MIRA INFORM REPORT

 

 

Report Date :           

22.10.2011

 

IDENTIFICATION DETAILS

 

Name :

TUWAIRQI STEEL MILLS LIMITED

 

 

Registered Office :

First Floor, Block D, Finance & Trade Centre, Shahrah-e-Faisal, Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

2004

 

 

Com. Reg. No.:

0047101

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

The objective of the Company is to set up and run a steel complex to produce and export steel and all kinds of allied products

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Pakistan

b2

b2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Business Name

 

TUWAIRQI STEEL MILLS LIMITED

 

 

Full Address       

 

Registered Address

First Floor, Block D, Finance & Trade Centre, Shahrah-e-Faisal, Karachi, Pakistan

                       

Tel #

92 (21) 35630951

Fax #

92 (21) 35631008

Email

info@tuwairqi.com.pk

 

 

Short Description Of Business

 

a.

Nature of Business        

The objective of the Company is to set up and run a steel complex to produce and export steel and all kinds of allied products

b.

Year Established

2004

c.

Registration #

0047101

 

 

Head Office

 

P.O. Box: 7600 
Dammam, 31472
Saudi Arabia
Tel.: +966 3 812 1143
Fax: +966 3 812 1059

 

 

Plant Location

           

Acquired a land measuring 220 acres at Port Qasim. Plant is built at a cost of US $ 500 million situated in the Port Qasim area is under construction.

 

Auditors

 

 M. Yousuf Adil Saleem & Co.

(Chartered Accountants)

Cavish Court, A-35, Block 7 & 8, KCHSU, Shahrah-e-Faisal, Karachi, Pakistan                     

 

 

Legal Status

 

The Company was incorporated in Pakistan as a Public Limited Company on 2004.

 

 

Authorized Capital

Rs. 10,000,000,000/- divided into 1,000,000,000 ordinary shares of Rs. 10/- each

Issued & Paid up Capital

Rs. 2,420,000,000/- divided into 242,000,000 ordinary shares of Rs. 10/- each

 

 

Details of Directors

 

Names

Occupation

Mr. Mohammad Tariq Barias

 

Dr. Hilal Hussain S. Al Tuwairqi

 

Mr. Aamir Barias

 

Mr. Zaigham Adil Rizvi

 

Mr. Nadeem Khalid Awan

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Names

No. of Shares

Mr. Mohammad Tariq Barias

 

Dr. Hilal Hussain S. Al Tuwairqi

 

Mr. Aamir Barias

 

Mr. Zaigham Adil Rizvi

 

Mr. Nadeem Khalid Awan

 

Al-Ittefaq Steel Products Company, Saudi Arabia

48,398,900

 

48,399,400

 

500

 

500

 

500

 

 

145,200,200

 

 

Associated Companies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

           

·         Al-Tuwairqi Trading & Contracting.

·         National Steel Company Limited.

·         Al-Faisal Steel Products Company.

·         The International Electrical Product Company.

·         Thamesteel Limited

 

 

Products

 

The objective of the Company is to set up and run a steel complex to produce and export steel and all kinds of allied products

 

 

Number of Employees

 

80

 

 

Activities & Production Capacity

 

The objective of the Company is to set up and run a steel mill for manufacturing steel and all kinds of allied products. Tuwairqi Steel Mills Limited as a part of Al-Tuwairqi group of Companies of Saudi Arabia, with the designed capacity of 1.5 million tons per annum, involving phased investment to the tune of around US $ 500 million over an area of 220 acres at Port Qasim is under construction. Tuwairqi Steel Mills had an initial operational capacity of 1.28 million tons per annum of Directly Reduced Iron (DRI) & Billets. TSML plans to commission the DRI plant in the Phase-I of the Project in the first quarter of 2009. The core part of the plant and machinery has already been imported, major civil works completed and mechanical works are being carried out on fast track. Keeping in view the local and international demand for the steel products, TSML has planned alongside the DRI Plant an Induction Furnace Project to produce 0.5 million tons per annum of Billets as an intermediary phase.                                                                                           

 

 

Bankers

 

·         Bank Al-Habib Limited, Pakistan.

·         National Bank of Pakistan.

·         Habib Bank Limited, Pakistan.

·         Bank Alfalah Limited, Pakistan.

·         Askari Bank Limited, Pakistan.

·         United Bank Limited, Pakistan.

·         Dubai Islamic Bank Pakistan Limited, Pakistan.

 

           

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupees

US Dollar

1

           Rs. 86.80

UK Pound

1

           Rs. 136.80

Euro

1

           Rs. 119.30

 

 

Comments

 

Subject Group enjoys good reputation internationally. All the directors are reported as qualified, resourceful & experienced businessmen. 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.50.07

UK Pound

1

Rs.79.16

Euro

1

Rs.69.04

 

 

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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