MIRA INFORM REPORT

Report Date :

07.02.2008

IDENTIFICATION DETAILS

Name :	IHSAN SONS (PRIVATE) LIMITED

Registered Office :	Ihsan Chamber, A-37, 3^rd Floor, Block 7 & 8, C.C. Area, K.C.H.S.U., Shahrah-e-Faisal, Karachi

Country :	Pakistan

Date of Incorporation :	1978

Com. Reg. No.:	0006211

Legal Form :	Private Limited Company

Line of Business :	Manufacture of Shoddy from Textile Waste

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 :	Regular

Litigation :	Clear

Business Name

IHSAN SONS (PRIVATE) LIMITED

Full Address

Registered Address

Ihsan Chamber, A-37, 3^rd Floor, Block 7 & 8, C.C. Area, K.C.H.S.U., Shahrah-e-Faisal, Karachi, Pakistan

Tel	92 (21) 4520082 - 87 (5 Lines)
Fax	92 (21) 4520088, 4520089

Short Description Of Business

Nature of Business	Engaged in manufacture of Shoddy from Textile Waste
Year Established	1978
Registration #	0006211

Branches

Address	FB-5, 3rd Floor, Awami Complex, Usman Block, New Garden Town, Lahore, Pakistan
Tel #	92 (42) 5884677, 5884671
Fax #	92 (42) 5884669

Address	801-A, City Towers, Main Boulevard, Gulberg, Lahore, Pakistan
Tel #	92 (42) 5770411 - 15 (5 Lines)
Fax #	92 (42) 5770409, 5770410

Factory Location

F-207 Textile Avenue,

S.I.T.E., Karachi,

Pakistan

Auditors

M. Yousuf Adil Saleem & Co.

(Chartered Accountants)

A-35, Cavish Court, Block 7 & 8, K.C.H.S.U., Shahrah-e-Faisal, Karachi, Pakistan

Legal Status

Subject Company was established as a Private Limited Company in 1978

Authorized Capital	Rs. 120,000,000/- divided into 12,000,000 shares of Rs. 10/- each
Issued & Paid up Capital	Rs. 120,000,000/- divided into 12,000,000 shares of Rs. 10/- each

Details of Directors

Names

Address

Occupation

Designation

Mr. Mahmood Ihsan

Mr. Javed Ihsan

Mr. Nadeem Ihsan

Mr. Asif Ihsan

48, Al-Hamra Society, Karachi

Business

Chief Executive

Director

Shareholders

Names

No. of Shares

Mr. Javed Ihsan

Mr. Mahmood Ihsan

Mr. Nadeem Ihsan

Mr. Asif Ihsan

Mrs. Rifat Javed

Mrs. Saba Imran

Mr. Junaid N. Ihsan

Mr. Bilal A. Ihsan

Mr. Ahsan A. Ihsan

Mr. Faizan N. Ihsan

Mr. Shehryar M. Ihsan

Mr. Yahya M. Ihsan

Mr. Arsalan N. Ihsan

1,455,575

1,454,946

1,455,575

355,402

485,192

727,787

485,191

728,102

485,191

Associates

A. Subsidiary

None

B. Associated Companies

Ihsan Cotton Products (Pvt) Limited, Pakistan.

Ihsan Raiwind Mills (Pvt) Limited, Pakistan.

Business Activities

Subject Company is engaged in the business as manufacture of Shoddy from Textile Waste. With the introduction of PVC equipment in 1996, Ihsan expanded its product range to meet international requirements for Dotted and Criss-cross gloves.

It purchases raw material against L/C basis.

It’s mainly export to U.S.A. Fareast and the South African region.

It’s mainly import from China, India, Malaysia, Taiwan, Thailand & Germany.

Its’ major customers are Traders, Retailers, Buying Agencies etc.

Subject operates from caption leased office premises of area measuring 1,900 Sq ft. which is situated in commercial plaza.

Subject employs about 250 persons in its set up.

Annual Sales Volume

Year	In Pak Rupees
2006 - 2007	300,000,000/- (Estimated)

Actual Production & Capacity

Currently Producing about 6,300 tonnes of shoddy from Textile Waste. Whereas Gloves total production capacity of 70,000 dozens pairs monthly.

Bankers

Meezan Bank Limited, Pakistan.

United Bank Limited, Pakistan.

MCB Bank Limited, Pakistan.

Habib Metropolitan Bank Limited, Pakistan.

Faysal Bank Limited, Pakistan.

Memberships

Karachi Chamber of Commerce & Industry.(KCCI)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 62.85
UK Pound	1	Rs. 123.00
Euro	1	Rs. 91.90

Comments

Subject Company enjoys good reputation in Pakistan. Directors are reported as qualified, experienced & resourceful businessmen. Trade relations are reported as fair. Company can be considered for normal business dealings at usual trade terms and conditions.

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%)

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