|
Report No. : |
356376 |
|
Report Date : |
25.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
BLESSED TEXTILES LIMITED |
|
|
|
|
Registered Office : |
Umer House, 23/1, Sector 23, S.M. Farooq Road, Korangi Industrial Area, Karachi |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Year of Establishment : |
1987 |
|
|
|
|
Com. Reg. No.: |
0016807 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
The Company is primarily a spinning unit engaged in the manufacture
& sale of Yarn & Woven Fabric. It is also engaged in the generation
of electricity for self consumption. |
|
|
|
|
No. of Employees : |
1,152 |
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 |
|
Business Name |
BLESSED TEXTILES LIMITED |
|
Registered Address |
|
Umer House, 23/1, Sector 23, S.M. Farooq
Road, Korangi Industrial Area, Karachi, Pakistan |
|
Tel # |
92 (21) 35115177, 35115178,
35115179, 35115180 |
|
Fax # |
92 (21) 35063002, 35063003 |
|
Email |
|
a. |
Nature of Business |
The Company is primarily a spinning unit engaged in the manufacture
& sale of Yarn & Woven Fabric. It is also engaged in the generation
of electricity for self consumption |
|
b. |
Incorporated |
1987 |
|
c. |
Registration No. |
0016807 |
9th Floor, City Towers, 6-K, Main
Boulevard, Gulberg II, Lahore,
Pakistan
|
Spinning & weaving units are situated
at Feroz Watwan, Sheikhupura, Punjab |
|
Rehman Sarfaraz Rahim Iqbal Rafiq (Chartered
Accountants) |
|
The
Company is incorporated as a Public Limited Company and its shares are listed
at stock exchanges of Pakistan |
|
Names |
Designation |
|
Mr. Mohammad Salim Mr. Mohammad Amin Mr. Khurram Salim Mr. Bilal Sharif Mr. Adil Shakeel Mr. Mohammad Sharif Mr. Mohammad Shaheen Mr. Mohammad Shakeel Mr. Iqbal Mehboob |
Chairman Chief Executive Director Director Director Director Director Director Director |
|
Categories |
Percentage (%) |
|
Directors, Chief Executive & their spouses & minor children Associated Companies, Undertaking and Related Parties Banks & Financial Institution Insurance Companies General Public / Individuals Joint Stock Companies Others Companies |
41.35 43.15 0.00 6.12 9.28 0.01 0.09 |
|
(1) Bhanero Textile Mills Limited, Pakistan. (2) Firhaj Footwear (Pvt) Limited, Pakistan. (3) Faisal Spinning Mills Limited, Pakistan. (4) Bhanero Energy Limited, Pakistan. (5) Bhanero Textile Power Generation, Pakistan. (6) Faisal Spinning Power Generation, Pakistan. (7) City Towers, Pakistan. (8) S.M. Saeed Goreja, Pakistan. |
The Company is primarily a spinning unit
engaged in the manufacture & sale of Yarn & Woven Fabric. It is also
engaged in the generation of electricity for self consumption
1,152
|
Years |
In Pak Rupees |
|
2014 2015 |
7,379,595,796/- 7,623,285,484/- |
Unit 2015 2014
Spinning
Number of spindles installed No.
59,136 55,872
Plant capacity on the basis of
utilization converted into
20s count Kgs
‘000 21,636 21,016
Actual production converted into
20s count Kgs ‘000 19,934 14,949
Weaving
Number of looms installed No. 139) 136)
Plant capacity on the basis of
utilization converted into
50 pick Mtrs‘000 13,313 19,771
Actual production converted into
50 picks Mtrs‘000
11,456) 19,735
It is difficult to precisely compare
production capacity and the resultant production converted into base count in
the textile industry since it fluctuates widely depending on various factors
such as count of yarn, spun, raw materials used, spindle speed and twist, picks
etc. it would also vary according to the pattern of production adopted in a
particular year.
Power
Installed capacity Mwhs 47,304 47,304
Power generated Mwhs
16,872 8,668
Actual power generated is less than the
installed capacity because requirement for self consumption is less then the
installed capacity.
|
Mainly to European Countries, U.S.A. & Far Eastern Countries |
|
Various Local & International |
|
(1) Bank Al-Habib
Limited, Pakistan. (2) Dubai Islamic
Bank, Pakistan. (3) MCB Bank Limited,
Pakistan. (4) Meezan Bank
Limited, Pakistan. (5) Standard
Chartered Bank, Pakistan. (6) United Bank
Limited, Pakistan. (7) Samba Bank
Limited, Pakistan. |
Sound
Textile sector is
considered as Pakistan's largest industry, the biggest employer and
contributing 60 percent of overall export receipts. In recent past years it was
competing successfully worldwide but now it is being affected due to its
competitors like Bangladesh, India, Vietnam, Thailand, and China. The reasons
behind of such situation are lack of new investment in technology, failure to
upgrade machineries, high production cost, and lack of government interest.
Government should develop and implement a comprehensive textile policy on broad
basis in order to compete in the world.
Currently the
price of cotton is around PKR 4,700 per maund. As per the estimate the local
production of cotton will be around 13.3 million bales whereas the estimate of
cotton consumption is around 14.5 million bales. The current cotton stock to
use ratio of the world is around 99% as per USDA's latest reports. Therefore,
it is expected that the prices of cotton will be moderate in subsequent quarter
and foresee a challenging period ahead to maintain profitability of the company
based on prolong sluggish demand of yarn in local and international markets and
increases in gas and electricity tariff. Continuous depreciation of Pakistani
Rupee is also concern because it is a main cause of increase in inflation of
day to day use of auxiliary products and services. The results of the first
quarter of the next fiscal year will depend on the direction of cotton prices
and demand of yarn. The management expects a lower profitability in subsequent
period.
KCCI
FPCCI
APTMA
|
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 1987. The Company is primarily a spinning unit
engaged in the manufacture & sale of Yarn & Woven Fabric. It is also
engaged in the generation of electricity for self consumption. Directors of the
Company are reported as qualified, experienced and 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.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
PAK |
1 |
Rs.0.63 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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 |
|
|
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.