|
Report No. : |
353558 |
|
Report Date : |
17.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
FEROZE1888 MILLS LIMITED |
|
|
|
|
Registered Office : |
H-23/4A, Landhi
Industrial Area, Landhi, Karachi |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
30.06.2015 |
|
|
|
|
Date of Incorporation : |
1972 |
|
|
|
|
Com. Reg. No.: |
0003794 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Subject Company is principally engaged in production
and export of Towels. |
|
|
|
|
Employees: |
About 2,951 persons |
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 |
FEROZE1888 MILLS
LIMITED
|
Registered
Address |
|
H-23/4A, Landhi Industrial Area, Landhi, Karachi, Pakistan |
|
Tel # |
92 (21)
35080648, 35082827 |
|
Fax # |
92 (21)
35082826 |
|
a. |
Nature of
Business |
Company is
principally engaged in production and export of Towels |
|
b. |
Incorporated |
1972 |
|
c. |
Registration No. |
0003794 |
|
In Karachi at present |
|
Rahman Sarfaraz
Rahim Iqbal Rafiq (Chartered Accountants) |
|
Subject Company was established as a Public
Limited Company in 1972 and is listed at Karachi Stock Exchange of Pakistan |
|
6. |
Authorized Capital |
Rs. 4,000,000,000/- |
|
|
Issued & Paid up Capital |
Rs. 3,768,009,680/- |
|
Names |
Designation |
|
Mr. Anas Rahman Mr. Jawed Yunus
Tabba Mr. Jonathan R.
Simon Mr.
Khaleeq-Ur-Rahman Mr. Pervez
Saeed Mr. Perwez
Ahmed Mr. Shabbir
Ahmed Mr. Sheikh
Zafar Ahmed |
Chief Executive Director Director Chairman Director Director Director Director |
|
Categories |
Percentage (%) |
|
Directors,
Chief Executive Officer, their spouse and minor children NIT & ICP Banks,
Development Finance Institutions, Non-Banking Finance Institutions and others Shareholding
10% or more General Public |
46.79 0.00 0.00 18.63 34.58 |
A. Subsidiary
None
B. Associated
Companies
- Do -
Subject Company is principally engaged in
production and export of Towels.
Payments would be
accepted / made through L/C, D/P
basis.
Its exporting
Countries are European Countries & U.S.A.
It’s mainly import from China, India, Taiwan,
Hong Kong, Thailand, Indonesia, Korea, Japan & European Countries.
Its major customers are Buying Agencies,
Distribution Companies, International Buyers etc.
Subject operates from caption leased premises located at commercial & industrial
centers of Karachi.
Subject employs about 2,951 persons in its set up.
|
Years |
In
Pak Rupees |
|
2014 2015 |
17,697,272,000/- 17,533,227,000/- |
|
Subject import globally from Companies
belongs to China, India,
Taiwan, Hong Kong, Thailand, Indonesia, Korea, Japan & European Countries |
|
(1) Askari Bank Limited, Pakistan. (2) Bank Al-Habib Limited, Pakistan. (3) Habib Bank Limited, Pakistan. (4) Habib Metropolitan Bank Limited, Pakistan. (5) Meezan Bank Limited, Pakistan. (6) Standard Chartered Bank, Pakistan. (7) United Bank Limited, Pakistan. |
Towels Looms Capacity Actual
2015 298 106,673,278 97,680,567
2014 281 93,142,493 77,147,966
Actual production achieved was lower than
the capacity due to change in product mix caused by orders.
Though under the Textile Policy 2014-2019 the Government plans to double
the textile exports from US$ 13 billion to US $ 26 billion but does not seems
serious as to achieve the same. The relevant example will be wide spread
currency devaluation ranging from Europe, Africa, Latin America and Asia was
witnessed whereas Pakistan on the contrary tried to maintain its currency
against all calculations, demands and advice. It’s high time to realize that to
ensure competitiveness of textile industry in the region the Government has to
take measures and have continued/consistent policy to keep Rupee value against
the US$ realistic and also to provide uninterrupted energy supply at
competitive rates and liquidation of claims and refunds as per commitment and
through automated process. In energy sector one may live with hopes that beyond
2017 the situation may improve but on the remaining two all signs are negative
and discouraging. Imposing of GIDC again and enhancing energy cost despite
unprecedented low international fuel are not a prudent decision as are adding
to cost further besides, increase in minimum wage for two consecutive years.
The government must make on agenda to achieve the targets set in the Textile
Policy and take such corrective actions without further delay to alleviate or
at least ease out the problems faced by textile industry and make it
competitive with regional players in terms of input costs, such as utility,
timely refunds and fair exchange rate as highest priority.
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 1972 and is engaged in production and export of Towels. 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.66.85 |
|
|
1 |
Rs.100.58 |
|
Euro |
1 |
Rs.73.16 |
|
PKR |
1 |
Rs.0.63 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
AMR |
|
|
|
|
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.