MIRA INFORM REPORT

Report Date :

18.12.2013

IDENTIFICATION DETAILS

Name :	PRESSON DESCON INTERNATIONAL (PVT) LIMITED (PDIL)
Registered Office :	18 km., Ferozepur Road, Lahore-54760
Country :	Pakistan
Date of Incorporation :	27.09.2002
Com. Reg. No.:	0044460
Legal Form :	Private Limited company
Line of Business :	Subject is engaged in Engineering Services, Machinery and Equipment for Oil and Gas industries.
No. of Employees :	200

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 but correct
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	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 and address

PRESSON DESCON INTERNATIONAL (PVT) LIMITED (PDIL)

GENERAL INFORMATION

Business Name	PRESSON DESCON INTERNATIONAL (PVT) LIMITED (PDIL)
Address	Head Office / Registered Office: 18 km., Ferozepur Road, Lahore-54760, Pakistan Engineering Manufacturing Workshops Address: 2 km., Defence Road, off 24 km Multan Road Chung, Lahore -53800, Pakistan
Telephone	(+92) (42) 35880390 35923710-17-04 35966681-6
Fax	(+92) (42) 35923719-20 35811005 35811135 35966687-8
Mobile	(+92) (300) 8407410 Mr. Abdus Samad Goraya –CEO/Director (+92) (301) 8412465 Mr. Irfan Samdani
Email	info@pdil.com irfan.samdani@pdil.com sajjad.abidi@pdil.com
Website	www.pdil.com
Business activities	Engineering Services, Machinery and Equipment for Oil and Gas industries.

Registry Details

CRO Registration Number	0044460
Date of Registration	September 27, 2002

Other registry & certification details:

Current Legal Form	Private Limited company
National Tax Registration Number	1484353-6
Date of Registration	December 09, 2002
GST Registration Number	0301999953146
Date of Registration & Expiry	May 14, 2003
Chamber of Commerce & Industry	Lahore Chamber of Commerce and Industry
Date of Registration	Undetermined
ISO Certification	ISO 9001:2008, ISO 14001:2004
Date of Registration	Undetermined
Other certifications	OHSAS 18001:2007, Chinese Safety Quality License & National Board Certificates
Date of Registration	Undetermined

Capital

Type	No. of Shares	Par Value	Total Value
Authorize Capital	20,000,000	PKR. 10/-	Rs. 200,000,000/-
Paid Up Capital	16,658,004	PKR. 10/-	Rs. 166,580,040/-

History

Who started	Undetermined
When started	September 27, 2002
Change in management	None
Year of change	N/A
Change in legal status	None
Year of change	N/A
Change in business address	None
Year of change	N/A

PRINCIPALS (SPONSORS)

Name	Designation	Number of Shares	Nationality	Appointment Date (Last)
Mr. Salman Zakaria	Director	8	Pakistani	30-10-2012
Mr. Abdus Samad Goraya	CEO/Director	1	Pakistani	30-10-2012
Mr. Syed Zamanat Abbas	Director	1	Pakistani	30-10-2012
Mr. Faisal Dawood	Director	1	Pakistani	30-10-2012
Other share holder
Name of Share holder		Number of Shares
Descon Engineering Ltd.		16,657,982
Muhammad Khawar Khan		9
Abdul Razzak Dawood		1
Mr. Abdul Sohail		1
Total		16,658,004

KEY MANAGEMENT

Name	Position in organization	Qualification	Years in employment
Mr. M. Safdar	Sub-Contracting	Not Provided	Not Provided
Mr. Sohail A. Mateen	CFO	Not Provided	Not Provided
Mr. S. Irfan Samdani	Business Development Head	Not Provided	Not Provided
Mr. Naeem Ahmad	Procurement Head	Not Provided	Not Provided
Mr. S. Sajjad H. Abidi	Corporate Affairs & Taxation In charge	Not Provided	Not Provided
Mr. Imran Ikram Khawaja	Projects Head	Not Provided	Not Provided

Statutory offices
Statutory Auditors	KPMG Taseer Hadi & Company Chartered Accountant
Legal Advisory Services	Hasan & Hasan Law Associates

BANKERS

Bank name	Approved financing limits Rs.
Habib Bank Limited	1,865,351,305
Allied Bank Limited	1,560,000,000
Bank Al-Habib Limited	1,404,000,000
Askari Bank Limited	1,375,440,695
United Bank Limited	1,144,000,000
KASB Bank Limited	586,000,000

DETAILS OF BUSINESS ACTIVITIES

Presson Descon International (Pvt.) Limited (PDIL) is an integrated engineering, procurement, construction and commissioning (EPCC) company; recognized as a committed service provider by the Exploration & Production companies. PDIL lie in providing seamless services for supply of production & processing equipment, their related utilities as well as for setting up complete production & processing facilities; on turnkey basis. The company has a good market base and holds a good reputation in the market.

Products & Services

PDIL is renowned for providing quality products worldwide. Building on this reputation, we offer an extensive line of custom fabricated products and related services.

Following is a typical list of products and services that PDIL can provide to its clients. However, they possess enough capabilities to identify, procure and supply any specialized equipment required for meeting the scope of work undertaken.

Natural Gas Processing Systems

Oil Processing Systems

Utilities such as:

PDIL can also engineer/design and procure the utilities according to the requirements of the client or a specific project. These utilities generally include the following:

Power Generation

-	Natural Gas
-	Diesel

Instrument Air

Fuel Gas System

Condensate Storage, Metering & Pumping

Hot Oil System

Fire & Gas Detection System

Fire Water System

Control Systems

MCC

Chemical Injection Package

Gas Metering System

Produced Water Treatment Systems

Purchases (Incl. Imports)

Imports from	USA, China & Europe
Importing terms	LC
Local (%)	30%
Local buying terms	Cash and Credit of 30 Days

Sales (Incl. Exports)

Exports to	Middle East
Exporting terms	LC
Local (%)	60%
Local selling terms	Cash and Credit of 30 Days

NUMBER OF EMPLOYEES

Nature of employment	Current Year	Previous Year
All Staff	200	Undetermined
Total	200

BUSINESS FACILITIES

Head office Address Owned / Rented Area (approx)	18 km., Ferozepur Road, Lahore-54760, Pakistan Owned Details not provided.
Engineering Manufacturing Workshops Address Owned / Rented Area (approx)	2 km., Defence Road, off 24 km Multan Road Chung, Lahore -53800, Pakistan Details not provided.
Warehouse Address Owned / Rented Area (approx)	None

MARKET REPUTATION

During the market check of PDIL we contacted various suppliers/ customers /competitor of the subject company. In their opinion subject company is a good player of the industry and enjoys very good reputation in the market. Market sources further mentioned PDIL belongs to “Descon enginnering limited” which is provides engineering, manufacturing, construction, project management and maintenance services for oil & gas, chemical, petrochemical, power and infrastructure projects. The subject and the group is also working with some well-known companies of Pakistan such as Pakistan Petroleum Limited and Oil and Gas Development Company Limited.

DETAILS OF RELATED BUSINESSES

Business Name	City	Line of Business	Percentile of Shareholding
Enerflex Systems Limited	Canada	Engineering- Energy Sector	NOT PROVIDED
Descon Engineering Limited	Pakistan	Engineering Services	99.99%
JGC Descon Engineering	Pakistan	Engineering Services	NOT PROVIDED
Jotun Powder	Pakistan	Paint Company	NOT PROVIDED
Nimir Resins	Pakistan	Chemicals	NOT PROVIDED
Descon Integrated Projects Private Limited	Pakistan	NOT PROVIDED	NOT PROVIDED
Descon Engineering Qatar L.L.C	Qatar	Engineering Services	NOT PROVIDED
Olayan Descon Industrial Company Limited	Saudi Arabia	NOT PROVIDED	NOT PROVIDED
Olayan Descon Engineering Company Limited	Saudi Arabia	NOT PROVIDED	NOT PROVIDED
Descon Oxychem Limited	Pakistan	Producer of Hydrogen peroxide	NOT PROVIDED
Descon Engineering FZE	Not Provided	NOT PROVIDED	NOT PROVIDED
Tawoos Descon Engineering L.L.C	Not Provided	NOT PROVIDED	NOT PROVIDED
Descon Information System Private Limited	Pakistan	Technology Services Solutions	NOT PROVIDED
Gray McKenzie Engineering Services L.L.C	Not Provided	Engineering Services	NOT PROVIDED
Rousch Pakistan Power Limited	Pakistan	Power Plants	NOT PROVIDED
Descon Chemicals Limited	Pakistan	Chemical Solutions	NOT PROVIDED

BUSINESS PERFORMANCE

The contact person decline to share financial information.

INTERVIEW & REPORTER COMMENTS

Contact person	Mr. Irfan Samdani
Position	Head Business Development
Comments	The contact person confirmed business operation, he told us that the company is a part of Descon Group and is expanding with time, but refuse to share the financial information.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.96
UK Pound	1	Rs.101.14
Euro	1	Rs.85.33

INFORMATION DETAILS

Report Prepared by :

NIS

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.