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Report No. : |
353556 |
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Report Date : |
12.12.2015 |
IDENTIFICATION DETAILS
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Name : |
NISHAT (CHUNIAN) LIMITED |
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Registered Office : |
31-Q, Gulberg-II, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
1990 |
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Com. Reg. No.: |
0021135 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Subject is engaged in business of spinning, weaving, dyeing, stitching,
processing, doubling, sizing, buying, selling and otherwise dealing in yarn,
fabric and made-ups made from raw cotton, synthetic fibre and cloth and to
generate electricity for internal use. |
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No. of Employee : |
6,698 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Pakistan |
B1 |
B1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
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NISHAT (CHUNIAN)
LIMITED |
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Registered
Address |
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31-Q, Gulberg-II, Lahore, Pakistan |
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Tel # |
92 (42) 35761730 - 39 |
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Fax # |
92 (42) 35878696 - 97 |
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a. |
Nature of
Business |
Engaged in business of spinning, weaving, dyeing, stitching, processing,
doubling, sizing, buying, selling and otherwise dealing in yarn, fabric and
made-ups made from raw cotton, synthetic fibre and cloth and to generate
electricity for internal use |
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b. |
Year Established |
1990 |
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c. |
Registration No. |
0021135 |
Spinning
1, 4 & 5
49th Kilometre, Multan Road,
Bhai Pheru, Tehsil Chunian,
District Kasur.
Spinning
2, 3 & Weaving
49th Kilometre, Multan Road,
Kamogal, Tehsil Pattoki,
District Kasur.
Dyeing & Printing
4th Kilometre, Manga Road,
Raiwind.
|
Riaz Ahmad & Company (Chartered
Accountants) |
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Public Limited Company (Listed
at stock exchanges of Pakistan) |
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Names |
Designation |
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Mr. Shahzad Saleem Mrs. Farhat Saleem Mr. Yahya Saleem Mr. Aftab Ahmad Khan Mr. M. Imran Rafiq Mr. Shahid A. Malik Mr. Kamran Rasool |
Chairman & Chief Executive Officer Director Director Director Director Director Director |
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Categories |
Percentage (%) |
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Directors, CEO and their spouse and minor children Executives Associated Companies, Undertakings & related parties Public Sector Companies & Corporations NIT & IDBP Banks, Development Financial Institutions & Non Banking Financial
Institutions Insurance Companies Modarbas & Mutual Funds Joint Stock Companies Others General Public |
25.5 25.51 16.64 --- 0.00 10.34 2.46 6.99 3.57 0.87 33.61 |
A. Subsidiary
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(1) Nishat Chunian Power Limited, Pakistan. (2) Nishat Chunian USA Inc, U.S.A. (3) NC Electric Company Limited, Pakistan. |
B. Associated Companies
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(1) D.G. Khan Cement Limited, Pakistan. (2) Mansha Brothers (Pvt) Limited, Pakistan. (3) Nishat Chunian Limited, Pakistan. (4) Umer Fabrics Limited, Pakistan. (5) MCB Bank Limited, Pakistan. (6) Genertech Pakistan Limited, Pakistan. (7) Nishat Finishing Mills. (8) Nishat Capital Management. (9) Trust Management Services. (10) Chunian Fibre. (11) Nishat Europe. (12) Newbery Mansha. (13) D.G. Khan Electric Company. (14) Gulf Nishat Apparel Limited. (New Company) (15) Nishat Shuaiba Paper Products Co. Limited. (16) Nishat Power Limited, Pakistan. (17) Nishat USA Incorporation, U.S.A. (18) Nishat Linen Trading LLC, U.A.E. (19) Nishat Hospitality (Pvt) Limited, Pakistan. (20) Nishat Linen (Pvt) Limited, Pakistan. |
Subject Company is engaged in business of spinning, weaving, dyeing,
stitching, processing, doubling, sizing, buying, selling and otherwise dealing in
yarn, fabric and made-ups made from raw cotton, synthetic fibre and cloth and
to generate electricity for internal use.
Its mainly import Textile Raw Materials, Textile Machineries through L/C, D/P basis.
It sells its product through cash / credit term basis to its domestic
customers.
Its major customers are Buying Agencies, Distributors, Retailers,
International Buyers etc.
Subject operates from caption leased office & factory premises Sq.ft
situated at commercial & industrial centers of Lahore & Punjab.
Subject employs about 6,698
persons in its set up.
|
Year |
In Pak Rupees |
|
2014 |
22,799,758,141/- |
Production
Capacity & actual producton is enclosed in separate file in PDF format
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Major customers are Buying Agencies, Distributors, Retailers,
International Buyers etc |
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(1) Faysal Bank Limited, Pakistan. (2) Silk Bank Limited, Pakistan. (3) Albaraka Islamic Bank B.S.C. (E.C). (4) Meezan Bank Limited, Pakistan. (5) Allied Bank of Pakistan Limited, Pakistan. (6) National Bank of Pakistan, Pakistan. (7) Askari Bank Limited, Pakistan. (8) Bank Alfalah Limited, Pakistan. (9) Standard Chartered Bank, Pakistan. (10) Citibank N.A., Pakistan. (11) The Bank of Punjab, Pakistan. (12) HSBC Bank Middle East Limited, Pakistan. (13) Deutsche Bank A.G., Pakistan. (14) Soneri Bank Limited, Pakistan. (15) Habib Bank Limited, Pakistan. (16) United Bank Limited, Pakistan. (17) Habib Metropolitan Bank Limited, Pakistan. |
Historically NCL
has been a market leader in ground breaking decisions and this year is no
different. We have formally signed a contract for a 46 MW coal based captive
power plant which will commence operations in March 2016. This initiative will
significantly reduce our cost of production. Currently we are paying Rs13- 14
per unit as energy cost and we expect this project to bring these costs down by
Rs 3-4 per unit translating into huge savings which will help bolster the
shrinking margins in the textile business. For the foreseeable future we will
not be expanding capacities in our textile business as a tactical choicethe
focus will be on expanding the customer base and our product portfolio. The
next few years will see NCL fortify and integrate the benefits of the growth it
has witnessed in the last few years. On the whole the future of the company
looks very encouraging. The Group is well placed to achieve further success and
build shareholder value in the years ahead..
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 |
Mansha Group enjoys excellent
credibility in Pakistan as well as in abroad. Directors of the Company are reported
as qualified, experienced and resourceful businessmen. Payments are usually
correct and as per commitments. Company can be considered good for normal
business dealings at usual trade terms and conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.79 |
|
|
1 |
Rs.101.10 |
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Euro |
1 |
Rs.73.10 |
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PKR |
1 |
Rs.0.64 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
AMT |
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Report Prepared
by : |
ANK |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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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.