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MIRA INFORM REPORT
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Report No. : |
487347 |
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Report Date : |
27.01.2018 |
IDENTIFICATION DETAILS
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Name : |
GLAMOUR TEXTILE MILLS LIMITED |
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Registered Office : |
11-KM, Manga Raiwind Road, District, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
1991 |
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Com. Reg. No.: |
0025106 |
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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 : |
526 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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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
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Business Name |
GLAMOUR TEXTILE
MILLS LIMITED |
Full
Address
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Registered
Address |
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11-KM, Manga Raiwind Road, District, Lahore, Pakistan |
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Tel # |
92 (42) 35392794, 35392795 |
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Fax # |
92 (42) 35391566 |
Short
Description Of Business
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Nature of Business |
The principal
business of the company is manufacture and sale of yarn. |
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Year Established |
1991 |
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Registration # |
0025106 |
Branches
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In Lahore at present |
Auditors
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Mushtaq & Co. (Chartered
Accountants) |
Legal
Status
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The Company was incorporated in Pakistan in
the year 1991 as a Public Limited Company and its shares are listed at
Pakistan Stock Exchange |
Details
of Management
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Names |
Designation |
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Mr. Asad Elahi Mr. Azher Elahi Mr. Ather J. Elahi Mr. Mansoor Elahi Mr. Fahad Elahi Mr. Saad Elahi Mr. Taimoor Elahi Mr. Shaheryar Elahi Mr. Misbahuddin Commodor (Retd) |
Chairman Chief Executive Director Director Director Director Director Director Director |
Shareholders
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Categories |
Shareholding (%) |
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Directors, CEO, and their spouse and minor
children Associated Companies, Undertakings and
related parties NIT & ICP Banks, Development Financial Institutions, Non
Banking Financial Institutions Insurance Companies Modarabas and Mutual Funds General Public Joint Stock Companies |
98.9621 0.0000 0.0000 0.0000 0.0000 0.0000 1.0360 0.0019 |
Associates
A. Subsidiary
None
B. Associated Companies
- Do -
Business
Activities
Subject Company is engaged in manufacture & sale of Yarn.
It’s import Textile Raw Materials, Textile Machineries through L/C, D/A basis.
It sells its products to its domestic customers including Buying Agencies, Trading Companies, Textile Companies etc.
Its importing countries are China, Korea, Taiwan & European Countries
Its major customers are reputable companies, Domestic & Worldwide.
Subject employs more than 526 persons in its set up.
Annual
Sales Volume
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Years |
In Pak Rupees |
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2014 2015 2016 2017 |
2,406,964,383/- 2,589,116,116/- 1,786,858,733/- 2,081,909,454/- |
Plant
Capacity & Production
2017 2016
Total no. of
spindles installed 27,744 27,744
Total no. of spindles
worked 27,325 27,298
Number of shifts
per day 3 3
Rated capacity converted to 20/1 count (Kgs) 10,179,706 10,179,706
Actual production converted at 20/1 count (Kgs) 9,870,737 9,934,069
It is difficult to precisely describe production capacity
and the resultant production in the textile industry since it fluctuates widely
depending on various factors such as count of yarn spun, raw material used,
spindle speed, twist etc.
Trade
Suppliers (Foreign)
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Subject import globally from Companies belongs to China, Korea, Taiwan
& European Countries |
Bankers
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(1) Soneri Bank Limited, Pakistan. (2) JS Bank Limited, Pakistan. (3) Bank Al-Habib Limited, Pakistan. (4) Habib Bank Limited, Pakistan. |
Memberships
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Lahore Chamber of Commerce & Industry.(LCCI)
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All Pakistan Textile Mills Association.(APTMA)
Comments
Subject Company was established in 1991 and is engaged in manufacture & sale of Yarn. Market reputation is satisfactory.
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 63.64 |
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1 |
INR 89.32 |
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Euro |
1 |
INR 78.45 |
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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 : |
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.