MIRA INFORM REPORT

Report No. :	508432
Report Date :	14.05.2018

IDENTIFICATION DETAILS

Name :	HUSSAIN MILLS LIMITED

Registered Office :	Room No. 809, Saima Trade Tower-B, I.I. Chundrigar Road, Karachi

Country :	Pakistan

Financials (as on) :	30.06.2017

Date of Incorporation :	1980

Com. Reg. No.:	0007615

Legal Form :	Public Limited Company

Line of Business :	Subject Company is engaged in manufacture & sale of Yarn & Fabric.

No. of Employees :	2,950

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate

Payment Behaviour :	Slow and 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

Company name

Business Name

HUSSAIN MILLS LIMITED

Full Address

Registered Address

Room No. 809, Saima Trade Tower-B, I.I. Chundrigar Road, Karachi, Pakistan

Tel #	92 (21) 32217328, 32217329
Fax #	92 (21) 32210213
Email	htmltex@brain.net.pk

Short Description Of Business

Nature of Business	Engaged in manufacture & sale of Yarn & Fabric
Year Established	1980
Registration No.	0007615

Mills Location

HML (Unit-1&3)

Fazalabad, Vehari Road, Opp. Timber Market, Multan.

Ph. No. 92-61-4527238, 4528241, 4529088

Fax No. 92-61-526487, 526572

HML (Unit-2) 3

5-KM Bahawalpur Road,

Near Adda Muhammad Pur, Multan.

HML (Unit-4) Qadir Pur Rawan Bypass,

Khanewal Road, Multan.

Ph. No. 92-61-4578866, 686979

HML (Unit 5)

8-Km, Khanewal By Pass Road,

Mauza Kohiwala, Kabirwala.

Ph. No. 92-65-2450621, 2450595

Auditors

Rafaqat Hussain & Co.

(Chartered Accountants)

Legal Status

Public Limited Company (Listed at stock exchange of Pakistan)

Details of Management

Names

Designation

Mr. Muhammad Ismail

Mr. Sheikh Umar Farooq

Mr. Hussain Ahmad Fazal

Mr. Mushtaq Ahmad

Mst. Ghazala Nasreen

Mr. Nishat Ahmad Sheikh

Mst. Tahira Imtiaz

Mr. Ashar Fazal

Chief Executive

Director

Shareholders

Categories

Shareholding (%)

Directors, CEO, their Spouses & Minor Children

Associated Companies, Undertaking & Related Parties

Associates

A. Subsidiary

None

B. Associated Companies

(1) Zafar Nasir Oil Extraction Limited, Pakistan.

(2) Ahmed Fine Textile Mills Limited, Pakistan.

(3) Fawad Textile Mills Limited, Pakistan.

(4) Hussain Ginneries Limited, Pakistan.

(5) Fatima Enterprises Limited, Pakistan.

Business Activities

Subject Company is engaged in manufacture & sale of Yarn & Fabric.

Its import Textile Raw Materials, Textile Machineries through L/C, D/P basis.

It sells its product through L/C, D/P basis to its foreign customers.

Its exporting countries are European Countries.

Its importing countries are China, Korea, Taiwan, Singapore & European Countries.

Its major customers are Buying Agencies, Distribution Companies, International Buyers etc.

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

Subject employs about 2,950 persons in its set up.

Annual Sales Volume

Years

In Pak Rupees

2015

2016

2017

11,796,521,501/-

10,292,089,593/-

10,590,320,072/-

Plant Capacity & Actual Production

2017 2016

Ring Spinning Sections

Owned Capacity

Number of Spindles Installed 75,360 75,360

Number of Spindle Shifts Worked 3 3

Installed Capacity at 20/S Count (Kgs.) 365 Days 27,605,148 27,605,148

Actual Production of All Counts (Kgs.) 22,371,442 31,344,692

Actual Production Converted into 20/S Count (Kgs.) 19,900,967 22,002,587

Leased Capacity

Number of Spindles Installed 17,280 17,280

Number of Spindles Shifts Worked 3 3

Capacity at 20/S Count (Kgs.) 365 Days 6,329,843 6,329,843

Actual Production of All Counts (Kgs.) - 1,432,514

Actual Production Converted into 20/S Count (Kgs.) - 1,415,105

Weaving Section

Owned Capacity

Number of Looms Installed 130 130

Number of Looms Shifts Worked 3 3

Capacity at 50 picks/inch (Meters) - 365 days 31,287,622 31,287,622

Actual Production of All picks/inch 20,062,250 19,473,190

Actual Production Converted into 50 picks/inch 24,741,499 24,686,135

Leased Capacity

Number of Looms Installed 80 80

Number of Looms Worked None None

Capacity at 50 picks/inch (Meters) - 365 days 17,466,585 17,466,585

Actual Production - -

It is difficult to describe precisely the production capacity in Spinning/Weaving Mills since it fluctuates widely depend on various factors such as count of yarn spun, spindles speed, twist and raw materials used, etc. It also varies according to the pattern of production adopted in a particular Year. The reason for under utilization of available capacity is attributable to normal Repair and Maintenance, Power failures and count changes.

Trade Suppliers (Foreign)

Subject import globally from Companies belongs to China, India, Korea, Indonesia, Japan, Taiwan & European Countries. Its global trade suppliers are Companies related to Textile Raw Materials, Machineries

Customers

Major customers are Buying Agencies, Distribution Companies, International Buyers etc

Bankers

(1) Askari Bank Limited, Pakistan.

(2) Allied Bank Limited, Pakistan.

(3) National Bank of Pakistan, Pakistan.

(4) Habib Bank Limited, Pakistan.

(5) Soneri Bank Limited, Pakistan.

(6) MCB Bank Limited, Pakistan.

(7) Bank Islami Pakistan Ltd, Pakistan.

(8) Faysal Bank Limited, Pakistan.

(9) Al-Baraka Bank Pakistan Limited, Pakistan.

Future Outlook

Efforts have been planned to penetrate into new market segments and to improve efficiency and productivity of the Company.

Memberships

· APTMA

· KCCI

· FPCCI

Comments

Subject Company was established in 1980 and is engaged in manufacture & sale of yarn & fabric. Directors are reported as qualified, experienced and resourceful businessmen.

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 67.22
UK Pound	1	INR 90.88
Euro	1	INR 80.09
PKR	1	INR 0.58

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

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	SYL

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.