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Report Date : |
04.01.2013 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE SACKS LIMITED |
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|
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|
Registered Office : |
E-110, Khayaban-e-Jinnah,
Lahore Cantt, Lahore |
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Country : |
Pakistan |
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|
|
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Year of Establishment : |
2011 |
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Com. Reg. No.: |
0075522 |
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Legal Form : |
Non-Listed Public Limited Company |
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|
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Line of Business : |
Engaged in manufacture
& marketing of Packing Materials, Packaging Materials |
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|
|
No. of Employees : |
150 |
RATING & COMMENTS
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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 |
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Payment Behaviour : |
No Complaints |
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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 (31.03.2011) |
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
|
Registered
Address |
|
E-110, Khayaban-e-Jinnah,
Lahore Cantt, Lahore, Pakistan |
|
Tel # |
92 (42) 111-328-462 |
|
Fax # |
92 (42) 36621389 |
|
Email |
|
a. |
Nature of Business |
Engaged in
manufacture & marketing of Packing Materials, Packaging Materials |
|
b. |
Year Established |
2011 |
|
c. |
Registration # |
0075522 |
Mukhtar Garh, Sadiqabad, Rahim Yar Khan
Punjab, Pakistan
|
A.F. Ferguson & Co. (Chartered Accoutants) |
|
Subject Company was established as a Non-Listed Public Limited Company
in 2011 |
|
Authorised Capital |
Rs. 250,000,000/- divided into 25,000,000
shares of Rs. 10/- each |
|
Issued & Paid up Capital |
Rs. 23,500,000/- divided into 2,350,000
shares of Rs. 10/- each |
|
Names |
Designation |
|
Mr. Fahd Mukhtar Mr. Zeeshan Afzal Mr. Arif Hamid Dar Mr. Iftikhar Mahmood Baig Mr. Ausaf Ali Qureshi Mr. Muhammad Usman Hanif |
Chief Executive Director Director Director Director Chief Financial
Officer |
|
Names |
No. of Shares |
|
Pak Arab Fertilizers Limited, Pakistan |
2,349,996 (99%
shares held) |
A. Subsidiary
None
B. Associated
Companies
(1)
Fatima Fertilizer Company
Limited, Pakistan.
(2)
Reliance Weaving Mills
Limited, Pakistan.
(3)
Reliance Commodities
(Pvt) Limited, Pakistan.
(4)
Fatima Sugar Mills Limited,
Pakistan.
(5)
Fatima Energy Limited,
Pakistan.
(6)
Pakistan Mining Company
Limited, Pakistan.
(1) Subject
Company is engaged in manufacture &
marketing of Packing Materials, Packaging Materials.
(2)
It purchases against D/A basis.
(3)
It sells against Credit Terms to its local customers.
(4) Its major
customers are Fertilizer Companies, Manufacturers, Private Companies etc.
(5) Subject
operates from caption leased office premises of area measuring 600 sq.ft. which is situated at commercial area
of Lahore.
(6)
Subject employs about 150
persons in its set up.
The annual
production volume is indeterminable as it mainly depends upon the requirement
from local manufacturing units and market demand.
|
Year |
In Pak Rupees |
|
2011 |
150,000,000/- (Estimated) |
Subject mainly import from Companies belongs
to China, Korea, Japan & European Countries
(1)
Bank Alhabib Limited, Pakistan.
(2)
The Bank of Punjab,
Pakistan.
(3)
Meezan Bank Limited,
Pakistan.
(4)
MCB Bank Limited,
Pakistan.
(5)
Allied Bank Limited,
Pakistan.
·
Lahore Chamber of Commerce & Industry.(LCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 97.30 |
|
UK Pound |
1 |
Rs. 157.30 |
|
Euro |
1 |
Rs. 128.30 |
Subject Company was established in 2011 and
is engaged in manufacture &
marketing of Packing Materials, Packaging Materials. Overall 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.54.42 |
|
|
1 |
Rs.88.29 |
|
Euro |
1 |
Rs.71.49 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.