MIRA INFORM REPORT

 

 

Report No. :

325595

Report Date :

08.06.2015

 

IDENTIFICATION DETAILS

 

Name :

M.B. DYES CHEMICALS AND SILK INDUSTRY (PVT.) LIMITED

 

 

Registered Office :

Plot No. 320/2, Industrial Estate, Gadoon Amazai, District Swabi, Khyber Pakhtoonkwa

 

 

Country :

Pakistan

 

 

Year of Establishment |:

1990

 

 

Com. Reg. No.:

0021201

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture & Marketing of Diversified Auxiliary Chemicals & Dyes / Pigments for Textile, Leather and Paint Industries.

 

 

No. of Employees :

135

 

 

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 – 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

M.B. DYES CHEMICALS AND SILK INDUSTRY (PVT.) LIMITED

 

 

Full Address       

 

Registered Address

Plot No. 320/2, Industrial Estate, Gadoon Amazai, District Swabi, Khyber Pakhtoonkwa, Pakistan

                       

Tel #

92 (938) 670220

Fax #

92 (938) 670220

Email

mbdyes@brain.net.pk

 

 

Short Description Of Business

 

a.

Nature of Business      

Engaged in manufacture & marketing of diversified auxiliary chemicals & dyes / pigments for Textile, Leather and Paint Industries

b.

Year Established

1990

c.

Registration #

0021201

 

 

Branches

 

Address

203, 2nd Floor, Eden Centre, 43-Jail Road, Lahore, Pakistan

Tel #

92 (42) 37561425, 37561424

Fax #

92 (42) 37561426 

 

Address

3rd Floor, M.R. 4/17, Ali Akber Street, Jodia Bazar, Karachi, Pakistan

Tel #

92 (21) 32441550, 32441551, 32443128, 32471227

Fax #

92 (21) 32413936

 

 

Auditors

 

Ghafoor & Co.

(Chartered Accountants)

 

 

Legal Status

 

Subject Company was established as a Private Limited Company in 1990

 

 

Capital

 

Authorized Capital    

Rs. 200,000,000/- divided into 2,000,000 shares of Rs. 100/- each

Issued & Paid up Capital

Rs. 168,000,000/- divided into 1,680,000 shares of Rs. 100/- each

 

 

Details of Directors

 

Names

 

Nationality

Address

Occupation

Designation

Mr. Mahmood Salam

 

 

Mr. Ehsan Elahi

Pakistani

 

 

 

Pakistani

 

 

M.R. 4/17, Ali Akber Street, Jodia Bazar, Karachi

 

M.R. 4/17, Ali Akber Street, Jodia Bazar, Karachi

Business

 

 

 

Business

 

 

Chief Executive

 

 

 

Director

 

 

 

 

Shareholders                

 

Names

 

No. of Shares

Mr. Maqbool Salam

 

Mr. Ehsan Elahi

 

Mr. Mahmood Salam

 

Mr. Abdus Salam

 

Mr. Mehboob Salam

 

Mrs. Monazza Maqbool

1,493,250

 

11,750

 

8,000

 

8,000

 

12,500

 

146,500

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

None

           

B.         Associated Companies

(1) M.B. Knitwear (Pvt) Limited, Pakistan.

(2) Mahmood Brothers, Pakistan.

(3) Ehsan Elahi Yarn Broker, Pakistan.

(4) Mumtaz Enterprises, Pakistan.

 

 

Business Activities

 

Subject Company is engaged in manufacture & marketing of diversified auxiliary chemicals & dyes / pigments for Textile, Leather and Paint Industries.

 

It purchases raw material against L/C, D/A basis.

 

It’s mainly import from India, Korea, China, Taiwan, Indonesia, Hong Kong & European Countries.

 

Its major customers are Textile Companies, Paint Manufacturers, Leather Companies etc.

 

Office & factory premises are owned by the Group.

 

Subject employs about 135 persons in its set up.

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2013

150,000,000/- (Estimated)

 

 

Actual Production Capacity

 

The capacity and production of the company’s plant is indeterminable as it is multi- product and involves various processes of manufacture

 

 

Trade Suppliers (Foreign)

 

(1)   ENOC INTERNATIONAL, U.A.E.

(2)   GULSHAN POLYOLS LIMITED, INDIA.

(3)   ADHIK CHEMICALS (PVT) LIMITED, INDIA.

(4)   HUBEI HWALLE DYESTUFF INDUSTRY CO. LTD, CHINA.

 

 

Bankers

 

(1) Bank Alfalah Limited, Pakistan.

(2) Silk Bank Limited, Pakistan.

(3) Habib Bank Limited, Pakistan.

(4) Askari Bank Limited, Pakistan.

(5) MCB Bank Limited, Pakistan.

 

 

Memberships

 

·         Khyber Pakhtoonkwa Chamber of Commerce & Industry.

·         Karachi Chamber of Commerce & Industry.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 102.90

UK Pound

1

          Rs. 157.00

Euro

1

          Rs. 115.50

 

 

Comments

 

Subject Company was established in 1990 and is engaged in manufacture & marketing of diversified auxiliary chemicals & dyes / pigments for Textile, Leather and Paint Industries. Market reputation is satisfactory. Trade relations are reported as fair. 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.63.90

UK Pound

1

Rs.97.98

Euro

1

Rs.71.82

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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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