MIRA INFORM REPORT

Report Date :

30.12.2014

IDENTIFICATION DETAILS

Name :	WHITE PEARL JUTE MILLS LIMITED
Registered Office :	White Pearl House, 29-Bridge Colony, Lahore Cantt
Country :	Pakistan
Year of Establishment :	2000
Com. Reg. No.:	0041034
Legal Form :	Non-Listed Public Limited Company
Line of Business :	Manufacture & Selling of Jute Products.
No. of Employees :	180

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 but correct
Litigation :	Clear

NOTES:

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ECGC Country Risk Classification List – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Pakistan	B1	B1

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 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

Business Name

WHITE PEARL JUTE MILLS LIMITED

Full Address

Registered Address

White Pearl House, 29-Bridge Colony, Lahore Cantt, Pakistan

Tel #	92 (42) 36604722, 33, 44
Fax #	92 (42) 36604755, 66
Email	wprml@magic.net.pk

Short Description Of Business

a.	Nature of Business	Engaged in manufacture & selling of Jute Products
b.	Year Established	2000
c.	Registration #	0041034

Branches

Address	Plot No. C. Opposite New Truck Stand, Main Hawksbay Road, Karachi, Pakistan
Tel #	92 (21) 32350022, 33, 44
Fax #	92 (21) 32350055, 66

Factory Location

Address	Solgin Kharl, Hafizabad, Punjab, Pakistan
Tel #	92 (547) 500022, 33, 44
Fax #	92 (547) 500055, 66

Auditors

Qadeer & Co.

(Chartered Accountants)

89-F, Jail Road, Lahore, Pakistan

Legal Status

Subject Company was established as a Non-Listed Public Limited Company in 2000

Capital

Authorized Capital	Rs. 100,000,000/- divided into 10,000,000 shares of Rs. 10/- each
Issued & Paid up Capital	Rs. 85,350,000/- divided into 8,535,000 shares of Rs. 10/- each

Details of Directors

Names	Designation
Mr. Muhammad Asif Khan Mr. Malik Muhammad Jahangir Mr. Bilal Asif Mr. Asad Ullah Asif	Chief Executive Director Director Director

Shareholders

Names	No. of Shares
Mr. Muhammad Asif Khan Mr. Malik Muhammad Jahangir Mr. Azam Saleem Mrs. Robina Asif Mr. Muhammad Nazir Mrs. Zainab Bibi Mr. Ch. Muhammad Saleem White Pearl Rice Mills Limited, Pakistan Mr. Zain Sardar Asif Mr. Bilal Asif Mr. Asad Ullah Asif	5,000 5,000 5,000 2,500 5,000 2,500 2,500 8,500,000 2,500 2,500 2,500

Associates

A. Subsidiary

None

B. Associated Companies

(1) Indus Jute Mills Limited, Pakistan.

(2) White Pearl Rice Mills Limited, Pakistan.

(3) White Pearl Textile Mills Limited, Pakistan.

(4) Indus Housing Scheme, Pakistan.

Business Activities

Subject Company is engaged in manufacture & selling of Jute Products.

It sells against cash / credit term basis to its local customers.

It’s mainly export to Far East Countries & Middle East Countries.

Its major customers are Traders, Buying Agencies, Distribution Companies etc.

Subject operates from caption leased factory premises of area measuring 2 Acres of land situated at industrial area of Hafizabad, Punjab.

Subject employs about 180 persons in its set up.

Annual Production Volume

Annual production volume is indeterminable as its mainly depend upon the demand / requirements from their domestic as well as international customers

Annual Sales Volume

Year	In Pak Rupees
2012	350,000,000/- (Estimated)

Trade Suppliers (Foreign)

Various international belongs to China, Korea, Japan, Thailand, Ukraine, Taiwan, Bangladesh & India

Bankers

(1) Habib Bank Limited, Pakistan

(2) Askari Bank Limited, Pakistan.

(3) Soneri Bank Limited, Pakistan.

(4) Allied Bank Limited, Pakistan.

Memberships

· Lahore Chamber of Commerce & Industry.(LCCI)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 100.75
UK Pound	1	Rs. 157.25
Euro	1	Rs. 123.00

Comments

Subject Company was established in 2000 and is engaged in manufacture & selling of Jute Products. Overall reputation is normal. 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.63.65
UK Pound	1	Rs.99.14
Euro	1	Rs.77.60

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	NIT

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%)

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