MIRA INFORM REPORT

 

 

Report Date :

13.12.2013

 

IDENTIFICATION DETAILS

 

Name :

SHAHZAD INTERNATIONAL (SI)

 

 

Registered Office :

House No. 15, Post Box 1440, Main Nazimuddin Road, F-10/4, Islamabad

 

 

Country :

Pakistan

 

 

Date of Incorporation :

10.12.1998

 

 

Legal Form :

Partnership Firm

 

 

Line of Business :

Subject is providing services and trading related to oil and gas exploration/ production and energy sector.

 

 

No. of Employees :

500

 

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 :

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 


company name

 

SHAHZAD INTERNATIONAL (SI)

 

 

GENERAL INFORMATION

 

Business Name

M/S. SHAHZAD INTERNATIONAL  

Corporate & Registered Office

 

Registered Address

House No. 15, Post Box 1440, Main Nazimuddin Road, F-10/4, Islamabad

Head Office

House No. 20, Main Margalla Road, F-8/3, Islamabad

Branch Office

95-C, St#16, Phase-VI, DHA, Khayaban-e-Seher, Karachi, Pakistan

Telephone

Registered Address

051-2287170-5

Head Office

92-51-2287170-75 (6 Lines),

Branch Office

92-21-5859618

Fax

Registered Address

051-2287154-55

Head Office

92-51-2287154 & 55 (2 Lines)

Branch Office

92-21-5859616

Email

shahzadgroup@dsl.net.pk 

pel@pepl.com.pk

peplshzd@isb.comsats.net.pk  

Website

www.shahzadintl.com.pk

Business activities

Trading and Services related to Oil and Gas Exploration/ Production and Energy sector.

 

Registry Details

 

SI is a Partnership Firm, registration with any regulatory body is not mandatory.

 

CRO Registration Number

N/A

Date of Registration

           

Other registry & certification details:

Current Legal Form

Partnership Firm

National Tax Registration Number

1151879-7

Date of Registration

January 01, 2000

GST Registration Number

070184005228

Date of Registration

December 10, 1998

Chamber of Commerce & Industry

Undetermined

ISO Certification

None

Other certifications

Undetermined

 

Capital

 

Type

No. of Shares

Par Value

Total Value

Not Applicable

 

History

 

Who started

Mr. Zaheer ud Din 

When started

1988

Change in management

None

Year of change

N/A

Change in legal status

None

Year of change

N/A

Change in business name

None

Year of change

N/A

 

 

PRINCIPALS (SPONSORS)

 

Name

Number of Shares

Nationality

Appointment Date (Last)

Mr. Zaheer ud Din

N/A.

Pakistani

30 Years

Other partners names not disclosed / Undetermined

 

 

Total

 

 

 

 

 

KEY MANAGEMENT

 

Name

 

Position in organization

Qualification

Years in employment

Mr. Zaheer ud Din 

CEO/ Managing Partner

Highly qualifies & experienced people

Mr. Zafar Iqbal

Director  Administration

Mr. Moeenuddin

Director Marketing

Mr. Shahzad Zaheer

Director Finance

 

Statutory offices

Name of service provider

Statutory Auditors

Not Appointed

Legal Advisory Services

Not Appointed

 


BANKERS

 

Bank name

Approved financing limits PKR

NIB Bank Ltd

Not disclosed

 

 

DETAILS OF BUSINESS ACTIVITIES

 

The primary focus of the SI is providing services and trading related to oil and gas exploration/ production and energy sector.

 

SI is a reputable business house with worldwide contacts and business experience of over 25 years. It takes pride in delivering quality products, solutions and services that give customers a competitive advantage over others. It plays a leading role in promotion of technologies, innovation, competitiveness in services; and, economic growth. Shahzad International is a dynamic and result oriented company that has emerged as a major integrated services and trading house, in Pakistan. Shahzad International has played a commendable role in bringing world-renowned multinational companies to Pakistan, for substantial investment in the oil and gas sector, which has culminated into significant discoveries in the provinces of Sindh and Balochistan. Shahzad International also arranges procurement of equipment and specialized services from abroad and is a supplier of general machinery, equipment, sophisticated materials and services to energy related industries in Pakistan and elsewhere.

 

Shahzad International can render valuable assistance and excellent services in commercial and engineering projects. In view of the experience, expertise and well-established offices in Pakistan and foreign countries, Shahzad International is in the best position to provide excellent and efficient services in all areas of procurement of equipment and services. Over two decades of a proven track record, experience and growth has credited Shahzad International as a leading Pakistani Corporate entity in the following specialized fields:

 

·         Oil and Gas Upstream and Downstream

·         Oil and Gas Equipment, Materials, Services

·         Refineries and Oil / Gas Pipelines

 

·         Geological / Geophysical Surveys, Seismic Data Processing

·         Oil and Gas Production & Processing Equipments / Materials, Petrochemical Plants

·         Power Generation, Telecommunication, Mining and Metallurgy

·         Civil Aviation, Civil Construction, Airports, Hotels

·         Environment, Pollution Treatment

·         Procurement Services

·         Consultancy and Project Manpower Support

·         Gold Exploration and Prospecting

·         Minerals, Gemstones and industrial rocks

·         Coal washing and coal gasification

·         Security Documents, and security related materials

·         Computerized Vehicles Licensing Systems.

·         Security Services including Police Wireless Systems, VIP Security Systems

·         Geographical Information Systems

·          Automatic Mapping Facility Management Systems

 

 

Purchases (Incl. Imports) (Details not provided)

Imports from

Not Disclosed

Importing terms

Local

Local buying terms

 

Sales (Incl. Exports) (Details not provided)

Exports to

Not Disclosed

Exporting terms

Local (%)

Local selling terms

 

 

NUMBER OF EMPLOYEES

 

Nature of employment

Current Year

Previous Year

All Staff

500

500

Total

500

500

 

 

BUSINESS FACILITIES

 

Corporate & Registered  Office

Owned / Rented

Area (approx)

House No. 15, Post Box 1440, Main Nazi mud Din Road, F-10/4, Islamabad Owned

Owned

Not Disclosed

Corporate Head Office

Owned / Rented

Area (approx

House No. 20, Main Margalla Road, F-8/3, Islamabad

Owned

Not Disclosed

Branch Office

Owned / Rented

Area (approx

95-C, St#16, Phase-VI, DHA, Khayaban-e-Sehr, Karachi, Pakistan

Owned

Not Disclosed

 

 

MARKET REPUTATION

 

We contacted many customers/ competitors of the concern, we got to know that the concern has been operating this business for many years with customers as old as 10 years, we also got to know that the business holds a good market reputation and a good customer base. During the market check we did not hear any negative remarks, no complaints or disputes were reported to us.

 

 

DETAILS OF RELATED/GROUP BUSINESSES

 

Business Name

City

LINE OF BUSINESS

Percentile of Shareholding

Shahzad Travels (Private) Limited

 

 

 

 

 

 

 

 

 

 

 

 

 Islamabad

Travelling Agency

1). Mr. Zaheer ud din’s

2). Mr. Zafar Iqbal’s

3). Mr. Moeen Uddin’s

27.5%.

45%

27.5%

Flash Securities Services (Private) Limited

Security Services provider

1). Mr. Zaheer ud din’s

2). Mr. Zafar Iqbal’s

3). Mr. Moeen Uddin’s

50%.

25%

25%

Global Mining Company (Private) Limited

Exploration & Mining

 

 

1). Mr. Zaheer ud din’s

2). Mr. Zafar Iqbal’s

3). Mr. Moeen Uddin’s

4). Mr. Shahzad Zaheer’s

25%.

25%

25%

25%

Kandra Power Company (Private) Limited

Independent power Provider

1). Mr. Zaheer ud din’s

2). Mr. Shahzad Zaheer’s

50%.

50%

Shahzad CGG Veritas (Private) Limited

 

 

 

Not Disclosed

 

1). Mr. Shahzad Zaheer

2). Mr. Moeen Uddin

3). Mr. Zaheer Uddin’s

4). Mr. Daniel Van Hulle

5). Mr. Thiery Le Roux

20%

20%

20%

20%

20%

Petroleum Exploration Pvt Ltd

Oil & Gas Exploration

  Mr. Zaheer ud din

 Mr. Zafar Iqbal

 Mr. Moeen uddin

 Mr. Shahzad Zaheer

10%

80%

05%

05%

 

 

BUSINESS PERFORMANCE

 

The Contact person decline to share financial information.

 

 

INTERVIEW & REPORTER COMMENTS

 

Contact person

Mr. Jawad Ahmed

Position

Personal Staff to Director

Analyst’s Observations/ comments

At the time of visit the contact person disclosed that subject is part of Shahzad Group of companies. And Shahzad International is main managing company of overall group.

 

We  observed during our investigation that subject has group of companies and all companies has same top management structure and sponsors and also operates all activities from same head office.

 

During our assessment it was observed and disclosed by contacted person that subject group has number of sites & branch offices located all over the world.

 

The contact person told us that SI was the first registered established company of the group, while all others were formed afterwards.

 

We observed that the company has a good office setup, employees were busy in their respective tasks.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.62

UK Pound

1

Rs.100.84

Euro

1

Rs.84.98

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.