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Report Date : |
07.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
RANA TEXTILE MILLS LIMITED |
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|
|
|
Registered Office : |
Rafhan Mills Road, Adjacent to Rafhan Maize Products Limited, Faisalabad |
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|
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Country : |
Pakistan |
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|
|
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
1990 |
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Com. Reg. No.: |
0021026 |
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Legal Form : |
Non-Listed Public Limited Company |
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Line of Business : |
Subject is engaged in manufacturing &
export of Home Textile, Pocketing, Sheeting, Lining,
Work wear & Home Furnishing Products |
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|
|
|
No. of Employees : |
620 |
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 |
|
Maximum Credit Limit : |
USD 72000 |
|
Status : |
Satisfactory |
|
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Pakistan |
B2 |
B2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 |
RANA TEXTILE MILLS
LIMITED
|
Registered Address |
|
Rafhan Mills
Road, Adjacent to Rafhan Maize Products Limited, Faisalabad, Pakistan |
|
Tel # |
92 (41) 8711141, 8711144 |
|
Fax # |
92 (41) 8711318, 4360204 |
|
a. |
Nature of Business |
Engaged in manufacturing & export of Home Textile, Pocketing, Sheeting, Lining, Work wear & Home
Furnishing Products |
|
b. |
Incorporated |
1990 |
|
c. |
Registration No. |
0021026 |
25 K.M., Sheikhupura Road,
Khurrianwala, Faisalabad,
Pakistan
|
Zahid Jamil & Co, (Chartered Accountants) |
|
The Company was incorporated in Pakistan as
a Non-Listed Public Limited Company in 1990 |
|
Authorized Capital |
Rs. 150,000,000/-
divided into 15,000,000 shares of Rs. 10/- each |
|
Issued & Paid up Capital |
Rs. 96,070,000/-
divided into 9,607,000 shares of Rs. 10/- each |
|
Names |
Designation |
|
Mr. Arif Tousif Mr. Zahid Tousif Mr. Asif Tausif Mr. Atif Tousif Mr. Usman Zahid |
Chief Executive Director Director Director Director |
|
Names |
No. of Shares |
|
Mr. Arif Tousif Mr. Zahid Tousif Mr. Asif Tausif Mr. Atif Tousif Mr. Usman Zahid |
2,402,000 1,702,000 2,401,000 2,401,000 701,000 |
A. Subsidiary
None
Abid Industries, Pakistan.
Engaged in manufacturing & export of Home Textile, Pocketing, Sheeting, Lining, Work wear & Home
Furnishing Products
620
Chenille Yarn
Machine 8000
Lbs
Dornier Air Jet
Looms 1.50
Million Meters
Sulzer Looms 8.50
Million Meters
Shuttle Less
Rapier Looms 6.50
Million Meters
Auto Cophange
& Power Looms 12.5
Million Meters
Shuttle Less
Jacquard Looms 16.0 Million
Meters
Raschel Jacquard
Machines 0.36 Million
Meters
Thermasole
continouse Dyeing 40,000
Meters / Day
Pigment Dyeing 60,000
Meters / Day
|
Year |
In Pak Rupees |
|
2011 2012 |
1,735,231,394/- 2,026,759,865/- |
Various International belongs to China,
Korea, India, Japan, Singapore, Indonesia & European Countries
|
(1) National Bank of
Pakistan. (2) Habib Bank
Limited, Pakistan. (3) Bank Alfalah
Limited, Pakistan. (4) Silk Bank
Limited, Pakistan. (5) Soneri Bank
Limited, Pakistan. (6) Habib
Metropolitan Bank Limited, Pakistan. (7) United Bank
Limited, Pakistan. (8) Bank Al-Habib
Limited, Pakistan. (9) The Bank of
Punjab, Pakistan. (10) Allied Bank
Limited, Pakistan. |
The recent increase in electricity and gas tariff,
increase in minimum wages and severe shortage of electricity and gas for power
generation remains a drag on the growth of textile sector.
·
Faisalabad Chamber of
Commerce & Industry.(FCCI)
·
Federation Pakistan
Chamber of Commerce & Industry.(FPCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 99.55 |
|
UK Pound |
1 |
Rs. 167.10 |
|
Euro |
1 |
Rs. 135.70 |
Subject Company was
established in 1990 and is engaged in manufacturing
& export of Home Textile, Pocketing, Sheeting,
Lining, Work wear & Home Furnishing Products. Directors of the Company are reported as qualified, experienced &
resourceful businessmen. Payments are usually correct and as per commitments.
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.59.20 |
|
|
1 |
Rs.99.52 |
|
Euro |
1 |
Rs.80.83 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NNA |
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.