MIRA INFORM REPORT

Report Date :

11.01.2013

IDENTIFICATION DETAILS

Name :	SCHNEIDER ELECTRIC PAKISTAN (PVT) LIMITED

Formerly Known As :	AREVA T & D PAKISTAN (PVT) LIMITED

Registered Office :	D-163, S.I.T.E., Karachi 75700

Country :	Pakistan

Date of Incorporation :	1963

Com. Reg. No.:	0001818

Legal Form :	Private Limited Limited

Line of Business :	Manufacture & Installation of Electrical Switchgears, Grid Stations & Distribution Systems

No. of Employees :	320

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Good
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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 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

Company name

SCHNEIDER ELECTRIC PAKISTAN (PVT) LIMITED

(FORMERLY: AREVA T & D PAKISTAN (PVT) LIMITED

Full Address

Registered Address

D-163, S.I.T.E., Karachi 75700, Pakistan

Tel #

92 (21) 32576005 - 09 (5 Lines)

Fax #

92 (21) 32560449

Email

apkho@cyber.net.pk,

pervezsk@cyber.net.pk

Short Description Of Business

a.	Nature of Business	Manufacture & Installation of Electrical Switchgears, Grid Stations & Distribution Systems
b.	Year Established	1963
c.	Registration #	0001818

Branches

Address	3^rd Floor, KSB Building, 16/2 Sir Aga Khan III Road, Lahore, Pakistan
Tel #	92 (42) 36300688, 36300685
Fax #	92 (42) 36300683

Auditors

M. Yousuf Adil Saleem & Co.

(Chartered Accountants)

Cavish Court, A-35, Block 7 & 8, KCHSU, Shahrah-e-Faisal, Karachi, Pakistan

Legal Status

Subject Company was established as a Private Limited Limited in 1963 by the name of AEG Pakistan (Pvt) Limited. In 1985, Its name was changed from “AEG Pakistan (Pvt) Limited to “Alstom Pakistan (Pvt) Limited”. In December, 2005 the subject company has been applied for change of name from “Alstom Pakistan (Pvt) Limited” to “AREVA T & D Pakistan (Pvt) Limited” which is finally been approved with the securities & exchange commission of Pakistan.

Authorized Capital	Rs. 200,000,000/- divided into 2,000,000 shares of Rs. 100/- each
Issued & Paid up Capital	Rs. 100,000,000/- divided into 1,000,000 shares of Rs. 100/- each

Details of Management

Name

Designation

Mr. Mazhar Valjee

Mr. Bryan Foster

Mr. Ravi Arthur

Mr. Sarmad Amin

Mr. Marco Graziano

Chief Executive

Director

Shareholders

Name

No of Shares

Areva T & D Holding, France

Mr. Sarmad Amin

800,000

200,000

Associated Companies

Areva T & D Holding, France is the holding company of Areva T & D Pakistan (Pvt) Limited (80% shares held)

Products

Manufacture & Installation of Electrical Switchgears, Grid Stations, Distribution Systems including Electric Power Plug Automatic Tripping, Electric Switch Board, Electric Panels & Distribution Boards, Electrical Switchgears,
Power Engineering, Industrial Instrumentation, Sugar Mill Machinery & Parts, Electric Circuit Breakers of all types, Electric Meters, Electric Motors.

Number of Employees

320

Annual Sales Volume

Year	In Pak Rupees
2010	1,349,282,000/-

Trade Suppliers (Foreign)

· TYCO ELECTR RAYCHEM GMBH, GERMANY.

· AVATEX POWER PTE LIMITED, SINGAPORE.

Clientele

Mainly Sugar Companies, Engineering Concerns, Manufacturing Companies, Government Organizations etc

Bankers

· Bank Al-Habib Limited, Pakistan

· The Royal Bank of Scotland, Pakistan.

· Faysal Bank Limited, Pakistan.

· Standard Chartered Bank, Pakistan.

· Habib Bank Limited, Pakistan.

· Soneri Bank Limited, Pakistan.

Memberships

· Federation Pakistan Chamber of Commerce & Industry.(FPCCI)

· Karachi Chamber of Commerce & Industry.(KCCI)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 98.20
UK Pound	1	Rs. 157.70
Euro	1	Rs. 127.23

Comments

Subject Company enjoys good reputation internationally as well as in Pakistan. Directors are reported as qualified, resourceful and experienced businessmen. Payments to creditors etc are reported as normal. The Company can be considered good for normal business dealings at usual trade terms and conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.63
UK Pound	1	Rs.87.50
Euro	1	Rs.71.32

INFORMATION DETAILS

Report Prepared by :

SDA

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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