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MIRA INFORM REPORT
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Report No. : |
496127 |
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Report Date : |
14.03.2018 |
IDENTIFICATION DETAILS
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Name : |
SARITOW SPINNING MILLS LIMITED |
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Registered Office : |
17 - Aziz Avenue, Canal Bank, Gulberg V, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
1987 |
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Com. Reg. No.: |
0015779 |
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Legal Form : |
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 : |
About 1,161 |
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 & 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 (30.09.2017) |
Current Rating (31.12.2017) |
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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 |
Business
Name
SARITOW
SPINNING MILLS LIMITED
Full
Address
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Registered
Address |
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17 - Aziz Avenue, Canal Bank, Gulberg V, Lahore, Pakistan |
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Tel |
92 (42) 35717364, 35717365, 35718274, 35718275 |
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Fax |
92 (42) 35715105 |
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Email |
Short
Description Of Business
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a. |
Nature of Business |
Engaged in manufacture & sale of Yarn |
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b. |
Year Established |
1987 |
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c. |
Registration # |
0015779 |
Factory
Location
51-KM, Multan Road, Phool
Nagar, District Kasur, Punjab,
Pakistan
Auditors
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Rahman Sarfraz Rahim Iqbal Rafiq (Chartered Accountants) |
Legal
Status
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Subject Company was established as a Public Limited Company in 1987 |
Details
of Management
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Names |
Designation |
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Mr. M. Azam Saigol Mr. M. Naseem Saigol Mr. M. Zeid Yousuf Saigol Mr. Muhammad Athar Rafiq Mr. Muhammad Omer Farooq Mr. Samir Iqbal Saigol Mr. Syed Haroon Rashid |
Chairman Chief Executive Director Director Director Director Director |
Shareholders
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Categories |
Shareholding (%) |
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Directors, CEO, and their spouses and minor children Associated Companies, Undertakings and related party NIT & ICP Banks, Development Financial Institutions, Non Banking Financial
Institutions Insurance Companies Modarabas and Mutual Funds General Public Others |
59.9152 --- 0.1384 0.1017 0.3646 4.4152 34.3747 0.6903 |
Associates
A. Subsidiary
None
B. Associated Companies
- Do -
Business
Activities
Subject Company is engaged in the business as Manufacturing & sale
of Yarn.
Its import Textile Raw Materials, Textile Machineries through L/C, D/P basis to its trade suppliers
globally.
It export its product through L/C,
D/P basis to its customers globally.
Its importing countries are China, Korea, Taiwan, Singapore, Malaysia
& U.A.E.
Its main customers are reputable companies, domestic & worldwide.
Subject operates from owned office premises measuring 600 Sq.Yards situated at residential area of Lahore,
Punjab.
Subject employs about 1,161 persons in its set up.
Annual
Sales Volume
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Years |
In Pak Rupees |
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2016 2017 |
2,470,387,179/- 2,934,544,549/- |
Plant
Capacity & Actual Production
2017 2016
Spinning
Number of spindles installed No. 51,840 51,840
Plant capacity on
the basis of utilization converted into 80s count Kgs
3,054,796
3,054,796
Actual production
converted into 80s count Kgs
2,663,298
2,521,430
Customers
(Foreign)
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Major customers are Distribution Companies, Buying Agencies, International
Buyers etc |
Trade
Suppliers (Foreign)
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Subject import globally from Companies belongs to China, Korea,
Taiwan, Singapore, Malaysia & U.A.E. |
Bankers
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(1) Askari Bank Limited, Pakistan. (2) Bank Alfalah Limited, Pakistan. (3) Faysal Bank Limited, Pakistan. (4) MCB Bank Limited, Pakistan. (5) United Bank Limited, Pakistan. (6) The Bank of Punjab, Pakistan. (7) Meezan Bank Limited, Pakistan. |
Operating
Financial Results
During the year under review, Company had posted 18.82% increase in net
sales resulted in substantial t margin over the last year. Total net sales for
the year are Rs. 2,934.545 million as compared to Rs.increase in Gross Pro t
after tax for the year is Rs. 13.779 million as against after tax loss of
Rs.66.1562,470.387 million during last year. Net pro million in corresponding
year. The year under review was tough for Textile Industry in general, Domestic
crop of Raw cotton was effected badly by untimely rains in cotton growing areas
and only 11 million bales were harvested which is quite low as compared to our
domestic consumption. Many mills were forced to shut down and the rest was
forced to import expensive raw material from abroad. Though yarn prices were
good during earlier part of the year but start declining during last quarter of
the year under review. Had the prices of yarn remain stable during last quarter
the annual results may have been far better.
Memberships
All Pakistan Textile Mills Association. (APTMA)
Comments
Subject Company was established in 1987 and is engaged in manufacture
& sale of Yarn. Market reputation is good. 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 64.95 |
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1 |
INR 90.23 |
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Euro |
1 |
INR 80.09 |
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PKR |
1 |
INR 0.59 |
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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NIS |
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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.