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Report No. : |
313732 |
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Report Date : |
25.03.2015 |
IDENTIFICATION DETAILS
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Name : |
THE CRESCENT TEXTILE MILLS LIMITED |
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Registered Office : |
45-A, Off: Zafar Ali Road, Gulberg V, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
1950 |
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Com. Reg. No.: |
0000366 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Subject is engaged in business of Textile manufacturing comprises of
Spinning, Combing, Weaving, Dyeing, bleaching, printing, stitching, buying,
selling and otherwise dealing in yarn, cloth and other goods and fabrics made
from raw cotton and synthetic fiber and to generate, accumulate, distribute,
supply and sale of electricity. |
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No. of Employees : |
5,847 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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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.
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Source
: CIA |
THE CRESCENT
TEXTILE MILLS LIMITED
|
Registered
Address |
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45-A, Off: Zafar Ali Road, Gulberg V, Lahore, Pakistan |
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Tel # |
92 (42) 111-245-245 |
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Fax # |
92 (42) 111-222-245 |
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Email |
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a. |
Nature of Business |
Principally engaged in business of Textile manufacturing comprises of Spinning,
Combing, Weaving, Dyeing, bleaching, printing, stitching, buying, selling and
otherwise dealing in yarn, cloth and other goods and fabrics made from raw
cotton and synthetic fiber and to generate, accumulate, distribute, supply
and sale of electricity. The Company also operate a cold storage unit |
|
b. |
Year Established |
1950 |
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c. |
Registration # |
0000366 |
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Address |
Sargodha Road, Faisalabad, Pakistan |
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Tel # |
92 (41) 111-105-105 |
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Fax # |
92 (41) 111-103-104 |
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Riaz Ahmed & Company (Chartered
Accountants) |
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Subject Company was established as a Public Limited Company in 1950
and its shares are listed at stock exchanges of Pakistan |
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Names |
Designation |
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Mr. Muhammad Rafi Mr. Muhammad Anwar Mr. Ahmad Shafi Mr. Khalid Bashir Mr. Khurram Mazhar Karim Mr. Muhammad Arshad Mr. Muhammad Asif Mr. Nasir Shafi |
Chairman Chief Executive Director Director Director Director Director Director |
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Categories |
Percentage (%) |
|
Individuals Joint Stock Companies Associated Companies Executives Insurance Companies Mutual Funds Financial Institutions Modaraba & Modaraba Co.s Non-Residents |
57.6 21.2 18.9 1.6 0.6 0.1 0.0 0.0 0.0 |
A. Subsidiary
None
B. Associated Companies
|
(1) Crescot Mills Limited, Pakistan. (2) Karachi Bulk & Storage Terminals (Pvt)
Limited, Pakistan. (3) Crescent Jute Products Limited, Pakistan. (4) Premier Insurance Limited, Pakistan. (5) Jubilee Spinning and Weaving Mills Limited,
Pakistan. (6) Premier Financial Services (Pvt) Limited,
Pakistan. (7) Shakarganj Mills Limited, Pakistan. (8) Crescent Sugar Mills & Distillery
Limited, Pakistan. (9) Crescent Steel and Allied Products Limited,
Pakistan. |
Principally engaged in business of Textile manufacturing comprises of
Spinning, Combing, Weaving, Dyeing, bleaching, printing, stitching, buying,
selling and otherwise dealing in yarn, cloth and other goods and fabrics made
from raw cotton and synthetic fiber and to generate, accumulate, distribute,
supply and sale of electricity. The Company also operate a cold storage unit
5,847
|
Years |
In Pak Rupees |
|
2013 2014 |
13,262,052,000/- 12,411,497,000/- |
2014 2013
Spinning:
100% plant capacity converted to 20s count
Based on 3 shifts per day for 1,095 shifts
(2013: 1,095 shifts)
(Kgs) 38,562 38,562
Actual production converted to 20s count
Based on 3 shifts per day for 1005 shifts
(2013: 966 shifts) (Kgs) 34,265 33,078
Weaving:
100% plant capacity at 50 picks based on 3
Shifts per day for 1,095 shifts (2013:
1,095 shifts) (Sq.Mtr.) 52,367
97,078
Actual production converted to 50 picks based
On 3 shifts per day for 540 shifts (2013: 849 shifts)
(Sq. Mtr.) 34,841
61,293
The plant capacity of these divisions is indeterminable due to multi-product
plants involving varying processes of manufacturing
Power Plant
Generation Capacity (MWH) 258 258
Actual Generation (MWH) 53 84
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Mainly Distribution Companies, Buying Agencies, International Buyers
etc |
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(1) Al Baraka Bank (Pakistan) Limited, Pakistan. (2) Allied Bank Limited, Pakistan. (3) Burj Bank Limited, Pakistan. (4) Habib Bank Limited, Pakistan. (5) Meezan Bank Limited, Pakistan. (6) MCB Bank Limited, Pakistan. (7) National Bank of Pakistan. (8) NIB Bank Limited, Pakistan. (9) Standard Chartered Bank, Pakistan. (10) United Bank Limited, Pakistan. |
Pakistan's
textile industry is facing tough competition from the regional competitors. The
cost of doing business in Pakistan is high as compared to other regional
competitors. On account of these reasons, the Pakistan textile industry is
going through crucial phase. The problems with energy sector are particularly
significant and are taking a toll on textile sector productivity. Furthermore,
constrained energy sector also increases cost of production of textile
commodities as well as results in depressed demand. But there is no denial of the
fact that there exists immense potential for growth and development of textile
industry.
Lahore Chamber of Commerce & Industry.(LCCI)
All Pakistan Textile Mills Association.(APTMA)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 102.65 |
|
UK Pound |
1 |
Rs. 152.50 |
|
Euro |
1 |
Rs. 110.25 |
Crescent Group enjoys good
reputation in the Pakistani business circle. Directors of the Company are
reported as qualified, experienced and resourceful businessmen. 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.62.20 |
|
|
1 |
Rs.92.93 |
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Euro |
1 |
Rs.68.03 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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|
-- |
NB |
New Business |
-- |
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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.