MIRA INFORM REPORT

 

 

Report No. :

348793

Report Date :

10.11.2015

 

IDENTIFICATION DETAILS

 

Name :

MASOOD SPINNING MILLS LIMITED

 

 

Registered Office :

Mehr Manzil, Lohari Gate, Multan

 

 

Country :

Pakistan

 

 

Date of Incorporation :

2000

 

 

Com. Reg. No.:

0041509

 

 

Legal Form :

Non Listed Public Limited Company

 

 

Line of Business :

Engaged in Manufacture & Sale of Yarn & Fabric

 

 

No. of Employees :

1,000

 

 

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 exports has 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 the mid-2000s, 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 sectors 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

 

Business Name

 

MASOOD SPINNING MILLS LIMITED

 

 

Full Address       

 

Registered Address

 

Mehr Manzil, Lohari Gate, Multan, Pakistan

                       

Tel #

92 (61) 111-181-181

Fax #

92 (61) 4511262

Website

www.mahmoodgroup.com

 

 

Short Description Of Business

 

a.

Nature of Business       

Engaged in manufacture & sale of yarn & fabric

b.

Incorporated

2000

c.

Registration No.

0041509   

 

 

Mills Location

 

Mahmoodabad, Multan Road,

Muzaffargarh, Pakistan

 

 

Auditors

 

Mushtaq & Co.

(Chartered Accountants)

 

 

Legal Status

 

The Company was incorporated in Pakistan in the year 2000 as a Non-Listed Public Limited Company

 

 

 

6.

Authorized Capital    

Rs. 300,000,000/-

 

Issued & Paid up Capital

Rs. 300,000,000/-

 

 

Details of Management

 

Names

 

Designation

Mr. Muhammad Jalaluddin Roomi

 

Mr. Khawaja Muhammad Masood

 

Mr. Khawaja Muhammad Qasim

 

Mr. Khawaja Muhammad Younus

 

Mr. Khawaja Muhammad Anees

 

Mr. Khawaja Muhammad Ilyas

 

Mr. Khawaja Muhammad Iqbal

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Categories

 

No. of Shares

Mr. Khawaja Muhammad Masood

 

Mr. Khawaja Muhammad Iqbal

 

Mr. Khawaja Muhammad Ilyas

 

Mr. Khawaja Muhammad Younus

 

Mr. Muhammad Jalaluddin Roomi

 

Mr. Muhammad Anees

 

Mr. Muhammad Muzaffar Iqbal

 

Mst. Ghulam Zahra

 

Mst. Rehana Kausar

 

Mst. Shafique Zahra

 

Mr. Khawaja Muhammad Mohsin Masood

 

Mr. Khawaja Muhammad Qasim

 

Mahmood Textile Mills Limited, Pakistan

 

Masood Fabrics Limited, Pakistan

3,000,000

 

3,001,818

 

2,999,318

 

3,001,818

 

3,501,818

 

10,000

 

80,000

 

909

 

909

 

910

 

 

400,000

 

2,500

 

 

4,000,000

 

10,000,000

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

None

           

B.         Associated Companies

           

(1) Mahmood Textile Mills Limited, Pakistan.

(2) Masood Fabrics Limited, Pakistan.

(3) Roomi Fabrics Limited, Pakistan.

(4) Roomi Enterprises (Pvt) Limited, Pakistan.

(5) Khawaja Enterprises (Pvt) Limited, Pakistan.

(6) Khawaja Tanneries (Pvt) Limited, Pakistan.

(7) Ghousia Agricultural & Fruit Farms, Pakistan.

 

 

Business Activities

 

Subject Company is engaged in manufacture & sale of yarn & fabric.

 

It imports Textile Raw Materials, Textile Machineries through L/C, D/P basis.

 

It sells its products to its domestic customers including Buying Agencies, Trading Companies, International Buyers etc.

 

Its exporting countries are European Countries.

 

Its importing countries are China, Korea, Taiwan, Thailand, Hong Kong & European Countries

 

Its major customers are reputable companies, Domestic & Worldwide.

 

Subject employs about 1,000 persons in its set up.

 

 

Annual Sales Volume

 

Year

 

In Pak Rupees

2014

750,000,000/-

 

 

Mills Installed

                                               

19,000 spindles

 

 

Bankers

 

(1) MCB Bank Limited, Pakistan.

(2) United Bank Limited, Pakistan.

(3) Habib Bank Limited, Pakistan.

(4) Allied Bank Limited, Pakistan.

(5) Soneri Bank Limited, Pakistan.

(6) Faysal Bank Limited, Pakistan.

 

 

Memberships

 

Multan Chamber of Commerce & Industry.(MCCI)

All Pakistan Textile Mills Association.(APTMA)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

           Rs. 105.55

UK Pound

1

           Rs. 162.00

Euro

1

           Rs. 114.50

 

 

Comments

 

Mahmood Group 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.66.34

UK Pound

1

Rs.100.03

Euro

1

Rs.71.45

 

 

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%)

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