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MIRA INFORM REPORT
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Report No. : |
485043 |
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Report Date : |
13.01.2018 |
IDENTIFICATION DETAILS
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Name : |
SAPPHIRE
FINISHING MILLS LIMITED |
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Registered Office : |
212, Cotton Exchange
Building, I.I. Chundrigar Road, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2016 |
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Date of Incorporation : |
2000 |
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Com. Reg. No.: |
0041526 |
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Legal Form : |
Non Listed Public Limited Company |
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Line of Business : |
Subject is principally engaged in Processing, Dyeing, Bleaching and
Finished Textile Products & Stitched Garments |
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No. of Employees : |
3,060 |
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 : |
Good |
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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 (30.06.2017) |
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 slow growth and underdevelopment in Pakistan. Pakistan has a large
English-speaking population. Nevertheless, 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 most 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 6.1% in 2016, 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 2016.
Low global oil prices in 2016 contributed to a narrowing current account
deficit and lower inflation. Remittances from overseas workers continued to be
a key revenue source, also mitigating the impact of the lack of foreign investment
and a growing trade deficit on the country’s current account.
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,” a $46 billion investment program
targeted towards the energy sector and other infrastructure projects that
Islamabad and Beijing had agreed on in early 2013.
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Source
: CIA |
Business
Name
SAPPHIRE FINISHING
MILLS LIMITED
Full
Address
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Registered
Address |
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212, Cotton
Exchange Building, I.I. Chundrigar Road, Karachi, Pakistan |
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Tel # |
92 (21) 32410930, 32410961 |
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Fax # |
92 (21) 32416705 |
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Website |
Short
Description Of Business
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a. |
Nature of Business |
Principally engaged in Processing, Dyeing, Bleaching and Finished
Textile Products & Stitched Garments |
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b. |
Year Established |
2000 |
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c. |
Registration # |
0041526 |
Branches
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Address |
7 A-K, Main Boulevard, Gulberg II, Lahore,
Pakistan |
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Tel # |
92 (42) 35750410 |
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Fax # |
92 (42) 35758783 |
Mills
Location
Near Kasur, Raiwind,
Lahore, Pakistan
Legal
Status
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The Company was incorporated in Pakistan as an Non Listed Public
Limited Company. The Company is principally engaged in Processing, Dyeing,
Bleaching and Finished Textile Products & Stitched Garments |
Auditors
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Shinewing Hameed Chaudhri & Co. (Chartered Accountants) |
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Authorized Capital |
Rs. 1,000,000,000/- divided into 100,000,000
shares of Rs. 10/- each |
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Issued & Paid up Capital |
Rs. 920,000,000/- divided into 92,000,000 shares
of Rs. 10/- each |
Details
of Chief Executive / Directors
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Names |
Designation |
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Mr. Yousuf Abdullah Mr. Mohammad Abdullah Mr. Shahid Abdullah Mr. Nadeem Abdullah Mr. Amer Abdullah |
Chief Executive Director Director Director Director |
Shareholders
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Names |
No. of Shares |
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Mr. Mohammad Abdullah Mr. Shahid Abdullah Mr. Nadeem Abdullah Mr. Amer Abdullah Mr. Yousuf Abdullah Mr. Mohammad Yamin Mr. Naveed-Ul-Islam Reliance Cotton Spinning Mills Limited,
Pakistan Sapphire Holding Limited, Pakistan SFL Limited, Pakistan. Amer Tex (Pvt) Limited, Pakistan Mr. Hasan Abdullah Mrs. Shireen Shahid Mrs. Noshaba Nadeem Mrs. Uzma Yousuf Mrs. Ambareen Amer |
9,500 10,000 10,500 10,500 1,891,133 500 500 1,556,000 29,468,500 25,809,000 27,524,000 500 1,897,503 1,897,499 16,866 1,897,499 |
Associates
A. Subsidiary
None
B. Associated Companies
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(1) Reliance Cotton Spinning Mills Limited,
Pakistan. (2) Sapphire Electric Company Limited,
Pakistan. (3) Sapphire Fibers Limited, Pakistan. (4) Sapphire Finishing Mills Limited,
Pakistan. (5) Sapphire Dairies (Pvt) Limited,
Pakistan. (6) Sapphire Holding Limited, Pakistan,
Pakistan. (7) SFL Limited, Pakistan. (8) Amer Cotton Mills (private) Limited,
Pakistan. (9) Amer Tex (private) Limited, Pakistan. (10) Creadore A/s, Pakistan. (11) Corus Power (private) Limited,
Pakistan. (12) Crystal Enterprises (private) Limited,
Pakistan. (13) Diamond Limited, Pakistan. (14) Diamond Fabrics Limited, Pakistan. (15) Galaxy Agencies (private) Limited,
Pakistan. (16) Hermes Power (private) Limited,
Pakistan. (17) Nadeem Enterprises (private) Limited,
Pakistan. (18) Neelum Textile Mills Limited,
Pakistan. (19) Sapphire Wind Power Company Limited,
Pakistan. (20) Sapphire Agencies (private) Limited,
Pakistan. (21) Sapphire Enterprises (private)
Limited, Pakistan. (22) Reliance Textiles (private) Limited,
Pakistan. (23) Sapphire Power Generation Limited,
Pakistan. (24) Sapphire Finishing Mills USA Inc,
U.S.A. (25) Salman Ismail (SMC-private) Limited,
Pakistan. (26) STM Corporation (private) Limited,
Pakistan. (27) SFL Corporation (private) Limited,
Pakistan. (28) Sapphire Home Inc. USA (29) Yousaf Agencies (Private) Limited,
Pakistan. |
Business
Activities
Principally engaged in Processing, Dyeing,
Bleaching and Finished Textile Products & Stitched Garments
Number
of Employees
3,060
Capacity
& Production
2016 2015
Fabric
Dyeing Unit
Total number of days worked 365 356
No. of shifts worked per day 3 3
Installed capacity Mtr. 72,000,000 69,000,000
Actual production Mtr. 55,299,306 46,987,561
Stitching
Unit (Garment Division)
Total number of days worked 299 296
Actual
production Pcs. 732,533 1,087,031
Stitching Unit (Apparel Division)
Total number of days worked 182 ---
Actual
production Pcs. 123,318 ---
Trade
Suppliers (Foreign)
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Subject import globally from Companies
belongs to China, Korea, Germany, Taiwan, Hong Kong, Malaysia, India &
Japan. Its global trade suppliers are Companies related to Textile Raw
Materials, Machineries |
Customers
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Various Local & International |
Exporting
Countries
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Mainly to European Countries & U.S.A. |
Bankers
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(1) Askari Bank Limited, Pakistan. (2) Faysal Bank Limited, Pakistan (3) Habib Bank Limited, Pakistan. (4) MCB Bank Limited, Pakistan. (5) Allied Bank Limited, Pakistan. (6) Habib Metropolitan Bank Limited, Pakistan. (7) United Bank Limited, Pakistan. (8) Silk Bank Limited, Pakistan. (9) Soneri Bank Limited, Pakistan. |
Financial
Position
Sound
Future
Outlook
The management has achieved better results during
the year as compared to last year and is making all efforts for better
marketing and sales to renowned brand names for better prices. Management is
making all efforts to improve the profitability
Memberships
All Pakistan Textile Mills Association.
Karachi Chamber of Commerce & Industry.
Lahore Chamber of Commerce & Industry.
Comments
Sapphire Group is engaged in diversified activities which include Textiles, Hosiery, Power Generation, Trading etc. Group is well known and all the directors are resourceful and experienced businessmen. Trade relations are reported as fair. Payments to creditors etc are reported as 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 63.52 |
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1 |
INR 86.05 |
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Euro |
1 |
INR 76.53 |
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PKR |
1 |
INR 0.57 |
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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NIY |
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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
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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
·
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.