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Report No. : |
348777 |
|
Report Date : |
19.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
PREMIUM TEXTILE MILLS LIMITED |
|
|
|
|
Registered Office : |
1st Floor,
Haji Adam Chambers, Altaf Hussain Road, New Challi, Karachi |
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|
|
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Country : |
Pakistan |
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|
|
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Date of Incorporation : |
1987 |
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|
|
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Com. Reg. No.: |
0015744 |
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|
|
|
Legal Form : |
Public Limited Company |
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|
|
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Line of Business : |
Manufacture & sale of Cotton & Polyester Yarn |
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|
|
|
No. of Employee : |
About 2,302 persons |
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 : |
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 |
PREMIUM
TEXTILE MILLS LIMITED
|
Registered
Address |
|
1st Floor, Haji Adam Chambers, Altaf Hussain Road, New
Challi, Karachi, Pakistan |
|
Tel
# |
92 (21) 32400405 - 08 (4 Lines) |
|
Fax
# |
92 (21) 32417908 |
|
Email |
|
a. |
Nature
of Business |
Manufacture & sale of Cotton &
Polyester Yarn |
|
b. |
Year
Established |
1987 |
|
c. |
Registration
# |
0015744 |
Plot No. 60 - 61 & 76-77,
Main Super Highway, Nooriabad,
District Dadu (Sindh), Pakistan
|
Rahman Sarfaraz Rahim Iqbal Rafiq (Chartered
Accountants) |
|
The Company was incorporated in Pakistan
as a public limited company and is listed at stock exchanges of Pakistan |
|
Names |
Designation |
|
Mr. Abdul Kader Haji Adam Mr. Mohammed Yasin Siddik Mr. Mohammed Aslam Mr. Mohammad Ali Jaliawala Mr. Mohammed Tufail Mr. Ghulam Mohammed Surti Mr. Aamir Amin |
Chairman / Chief Executive Executive Director Director Director Director Director Director (NIT Nominee) |
|
Categories |
Percentage
(%) |
|
Banks, Development Financial Institutions,
Non Banking Financial Institutions Directors, CEO, and their spouses and
minor children NIT & ICP Others Individuals |
2.72 17.81 0.01 70.53 8.93 |
A. Subsidiary
None
B. Associated
Companies
- Do
–
Subject Company is engaged in manufacture
& sale of Cotton & Polyester Yarn.
Its mainly import Textile Raw Materials,
Textile Machineries through D/A, D/P
basis.
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
Karachi & Interior Sindh.
Subject employs about 2,302 persons in its set up.
|
Years |
In
Pak Rupees |
|
2014 2015 |
7,212,829,001/- 6,030,823,143/- |
|
Description |
2015 |
2014 |
|
Number of spindles installed Number of spindles
operated Installed capacity
in Kgs after conversion into 20 single count Actual production of
yarn in Kgs after conversion into 20 single count Number of shifts
worked during the year |
61,260 57,718 20,861,356 19,655,151 1,092 |
47,263 45,104 16,094,846 15,085,312 1,092 |
|
Mainly Distribution Companies, Buying
Agencies, Garments & Apparel Factories, Local Traders etc |
|
(1) Bank Al-Habib
Limited, Pakistan. (2) Habib Metropolitan
Bank Limited, Pakistan. (3) Habib Bank
Limited, Pakistan. (5) National Bank of
Pakistan. (6) Meezan Bank
Limited, Pakistan. |
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.
All Pakistan Textile Mills Association.(APTMA)
Karachi Chamber of Commerce & Industry.(KCCI)
Federation Pakistan Chamber of Commerce
& Industry.(FPCCI)
|
Currency |
Unit |
Pakistani
Rupee |
|
US Dollar |
1 |
Rs. 105.55 |
|
UK Pound |
1 |
Rs. 162.00 |
|
Euro |
1 |
Rs. 114.50 |
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.66.11 |
|
|
1 |
Rs.100.51 |
|
Euro |
1 |
Rs.70.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
|
|
Report Prepared
by : |
SDA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.