3decades

MIRA INFORM REPORT

Report No. :	487504
Report Date :	29.01.2018

IDENTIFICATION DETAILS

Name :	AL-KARAM TEXTILE MILLS (PVT) LIMITED

Registered Office :	3^rd Floor, Karachi Dock Labour Board Building, 58 West Wharf Road, Karachi

Country :	Pakistan

Financials (as on) :	30.06.2017

Date of Incorporation :	1986

Com. Reg. No.:	0013997

Legal Form :	Private Limited Company

Line of Business :	Subject is engaged in manufacture & export of Yarn, Grey Fabric, Dyed Fabric, Yarn Dyed Fabric, Knit, Fashion Garments, Home Textile Products.

No. of Employees :	8,367

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory

Payment Behaviour :	Slow and delayed

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Pakistan

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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.

Source : CIA

Company Name

AL-KARAM TEXTILE MILLS (PVT) LIMITED

Full Address

Registered Address

3^rd Floor, Karachi Dock Labour Board Building, 58 West Wharf Road, Karachi, Pakistan

Tel #	92 (21) 32313036, 32313031
Fax #	92 (21) 32310625
Email	headoffice@alkaram.com

Short Description Of Business

a.	Nature of Business	Manufacture & Export of Yarn, Grey Fabric, Dyed Fabric, Yarn Dyed Fabric, Knit, Fashion Garments, Home Textile Products
b.	Year Established	1986
c.	Registration #	0013997

Factory Location

HT-11, Landhi Industrial Area,
75150 Karachi, Pakistan

Auditors

Kreston Hyder Bhimji & Co.

(Chartered Accountants)

2^nd Floor, Standard Insurance House, I.I. Chundrigar Road, Karachi, Pakistan

Legal Status

Subject Company was established as a Private Limited Company in 1986

Capital

Authorized Capital	Rs. 600,000,000/- divided into 60,000,000 shares of Rs. 10/- each
Issued & Paid up Capital	Rs. 540,000,000/- divided into 54,000,000 shares of Rs. 10/- each

Details of Directors

Names

Designation

Mr. Anwar Haji Karim

Mr. Fawad

Mr. Afzal Umer

Mr. Noman Yakoob

Mr. Umer Haji Karim

Mr. Yakoob Haji Karim

Mr. Muhammad Sajid

Chief Executive

Director

Shareholders

Names

No. of Shares

Mrs. Shahnaz Haji Haroon

Mrs. Fozia Anwar

Mrs. Feroza Anwar

Mr. Safi Sajid

Mrs. Saira Haji Haroon

Mr. Abid Umer

Mrs. Akila Umer

Mr. Sajid Haji Haroon

Mrs. Khairoon Bai H. Haroon

Mr. Salik Sajid

Mr. Umer Haji Karim

Mrs. Azila Umer

Mr. Fawad Anwer

Mrs. Zeenat Anwar

Mrs. Ameena Haji Umer

Mr. Afzal Umer

Mrs. Fatima Sajid

Mrs. Anisa Umer

Mr. Ajmal Afzal

Mr. Anwar Haji Karim

Mr. Yakoob Haji Karim

Mrs. Shahida Yakoob

Mr. Anis Yakoob

Mr. Noman Yakoob

Mrs. Farah Yakoob

Mrs. Sara Yakoob

Mrs. Sana Yakoob

Amna Industries (Pvt) Limited, Pakistan

2,362,494

1,885,200

1,285,200

777,600

2,362,494

2,706,120

1,352,520

2,780,991

1,350,000

777,600

216,000

1,352,520

2,999,760

982,065

1,112,760

981,000

388,800

1,353,954

1,725,120

3,649,260

633,960

2,726,532

2,727,090

1,359,840

1,358,760

10,798,560

Associates

A. Subsidiary

None

Associated Companies

(1) Sattar (Pvt) Limited, Pakistan.

(2) Dhabeji Salt Works Pvt Ltd, Pakistan.

(3) Farooqi Food Industries, Pakistan.

(4) Gul Agencies Pvt Ltd, Pakistan.

(5) Haji Karim Haji Mohammad, Pakistan.

(6) Iqbal Textile Mills Ltd, Pakistan.

(7) Muslim Cotton Mills Ltd, Pakistan.

(8) Pakistan Dairy Products Ltd, Pakistan.

(9) Zaman Textile Mills Limited, Pakistan.

Business Activities

Subject Company is engaged in manufacture & export of Yarn, Grey Fabric, Dyed Fabric, Yarn Dyed Fabric, Knit, Fashion Garments, Home Textile Products.

Its import Textile Raw Materials, Textile Machineries through L/C, T.T. basis.

Payments would be accepted / made through L/C, D/P basis to its trade suppliers / customers globally

Its brand names are SHABNAM, CHANCELLOR, IGLOO, SUPER COT AL-KARAM.

It sells its product through Cash, L/C, T.T. basis (In case of Export).

Its major customers are Buying Agencies, Distribution Companies, International Buyers etc.

Subject operates from caption leased office premises situated at commercial & industrial centers of Karachi.

Subject employs more than 8,367 persons in its set up.

Annual Sales Volume

Years

In Pak Rupees

2014

2015

2016

2017

17,253,157,028/-

18,558,046,749/-

17,276,012,571/-

17,996,512,863/-

Trade Suppliers (Foreign)

Subject import globally from Companies belongs to China, Korea, Japan, Singapore, Taiwan & European Countries

Production Capactiy

Daily 63 Tons of Cotton & Blended Yarn, 17534 Fabric, 50000 Mt Dyeing, 60000 Mt Printing, 116666 Mt Fi

Bankers

(1) Habib Bank Limited, Pakistan.

(2) Habib Metropolitan Bank Limited, Pakistan.

(3) Standard Chartered Bank, Pakistan.

(4) Faysal Bank Limited, Pakistan.

(5) Askari Commercial Bank Limited, Pakistan.

(Total Mortgage obtained PKR: 6,500,000,000/-)

Memberships

Karachi Chamber of Commerce & Industry.(KCCI)

All Pakistan Textile Mills Association.(APTMA)

Federation Pakistan Chamber Of Commerce & Industry.(FPCCI)

Comments

Subject Company was established in 1986 and is engaged in manufacture & export of Yarn, Grey Fabric, Dyed Fabric, Yarn Dyed Fabric, Knit, Fashion Garments, Home Textile Products. Market reputation is good. 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

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.50
UK Pound	1	INR 90.92
Euro	1	INR 79.07
PKR	1	INR 0.57

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VIV

Report Prepared by :	TRU

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.