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MIRA INFORM REPORT
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Report No. : |
486338 |
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Report Date : |
17.01.2018 |
IDENTIFICATION DETAILS
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Name : |
SAPPHIRE FIBRES LIMITED |
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Registered Office : |
316,
Cotton Exchange Building, I.I. Chundrigar Road, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
1979 |
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Com. Reg. No.: |
0041252 |
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Legal Form : |
Public limited company |
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Line of Business : |
Subject is engaged in manufacture and
sale of Yarn, Fabrics and Garments |
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No. of Employees : |
3,900 |
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 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 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 |
Company
Name
SAPPHIRE FIBRES LIMITED
Full
Address
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Registered
Address |
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316, Cotton
Exchange Building, I.I. Chundrigar Road, Karachi, Pakistan |
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Tel # |
92 (21) 111-000-100, 32415469,
32410961 |
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Fax # |
92 (21) 32416705, 32417418 |
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Website |
Short
Description Of Business
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a. |
Nature
of Business |
Engaged in manufacture and sale of
Yarn, Fabrics and Garments |
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b. |
Year
Established |
1979 |
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c. |
Registration
# |
0041252 |
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
(1)
Kharianwala Tehsil & District Sheikhupura, Pakistan.
(2) Feroze
Watwan, Tehsil & District Sheikhupura, Pakistan.
(3) Raiwind
Road, Lahore, Pakistan.
Legal
Status
The Company was incorporated in Pakistan as a public limited
company and is listed at Stock Exchange of Pakistan
Auditors
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Shinewing Hameed Chaudhri & Company (Chartered
Accountants) |
Details
of Chief Executive / Directors
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Names |
Designation |
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Mr. Amer Abdullah Mr. Shahid Abdullah Mr. Nadeem Abdullah Mr. Yousuf Abdullah Mr. Shayan Abdullah Mr. Tajammal Hussain Bokharee Mr. Abdul Sattar Mr. Nadeem Arshad Elahi |
Chairman Chief Executive Director Director Director Director Director Director |
Shareholders
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Categories
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Percentage (%) |
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Director, CEO, Spouses and minor children Associated Companies, Undertaking, related parties NIT & ICP Banks, DFI & NBFI Insurance Companies Modaraba & Mutual fund General Public (Local) General Public (Foreign) Others Foreign Companies |
33.3185 51.7938 2.9831 0.0070 1.7093 0.3752 8.1328 0.3103 1.1263 0.2438 |
Associates
A. Subsidiary
None
B. Associated
Companies
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(1) Reliance Cotton Spinning Mills
Limited, Pakistan. (2) Sapphire Textile Mills Limited,
Pakistan. (3) Sapphire Finishing Mills Limited,
Pakistan. (4) Sapphire Dairies (Pvt) Limited,
Pakistan. (5) Sapphire Holding Limited,
Pakistan. (6) SFL Limited, Pakistan. (7) Amer Cotton Mills (private)
Limited, Pakistan. (8) Amer Tex (private) Limited,
Pakistan. (9) Creadore A/s, Pakistan. (10) Corus Power (private) Limited,
Pakistan. (11) Crystal Enterprises (private)
Limited, Pakistan. (12) Diamond Limited, Pakistan. (13) Diamond Fabrics Limited,
Pakistan. (14) Galaxy Agencies (private)
Limited, Pakistan. (15) Hermes Power (private) Limited,
Pakistan. (16) Nadeem Enterprises (private)
Limited, Pakistan. (17) Neelum Textile Mills Limited,
Pakistan. (18) Sapphire Wind Power Company
Limited, Pakistan. (19) Sapphire Agencies (private) Limited,
Pakistan. (20) Sapphire Enterprises (private)
Limited, Pakistan. (21) Reliance Textiles (private)
Limited, Pakistan. (22) Sapphire Power Generation
Limited, Pakistan. (23) Sapphire Finishing Mills USA
Inc, U.S.A. (24) Salman Ismail (SMC-private) Limited,
Pakistan. (25) STM Corporation (private)
Limited, Pakistan. (26) SFL Corporation (private)
Limited, Pakistan. (27) Sapphire Home Inc. USA (28) Yousaf Agencies (Private)
Limited, Pakistan. |
Business
Activities
Engaged in manufacture and sale of Yarn,
Fabrics and Garments
Number
of Employees
3,900
Capacity
& Production
2017
2016
Spinning
Units
Number of spindles installed
101,136 101,136
Number
of spindles worked 100,656 100,656
No.
of shifts worked per day 3 3
Total
number of days worked 365 365
Installed
capacity after conversion into
20’s
count Lbs
64,114,321 64,187,838
Installed
production after conversion
into
20’s count Lbs
56,571,223 56,661,655
Dyeing
Yarn / Fibre Dyeing Unit
Total
number of days worked 351 349
Installed
capacity Lbs 8,002,407 8,002,407
Actual
Production Lbs
3,800,187 3,552,931
Fabric Dyeing Unit
Total number of
days worked 364 357
Installed
capacity Lbs
13,171,579 13,171,579
Actual production
Lbs 10,627,188 8,400,360
Knitting
Unit
Total number of
days worked 364 358
Installed capacity Lbs
14,612,963 15,658,951
Actual production Lbs 9,479,286 8,013,838
Stitching Unit
Installed
capacity Pcs 1,967,000 1,967,000
Actual production Pcs --- ---
Sluggish sale in the international markets,
power shortage in the country and higher fuel cost forced management to temporarily close its
stitching unit.
Trade
Suppliers (Foreign)
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Subject import globally from
Companies belongs to China, Korea, Singapore, Taiwan, Japan & European
Countries |
Customers
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Various Local & International |
Bankers
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(1) Allied Bank
Limited, Pakistan. (2) Habib Bank
Limited, Pakistan. (3) Citibank
N.A., Pakistan. (4) Habib
Metropolitan Bank Limited, Pakistan. (5) United Bank
Limited, Pakistan. (6) MCB Bank
Limited, Pakistan. (7) National
Bank of Pakistan. |
Exporting
Countries
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Mainly to European Countries & U.S.A. |
Financial
Position
Sound
Future
Outlook
The
Textile Industry is expected to remain under pressure due to subdued demand in both
international and local markets as well as volatility in cotton prices.
Furthermore, manufacturing costs in the country are much higher compared to
other textile exporting countries of the region. We expect that the Government
will take all necessary steps to provide relief to the textile industry. In
spite of these challenging conditions, your management is making every effort
to improve operational efficiency and optimize cost structure to enhance
shareholder value. The Management believes that it is imperative to move
towards value added textile products for long term profitable growth. The new
Denim Plant of your company which has already started commercial operations is
an important initiative in this direction.
Memberships
LCCI
KCCI
FPCCI
APTMA
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 normal. 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 63.76 |
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1 |
INR 89.91 |
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Euro |
1 |
INR 78.20 |
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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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PRA |
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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
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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.