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Report Date : |
15.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
SAPPHIRE TEXTILE MILLS LIMITED |
|
|
|
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Registered Office : |
212, Cotton Exchange Building, I.I. Chundrigar Road, Karachi |
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|
|
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Country : |
Pakistan |
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|
|
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Financials (as on) : |
30.06.2013 |
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Year of Establishment : |
1969 |
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|
|
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Com. Reg. No.: |
0002848 |
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|
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Legal Form : |
Public Limited Company |
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|
|
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Line of Business : |
Manufacturing and sale of yarn, fabrics,
homemade textile products and processing of fabrics |
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|
|
|
No of Employees : |
2,050 |
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 : |
Good |
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|
|
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Payment Behaviour : |
Regular |
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|
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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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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 |
SAPPHIRE TEXTILE
MILLS LIMITED
|
Registered
Address |
|
212, Cotton Exchange Building, I.I. Chundrigar Road, Karachi, Pakistan |
|
Tel # |
92 (21) 111-000-100, 32410930,
32410961 |
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Fax # |
92 (21) 32416705 |
|
a. |
Nature of Business |
Manufacturing
and sale of yarn, fabrics, homemade textile products and processing of
fabrics |
|
b. |
Year Established |
1969 |
|
c. |
Registration # |
0002848 |
|
Address |
7 A-K, Main Boulevard, Gulberg II, Lahore,
Pakistan |
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Tel # |
92 (42) 35750410 |
|
Fax # |
92 (42) 35758783 |
(1) S.I.T.E., Kotri.
(2) S.I.T.E., Nooriabad.
(3) Chunian, District Kasur.
(4) Feroz Watwan.
(5) Bhopattian, Lahore.
|
The Company was incorporated in Pakistan as a Public Limited Company
in 1969 and is quoted at Karachi, Lahore & Islamabad Stock Exchanges of
Pakistan |
|
Mushtaq & Company (Chartered Accountants) |
|
Names |
Designation |
|
Mr. Mohammad Abdullah Mr. Nadeem Abdullah Mr. Amer Abdullah Mr. Yousuf Abdullah Mr. Nabeel Abdullah Mr. Shayan Abdullah Mr. Mohammad Younus Mr. Shahid Abdullah |
Chairman Chief Executive Director Director Director Director Director Director |
|
Categories |
Percentage (%) |
|
Director, their spouse
and minor children Associated
Companies, Undertakings & related parties NIT & ICP Banks,
Development Finance Institutions, Non-Banking Finance Institutions Other Companies Modarabas &
Mutual Funds General Public |
60.75 30.88 4.63 0.01 0.63 0.04 3.06 |
A. Subsidiary
None
B. Associated
Companies
|
(1) Reliance Cotton Spinning Mills Limited, Pakistan. (2) Sapphire Electric Company Limited, Pakistan. (3) Sapphire Fibers Limited, Pakistan. (4) Sapphire Finishing Mills Limited, Pakistan. (5) Sapphire Dairies (Pvt) Limited, Pakistan. (6) Sapphire Holding Limited, Pakistan, Pakistan. (7) SFL Limited, Pakistan. (8) Amer Cotton Mills (private) Limited, Pakistan. (9) Amer Tex (private) Limited, Pakistan. (10) Creadore A/s, Pakistan. (11) Corus Power (private) Limited, Pakistan. (12) Crystal Enterprises (private) Limited, Pakistan. (13) Diamond Limited, Pakistan. (14) Diamond Fabrics Limited, Pakistan. (15) Galaxy Agencies (private) Limited, Pakistan. (16) Hermes Power (private) Limited, Pakistan. (17) Nadeem Enterprises (private) Limited, Pakistan. (18) Neelum Textile Mills Limited, Pakistan. (19) Sapphire Wind Power Company Limited, Pakistan. (20) Sapphire Agencies (private) Limited, Pakistan. (21) Sapphire Enterprises (private) Limited, Pakistan. (22) Reliance Textiles (private) Limited, Pakistan. (23) Sapphire Power Generation Limited, Pakistan. (24) Sapphire Finishing Mills USA Inc, U.S.A. (25) Salman Ismail (SMC-private) Limited, Pakistan. (26) STM Corporation (private) Limited, Pakistan. (27) SFL Corporation (private) Limited, Pakistan. (28) Sapphire Home Inc. USA (29) Yousaf Agencies (private) Limited, Pakistan. |
Manufacturing and sale of yarn, fabrics,
homemade textile products and processing of fabrics
2,050
2013 2012
Spinning
Number of spindles installed 122,410 122,328
Average Number of spindles worked 119,201 114,911
Total number of rotors installed 3,111 3,120
Average number of rotors worked 3,041 3,057
Number of working days
3 3
Number of Shifts per day 360 360
Installed
capacity in Kilograms, after conversion into 20/s count
(based
on actual number of working days) 87,648,336 86,040,250
Actual
production of yarn in Kilograms, after conversion into
20/s
count (based on actual number of working days) 89,079,562 89,641,405
Weaving
Number
of looms installed
300) 292)
Number
of looms worked
290 287)
Number
of shifts worked per day
3) 3
Total
days worked 360
360
Installed
capacity at 50 picks per inch of fabric square meters 102 273,135) 98,269,741)
Actual
production after conversion into 50 picks - square yards 98,573,323) 93,024,466)
Home Textile Production Unit
The Capacity of this unit is undeterminable due to multi product
involving varying processes of manufacturing and run length of order lots.
|
(1) Faysal Bank
Limited, Pakistan. (2) Habib Bank
Limited, Pakistan. (3) Citibank N.A.,
Pakistan. (4) Standard
Chartered Bank, Pakistan. (5) United Bank
Limited, Pakistan. (6) MCB Bank Limited,
Pakistan. |
|
Various Local & International |
|
Mainly to European Countries & U.S.A. |
Sound
Sales during the year under review reduced to Rs.21.491 billion from Rs.22.937 billion in the previous year. This was primarily due to lower raw material prices and consequently lower sale price of goods manufactured by the Company in the current year compared to previous year. The Gross profit reduced from 14.90% in the previous year of sales to 12.90% of sales in the current year. The biggest impact is due to higher cost of energy. The increase in cost of energy was due to increase in tariffs of gas and electricity, as well as increase in price of furnace oil. Further due to increased gas curtailment, the company had to shift to more expensive sources of power. The total cost of power increased from Rs.1.006 billion to Rs.1.424 billion. Energy cost increased from 4.38% of sales to 6.63% of sales. Financial cost decreased from Rs.812.051 million which was 3.54% of sales compared to Rs.713.188 million which is 3.32% of sales in the current year. Other income during the year reduced to Rs.407.631 million as against Rs.451.661 million in the previous year.
· APTMA
· FPCCI
· LCCI
· KCCI
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 106.05 |
|
UK Pound |
1 |
Rs. 173.75 |
|
Euro |
1 |
Rs. 144.50 |
Sapphire Group is engaged in
diversified activities which include Textiles, Hosiery, Power Generation, Trading
etc. Group is well known and all the directors are resourceful and experienced
businessmen. Trade relations are reported as fair. Payments to creditors etc
are reported as normal. The 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. 62.27 |
|
|
1 |
Rs. 103.66 |
|
Euro |
1 |
Rs. 85.17 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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.