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MIRA INFORM REPORT
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Report No. : |
489910 |
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Report Date : |
10.02.2018 |
IDENTIFICATION DETAILS
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Name : |
YUNUS TEXTILE MILLS LIMITED |
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Registered Office : |
H-23/1, Landhi Industrial Area, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2016 |
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Date of Incorporation : |
1998 |
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Com. Reg. No.: |
0060489 |
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Legal Form : |
Non-Listed Public Limited Company |
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Line of Business : |
Subject is engaged in the manufacturing
and export of Knitted, Weaved and Stitched fabrics & other textile
articles. |
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No. of Employees : |
4,955 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow and delayed |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source
: CIA |
Company
Name
YUNUS TEXTILE MILLS LIMITED
Full
Address
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Registered Address |
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H-23/1, Landhi Industrial Area,
Karachi, Pakistan |
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Tel # |
92 (21) 35081305, 35081727 |
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Fax # |
92 (21) 35081226 |
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Email |
info@yunustextile.com |
Short
Description Of Business
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a. |
Nature of Business |
Company is engaged in the manufacturing
and export of Knitted, Weaved and Stitched fabrics and other textile articles |
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b. |
Year Established |
1998 |
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c. |
Registration # |
0060489 |
Other
Units Locations
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(1) Plot No. 376 & 91 , Kohi Goth, Landhi, Bin Qasim Town, Karachi,
Pakistan (2) Plot No. 305, Main National
Highway, Karachi, Pakistan (3) Plot No. HX-7, HX-7/1, HX-7/2, HX-7/3, Landhi Industrial
Area, Karachi, Pakistan (4) Plot No. LX-9/1, LX-9/2, LX-9/3 Landhi Industrial Area,
Karachi, Pakistan. (5) Plot No. C-101, C-130 SITE Area Nooriabad, Pakistan. (6) Choudry Street, Samandri Road, Faisalabad, Pakistan. |
Auditors
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Ernst Young Ford Rhodes Sidat Hyder (Chartered
Accountants) |
Legal
Status
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Subject Company was established as a Non-Listed Public Limited
Company in 1998 |
Capital
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Authorized Capital |
Rs. 2,000,000,000/-
divided into 200,000,000 shares of Rs. 10/- each |
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Issued & Paid up Capital |
Rs. 1,500,000,000/- divided into 150,000,000 shares of Rs. 10/-
each |
Details
of Directors
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Names |
Designation |
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Mr. Muhammad Ali Tabba Mr. Yunus Tabba Mr. Muhammad Sohail Tabba Mr. Imran Yunus Tabba Mr. Javed Yunus Tabba Mrs. Rahila Aleem Miss. Mariam A. Razzak Miss. Zulekha A. Razzak |
Chief Executive Director Director Director Director Director Director Director |
Shareholders
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Names |
No. of Shares |
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Mr. Yunus Tabba Mr. Muhammad Ali Tabba Mr. Muhammad Sohail Tabba Mr. Imran Yunus Tabba Mr. Javed Yunus Tabba Mrs. Rahila Aleem Miss. Mariam A. Razzak Miss. Zulekha A. Razzak Mrs. Amina Aziz Mrs. Kulsoom YB Holdings (Pvt) Limited,
Pakistan |
500 500 500 500 500 500 500 500 500 500 149,995,000 |
Associates
A. Subsidiary
None
B. Associated
Companies
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(1)
Lucky Cement Limited, Pakistan. (2)
Gadoon Textile Mills Limited, Pakistan. (3)
Fazal Textile Mills Limited, Pakistan. (4)
Lucky Energy (Private) Limited, Pakistan. (5)
Lucky Textile Mills Limited, Pakistan. (6)
Y.B Pakistan Limited, Pakistan. (7)
Yunus Energy Limited, Pakistan. (8)
Lucky Holding Limited, Pakistan. (9)
Lucky Air (private) Limited, Pakistan. (10)
Fashion Textile Mills (Private) Limited, Pakistan. (11) Security
Electric Power Company Limited, Pakistan. |
Business
Activities
Subject Company is engaged in the manufacturing and export of
Knitted, Weaved and Stitched fabrics & other textile articles.
Its import Textile Raw Materials, Textile Machineries through L/C, D/A, D/P basis.
It sells its product through cash / credit terms in local markets.
Whereas in case of export, payment would be accepted through L/C, D/A, D/P basis.
Its main customers are Buying Agencies, Private Companies,
International Buyers, Distribution Companies etc.
Subject operates from caption leased factories premises located at
industrial centers of Karachi & Faisalabad.
Subject employs about 4,955
persons in its set up.
Annual
Sales Volume
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Years |
In Pak
Rupees |
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2015 2016 |
27,320,680,000/- 22,366,038,000/- |
Annual
Production Volume
Annual production capacity of 100
Million meters
Trade
Suppliers (Foreign)
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Subject import globally from Companies belongs to China, Japan, Taiwan, Korea, Thailand, India, Indonesia
& European Countries |
Bankers
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(1) Habib Metropolitan Bank Limited,
Pakistan. (2) Faysal Bank Limited, Pakistan. (3) Soneri Bank Limited, Pakistan. (4) Askari Bank Limited, Pakistan. (5) MCB Bank Limited, Pakistan. (6) NIB Bank Limited, Pakistan. (7) Bank Alfalah Limited, Pakistan. (8) Allied Bank Limited, Pakistan. (9) Bank Al-Habib Limited, Pakistan. (10) Habib Bank Limited, Pakistan. (11) United Bank Limited, Pakistan. (12) Soneri Bank Limited, Pakistan. (Total Mortgage Obtained PKR: 1,122,925,000/-) |
Group
Profile
Established in 1962 as a fabric trading business
house, Yunus Brothers soon become one of the largest
conglomerates in Pakistan. Yunus Brothers Group, with investment in Textiles,
Cement, Construction, Real Estate, Energy, and Commodity trading business has
an annual turnover which exceeds US $ 750 million. Following the footsteps of
its parent company, Yunus Textile Mills Limited started its operations in 1998
and within a short span of time became Pakistan’s largest exporter of Home
Textile products. In this short time frame, the company has transformed itself
from a supplier of basic bedding products to a world renowned supplier of Home
Textile Products to top tier retailers and brands across United States and
Europe. The latest addition to the fleet of Yunus owned companies is Yunus
Textile Mills Spinning plant at Karachi, Pakistan, with a total initial
investment of US $ 15 million. This is yet another step towards acquiring
continuous vertical growth and provide excellent integrated solutions to its
customers.
Memberships
Pakistan
Cloth Merchant Association.
Pakistan
Hosiery Manufacturers & Exporters Association.
Pakistan
Bedwear Exporters Association.
All
Pakistan Textile Mills Association.
Comments
Subject Company was established in 1998 and is engaged in manufacture & export of Home Textile Products. Market reputation is sound. 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.37 |
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1 |
INR 89.71 |
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Euro |
1 |
INR 78.89 |
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PKR |
1 |
INR 0.58 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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
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Promoters
/ Management background
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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.