MIRA INFORM REPORT

 

 

Report No. :

345824

Report Date :

19.10.2015

 

IDENTIFICATION DETAILS

 

Name :

FEROZE1888 MILLS LIMITED

 

 

Registered Office :

H-23/4A, Landhi Industrial Area, Landhi, Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

1972

 

 

Com. Reg. No.:

0003794

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Company is principally engaged in production and export of Towels

 

 

No. of Employees :

2,787

 

 

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 exportshas 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 themid-2000’s, 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 sectorsin 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

 

FEROZE1888 MILLS LIMITED

 

 

Full Address       

 

Registered Address

 

H-23/4A, Landhi Industrial Area, Landhi, Karachi, Pakistan

                       

Tel #

92 (21) 35080648, 35082827

Fax #

92 (21) 35082826

 

 

Short Description Of Business

 

a.

Nature of Business      

Company is principally engaged in production and export of Towels

b.

Incorporated

1972

c.

Registration No.

0003794

 

 

Branches

 

In Karachi at present

 

 

Auditors

           

Rahman Sarfaraz Rahim Iqbal Rafiq

(Chartered Accountants)

 

 

Legal Status       

           

Subject Company was established as a Public Limited Company in 1972 and is listed at Karachi Stock Exchange of Pakistan

 

Authorized Capital     

Rs. 4,000,000,000/-

Issued & Paid up Capital

Rs. 3,768,009,680/-

 

 

Details of Directors

 

Names

 

Designation

Mr. Anas Rahman

 

Mr. Jawed Yunus Tabba

 

Mr. Jonathan R. Simon

 

Mr. Khaleeq-Ur-Rahman

 

Mr. Pervez Saeed

 

Mr. Perwez Ahmed

 

Mr. Shabbir Ahmed

 

Mr. Sheikh Zafar Ahmed

Chief Executive

 

Director

 

Director

 

Chairman

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders

 

Categories

 

Percentage (%)

Directors, Chief Executive Officer, their spouse and minor children

 

NIT & ICP

 

Banks, Development Finance Institutions, Non-Banking Finance Institutions and others

 

Shareholding 10% or more

 

General Public

 

46.79

 

0.00

 

 

 

0.00

 

18.63

 

34.58

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

                        None                                             

           

 

B.         Associated Companies

 

 - Do -

 

 

Business Activities

 

Subject Company is principally engaged in production and export of Towels.

 

Payments would be accepted / made through L/C, D/P basis.

 

Its exporting Countries are European Countries & U.S.A.

 

It’s mainly import from China, India, Taiwan, Hong Kong, Thailand, Indonesia, Korea, Japan & European Countries.

 

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

 

Subject operates from caption leased premises located at commercial & industrial centers of Karachi.

 

Subject employs about 2,787 persons in its set up.

 

 

Annual Sales Volume

 

Years

 

In Pak Rupees

2013

2014

13,484,144,000/-

17,697,272,000/-

 

 

Trade Suppliers (Foreign)

 

Subject import globally from Companies belongs to China, India, Taiwan, Hong Kong, Thailand, Indonesia, Korea, Japan & European Countries

 

 

Bankers

           

(1) Askari Bank Limited, Pakistan.

(2) Bank Al-Habib Limited, Pakistan.

(3) Habib Bank Limited, Pakistan.

(4) Habib Metropolitan Bank Limited, Pakistan.

(5) Meezan Bank Limited, Pakistan.

(6) Standard Chartered Bank, Pakistan.

(7) United Bank Limited, Pakistan.

 

Production Capacity

 

Towels Looms              Capacity         Actual

 

2014                    281               93,142,493     77,147,966        

2013                    276               92,380,611     75,085,230   

 

 

Memberships

 

Karachi Chamber of Commerce & Industry.(KCCI)

Federation Pakistan Chamber of Commerce & Industry.(FPCCI)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 104.45

UK Pound

1

          Rs. 160.50

Euro

1

          Rs. 118.25

 

 

Comments

 

Subject Company was established in 1972 and is engaged in production and export of Towels. Directors of the Company are reported as qualified, experienced & 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.64.97

UK Pound

1

Rs.100.55

Euro

1

Rs.73.99

 

 

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%)

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