MIRA INFORM REPORT

Report No. :	317960
Report Date :	21.04.2015

IDENTIFICATION DETAILS

Name :	YUNUS TEXTILE MILLS LIMITED

Registered Office :	H-23/1, Landhi Industrial Area, Karachi

Country :	Pakistan

Financials (as on) :	30.06.2014

Year of Incorporation :	1998

Com. Reg. No.:	0060489

Legal Form :	Non-Listed Public Limited Company

Line of Business :	Company is engaged in the manufacturing and export of Knitted, Weaved and Stitched fabrics and other textile articles

No. of Employees :	4,904

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Pakistan

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-fourth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings, and Pakistan's failure to diversify its exportshas left the country vulnerable to shifts in world demand. Official unemployment was 6.9% in 2014, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Pakistan’s human development continues to lag behind most of the region.. As a result of political and macroeconomic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 to preventa balance of payments crisis, but the IMF ended the Arrangement early because of Pakistan’s failure to implement required reforms. The economy has stabilized, it continues to underperform and foreign investment has not returned to levels seen during themid-2000’s, due to investor concerns related to governance, electricity shortages, , and a slow-down in the global economy. Remittances from overseas workers, averaging more than$1 billion a month, remain a bright spot for Pakistan. After a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to a deficit where it remained through 2014, spurred by higher prices for imported oil and lower prices for exported cotton. In September 2013, after facing balance of payments concerns, Pakistan entered into a three-year, $6.7 billion IMF Extended Fund Facility. The Sharif government has since made modest progress implementing fiscal and energy reforms, and in December 2014 the IMF described Pakistan’s progress as “broadly on track.” Pakistan remains stuck in a low-income, low-growth trap, with growth averaging about 3.5% per year from 2008 to 2014. Pakistan must address long standing issues related to government revenues and the electricity and natural gas sectorsin 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

Company name and address

YUNUS TEXTILE MILLS LIMITED

Registered Address

H-23/1, Landhi Industrial Area, Karachi, Pakistan

Tel #	92 (21) 35081305, 35081727
Fax #	92 (21) 35081226
Email	info@yunustextile.com

Short Description Of Business

a.	Nature of Business	Company is engaged in the manufacturing and export of Knitted, Weaved and Stitched fabrics and other textile articles
b.	Year Established	1998
c.	Registration #	0060489

Other Units Locations

(1) Plot No. 376 & 91 , Kohi Goth, Landhi, Bin Qasim Town, Karachi, Pakistan

(2) Plot No. 305, Main National Highway, Karachi, Pakistan

(3) Plot No. HX-7, HX-7/1, HX-7/2, HX-7/3, Landhi Industrial Area, Karachi, Pakistan

(4) Plot No. LX-9/1, LX-9/2, LX-9/3 Landhi Industrial Area, Karachi, Pakistan.

(5) Plot No. C-101, C-130 SITE Area Nooriabad, Pakistan.

(6) Choudry Street, Samandri Road, Faisalabad, Pakistan.

Auditors

Ernst Young Ford Rhodes Sidat Hyder

(Chartered Accountants)

Legal Status

Subject Company was established as a Non-Listed Public Limited Company in 1998

Capital

Authorized Capital	Rs. 2,000,000,000/- divided into 200,000,000 shares of Rs. 10/- each
Issued & Paid up Capital	Rs. 1,500,000,000/- divided into 150,000,000 shares of Rs. 10/- each

Details of Directors

Names

Designation

Mr. Muhammad Ali Tabba

Mr. M. Yunus Tabba

Mr. Muhammad Sohail Tabba

Mr. Imran Yunus Tabba

Mr. Javed Yunus Tabba

Mrs. Rahila Aleem

Miss. Mariam A. Razzak

Miss. Zulekha A. Razzak

Chief Executive

Director

Shareholders

Names

No. of Shares

Mr. M. Yunus Tabba

Mr. Muhammad Ali Tabba

Mr. Muhammad Sohail Tabba

Mr. Imran Yunus Tabba

Mr. Javed Yunus Tabba

Mrs. Rahila Aleem

Miss. Mariam A. Razzak

Miss. Zulekha A. Razzak

Mrs. Amina Aziz

Mrs. Kulsoom

YB Holdings (Pvt) Limited, Pakistan

500

149,995,000

Associates

Subsidiary – None

Associated Companies

(1) Lucky Cement Limited, Pakistan.

(2) Gadoon Textile Mills Limited, Pakistan.

(3) Fazal Textile Mills Limited, Pakistan.

(4) Lucky Energy (Private) Limited, Pakistan.

(5) Lucky Textile Mills Limited, Pakistan.

(6) Y.B Pakistan Limited, Pakistan.

(7) Yunus Energy Limited, Pakistan.

(8) Lucky Holding Limited, Pakistan.

(9) Lucky Air (private) Limited, Pakistan.

(10) Fashion Textile Mills (Private) Limited, Pakistan.

(11) Security Electric Power Company Limited, Pakistan.

Business Activities

Subject Company is engaged in the manufacturing and export of Knitted, Weaved and Stitched fabrics & other textile articles.

Its mainly import Textile Raw Materials, Textile Machineries through L/C, D/A, D/P basis.

It sells its product through cash / credit terms in local markets. Whereas in case of export, payment would be accepted through L/C, D/A, D/P basis.

Its main customers are Buying Agencies, Private Companies, International Buyers, Distribution Companies etc.

Subject operates from caption leased factories premises located at industrial centers of Karachi & Faisalabad.

Subject employs about 4,904 persons in its set up.

Annual Sales Volume

Years

In Pak Rupees

2013

2014

26,276,820,000/-

31,116,667,000/-

Annual Production Volume

Annual production capacity of 100 Million meters

Trade Suppliers (Foreign)

Subject mainly import from Companies belongs to China, Japan, Taiwan, Korea, Thailand, India, Indonesia & European Countries

Bankers

(1) Habib Metropolitan Bank Limited, Pakistan.

(2) Faysal Bank Limited, Pakistan.

(3) Soneri Bank Limited, Pakistan.

(4) Askari Bank Limited, Pakistan.

(5) MCB Bank Limited, Pakistan.

(6) NIB Bank Limited, Pakistan.

(7) Bank Alfalah Limited, Pakistan.

(8) Allied Bank Limited, Pakistan.

(9) Bank Al-Habib Limited, Pakistan.

(10) Habib Bank Limited, Pakistan.

(11) United Bank Limited, Pakistan.

(12) Soneri Bank Limited, Pakistan.

Group Profile

Established in 1962 as a fabric trading business house, Yunus Brothers soon become one of the largest conglomerates in Pakistan. Yunus Brothers Group, with investment in Textiles, Cement, Construction, Real Estate, Energy, and Commodity trading business has an annual turnover which exceeds US $ 750 million. Following the footsteps of its parent company, Yunus Textile Mills Limited started its operations in 1998 and within a short span of time became Pakistan’s largest exporter of Home Textile products. In this short time frame, the company has transformed itself from a supplier of basic bedding products to a world renowned supplier of Home Textile Products to top tier retailers and brands across United States and Europe. The latest addition to the fleet of Yunus owned companies is Yunus Textile Mills Spinning plant at Karachi, Pakistan, with a total initial investment of US $ 15 million. This is yet another step towards acquiring continuous vertical growth and provide excellent integrated solutions to its customers.

Memberships

· Pakistan Cloth Merchant Association.

· Pakistan Hosiery Manufacturers & Exporters Association.

· Pakistan Bedwear Exporters Association.

· All Pakistan Textile Mills Association.

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 102.40
UK Pound	1	Rs. 150.50
Euro	1	Rs. 108.50

Comments

Subject Company was established in 1998 and is engaged in manufacture & export of Home Textile Products. Market reputation is sound. Trade relations are reported as fair. 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.62.56
UK Pound	1	Rs.93.56
Euro	1	Rs.67.49

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	VNT

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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