MIRA INFORM REPORT

 

 

Report Date :

15.10.2013

 

IDENTIFICATION DETAILS

 

Name :

INTERNATIONAL CREDIT INFORMATION LIMITED (ICIL)

 

 

Registered Office :

D-90, Block-2, Scheme No.5, Kehkashan, Clifton, Karachi-75600  

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

19.02.1998

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

·         Subject is engaged in credit information and related services to its local clientele and international affiliates/ clients.

·         Debt collection, and Asset/ Skip Tracing Services are secondary business activity of subject

 

 

No. of Employees :

278

 

RATING & COMMENTS

 

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 

Payment Behaviour :

No Complaints 

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 31st, 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

International Credit Information Limited (ICIL)

Address

D-90, Block-2, Scheme No.5, Kehkashan, Clifton, Karachi-75600, Pakistan.

Telephone

(+92) (21) 35877451-4, 111-273-348, 35376152-5

Fax

(+92) (21) 35877345

Email

aah_mundrawala@icilpk.com

Website

www.icilpk.com

Business activities

Services Provider (Credit Risk Management Services)

 

Registry Details

 

CRO Registration Number

0038814  

Date of Registration

February 19, 1998

 

Other registry details:

Current Legal Form

Public limited company

National Tax Registration Number

 

1017382-0

Date of Registration

11-Aug-1999

GST Registration Number

Unregistered

Date of Registration

N/A

 

 

Capital

 

Authorized

1,000,000 Divided into 100,000 Shares @ PKR 10 each

Issued, Subscribed & Paid-Up

776,300 Divided into 77,630 Shares @ PKR 10 each

 

 

History

 

Who Started

Dr. Adil Sultan Mufti

When Started

February 19, 1998

Change in Management

No change

Year of change

N/A

Change in Legal Status

No change

Year of change

N/A

Name change

No change

Year of change

N/A

 


 

PRINCIPALS (SPONSORS)

 

Name

Number of Shares

Nationality

Appointment Date (Last)

Mr. Babar Mufti

500

Pakistani

31/05/2011

Mr. Humayun Sultan Mufti

1,000

Pakistani

31/05/2011

Dr. Adil Sultan Mufti

772,300

Pakistani

31/05/2011

Mr. Salman Kureshi

500

Pakistani

31/05/2011

Mr. Yasser Mufti

500

Pakistani

31/05/2011

Mr. Arif Sultan Mufti

500

Pakistani

31/05/2011

Mr. Amer Aziz Saiyid

500

Pakistani

31/05/2011

Mr. Rehan Khan

500

Pakistani

31/05/2011

 

 

KEY MANAGEMENT

 

Name

 

Position in organization

Years in employment

Mr. Babar Mufti

CEO

15 years

Mr. Azfar Baqvi

COO

27 years

Mr. Azhar Naqvi

Director Business & Risk

--

Mr. Arif Abid

CFO/ Secretary

--

Mr. Yasser Mufti

Director IT

15 years

 

            Statutory offices

Name of service provider

Statutory Auditors

M/s Taseer Hadi Khalid & Co.

Chartered Accountants

Legal Advisory Services

Mr. Siraj Ahmed Khan.

Law Associates

 

 

BANKERS

 

Bank Al-Habib

United Bank

Bank Al-Falah

 

 

 

DETAILS OF BUSINESS ACTIVITIES

 

ICIL is primarily engaged in credit information and related services to its local clientele and international affiliates/ clients.

 

Debt collection, and Asset/ Skip Tracing Services are secondary business activity of ICIL.

 

ICIL has Pakistan largest credit information database for all public limited companies registered with the Companies Registrar, majority of private limited companies and over 40 percent of partnership firms.

 

ICIL has its head office in Karachi, regional office in Lahore and branch offices in all the major industrial cities and trading hubs across the country.

 

Purchases (Incl. Imports)

Imports from

UAE, Europe & USA

Importing terms

Cash & Credit of 30-45 days

Local buying %

0%

Local buying terms

N/A

 

Sales (Incl. Exports)

Exports

Nil

Exporting terms

N/A

Local %

100%

Local selling terms

Cash & Credit of 30-45 days

 

Type of Customers

FI & DFI, Manufacturing organizations and Service providers

 

 

NUMBER OF EMPLOYEES

 

Nature of employment

Current Year

Previous Year

Permanent

98

98

Contractual

180

150

Daily wages

Undetermined

Undetermined

Total

278

248

 

BUSINESS FACILITIES

 

Head office Address

Owned / Rented

Area (approx)

D-90, Block-2, Scheme No.5, Clifton, Karachi-75600

Rented

1000 Sq. Yards

 

 

Regional Office

Owned / Rented

Area (approx)

20-B, Block-G, Gulberg-III, Lahore

Rented

1000 Sq. yards

 

 

Branches & liaison offices

ISLAMABAD: 244, Street # 35, I-9/4

FAISALABAD: B-13, 18-A/3, Bilal Road, Faisal Arcade, Civil Lines

SIALKOT: 22, Warraich Mansion, Paris Road

MULTAN: Suite No.23-24 2nd Floor, Abdullah Center LMQ Road

GUJRANWALA: United Chambers 3-H, Trust Plaza

PESHAWAR: Suite#03, 1st Floor, Amin Mension, G.T. Road

HYDERABAD: Suite#5&7, Defence View Apartment, Defence

SUKKUR

QUETTA

 

 

MARKET REPUTATION

 

Various financial institutions were contacted to obtain feedback about the service quality of ICIL and its sponsors. All the feedback was found Satisfactory and no disputes or untoward events including complaints about quality of products were reported/ identified during inquiry.

 

 

DETAILS OF RELATED BUSINESSES

 

Business Name

City

Line of Business

Percentile of Shareholding

Venture Pharmaceuticals (Pvt.) Ltd.

Karachi

Distributors of Medicine

Undetermined

 

ICIL (Pvt.) Ltd.

Karachi

Business Training Services

Undetermined

 

Pak Credit Alert (Pvt.) Ltd.

Karachi

Credit Bureau Services

Undetermined

 

ICIL Technologies (Pvt.) Ltd.

Karachi

Software Developers and Importer, Trader of Biometric Devices

Undetermined

 

 

 

BUSINESS PERFORMANCE

 

Particulars

30-Jun-12

30-Jun-11

% Change

Current assets

42,160,094

42,483,990

(0.76)

Current liabilities

22,039,215

28,704,509

(23.22)

Working capital

64,199,309

71,188,499

(9.82)

 

 

 

 

Non-current assets

22,319,455

25,351,086

(11.96)

Long term liabilities

7,768,233

8,112,060

(4.24)

Net worth

94,286,997

104,651,645

(9.90)

 

 

 

 

Turnover

132,139,897

157,997,014

(16.37)

Gross Profit

42,615,737

54,565,682

(21.90)

EBIT

5,438,211

11,178,186

(51.35)

Profit / (Loss) before tax

4,073,685

9,769,204

(58.30)

Provision for taxation

(421,091)

(4,382,637)

(90.39)

Profit / (Loss) after tax

3,652,594

5,386,567

(32.19)

 

 

 

 

Creditors

19,765,827

25,057,608

(21.12)

Debtors

13,571,555

12,593,351

7.77

Cash & bank balances

15,260,881

20,716,469

(26.33)

 

 

 

 

Solvency

 

 

 

Current ratio

1.91

1.48

 

Quick ratio

1.58

1.29

 

Total liabilities to net worth ratio (%)

31.61

35.18

 

 

 

 

 

Profitability

 

 

 

Return on sales (%)

2.76

3.41

 

Return on net worth (%)

3.87

5.15

 

 

 

INTERVIEW & REPORTER COMMENTS

 

Contact person

Mr. Arif Abid Hussain

Position

CFO & Company Secretary

Comments

Mr. Arif Abid Hussain confirmed business operations and business information, including audited financial information.

 

.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.30

UK Pound

1

Rs.97.99

Euro

1

Rs.83.15

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.