |
Percentage (%) |
|
Directors, CEO, their spouses and minor children Associated Companies, Undertakings &
related parties NIT & ICP Banks, Development Financial Institutions,
Non Banking Financial Institutions Insurance Companies Modarbas & Mutual Funds General Public Others |
25.22 8.97 8.43 10.17 4.09 5.55 41.31 13.66 |
A. Subsidiary
None
B. Associated
Companies
|
(1) D.G. Khan Cement Limited, Pakistan. (2) Mansha Brothers (Pvt) Limited, Pakistan. (3) Nishat Chunian Limited, Pakistan. (4) Umer Fabrics Limited, Pakistan. (5) MCB Bank Limited, Pakistan. (6) Genertech Pakistan Limited, Pakistan. (7) Nishat Finishing
Mills. (8) Nishat
Capital Management. (9) Trust
Management Services. (10) Chunian
Fibre. (11) Nishat
Europe. (12) Newbery
Mansha. (13) D.G. Khan
Electric Company. (14) Gulf Nishat
Apparel Limited. (New Company) (15) Nishat
Shuaiba Paper Products Co. Limited. (16) Nishat Power
Limited, Pakistan. (17) Nishat USA
Incorporation, U.S.A. (18) Nishat Linen
Trading LLC, U.A.E. (19) Nishat
Hospitality (Pvt) Limited, Pakistan. (20) Nishat Linen
(Pvt) Limited, Pakistan. |
Engaged in the
business of textile manufacturing and of spinning, combing, weaving, bleaching,
dyeing, printing, stitching, buying, selling and otherwise dealing in yarn,
linen, cloth and other goods and fabrics made from raw cotton, synthetic fibre
and cloth, and to generate, accumulate, distribute and supply electricity
14,601
|
Years |
In Pak Rupees |
|
2012 2013 |
44,924,101,000/- 52,426,030,000/- |
|
Description |
2013 (Figures in
Thousand) |
2012 (Figures in
Thousand) |
|
Spinning 100 % plant capacity converted to 20s count
based on 3 shifts per day for 1,095 shifts (30 June 2012: 1,098 shifts)
(Kgs.) Actual production converted to 20s count
based on 3 shifts per day for 1,095 shifts (30 June 2012: 1,098 shifts)
(Kgs.) Weaving 100 % plant capacity at 50 picks based on 3
shifts per day for 1,095 shifts (30 June 2012: 1,098 shifts) (Sq.Mt.) Actual production converted to 50 picks
based on 3 shifts per day for 1,095 shifts (30 June 2012: 1,098 shifts)
(Sq.Mt.) Dyeing and finishing Production capacity for 3 shifts per day
for 1,095 shifts (30th June 2012 : 1,098 shifts) (Mt.) Actual production on 3 shifts per day for
1,095 shifts (30th June 2012 : 1,098 shifts) (Mt.) Power Plant Generation capacity (MWH) Actual generation (MWH) |
66,944 57,823 240,728 231,278 54,000 52,757 469 297 |
67,265 57,868 235,840 226,014 48,000 51,696 488 297 |
Various International belongs to China, Korea, Japan, Singapore, U.K. & European Countries
|
(1) Albaraka Bank (Pakistan) Limited, Pakistan. (2) Allied Bank Limited, Pakistan. (3) Askari Bank Limited, Pakistan. (4) Bank Alfalah Limited, Pakistan. (5) Bank Islami Pakistan Limited, Pakistan. (6) Barclays Bank PLC, Pakistan. (7) Burj Bank Limited, Pakistan. (8) Citibank N.A., Pakistan. (9) Deutsche Bank AG, Pakistan. (10) Dubai Islamic Bank Pakistan Limited, Pakistan. (11) Faysal Bank Limited, Pakistan. (12) Habib Bank Limited, Pakistan. (13) Habib Metropolitan Bank Limited, Pakistan. (14) HSBC Bank Middle East Limited, Pakistan. (15) JS Bank Limited, Pakistan. (16) KASB Bank Limited, Pakistan. (17) Meezan Bank Limited, Pakistan. (18) National Bank of Pakistan. (19) NIB Bank Limited, Pakistan. (20) Samba Bank Limited, Pakistan. (21) Silk Bank Limited, Pakistan. (22) Soneri Bank Limited, Pakistan. (23) Summit Bank Limited, Pakistan. (24) Standard Chartered Bank (Pakistan) Limited, Pakistan. (25) The Bank of Punjab, Pakistan. (26) United Bank Limited, Pakistan. |
We believe that there is only way up from here. We are keeping a
watchful eye on how the events unfold. Our strength lies in our strategic
planning and marketing capabilities along with our vertically integrated
production facilities that can turn raw cotton to a final finished consumer
product which has always attracted customers’ attention all across the world.
Our strategy is to expand and diversify our product range by increasing the
value added products and systems. Enhanced production capacity of apparel
division will be utilized to take full advantage of the growing export demand
for garments. In addition to that, special confection and up-market designer
articles will also be added to our Home Textile product range. In weaving
division, future plans include further replacement of old Airjet looms. Coming
winter season seems very promising as a lot of customers are giving good
forecasts for uncut Corduroy business which is our strong point in this season.
Our early adoption of alternative fuels as well as bold investments to reduce
reliance on expensive fossil fuels has left us even more competitive than
before. One such initiative is of setting up a biomass/coal based power plant
at our production facility in Lahore. We plan to double the production capacity
of this power plant and establish another such plant at our production facility
in Bhikki, Sheikhupura. Utilization of LPG and solar energy to produce SNG and
power respectively is part of our multi-dimensional strategy to tackle the
energy crisis.
Faisalabad Chamber
of Commerce & Industry.(FCCI)
Federation Pakistan
Chamber of Commerce & Industry.(FPCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 99.55 |
|
UK Pound |
1 |
Rs. 167.10 |
|
Euro |
1 |
Rs. 135.70 |
Mansha Group of
Companies enjoys excellent
credibility in Pakistani as well as in abroad. Directors of the Company are reported
as qualified, experienced and resourceful businessmen. Payments are usually
correct and as per commitments. 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.60.67 |
|
|
1 |
Rs.100.81 |
|
Euro |
1 |
Rs.80.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
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 |
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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.