MIRA INFORM REPORT

Report Date :

26.03.2013

IDENTIFICATION DETAILS

Name :	NEW LIGHT HOUSE (PVT) LIMITED

Registered Office :	82 - Nishter Road, Lahore

Country :	Pakistan

Year of Establishments:	1947

Com. Reg. No.:	0011391

Legal Form :	Private Limited Company

Line of Business :	Import & Trading of Welding Equipment & Machineries, Welding Rods, Metal Cuttings, Welding Electrodes & Supplies, Electric Transformers

No. of Employees :	62

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 :	Satisfactory

Payment Behaviour :	Slow

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

Business Name

NEW LIGHT HOUSE (PVT) LIMITED

Full Address

Registered Address

82 - Nishter Road, Lahore, Pakistan

Tel #	92 (42) 37241624, 37242741, 37242742
Fax #	92 (42) 37238798
Email	newlight@lhr.comsats.net.pk

Short Description Of Business

a.	Nature of Business	Import & Trading of Welding Equipment & Machineries, Welding Rods, Metal Cuttings, Welding Electrodes & Supplies, Electric Transformers
b.	Year Established	1947
c.	Registration #	0011391

Branches

(1) Shop No.1, Zohaib Building, Near Risala Police Station, Nishter Road, Karachi, Pakistan.

(2) New Light Corporation, 400-E, Kashmir Road, Saddar, Rawalpindi, Pakistan.

Auditors

Nasir Jamil & Co.

(Chartered Accountants)

Legal Status

Subject Company was incorporated as a Private Limited Company in 1947

Authorized Capital	Rs. 5,000,000/- divided into 5,000 shares of Rs. 1000/- each
Issued & Paid up Capital	Rs. 2,700,000/- divided into 2,700 shares of Rs. 1000/- each

Details of Management

Names

Nationality

Address

Occupation

Designation

Mr. Mian Saghir Ahmed

Mr. Mian Amjad Aziz

Mr. Mian Rashid Ahmed

Mr. Mian Rashid Aziz

Mr. Mian Faisal Rashid

Pakistani

50-B-1, Gulberg - III, Lahore

Business

Chief Executive

Director

Shareholders

Names

No. of Shares

Mr. Mian Saghir Ahmed

Mr. Mian Amjad Aziz

Mr. Mian Rashid Ahmed

Mr. Mian Rashid Aziz

Mr. Mian Faisal Rashid

Mrs. Bushra Amjad

Mrs. Rubina Rashid

500

700

100

700

200

250

Associated Companies

(1) General Pipe and Machinery Stores (Pvt) Limited, Pakistan.

Business Activities

Import & Trading of Welding Equipment & Machineries, Welding Rods, Metal Cuttings, Welding Electrodes & Supplies, Electric Transformers

Number of Employees

Annual Sales Volume

Year	In Pak Rupees
2011	180,000,000/- (Estimated)

Trade Suppliers

(Foreign)

· LINCOLN ELECTRIC COMPANY, U.S.A.

· CHOSUN WELDING COMPANY, KOREA.

· NICHI DENSHOKO, KOREA.

· HILARIUS HAARLEM HOLLAND B.V., HOLLAND.

· TIANJIN YOUFA WELDING MATERIAL CO.,LTD, CHINA.

· VICTOR WELDING SUPPLY COMPANY, U.S.A.

· HONEYWELL, U.S.A.

· SPIRAX-SARCO, UNITED KINGDOM.

Customers

Mainly Traders, Automotive Companies, Engineering Companies, Private Companies etc

Importing Countries

Mainly from European Countries, Singapore, Korea, Taiwan, Japan, Australia, China, U.S.A. & U.K.

Bankers

· Habib Bank Limited, Pakistan.

· Bank Al-Habib Limited, Pakistan.

· Bank Alfalah Limited, Pakistan.

· MCB Bank Limited, Pakistan.

· United Bank Limited, Pakistan.

Memberships

· Lahore Chamber of Commerce & Industry.(LCCI)

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

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 99.20
UK Pound	1	Rs. 148.35
Euro	1	Rs. 128.50

Comments

Subject Company was established in 1947 and is engaged in import & trading of Welding Equipment & Machineries, Welding Rods, Metal Cuttings, Welding Electrodes & Supplies & Electric Transformers. Market 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.54.09
UK Pound	1	Rs.82.47
Euro	1	Rs.70.49

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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