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Report No. : |
351807 |
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Report Date : |
30.11.2015 |
IDENTIFICATION DETAILS
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Name : |
GUL AHMED TEXTILE MILLS LIMITED |
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Registered Office : |
Plot No. 82, Main National Highway, Landhi, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2015 |
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Date of Incorporation : |
1953 |
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Com. Reg. No.: |
0000586 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Engaged in the manufacture and sale of textile
products |
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No. of Employees : |
13,384 |
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 |
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Payment Behaviour : |
Regular |
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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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
GUL AHMED TEXTILE MILLS LIMITED
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Registered
Address |
|
Plot No. 82, Main National Highway, Landhi,
Karachi, Pakistan |
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Tel # |
92 (21) 111-485-485, 35082626, 35015702 |
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Fax # |
92 (21) 35082625 |
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Email |
Landhi Industrial Area,
Karachi, Pakistan
|
a. |
Nature of Business |
Engaged in the manufacture and sale of
textile products |
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b. |
Year Established |
1953 |
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c. |
Registration # |
0000586 |
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Kreston Hyder Bhimji & Co. (Chartered Accountants) |
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Gul Ahmed Textile Mills Limited is a public limited Company incorporated in Pakistan, with its shares
quoted on the Karachi & Lahore Stock Exchanges of Pakistan |
|
Names |
Designation |
|
Mr. Mohomed
Bashir Mr. Zain Bashir
Mr. Mohammed
Zaki Bashir Mr. Ziad Bashir
Mr. S.M. Nadim
Shafiqullah Dr. Amjad
Waheed Mr. Adnan
Afridi |
Chairman & Chief Executive Director Director Director Director Director Director |
|
Names |
Shareholding (%) |
|
Individuals Investment Companies & Mutual Funds Insurance Companies Joint Stock Companies Modaraba Companies Financial Institutions Foreign Investors Charitable Institutions Government Departments |
7.68 5.96 3.25 69.88 0.01 0.38 12.75 0.01 0.08 |
|
(1) Gul Ahmed International Limited ( FZC),
UAE (2) GTM (Europe) Limited, U.K. (3) Gul Ahmed Textile Limited, Pakistan. (4) Pakola Products Limited, Pakistan. (5) Safe Mix Concrete Products Limited,
Pakistan. (6) Excel Insurance Company Limited,
Pakistan. (7) Gul Ahmed Holdings (Pvt) Limited,
Pakistan. (8) Globe Management (Pvt) Limited,
Pakistan. (9) Metro Power Company, Pakistan. (10) GML Capital (Pvt) Limited, Pakistan. (11) Pakistan Beverages Limited, Pakistan. (12) Fun Product Pakistan (Pvt) Limited,
Pakistan. (13) Yassir Fruit Juices (Pvt) Limited,
Pakistan. (14) Yassir Industries (Pvt) Limited,
Pakistan. (15) Yassir Distributors (Pvt) Limited,
Pakistan. (16) GML Technologies (Pvt) Limited,
Pakistan. (17) Globe Garments (Pvt) Limited,
Pakistan. |
Engaged in the manufacture and sale of
textile products
13,384
2015 2014
Capacity Production Capacity
Production
Cloth (In
Sq meters 50 picks
Converted 159,205 103,461 136,745 80,025
Yarn (Kgs 20 Counts converted) 46,970 33,929 51,341 36,096
Shifts 3
shifts 3 shifts
Production is lower due to variation in
production mix and various technical factors.
Various Local & International
|
(1) Allied Bank Limited, Pakistan. (2) Bank Al Habib Limited, Pakistan. (3) Citibank, N.A., Pakistan. (4) Habib Bank Limited, Pakistan. (5) Habib Metropolitan Bank Limited,
Pakistan. (6) HSBC Bank Middle East Limited,
Pakistan. (7) Meezan Bank Limited, Pakistan. (8) National Bank Of Pakistan, Pakistan. (9) NIB Bank Limited, Pakistan. (10) Standard Chartered Bank (Pakistan)
Ltd, Pakistan. (11) The Royal Bank Of Scotland Limited,
Pakistan. (12) United Bank Limited, Pakistan. (13) Bank Islami Pakistan Limited,
Pakistan. (14) Faysal Bank Limited, Pakistan. (15) Dubai Islamic Bank, Pakistan. (16) Burj Bank Limited, Pakistan. (17) Samba Bank Limited, Pakistan. (18) Soneri Bank Limited, Pakistan. |
Sound
In today’s highly
competitive global environment, the textile sector needs to upgrade its supply
chain, improve productivity and maximize value-addition which will require
supportive textile policy from the Government to be able to compete. We hope
that the energy situation will improve in the country and policy implementation
will also be ensured by the Government. To promote sustainable economic growth,
structural reforms are needed to avert risks to the economic outlook in the
long-term. Lower tax to GDP ratio, documenting the economy, reducing
unemployment, resolving energy crisis and loss making public sector entities
are the major challenges. Steep decline in oil prices, improved credit rating
from international rating agencies and fall in inflation and discount rates
have developed positive business sentiments. The Government should capitalize
on the opportunity and drive towards comprehensive economic growth. One of the
major drivers is the LSM sector. A well thought out long-term policy and the
commitment to implement it are needed to remove structural bottlenecks of the
sectors.
All Pakistan Textile Mills Association.(APTMA)
Federation Pakistan Chamber of Commerce &
Industry.(FPCCI)
Karachi Chamber of Commerce & Industry.(KCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 105.90 |
|
UK Pound |
1 |
Rs. 161.50 |
|
Euro |
1 |
Rs. 113.50 |
Subject Company is well known and the directors are resourceful and experienced
businessmen. Trade relations are reported as fair. Payments to creditors etc
are reported as normal. 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.66.75 |
|
|
1 |
Rs.100.67 |
|
Euro |
1 |
Rs.70.87 |
|
PKR |
1 |
Rs.0.63 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
|
|
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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-- |
NB |
New Business |
-- |
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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.