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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

502977

Report Date :

09.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

STANDARD SPINNING MILLS (PVT) LIMITED

 

 

Registered Office :

2-Tipu Block, New Garden Town, Lahore

 

 

Country :

Pakistan

 

 

Financials (as on) :

2017 (Summarized)

 

 

Date of Incorporation :

2005

 

 

Com. Reg. No.:

0049852

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is engaged in Manufacture & Marketing of Yarn

 

 

No. of Employees :

350

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow and delayed 

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Pakistan

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

PAKISTAN - ECONOMIC OVERVIEW

 

Decades of internal political disputes and low levels of foreign investment have led to underdevelopment in Pakistan. Pakistan has a large English-speaking population. A challenging security environment, electricity shortages, and a burdensome investment climate have deterred investors. Agriculture accounts for one-fifth of output and two-fifths of employment. Textiles and apparel account for more than half of Pakistan's export earnings; Pakistan's failure to diversify its exports has left the country vulnerable to shifts in world demand. Pakistan’s GDP growth has gradually increased since 2012. Official unemployment was 6% in 2017, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Human development continues to lag behind most of the region.

In 2013, Pakistan embarked on a $6.3 billion IMF Extended Fund Facility, which focused on reducing energy shortages, stabilizing public finances, increasing revenue collection, and improving its balance of payments position. The program concluded in September 2016. Although Pakistan missed several structural reform criteria, it restored macroeconomic stability, improved its credit rating, and boosted growth. The Pakistani rupee, after heavy depreciation in 2013, remained relatively stable against the US dollar in 2015-17. Balance of payments concerns have reemerged, however, as a result of increased imports and declining remittances.

Pakistan must continue to address several longstanding issues, including expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, improving the country’s business environment, reducing dependence on foreign donors, and widening the country’s tax base. Given demographic challenges, Pakistan’s leadership will be pressed to implement economic reforms, promote further development of the energy sector, and attract foreign investment to support sufficient economic growth necessary to employ its growing and rapidly urbanizing population, much of which is under the age of 25.

In an effort to boost development, Pakistan and China are implementing the “China-Pakistan Economic Corridor,” with $60 billion in investments targeted towards energy and other infrastructure projects. Pakistan believes CPEC investments will enable growth rates of over 6% of GDP by laying the groundwork for increased exports. CPEC-related obligations, however, have raised IMF concern that capital outflows that will begin to increase in 2020.

 

Source : CIA

 

Company name          

 

STANDARD SPINNING MILLS (PVT) LIMITED

 

 

Full Address       

 

Registered Address

2-Tipu Block, New Garden Town, Lahore, Pakistan

                       

Tel #

92 (42) 35831981, 35831982

Fax #

92 (42) 35831982

Email

sspinning@brain.net.pk

 

 

Short Description Of Business

 

a.

Nature of Business       

Engaged in the manufacture and sale of Yarn

b.

Year Established

2005

c.

Registration No.

0049852

 

 

Mills Location

 

Depalpur Road, Near Kasur By

Pass, Depalpur, District Okara,

Punjab, Pakistan

 

 

Auditors

 

Aslam Malik & Co.

(Chartered Accountants)

 

 

Legal Status

 

The Company was incorporated as a Private Limited Company in 2005

 

 

Capital

 

Authorized Capital

Rs. 300,000,000/-  divided into 30,000,000 shares of Rs. 10/- each

Issued, Subscribed & Paid up Capital

Rs. 289,875,950/- divided into 28,987,595 shares of Rs. 10/- each

 

 

Details of Directors

 

Names

Designation

Mr. Shahzad Ali Khan

 

Mr. Shaharyar Ali Khan

 

Mrs. Tabana Shahzad

 

Mr. Hasan Javed

Chief Executive

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Names

No. of Shares

Mr. Shahzad Ali Khan

 

Mr. Shaharyar Ali Khan

 

Mrs. Tabana Shahzad

 

Sikandar Commodities (Pvt) Limited, Pakistan

 

Standard Edible Oil Mills (Pvt) Limited, Pakistan

5,870,999

 

5,969,931

 

149,364

 

 

7,712,801

 

 

9,284,500

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

                        None                                            

           

B.         Associated Companies

 

Khalid Javaid & Bros, Pakistan.

General Trading Establishment, Pakistan.

Business Activities

 

Engaged in Manufacture & Marketing of Yarn

           

 

 

Number of Employees

 

350

 

 

Mills Installed

 

20,000 spindles

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2016

2017

2,113,188,869/-

2,479,046,525/-

 

 

Trade Suppliers (Foreign)

 

Subject import globally from Companies belongs to China, Korea, Taiwan, Hong Kong, Indonesia Japan & European Countries. Its global trade suppliers are Companies related to Textile Raw Materials, Machineries

 

 

Bankers

           

(1) Silk Bank Limited, Pakistan.

(2) Soneri Bank Limited, Pakistan.

(3) The Bank of Punjab, Pakistan.

(4) Habib Bank Limited, Pakistan.

(5) MCB Bank Limited, Pakistan.

 

 

 

Memberships

 

All Pakistan Textile Mills Association.(APTMA)

Lahore Chamber of Commerce & Industry.(LCCI)

 

 

Comments

 

Subject Company was established in 2005 and is engaged in manufacture and sale of yarn. Overall reputation is normal. Trade relations are reported as fair. In view of current disturbed economic and political situation, we would advise to deal with all the business in Pakistan with some caution.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.99

UK Pound

1

INR 90.96

Euro

1

INR 79.51

PKR

1

INR 0.56

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TRU

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.