3decades

MIRA INFORM REPORT

Report No. :	497619
Report Date :	19.03.2018

IDENTIFICATION DETAILS

Name :	ORIENT TEXTILE MILLS LIMITED

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

Country :	Pakistan

Financials (as on) :	2016 [Summarized]

Date of Incorporation :	1986

Com. Reg. No.:	0014446

Legal Form :	Non-Listed Public Limited Company

Line of Business :	Manufacture & Marketing of Textile Products

No. of Employees :	More Than 546

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Acceptable Risk

Business dealings permissible with moderate risk of default

Status :	Satisfactory

Payment Behaviour :	Slow & 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

(30.09.2017)

Current Rating

(31.12.2017)

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

Business Name

ORIENT TEXTILE MILLS LIMITED

Full Address

Registered Address

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

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

Short Description Of Business

a.	Nature of Business	Manufacture & Marketing of Textile Products
b.	Year Established	1986
c.	Registration #	0014446

Mills Location

Address

501, Deh-Landhi Industrial Area, Main National Highway, Karachi,

Pakistan

Tel No.

92 (21) 35001592 - 95 (4 Lines)

Fax No.

92 (21) 35001444

Auditors

Kreston Hyder Bhimji & Co.

(Chartered Accountants)

Legal Status

Subject Company was established as a Non-Listed Public Limited Company in 1986

Authorized Capital	Rs. 450,000,000/- divided into 45,000,000 shares of Rs. 10/- each
Issued & Paid up Capital	Rs. 405,000,000/- divided into 40,500,000 shares of Rs. 10/- each

Details of Directors

Names

Designation

Mr. Muhammad Iqbal

Mr. Ahmed Ibrahim

Mr. Muhammad Amjad

Mr. Muhammad Ismail

Mr. Mehmood

Mr. Ebrahim Haji Karim

Mr. Muhammad Rafiq

Chief Executive

Director

Shareholders

Names

No. of Shares

Mr. H. Ebrahim

Mrs. Hajra Hajiani

Mr. Ahmed

Miss Mehmooda

Mr. Mehmood

Mr. Mudassir

Mr. Mohsin

Mr. Muhammad Iqbal

Mr. Muhammad Rafiq

Miss. Afsheen

Mr. Muhammad Ismail

Miss. Zainab

Miss. Zohra

Mr. Muhammad Amjad

Miss. Zeenat

Miss. Ruqaiya

Mr. Adil

Miss. Amna

Miss. Anum

Mr. Abdul Karim

Miss. Saira

Mr. Arshad

Miss. Saima

166,666

103,334

2,352,502

1,117,500

999,998

2,235,000

4,470,000

3,737,500

4,470,000

2,980,000

633,332

1,117,500

2,235,000

1,835,000

1,216,668

400,000

779,999

2,200,001

2,980,000

558,750

1,117,500

558,750

Associates

A. Subsidiary

None

B. 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) Imran Crown Cork Pvt Ltd, Pakistan.

(8) Muslim Cotton Mills Ltd, Pakistan.

(9) Pakistan Dairy Products Ltd, Pakistan.

(10) Zaman Textile Mills Ltd, Pakistan.

(11) Al-Karam Textiles (Pvt) Limited, Pakistan.

(12) Thermo King Pvt Ltd, Pakistan.

(13) Ebrahim Textile Mills, Pakistan.

Business Activities

Subject Company is engaged in manufacture & marketing of Textile Products.

Its mainly import Textile Raw Materials, Textile Machineries through D/A, D/P basis.

Its main products are Home Textile Products.

It sells its product through L/C, T.T. basis.

Its main customers are reputable companies, worldwide.

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

Subject employs more than 546 persons in its set up.

Annual Sales Volume

Years

In Pak Rupees

2014

2015

2016

2,711,577,000/-

2,541,823,000/-

2,657,835,000/-

Production Capacity

Capacity of producing 3 Million Meters per month and a cut and sew facility with a capacity of handling 1.5 Million pieces per month

Customers

Various local and international

Bankers

(1) Bank Al-Habib Limited, Pakistan.

(2) Habib Metropolitan Bank Limited, Pakistan.

(3) United Bank Limited, Pakistan.

(4) Habib Bank Limited, Pakistan.

(5) Soneri Bank Limited, Pakistan.

(6) MCB Bank Limited, Pakistan.

Memberships

All Pakistan Textile Mills Association.

Karachi Chamber of Commerce & Industry.

Federation Pakistan Chamber of Commerce & Industry.

Comments

Subject Company enjoys good reputation in Pakistan. Directors of the Company are reported as qualified, experienced and resourceful businessmen. Payments are slow and delayed. 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 64.87
UK Pound	1	INR 90.49
Euro	1	INR 79.91
PKR	1	INR 0.59

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

INFORMATION DETAILS

Analysis Done by :	VIV

Report Prepared by :	TPT

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.