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Report No. : |
354618 |
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Report Date : |
22.12.2015 |
IDENTIFICATION DETAILS
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Name : |
TEXTILE CONNECTIONS |
|
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|
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Registered Office : |
Plot # 30/A/2, Sector-23, Korangi Industrial Area, Karachi |
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Country : |
Pakistan |
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Date of Incorporation : |
1996 |
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Legal Form : |
Proprietorship |
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|
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Line of Business : |
Engaged in manufacture & export of Home
Textile Products, Knit / Woven Products |
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|
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No. of Employees : |
190 |
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 |
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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.
|
Source
: CIA |
In absence of financials, no credit limit could be recommended.
TEXTILE CONNECTIONS
|
Registered Address |
|
Plot # 30/A/2, Sector-23, Korangi Industrial
Area, Karachi, Pakistan |
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Tel # |
92 (21) 35121229, 35121228 |
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Fax # |
92 (21) 35121228 |
|
a. |
Nature of Business |
Engaged in manufacture & export of Home
Textile Products, Knit / Woven Products |
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b. |
Year Established |
1996 |
Suite # 605, 6th Floor, Business &
Finance Center, I.I. Chundrigar Road,
Karachi, Pakistan
|
Subject Company was established as a Proprietorship business in 1996 |
|
Names |
Nationality |
Address |
Occupation |
Designation |
|
Mr. Raza Kapadia Mr. Faizan Ur Rehman |
Pakistani Pakistani |
Suite # 605, 6th Floor, Business & Finance Center, I.I.
Chundrigar Road, Karachi Suite # 605, 6th Floor, Business & Finance Center, I.I. Chundrigar Road, Karachi |
Business Business |
CEO / Proprietor Director / Manager |
A. Subsidiary
None
B. Associated
Companies
-
Do -
Engaged in manufacture & export of Home Textile
Products, Knit / Woven Products
190
|
Annual production volume is indeterminable as its mainly depend upon
the demand / requirements from their domestic as well as international
customers |
|
Mainly to U.S.A. & European Countries |
|
Major customers are Distribution Companies,
Buying Agencies, International Buyers etc |
|
Year |
In Pak Rupees |
|
2014 |
180,000,000/- (Estimated) |
Faysal Bank Limited,
Pakistan.
Habib Bank Limited,
Pakistan.
Soneri Bank Limited,
Pakistan.
Bank Alfalah Limited,
Pakistan.
Standard Chartered
Bank, Pakistan.
Payments would be accepted / made through L/C, D/P basis to its trade suppliers / customers
globally
Karachi Chamber of Commerce & Industry.(KCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 106.20 |
|
UK Pound |
1 |
Rs. 158.20 |
|
Euro |
1 |
Rs. 115.00 |
Subject Company was established in 1996 and is engaged in manufacture & export of Home Textile
Products, Knit / Woven Products. Overall reputation is satisfactory.
Trade relations are reported as fair. Subject can be considered for normal
business dealing at usual terms and conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.32 |
|
|
1 |
Rs.98.98 |
|
Euro |
1 |
Rs.72.13 |
|
PKR |
1 |
Rs.0.63 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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 |
|
|
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 |
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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.