MIRA INFORM REPORT

 

 

Report No. :

302733

Report Date :

12.01.2015

 

IDENTIFICATION DETAILS

 

Name :

SAPPHIRE FINISHING MILLS LIMITED

 

 

Registered Office :

212, Cotton Exchange Building, I.I. Chundrigar Road, Karachi

 

 

Country :

Pakistan

 

 

Date of Incorporation :

2000

 

 

Com. Reg. No.:

0041526

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Subject is engaged in processing, dyeing, bleaching and finished textile products & stitched garments.

 

 

No. of Employees

2,350

 

 

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 :

Satisfactory

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Pakistan

B2

B2

 

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-fifth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings, and Pakistan's failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Official unemployment was 6.6% in 2013, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty. As a result of political and economic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis. Although the economy has stabilized since the crisis, it has failed to recover. Foreign investment has not returned, due to investor concerns related to governance, energy, security, and a slow-down in the global economy. Remittances from overseas workers, averaging about $1 billion a month since March 2011, remain a bright spot for Pakistan. However, after a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to deficit in the following two years, spurred by higher prices for imported oil and lower prices for exported cotton. Pakistan remains stuck in a low-income, low-growth trap, with growth averaging about 3.5% per year from 2008 to 2013. Pakistan must address long standing issues related to government revenues and energy production 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

Company name and address

 

SAPPHIRE FINISHING MILLS LIMITED

                                   

 

Registered Address

212, Cotton Exchange Building, I.I. Chundrigar Road, Karachi, Pakistan

                       

Tel #

92 (21) 32410930, 32410961

Fax #

92 (21) 32416705

Website

www.sapphire.com.pk

 

 

Short Description Of Business

 

a.

Nature of Business      

Principally engaged in Processing, Dyeing, Bleaching and Finished Textile Products & Stitched Garments

b.

Year Established

2000

c.

Registration #

0041526

 

 

Branches

           

Address

7 A-K, Main Boulevard, Gulberg II, Lahore, Pakistan

Tel #

92 (42) 35750410

Fax #

92 (42) 35758783

 

 

Mills Location

 

Near Kasur, Raiwind,

Lahore, Pakistan

           

 

Legal Status

 

The Company was incorporated in Pakistan as an Unlisted Public Limited Company. The Company is principally engaged in Processing, Dyeing, Bleaching and Finished Textile Products & Stitched Garments

 

 

Auditors

           

Hameed Chaudri & Co.

(Chartered Accountants)

Karachi Chambers, Hasrat Mohani Road, Karachi, Pakistan

 

 

7.

Authorized Capital    

Rs. 1,000,000,000/- divided into 100,000,000 shares of Rs. 10/- each

 

Issued & Paid up Capital

Rs. 920,000,000/- divided into 92,000,000 shares of Rs. 10/- each

 

 

Details of Chief Executive / Directors

 

Names

Designation

Mr. Yousuf Abdullah

 

Mr. Mohammad Abdullah

 

Mr. Shahid Abdullah

 

Mr. Nadeem Abdullah

 

Mr. Amer Abdullah

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Names

No. of Shares

Mr. Mohammad Abdullah

 

Mr. Shahid Abdullah

 

Mr. Nadeem Abdullah

 

Mr. Amer Abdullah

 

Mr. Yousuf Abdullah

 

Mr. Mohammad Yamin

 

Mr. Naveed-Ul-Islam

 

Reliance Cotton Spinning Mills Limited, Pakistan

 

Sapphire Holding Limited, Pakistan

 

SFL Limited, Pakistan.

 

Amer Tex (Pvt) Limited, Pakistan

 

Mr. Hasan Abdullah

 

Mrs. Shireen Shahid

 

Mrs. Noshaba Nadeem

 

Mrs. Uzma Yousuf

 

Mrs. Ambareen Amer

9,500

 

10,000

 

10,500

 

10,500

 

1,891,133

 

500

 

500

 

 

1,556,000

 

29,468,500

 

25,809,000

 

27,524,000

 

500

 

1,897,503

 

1,897,499

 

16,866

 

1,897,499

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

None                                   

 

 

B.         Associated Companies

           

(1) Reliance Cotton Spinning Mills Limited, Pakistan.

(2) Sapphire Electric Company Limited, Pakistan.

(3) Sapphire Fibers Limited, Pakistan.

(4) Sapphire Finishing Mills Limited, Pakistan.

(5) Sapphire Dairies (Pvt) Limited, Pakistan.

(6) Sapphire Holding Limited, Pakistan, Pakistan.

(7) SFL Limited, Pakistan.

(8) Amer Cotton Mills (private) Limited, Pakistan.

(9) Amer Tex (private) Limited, Pakistan.

(10) Creadore A/s, Pakistan.

(11) Corus Power (private) Limited, Pakistan.

(12) Crystal Enterprises (private) Limited, Pakistan.

(13) Diamond Limited, Pakistan.

(14) Diamond Fabrics Limited, Pakistan.

(15) Galaxy Agencies (private) Limited, Pakistan.

(16) Hermes Power (private) Limited, Pakistan.

(17) Nadeem Enterprises (private) Limited, Pakistan.

(18) Neelum Textile Mills Limited, Pakistan.

(19) Sapphire Wind Power Company Limited, Pakistan.

(20) Sapphire Agencies (private) Limited, Pakistan.

(21) Sapphire Enterprises (private) Limited, Pakistan.

(22) Reliance Textiles (private) Limited, Pakistan.

(23) Sapphire Power Generation Limited, Pakistan.

(24) Sapphire Finishing Mills USA Inc, U.S.A.

(25) Salman Ismail (SMC-private) Limited, Pakistan.

(26) STM Corporation (private) Limited, Pakistan.

(27) SFL Corporation (private) Limited, Pakistan.

(28) Sapphire Home Inc. USA

(29) Yousaf Agencies (private) Limited, Pakistan.

 

 

Business Activities

 

Principally engaged in Processing, Dyeing, Bleaching and Finished Textile Products & Stitched Garments

 

 

Number of Employees

 

            2,350

 

 

Capacity & Production

 

                                                                                                2013                 2012

            Fabric Dyeing Unit

 

            Total number of days worked                                         364                  364

            No. of shifts worked per day                                               3                      3

            Installed capacity                      Mtr.                  50,400,000      50,400,000                    

            Actual production                      Mtr.                  50,037,650      41,368,423

 

 

            Stitching Unit

 

            Total number of days worked                                         298                   299

            Actual production                      Pcs.                      771,948             744,429

 

 

Bankers

 

Askari Commercial Bank Limited, Pakistan.

Faysal Bank Limited, Pakistan.

Habib Bank Limited, Pakistan.

MCB Bank Limited, Pakistan.

Allied Bank Limited, Pakistan.

Habib Metropolitan Bank Limited, Pakistan.

United Bank Limited, Pakistan.

Silk Bank Limited, Pakistan.

Soneri Bank Limited, Pakistan.

 

 

Customers

 

Various Local & International

 

 

Exports

 

Mainly to European Countries & U.S.A.

 

 

Financial Position

 

Sound

 

 

Future Outlook

 

The management has achieved better results during the year as compared to last year and is making all efforts for better marketing and sales to renowned brand names for better prices. Management is making all efforts to improve the profitability.

           

 

Memberships

 

All Pakistan Textile Mills Association.

Karachi Chamber of Commerce & Industry.

Lahore Chamber of Commerce & Industry.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 98.85

UK Pound

1

          Rs. 168.50

Euro

1

          Rs. 134.25

 

 

 

Comments

 

Sapphire Group is engaged in diversified activities which include Textiles, Hosiery, Power Generation, Trading etc. Group is well known and all the directors are resourceful and experienced businessmen. Trade relations are reported as fair. Payments to creditors etc are reported as normal. The Company can be considered for normal business dealings at usual trade terms and conditions.


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.40

UK Pound

1

Rs.94.17

Euro

1

Rs.73.61

 

INFORMATION DETAILS

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.