MIRA INFORM REPORT

Report No. :	352004
Report Date :	27.11.2015

IDENTIFICATION DETAILS

Name :	INDUS DYEING & MANUFACTURING COMPANY LIMITED

Registered Office :	Office # 508, 5^th Floor, Beaumont Plaza, Beaumont Road, Civil Lines Quarters, Karachi

Country :	Pakistan

Financials (as on) :	30.06.2015

Year of Established :	1957

Com. Reg. No.:	0000885

Legal Form :	Public Limited Company

Line of Business :	Principal activity of the Company is to manufacture & sale of Yarn

No. of Employee :	2,431

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 :	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

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

INDUS DYEING & MANUFACTURING COMPANY LIMITED

Full Address

Registered Address

Office # 508, 5^th Floor, Beaumont Plaza, Beaumont Road, Civil Lines Quarters, Karachi, Pakistan

Tel #	92 (21) 111-404-404, 35693641 - 60 (19 Lines)
Fax #	92 (21) 35693593, 35693594

Short Description Of Business

a.	Nature of Business	Principal activity of the Company is to manufacture & sale of Yarn
b.	Year Established	1957
c.	Registration #	0000885

Branches

Address	Ground Floor, K.D.L.B. Bldg., 59-West Wharf Road, Karachi, Pakistan
Tel #	92 (21) 32310758, 32310751
Fax #	92 (21) 32313814, 32310760

Factories Locations

(1) P 1, S.I.T.E., Hyderabad, Pakistan.

(2) Muzaffergarh, Bagga Sher, District Multan, Pakistan.

(3) Plot No. 3 & 7, Sector-25, Korangi Industrial Area, Korangi, Karachi, Pakistan.

(4) 2 KM Manga Raiwand Road, Near Nafees Legler, District Kasur, Punjab, Pakistan.

Auditors

M. Yousuf Adil Saleem & Co.

(Chartered Accountants)

Legal Status

The Company was incorporated in Pakistan as a public limited company and is listed at stock exchanges of Pakistan

Details of Management

Names

Designation

Mr. Mian Mohammad Ahmed

Mr. Shahzad Ahmed

Mr. Mian Riaz Ahmed

Mr. Naveed Ahmed

Mr. Kashif Riaz

Mr. Irfan Ahmed

Mr. Shafqat Masood

Mr. Shahwaiz Ahmed

Mr. Sheikh Nishat Ahmed

Mr. Farooq Hassan

Chairman

Chief Executive

Director

Shareholders

Categories

Percentage (%)

Individuals

Joint Stock Companies

Financial Institutions

Insurance Companies

Investment Companies

Directors, CEO & their Spouse & minor childrens

1.97

2.59

1.59

2.47

2.92

88.46

Associates

Subsidiary

None

Associated Companies

Yusuf Textile Mills Limited, Pakistan.

Sunrays Textile Mills Limited, Pakistan.

Indus Home Limited, Pakistan.

Business Activities

Principal activity of the Company is to manufacture & sale of Yarn

Number of Employees

2,431

Plant Capacity & Production

Description

2015

2014

Spinning Unit

Total number of spindles installed

Total number of spindles worked per annum (average)

Number of shifts worked per day

Installed capacity of yarn converted into 20 counts (Lbs) based on 365

Days

Actual production of the year after conversion into 20 counts (Lbs)

Ginning Unit

Installed capacity to produce cotton bales

Actual production of cotton bales

Number of shifts

Capacity attained in (%)

198,672

190,753

147,218,918

130,540,075

135,000

14,797

10.96%

197,672

190,028

134,046,800

134,317,644

135,000

19,723

14.61%

Annual Sales Volume

Years

In Pak Rupees

2014

2015

18,616,732,000/-

20,285,043,000/-

Trade Suppliers (Foreign)

Various International belongs to China, European Countries, Korea, India, Taiwan, Japan & U.S.A.

Customers

Mainly Buying Agencies, Distribution Companies, Private Companies etc

Bankers

MCB Bank Limited, Pakistan.

Habib Bank Limited, Pakistan.

United Bank Limited, Pakistan.

National Bank of Pakistan.

NIB Bank Limited, Pakistan.

Habib Metropolitan Bank Limited, Pakistan.

Future Outlook

Slump prevails in demand of yarn in international market particularly in China, the largest buyer of yarn, which will impact the prices. Cotton prices become steady as compared to the last years which will help in recovering profits next year.

Memberships

· Karachi Chamber of Commerce & Industry.

· All Pakistan Textile Mills 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

Indus Group of Companies enjoys good reputation in the Pakistani Business Circle. Directors are zeported as qualified, experienced and resourceful businessmen. Payments are usually correct and as per commitments. Company can be considered good for normal business dealings at usual trade terms and conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.55
UK Pound	1	Rs.100.64
Euro	1	Rs.70.70

INFORMATION DETAILS

Analysis Done by :	DIV

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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