MIRA INFORM REPORT

 

 

Report No. :

324937

Report Date :

03.06.2015

 

IDENTIFICATION DETAILS

 

Name :

ORIENT TEXTILE MILLS LIMITED

 

 

Registered Office :

3rd Floor,  Karachi Dock Labour Board Building, 58 West Wharf Road, Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2013

 

 

Year of Establishment :

1986

 

 

Com. Reg. No.:

0014446

 

 

Legal Form :

Non-Listed Public Limited Company

 

 

Line of Business :

Manufacture & Marketing of Textile Products

 

 

No. of Employees :

380

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 exportshas 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 themid-2000’s, 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 sectorsin 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                       

                                                                       

Business Name

ORIENT TEXTILE MILLS LIMITED

 

 

Full Address       

 

Registered Address

3rd Floor,  Karachi Dock Labour Board Building, 58 West Wharf Road, Karachi, Pakistan

                       

Tel #

92 (21) 32313031, 32310625

Fax #

92 (21) 32310625

Email

headoffice@alkaram.com

 

 

Short Description Of Business

 

a.

Nature of Business       

Manufacture & Marketing of Textile Products

b.

Year Established

1986

c.

Registration #

0014446

 

 

Mills Location

 

Address

501, Deh-Landhi Industrial Area, Main National Highway, Karachi,

Pakistan

Tel No.

92 (21) 35001592 - 95 (4 Lines)

Fax No.

92 (21) 35001444

 

 

Auditors

 

Hyder Bhimji & Co.

(Chartered Accountants)

 

 

Legal Status

 

Subject Company was established as a Non-Listed Public Limited Company in 1986

 

 

Capital

 

Authorized Capital    

Rs. 450,000,000/- divided into 45,000,000 shares of Rs. 10/- each

Issued & Paid up Capital

Rs. 405,000,000/- divided into 40,500,000 shares of Rs. 10/- each

 

 

Details of Directors

 

Names

 

Designation

Mr. Muhammad Iqbal

 

Mr. Ahmed Ibrahim

 

Mr. Muhammad Amjad

 

Mr. Muhammad Ismail

 

Mr. Mehmood

 

Mr. Ebrahim Haji Karim

 

Mr. Muhammad Rafiq

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Categories of Shareholders                

 

Names

 

No. of Shares

Mr. H. Ebrahim

 

Mrs. Hajra Hajiani

 

Mr. Ahmed

 

Miss Mehmooda

 

Mr. Mehmood

 

Mr. Mudassir

 

Mr. Mohsin

 

Mr. Muhammad Iqbal

 

Mr. Muhammad Rafiq

 

Miss. Afsheen

 

Mr. Muhammad Ismail

 

Miss. Zainab

 

Miss. Zohra

 

Mr. Muhammad Amjad

 

Miss. Zeenat

 

Miss. Ruqaiya

 

Mr. Adil

 

Miss. Amna

 

Miss. Anum

 

Mr. Abdul Karim

 

Miss. Saira

 

Mr. Arshad

 

Miss. Saima

166,666

 

103,334

 

2,352,502

 

1,117,500

 

999,998

 

2,235,000

 

2,235,000

 

4,470,000

 

3,737,500

 

4,470,000

 

2,980,000

 

633,332

 

1,117,500

 

2,235,000

 

1,835,000

 

1,216,668

 

400,000

 

779,999

 

2,200,001

 

2,980,000

 

558,750

 

1,117,500

 

558,750

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

None                                            

           

B.         Associated Companies

           

(1) Sattar (Pvt) Limited, Pakistan.

(2) Dhabeji Salt Works Pvt Ltd, Pakistan.

(3) Farooqi Food Industries, Pakistan

(4) Gul Agencies Pvt Ltd, Pakistan

(5) Haji Karim Haji Mohammad, Pakistan.

(6) Iqbal Textile Mills Ltd, Pakistan

(7) Imran Crown Cork Pvt Ltd, Pakistan.

(8) Muslim Cotton Mills Ltd, Pakistan.

(9) Pakistan Dairy Products Ltd, Pakistan.

(10) Zaman Textile Mills Ltd, Pakistan.

(11) Al-Karam Textiles (Pvt) Limited, Pakistan.

(12) Thermo King Pvt Ltd, Pakistan.

(13) Ebrahim Textile Mills, Pakistan.

 

 

Business Activities

 

Subject Company is engaged in manufacture & marketing of Textile Products.

 

Its mainly import Textile Raw Materials, Textile Machineries through D/A, D/P basis.

 

Its main products are Home Textile Products.

 

It sells its product through L/C, T.T. basis.

 

Its main customers are reputable companies, worldwide.

 

Subject operates from caption leased office & factory premises situated at commercial & industrial area of Karachi.

 

Subject employs more than 380 persons in its set up.

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2013

2,583,873,000/-

 

 

Production Capacity

           

Capacity of producing 3 Million Meters per month and a cut and sew facility with a capacity of handling 1.5 Million pieces per month

 

           

Customers

           

Various local and international

 

 

Bankers

 

(1) Bank Al-Habib Limited, Pakistan.

(2) Habib Metropolitan Bank Limited, Pakistan.

(3) United Bank Limited, Pakistan.

(4) Habib Bank Limited, Pakistan.

(5) Soneri Bank Limited, Pakistan.

(6) MCB Bank Limited, Pakistan.

 

 

Memberships

 

·         All Pakistan Textile Mills Association.

·         Karachi Chamber of Commerce & Industry.

·         Federation Pakistan Chamber of Commerce & Industry.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 103.55

UK Pound

1

          Rs. 159.00

Euro

1

          Rs. 112.50

 

 

Comments

 

Subject Company enjoys good reputation in Pakistan. 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.63.83

UK Pound

1

Rs.97.10

Euro

1

Rs.69.74

 

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%)

 

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