MIRA INFORM REPORT

Report Date :

12.11.2013

IDENTIFICATION DETAILS

Name :	M/S. HI TECH INTERNATIONAL (HTI)
Registered Office :	Defence Road, Muzaffar Pur, Sialkot
Country :	Pakistan
Date of Incorporation :	Not Available
Legal Form :	Proprietorship Concern
Line of Business :	Traders (Importers) of Chemicals (Leather Finishing)
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. HI TECH INTERNATIONAL (HTI)
Address	Defence Road, Muzaffar Pur, Sialkot, Pakistan
Telephone	(+92) (52) 4562632, 3559428
Fax	(+92) (52) 3559528
Mobile	(+92) (52) 301- 861 8222
Email	Setchemicals@gmail.com
Website	None
Business activities	Traders (Importers) of Chemicals (Leather Finishing)

Registry Details

HTI is a PROPRIETORY Firm, which requires no registration requirement with any regulatory authority for doing business.

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

Other registry & certification details:

Current Legal Form	Proprietorship Concern
National Tax Registration Number	INS
Date of Registration	N/A

Capital

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

History

Who started	Mr. Ismail Butt S/o M. Iftikhar
When started	Undetermined
Change in management	No change
Year of change	N/A
Change in legal status	No change
Year of change	N/A
Change in business name	No change
Year of change	N/A

PRINCIPALS (SPONSORS)

Name	Number of Shares	Nationality
Ismail Butt	100%	Pakistani

KEY MANAGEMENT

Name	Position in organization	Qualification	Years in employment
Ismail Butt	Proprietor

Statutory offices	Name of service provider
Statutory Auditors	N/A
Legal Advisory Services	N/A

BANKERS

HabibMetro Bank (Railway Road Branch, Sialkot)

DETAILS OF BUSINESS ACTIVITIES

The core business focus of Hi Tech International is import of chemical to be used in Leather Industry to furnish the leather. On site visit, the sign board was displayed with the name of “Set Chemicals”, was also found at the above business address.

Purchases (Incl. Imports)

Imports from	Not disclosed
Importing terms	L/C
Local (%)	Nil
Local buying terms	N/A

Sales (Incl. Exports)

Exports to	Nil
Exporting terms	N/A
Local (%)	100
Local selling terms	Cash and Credit of 30 Days

NUMBER OF EMPLOYEES

Information declined

BUSINESS FACILITIES

Head office Address Owned / Rented Area (approx)	Defence Road, Muzaffar Pur, Sialkot, Pakistan Owned 10 Marlas
Factory Address Owned / Rented Area (approx)	Same As Above
Warehouse Address Owned / Rented Area (approx)	Same As Above

MARKET REPUTATION

Market sources did not recognize the HIT, which precludes our ability to comment on its market reputation.

DETAILS OF RELATED BUSINESSES

Business Name	City	Line of Business	Percentile of Shareholding
Set Chemicals	Sialkot	Proprietorship	Undetermined

BUSINESS PERFORMANCE

The contact person declined to share business information.

INTERVIEW & REPORTER COMMENTS

Contact person	Mr. Abou Bakar
Position	Asst. Manager Accounts of Set Chemicals
Comments	The contact person stated that he is not aware of business details of HTI but he committed that he will forward our request to the concerned personnel. Thereafter, despite several attempts to contact were made but in vain. We arranged a physical visit by our analyst but he was not allowed to get in, telling him that all are in meeting. Market sources know Mr. M. Iftikhar father of the Proprietor (Mr. Ismail), who actually deals in the local market. On contacting Mr. Iftikar he stated that he will advise Mr. Amir to share business details but to date he is deferring to do so.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.30
UK Pound	1	Rs.101.36
Euro	1	Rs.84.60

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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