MIRA INFORM REPORT

Report Date :

09.11.2013

IDENTIFICATION DETAILS

Name :	M/S. SIGMA HMJA SCREENS (SHS)
Registered Office :	64-Chenab Market, Susan Road, Madina Town, Faisalabad
Country :	Pakistan
Date of Incorporation :	23.11.1995
Legal Form :	Proprietorship Concern
Line of Business :	Manufacturer (Textile Rotary Printing Screens)
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Unknown
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

GENERAL INFORMATION

Business Name	M/S. SIGMA HMJA SCREENS (SHS)
Address	64-Chenab Market, Susan Road, Madina Town, Faisalabad
Telephone	0092-41-8545195
Fax	0092-41-8718471
Mobile	0092-300-6604237
Email	sigma-fsd@cyber.net.pk
Website	None
Business activities	Manufacturer (Textile Rotary Printing Screens)

Registry Details

SHS is a PROPRIETORSHIP Firm, registration with any regulatory authority is not mandatory.

CRO Registration Number	N/A
Date of Registration	N/A

Other registry & certification details

Current Legal Form	Proprietorship Concern
National Tax Registration Number	0102465-5
Date of Registration	23/11/1995
GST Registration Number	2400590012246
Date of Registration	12/05/2009
Chamber of Commerce & Industry	2105077-4050

Capital

Type	No. of Shares	Par Value	Total Value
Authorized
Issued, Subscribed & Paid-Up

History

Who started	Mr. Abdul Rasheed Sheikh
When started	12/05/2009
Change in management	Never
Year of change	Never
Change in legal status	Never
Year of change	Never
Change in business name	Never
Year of change	Never

PRINCIPALS (SPONSORS)

Name	Number of Shares	Nationality	Appointment Date (Last)
Mr. Abdul Rasheed Sheikh	100 %	Pakistani	12/05/2009

KEY MANAGEMENT

Name	Position in organization	Qualification	Years in employment
Mr. Abdul Rasheed Sheikh	Proprietor	Not disclosed	Not disclosed

Statutory offices	Name of service provider
Statutory Auditors
Legal Advisory Services

BANKERS

The contact person declined to share banking relationships and financing arrangements.

DETAILS OF BUSINESS ACTIVITIES

Manufacturer (Textile Rotary Printing Screens)

Purchases (Incl. Imports)

Imports from	Details not disclosed
Importing terms
Local (%)
Local buying terms

Sales (Incl. Exports)

Exports to	Details not disclosed
Exporting terms
Local (%)
Local selling terms

NUMBER OF EMPLOYEES

The contact person declined to share employee details.

BUSINESS FACILITIES

Head office Address Owned / Rented Area (approx)	P-64, Chenab Market, Susan Road, Madina Town, Faisalabad Not disclosed Not disclosed
Factory Address Owned / Rented Area (approx)
Warehouse Address Owned / Rented Area (approx)

MARKET REPUTATION

Market sources recognized the business and its sponsors and did not report any dispute or untoward news relating to the business or its sponsor.

DETAILS OF RELATED BUSINESSES

Business Name	City	Line of Business	Percentile of Shareholding
M/s. Sigma Chemicals & Screens (Pvt.) Limited	Faisalabad	Import and trading of textile chemicals and rotary printing screens	Not disclosed

BUSINESS PERFORMANCE

The contact person declines to share financial information or even share the approximate/ estimated figures.

INTERVIEW & REPORTER COMMENTS

Contact person	Mr. Tariq Mehmood
Position	Accountant
Comments	The contact person confirmed business operations but declined to share all the business information, including financial information.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.73
UK Pound	1	Rs.100.92
Euro	1	Rs.84.06

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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