MIRA INFORM REPORT

 

 

Report No. :

499524

Report Date :

22.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

DIAMOND TYRES LIMITED

 

 

Registered Office :

3-KM, Manga Raiwind Road, Lahore, Pakistan

 

 

Country :

Pakistan

 

 

Financials (as on) :

 30.06.2016

 

 

Date of Incorporation :

1968

 

 

Com. Reg. No.:

0048477

 

 

Legal Form :

Public Limited Company (Not listed at stock exchange of Pakistan)

 

 

Line of Business :

Subject engaged in the manufacture and sale of tyres and tubes of cycle, motor cycle, trollies & wheel barrows

 

 

No. of Employees :

350

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Maximum Credit Limit :

 USD 427000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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.

 

 

PAKISTAN - ECONOMIC OVERVIEW

 

Decades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. Pakistan has a large English-speaking population. Nevertheless, 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 most 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 6.1% in 2016, 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 2016. Low global oil prices in 2016 contributed to a narrowing current account deficit and lower inflation. Remittances from overseas workers continued to be a key revenue source, also mitigating the impact of the lack of foreign investment and a growing trade deficit on the country’s current account.

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,” a $46 billion investment program targeted towards the energy sector and other infrastructure projects that Islamabad and Beijing had agreed on in early 2013.

 

Source : CIA

 

Business Name

 

DIAMOND TYRES LIMITED

 

 

Full Address       

 

Registered Address

 

3-KM, Manga Raiwind Road, Lahore, Pakistan

                       

Tel #

92 (42) 111-555-246, 35911553

Fax #

92 (42) 35911523

Email

diamond@cyberaccess.com.pk

 

 

Short Description Of Business

 

Nature of Business       

Engaged in the manufacture and sale of tyres and tubes of cycle, motor cycle, trollies & wheel barrows

Year Established

1968

Registration #

0048477

 

 

Factory Location

                       

Address

23 K.M., Multan Road, Mohlanwal, Lahore, Pakistan

Tel No.

92 (42) 111-111-666, 37540336, 37540337

Fax No.

92 (42) 37540335

 

 

Auditors

 

Sarwars

(Chartered Accountants)

Office No.12, Second Floor, Lahore Centre, 77-D Main Boulevard, Gulberg-III, Lahore, Pakistan

 

 

Legal Status

 

Public Limited Company (Not listed at stock exchange of Pakistan)

 

 

Authorized Capital    

Rs. 375,000,000/- divided into 37,500,000 shares of Rs. 10/- each

Issued & Paid up Capital

Rs. 300,000,000/- divided into 30,000,000 shares of Rs. 10/- each

 

 

Details of Directors

 

Names

 

Designation

Mr. Muzammil Ejaz

 

Mr. Shariq Iftikhar

 

Mr. Mudassir Iftikhar

 

Mr. Bilal Ejaz

Chief Executive

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Names

 

No. of Shares

Mr. Mudassir Iftikhar

 

Mr. Iftikhar Shaffi

 

Mr. Shariq Iftikhar

 

Mr. Bilal Ejaz

 

Mr. Muzammil Ejaz

 

Capital Industrial Enterprises (Pvt) Limited, Pakistan

 

Symbol Industries (Pvt) Limited, Pakistan

 

Diamond Home Textile (Pvt) Limited, Pakistan

5,250,000

 

1,000

 

5,249,000

 

5,250,000

 

5,250,000

 

 

3,000,000

 

 

3,000,000

 

 

3,000,000

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

Subsidiary

 

None                                            

 

Associated Companies

           

(1) Symbol Industries (Private) Limited, Pakistan.

(2) Capital Industrial Enterprises (Private) Limited, Pakistan.
(3) Diamond Home Textile (Private) Limited, Pakistan.
(4) Diamond Industries Limited, Pakistan.
(5) Shaffi Chemical Industries Limited, Pakistan.

 

 

Business Activities

 

Engaged in the manufacture and sale of tyres and tubes of cycle, motor cycle, trollies & wheel barrows

 

 

Number of Employees

 

350

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2016

2,713,876,480/-

 

Trade Suppliers (Foreign)

Subject import globally from Companies belongs to European Countries, China, Korea, Japan, Taiwan, Thailand & U.A.E

 

Capacity & Production

Annual production volume is indeterminable as it’s mainly depend on the requirements from their domestic as well as international customers

 

 

Customers

 

(1) ATLAS HONDA LIMITED, PAKISTAN.

(2) DAWOOD YAMAHA MOTORCYCLES, PAKISTAN.

(3) SUZUKI MOTORCYCLES LIMITED, PAKISTAN.

(4) DEWAN AUTOMOTIVE MANUFACTURING LIMITED, PAKISTAN.

(5) SOHRAB MOTORCYCLES, PAKISTAN.

(6) DYL MOTORCYCLES LIMITED, PAKISTAN.

(7) HUNZA MOTORCYCLES, PAKISTAN.

(8) THUNDER MOTORCYCLES  (PVT) LIMITED, PAKISTAN.

(9) HABIB MOTORCYCLES (PVT) LIMITED, PAKISTAN.

 

 

Bankers

           

(1) Silk Bank Limited, Pakistan.

(2) Bank Alfalah Limited, Pakistan.

(3) Standard Chartered Bank, Pakistan.

(4) The Bank of Punjab, Pakistan.

(5) NIB Bank Limited, Pakistan.

(6) Soneri Bank Limited, Pakistan.

(7) MCB Bank Limited, Pakistan.

 

 

Future Outlook

 

Company has been consistently delivering customer value propositions which place it in a strong position.

 

 

Memberships

 

·         Lahore Chamber of Commerce & Industry.(LCCI)

·         Federation Pakistan Chamber of Commerce & Industry.(FPCCI)

 

 

Comments

 

Subject is a well-established Company having satisfactory track records. Directors are reported as qualified, experienced and resourceful businessmen. Trade relations are reported as fair. Payments are usually correct and as per commitments. Subject can be considered for normal business dealings at usual trade terms and conditions.

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.22

UK Pound

1

INR 91.33

Euro

1

INR 79.96

PKR

1

INR 0.59

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIS

 

 

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)

 

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