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Report No. : |
354951 |
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Report Date : |
19.12.2015 |
IDENTIFICATION DETAILS
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Name : |
DIN TEXTILE MILLS LIMITED |
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|
|
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Registered Office : |
Din House, 35-A/1, Lalazar Area, Opp. Beach Luxury Hotel, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2015 |
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Year of Establishment : |
1988 |
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Com. Reg. No.: |
0018066 |
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Legal Form : |
Company is Limited by Shares |
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|
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Line of Business : |
The principal business of the company is to manufacture and sale of
yarn |
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|
|
|
No. of Employees : |
2,724 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
|
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 |
|
Business Name |
DIN TEXTILE
MILLS LIMITED |
|
Registered Address |
|
Din House, 35-A/1, Lalazar Area, Opp. Beach
Luxury Hotel, Karachi, Pakistan |
|
Tel # |
92 (21) 35610001, 3 |
|
Fax # |
92 (21) 35610009, 35610455 |
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Website |
|
|
Email |
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a. |
Nature of Business |
The principal business of the company is to manufacture and sale of
yarn |
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b. |
Year Established |
1988 |
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c. |
Registration # |
0018066 |
|
(1) Unit-I and
II: Kot Akbar Khan, 70 Km Multan Road, Tehsil Pattoki, District Kasur,
Punjab, Pakistan. (2) Unit-III: Revenue
Estate, Bhai Kot, Tablighi Chowk, Raiwind Road, Tehsil and District, Lahore,
Punjab, Pakistan. (3) Unit-IV: 48 Km Multan Road, Bhai Pheru, District Kasur, Punjab,
Pakistan. (4) Unit-V:
Dars Road, Off Raiwind Manga Road, Bachuki Majha Distt. Kasur, Punjab,
Pakistan. |
|
Address |
Din House, 16-M Model Town Extension, Lahore, Pakistan |
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Tel # |
92 (42) 35168201, 3 |
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Fax # |
92 (42) 35168206 |
|
Mushtaq & Co. (Chartered
Accountants) |
|
The company is limited
by shares, incorporated in Pakistan on June 13, 1988 and is listed at stock
exchanges of Pakistan |
|
Names |
Designation |
|
Mr. Shaikh
Mohammad Muneer Mr. Shaikh
Mohammad Pervez Mr. Shaikh
Muhammad Tanveer Mr. Shaikh
Muhammad Naveed Mr. Faisal
Jawed Mr. Farhad
Shaikh Mohammad Mr. Abdul
Razzak Tarmuhammad |
Chairman / Chief Executive Director Director Director Director Director Director |
|
Categories |
Percentage (%) |
|
Individuals Others Directors, Chief Executive & their spouses & minor children Executives Public Sector Companies & Corporations Associated Companies Banks, DFI’s Non-Banking Finance Companies Mutual Funds Foreign Investors |
32.08 11.02 42.11 12.68 1.66 0.03 0.17 0.24 --- |
(1) Din Leather Private Limited, Pakistan.
Din Parekh Chemicals (Pvt.) Limited, Pakistan.
Din Power Limited, Pakistan
Din Farm Products (Pvt.) Limited, Pakistan.
The principal business of the company is to manufacture and sale of yarn
2,724
|
Years |
In Pak Rupees |
|
2013 2014 2015 |
8,296,374,468/- 10,211,073,667/- 8,552,540,730/- |
It is difficult
to describe precisely the production capacity in textile industry since it
fluctuates widely depending on various factors such as count of yarn spun, raw
material used, spindle speed and twist. It would also vary according to the
pattern of production adopted in a particular year.
2015 2014
Total number of spindles installed 98,304
98,304
Total number of spindles worked 82,685
91,737
Number of shifts per day 3 3
Installed capacity of yarn converted into 20/s
count-Kgs 29,017,833 31,940,996
Actual production of yarn converted into 20/s
count-Kgs 23,385,231 27,268,608
Actual production is lower than capacity due to the manufacturing of
specialized Mélange yarn and periodic repair and maintenance.
|
Mainly to Korea, Hong
Kong, China, Taiwan & Turkey |
|
Various domestic & International |
Allied Bank Ltd,
Pakistan.
Barclays Bank
PLC, Pakistan.
Dubai Islamic
Bank Pakistan Ltd, Pakistan.
Faysal Bank Ltd,
Pakistan.
Habib Bank Ltd,
Pakistan.
Habib
Metropolitan Bank Ltd, Pakistan.
MCB Bank Ltd,
Pakistan.
Meezan Bank Ltd, Pakistan.
National Bank of
Pakistan, Pakistan.
(10) Standard
Chartered Bank, Pakistan.
(11) The Bank of
Punjab, Pakistan.
Sound
The raw material
prices are under pressure due to surplus global production. The increase in
production of raw cotton in countries like India and china is more than
Pakistan; therefore, these countries will have a competitive advantage over
Pakistan. In addition, these countries are also giving tremendous incentives to
their local industry for capacity expansion which is a challenge for Pakistani
Industry, especially in a scenario where cost of power and other inputs have
increased substantially in Pakistan. In spite of these challenges, the
management is making its best efforts to make the operation as efficient as
possible.
From the day of
inception, Din Textile has been constantly striving to achieve excellence and
generate highest value for all of its stakeholders. Today Din Textile holds an
unchallenged position at forefront of industry, within the country and overseas
for its groundbreaking developments and innovative products line, Din Textile
has gained immense trust for delivering superior quality products for exceeding
the customer expectations.
KCCI
FPCCI
APTMA
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 106.10 |
|
UK Pound |
1 |
Rs. 159.75 |
|
Euro |
1 |
Rs. 116.00 |
Din Group of Companies is engaged in diversified activities which
includes Textiles, Fuel & Energy, Chemicals, Leather, Garments etc. Group
is well known and directors are resourceful and experienced businessmen.
Subject is a well-established company enjoying satisfactory share of its market
products. 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.66.42 |
|
|
1 |
Rs.99.17 |
|
Euro |
1 |
Rs.72.14 |
|
PAK |
1 |
Rs.0.63 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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 |
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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 |
|
|
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 |
|
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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 |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
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.