MIRA INFORM REPORT

Report Date :

25.08.2012

IDENTIFICATION DETAILS

Name :	SHALIMAR STEEL RE-ROLLING MILLS (PRIVATE) LIMITED

Formerly Known As :	Javed Pervez Corporation (Pvt) Limited

Registered Office :	14-Soharwardi Street, Shalimar Town, Lahore

Country :	Pakistan

Year of Establishment :	1984

Com. Reg. No.:	0012544

Legal Form :	Private Company

Line of Business :	Manufacturer & Marketing of Steel Products

No. of Employees :	369 employees

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 :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES:

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ECGC Country Risk Classification List – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Pakistan

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

Business Name

SHALIMAR STEEL RE-ROLLING MILLS (PRIVATE) LIMITED

Full Address

Registered Address

14-Soharwardi Street, Shalimar Town, Lahore, Pakistan

Tel #	92 (42) 36553358, 37654928
Fax #	92 (42) 36548064

Short Description Of Business

a.	Nature of Business	Engaged in Manufacture & Marketing of Steel Products
b.	Year Established	1984
c.	Registration #	0012544

Work Location

Address	40 - Peco Road, Badami Bagh, Lahore, Pakistan
Tel #	92 (42) 37283342, 37281442
Fax #	92 (42) 36278567

Auditors

Fazal Mahmood & Co.

(Chartered Accountants)

147 - Shadman, Lahore, Pakistan

Legal Status

Subject Company was incorporated by the name of Javed Pervez Corporation (Pvt) Limited then afterwards its name changed to Shalimar Steel Re-rolling Mills (Pvt) Limited

Authorized Capital	Rs. 150,000,000/- divided into 1,500,000 shares of Rs. 100/- each
Issued & Paid up Capital	Rs. 120,000,000/- divided into 1,200,000 shares of Rs. 100/- each

Details of Chief Executive / Directors

Names

Nationality

Address

Occupation

Designation

Mr. Main Ijaz Ahmad

Mr. Mian Iftikhar Ahmad

Mr. Mian Mahmood Ghaznavi

Mr. Mian Arshad Javed

Mr. Mian Liaqat Ali

Mr. Mian Nadeem Baig

Mr. Mian Saleem Baig

Mr. Mian Azhar Ali Baig

Mian Mazhar Iftikhar

Mr. Mian Sohail Ijaz

Pakistani

35-A, Sultan Mahmood Road, Shalimar Town, Lahore

Business

Chief Executive

Director

Shareholders

Names

No. of Shares

Mr. Mian Ijaz Ahmad

Mr. Mian Mahmood Ghaznavi

Mr. Mian Liaqat Ali

Mr. Mian Arshad Javed

Mr. Mian Iftikhar Ahmed

Mr. Mian Nadeem Baig

Mr. Mian Saleem Baig

Mr. Mian Azhar Ali Baig

Mr. Mian Mazhar Iftikhar

Mr. Mian Sohail Ijaz

Mrs. Naseem Begum

Mrs. Ghazala Begum

Mrs. Rehana Begum

Mrs. Ishrat Begum

Mrs. Farhat Begum

Mrs. Nuzhat Begum

Mr. Mian Usman Ijaz

Mr. Mian Aamir Iftikhar

Mr. Mian Imran Iftikhar

Mr. Mian Ahmed Mehmood

Mr. Mian Arif Mahmood

Mr. Mian Umer Arshad

Mr. Mian Ali Arshad

Mr. Hassan Ali

200,353

145,193

161,163

161,343

140,943

92,222

84,446

56,923

45,440

21,110

2,810

2,640

2,830

3,150

2,460

8,190

7,500

8,180

8,184

9,770

9,760

15,250

Associated Companies

(1) New Shalimar Industries (Pvt) Limited, Pakistan.

Products

Manufacture of Steel Products including billets/blooms, Re-rollers, I Beam, H Beams, Channels, Angles, Round-Square, ribbed-twisted bars and flats

Number of Employees

369

Actual Steel Consumption

100,000 - 500,000 tons per annum

Annual Sales Revenue

Year	In Pak Rupees
2010	600,000,000/-(Estimated)

Importing Countries

Mainly from Italy, France, U.K. & Russia

Bankers

· MCB Bank Limited, Pakistan.

Askari Commercial Bank Limited, Pakistan.

Habib Bank Limited, Pakistan.

Bank Alhabib Limited, Pakistan.

Customers

Mainly Traders, Dealers, Government Enterprises, Private Steel Manufacturing Companies etc

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. 94.60
UK Pound	1	Rs. 149.10
Euro	1	Rs. 117.60

Comments

Subject Company was established in 1984 and is engaged in manufacture & sale of steel products. Market reputation is good. Directors are reported as qualified, resourceful & experienced businessmen. 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.55.38
UK Pound	1	Rs.87.80
Euro	1	Rs.69.48

INFORMATION DETAILS

Report Prepared by :

MNL

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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