MIRA INFORM REPORT
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Report No. : |
310946 |
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Report Date : |
11.03.2015 |
IDENTIFICATION DETAILS
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Name : |
SAPPHIRE TEXTILE MILLS LIMITED |
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Registered Office : |
212, Cotton Exchange Building, I.I. Chundrigar Road, Karachi |
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Country : |
Pakistan |
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Date of Incorporation : |
1969 |
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Com. Reg. No.: |
0002848 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturing and sale of yarn, fabrics, home
made textile products and processing of fabrics |
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|
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No. of Employee : |
5,621 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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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
|
SAPPHIRE TEXTILE
MILLS LIMITED |
Full
Address
|
Registered
Address |
|
212, Cotton Exchange Building, I.I. Chundrigar Road, Karachi, Pakistan |
|
Tel # |
92 (21) 111-000-100, 32410930, 32410961 |
|
Fax # |
92 (21) 32416705 |
Short
Description Of Business
|
a. |
Nature of Business |
Manufacturing and
sale of yarn, fabrics, home made textile products and processing of fabrics |
|
b. |
Year Established |
1969 |
|
c. |
Registration # |
0002848 |
Branches
|
Address |
7 A-K, Main Boulevard, Gulberg II, Lahore,
Pakistan |
|
Tel # |
92 (42) 35750410 |
|
Fax # |
92 (42) 35758783 |
Mills
Location
(1) S.I.T.E., Kotri.
(2) S.I.T.E., Nooriabad.
(3) Chunian, District Kasur.
(4) Feroz Watwan.
(5) Bhopattian, Lahore.
Legal
Status
|
The Company was incorporated in Pakistan as a Public Limited Company in
1969 and is quoted at Karachi, Lahore & Islamabad Stock Exchanges of
Pakistan |
Auditors
|
Mushtaq & Company (Chartered Accountants) |
Details
of Chief Executive / Directors
|
Names |
Designation |
|
Mr. Mohammad Abdullah Mr. Nadeem Abdullah Mr. Amer Abdullah Mr. Yousuf Abdullah Mr. Nabeel Abdullah Mr. Shayan Abdullah Mr. Nadeem Karamat Mr. Shahid Abdullah |
Chairman Chief Executive Director Director Director Director Director Director |
Categories
of Shareholders
|
Categories |
Percentage (%) |
|
Director, their spouse and minor children Associated Companies, Undertakings &
related parties NIT & ICP Banks, Development Finance Institutions,
Non-Banking Finance Institutions Insurance Companies Other Companies Modarabas & Mutual Funds General Public |
60.69 30.93 4.63 0.22 0.48 0.13 0.04 2.88 |
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
Manufacturing and
sale of yarn, fabrics, home made textile products and processing of fabrics
Number
of Employees
5,621
Capacity
& Production
2014 2013
Spinning
Number of spindles installed 126,931 122,410
Average Number of spindles worked 122,933 119,201
Total number of rotors installed 3,120 3,111
Average number of rotors worked 3,065 3,041
Number of working days 3 3
Number of Shifts per day 360 360
Installed capacity in Kilograms, after conversion into 20/s count
(based on actual number of working days)
90,973,529 87,648,336
Actual production of yarn in Kilograms, after conversion into
20/s count (based on actual number of working days)
114,258,578
89,079,562
Weaving
Number of looms installed
299) 300)
Number of looms worked 299 290)
Number of shifts worked per day
3) 3
Total days worked 360 360
Installed capacity at 50 picks per inch of fabric square meters 100 456,657) 102,273,135)
Actual production after conversion into 50 picks - square yards 103,829,499) 98,573,323)
Home Textile Production Unit
The Capacity of this unit is undeterminable
due to multi product involving varying processes of manufacturing and run
length of order lots.
Bankers
|
(1) Faysal Bank
Limited, Pakistan. (2) Habib Bank
Limited, Pakistan. (3) Allied Bank
Limited, Pakistan. (4) Standard
Chartered Bank, Pakistan. (5) United Bank
Limited, Pakistan. (6) MCB Bank Limited,
Pakistan. |
Customers
|
Various Local & International |
Exports
|
Mainly to European Countries & U.S.A. |
Financial
Position
Sound
Future
Prospects
The raw material prices are under pressure due to surplus global
production. The increase in production of raw cotton in countries like India
and china is more than Pakistan; therefore, these countries will have a
competitive advantage over Pakistan. In addition, these countries are also
giving tremendous incentives to their local industry for capacity expansion
which is a challenge for Pakistani Industry, especially in a scenario where
cost of power and other inputs have increased substantially in Pakistan. In
spite of these challenges, the management is making its best efforts to make
the operation as efficient as possible.
Memberships
·
APTMA
·
FPCCI
·
LCCI
·
KCCI
Foreign
Exchange Rates
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 101.85 |
|
UK Pound |
1 |
Rs. 156.60 |
|
Euro |
1 |
Rs. 114.10 |
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.62.70 |
|
UK Pound |
1 |
Rs.94.55 |
|
Euro |
1 |
Rs.67.66 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
ANK |
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.