MIRA INFORM REPORT

 

 

Report Date :

19.11.2012

 

IDENTIFICATION DETAILS

 

Name :

Golden Enterprises

 

 

Registered Office :

8, Sabzazar Colony, Muslim Town, Lahore

 

 

 

 

Country :

Pakistan

 

 

 

 

Year of Establishment :

2000

 

 

 

 

Legal Form :

Subject Company was established as a Proprietorship business in 2000

 

 

 

 

Line of Business :

Trading of Commodities & Chemicals

 

 

 

 

No. of Employees :

2

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Pakistan

B2

B2

 

Risk Category

ECGC Classification

 

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

pakistan - ECONOMIC OVERVIEW

 

Decades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. Agriculture accounts for more than one-fifth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings, and Pakistan's failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Official unemployment is 6%, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty - the UN Human Development Report estimated poverty in 2011 at almost 50% of the population. Inflation has worsened the situation, climbing from 7.7% in 2007 to more than 13% for 2011, before declining to 9.3% at year-end. As a result of political and economic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis. Although the economy has stabilized since the crisis, it has failed to recover. Foreign investment has not returned, due to investor concerns related to governance, energy, security, and a slow-down in the global economy. Remittances from overseas workers, averaging about $1 billion a month since March 2011, remain a bright spot for Pakistan. However, after a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to deficit in the second half of 2011, spurred by higher prices for imported oil and lower prices for exported cotton. Pakistan remains stuck in a low-income, low-growth trap, with growth averaging 2.9% per year from 2008 to 2011. Pakistan must address long standing issues related to government revenues and energy production in order to spur the amount of economic growth that will be necessary to employ its growing population. Other long term challenges include expanding investment in education and healthcare, and reducing dependence on foreign donors.

 

Source : CIA

 

 

Business Name

 

GOLDEN ENTERPRISES

 

 

Full Address       

 

Registered Address

8, Sabzazar Colony, Muslim Town, Lahore, Pakistan

 

 

                       

Tel

+923155116137

Fax

---

Email

---

 

 

Short Description Of Business

 

a.

Nature of Business      

Engaged in trading of Commodities & Chemicals.

b.

Year Established

2000

 

 

Legal Status       

 

Subject Company was established as a Proprietorship business in 2000

 

 

Details of Proprietor

 

Names

Address

Occupation

Designation

Mr. Fazal Hussain

8, Sabzazar Colony, Muslim Town, Lahore

Business

Proprietor

 

 

Associates

 

Subsidiary

None

           

Associated Companies

None

 

 

Product/Services

 

Engaged in Trading of Commodities & Chemicals

 

 

Number of Employees

 

2 

 

 

Annual Sales Volume (In Pak Rupees)

 

PKR 2,500,000/- (Estimated)

 

 

Agencies (Local and foreign)

Not Disclosed by the Proprietor

 

 

Customers

 

Mainly Retailers, Individuals located at Lahore

 

 

Bankers

 

(1)     NIB Bank Limited, Pakistan.

(2)     Habib Bank Limited, Pakistan.

(3)     United Bank Limited, Pakistan.

 

 

Observation Noticed During Our Visit

 

We visited the office of the concern where following observations were made:

 

(1)        Name Board of the Company could not be sighted at the time of our visit.

(2)        The concern’s office is difficult to locate.

(3)        Subject is located in a residential area of Lahore.

(4)        Items such as Telephones could not be seen at the concern’s shops.

(5)        Subject office is not maintained properly.

 

Subject operates from caption office premises of area measuring 600 Sq. fts, which is located at residential area.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

           Rs. 96.15

UK Pound

1

           Rs. 151.60

Euro

1

           Rs. 121.50

 

 

Comments

 

Company looks very small sized and it seems that the main business of the company is trading. From market sources no information is available, as the company has not enough presence in the market. As per our observation the company is not very active in the business circle. Trade relations are not known. Therefore we do not recommend conducting any business activity with the subject Company.

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.99

UK Pound

1

Rs.87.21

Euro

1

Rs.70.22

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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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