|
|
|
MIRA INFORM REPORT
|
Report No. : |
502979 |
|
Report Date : |
16.04.2018 |
IDENTIFICATION DETAILS
|
Name : |
NAGINA COTTON MILLS LIMITED |
|
|
|
|
Registered Office : |
2nd Floor, Shaikh Sultan Trust Building No. 2, 26, Civil Lines,
Beaumont Road, Karachi |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
30.06.2017 |
|
|
|
|
Year of Establishment : |
1967 |
|
|
|
|
Com. Reg. No.: |
0002500 |
|
|
|
|
Legal Form : |
Public Limited Company (Listed at stock exchange of Pakistan) |
|
|
|
|
Line of Business : |
The principal business of the Company is manufacture and sale of yarn. |
|
|
|
|
No. of Employees : |
1,092 |
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
|
Business Name |
NAGINA COTTON
MILLS LIMITED |
Full
Address
|
Registered
Address |
|
2nd Floor, Shaikh Sultan Trust Building No. 2, 26, Civil
Lines, Beaumont Road, Karachi, Pakistan |
|
Tel # |
92 (21) 35688123, 35688219 |
|
Fax # |
92 (21) 35683215 |
|
Email |
Short
Description Of Business
|
a. |
Nature of
Business |
The principal business of the Company is manufacture and sale of yarn |
|
b. |
Year Established |
1967 |
|
c. |
Registration No. |
0002500 |
Mills
Location
Aminabad, A-16, S.I.T.E., National
Highway, Kotri, Hyderabad, Sindh,
Pakistan
Auditors
|
Deloitte Yousuf Adil (Chartered
Accountants) |
Legal
Status
|
Public Limited Company (Listed
at stock exchange of Pakistan) |
Details
of Management
|
Names |
Designation |
|
Mr. Shahzada Ellahi Shaikh Mr. Javaid Bashir Sheikh Mr. Shafqat Ellahi Shaikh Mr. Raza Ellahi Shaikh Mr. Haroon Shahzada Ellahi Shaikh Mr. Shaukat Ellahi Shaikh Mr. Tariq Zafar Bajwa Mr. Munawar Iqbal Mr. Tajammal Husain bokharee |
Chairman Managing Director Director Director Director Director Director Director Director |
Shareholders
|
Names |
Shareholding (%) |
|
Directors, Chief Executive Officer, and their spouse and minor
children Associated Companies, Undertakings and related parties NIT & ICP Banks, Development Finance Institutions, Non Banking Finance Institutions Insurance Companies Modarabas and Mutual Funds General Public Others |
63.29 16.37 0.01 0.03 1.70 Nil 18.29 0.30 |
Associates
A. Subsidiary
None
B. Associated Companies
|
(1) Monell (Pvt) Limited, Pakistan. (2) Haroon Omer (Pvt) Limited, Pakistan. (3) Icaro (Pvt) Limited, Pakistan. (4) Ellcot Spinning Mills Limited, Pakistan. (5) Prosperity Weaving Mills Limited, Pakistan. (6) Ellahi International (Pvt.) Limited, Pakistan. (7) ARH (Pvt.) Limited, Pakistan. |
Business
Activities
Subject Company is engaged in manufacture and sale of Yarn.
Its mainly import Textile Raw Materials, Textile Machineries through L/C, D/P basis.
It sells its product through L/C,
D/P basis to its foreign customers.
Its exporting countries are European Countries.
Its importing countries are China, Korea, Taiwan, Singapore, Japan &
European Countries.
Its major customers are Buying Agencies, Private Companies,
International Buyers etc.
Subject operates from caption leased office & factory premises
situated at commercial & industrial centers of Karachi, Sindh.
Subject employs about 1,092
persons in its set up.
Annual
Sales Volume
|
Year |
In Pak Rupees |
|
2017 |
5,242,033,350/- |
Plant
Capacity & Actual Production
2017 2016
Spinning
Plant capacity on the basis of
utilization converted to 20s’ count 19,351,613 18,982,657
Actual production converted into 20s’
Count 16,617,912 15,788,810
2017 2016
Total number of spindles installed 53,748 53,676
Total number of spindles worked 53,748 53,676
Number of shifts per day 3 3
Actual number of shifts in a year 1,091 1,094
Trade
Suppliers (Foreign)
|
Subject import globally from Companies belongs
to China,
Korea, Taiwan, Singapore, Japan & European Countries. Its global trade
suppliers are Companies related to Textile Raw Materials, Machineries |
Customers
|
Various local & international
|
Bankers
|
(1) Albaraka Bank (Pakistan) Limited, Pakistan. (2) Allied Bank Limited, Pakistan. (3) Askari Bank Limited, Pakistan. (4) Bank Alfalah Limited, Pakistan. (5) Faysal Bank Limited, Pakistan. (6) Habib Bank Limited, Pakistan. (7) Habib Metropolitan Bank Limited, Pakistan. (8) Meezan Bank Limited, Pakistan. (9) MCB Bank Limited, Pakistan. (10) National Bank of Pakistan. (11) Samba Bank Limited, Pakistan. (12) Standard Chartered Bank, Pakistan (13) The Bank of Punjab, Pakistan. (14) United Bank Limited, Pakistan. |
Future
Outlook
Efficient planning in the procurement of raw material, optimum use of
manpower, material and machinery, aggressive marketing and encashing
opportunities are the principles of management to secure continued future
growth.
Memberships
APTMA
KCCI
FPCCI
Comments
Nagina
Group
is engaged in diversified activities which include Textiles, Hosiery, Trading
etc. Group is well known and the directors are reported as resourceful and
experienced businessmen. 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 |
|
|
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
: |
VAR |
|
|
|
|
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.