MIRA INFORM REPORT

 

 

Report Date :

20.01.2014

 

IDENTIFICATION DETAILS

 

Name :

ROOMI FABRICS LIMITED (RFL)

 

 

Registered Office :

Mehr Manzil Lohari Gate, Multan

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

20.05.2002

 

 

Com. Reg. No.:

0043718  

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Manufacturer and Exporter of Grey Cloth

 

 

No. of Employees :

Not Available

 

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

 

 

 

 


Company name and address

 

ROOMI FABRICS LIMITED (RFL)

 

 

GENERAL INFORMATION

 

Business Name

Roomi Fabrics Limited (RFL)

Address

Registered Address:

Mehr Manzil Lohari Gate, Multan

Telephone

(+92) (61) 4511158-59

(+92) (61) 111-181-181

Fax

(+92) (61) 4511262-4549711

Email

mtm@mahmoodgroup.com 

Website

www.mehmoodgroup.com

Business activities

Manufacturer and Exporter of Grey Cloth

           

 

Registry Details

CRO Registration Number

0043718  

Date of Registration

May 20, 2002  

 

Other registry & certification details:

Current Legal Form

Public Limited Company

National Tax Registration Number

1417359-0

Date of Registration

June 25, 2002

GST Registration Number

0407520904119

Date of Registration

February 19, 2003

Chamber of Commerce & Industry

Undetermined

ISO Certification

None

 

Capital

Type

No. of Shares

Par Value

Total Value

Authorized

300,000,000

10

30,000,000

Issued, Subscribed & Paid-Up

220,000,000

10

22,000,000

 

History

Who started

 Undetermined

When started

May 20, 2002  

Change in management

None

Year of change

N/A

Change in legal status

None

Year of change

N/A

Change in business name

None

Year of change

N/A

 

 

PRINCIPALS (SPONSORS)

 

Name

Number of Shares

Nationality

Appointment Date (Last)

Kh. Muhammad Masood

1,815,000

Pakistani

Oct 31, 2012

Kh. M. Jalaluddin Roomi

1,801,818

Pakistani

Oct 31, 2012

Kh. Muhammad Younas

1,438,693

Pakistani

Oct 31, 2012

Kh. Muhammad Iqbal

971,818

Pakistani

Oct 31, 2012

Kh. Muhammad Ilyas

919,943

Pakistani

Oct 31, 2012

Mr. Abdul Haque

622,500

Pakistani

Oct 31, 2012

Kh. Muhammad Mohsin

500,000

Pakistani

Oct 31, 2012

 

Other Share Holders

S. No.

Name

No of Shares

1

M/s Mahmood Textile Mils Ltd.

4,000,000

2

Masood Fabrics Ltd

4,000,000

3

Mrs. Bilqes Akhtar

1,296,875

4

Mrs. Ghulam Zahra

1,105,910

5

Mrs. Shafique Zahra

1,105,909

6

Mrs. Rehana Kausar

1,105,909

7

Mrs. Humera Jalaluddin

415,000

8

Kh. Muhammad Anees

311,250

9

Ms. Sadia Younas

259,375

10

Mrs. Robin Younas

207,500

11

Kh. Muhammad Muzaffar Iqbal

122,500

 

 

KEY MANAGEMENT

 

Name

 

Position in organization

Qualification

Years in employment

Mr. Kh. Muhammad Younas

C.E.O

Undetermined

Undetermined

Mr. Javed Anjum

Company Secretary

Undetermined

Undetermined

 

Statutory offices

Name of service provider

Statutory Auditors

M/s Hameed Ch. & Co.

 

Legal Advisory Services

Mr. Rao Jamshaid Ali Khan

(Legal Advisor)

 


BANKERS

 

Bank name

Approved financing limits PKR

Meezan Bank Limited,

800,000,000

Bank-Al-Falah Limited

667,000,000

Faysal Bank Limited

666,666,667

MCB Bank Limited

507,000,000

Bank Al-Habib Limited

140,000,000

Allied Bank Limited

134,000,000

United Bank Limited

134,000,000

National Bank of Pakistan

200,000,000

Habib Bank Limited

180,000,000

 

 

DETAILS OF BUSINESS ACTIVITIES

 

The core business focus of M/s Roomi Fabrics Limited is Manufacture & Exporter of Grey Cloth (Weaving Unit).

           

                       

Purchases (Incl. Imports)

Imports from

None

Importing terms

N/A

Local %

None

Local buying terms

N/A

 

Sales (Incl. Exports)

Exports to

Japan, Middle East, Germany, Italy, South Korea

Exporting terms

LC Basis

Local

Punjab

Local selling terms

Cash & Credit

 

 

NUMBER OF EMPLOYEES

 

Nature of employment

Current Year

Previous Year

All Staff

Not Disclosed

Not Disclosed

Total

Not Disclosed

 

 

 

 


BUSINESS FACILITIES

 

Head Office Address

Owned / Rented

Area (approx)

Mehr Manzil Lohari Gate, Multan

Undetermined

Undetermined

Factory Address

Owned / Rented

Area (approx)

Not Disclosed

Undetermined

Undetermined

 

 

MARKET REPUTATION

 

Three Suppliers and Three Competitors were contacted to get a feedback about RFL. All the feedback was found Satisfactory and no disputes or untoward events including complaints about quality of products were reported/ identified during inquiry. We further came to know that subject holds a very good market share and the company has a very good market standing.

 

 

DETAILS OF RELATED BUSINESSES

 

Business Name

City

Line of Business

Percentile of Shareholding

M/s Mahmood Textile Mills Limited

Multan

Textile Mills

None Reported

M/s Masood Spinning Mills Limited

Multan

Spinning Unit

None Reported

M/s Mahmood Power Generation Ltd

Multan

Power Generation

None Reported

M/s Masood Fabrics Limited

Multan

Weaving Unit

None Reported

M/s Khawaja Tanneries (Pvt.) Limited

Multan

Leather Tanneries

None Reported

M/s Roomi Enterprises (Pvt.) Limited

Multan

Trading Concern

None Reported

M/s Roomi Foods (Pvt). Limited

Multan

Manufacturing & Trading

None Reported

M/s Multan Fabrics (Pvt.) Limited

Multan

Textile Mills

None Reported

M/s Khawaja Muzaffar Mehmood Muhammad Masood cotton Ginning

Multan

Cotton Ginning

None Reported

 


 

BUSINESS PERFORMANCE

 

Particulars

30-Jun-13

30-Jun-12

% Change

 

 

 

 

Current assets

1,942,888,016

1,724,268,413

12.68

Current liabilities

979,656,483

936,044,342

4.66

Working capital

963,231,533

788,224,071

22.20

 

 

 

 

Non-current assets

1,542,659,729

1,508,734,320

2.25

Long term liabilities

397,382,262

560,454,428

-29.10

Net worth

1,145,277,467

948,279,892

20.77

 

 

 

 

Turnover

4,957,497,954

5,427,088,985

-8.65

Gross Profit

709,374,016

740,027,499

-4.14

EBIT

 

 

 

Profit / (Loss) before tax

422,207,575

324,119,575

30.26

Taxation

50,202,538

58,936,257

-14.82

Profit / (Loss) after tax

372,005,037

265,183,318

40.28

 

 

 

 

Creditors

210,191,148

280,290,887

-25.01

Debtors

598,528,513

427,756,732

39.92

Cash & bank balances

1,890,170

749,265

152.27

 

 

 

 

Growth trend

 

 

 

Sales growth (%)

-8.65%

 

 

Gross profit growth (%)

-4.14%

 

 

 

 

 

 

Solvency

 

 

 

Current ratio

1.98

1.84

 

Quick ratio

1.17

1.26

 

Total liabilities to net worth ratio (%)

4.59

4.98

 

 

 

 

 

Profitability

 

 

 

Return on sales (%)

0.07

0.04

 

Return on net worth (%)

1.24

0.88

 

 

 

 

 

 

           


 

INTERVIEW & REPORTER COMMENTS

 

Contact person

Mr. Javed Anjum

Position

Company Secretary / C.F.O

Contact Person Comments

The contact person was quite reluctant to provide the information related to the company.

Observation

RFL is member of one of the leading textile group of the country.

RFL is well known in the vicinity and the local market.

We observed that the office of the concern is well built with all the required facilities.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.35

UK Pound

1

Rs.100.21

Euro

1

Rs.83.52

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.