MIRA INFORM REPORT

Report No. :	349440
Report Date :	18.11.2015

IDENTIFICATION DETAILS

Name :	PEARL FABRICS COMPANY

Registered Office :	Plot No. 40-A, Sector-27, Korangi Industrial Area, Karachi

Country :	Pakistan

Date of Incorporation :	1968

Legal Form :	Partnership

Line of Business :	Subject is engaged in manufacture & export of Terry Towel & other Textile Made-Ups including Terry Towels, Fancy Towels, Kitchen Towels, Beach Towels, and all sizes & colors in Dyed Towels, Velour Towels, Yarn Dyed Towels, Yarn Dyed Stripe Towels, Yarn Dyed Stripe Velour Towels, Jacquard Towels, Jacquard Velour Towels, Dobby Design & Printed Towels.

No. of Employees :	179

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:

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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

PEARL FABRICS COMPANY

Full Address

Registered Address

Plot No. 40-A, Sector-27, Korangi Industrial Area, Karachi, Pakistan

Tel #	92 (21) 35073073, 35073074, 35073445, 35073446
Fax #	92 (21) 35073444
Email	pearlfabrics@cyber.net.pk

Short Description Of Business

a.	Nature of Business	Engaged in manufacture & export of Terry Towel & other Textile Made-Ups
b.	Year Established	1968
c.	National Tax #	0944423 - 8

Branches

Plot No. 15, Sector-16, Korangi

Industrial Area, Karachi, Pakistan

Legal Status

Subject Company was established as a Partnership business in 1968

Details of Management

Names

Nationality

Address

Occupation

Designation

Mr. Shaikh Manzar Alam

Mr. Waqar Alam

Pakistani

Plot No. 40-A, Sector-27, Korangi Industrial Area, Karachi

Business

CEO / Managing Partner

Partner

Associated Companies

None

Business Activities

Subject Company is engaged in manufacture & export of Terry Towel & other Textile Made-Ups including Terry Towels, Fancy Towels, Kitchen Towels, Beach Towels, and all sizes & colors in Dyed Towels, Velour Towels, Yarn Dyed Towels, Yarn Dyed Stripe Towels, Yarn Dyed Stripe Velour Towels, Jacquard Towels, Jacquard Velour Towels, Dobby Design & Printed Towels.

Payments would be accepted / made through L/C, D/P basis to its trade suppliers / customers globally

Local sales are mostly on cash term basis to its domestic customers.

Its exporting countries are Australia, New Zealand, U.S.A., United Kingdom, Japan, The Netherlands, France, U.A.E., South Africa, Germany & many other countries.

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

Its major customers are Buying Agencies, Distribution Companies, Private Companies, International Buyers etc

Subject operates from caption leased office premises situated at industrial centers of Karachi.

Subject employs about 179 persons in its set up.

Annual Production Volume

Annual production volume is determinable as it’s mainly depends upon the demand / requirements from their domestic as well as international customers

Annual Sales Volume

Year	In Pak Rupees
2014	180,000,000/- (Estimated)

Trade Suppliers (Foreign)

Subject import globally from Companies belongs to China, Korea, Taiwan, Japan & European Countries. Its global trade suppliers are Companies related to Raw Materials, Machineries

Bankers

(1) Habib Metropolitan Bank Limited, Pakistan.

(2) Faysal Bank Limited, Pakistan.

(3) MCB Bank Limited, Pakistan.

(4) Meezan Bank Limited, Pakistan.

(5) Soneri Bank Limited, Pakistan.

Memberships

Karachi Chamber of Commerce & Industry.

Pakistan Towel Exporters Association.

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 1968 and is engaged in manufacture & export of Terry Towel & other Textile Made-Ups. Overall reputation is satisfactory. Trade relations are reported as fair. 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.65.98
UK Pound	1	Rs.100.11
Euro	1	Rs.70.35

INFORMATION DETAILS

Analysis Done by :	DIV

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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