MIRA INFORM REPORT

Report No. :	349435
Report Date :	17.11.2015

IDENTIFICATION DETAILS

Name :	ROOMI FABRICS LIMITED

Registered Office :	Mehr Manzil, Lohari Gate, Multan

Country :	Pakistan

Date of Incorporation :	2002

Com. Reg. No.:	0043718

Legal Form :	Public Limited Company (Not Listed at Any Stock Exchange of Pakistan)

Line of Business :	Engaged in manufacture and sale of grey cloth, garments and generation & sale of electricity

No. of Employees :	1,500

RATING & COMMENTS

MIRA’s Rating :

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

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

ROOMI FABRICS LIMITED

Full Address

Registered Address

Mehr Manzil, Lohari Gate, Multan, Pakistan

Tel #	92 (61) 111-181-181
Fax #	92 (61) 4511262
Email	mtmltd@brain.net.pk

Short Description Of Business

a.	Nature of Business	Engaged in manufacture and sale of grey cloth, garments and generation & sale of electricity
b.	Incorporated	2002
c.	Registration No.	0043718

Mills Location

Masoodabad, 15^th Kilometer,

Khanewal Road, Multan,

Pakistan

Auditors

Hameed Chaudhri & Co.

(Chartered Accountants)

Legal Status

Public Limited Company (Not listed at any Stock Exchange of Pakistan)

Authorized Capital	Rs. 300,000,000/-
Issued & Paid up Capital	Rs. 220,000,000/-

Details of Management

Names

Designation

Mr. Khawaja Muhammad Younus

Mr. Khawaja Abdul Haque

Mr. Khawaja Muhammad Iqbal

Mr. Khawaja Muhammad Ilyas

Mr. Khawaja Muhammad Jalaluddin

Mr. Khawaja Muhammad Masood

Chief Executive Officer

Director

Shareholders

Names

No. of Shares

Mr. Khawaja Muhammad Masood

Mrs. Shafique Zahra

Mrs. Humera Jalaluddin

Mrs. Rehana Kausar

Mr. Khawaja Muhammad Anees

Mr. Khawaja M. Muzaffar Iqbal

Mrs. Robina Younus

Mahmood Textile Mills Limited, Pakistan

Masood Fabrics Limited, Pakistan

M/s Sadia Younus

Mr. Khawaja Muhammad Mohsin Masood

Mr. Khawaja Muhammad Iqbal

Mr. Khawaja Muhammad Ilyas

Mr. Khawaja Muhammad Younus

Mr. Jalaluddin Roomi

Mr. Abdul Haq

Mrs. Bilqees Akhtar

Mrs. Ghulam Zahra

1,815,000

1,105,909

415,000

1,105,909

311,250

122,500

207,500

4,000,000

259,375

500,000

971,818

919,943

1,438,693

1,801,818

622,500

1,296,875

1,105,910

Associates

A. Subsidiary

None

B. Associated Companies

(1) Masood Spinning Mills Limited, Pakistan.

(2) Masood Fabrics Limited, Pakistan.

(3) Mahmood Textile Mills 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 manufacturing & Sale of yarn, grey cloth and generation of Electricity.

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

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

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

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

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

Subject employs about 1,500 persons in its set up.

Annual Sales Volume

Year

In Pak Rupees

2014

4,000,000,000/- (Estimated)

Plant Capacity & Actual Production

Description

2013

2012

Cloth

Number of looms installed

Number of looms-shifts worked

Installed capacity at 60 picks

Actual production converted into 60 picks

Power House

Number of generators installed

Number of shifts worked

Generation capacity in Mega Watt

Actual generation in Mega Watts

228

249,522

85,564,041

76,006,538

1,094

8.65

220

233,719

80,297,892

71,079,694

1,095

4.17

Customers (Foreign)

Various local & international

Bankers

(1) MCB Bank Limited, Pakistan.

(2) United Bank Limited, Pakistan.

(3) Habib Bank Limited, Pakistan.

(4) Allied Bank Limited, Pakistan.

(5) Bank Al-Habib Limited, Pakistan.

(6) Meezan Bank Limited, Pakistan.

(7) Faysal Bank Limited, Pakistan.

(8) Bank Alfalah Limited, Pakistan.

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.100.65
Euro	1	Rs.70.97

INFORMATION DETAILS

Analysis Done by :	RAS

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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