MIRA INFORM REPORT

 

 

Report No. :

348796

Report Date :

16.11.2015

 

IDENTIFICATION DETAILS

 

Name :

TATA TEXTILE MILLS LIMITED

 

 

Registered Office :

6th Floor, Textile Plaza, M.A. Jinnah Road, Karachi

 

 

Country :

Pakistan

 

 

Date of Incorporation :

1987

 

 

Com. Reg. No.:

0015946

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Subject is engaged in manufacture & sale of Yarn.

 

 

No. of Employees :

1339

 

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

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

 

Company name                               

 

TATA TEXTILE MILLS LIMITED                       

 

 

Full Address       

 

Registered Address

6th Floor, Textile Plaza, M.A. Jinnah Road, Karachi, Pakistan

                       

Tel #

92 (21) 32412955, 32412953, 32426761, 32426762, 32426764

Fax #

92 (21) 32417710

Email

ttm.corporate@tatatex.com

 

 

Short Description Of Business

 

a.

Nature of Business      

Principally engaged in manufacture and sale of yarn

b.

Incorporated

1987

c.

Registration No.

0015946

 

 

Branches

           

In Lahore at present

 

 

Auditors

 

Deloitte Yousuf Adil

(Chartered Accountants)

 

 

Legal Status

 

The Company was incorporated in Pakistan in the year 1987 as a Public Limited Company and its shares are listed at stock exchanges of Pakistan

 

 

Details of Management

 

Names

Designation

Mr. Anwar Ahmed Tata

 

Mr. Shahid Anwar Tata

 

Mr. Adeel Shahid Anwar Tata

 

Mr. Bilal Shahid Anwar

 

Mr. Asif Saleem

 

Mr. Muhammad Salman H. Chawala

 

Mr. Muhammad Naseem

Chairman

 

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Categories

    Percentage (%)

Directors, their Spouses and Minor Children

 

Associated Companies, Undertakings and Related Parties

 

Public Sector Companies & Corporations

 

Banks, Development Finance Institutions, Non-Banking Finance Companies, Insurance Companies, Takaful, Modarbas & Pension Funds

 

Mutual Funds

 

Others

 

General Public

 

62.33

 

 

2.51

 

 

0.15

 

 

 

 

1.21

 

12.81

 

0.71

 

20.29

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

None

           

B.         Associated Companies

 

Island Textile Mills Limited, Pakistan.

(2) Salfi Textile Mills Limited, Pakistan.

Business Activities

 

Subject Company is engaged in manufacture & sale of Yarn.

 

It’s import Textile Raw Materials, Textile Machineries through L/C, D/P basis.

 

It sells its products to its domestic customers including Buying Agencies, Trading Companies, Textile Companies.

 

Its importing countries are Japan, Singapore, China, Korea, Taiwan & European Countries

 

Its major customers are reputable companies, Domestic & Worldwide.

 

Subject employs about 1,339 persons in its set up.

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2014

2015

5,297,306,623/-

5,066,353,330/-

 

 

Plant Capacity & Production

 

                                                                                                     2015                                    2014                            

Number of spindles installed                                                         44,400                                    44,400

Number of spindles worked                                                          44,400                                    44,400

Number of shifts per day                                                                      3                                              3           

Installed capacity after conversion into 20/s count – Kgs          15,312,002                            15,312,002

Actual production of yarn after conversion into 20/s count - Kgs  15,307,897                         14,350,019

 

 

Bankers

 

(1) Faysal Bank Limited, Pakistan.

(2) Dubai Islamic Bank (Pakistan) Limited.

(3) Bank Alfalah Limited, Pakistan.

(4) Meezan Bank Limited, Pakistan.

(5) Habib Metropolitan Bank Limited, Pakistan.

(6) The Bank of Punjab, Pakistan.

(7) MCB Bank Limited, Pakistan.

(8) National Bank of Pakistan.

(9) Soneri Bank Limited, Pakistan.

(10) Allied Bank Limited, Pakistan.

(11) Bank Islami Pakistan Limited, Pakistan.

(12) JS Bank Limited, Pakistan.

(13) Askari Bank Limited, Pakistan.

(14) Samba Bank Limited, Pakistan.

(15) NIB Bank Limited, Pakistan.

 

 

Memberships

 

Karachi Chamber of Commerce & Industry.(KCCI)

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

 

Subject Company was established in 1987 and is engaged in the manufacture & sale of Yarn. 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.66.14

UK Pound

1

Rs.100.55

Euro

1

Rs.71.26

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

Report Prepared by :

TRU

 

               

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.