MIRA INFORM REPORT

 

 

Report Date :

21.03.2014

 

 

 

IDENTIFICATION DETAILS

 

Name :

DIAMOND TYRES LIMITED

 

 

Formerly Known as: 

Hashir Export Limited.

 

 

Registered Office :

3-KM, Manga, Raiwind Road, Manga Mandi, Lahore

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2012

 

 

Year of Establishments:

1968 (Proprietorship)

2004 (Limited Company)

 

 

Com. Reg. No.:

0048477

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engaged in the manufacturing and sale of tyres and tubes of cycle, motor cycle, trollies & wheel barrows

 

 

No. of Employees

185

 

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

 

 

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

 

 

Business Name

 

DIAMOND TYRES LIMITED

 

 

Full Address       

 

Registered Address

3-KM, Manga, Raiwind Road, Manga Mandi, Lahore, Pakistan

                       

Tel #

92 (42) 35383361, 35383362, 35383363, 35383364, 35383365, 35383353

Fax #

92 (42) 35383363

Email

diamond@cyberaccess.com.pk

 

 

Short Description Of Business

 

a.

Nature of Business       

Engaged in the manufacture and sale of tyres and tubes of cycle, motor cycle, trollies & wheel barrows

b.

Year Established

1968

c.

Registration #

0048477

 

 

Principal Office

                       

Address

23 K.M., Multan Road, Mohlanwal, Lahore, Pakistan

Tel No.

92 (42) 111-111-666, 37540336, 37540337

Fax No.

92 (42) 37540335

 

 

Auditors

 

Sarwars

(Chartered Accountants)

Office No.12, Second Floor, Lahore Centre, 77-D Main Boulevard, Gulberg-III, Lahore, Pakistan

 

 

Legal Status

 

Subject Company was established in 1968 as a Proprietorship business. In 2004 it was incorporated with Securities & Exchange Commission of Pakistan as a limited company in the name of Hashir Export Limited. Subsequently, the name of the company was changed to Diamond Tyres Limited with effect from August 30, 2007

 

Authorized Capital    

Rs. 375,000,000/- divided into 37,500,000 shares of Rs. 10/- each

Issued & Paid up Capital

Rs. 300,000,000/- divided into 30,000,000 shares of Rs. 10/- each

 

 

Details of Directors

 

Names

Designation

Mr. Muzammil Ejaz

 

Mr. Shariq Iftikhar

 

Mrs. Uzma Muzammil

 

Mr. Mudassar Iftikhar

 

Mr. Khurram Saleem

 

Mr. Muhammad Shaukat Saleem

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Categories

    Shareholding (%)

Individuals

 

Joint Stock Companies

 

Chief Executive, Directors, Spouses, relatives and minor children

---

 

---

 

 

100

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

            None                                            

           

B.         Associated Companies

(1) Symbol Industries (Private) Limited, Pakistan.

(2) Capital Industrial Enterprises (Private) Limited, Pakistan.
(3) Diamond Home Textile (Private) Limited, Pakistan.
(4) Diamond Industries Limited, Pakistan.
(5) Shaffi Chemical Industries Limited, Pakistan.

           

Products

 

Engaged in the manufacture and sale of tyres and tubes of cycle, motor cycle, trollies & wheel barrows

 

 

Number of Employees

 

185

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2012

1,519,286,107/-

 

 

Trade Suppliers

(Foreign)

 

Mainly from European Countries, China, Korea, Japan, Canada, U.K. & U.S.A.

 

 

Capacity & Production

           

Actual production volume is indeterminable as it mainly depends on the requirement from their local customers

 

 

Customers

 

(1) ATLAS HONDA LIMITED, PAKISTAN.

(2) DAWOOD YAMAHA MOTORCYCLES, PAKISTAN.

(3) SUZUKI MOTORCYCLES LIMITED, PAKISTAN.

(4) DEWAN AUTOMOTIVE MANUFACTURING LIMITED, PAKISTAN.

(5) SOHRAB MOTORCYCLES, PAKISTAN.

(6) DYL MOTORCYCLES LIMITED, PAKISTAN.

(7) HUNZA MOTORCYCLES, PAKISTAN.

(8) THUNDER MOTORCYCLES (PVT) LIMITED, PAKISTAN.

(9) HABIB MOTORCYCLES (PVT) LIMITED, PAKISTAN.

(10) SUPER ASIA MOTORS (PVT) LIMITED, PAKISTAN.

 

 

 

Bankers

           

(1) Silk Bank Limited, Pakistan.

(2) Bank Alfalah Limited, Pakistan.

(3) Standard Chartered Bank, Pakistan.

(4) The Bank of Punjab, Pakistan.

(5) NIB Bank Limited, Pakistan.

(6) Soneri Bank Limited, Pakistan.

(7) MCB Bank Limited, Pakistan.

 

           

Future Outlook

 

In the increasing competitive business environment there is a growing need to maintain its drive to excellence by timely delivering quality. Company has been consistently delivering customer value propositions which place it in a strong position.

 

 

Memberships

 

·         Lahore Chamber of Commerce & Industry.(LCCI)

·         Federation Pakistan Chamber of Commerce & Industry.(FPCCI)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

         Rs. 101.00

UK Pound

1

         Rs. 167.00

Euro

1

         Rs. 136.75

 

 

Comments

 

Subject is a well-established company having satisfactory track. Directors are reported as qualified, experienced and resourceful businessmen. Trade relations are reported as fair. 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.61.13

UK Pound

1

Rs.101.17

Euro

1

Rs.84.59

 

 

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

 

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%)

 

 

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