|
Report Date : |
10.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
ZAMAN TEXTILE MILLS LTD (ZTM) |
|
|
|
|
Registered Office : |
60- Muslimabad, M.A Jinnah Road Ext. Jamshed Quarters, P.O Box 3535, New town Karachi-74800 |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
30.06.2013 |
|
|
|
|
Date of Incorporation : |
20.03.1968 |
|
|
|
|
Com. Reg. No.: |
0002630 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and sale of Yarn |
|
|
|
|
No. of Employees : |
640 |
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 |
ZAMAN TEXTILE MILLS
LTD (ZTM)
|
Business Name |
Zaman Textile Mills Ltd (ZTM) |
|
Address |
Registered Address: 60- Muslimabad, M.A Jinnah Road Ext. Jamshed Quarters, P.O Box 3535, New town Karachi-74800 Pakistan |
|
Telephone |
(+92) (21) 34128347, 34128348, 34919932, 34912923 |
|
Fax |
(+92) (21) 334129528 |
|
|
|
|
Website |
www.zamantextile.com (under construction) |
|
Business activities |
Manufacturing and sale of Yarn |
Registry Details
|
CRO Registration Number |
0002630 |
|
Date of Registration |
March 20, 1968 |
Other registry &
certification details:
|
Current Legal Form |
Public Limited Company |
|
National Tax Registration Number |
0712677-8 |
|
Date of Registration |
October 27, 1995 |
|
GST Registration Number |
0101520204255 |
|
Date of Registration |
October 31, 1990 |
|
Chamber of Commerce & Industry |
Karachi Chamber of Commerce & Industries |
|
ISO Certification |
None |
Capital
|
Type |
No. of Shares |
Par Value |
Total Value |
|
Authorized |
25,000,000 |
10 |
250,000,000 |
|
Issued, Subscribed & Paid-Up |
25,000,000 |
10 |
250,000,000 |
History
|
Who started |
Mr. Muhammad Jamil Qassim |
|
When started |
March 20, 1968 |
|
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) |
|
Mr. Muhammad Jamil Qassim |
4,930,112 |
Pakistani |
01 Apr 2011 |
|
Mr. Muhammad Haroon Qassim |
4,842,848 |
Pakistani |
01 Apr 2011 |
|
Mr. Muhammad Salman Qassim |
4,767,183 |
Pakistani |
01 Apr 2011 |
|
Mr. Muhammad Ebrahim Qassim |
4,544,215 |
Pakistani |
01 Apr 2011 |
|
Total |
19,084,358 |
|
|
|
Name |
Position in organization |
Qualification |
Years in employment |
|
Mr. Muhammad Jamil Qassim |
CEO |
Undetermined |
Undetermined |
|
Mr. Mohammad Hanif Ponawala |
Company Secretary |
Undetermined |
Undetermined |
|
Mr. Muhammad Fayyaz |
Finance Manager |
Undetermined |
Undetermined |
|
Mr. Kashif Rafiq |
Sales & Marketing Executive |
Undetermined |
Undetermined |
|
Statutory offices |
Name of service
provider |
|
Statutory
Auditors |
M/s M. Yousuf Adil Saleem & Co Chartered Accountants (Delloite Touche Tohmatsu Limited) |
|
Legal
Advisory Services |
Mr. Hashim Padhiar Law Associates |
|
Bank name |
Approved financing
limits PKR |
|
Habib
Metropolitan Bank Limited |
377,000,000.00 |
|
Bank
Al-Habib Limited |
335,000,000.00 |
|
Bank
Alfalah Limited |
334,000,000.00 |
|
Standard
Chartered Bank (Pakistan) Limited |
300,000,000.00 |
|
Meezan
Bank Limited |
50,000,000.00 |
The
core business focus of ZTM is Manufacturing and Sale of Yarn. ZTM is considered
to be one of the leading textile company of Pakistan with a production capacity
of more than 14,000,000 LBS per annum. The company’s prime focus is towards
quality which is considered to be the driving force at ZTM. The company is also
known for its state of the art mills with the facility of more than 21,000
spindles at its disposal.
Products:
Yarn
Weaving
Yarn
Home
Textiles
Purchases (Incl. Imports)
|
Imports from |
Nil |
|
Importing terms % |
N/A |
|
Local % |
Sindh – Punjab |
|
Local buying terms |
Cash and Credit of 30-60 days |
Sales (Incl. Exports)
|
Exports to |
Middle East and China |
|
Exporting terms |
Sight L/C |
|
Local (100%) |
Sindh-Punjab |
|
Local selling terms |
Cash and Credit of 30 Days |
|
Nature of
employment |
Current Year |
Previous Year |
|
All Staff |
640 |
Undetermined |
|
Total |
640 |
|
|
Registered Address Owned / Rented Area (approx) |
60- Muslimabad, M.A Jinnah Road Ext. Jamshed Quarters, P.O Box 3535, New town Karachi-74800 Pakistan. Undetermined Undetermined |
|
Factory -1 Owned / Rented Area (approx) |
H/2, S.I.T.E., Kotri, Sindh, Pakistan. Undetermined Undetermined |
|
Factory-2 Owned / Rented Area (approx) |
Plot 52 -53 & 426 -427, Kohi Gate,Jam Kunda Road, Deh-Landhi, Bin Qasim Town, Karachi Pakistan. Undetermined Undetermined |
Four suppliers/
customers were contacted
to get a feedback about ZTM, its products and sponsors. All the feedback was
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 |
|
Premier Distributors |
Karachi |
Distributors of branded food products |
Undetermined |
|
Premier Agencies |
Karachi |
Distributors of pharmaceutical products and toiletries |
Undetermined |
|
Shield Corporation Ltd. |
Karachi |
Manufacturers of Baby Care, Blessings Car & Oral Care
products |
Undetermined |
|
Pharmevo Pvt Ltd |
Karachi |
Manufacturers of Pharmaceutical products |
Undetermined |
|
Particulars |
30-Jun-13 |
30-Jun-12 |
% Change |
|
|
|
|
|
|
Current assets |
1,861,667,995 |
1,351,067,881 |
37.79 |
|
Current liabilities |
(1,411,612,798) |
(1,020,676,108) |
38.30 |
|
Working capital |
450,055,197 |
330,391,773 |
36.22 |
|
|
|
|
|
|
Non-current assets |
1,961,679,232 |
1,000,681,553 |
96.03 |
|
Long term liabilities |
(1,656,463,971) |
(873,200,312) |
89.70 |
|
Net worth |
755,270,458 |
457,873,014 |
64.95 |
|
|
|
|
|
|
Turnover |
4,009,556,803 |
3,267,943,587 |
22.69 |
|
Gross Profit |
501,385,075 |
263,463,006 |
90.31 |
|
EBIT |
451,855,050 |
221,320,132 |
104.16 |
|
Profit / (Loss) before tax |
339,243,592 |
94,447,018 |
259.19 |
|
Provision for taxation |
(41,846,148) |
(28,837,834) |
45.11 |
|
Profit / (Loss) after tax |
297,397,444 |
65,609,184 |
353.29 |
|
|
|
|
|
|
Creditors |
211,529,790 |
133,051,063 |
58.98 |
|
Debtors |
792,643,438 |
526,062,732 |
50.67 |
|
Cash & bank balances |
3,699,253
|
17,672,959 |
(79.07) |
|
|
|
|
|
|
Growth trend |
|
|
|
|
Sales growth (%) |
22.69% |
|
|
|
Gross profit growth (%) |
90.31% |
|
|
|
|
|
|
|
|
Solvency |
|
|
|
|
Current ratio |
1.32 |
1.32 |
|
|
Quick ratio |
0.69 |
0.63 |
|
|
Total liabilities to net worth ratio (%) |
(406.22) |
(413.62) |
|
|
|
|
|
|
|
Profitability |
|
|
|
|
Return on sales (%) |
7.42 |
2.01 |
|
|
Return on net worth (%) |
39.38 |
14.33 |
|
|
Contact person |
Mr. Muhammad Fayyaz |
|
Position |
Finance Manager |
|
Contact Person Comments |
Mr. Muhammad Fayyaz confirmed business operations and business information. |
|
Analyst’s Observations/ comments |
The office of the concern was well furnished having all the necessary facilities to run this kind of business. Fifty to fifty five employees were present in the office. Office is located in a commercial area of Karachi. We observed that the company consist of professional employees with good knowledge of the industry and the processes. Signboard was placed at the main entrance of the company. Mr. Muhammad Fayyaz had good knowledge about the business and industry. ZTM is a member of All Pakistan Textile Mills Association (APTMA). |
|
Date |
January 9, 2014 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.18 |
|
|
1 |
Rs.102.31 |
|
Euro |
1 |
Rs.84.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.