MIRA INFORM REPORT

 

 

Report No. :

337438

Report Date :

22.08.2015

 

IDENTIFICATION DETAILS

 

Name :

IHSAN COTTON PRODUCTS (PVT) LIMITED

 

 

Registered Office :

F-207, Textile Avenue, Off: Poly Technique College, S.I.T.E., Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

1991

 

 

Com. Reg. No.:

0023183

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Engaged in Manufacture & Marketing of Yarn

 

 

No. of Employees :

620

 

 

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

 

Maximum Credit Limit :

USD 2499375

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Pakistan

B1

B1

 

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

Business Name

 

IHSAN COTTON PRODUCTS (PVT) LIMITED

 

 

Full Address       

 

Registered Address

 

F-207, Textile Avenue, Off: Poly Technique College, S.I.T.E., Karachi, Pakistan

                       

Tel #

92 (21) 32576691 - 94 (4 Lines)

Fax #

92 (21) 32573828

 

 

Short Description Of Business

 

a.

Nature of Business      

Engaged in manufacture & marketing of Yarn

b.

Year Established

1991

c.

Registration #

0023183

 

 

Factory Location

 

4-K.M., Raiwind Manga Road,

Raiwind, Lahore, Pakistan

 

 

Auditors

 

BDO Ebrahim & Co.

(Chartered Accountants)

2nd Floor, Block C, Lakson Square Building No. 1, Sarwar Shaheed Road, Karachi, Pakistan

 

 

Legal Status

 

Subject Company was established as a Private Limited Company in 1991

 

Authorized Capital    

Rs. 50,000,000/- divided into 5,000,000 shares of Rs. 10/- each

Issued & Paid up Capital

Rs. 49,987,500/- divided into 4,998,750 shares of Rs. 10/- each

 

 

Details of Directors

 

Names

 

Nationality

Address

Occupation

Designation

Mr. Asif Ihsan

 

 

 

 

Mr. Mahmood Ihsan

 

 

 

 

Mr. Nadeem Ihsan

Pakistani

 

 

 

 

Pakistani

 

 

 

 

Pakistani

 

 

F-207, Textile Avenue, Off: Poly Technique College, S.I.T.E., Karachi

 

F-207, Textile Avenue, Off: Poly Technique College, S.I.T.E., Karachi

 

F-207, Textile Avenue, Off: Poly Technique College, S.I.T.E., Karachi

Business

 

 

 

 

Business

 

 

 

 

Business

Chief Executive

 

 

 

Director

 

 

 

 

Director

 

 

 

Shareholders                

 

Names

 

No. of Shares

Mr. Javed Ihsan

 

Mr. Mahmood Ihsan

 

Mr. Nadeem Ihsan

 

Mr. Asif Ihsan

 

Mrs. Rafat Javed

 

Mr. Ahsan A. Ihsan

 

Mr. Shahryar M. Ihsan

 

Mr. Bilal A. Ihsan

 

Mr. Junaid N. Ihsan

 

Mr. Faizan N. Ihsan 

 

Mr. Yahya M. Ihsan

 

Mr. Arsalan N. Ihsan

287,670

 

112,488

 

424,539

 

737,235

 

624,360

 

312,696

 

624,747

 

312,438

 

312,696

 

312,438

 

624,747

 

312,696

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

None

           

B.         Associated Companies

 

Fazal Industries, Pakistan.

Ihsan Sons (Pvt) Limited, Pakistan.

Ihsan Raiwind Mills (Pvt) Limited, Pakistan.

 

 

Business Activities

 

Subject Company is principally engaged in manufacture & marketing of Yarn.

 

It’s mainly import through L/C, D/P basis to its trade suppliers globally.

 

Its brand names are “WHITE HORSE”, “TWO BULLS”, “EAGLE”

 

It sells its products through cash / credit term basis to its domestic customers.

 

In case of export, payments would be accepted through L/C, D/P basis

 

Its mainly export to Gulf & Far East Countries.

 

Its major customers are Buying Agencies, Distribution Companies, international Buyers etc.

 

Subject operates from caption leased office premises situated at commercial & industrial centers of Karachi & Lahore.

 

Subject employs about 620 persons in its set up.

 

 

Annual Sales Volume

 

Years      

 

In Pak Rupees

2013

2014

2,230,650,445/-

2,094,405,237/-

                                                                               

 

Trade Suppliers (Foreign)

           

Subject import globally from Companies belongs to Europe, India, China, Korea, Indonesia, Taiwan & Thailand

 

 

Bankers

 

(1) Bank Alfalah Limited, Pakistan.

(2) Habib Bank Limited, Pakistan.

(3) Faysal Bank Limited, Pakistan.

(4) Meezan Bank Limited, Pakistan.

(5) United Bank Limited, Pakistan.

(6) Allied Bank Limited, Pakistan.

(7) Soneri Bank Limited, Pakistan.

 

(Total Mortgage obtained PKR: 304,451,900/-)

 

 

Memberships

 

KCCI

FPCCI

APTMA

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 103.70

UK Pound

1

          Rs. 161.60

Euro

1

          Rs. 114.50

 

 

Comments

 

Subject Company was established in 1991 and is engaged in manufacture & marketing of Yarn. 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.65.83

UK Pound

1

Rs.103.39

Euro

1

Rs.74.27

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 

               

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.