MIRA INFORM REPORT

 

 

Report Date :

10.12.2013

 

IDENTIFICATION DETAILS

 

Name :

GUL TRADING CO.

 

 

Registered Office :

Office No. 314, 3rd Floor, Hoor Centre, North Napier Road, Karachi

 

 

Country :

Pakistan

 

 

Year of Establishments:

2006

 

 

Legal Form :

Proprietorship Concern

 

 

Line of Business :

importer & trader of Commodities & Chemicals

 

 

No. of Employees :

03

 

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 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

 

GUL TRADING CO.

 

 

Full Address

 

Registered Address

Office No. 314, 3rd Floor, Hoor Centre, North Napier Road, Karachi, Pakistan

                       

Tel #

92 (21) 32732913

Fax #

92 (21) 32732913

 

 

Short Description Of Business

 

a.

Nature of Business        

Import & Trading of Commodities, Chemicals

b.

Year Established

2006

c.

National Tax #

2708729 – 8

 

 

Branches

 

None

 

 

Legal Status

 

Subject Concern was established as a Proprietorship business in 2006

 

 

Details of Proprietor

 

Names

Nationality

Address

Occupation

Designation

Mr. Ajab Gul

 

Pakistani

 

 

Office No. 314, 3rd Floor, Hoor Centre, North Napier Road, Karachi

Business

 

 

Proprietor

 

 

 

 

 

Associated Companies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

 

None

 

 

Business Activities

 

Subject Concern is engaged in import & trading of Commodities & Chemicals.

 

Local sales are mostly on credit terms basis to its local customers.

 

It’s mainly import from China, India, Thailand, Hong Kong & U.A.E.

 

Its’ major customers are Retailers, Wholesale Traders etc

 

Subject operates from caption leased office premises of area measuring 450 Sq.ft. situated at commercial market of Karachi.

 

Subject employs about 3 persons in its set up.

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2012

7,000,000/- (Estimated)

 

Trade Suppliers

(Foreign)

           

Subject mainly import from Companies belongs to China, India, Thailand, Hong Kong & U.A.E.

 

 

Bankers

 

(1) MCB Bank Limited, Pakistan.

(2) United Bank Limited, Pakistan.

(3) Habib Bank Limited, Pakistan.

 

 

Memberships

 

·         Karachi Chamber of Commerce & Industry.(KCCI)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 109.75

UK Pound

1

          Rs. 178.00

Euro

1

          Rs. 147.75

 

 

Comments

 

Subject Concern was established in 2006 and is engaged in import & trading business. 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.61.79

UK Pound

1

Rs.100.01

Euro

1

Rs.83.82

 

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