MIRA INFORM REPORT

Report Date :

15.11.2011

IDENTIFICATION DETAILS

Name :	RAJCO INDUSTRIES

Registered Office :	Rajco Building, Noul, Wazirabad Road, Sialkot 51310

Country :	Pakistan

Year of Establishment :	1950

Legal Form :	Partnership Concern

Line of Business :	Manufacture & Export of Knitted / Sports Garments

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 – September 30^th, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Pakistan

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

Business Name

RAJCO INDUSTRIES

Full Address

Registered Address

Rajco Building, Noul, Wazirabad Road, Sialkot 51310, Pakistan

Tel

92 (52) 3553122, 3559330

Fax

92 (52) 3554813

Email

rajco@brain.net.pk,

rajcoindustries@hotmail.com,

rajcousa@yahoo.com

Short Description Of Business

a.	Nature of Business	Manufacture & Export of Knitted / Sports Garments including Tracksuits, Tennis wear, Rain Jackets, Coach Jackets, Soft shell Jackets, Soccer and Basketball Uniforms, Sweat Shirts & Pants, Ladies and Gents Pants, Tees and Polo Shirts, Pollar fleec Jackets, Hoodi Sweet Shirts
b.	Year Established	1950
c.	National Tax #	1536017

Overseas Branches

Rajco GMBH Bahnhof str 49
D-65479, Raunheim,

Germany

Legal Status

Subject Concern was established as a Partnership business in 1950

Details of Managing Partner / Partners

Names

Nationality

Address

Occupation

Designation

Mr. Shahbaz Rafique

Mr. Chaudhry Mohammad Shafi Bhatti

Mst. Aisha Ijaz

Mr. Ijaz Ahmed

Mst. Musarrat Afza

Pakistani

Rajco Building, Noul, Wazirabad Road, Sialkot

Business

Managing Partner

Partner

Business Activities

Subject Concern is engaged in manufacture & export of Knitted / Sports Garments including Tracksuits, Tennis wear, Rain Jackets, Coach Jackets, Soft shell Jackets, Soccer and Basketball Uniforms, Sweat Shirts & Pants, Ladies and Gents Pants, Tees and Polo Shirts, Pollar fleec Jackets, Hoodi Sweet Shirts.

It purchases raw material against D/A, D/P, L/C basis.

It’s mainly import from China, European Countries, Taiwan, Singapore, U.K. & U.S.A.

Its major customers are Buying Agencies, Distribution Companies etc

Its mainly export to European Countries & U.S.A.

Subject operates from caption leased factory premises which is situated at industrial area of Sialkot.

Subject employs about 600 persons in its set up.

capital investment

Approximately PKR 500,000,000/-

Annual Sales Volume

Year	In Pak Rupees
2009	350,000,000/- (Estimated)

Actual Production Capacity

Stitching unit consists of 1500 imported machines which come from the best brands of the world and runned by the most skilled workers to produce the quality garments.

Production Volume

Approximately 5,000 pieces per day

Trade Suppliers (Foreign)

Subject mainly import from Companies belongs to China, European Countries, Taiwan, Singapore, U.K. & U.S.A.

Bankers

· The Royal Bank of Scotland, Pakistan.

· Bank Alfalah Limited, Pakistan.

· Habib Metropolitan Bank Limited, Pakistan.

· Soneri Bank Limited, Pakistan.

· Citibank N.A., Pakistan.

Scenario related to sports good industry in Pakistan

Sialkot has so far exported over 55.8 million footballs worth more than Rs 8.5 billion. Local manufacturers and exporters engaged in the soccer ball industry are making hectic efforts to meet the demand of foreign buyers and ensure speedy and timely delivery of the consignments. Over 85 percent of the total production of soccer balls in the world comes from Sialkot, while all international brands are sourcing their supply of footballs from this export-oriented city in the country. Over 40 million balls worth US $ 210 million are produced annually by some 60,000 highly skilled male and female workforce of Sialkot, a city which enjoys a unique position in global trade with reference to sports goods. At present the local sports goods sector needs fresh incentives and facilitation from the government. The need for keeping in tune the city’s exports manufacturing sector, mainly sports goods with emerging global trends cannot be over-emphasised. This call for putting in place a competitive export strategy, failing which Pakistan will risk losing even the existing market share rather than increasing it.

Memberships

· Sialkot Chamber of Commerce & Industry.(SCCI)

· All Pakistan Hosiery Manufacturers & Exporters Association. (APHMEA)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 86.30
UK Pound	1	Rs. 137.60
Euro	1	Rs. 118.50

Comments

Subject Concern was established in 1950 and is engaged in manufacture & export of Knitted / Sports Garments. 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.50.85
UK Pound	1	Rs.80.36
Euro	1	Rs.68.83

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%)

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.