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MIRA
INFORM REPORT
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Report No. : |
487390 |
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Report Date : |
29.01.2018 |
IDENTIFICATION DETAILS
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Name : |
RAVI SPINNINGS LIMITED |
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Registered Office : |
123, H Block, Model Town, Lahore |
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Country : |
Pakistan |
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Date of Incorporation : |
1991 |
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Com. Reg. No.: |
0023236 |
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Legal Form : |
Non-Listed
Public Limited Company |
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Line of Business : |
Subject is Engaged in manufacture & sale of yarn |
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No. of Employees : |
320 |
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 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 |
RAVI SPINNINGS LIMITED |
Full Address
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Registered Address |
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123, H Block, Model Town, Lahore, Pakistan |
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Tel # |
92 (42) 35390465, 35391163, 35390465, 35391163, 38600417 |
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Fax # |
92 (42) 35391163 |
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Short Description Of Business
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a. |
Nature of Business |
Engaged in manufacture & sale of yarn |
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b. |
Incorporated |
1991 |
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c. |
Registration No. |
0023236 |
Mills Location
4.2 KM, Manga Road, Raiwind,
Lahore, Pakistan
Auditors
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Shafiq & Co. (Chartered Accountants) |
Legal Status
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The Company
was incorporated in Pakistan in the year 1991 as a Non-Listed Public Limited
Company |
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6. |
Authorized Capital |
Rs. 90,000,000/- divided into 9,000,000 shares of Rs. 10/- each |
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Issued & Paid up Capital |
Rs. 67,101,000/- divided into 6,710,100 shares of Rs. 10/- each |
Details of Management
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Names |
Designation |
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Mr. Syed Nisar Hussain Gilani Mr. Syed Ibrar Hussain Gillani Mr. Omar Riaz Gillani |
Chief Executive Director Director |
Shareholders
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Names |
No. of Shares |
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Mr. Syed Ibrar Hussain Gillani Mr. Syed Nisar Hussain Gillani Mr. Omar Riaz Gillani |
1,000 6,533,950 175,150 |
Associates
Subsidiary
None
Associated Companies
- Do -
Business Activities
Subject Company is engaged in manufacture & sale of yarn by its brand name of FUJI.
Its import Textile Raw Materials, Textile Machineries through D/A, D/P basis to its trade suppliers globally.
It sale its products to its domestic customers including Buying Agencies, Trading Companies, Private Companies etc.
Its importing countries are China, Korea, Taiwan & European Countries
Subject employs about 320 persons in its set up.
Annual Sales Volume
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Year |
In Pak Rupees |
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2016 |
700,000,000/- (Estimated) |
Mills Installed
17,280 spindles
Bankers
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(1) National Bank of Pakistan. (2) JS Bank Limited, Pakistan. (3) United Bank Limited, Pakistan. (4) Bank Alfalah Limited, Pakistan. (5) Soneri Bank Limited, Pakistan. (Total Mortgage Obtained PKR: 790,000,000/-) |
Memberships
Lahore Chamber of Commerce & Industry.(MCCI)
All Pakistan Textile Mills Association.(APTMA)
Comments
Subject Company was
established in 1991 and is engaged in manufacture & sale of Yarn. 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 63.50 |
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1 |
INR 90.92 |
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Euro |
1 |
INR 79.07 |
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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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PRA |
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Report Prepared
by : |
KET |
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.