MIRA INFORM REPORT

Report Date :

31.03.2011

IDENTIFICATION DETAILS

Name :	GRIND WHEEL (PAK) LIMITED

Registered Office :	2nd Floor, Karachi Chambers, Hasrat Mohani Road, Karachi-74000

Country :	Pakistan

Financials (as on) :	30.06.2009

Year of Establishment :	1951

Com. Reg. No.:	0000464

Legal Form :	Unlisted Public Limited Company

Line of Business :	Pakistan's leading manufacturing company for Grinding Wheels, Honning Sticks, Precision Wheels, Grinding Cups, Grinding Bars and all other Grinding and Rubbing products.

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

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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Pakistan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Business Name

GRIND WHEEL (PAK) LIMITED

Full Address

Registered Address

2nd Floor, Karachi Chambers, Hasrat Mohani Road, Karachi-74000, Pakistan

Tel #	92 (21) 32415300, 32419097
Fax #	92 (21) 32430754
Email	gwp@cyber.net.pk

Short Description Of Business

Nature of Business	Pakistan's leading manufacturing company for Grinding Wheels, Honning Sticks, Precision Wheels, Grinding Cups, Grinding Bars and all other Grinding and Rubbing products.
Year Established	1951
Registration #	0000464

Factory Location

Address	F-30, Near Naya Daur Motors, S.I.T.E., Karachi, Pakistan
Tel #	92 (21) 32571170, 32571725, 32570951
Fax #	92 (21) 32430754

Auditors

M.B. Manna & Co.

(Chartered Accountants)

Standard Insurance House, I.I. Chundrigar Road, Karachi, Pakistan

Legal Status

Subject Company was incorporated as a Unlisted Public Limited Company in 1951

Authorized Capital	Rs. 30,000,000/- divided into 300,000 shares of Rs. 100/- each
Issued & Paid up Capital	Rs. 26,036,600/- divided into 260,366 shares of Rs. 100/- each

Details of Directors

Names

Nationality

Address

Occupation

Designation

Mr. Shahnawaz Ghazali

Mrs. Mani C. Cowasjee

Mr. A.R.Z. Ghazali

Mr. Russie M. Dinshaw

Mr. Rustom Sohrab Rustumji

Mrs. Meher R. Kabraji

Mr. Rustom D. Kabraji

Mr. Shahnawaz Ghazali

Pakistani

2nd Floor, Karachi Chambers, Hasrat Mohani Road, Karachi

Business

Chief Executive

Director

Categories of Shareholders

Names

Shareholding (%)

Individuals

Investment Companies

Joint Stock Companies

Financial Institutions

Charitable Institutions

Modaraba Companies

Associated Companies

Insurance Companies

65.98

---

15.13

---

18.89

---

Associates

A. Subsidiary

None

B. Associated Companies

(1) Family Educational Service Foundation, Pakistan.

(2) D.H. Daruvala & Co., Pakistan.

Products

Pakistan's leading manufacturing company for Grinding Wheels, Honning Sticks, Precision Wheels, Grinding Cups, Grinding Bars and all other Grinding and Rubbing products.

Number of Employees

Annual Production Volume

The capacity and production of the company’s plant is indeterminable as it is multi-product and involves varying processes of manufacture

Annual Sales Volume

Year	In Pak Rupees
2009	74,197,145/- (Estimated)

Trade Suppliers (Foreign)

Subject mainly import from Companies belongs to China, India, Taiwan, Thailand & Korea

Customers

Mainly Distribution Companies, Trading Companies etc

Bankers

(1) The Royal Bank of Scotland, Pakistan.

(2) Standard Chartered Bank, Pakistan.

(3) United Bank Limited, Pakistan.

(4) Bank Alfalah Limited, Pakistan.

(5) Habib Bank Limited, Pakistan.

Memberships

· Karachi Chamber of Commerce & Industry.(KCCI)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 85.15
UK Pound	1	Rs. 136.46
Euro	1	Rs. 119.50

Comments

Subject Company was established in 1951 and is Pakistan's leading manufacturing Company for Grinding Wheels, Honning Sticks, Precision Wheels, Grinding Cups, Grinding Bars and all other Grinding and Rubbing products. Market reputation is satisfactory. Trade relations are reported as fair. Subject can be considered for normal business dealings at usual trade terms and conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.77
UK Pound	1	Rs.71.69
Euro	1	Rs.63.02

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	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
--	NB	New Business	--

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