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MIRA INFORM REPORT
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Report No. : |
499586 |
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Report Date : |
29.03.2018 |
IDENTIFICATION DETAILS
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Name : |
SALFI TEXTILE MILLS LIMITED |
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Registered Office : |
6th Floor, Textile Plaza, M.A. Jinnah Road, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
1968 |
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Com. Reg. No.: |
0002595 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
The principal business of the company is to manufacture and sale of
yarn |
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No. of Employees : |
1,223 |
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 : |
Good |
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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
SALFI TEXTILE MILLS LIMITED
Full
Address
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Registered Address |
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6th Floor, Textile Plaza, M.A. Jinnah Road, Karachi,
Pakistan |
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Tel # |
92 (21) 32412955, 32412953, 32426761, 32426762, 32426764 |
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Fax # |
92 (21) 32417710 |
Short
Description Of Business
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a. |
Nature of Business |
The principal business of the company is to manufacture and sale of
yarn |
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b. |
Incorporated |
1968 |
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c. |
Registration No. |
0002595 |
Mills
Locations
HX-1, Landhi Industrial Area,
Landhi, Pakistan
Auditors
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Deloitte Yousuf Adil (Chartered Accountants) |
Legal
Status
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Salfi Textile Mills Limited (the Company) is a public limited company incorporated
in Pakistan and listed on Pakistan Stock Exchange |
Details
of Chairman / Directors
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Names |
Designation |
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Mr. Anwar Ahmed Tata Mr. Adeel Shahid Anwar Tata Mr. Shahid Anwar Tata Mr. Aijaz Ahmed Tariq Mr. Bilal Shahid Anwar Mr. Muhammad Naseem Mr. Sheikh Kausar Ejaz |
Chairman / Chief Executive Director Director Director Director Director Director |
Shareholders
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Categories |
Percentage (%) |
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Directors, their Spouse(s) and Minor Children Associated Companies, Undertakings and Related Parties Public Sector companies & Corporations Banks, Development Finance Institutions, Non- Banking Finance Companies, Insurance Companies Takaful, Modarbas and pension funds, Mutual Funds Others General Public |
78.77 10.96 0.54 0.30 3.13 0.15 6.15 |
Associated
Companies
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(1) Island Textile Mills Limited, Pakistan. (2) Tata Textile Mills Limited, Pakistan. (3) Tata Energy Limited, Pakistan. (4) Tata Best Foods Limited, Pakistan. |
Business
Activities
The principal business of the company is to manufacture and sale of yarn
Number
of Employees
1,223
Annual
Sales Volume
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Years |
In Pak Rupees |
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2016 2017 |
4,975,582,877/- 5,284,257,682/- |
Plant
Capacity & Production
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Description |
2017 |
2016 |
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Number of spindles installed Number of spindles worked Number of shifts per day Installed capacity after conversion into 20/s
count (Kgs) Actual production of yarn after conversion into
20/s count (Kgs) |
36,708 36,708 3 12,806,181 12,239,478 |
36,708 36,708 3 12,806,181 12,189,196 |
Trade
Suppliers (Foreign)
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Subject import globally from Companies
belongs to China, Thailand, Taiwan, Indonesia, U.A.E.,
India, Korea & Japan. Its global trade suppliers are Companies related to Textile Raw Materials, Machineries |
Customers
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Various domestic & International |
Bankers
Allied Bank Ltd,
Pakistan.
Barclays Bank
PLC, Pakistan.
Dubai Islamic
Bank Pakistan Ltd, Pakistan.
Faysal Bank Ltd,
Pakistan.
Habib Bank Ltd,
Pakistan.
Habib
Metropolitan Bank Ltd, Pakistan.
MCB Bank Ltd,
Pakistan.
Meezan Bank Ltd,
Pakistan.
National Bank of
Pakistan, Pakistan.
(10) Standard
Chartered Bank, Pakistan.
(11) The Bank of
Punjab, Pakistan.
Financial
Position
Sound
Future
Outlook
Its Commitment to quality is very high; therefore, most of its
investments have remained in quality and product diversification. Management is
planning to add TFOs at Salfi Textile Mill to produce plied yarns.
Memberships
KCCI
FPCCI
APTMA
Comments
Tata Group enjoys good
reputation in Pakistan. Directors of the Company are reported as qualified,
experienced and resourceful businessmen. Payments are usually correct and as per
commitments. 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 65.04 |
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1 |
INR 92.28 |
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Euro |
1 |
INR 80.62 |
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PKR |
1 |
INR 0.56 |
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 : |
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
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
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.