MIRA INFORM REPORT

 

 

Report Date :

27.03.2014

 

IDENTIFICATION DETAILS

 

Name :

IDREES TEXTILE MILLS LIMITED

 

 

Registered Office :

6-C, Ismail Centre, 1st Floor, Central Commercial Area, Bahadurabad, Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

05.06.1990

 

 

Com. Reg. No.:

0021863 

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Engaged in manufacturing & sale of Yarn, fabrics and other textile items. 

 

 

No. of Employees

1,041

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

 

Business Name

 

IDREES TEXTILE MILLS LIMITED

 

 

Full Address       

 

Registered Address

6-C, Ismail Centre, 1st Floor, Central Commercial Area, Bahadurabad, Karachi, Pakistan

                       

Tel #

92 (21) 34940026 (5 Lines)

Fax #

92 (21) 34945306, 34931558

 

 

Short Description Of Business

 

a.

Nature of Business      

Engaged in manufacturing & sale of Yarn, fabrics and other textile items. 

b.

Incorporated

05 June 1990

c.

Registration No.

0021863 

 

                       

Mills Location

 

Kot Shah Mohammad, Tehsil Nankana,

District Nankana, Punjab

 

 

Auditors

 

M. Yousuf Adil Saleem & Co.

(Chartered Accountants)

 

 

Legal Status

 

The Company was incorporated in Pakistan as a public limited company and is listed at Stock Exchanges of Pakistan

 

 

 

Details of Directors

           

Names

Designation

Mr. S.M. Idrees Allawala

 

Mr. S.M. Mansoor Allawala

 

Mr. Kamran Idrees Allawala

 

Mr. Naeem Idrees Allawala

 

Mr. Rizwan Idrees Allawala

 

Mr. Omair Idrees Allawala

 

Mr. Muhammad Israil

Chairman

 

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Categories of Shareholders                

           

Categories

    Percentage (%)

Associated Companies, Undertakings & Related Parties

 

Directors, CEO, their spouses & minor children

 

Joint Stock Companies

 

Banks, Development Finance Institutions, Insurance Companies, Modarabas & Mutual Funds

 

Individuals

 

9.36

 

 

52.34

 

3.75

 

 

 

1.01

 

33.54

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

                        None                                            

           

B.         Associated Companies

·         Shama Enterprises (Pvt) Limited, Pakistan.

·         Bilal Omair Textile Mills (Pvt) Limited, Pakistan.

 

 

Business Activities

 

Engaged in manufacturing & sale of Yarn, fabrics and other textile items. 

 

 

Number of Employees

 

1,041

 

 

Plant Capacity & Production

           

Description

2013 (Kgs)

2012 (Kgs)

Installed production capacity 20/s count - Yarn in Kgs

 

Actual production during the year at 20/s count – Yarn in Kgs

 

14,795,745

 

 

7,088,041

 

14,795,745

 

 

6,156,446

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2013

2,242,355,182/-

 

 

Trade Suppliers

(Foreign)

 

Various International belongs to China, Korea, India, Japan, Singapore, Indonesia & European Countries

 

Bankers

           

(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 Islami Pakistan Limited, Pakistan.

(9) The Bank of Punjab, Pakistan.

Future Outlook  

 

The recent sharp decline in the value of Pak Rupee against the US Dollar will increase the cost of raw material and other associated inputs which are going to further enhance the already high cost of doing business. In addition, 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.

 

 

Memberships

 

·         All Pakistan Textile Mills Association.(APTMA)

·         Karachi Chamber of Commerce & Industry.(KCCI)

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

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 100.20

UK Pound

1

          Rs. 165.00

Euro

1

          Rs. 138.00

 

 

Comments

 

Subject Company was established in 1990 and is engaged in manufacture & sale of Yarn, fabrics and other textile items. 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.60.17

UK Pound

1

Rs.99.39

Euro

1

Rs.83.09

                

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%)

 

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.