|
Report No. : |
352947 |
|
Report Date : |
07.12.2015 |
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) : |
30.06.2015 |
|
|
|
|
Date of Incorporation : |
1990 |
|
|
|
|
Com. Reg. No.: |
0021863 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Engaged in Manufacturing & Sale of Yarn |
|
|
|
|
No. of Employees : |
985 |
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 : |
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, 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 exports has 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 the mid-2000s, 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 sectors 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 |
IDREES TEXTILE MILLS LIMITED
|
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 |
|
a. |
Nature of Business |
Engaged in manufacturing & sale of yarn |
|
b. |
Incorporated |
1990 |
|
c. |
Registration No. |
0021863 |
Kot Shah Mohammad, Tehsil Nankana,
District Nankana, Punjab
|
M. Yousuf Adil Saleem & Co. (Chartered Accountants) |
|
The Company was incorporated in Pakistan as
a public limited company in 1990 and is listed at Stock Exchanges of Pakistan |
|
Names |
Designation |
|
Mr. S.M. Idrees
Allawala Mr. S. M.
Mansoor Allawala Mr. Kamran
Idrees Allawala Mr. Naeem
Idrees Allawala Mr. Omair Idrees
Allawala Mr. Rizwan
Idrees Allawala Mr. Muhammad
Israil Mr. Muhammad
Saeed |
Chairman Chief Executive Director Director Director Director Director Director |
|
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 |
6..372 61.213 0.007 0.939 31.469 |
A. Subsidiary
None
B. Associated Companies
Shama Enterprises (Pvt)
Limited, Pakistan.
Bilal Omair Textile
Mills (Pvt) Limited, Pakistan.
Engaged in manufacturing & sale of yarn
985
|
Description |
2015 (Kgs) |
2014 (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 7,635,988 |
14,795,745 9,387,954 |
|
Years |
In Pak Rupees |
|
2014 2015 |
2,901,068,553/- 2,306,871,955/- |
Various International belongs to China,
Korea, India, Japan, Singapore, Indonesia & European Countries
|
(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. |
Demand of yarn in
the local & international market has caused a downward trend in its price. In
order to run the business control costs at all levels. Recently, the government
has enormously increased the gas tariff for which is like adding fuel to fire.
gas, coal and solar energy projects planned under the China-Pakistan Economic
Corridor (CPEC) framework planned under CPEC would sustain economic growth.
Reduced international oil price, healthy low inflation, reduced steps announced
in the textile policy 2014-2019, aiming to double the exports of textile
industry in the next, may provide the much needed stimulus to the country’s
ailing economy. Resolution of Greek crisis has also revitalized status which
continues to show positive impact. The management of your Company is diligently
working to explore new export e efficiency & improve quality through BMR
besides endeavoring to optimize energy cost. Concerted efforts direly needed on
the part of the government for sustainability and growth of the textile sector.
All Pakistan Textile Mills Association.(APTMA)
Karachi Chamber of Commerce & Industry.(KCCI)
Federation Pakistan Chamber of Commerce &
Industry.(FPCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 105.90 |
|
UK Pound |
1 |
Rs. 161.50 |
|
Euro |
1 |
Rs. 113.50 |
Subject Company was
established in 1990 and is engaged in manufacture & sale of Yarn. 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.66.84 |
|
|
1 |
Rs.101.04 |
|
Euro |
1 |
Rs.73.05 |
|
PKR |
1 |
Rs.0.64 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.