|
Report No. : |
327698 |
|
Report Date : |
20.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
SAIF TEXTILE MILLS LIMITED |
|
|
|
|
Registered Office : |
APTMA House, Tehkal Payan, Jamrud Road, Peshawar |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
30.06.2014 |
|
|
|
|
Date of Incorporation : |
1989 |
|
|
|
|
Com. Reg. No.: |
0020799 |
|
|
|
|
Legal Form : |
Public Limited Company (Listed at stock exchanges of Pakistan) |
|
|
|
|
Line of Business : |
The Company is principally
engaged in manufacture and sale of yarn |
|
|
|
|
No. of Employees : |
1,787 |
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 – 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 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 |
SAIF TEXTILE MILLS LIMITED
|
Registered
Address |
|
APTMA House,
Tehkal Payan, Jamrud Road, Peshawar, Pakistan |
|
Tel # |
92 (91) 5843870, 5702941 |
|
Fax # |
92 (91) 5840273 |
|
a. |
Nature of Business |
The Company is principally
engaged in manufacture and sale of yarn |
|
b. |
Incorporated |
1989 |
|
c. |
Registration No. |
0020799 |
|
Address |
4th
Floor, Kulsum Plaza, 2020 - Blue Area, Islamabad, Pakistan |
|
Tel No. |
92 (51) 2823924, 2829415 |
|
Fax No. |
92 (51) 2277843, 2822564 |
Industrial Estate, Gadoon Amazai,
District Sawabi, Pakistan
|
Hameed Chaudhri & Co. (Chartered Accountants) |
|
Public Limited Company (Listed at stock exchanges of Pakistan) |
|
Names |
Designation |
|
Mr. Anwar Saifullah Khan Mr. Osman Saifullah Khan Mr. Javed Saifullah Khan Mr. Jehangir Saifullah Khan Mrs. Hoor Yousafzai Mr. Assad Saifullah Khan Mr. Arif Saeed |
Chairman Chief Executive Director Director Director Director Director |
|
Names |
Shareholding (%) |
|
Directors, Chief Executive Officer, and
their spouse & minor children Associated Companies, Undertakings and
Related Parties NIT & ICP Banks, Development Financial Instituations,
Non Banking Financial Instituations Insurance Companies Modarbas & Mutual Funds General Public (Local) Others |
0.0700 49.6500 7.9300 1.5823 6.0798 1.0883 32.2067 1.3929 |
A. Subsidiary
None
B. Associated Companies
|
(1) Saif Energy Limited, Pakistan. (2) Saif Power Limited, Pakistan. (3) Elite Estates Limited, Pakistan. (4) Burhan Developers Limited, Pakistan. (5) Utopia Developers, Pakistan. (6) Kohat Textile Mills Limited, Pakistan. (7) Gadoon Textile Mills Limited, Pakistan. (8) Lahore Compost Limited, Pakistan. (9) Softech Systems Limited, Pakistan. (10) Globe Comm (Pvt) Limited, Pakistan. (11) Transworld Associates (Pvt) Limited,
Pakistan. (12) Saif Healthcare Limited, Pakistan. (13) Green Fuels Limited, Pakistan. |
The Company is
principally engaged in manufacture and sale of yarn
1,787
2014 2013
No. of spindles installed 91,403
88,956
Average of spindles shifts installed Figure in ‘000 100,086 97,407
Average of spindles shifts worked
Figure in ‘000 97,262 94,802
No. of days worked 365 365
No. of shifts worked 1,095 1,095
Average count
30.66 30.09
Actual production
Figure in ‘000 18,757 18,253
Dyeing
Cotton / Fibre Dyeing Unit
Total number of days worked 179 0
No. of shift worked 537 0
Installed capacity Kgs Figure in ‘000 1,825 0
Actual production Kgs Figure in ‘000 738 0
It is difficult
to describe precisely the production capacity in textile spinning industry
since it fluctuates widely depending on various factors, such as count of yarn
spun, spindles speed, twist per inch and raw materials used. It also varies
according to the pattern of production adopted in a particular year.
|
(1) Albaraka Bank (Pakistan) Limited,
Pakistan. (2) Allied Bank Limited, Pakistan. (3) Dubai Islamic Bank Pakistan Limited,
Pakistan. (4) Faysal Bank Limited, Pakistan. (5) Habib Bank Limited, Pakistan. (6) Meezan Bank Limited, Pakistan. (7) National Bank of Pakistan. (8) The Bank of Punjab, Pakistan. (9) HSBC Bank Middle East Limited,
Pakistan. (10) United Bank Limited, Pakistan. |
|
Various Local & International |
|
Mainly to U.S.A.
& European Countries |
Sound
The Company
contributed Rs 349 million (2013: Rs 568 million) to the national exchequer during
the period under review in the form of sales tax, import duties, surcharges and
various other levies.
The present
quarter has seen a steadying of markets. However the expectation of large
cotton crops globally may dampen any upside that one can expect. Global
competition remains stiff. Indian yarn spinners continue to be very competitive
in the medium to finer counts. The long-term secular decline of China’s textile
production capacity may also be taken as given. What remains uncertain is the
extent to which Pakistan will be a beneficiary of this shift. Time will tell.
As other countries progress, and per capita incomes grow, Pakistan’s poor
economic growth will mean that labour will continue to be cheap, and hence
textile production viable. Sad, but likely to be true. Company’s strategy is
two pronged. Firstly a focus on improving operational efficiency. This means
investment in automated and energy efficient plant and equipment. This also
means extracting as much production from our existing infrastructure as
possible. Secondly is an effort to reduce exposure to commodity market
segments, where by definition we have little or no pricing power. We do this by
entering niche markets – melange, special yarns etc. Our foray into fibre dyeing
was part of the same process. We work with our partners on new product
development. We also seek out new geographical markets. No report to our
shareholders would be complete without the mandatory reference to the uncertain
political situation, the energy crisis, and the struggles of doing business in
the Khyber Pakthunkhwa province. These seem to be perennial challenges.
All Pakistan Textile Mills Association.
Lahore Chamber of Commerce & Industry.
Federation Pakistan Chamber of Commerce & Industry.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 102.90 |
|
UK Pound |
1 |
Rs. 157.00 |
|
Euro |
1 |
Rs. 115.50 |
The Saif Group is one of
the leading industrial and services conglomerates in Pakistan. Its primary
operations encompass: oil and gas exploration, power generation, textiles
manufacturing, real estate development, healthcare services, information
technology services, software development and environmental management. 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.63.82 |
|
|
1 |
Rs.101.26 |
|
Euro |
1 |
Rs.72.36 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.