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Report Date : |
16.01.2014 |
IDENTIFICATION DETAILS
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Name : |
HAYEESONS CORPORATION (HC) |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.06.2013 |
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Year of Establishments: |
1978 |
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Legal Form : |
Partnership Firm |
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Line of Business : |
Manufacturers and Exporters of Sports Goods and Leather Garments including:- ·
Leather
Motorbike Garments, Leather
Motorbike Gloves Textile
Motorbike Garment Sportswear Hosiery
(T-Shirts, Shorts, Trouser, Track Suit Etc….) |
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No. of Employees : |
508-634 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 – 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 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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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 |
HAYEESONS CORPORATION (HC)
|
Business Name |
Hayeesons Corporation (HC) |
|
Address |
Registered address Raghib town, Pasrur Road, near China Chowk, Sialkot |
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Telephone |
(+92) (52) 3543500, 3543600 |
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Fax |
(+92) (52) 3543700 |
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Email |
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|
Website |
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Business activities |
Manufacturers and Exporters of
Sports Goods and Leather Garments |
Registry Details
HC is registered Partnership firm, registry details are given below.
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CRO Registration
Number |
RFG/422 |
|
Date of Registration |
1978 |
Other registry
& certification details:
|
Current Legal Form |
Partnership Firm |
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National Tax
Registration Number |
1822414-8 |
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Date of Registration |
January 26, 2004 |
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GST Registration
Number |
09-05-9999-800-37 |
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Date of Registration |
July 30, 1997 |
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Chamber of Commerce
& Industry |
Sialkot Chamber of Commerce and Industry (C-1187) |
|
ISO Certification |
0006666 June 13, 2001 |
Capital
|
Type |
No. of Shares |
Par Value |
Total Value |
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Authorized |
N/A |
||
|
Issued, Subscribed
& Paid-Up |
|||
History
|
Who started |
Sh. Pervez Raghib |
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When started |
1978 |
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Change in management |
None |
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Year of change |
N/A |
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Change in legal
status |
None |
|
Year of change |
N/A |
|
Change in business
name |
None |
|
Year of change |
N/A |
(SPONSORS)
|
Name |
Profit and Loss Sharing Ratio |
Nationality |
Appointment Date (Last) |
|
Mr.
Pervez Raghib |
20% |
Pakistani |
1978 |
|
Mrs.
Mussarat Jabeen |
20% |
Pakistani |
1978 |
|
Mr.
Irfan Raghib |
20% |
Pakistani |
1990 |
|
Mr.
Arslan Raghib |
20% |
Pakistani |
1992 |
|
Mr.
Zeeshan Raghib |
20% |
Pakistani |
1996 |
|
Name |
Position in organization |
Qualification |
Years in employment |
|
Mr.
Pervez Raghib |
Partner/CEO |
Undetermined |
Undetermined |
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Statutory
offices |
Name of service provider |
|
Statutory Auditors |
Zaheer & Co. Chartered Accountants |
|
Legal Advisory Services |
Zia Ullah Law Associates |
|
Bank name |
Approved financing
limits PKR |
|
United
Bank Limited |
60,000,000 |
The
primary focus of HC is Manufacturing of Export of Sports Goods and Leather
Garments.
Products: 1- Leather
Motorbike Garments,
2- Leather Motorbike Gloves
3- Textile
Motorbike Garment
4- Sportswear
5- Hosiery (T-Shirts, Shorts, Trouser, Track Suit Etc….)
Purchases (Incl.
Imports)
|
Imports from |
Italy, Korea, United States of America, China & Hong
Kong |
|
Importing terms |
Demand Draft In Advance & L/C At Sight |
|
Local % |
60% |
|
Local buying terms |
Cash and Credit |
Sales (Incl.
Exports)
|
Exports to |
United States of America, Canada, United Kingdom, Germany,
Australia, Mexico, Japan & All Over The Globe |
|
Exporting terms |
Demand Draft , CAD & L/C, |
|
Local (%) |
25% |
|
Local selling terms |
Cash and Credit |
|
Nature of employment |
Current Year |
Previous Year |
|
Permanent |
158-165 |
145-154 |
|
Sub contractor |
350-469 |
350-450 |
|
Total |
508-634 |
495-604 |
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Head office Address Owned / Rented Area (approx) |
Raghib town, Pasrur Road, near China Chowk, Sialkot Owned 4.3 Acres |
|
Factory Address Owned / Rented Area (approx) |
Raghib town, Pasrur Road, near China Chowk, Sialkot Owned 4.3 Acres |
During the market check of HC, we contacted various suppliers / competitor of the subject company. In their opinion subject company is a good player of the industry and enjoys a very good reputation in the market. Market sources further mentioned that HC is well known as a profitable business in the industry.
|
Business Name |
City |
Line of Business |
Percentile of Shareholding |
|
Ahmad Leather (Tannery) Sialkot |
Sialkot |
Leather Processing
|
100% |
|
Particulars |
30-Jun-13 |
30-Jun-12 |
% Change |
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Current assets |
365,450,000 |
301,300,000 |
21 |
|
Current liabilities |
124,780,000 |
115,440,000 |
8 |
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Working capital |
240,670,000 |
185,860,000 |
29 |
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|
|
|
|
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Non-current assets |
335,420,000 |
316,560,000 |
06 |
|
Long term liabilities |
- |
- |
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Net worth |
576,090,000 |
502,420,000 |
15 |
|
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Turnover |
560,140,000 |
504,126,000 |
11 |
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Gross Profit |
212,850,000 |
189,050,000 |
13 |
|
EBIT |
119,820,000 |
106,950,000 |
12 |
|
Profit / (Loss) before tax |
93,030,000 |
82,172,000 |
13 |
|
Provision for taxation |
5,650,000 |
5,042,000 |
12 |
|
Profit / (Loss) after tax |
156,000,000 |
77,130,000 |
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Creditors |
94,780,000 |
90,440,000 |
4 |
|
Debtors |
122,850,000 |
108,470,000 |
12 |
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Cash & bank
balances |
18,100,000 |
15,340,000 |
17 |
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Growth trend |
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Sales growth (%) |
11% |
9% |
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Gross profit growth (%) |
12.60% |
10.25% |
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Solvency |
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Current ratio |
2.93 |
2.61 |
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Quick ratio |
1.32 |
1.21 |
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Total liabilities to net worth
ratio (%) |
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Profitability |
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Return on sales (%) |
15% |
15% |
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Return on net worth (%) |
16.14% |
16.35% |
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|
Contact person |
Mr. Zafar/ Waqas Ahmed |
|
Position |
Manager Accounts |
|
Contact Person
Comments |
We visited and found the said business operational. The
said person provided the required information. |
|
Analyst’s
Observations/ comments |
o
The office of the concern is well build with
all the required facilities necessary for this kind of business. o The Partners have invested more than Rs. 570 Million in the business. o We observed that the business is running well as confirmed by the market sources. o The factory has a covered area of 110,000 SQ.Ft for production facility. o The business and its sponsors is well known in the vicinity. o
We observed that the employees of the concern
are quite enthusiastic and motivated due to the fact that company have
provided extra benefits to the employee in the form of Social security and
other monetary benefits. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.59 |
|
|
1 |
Rs.101.09 |
|
Euro |
1 |
Rs.83.99 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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.