MIRA INFORM REPORT

 

 

Report No. :

348792

Report Date :

19.11.2015

 

IDENTIFICATION DETAILS

 

Name :

SIDDIQSONS LIMITED

 

 

Registered Office :

7th Floor, Siddiqsons Tower, 3 Jinnah Cooperative Housing Society, Shahrah-e-Faisal, Karachi

 

 

Country :

Pakistan

 

 

Date of Incorporation :

1989

 

 

Com. Reg. No.:

0020239

 

 

Legal Form :

Public Limited Company (Not listed at any stock exchange of Pakistan)

 

 

Line of Business :

Principal activity of the Company is manufacturing and sale of Textile Products

 

 

No. of Employee :

About 350 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 :

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

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

 

SIDDIQSONS LIMITED

 

 

Full Address

 

Registered Address

7th Floor, Siddiqsons Tower, 3 Jinnah Cooperative Housing Society, Shahrah-e-Faisal, Karachi, Pakistan

 

Tel #

92 (21) 111-111-001, 34390142, 34325193, 34325194, 34325195

Fax #

92 (21) 34325195

Email

javid@siddiqsons.com

 

 

Short Description Of Business

 

a.

Nature of Business

Principal activity of the Company is manufacturing and sale of Textile Products

b.

Incorporated

1989

c.

Registration No.

0020239

 

 

Factory Location

 

D-53, S.I.T.E., Karachi,

Pakistan

 

 

Auditors

 

M. Yousuf Adil Saleem & Company

(Chartered Accountants)

 

 

Legal Status

 

Public Limited Company (Not listed at any stock exchange of Pakistan)

 

6.

Authorized Capital

Rs. 200,000,000/- divided into 20,000,000 shares of Rs. 10/- each

 

Issued & Paid up Capital

Rs. 183,024,800/- divided into 18,302,480 shares of Rs. 10/- each

 

 

Details of Directors

 

Names

Designation

Mr. Tariq Rafi

 

Mrs. Nighat Tariq

 

Mr. Abdul Rahim

 

Mr. Sajjad Ahsan

 

Mr. Ibrahim Shamsi

 

Mr. Fazal-e-Rabbi

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders

 

Names

No. of Shares

Mr. Tariq Rafi

 

Mrs. Nighat Tariq

 

Mr. Abdul Rahim

 

Mrs. Aisha Saad Garib

 

Mr. Sajjad Ahsan

 

Mr. Ibrahim Shamsi

 

Mrs. Alia Sajjad

 

Mrs. Rahma Ibrahim

 

Mr. Shafi Ahmed

 

Mr. Fazal-e-Rabbi

 

Mrs. Kousar Jamal

 

Mrs. Ambar Masood

11,320,370

 

2,803,610

 

2,241,170

 

377,450

 

5,000

 

4,580

 

1,405,550

 

139,550

 

5,180

 

10

 

5

 

5

 

 

Associates

 

A.         Subsidiary

 

None

 

B.         Associated Companies

 

(1) Siddiqsons Industries (Pvt) Limited, Pakistan.

(2) Siddiqsons Knit (Pvt) Limited, Pakistan.

(3) Siddiqsons Hosiery Dyeing & Bleaching Mills (Private) Limited, Pakistan.

(4) Siddiqsons Agro Exports & Agro Farms, Pakistan.

(5) Siddiqsons Tin Plate Limited, Pakistan.

 

 

Business Activities

 

Principal activity of the Company is manufacturing and sale of Textile Products.

 

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

 

It sells its product through cash / credit terms in local markets. Whereas in case of export, payment would be accepted through L/C, D/P basis.

 

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

 

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

 

Subject employs about 350 persons in its set up.

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2013

2014

7,292,279,077/-

7,759,746,709/-

 

 

 

Annual Production Volume

 

2014                 2013

Spinning Unit

 

Number of spindles installed                                         13,440             13,440

Number of spindles worked                                          13,440             13,440

Number of shifts per day                                                       3                      3

Number of rotors installed                                             1,944               1,944

Number of rotors worked                                                1,944               1,944

Installed capacity after conversion into

20/s counts – Kgs                                                   6,878,538          6,878,538

Actual production of yarn after conversion

Into 20/s count – Kgs                                              6,844,123        5,889,372

 

Weaving Unit

 

Number of looms installed                                                 172                   172

Number of looms worked                                                   172                   172

Number of shifts per day                                                       3                      3

Installed capacity after conversion into 20/s count

- Kgs                                                                    21,600,000      20,160,000

Actual   production of yarn after conversion into

20/s – Kgs                                                           18,405,563      18,363,712

 

 

Trade Suppliers (Foreign)

 

Subject import globally from Companies belongs to China, Korea, European Countries, Japan, Thailand, Hong Kong, U.K. & Taiwan

 

 

Bankers

 

(1) Allied Bank Limited, Pakistan.

(2) Dubai Islamic Bank Limited, Pakistan.

(3) Habib Metropolitan Bank Limited, Pakistan.

(4) Habib Bank Limited, Pakistan.

(5) MCB Bank Limited, Pakistan.

(6) Meezan Bank Limited, Pakistan.

(7) National Bank of Pakistan.

(8) Soneri Bank Limited, Pakistan.

(9) JS Bank Limited, Pakistan.

 

 

Memberships

 

KCCI

FPCCI

PHMA

 

 

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 1989. Principal activity of the Company is manufacturing and sale of Textile Products. Market reputation is satisfactory. 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

UK Pound

1

Rs.100.51

Euro

1

Rs.70.39

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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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.