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Report No. : |
357478 |
|
Report Date : |
31.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
N.P. COTTON
MILLS (PVT) LIMITED |
|
|
|
|
Registered Office : |
702, Uni Tower, I.I. Chundrigar Road, Karachi |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
30.06.2014 |
|
|
|
|
Date of Incorporation : |
1986 |
|
|
|
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Com. Reg. No.: |
0015323 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacture and Sale
of Yarn including Cotton / Pc Yarn, Cotton Canvas Tarpaulins
, Car / Mc Covers / Drop Cloth |
|
|
|
|
No. of Employees : |
1,772 |
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 : |
No Complaints |
|
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 |
N.P. COTTON MILLS (PVT) LIMITED
|
Registered
Address |
|
702, Uni Tower, I.I. Chundrigar Road,
Karachi, Pakistan |
|
Tel # |
92 (21) 32410663, 32410664, 32417975 |
|
Fax # |
92 (21) 32416645 |
|
Email |
|
a. |
Nature of Business |
Manufacture and sale
of yarn including Cotton / Pc Yarn, Cotton Canvas Tarpaulins
, Car / Mc Covers / Drop Cloth |
|
b. |
Year Established |
1986 |
|
c. |
Registration No. |
0015323 |
D-124, H.I.T.E., L.I.E.D.A. District,
Lasbella, Baluchistan,
Pakistan
|
BDO Ebrahim & Co. (Chartered Accountants) |
|
Subject Company was established as a Public Limited Company in 1986 |
|
Authorized Capital |
Rs. 250,000,000/-
divided into 2,500,000 shares of Rs. 100/- each |
|
Issued & Paid up Capital |
Rs. 100,000,000/- divided
into 1,000,000 shares of Rs. 100/- each |
|
Names |
Designation |
|
Mr. Khurram Inam Mr. Inamur Rehman Mrs. Summaya Rehman Mr. Asif Inam |
Chief Executive Director Director Director |
|
Names |
No. of Shares |
|
Mr. Inamur Rehman Mrs. Summaya Rehman Mr. Asif Inam Mr. Khurram Inam |
249,900 100 240,000 510,000 |
A. Subsidiary
None
B. Associated Companies
|
(1) Diamond International
Corporation Limited, Pakistan. (2) Water Proof Industries, Pakistan. (3) N.P. Spinning
Mills Limited, Pakistan. |
Subject Company is engaged in manufacture and sale of yarn including Cotton / Pc Yarn, Cotton Canvas Tarpaulins ,
Car / Mc Covers / Drop Cloth.
Its mainly import Textile Raw Materials, Textile Machineries through L/C,
D/P basis.
It sells its product through L/C, D/P basis to its foreign
customers.
Its exporting countries are European Countries & Far East Countries.
Its importing countries are China, Taiwan, Korea, Japan, Hong Kong &
European Countries.
Its major customers are Buying Agencies, Private Companies,
International Buyers etc.
Subject operates from caption leased office & factory premises
situated at commercial & industrial centers of Karachi & Baluchistan.
Subject employs about 1,772 persons in its set up.
|
Years |
In Pak Rupees |
|
2013 2014 |
3,840,509,486/- 4,906,060,870/- |
Annual production volume is indeterminable as
it mainly depends upon the Requirement / demand from their domestic as well as
international market
|
(1) MCB Bank Limited,
Pakistan. (2) Habib Metropolitan
Bank Limited, Pakistan. (3) Habib Bank
Limited, Pakistan. (4) United Bank
Limited, Pakistan. (5) Soneri Bank
Limited, Pakistan. |
Despite of the difficulties of the recent
past, your management is making serious efforts and is fully aware of the
upcoming challenges as well as opportunities and will make every possible
effort to keep on growing. Efficient planning in the procurement of raw
material, optimum use of manpower, material and machinery, aggressive marketing
and encashing opportunities are the principles of management to secure
continued future growth.
All Pakistan Textile Mills Association.(APTMA)
Karachi Chamber of Commerce & Industry.(KCCI)
|
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 1986 and is engaged in manufacture & sale of Yarn. Directors of the Company are reported as qualified, experienced and
resourceful businessmen. 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.98.55 |
|
Euro |
1 |
Rs.72.60 |
|
PKR |
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 : |
TPT |
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.