MIRA INFORM REPORT

 

 

Report No. :

502980

Report Date :

16.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

FAZAL WEAVING MILLS LIMITED

 

 

Registered Office :

69/7, Abid Majeed Road, Survey # 248/7, Lahore Cantt, Lahore

 

 

Country :

Pakistan

 

 

Financials (as on) :

2016 (Summarized)

 

 

Year of Establishment :

1989

 

 

Com. Reg. No.:

0020580

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Manufacture, Marketing & Sale of Yarn.

 

 

No. of Employees :

525

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

B

 

Credit Rating

Explanation

 

Rating Comments

B

Medium Risk

Business dealings permissible on a regular monitoring basis

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

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

                                   

Business Name

FAZAL WEAVING MILLS LIMITED

 

 

Full Address       

 

Registered Address

69/7, Abid Majeed Road, Survey # 248/7, Lahore Cantt, Lahore, Pakistan

                       

Tel #

92 (42) 36621362 – 66 (5 Lines)

Fax #

92 (42) 36621367

 

 

Short Description Of Business

 

a.

Nature of Business      

Engaged in manufacture, marketing & sale of yarn

b.

Incorporated

1989

c.

Registration No.

0020580

 

 

Branches

 

Address

129/1, Old Bhawalpur Road, Multan, Pakistan

Tel #

92 (61) 4587632, 4573338

Fax #

92 (61) 4541832

 

 

Mills Location

 

20-K.M., Qadirpur Rawan Bypass,

Khanewal Road, Multan, Pakistan

 

 

Auditors

 

KPMG Taseer Hadi & Co.

(Chartered Accountants)

 

 

 

Legal Status

 

Subject Company was established as a Public Limited Company in 1989

 

 

Capital

 

Authorized Capital    

Rs.300,000,000/-

Issued & Paid up Capital

Rs.250,000,000/-

 

 

Details of Management

 

Names

 

Designation

Mr. Sheikh Naseem Ahmed

 

Mrs. Fahd Mukhtar

 

Mr. Faisal Ahmad Mukhtar

 

Mr. Fazal Ahmad Sheikh

 

Mrs. Mahnaz Amir Sheikh

 

Mrs. Rabia Rehman

 

Mr. Rehman Naseem

 

Mr. Sheikh Naseem Amad

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders   

            

Names

 

No. of Shares

Mr. Sheikh Naseem Ahmad

 

Mrs. Rabia Rehman

 

Mr. Fahd Mukhtar

 

Fazal Cloth Mills Limited, Pakistan

 

Fazal Ahmad Sheikh

 

Mr. Faisal Ahmad

 

Mrs. Mahnaz Amir Sheikh

 

Mr. Rehman Naseem

2,500

 

2,500

 

2,500

 

24,982,500

 

2,500

 

2,500

 

2,500

 

2,500

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

None

           

B.         Associated Companies

           

(1) Ahmed Fine Textile Mills Limited, Pakistan.

(2) Fazal Rehman Fabrics Limited, Pakistan.

(3) Amir Fine Exports (Pvt) Limited, Pakistan.

(4) Fazal Cloth Mills Limited, Pakistan.

 

 

Business Activities

 

Subject Company is engaged in manufacture, marketing & sale of yarn.

 

It imports Textile Raw Materials, Textile Machineries through L/C, D/P basis.

 

It sells its products to its domestic customers including Buying Agencies, Trading Companies, International Buyers etc.

 

Its exporting countries are European Countries & Far East Countries.

 

Its importing countries are China, Korea, Taiwan, Thailand, Hong Kong & European Countries.

 

Its major customers are reputable companies, Domestic & Worldwide.

 

Subject employs about 525 persons in its set up.

 

 

Annual Sales Volume

 

Years

 

In Pak Rupees

2014

2015

2016

762,768,816/-

820,000,000/-

920,000,000/-

 

 

Mills Installed

                                               

26,500 spindles

 

 

Trade Suppliers (Foreign)

 

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

 

 

Bankers

 

(1) Faysal Bank Limited, Pakistan.

(2) Bank Alfalah Limited, Pakistan.

(3) Askari Bank Limited, Pakistan.

(4) MCB Bank Limited, Pakistan.

(5) Habib Bank Limited, Pakistan.

(6) Meezan Bank Limited, Pakistan.

(7) United Bank Limited, Pakistan.

(8) Allied Bank Limited, Pakistan.

(9) The Bank of Punjab, Pakistan.

 

 

Memberships

 

MCCI

APTMA

FPCCI

 

 

Comments

 

Subject Company enjoys good reputation in Pakistan. Directors of the Company are reported as qualified, experienced and resourceful businessmen. Payments are slow. 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 65.22

UK Pound

1

INR 92.77

Euro

1

INR 80.34

PKR

1

INR 0.57

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRI

 

 

Report Prepared by :

NIT

 

 

 

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)

 

 

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