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MIRA
INFORM REPORT
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Report No. : |
492845 |
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Report Date : |
23.02.2018 |
IDENTIFICATION DETAILS
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Name : |
DIN TEXTILE MILLS LIMITED |
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Registered Office : |
Din House, 35-A/1, Lalazar Area, Opp. Beach
Luxury Hotel, Karachi |
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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.: |
0018066 |
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Legal Form : |
Limited By
Shares |
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Line of Business : |
The principal business of the company is to manufacture and sale of
yarn |
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No. of Employees : |
2,724 |
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 & 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 |
Business Name
DIN TEXTILE MILLS LIMITED
Full Address
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Registered Address |
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Din House, 35-A/1, Lalazar Area, Opp. Beach
Luxury Hotel, Karachi, Pakistan |
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Tel # |
92 (21) 35610001, 3 |
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Fax # |
92 (21) 35610009, 35610455 |
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Website |
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Email |
Short Description Of Business
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a. |
Nature of Business |
The principal business of the company is to manufacture and sale of
yarn |
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b. |
Year Established |
1988 |
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c. |
Registration # |
0018066 |
Mills Locations
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(1) Unit-I and
II: Kot Akbar Khan, 70 Km Multan Road, Tehsil Pattoki, District Kasur,
Punjab, Pakistan. (2) Unit-III:
Revenue Estate, Bhai Kot, Tablighi Chowk, Raiwind Road, Tehsil and District,
Lahore, Punjab, Pakistan. (4) Unit-IV:
Dars Road, Off Raiwind Manga Road, Bachuki Majha Distt. Kasur, Punjab,
Pakistan. |
Branches
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Address |
Din House, 16-M Model Town Extension, Lahore, Pakistan |
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Tel # |
92 (42) 35168201, 3 |
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Fax # |
92 (42) 35168206 |
Auditors
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Naveed Zafar Ashfaq Jaffery & Co. (Chartered Accountants) |
Legal Status
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The company is
limited by shares, incorporated in Pakistan on June 13, 1988 and is listed at
stock exchange of Pakistan |
Details of Chairman / Directors
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Names |
Designation |
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Mr. Shaikh
Mohammad Muneer Mr. Shaikh
Mohammad Pervez Mr. Shaikh
Muhammad Tanveer Mr. Shaikh
Muhammad Naveed Mr. Fawad Jawed Mr. Farhad
Shaikh Mohammad Mr. Abdul
Razzak |
Chairman / Chief Executive Director Director Director Director Director Director |
Categories of Shareholders
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Categories |
Percentage (%) |
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Individuals / General Public Others Directors, Chief Executive & their spouses & minor children Executives Public Sector Companies & Corporations Associated Companies Banks, DFI’s Non-Banking Finance Companies Mutual Funds Foreign Investors |
31.68 11.34 42.21 12.66 1.66 0.03 0.17 0.24 --- |
Associated Companies
(1) Din Leather Private Limited, Pakistan.
Din Parekh Chemicals (Pvt.) Limited, Pakistan.
Din Power Limited, Pakistan
Din Farm Products (Pvt.) Limited, Pakistan.
Business Activities
The principal business of the company is to manufacture and sale of yarn
Number of Employees
2,724
Annual Sales Volume
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Years |
In Pak Rupees |
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2015 2016 2017 |
8,552,540,730/- 7,602,603,733/- 7,421,791,694/- |
Plant Capacity & Production
It is difficult
to describe precisely the production capacity in textile industry since it
fluctuates widely depending on various factors such as count of yarn spun, raw
material used, spindle speed and twist. It would also vary according to the
pattern of production adopted in a particular year.
2017 2016
Total
number of spindles installed 93,936 81,936
Total number of spindles worked 87,025 79,991
Number of shifts per day 3 3
Installed capacity of yarn converted into 20/s count-Kgs 31,702,000 27,709,884
Actual production of yarn converted into 20/s count-Kgs 26,849,418 24,619,866
Note
:
Actual production is lower than capacity due to the manufacturing of
specialized Mélange yarn and periodic repair and maintenance.
Exporting Countries
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Mainly to European Countries, Korea, Hong Kong,
China, Taiwan & Turkey |
Customers
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Various domestic & International |
Bankers
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Allied Bank Ltd, Pakistan.
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Barclays Bank PLC, Pakistan.
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Dubai Islamic Bank Pakistan Ltd, Pakistan.
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Faysal Bank Ltd, Pakistan.
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Habib Bank Ltd, Pakistan.
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Habib Metropolitan Bank Ltd, Pakistan.
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MCB Bank Ltd, Pakistan.
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Meezan Bank Ltd, Pakistan.
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National Bank of Pakistan, Pakistan.
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Standard Chartered Bank, Pakistan.
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The Bank of Punjab, Pakistan.
Financial Position
Sound
Future Outlook
The raw material
prices are under pressure due to surplus global production. The increase in
production of raw cotton in countries like India and china is more than
Pakistan; therefore, these countries will have a competitive advantage over
Pakistan. In addition, these countries are also giving tremendous incentives to
their local industry for capacity expansion which is a challenge for Pakistani
Industry, especially in a scenario where cost of power and other inputs have
increased substantially in Pakistan. In spite of these challenges, the
management is making its best efforts to make the operation as efficient as
possible.
Company Profile
From the day of
inception, Din Textile has been constantly striving to achieve excellence and
generate highest value for all of its stakeholders. Today Din Textile holds an
unchallenged position at forefront of industry, within the country and overseas
for its groundbreaking developments and innovative products line, Din Textile
has gained immense trust for delivering superior quality products for exceeding
the customer expectations.
Memberships
KCCI
FPCCI
APTMA
Comments
Din Group of
Companies
is engaged in diversified activities which includes Textiles, Fuel &
Energy, Chemicals, Leather, Garments etc. Group is well known and directors are
resourceful and experienced businessmen. Subject is a well-established company
enjoying satisfactory share of its market products. 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 65.05 |
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1 |
INR 90.41 |
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Euro |
1 |
INR 79.83 |
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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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VIV |
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Report Prepared
by : |
TPT |
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
·
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.