MIRA INFORM REPORT

 

 

Report No. :

349434

Report Date :

17.11.2015

 

IDENTIFICATION DETAILS

 

Name :

ELLCOT SPINNING MILLS LIMITED

 

 

Registered Office :

Nagina House, 91-B-1, M.M. Alam Road, Lahore

 

 

Country :

Pakistan

 

 

Year of Establishment :

1988

 

 

Com. Reg. No.:

0018985

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Manufacturer and Sale of Yarn.

 

 

No. of Employees :

1,105

 

 

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

B

 

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

                                                                                   

Business Name

ELLCOT SPINNING MILLS LIMITED

 

 

Full Address       

 

Registered Address

Nagina House, 91-B-1, M.M. Alam Road, Lahore, Pakistan

                       

Tel #

92 (42) 35756270 - 77 (8 Lines)

Fax #

92 (42) 35711856, 35753820

 

 

Short Description Of Business

 

a.

Nature of Business      

Engaged in manufacture & sale of Yarn

b.

Year Established

1988

c.

Registration #

0018985

 

 

Mills Location

 

6.3 K.M., Manga Mandi, Raiwind Road,

Mouza Rossa, Tehsil & District

Kasur, Punjab, Pakistan

 

 

Auditors

 

Messrs Rahman Sarfaraz Rahim Iqbal Rafiq

(Chartered Accountants)

 

 

Legal Status

 

The Company was incorporated in Pakistan as a public limited company and is listed at stock exchanges of Pakistan

 

 

Details of Management

           

Names

 

Designation

Mr. Shaikh Enam Ellahi

 

Mr. Syed Moaz Mohiuddin

 

Mr. Jamal Nasim

 

Mr. Shahzada Ellahi Shaikh

 

Mr. Shaukat Ellahi Shaikh

 

Mr. Amin Ellahi Shaikh

 

Mr. Shafqat Ellahi Shaikh

Chairman

 

Executive Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders                

                       

Categories

 

    Percentage (%)

Directors, CEO, and their spouses and minor children

 

Associated Companies, Undertakings and related parties

 

NIT & ICP

 

Banks, Development Finance Institutions, Non Banking Finance Institutions

 

Insurance Companies

 

Modarabas & Mutual Funds

 

General Public

 

Others

 

43.23

 

 

24.32

 

0.00

 

 

 

0.05

 

1.75

 

17.24

 

12.77

 

0.36

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

None                                             

           

B.         Associated Companies

           

(1) Monell (Pvt) Limited, Pakistan.

(2) Haroon Omer (Pvt) Limited, Pakistan.

(3) Icaro (Pvt) Limited, Pakistan.

(4) Nagina Cotton Mills Limited, Pakistan.

(5) Prosperity Weaving Mills Limited, Pakistan.

(6) Ellahi International (Pvt.) Limited, Pakistan.

(7) ARH (Pvt.) Limited, Pakistan.

 

 

Business Activities

 

Subject Company is engaged in manufacture & sale of Yarn.

 

Its mainly import Textile Raw Materials, Textile Machineries through L/C, D/P basis.

 

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

 

It sells its product through cash / credit term basis to its domestic customers.

 

Its main customers are Brokers, Distribution Companies, Manufacturing Companies etc.

 

Subject operates from caption leased office & factory premises Sq.ft situated at commercial & industrial centers of Lahore & Punjab.

 

Subject employs about 1,105 persons in its set up.

 

 

Annual Sales Volume

 

Years

 

In Pak Rupees

2014

2015

5,709,483,886/-

4,588,787,945/-

 

 

Plant Capacity & Actual Production

                       

Description

 

2015

2014

Number of spindles installed

 

Plant capacity on the basis of utilization converted into 30s count - Kgs

 

Actual production converted into 30s count – Kgs

54,528

 

 

 

11,510,359

 

 

10,828,088

54,528

 

 

 

11,510,359

 

 

10,556,810

 

 

Customers (Foreign)

           

Mainly Distribution Companies, Buying Agencies, Garments & Apparel Factories, Local Traders etc

 

 

Bankers

 

(1) Albaraka Bank (Pakistan) Limited, Pakistan.

(2) Allied Bank Limited, Pakistan.

(3) Askari Bank Limited, Pakistan.

(4) Bank Alfalah Limited, Pakistan.

(5) Faysal Bank Limited, Pakistan.

(6) Habib Bank Limited, Pakistan.

(7) Meezan Bank Limited, Pakistan.

(8) MCB Bank Limited, Pakistan.

(9) National Bank of Pakistan.

(10) Standard Chartered Bank, Pakistan.

(11) The Bank of Punjab, Pakistan.

(12) United Bank Limited, Pakistan.

 

 

Future Outlook

 

The future outlook for the Company looks good, as now we have a larger production capacity as a result of the expansion which is now completed and on line.

 

 

Memberships

 

·         All Pakistan Textile Mills Association.(APTMA)

·         Lahore Chamber of Commerce & Industry.(LCCI)

·         Federation Pakistan Chamber of Commerce & Industry.(FPCCI)

 

 

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 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.66.17

UK Pound

1

Rs.100.66

Euro

1

Rs.70.97

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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


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