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Report No. : |
346177 |
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Report Date : |
24.10.2015 |
IDENTIFICATION DETAILS
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Name : |
GADOON TEXTILE MILLS LIMITED |
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Registered Office : |
7-A, Muhammad Ali Housing Society, Abdul Aziz Haji Hashim Tabba Street, Karachi-75350 |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2015 |
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Year of Establishment : |
1988 |
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Com. Reg. No.: |
0017553 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacture and Sale of Yarn |
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No. of Employees : |
2,000 - 3,000 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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) |
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Pakistan |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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.
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Source
: CIA |
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Business Name |
GADOON TEXTILE
MILLS LIMITED |
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Registered
Address |
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7-A, Muhammad Ali Housing Society, Abdul
Aziz Haji Hashim Tabba Street, Karachi-75350, Pakistan |
|
Tel # |
92 (21) 35205479, 35205480 |
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Fax # |
92 (21) 34382436 |
|
a. |
Nature of Business |
Principally engaged in manufacture and sale
of Yarn |
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b. |
Year Established |
1988 |
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c. |
Registration # |
0017553 |
Syed’s Tower, Third Floor, Opposite
Custom House, Jamrud Road,
Peshawar, Pakistan
(1) 200-201, Gadoon Amazai Industrial Estate, District Swabi, Khyber
Pakhtoonkwa, Pakistan
(2) 57 K.M., On Super Highway, Karachi, Pakistan.
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M. Yousuf Adil Saleem & Co. (Chartered Accountants) |
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Gadoon Textile Mills Limited is a public limited company incorporated
in Pakistan and is quoted at Karachi, Lahore & Islamabad Stock Exchanges
of Pakistan |
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Names |
Designation |
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Mr. Muhammad Yunus Tabba Mr. Muhammad Sohail Tabba Mr. Muhammad Ali Tabba Mr. Javed Yunus Tabba Mrs. Rahila Aleem Mrs. Mariam Tabba Khan Mr. Moin M. Fudda |
Chairman Chief Executive Director Director Director Director Director |
|
Name |
Shareholding (%) |
|
Directors, CEO and their spouse and minor
children Associated Companies, Undertakings &
related parties NIT & ICP Public Sector Companies & Corporations Banks, Development Financial Institutions,
Non Banking Financial Institutions Insurance companies Modarabas & Mutual Funds General Public Others |
0.05 76.65 0.14 4.51 0.04 1.88 0.99 14.90 0.82 |
|
(1) Yunus Brothers,
Pakistan. (2) Aziz Tabba Foundation, Pakistan. (3) Lucky Energy (Pvt) Limited, Pakistan. (4) Lucky Textile Mills Limited, Pakistan. (5) Fazal Textile Mills Limited, Pakistan. (6) Lucky Cement Limited, Pakistan. (7) Aziz Tabba Kidney Centre, Pakistan. (8) Yunus Textile Mills Limited, Pakistan. (9) Lucky Paragon Readymix Limited,
Pakistan. (10) Lucky Knits (Pvt) Limited, Pakistan. (11) Tabba Heart Institute, Pakistan. (12) LuckyOne (Pvt) Limited, Pakistan. (13) Yunus Energy Limited, Pakistan. (14) ICI Pakistan Limited, Pakistan. |
Principally engaged in manufacture and sale
of Yarn
2,000 - 3,000
2015 2014
Total number of spindles installed 316,780 246,224
Number of shifts worked per day 3 3
Number of days worked 365 365
Number of shifts worked
1,093 1,093
Average number of spindles shift worked
315,733,832 261,691,233
Installed capacity after conversion into
20/s (Kgs) 119,597,217 99,126,655
Actual capacity conversion into 20/s
(Kgs) 111,709,341 93,864,989
Actual production (Kgs) 75,258,294 58,181,748
It is difficult to describe precisely the
production capacity in the textile industry since it fluctuate widely depending
on various factors such as count of yarn spun, spindles speed, twist per inch,
raw material used etc
|
Years |
In Pak Rupees |
|
2014 2015 |
20,066,084,000/- 23,003,447,000/- |
|
Various local & international |
|
(1) Allied Bank
Limited, Pakistan. (2) Bank Alfalah
Limited, Pakistan. (3) Bank Al-Habib
Limited, Pakistan. (4) Bank Islami Pakistan
Limited, Pakistan. (5) Barclays Bank
Limited, Pakistan. (6) Citibank N.A.. (7) Dubai Islamic
Bank Pakistan Limited. (8) Faysal Bank
Limited, Pakistan. (9) Habib Bank
Limited, Pakistan. (10) Habib
Metropolitan Bank Limited, Pakistan. (11) HSBC Bank Middle
East Limited, Pakistan. (12) Meezan Bank
Limited, Pakistan. (13) National Bank of
Pakistan. (14) Standard
Chartered Bank, Pakistan. (15) The Bank of
Punjab, Pakistan. (16) United Bank Limited, Pakistan. |
The year under review was of immense
significance, as with effect from the close of business on September 30, 2014,
Fazal Textile Mills Limited – Textile undertaking (FTML) has been merged with
and into your Company. This strategic decision once again depicts the commitment
of your Company to look for ways to provide maximum returns to its valued
stakeholders. This merger has further strengthened your Company, and the
management is humbled by the constant and unwavering support that it has
received from all its stakeholders during the process. At the beginning of the
period under review, a number of external factors including weaker Chinese
currency, availability of subsidized Indian yarn in the market, increase in
conversion costs (mainly power and fuel) adversely affected the financial
performance of your Company. Keeping in mind all such uncontrollable factors,
efficient strategies were adopted and effectively implemented by the management
in order to minimize negative impact of the current scenario.
In the light of present market conditions,
your Company has remained consistent with its financial and operating
performance. As a strategic step towards rationalization, we are pleased to
announce that after due approval, Fazal Textile Mills Limited (FTML) has been
merged with and into Gadoon Textile Mills Limited (GTML) with effect from
October 1, 2014. Cost synergies in terms of economies of scale, increased
purchasing power and reduced overheads followed by revenue synergies from
increased product portfolio, customer base and sharing of distribution channels
are expected from the merger in coming years.
As always, GTML continued to actively
contribute to economic prosperity in Pakistan by providing direct employment
to4,786 permanent and contractual employees, along with compensation and
benefits of Rs. 1.9 billion. The Company also contributed an amount of Rs. 436
million (2014: Rs. 420.5 million) into the Government Treasury on account of
all kinds of taxes, excise duty and sales tax. Furthermore, significant foreign
exchange through export sales realized to the tune of more than US $ 90 million
was also brought to the reserves of the Central Bank of the country during the
period. During the year under review, GTML sold goods worth Rs. 21.9 billion
(75.3 million Kgs) of cotton and man-made yarn by buying local and imported raw
materials worth Rs. 13.3 Billion. Company has also contributed in the economy
through payments to providers of funds to the tune of 903 million, and Rs. 113
million in the shape of shareholders’ returns through cash dividends.
GTML will continue to explore all possible
technological areas to maximize benefits for our businesses. We look for
expansion in our in-house developed ERP project, our team will explore the
possibilities of giving platform where management can utilize IT for their
strategic decision.
·
Karachi Chamber of Commerce & Industry.(LCCI)
·
All Pakistan Textile Mills Association.(APTMA)
·
Federation Pakistan Chamber of Commerce &
Industry.(FPCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 104.40 |
|
UK Pound |
1 |
Rs. 158.75 |
|
Euro |
1 |
Rs. 118.00 |
Subject Company enjoys good reputation in Pakistan. 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.64.88 |
|
|
1 |
Rs.99.89 |
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Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
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Analysis Done by
: |
TRI |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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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 |
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<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.