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Report Date : |
01.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
IBRAHIM FIBRES LIMITED |
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Registered Office : |
1 - Ahmed Block, New Garden Town, Lahore, |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
1986 |
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Com. Reg. No.: |
0014764 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacture
and sale of polyester staple fibre and yarn. |
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No. of Employees : |
4,089 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 5150000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Pakistan |
B2 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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 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 |
IBRAHIM FIBRES
LIMITED
Registered
Address
|
|
1 - Ahmed Block, New Garden Town, Lahore, Pakistan |
|
Tel # |
92 (42) 111-333-777, 35869151 |
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Fax # |
92 (42) 35864915 |
|
a. |
Nature of Business |
The principal business of the
Company is manufacture and sale of polyester staple fibre and yarn. |
|
b. |
Year Established |
1986 |
|
c. |
Registration # |
0014764 |
15 - Club Road, Faisalabad,
Pakistan
38 - 40
Kilometres, Faisalabad
Sheikhupura
Road, Faisalabad,
Pakistan
|
Avais Hyder Liaquat Nauman (Chartered Accountants) |
|
Ibrahim Fibres Limited (the Company)
is incorporated in Pakistan as a public limited company under the Companies
Ordinance, 1984 (the Ordinance) and is listed on the Stock Exchanges in
Pakistan |
|
Names |
Designation |
|
Mr. Sheikh Mukhtar Ahmed Mr. Mohammad Naeem Mukhtar Mr. Mohammad Waseem Mukhtar Mr. Jawaid Ashraf Mr. Abdul Hameed Bhutta Mr. Mohammad Waqar Mr. Muhammad Abbas |
Chairman Chief Executive Director Director Director Director Director |
|
Categories |
Percentage
(%) |
|
Associated Companies, Undertakings and related parties NIT & ICP Directors, Chief Executive Officer and their spouses Banks, DFIs, NBFIs & Leasing Companies Insurance Companies Modarabas and Mutual Funds Joint Stock Companies & others General Public |
--- 0.0005 88.4975 0.6819 0.6903 0.0010 1.3765 8.7523 |
A. Subsidiary
None
B. Associated
Companies
(1) A.A.
Textiles Limited, Pakistan.
(2) Zainab
Textile Mills Limited, Pakistan.
(3) Allied
Bank of Pakistan Limited, Pakistan.
(4) Ibrahim
Energy Limited, Pakistan.
|
The principal business of the Company is manufacture and sale of
polyester staple fibre and yarn. |
4,089
2014 2013
(In
Metric Tons)
Annual production
capacity
Polyester Staple
Fibre / Polyester Chips 390,600 390,600
Yarn
converted into 20/s count (Spindles installed
137,856
(2009: 137,856)) 48,700
48,700
Annual production
Polyester Staple
Fibre / Polyester Chips 232,173 214,966
Yarn
converted into 20/s count (Spindles worked 137,090
(2013:
136,440))
49,098 49,021
|
(1) Bank Alfalah Limited,
Pakistan. (2) Bank Al Habib Limited,
Pakistan. (3) BankIslami Pakistan
Limited, Pakistan. (4) Barclays Bank PLC, Pakistan. (5) Citibank, N.A., Pakistan. (6) Deutsche Bank AG, Pakistan. (7) Faysal Bank Limited,
Pakistan. (8) Habib Bank Limited,
Pakistan. (9) Habib Metropolitan Bank
Limited, Pakistan. (10) HSBC Bank Middle East
Limited, Pakistan. (11) JS Bank Limited, Pakistan. (12) MCB Bank Limited,
Pakistan. (13) Meezan Bank Limited,
Pakistan. (14) National Bank of Pakistan,
Pakistan. (15) Standard Chartered Bank
(Pakistan) Limited, Pakistan. (16) United Bank Limited,
Pakistan. |
Sound.
There is a huge demand for locally
manufactured textile products in the international market which is untapped
primarily due to shortage of gas and electricity in Pakistan. Price of cotton
in domestic and regional markets are also expected to remain depressed tilting
the blend ratio of yarn in favour of cotton and resultantly challenging the
prospects of growth in demand for PSF in the domestic market.
The
group started with a cloth trading business in the industrial city of
Faisalabad. Late Haji Sheikh Mohammad Ibrahim, founder of the Ibrahim Group,
settled in Faisalabad after partition of India in 1947 and re-established his
ancestral business of cloth trading by the name of “Ibrahim Agencies”. What is
known in business today as Ibrahim Group with diversified business interests
from Spinning to PSF, Financial Institutions to Banking and Energy, started off
as a mere cloth trading agency just half a century ago. It was middle of the
fifties, when Sheikh Mukhtar Ahmed, present Chairman of the group, joined in
this family business. It was then, that he took initiative to integrate the
business vertically upwards adding up yarn trading as an additional line of
business. Turning out to be a milestone in the future progress, it did not take
long before the group was widely reputed and respected in marketing of cotton
and blended yarns. Backed by this goodwill and experience in marketing, in
1980, manufacturing of own blended yarn was initiated by establishment of Ibrahim
Textile Mills Limited. With long term considerations and a simple principle of
“no compromise on quality”two more textile spinning companies; A.A. Textiles
Limited in 1982 and Zainab Textile Mills Limited in 1987 were established. A
power generation Company Ibrahim Energy Limited was incorporated in 1991 to
improve the efficiency of the existing manufacturing companies. All these
manufacturing companies have now been merged into Ibrahim Fibres Limited. The
Group diversified into the financial services by floating First Ibrahim
Modaraba and also established a leasing company; Ibrahim Leasing Limited.
Subsequently First Ibrahim Modaraba was merged into Ibrahim Leasing Limited.
Upon declaration of the privatization policy by Government of Pakistan, Ibrahim
Group together with other leading groups participated in the bidding to acquire
controlling shares of Muslim Commercial Bank Limited. Under the scheme of
reconstruction proposed by State Bank of Pakistan, Consortium of Ibrahim
Leasing Limited, Ibrahim Group and its sponsors acquired more than 75% of the
shareholding of Allied Bank of Pakistan Limited. Management and control of the
Bank was handed over to Ibrahim Group on August 19, 2004. At present Ibrahim
Group is holding more than 80% shareholding of this bank. One of the top five
banks of Pakistan, Allied Bank has more than 742 branches across the country
with 7,139 employees and financial assets of Pak Rupees 234 billion. The Group
plans to inject its own dynamism and energy in the bank to turn it into a premier
financial institution of the country. After the acquisition of the bank Ibrahim
Leasing Limited has been merged into Allied Bank limited. The strength of the
group today stands manifold with entrepreneurial skills and visionary
leadership of Sheikh Mukhtar Ahmed added with fresh concepts and professional
skills of Mohammad Naeem Mukhtar who has done his MBA from the University of
Wales, Cardiff, UK. and Mohammad Waseem Mukhtar who has done his Bachelor in
Computer Science and Masters in Total Quality Management (TQM) from the
University of Glamorgan, Wales, UK.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 103.20 |
|
UK Pound |
1 |
Rs. 166.25 |
|
Euro |
1 |
Rs. 131.15 |
Company enjoys high prestige and reputation in
the business community, banks, financial institutions and customers. It is also
amongst major contributors to the national exchequer. All the directors
of the company are resourceful and experienced businessmen. Trade relations are
reported as fair. Payments to creditors etc are reported slow but normal.
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.61.41 |
|
|
1 |
Rs.98.06 |
|
Euro |
1 |
Rs.77.19 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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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 |
|
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.