MIRA INFORM REPORT

Report Date :

22.08.2013

IDENTIFICATION DETAILS

Name :	FAISALABAD OIL REFINERY (PVT) LIMITED

Registered Office :	Plot # 28/1-2, North West Industrial Estate, Port Qasim Authority, Karachi

Country :	Pakistan

Year of Incorporation :	1986

Com. Reg. No.:	0014301

Legal Form :	Private Limited Company

Line of Business :	Engaged in manufacture & marketing of Ghee & Cooking Oil

No. of Employees :	394

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit:	USD 482,683 (Estimated)
Status :	Satisfactory
Payment Behaviour :	Regular
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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Pakistan

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 under 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 almost 12% for 2011, before declining to 10% in 2012. 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 fiscal year 2012, 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 about 3% per year from 2008 to 2012. 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 and rapidly urbanizing population, more than half of which is under 22. Other long term challenges include expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, and reducing dependence on foreign donors.

Source : CIA

Business Name

FAISALABAD OIL REFINERY (PVT) LIMITED

Full Address

Registered Address

Plot # 28/1-2, North West Industrial Estate, Port Qasim Authority, Karachi, Pakistan

Tel #	92 (21) 34750661, 34750665
Fax #	92 (21) 34750670
Email	forkhi@hotmail.com

Short Description Of Business

a.	Nature of Business	Engaged in manufacture & marketing of Ghee & Cooking Oil
b.	Year Established	1986
c.	Registration #	0014301

Branches

Address	Gate No. 3, The University of Faisalabad, Sargodha Road, Faisalabad, Pakistan
Tel #	92 (41) 8869891 - 96 (6 Lines)
Fax #	92 (41) 8869899

Auditors

Muneer Ahmed & Co.

(Chartered Accountants)

5, Masoom Shah Bukhari, New Neham Road, Kharadar, Karachi, Pakistan

Legal Status

Subject Company was established as a Private Limited Company in 1986

6.	Authorized Capital	Rs. 20,000,000/- divided into 200,000 shares of Rs. 100/- each
	Issued & Paid up Capital	Rs. 10,000,000/- divided into 100,000 shares of Rs. 100/- each

Details of Directors

Names

Nationality

Address

Occupation

Designation

Mr. Mian Mohammad Hanif

Mr. Mian Mohammad Rasheed

Mrs. Mukhtar Begum

Mrs. Asia Hanif

Mr. Mian Mohammad Usman

Pakistani

P-397, Jinnah Colony, Faisalabad, Punjab

Business

Chief Executive

Director

Shareholders

Names

No. of Shares

Mr. Mian Mohammad Hanif

Mr. Mian Mohammad Rasheed

Mrs. Mukhtar Begum

Mrs. Asia Hanif

Mst. Shamim Akhtar

Mr. Mohammad Hanif

Mst. Asia Saleem

Mr. Mukhtar Ahmed

Mr. Fayyaz Ali

Mr. Abdul Sattar

Mr. Mohammad Afzal

Mr. Mohammad Usman

12,235

10,150

9,500

12,000

680

3,200

7,520

3,200

9,395

Associates

A. Subsidiary

None

B. Associated Companies

(1) Madina Enterprises Limited, Pakistan.

(2) Madina Foundation, Pakistan.

(3) Madina Medical Trust, Pakistan.

Business Activities

Subject Company is engaged in manufacture & marketing of Ghee & Cooking Oil by its brand name of “KISAN”

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

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

It’s mainly import from China, Malaysia, Singapore & Indonesia.

Its major customers are Distributors, Buying Agencies, Traders etc.

Subject operates from caption leased office premises of area measuring 1,000 Sq Yards which is situated at commercial area.

Subject employs about 394 persons in its set up.

Annual Sales Volume

Year	In Pak Rupees
2011	1,000,000,000/- (Estimated)

Actual Production Capacity

Approximately 200,000 M.Tons per year

Trade Suppliers (Foreign)

(1) MEWAH OILS SDN BHD, MALAYSIA.

(2) CARGILL INTERNATIONAL TRADING PTE. LIMITED, SINGAPORE.

(3) MEWAH SDN BHD, MALAYSIA.

Bankers

(1) Citibank N.A., Pakistan.

(2) Habib Metropolitan Bank Limited, Pakistan.

(3) Bank Alhabib Limited, Pakistan.

(4) Standard Chartered Bank, Pakistan.

(5) The Bank of Punjab, Pakistan.

Memberships

· Faisalabad Chamber of Commerce & Industry.(FCCI)

· Karachi Chamber of Commerce & Industry.(KCCI)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 102.75
UK Pound	1	Rs. 156.00
Euro	1	Rs. 134.25

Comments

Subject Company enjoys good reputation in Pakistan. 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.

CREDIT LIMIT

MAXIMUM CREDIT LIMIT: USD 482,683 (Estimated)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.46
UK Pound	1	Rs.99.42
Euro	1	Rs.85.12

INFORMATION DETAILS

Report Prepared by :

PRL

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.