MIRA INFORM REPORT

 

                                   

Report Date :

01.04.2013

 

IDENTIFICATION DETAILS

 

Name :

KAMRAN STEEL RE-ROLLING MILLS (PVT) LIMITED

 

 

Registered Office :

18 K.M., Sheikhupura Road, Lahore

 

 

Country :

Pakistan

 

 

Year of Establishments:

1971

 

 

Com. Reg. No.:

0003484

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers of Billet, Ingot for Mild Steel, Carbon Steel, Special Steels and Stainless Steel Products

 

 

No. of Employees :

120

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory 

 

 

Payment Behaviour :

Slow

 

 

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

(31.03.2012)

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

 

KAMRAN STEEL RE-ROLLING MILLS (PVT) LIMITED

 

 

Full Address       

 

Registered Address

18 K.M., Sheikhupura Road, Lahore, Pakistan

                       

Tel #

92 (42) 37971171, 37971172

Fax #

92 (42) 37971172

 

 

Short Description Of Business

 

a.

Nature of Business

Manufacturers of Billet, Ingot for Mild Steel, Carbon Steel, Special Steels and Stainless Steel Products

b.

Year Established

1971

c.

Registration No.

0003484

 

 

Branches

           

None

 

 

Auditors

           

Hameed Khan & Co.

(Chartered Accountants)

16-A, Link Farid Kot Road, Near A.G. office, Lahore, Pakistan

 

 

Legal Status

           

Subject Company was established as a Private Limited Company in 1971

 

 

Authorized Capital

Rs. 100,000,000/- divided into 1,000,000 shares of Rs. 100/- each

Issued & Paid up Capital

Rs. 2,925,000/- divided into 29,250 shares of Rs. 100/- each

 

Details of Directors

 

Names

Designation

Mr. Sufeyan Ali

 

Mr. Naveed Arshad

 

Mrs. Rabia Khalid

 

Mrs. Irshad Begum

Chief Executive

 

Director

 

Director

 

Director

 

 

Shareholders

 

Names

No. of Shares

Mr. Sufeyan Ali

 

Mr. Naveed Arshad

 

Mrs. Rabia Khalid

 

Mrs. Irshad Begum

 

Mrs. Shahida Tabbasum

 

Mrs. Naushaba Sami

9,500

 

9,500

 

1,613

 

5,525

 

1,612

 

1,500

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

                        None                                             

           

B.         Associated Companies

·         Sufyan Enterprises, Pakistan.

·         Naveed Enterprises, Pakistan.

·         Rabia Khalid Enterprises, Pakistan.

 

 

Business Activities

 

Subject Company is engaged in the business as manufacture & marketing of Billet, Ingot for Mild Steel, Carbon Steel, Special Steels and Stainless Steel.

 

It sells against Cash / Credit terms to its local customers.

 

Its major customers are Steel Traders, Construction Companies, Cement & Sugar Industries etc

 

Subject operates from caption leased factory premises situated at main industrial area of Lahore.

 

Subject employs about 120 persons in its set up.

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2011

200,000,000/- (Estimated)

 

 

Annual Production Volume

 

With a capacity of making 200,000 tons of Mild Steel and Carbon Steel Billets annually.

 

 

Bankers

 

·         Bank Alfalah Limited, Pakistan.

·         Faysal Bank Limited, Pakistan.

·         Allied Bank Limited, Pakistan.

·         KASB Bank Limited, Pakistan.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

           Rs. 98.80

UK Pound

1

           Rs. 149.00

Euro

1

           Rs. 127.50

 

           

Comments

 

Subject Company was established in 1971 and is engaged in manufacture & marketing of steel 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.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

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%)

 

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.