MIRA INFORM REPORT

 

 

Report Date :

26.05.2014

 

IDENTIFICATION DETAILS

 

Name :

KOHINOOR TEXTILE MILLS LIMITED

 

 

Registered Office :

42-Lawrence Road, Lahore

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

1968

 

 

Com. Reg. No.:

0002805

 

 

Legal Form :

Listed Public Limited Company

 

 

Line of Business :

Engaged in manufacturing of yarn and cloth, processing and stitching the cloth and trade of textile products

 

 

No. of Employees

650

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular  

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

 

 

 


Business Name

                       

KOHINOOR TEXTILE MILLS LIMITED

 

 

Full Address       

 

Registered Address

42-Lawrence Road, Lahore, Pakistan

                       

Tel #

92 (42) 36302261 - 62

Fax #

92 (42) 36368721

 

 

Short Description Of Business

 

a.

Nature of Business       

Engaged in manufacturing of yarn and cloth, processing and stitching the cloth and trade of textile products

b.

Year Established

1968

c.

Registration #

0002805

 

 

Branches

           

In Karachi, Lahore, Multan & Faisalabad

 

 

Mills Location

 

(1) Peshawar Road, Rawalpindi, Pakistan.

 

(2) 8th K.M., Manga Raiwind Road, District Kasur, Pakistan.

 

(3) Gulyana Road, Gujar Khan, District Rawalpindi, Pakistan.

           

 

Auditors

           

Riaz Ahmad & Company

(Chartered Accountants)

 

 

Legal Status

 

The Company was incorporated in Pakistan as a Listed Public Limited Company in 1968

 

 

Details of Management

 

Names

Designation

Mr. Tariq Sayeed Saigol

 

Mr. Taufique Sayeed Saigol

 

Mr. Sayyed Tariq Saigol

 

Mr. Waleed Tariq Saigol

 

Mr. Danial Taufique Saigol

 

Mr. Zamiruddin Azar

 

Mr. Arif Ijaz

 

Mr. Syed Mohsin Raza Naqvi

Chairman

 

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Categories

Shareholding (%)

Associated Companies, Undertakings and related parties

 

NIT & ICP

 

Banks, Development Financial Institutions, Non Banking Financial Institutions

 

Insurance Companies

 

Modarbas Leasing & Mutual Funds

 

General Public

 

Joint Stock Companies

 

Public Sector Companies & Corporations

 

Executives

 

Others

 

15.4684

 

4.5294

 

 

 

2.4075

 

0.6630

 

 

2.0833

 

54.8796

 

4.8018

 

0.2064

 

---

 

0.0583

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

None

           

B.         Associated Companies

 

(1)   Maple Leaf Cement Factory Limited, Pakistan.

(2)   Kohinoor Maple Leaf Industries Limited, Pakistan.

(3)   Zimpex (Pvt) Limited, Pakistan.

(4)   Maple Leaf Electric Limited, Pakistan.

 

 

Business Activities

 

Engaged in manufacturing of yarn and cloth, processing and stitching the cloth and trade of textile products

 

 

Number of Employees

 

650

 

 


Plant Capacity & actual production

 

                                                                                    2013                             2012

            SPINNING:

             - Rawalpindi Division                                           (Numbers)

            Spindles (average) installed / worked                 85,680                         85,680

 

                                                                                    (Kilograms in thousand)

 

            100% plant capacity converted into 20s

            count based on 3 shifts per day for 1,095

shifts (2008: 1,098 shifts)                                   38,570                         36,315

Actual production converted into 20s

Count based on 3 shifts per day for 1,095

Shifts (2008: 1,098 shifts)                                  33,038                          24,998

 

Gujar Khan Division                                            (Numbers)

            Spindles (average) installed / worked                  70,848                          70,848

 

                                                                                    (Kilograms in thousand)

                       

            100% plant capacity converted into

            20s count based on 3 shifts per day

for 1,095 shifts (2008: 1,098 shifts)                    34,409                          31900

 

Actual production converted into

20s count based on 3 shifts per day

for 1,095 shifts (2008: 1,098 shifts)                    30,243                          24,441

 

            WEAVING                                                                       (Numbers)      

            - Raiwind Division                                                   204                               204

 

                                                                                    (Square meters in thousand)

            100% plant capacity at 60 picks based on

            3 shifts per day for 1,093 shifts (2008:

            1,096 shifts)                                                      72,568                          72,767

            Actual production converted to 60 picks

based on 3 shifts per day for 1,093 shifts

per day for 1,093 shifts (2008: 1,096 shifts)        57,888                          65,871

 

Processing of Cloth:

           

            - Rawalpindi Division                                           (Meters in thousand)

 

            Capacity at 3 shifts per day for 1,095

Shifts (2012: 1,098 shifts)                              41,860                           41,860

 

Actual production at 3 shifts per day for

1,095 shifts (2012: 1,098 shifts)                 16,221                          15,204

Bankers

 

(1)   Askari Bank Limited, Pakistan.

(2)   Faysal Bank Limited, Pakistan.

(3)   Habib Bank Limited, Pakistan.

(4)   MCB Bank Limited, Pakistan.

(5)   Bank Alhabib Limited, Pakistan.

(6)   Habib Metropolitan Bank Limited, Pakistan.

(7)   United Bank Limited, Pakistan.

(8)   Saudi Pak Commercial Bank Limited, Pakistan.

(9)   The Royal Bank of Scotland, Pakistan.

 

 

Customers

 

Various Local & International

 

 

Exports

 

Mainly to European Countries and U.S.A.

 

 

Financial Position

 

Sound

 

 

Future Outlook

 

The management has achieved better results during the year as compared to last nine months and is making all efforts for better marketing and sales to renowned brand names for better prices. During the year under progress better results are expected than last year.

           

 

Memberships

 

·         All Pakistan Textile Mills Association.

·         Lahore Chamber of Commerce & Industry.

·         Federation Pakistan Chamber of Commerce & Industry.

 

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 99.25

UK Pound

1

          Rs. 166.25

Euro

1

          Rs. 136.10

 

 

Comments

 

Kohinoor Maple Leaf Group is engaged in diversified activities which include Textiles, Hosiery, Power Generation, Trading etc. Group is well known and all the directors are resourceful and experienced businessmen. Trade relations are reported as fair. Payments to creditors etc are reported as normal. The Company can be considered for normal business dealings at usual trade terms and conditions.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.48

UK Pound

1

Rs.98.67

Euro

1

Rs.79.80

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

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.