MIRA INFORM REPORT

Report Date :

24.12.2008

IDENTIFICATION DETAILS

Name :	I-M STEEL INDUSTRY

Registered Office :	Haji Ishaq Cold Storage, Mehmood Booti, Bund Road, Lahore

Country :	Pakistan

Year of Establishment :	1998

Legal Form :	Partnership

Line of Business :	Manufacture of Steel Products, Steel Structure, Bridge Guides, Steel & Iron, Steel Plates

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	No Complaints

Litigation :	Clear

Business Name

I-M STEEL INDUSTRY

Full Address

Registered Address & Factory

Haji Ishaq Cold Storage, Mehmood Booti, Bund Road, Lahore, Pakistan

Tel 92 (42) 6863231, 6828091, 8522754

Fax 92 (42) 6863231

Website isl@nexlinx.net.pk

Short Description Of Business

a.	Nature of Business	Manufacture of Steel Products, Steel Structure, Bridge Guides, Steel & Iron, Steel Plates
b.	Year Established	1998
c.	National Tax #	2537156

Branches

In Multan & Lahore

Legal Status

Subject Company was established as a Partnership business in 1998

Details of Managing Partner / Partners

Names

Designation

Mr. Mehmood Hussain

Mr. Arslan Iftikhar

Mr. Farhan Ishtiaq

Mr. Matloob Hussain

Managing Partner

Partner

Associated Companies

(1) Ishtiaq Steel Industry, Pakistan.

(2) Mehmood Steel Industry, Pakistan.

Products

Manufacture of Steel Products, Steel Structure, Bridge Guides, Steel & Iron, Steel Plates

Number of Employees

176

Actual Steel Consumption

Approximately 30,000 - 60,000 Tons per annum

Annual Sales Volume

Year	In Pak Rupees
2006 - 2007	200,000,000/- (Estimated)

Customers (Pakistan Based)

Mainly Traders, Dealers, Government Enterprises, Steel Manufacturing Companies, Engineering Concerns etc

Bankers

· Bank Alfalah Limited, Pakistan.

· Askari Commercial Bank Limited, Pakistan.

· Habib Bank Limited, Pakistan.

· Bank Alhabib Limited, Pakistan.

· Standard Chartered Bank, Pakistan.

Scenario Related To Steel Industry In Pakistan

Steel is a basic input for economic growth and it plays a very important role in the industrial development of a country. Thus in many developing countries creation of facility for indigenous steel production is rightly considered as a national project which aims at increasing self-reliance and accelerating the process of industrialization. Lahore, pakistan's second largest city, the market is essentially a raw material supply source for the country’s expanding steel industry. The boom in the steel industry is part of pakistan's overall economic growth which is expected to touch seven per cent during the current fiscal year. Pakistan has around 85 steel manufacturing units spread all over the country, with around 45 in punjab which are fed by the lahore scrap market. The country as a whole produced more than four million tonnes of steel last year, with the demand for this year. However, according to trade policy announced earlier this year mentioned the imports of iron and steel have been increased by 74% and iron & steel scrap by 33.9%.

Memberships

· Lahore Chamber of Commerce & Industry.(LCCI)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 79.00
UK Pound	1	Rs. 116.80
Euro	1	Rs. 107.40

Comments

Subject Company was established in 1998 and is engaged in manufacture of Steel Products, Steel Structure, Bridge Guides, Steel & Iron, Steel Plates. Overall reputation is satisfactory. Trade relations are reported as fair. Company can be considered for normal business dealings at usual trade terms and conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.99
UK Pound	1	Rs.72.49
Euro	1	Rs.68.44

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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