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Report No. : |
339134 |
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Report Date : |
05.09.2015 |
IDENTIFICATION DETAILS
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Name : |
DIN TEXTILE MILLS LIMITED |
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Registered Office : |
Din House, 35-A/1, Lalazar Area, Opp. Beach Luxury Hotel, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
1988 |
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Com. Reg. No.: |
0018066 |
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Legal Form : |
Company Limited By Shares |
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Line of Business : |
The principal business of the company is to manufacture and sale of
yarn |
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No. of Employees : |
3,139 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
-- |
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 |
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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 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 |
DIN TEXTILE MILLS
LIMITED
|
Registered Address |
|
Din House, 35-A/1, Lalazar Area, Opp. Beach
Luxury Hotel, Karachi, Pakistan |
|
Tel # |
92 (21) 35610001, 3 |
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Fax # |
92 (21) 35610009, 35610455 |
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Website |
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Email |
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a. |
Nature of Business |
The principal business of the company is to manufacture and sale of
yarn |
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b. |
Year Established |
1988 |
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c. |
Registration # |
0018066 |
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(1) Unit-I and
II: Kot Akbar Khan, 70 Km Multan Road, Tehsil Pattoki, District Kasur,
Punjab, Pakistan. (2) Unit-III: Revenue
Estate, Bhai Kot, Tablighi Chowk, Raiwind Road, Tehsil and District, Lahore,
Punjab, Pakistan. (3) Unit-IV: 48 Km Multan Road, Bhai Pheru, District Kasur, Punjab,
Pakistan. (4) Unit-V:
Dars Road, Off Raiwind Manga Road, Bachuki Majha Distt. Kasur, Punjab,
Pakistan. |
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Address |
Din House, 16-M Model Town Extension, Lahore, Pakistan |
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Tel # |
92 (42) 35168201, 3 |
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Fax # |
92 (42) 35168206 |
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Mushtaq & Co. (Chartered
Accountants) |
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The company is limited
by shares, incorporated in Pakistan on June 13, 1988 and is listed at stock
exchanges of Pakistan |
|
Names |
Designation |
|
Mr. Shaikh
Mohammad Muneer Mr. Shaikh
Mohammad Pervez Mr. Shaikh
Muhammad Tanveer Mr. Shaikh
Muhammad Naveed Mr. Faisal
Jawed Mr. Farhad
Shaikh Mohammad Mr. Abdul
Razzak Tarmuhammad |
Chairman / Chief Executive Director Director Director Director Director Director |
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Categories |
Percentage (%) |
|
Individuals Others Directors, Chief Executive & their spouses & minor children Executives Public Sector Companies & Corporations Associated Companies Banks, DFI’s Non-Banking Finance Companies Mutual Funds Foreign Investors |
32.51 9.78 42.11 12.68 1.66 0.03 0.18 0.82 0.23 |
(1) Din Leather Private Limited, Pakistan.
Din Parekh Chemicals (Pvt.) Limited, Pakistan.
Din Power Limited, Pakistan
Din Farm Products (Pvt.) Limited, Pakistan.
The principal business of the company is to manufacture and sale of yarn
3,139
|
Years |
In Pak Rupees |
|
2013 2014 |
8,296,374,468/- 10,211,073,667/- |
It is difficult to
describe precisely the production capacity in textile industry since it
fluctuates widely depending on various factors such as count of yarn spun, raw
material used, spindle speed and twist. It would also vary according to the
pattern of production adopted in a particular year.
2014 2013
Total
number of spindles installed 98,304 81,216
Total number of
spindles worked 91,737 77,636
Number of shifts
per day 3 3
Installed capacity
of yarn converted into 20/s count-Kgs 26,718,219 26,886,931
Actual production
of yarn converted into 20/s count-Kgs 27,268,608 22,961,392
Note
:
Actual production is lower than capacity due to the manufacturing of specialized
Mélange yarn and periodic repair and maintenance.
|
Mainly to Korea, Hong
Kong, China, Taiwan & Turkey |
|
Various Local & International. |
Allied Bank Ltd,
Pakistan.
Barclays Bank
PLC, Pakistan.
Dubai Islamic
Bank Pakistan Ltd, Pakistan.
Faysal Bank Ltd,
Pakistan.
Habib Bank Ltd,
Pakistan.
Habib
Metropolitan Bank Ltd, Pakistan.
MCB Bank Ltd,
Pakistan.
Meezan Bank Ltd,
Pakistan.
National Bank of
Pakistan, Pakistan.
(10) Standard
Chartered Bank, Pakistan.
(11) The Bank of
Punjab, Pakistan.
Sound
The Textile
industry is the largest manufacturing industry in Pakistan. It has
traditionally, after agriculture, been the only industry that has generated
huge employment for both skilled and unskilled labor and continues to be the
second largest employment generating sector in Pakistan. Pakistan is the 8th
largest exporter of textile products in Asia. This sector contributes 9.5% to
the GDP and provides employment to about 15 million people or roughly 30% of
the 49 million workforce of the country. Pakistan is the 4th largest producer
of cotton with the third largest spinning capacity in Asia after China and
India, and contributes 5% to the global spinning capacity. At present, there
are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425
small units which produce textile products. Although the spinning industry is
facing acute power and energy shortages, it registered the highest addition of
546,000 spindles during 2013, according the International Textile Machinery
Federation (ITMF). Currently letters of credit for another 500,000 spindles
have already been opened by the spinning industry and the machines have started
reaching Pakistan. This is in addition to the 400,000 spindles that a Chinese
company is relocating in Faisalabad and another 200,000 being relocated by
another Chinese company at the Bin Qasim Industrial Park. After the addition of
over 1.6 million spindles, the number of spindles in the country would increase
to 13.6 million. China imported 6.21 million spindles in 2013, followed by 2.19
million spindles imported by India. For the first time in the last eight years
Bangladesh did not import add any spindle for its spinning industry. According
to the industries sources that around 100 spinning mills in the country have
closed down due to power shortages and later events might have disappointed the
industrial capital investment as government still failed to manage smooth
energy and power supplies. As far as shuttle-less looms are concerned,
Pakistani weavers did not add any new machine in 2013. This would further
enlarge the structural imbalance in the textile industry. Pakistan is already
producing surplus yarn, which it has to export because local weavers lack the
capacity to use that yarn. With the addition of 1.6 million spindles the
production of yarn would be further enhanced. The Yarn is the lowest
value-added product in the textile value chain and the inability of the domestic
23 industry to consume this yarn would provide advantageous to Pakistan’s
competitors in the region. The addition of spindles in the industry during
acute power shortages gives credence to the view that operating the spinning
industry is viable even from self-generation. The main burden faced by the
spinning sector was the 10 percent increase in the rupee’s value against the
dollar.
From the day of
inception, Din Textile has been constantly striving to achieve excellence and
generate highest value for all of its stakeholders. Today Din Textile holds an
unchallenged position at forefront of industry, within the country and overseas
for its groundbreaking developments and innovative products line, Din Textile
has gained immense trust for delivering superior quality products for exceeding
the customer expectations.
KCCI
FPCCI
APTMA
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 104.60 |
|
UK Pound |
1 |
Rs. 159.00 |
|
Euro |
1 |
Rs. 117.00 |
Din Group of Companies is engaged in diversified activities which
includes Textiles, Fuel & Energy, Chemicals, Leather, Garments etc. Group is
well known and directors are resourceful and experienced businessmen. Subject
is a well-established company enjoying satisfactory share of its market
products. Trade relations are reported as fair.
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.66.40 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.89 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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Report Prepared
by : |
TPT |
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.