|
Report No. : |
353216 |
|
Report Date : |
09.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
KHAS TEXTILE MILLS (PVT) LIMITED |
|
|
|
|
Registered Office : |
Khas House, K-2/3, 2/4 & 2/5, Chaudhry
Khaliq-Uz-Zaman Road, Karachi |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Date of Incorporation : |
2001 |
|
|
|
|
Com. Reg. No.: |
0043031 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in manufacture &
sale of cotton yarn |
|
|
|
|
Employees: |
360 |
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 : |
Satisfactory |
|
Payment Behaviour : |
Slow but correct |
|
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 |
KHAS TEXTILE MILLS
(PVT) LIMITED
|
Registered
Address |
|
Khas House,
K-2/3, 2/4 & 2/5, Chaudhry Khaliq-Uz-Zaman Road, Karachi, Pakistan |
|
Tel # |
92 (21) 35824935
- 38 (4 Lines) |
|
Fax # |
92 (21)
35832025 |
|
Email |
|
a. |
Nature of
Business |
Engaged in
manufacture & sale of cotton yarn |
|
b. |
Incorporated |
2001 |
|
c. |
Registration No. |
0043031 |
(1) Plot A-88,
S.I.T.E., Nooriabad, District Jamshoro, Sindh, Pakistan.
(2) C-7, South
Avenue, S.I.T.E., Karachi, Pakistan.
Shahid Waheed
Younus Jamil
(Chartered
Accountants)
The Company was
incorporated in Pakistan as a private limited company in 2001
|
6. |
Authorized Capital |
Rs. 350,000,000/- |
|
|
Issued & Paid
up Capital |
Rs. 340,000,000/- |
|
Names |
Designation |
|
Mr. Khuram Ashfaq Mr. Ashfaq
Ahmed Mr. Noman
Ashfaq Mrs. Nasreen
Begum Mrs. Saira
Noman |
Chief Executive Director Director Director Director |
|
Names |
No. of Shares |
|
Mr. Khuram
Ashfaq Mr. Ashfaq
Ahmed Mr. Noman
Ashfaq Mrs. Nasreen
Begum Mrs. Saira
Noman |
13,600,000 3,400,000 11,220,000 3,400,000 2,380,000 |
A. Subsidiary
None
B. Associated
Companies
Art Act,
Pakistan.
Khas Trading
Company, Pakistan.
Engaged in
manufacture & sale of cotton yarn
360
10,560 Spindles
|
Year |
In
Pak Rupees |
|
2014 |
850,000,000/- (Estimated) |
Various International belongs to China, Korea, India, Japan, Singapore,
Indonesia & European Countries
(1) Dubai Islamic Bank Pakistan Limited, Pakistan.
(2) Meezan Bank Limited, Pakistan.
(3) Bank Alfalah Limited, Pakistan.
(4) United Bank Limited, Pakistan.
(4) Summit Bank Limited, Pakistan.
(Total Mortgage
Obtained PKR: 1,640,786,613/-)
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.
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 2001 and is engaged in manufacture
& sale of cotton yarn. Directors of the Company are reported as qualified, experienced and resourceful
businessmen. Payments are slow but 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.66.80 |
|
|
1 |
Rs.100.49 |
|
Euro |
1 |
Rs.72.52 |
|
PKR |
1 |
Rs.0.64 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared by
: |
SDA |
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.