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Report No. : |
350901 |
|
Report Date : |
23.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
FAISAL SPINNING MILLS LIMITED |
|
|
|
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Registered Office : |
Umer House, 23/1, Sector 23, S.M. Farooq Road, Korangi Industrial Area, Karachi |
|
|
|
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Country : |
Pakistan |
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|
|
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Financials (as on) : |
30.06.2015 |
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|
|
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Date of Incorporation : |
1985 |
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|
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Com. Reg. No.: |
0012667 |
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|
|
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Legal Form : |
Public Limited Company |
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|
|
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Line of Business : |
Engaged in Manufacture & Sale of Yarn
& Fabric |
|
|
|
|
No. of Employees : |
1,081 |
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 |
FAISAL SPINNING
MILLS LIMITED
|
Registered
Address |
|
Umer House, 23/1, Sector 23, S.M. Farooq
Road, Korangi Industrial Area, Karachi, Pakistan |
|
Tel # |
92 (21) 35115177 - 80 (4 Lines) |
|
Fax # |
92 (21) 35063002, 35063003 |
|
Email |
|
a. |
Nature of Business |
Engaged in manufacture & sale of yarn
& fabric |
|
b. |
Year Established |
1985 |
|
c. |
Registration No. |
0012667 |
|
Address |
9th Floor, City Tower, 6-K, Main
Boulevard, Gulberg II, Lahore, Pakistan |
|
Tel No. |
92 (42) 111-130-130 |
|
Fax No. |
92 (42) 35770015 |
(1) A-150, S.I.T.E., Nooriabad, Karachi,
Pakistan.
(2) 18-KM, Sheikhupura Faisalabad, Road, Feroz
Watwan, Sheikhupura, Punjab, Pakistan.
|
The Company was incorporated in Pakistan as
a public limited company and is listed at Stock Exchanges of Pakistan |
|
Mushtaq & Company (Chartered Accountants) |
|
Names |
Designation |
|
Mr. Mohammad Salim Mr. Bilal Sharif Mr. Khurram Salim Mr. Mohammad Amin Mr. Adil Shakeel Mr. Mohammad Sharif Mr. Mohammad Shakeel Mr. Iqbal Mehboob Mr. Anwar Hussain |
Chairman Chief Executive Director Director Director Director Director Director Director |
|
Categories |
Shareholding (%) |
|
Directors, Chief Executive Officer their
spouse and minor children Associated Companies, Undertakings and
related parties NIT / ICP Bank / Financial Institutions Insurance Companies Modarbas & Mutual Funds General Public / Individuals Other Companies Joint Stock Companies |
47.02 42.15 0.01 0.04 2.22 0.00 8.50 0.04 0.02 |
A. Subsidiary
None
B. Associated Companies
Bhanero
Textile Mills Limited, Pakistan.
Firhaj
Footwear (Pvt) Limited, Pakistan.
Blessed
Textile Limited, Pakistan.
Bhanero
Energy Limited, Pakistan.
Bhanero
Textile Power Generation, Pakistan.
Faisal
Spinning Power Generation, Pakistan.
City
Towers, Pakistan.
S.M.
Saeed Goreja, Pakistan.
Engaged in manufacture & sale of yarn
& fabric
1,081
2014 2013
Spinning
Number of spindles installed 37,920 30,720
Number of spindles worked
37,920 30,720
Number of working days
365
365
Number of Shifts per day 3 3
Installed capacity in Kilograms, after
conversion into 20/s count
(based on actual number of working days) 11,957,025 11,434,172
Actual production of yarn in Kilograms, after
conversion into
20/s count (based on actual number of working
days) 15,695,603 13,231,677
Weaving
Number of looms installed
263) 277)
Number of looms worked
263) 263)
Number of shifts per day
365) 365
Number of Shifts per day 3 3
Capacity after conversion into 50 picks -
square yards 41,237,155) 41,237,155)
Actual production after conversion into 50
picks - square yards 41,754,296) 31,489,829)
|
(1) Bank Al-Habib
Limited, Pakistan. (2) Bank Alfalah
Limited, Pakistan. (3) Barclays Bank
PLC, Pakistan. (4) Dubai Islamic Bank
Pakistan Limited. (5) Habib Bank
Limited, Pakistan. (6) Meezan Bank
Limited, Pakistan. (7) Samba Bank
Limited, Pakistan. (8) Soneri Bank
Limited, Pakistan. (9) Standard
Chartered Bank, Pakistan. (10) United Bank
Limited, Pakistan. |
|
Various local & international |
|
Mainly to European, Far East & Gulf
Countries |
Sound
Inflation, power shortage and social
disruptions arising from law and order situations are major concerns for
business activities in country. Rising inflation, devaluation of Rupee and high
markup rates may have severe adverse impact on the growth of the economy.
APTMA
FPCCI
KCCI
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 105.90 |
|
UK Pound |
1 |
Rs. 161.50 |
|
Euro |
1 |
Rs. 113.50 |
Subject Company was
established in 1985 and is engaged in manufacture & sale of Yarn &
Fabric. 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.66.09 |
|
|
1 |
Rs.101.04 |
|
Euro |
1 |
Rs.70.85 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.