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MIRA INFORM REPORT
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Report No. : |
492846 |
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Report Date : |
22.02.2018 |
IDENTIFICATION DETAILS
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Name : |
ELLCOT SPINNING MILLS LIMITED |
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Registered Office : |
Nagina House,
91-B-1, M.M. Alam Road, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
1988 |
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Com. Reg. No.: |
0018985 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Subject Company is engaged in manufacture
& sale of Yarn |
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No. of Employees : |
885 |
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 (30.09.2017) |
Current Rating (31.12.2017) |
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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
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Business Name |
ELLCOT SPINNING
MILLS LIMITED |
Full
Address
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Registered
Address |
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Nagina House,
91-B-1, M.M. Alam Road, Lahore, Pakistan |
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Tel # |
92 (42) 35756270 - 77 (8 Lines) |
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Fax # |
92 (42) 35711856, 35753820 |
Short
Description Of Business
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Nature of Business |
Engaged in
manufacture & sale of Yarn |
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Year Established |
1988 |
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Registration # |
0018985 |
Mills
Location
6.3 K.M., Manga Mandi, Raiwind Road,
Mouza Rossa, Tehsil & District
Kasur, Punjab, Pakistan
Auditors
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Messrs Rahman
Sarfaraz Rahim Iqbal Rafiq (Chartered Accountants) |
Legal
Status
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The Company was incorporated in Pakistan as
a public limited company and is listed at stock exchange of Pakistan |
Details
of Management
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Names |
Designation |
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Mr. Shahzada
Ellahi Shaikh Mr. Shafqat
Ellahi Shaikh Mr. Syed Moaz
Mohiuddin Mr. Jamal Nasim Mr. Shaukat
Ellahi Shaikh Mr. Amin Ellahi
Shaikh Mr. Raza Ellahi
Shaikh |
Chairman Chief Executive Director Director Director Director Director |
Shareholders
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Categories |
Percentage (%) |
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Directors, CEO, and their spouses and minor
children Associated Companies, Undertakings and
related parties NIT & ICP Banks, Development Finance Institutions,
Non Banking Finance Institutions Insurance Companies Modarabas & Mutual Funds General Public Others |
43.23 24.32 0.00 0.05 1.75 17.24 12.77 0.36 |
Associates
A. Subsidiary
None
B. Associated Companies
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(1) Monell (Pvt) Limited, Pakistan. (2) Haroon Omer (Pvt) Limited, Pakistan. (3) Icaro (Pvt) Limited, Pakistan. (4) Nagina Cotton 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 & sale of Yarn.
Its mainly import Textile Raw Materials, Textile Machineries through L/C, D/P basis.
Its importing countries are European Countries, Korea, Taiwan, China & Japan.
It sells its product through cash / credit term basis to its domestic customers.
Its main customers are Brokers, Distribution Companies, Manufacturing Companies etc.
Subject operates from caption leased office & factory premises Sq.ft situated at commercial & industrial centers of Lahore & Punjab.
Subject employs about 885 persons in its set up.
Annual
Sales Volume
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Years |
In Pak Rupees |
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2014 2015 2016 2017 |
5,709,483,886/- 4,588,787,945/- 4,227,909,980/- 4,868,596,391/- |
Plant
Capacity & Actual Production
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Description |
2017 |
2016 |
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Number of spindles
installed Plant capacity on the
basis of utilization converted into 30s count - Kgs Actual production
converted into 30s count – Kgs |
61,728 13,030,213 12,332,907 |
61,728 11,635,279 11,267,568 |
It is difficult to precisely compare production capacity and
the resultant production converted into base count in the textile industry since
it fluctuates widely depending on various factors such as count of yarn spun,
raw materials used, spindle speed and twist etc. It would also vary according
to pattern of production adopted in a particular year.
Customers
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Major customers are Distribution Companies, Buying Agencies, Garments & Apparel Factories, Local Traders etc |
Bankers
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(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) Meezan Bank Limited, Pakistan. (8) MCB Bank Limited, Pakistan. (9) National Bank of Pakistan. (10) Standard Chartered Bank, Pakistan. (11) The Bank of Punjab, Pakistan. (12) United Bank Limited, Pakistan. |
Future
Outlook
The future outlook for the Company looks good, as now we have a larger production capacity as a result of the expansion which is now completed and on line.
Memberships
·
All Pakistan Textile Mills Association.(APTMA)
·
Lahore Chamber of Commerce & Industry.(LCCI)
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Federation Pakistan Chamber of Commerce &
Industry.(FPCCI)
Comments
Subject Company enjoys good reputation in Pakistan. Directors of the Company are reported as qualified, experienced and resourceful businessmen. Payments are slow and delayed.
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 63.81 |
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1 |
INR 90.66 |
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Euro |
1 |
INR 79.94 |
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PKR |
1 |
INR 0.59 |
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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NIS |
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Report Prepared
by : |
SYL |
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
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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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.