MIRA INFORM REPORT

Report Date :

26.10.2013

IDENTIFICATION DETAILS

Name :	SILVER ASSOCIATES (SA)
Registered Office :	307, Al-Rehmat Trade Centre, Dandia Bazar opp. City Court, Karachi-74200
Country :	Pakistan
Date of Incorporation :	1993
Legal Form :	Proprietorship concern
Line of Business :	Trading (Import and Export) of Rice, Pulses and Spices.
No. of Employees :	5

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, 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

company name

SILVER ASSOCIATES (SA)

GENERAL INFORMATION

Business Name	Silver Associates (SA)
Address	307, Al-Rehmat Trade Centre, Dandia Bazar opp. City Court, Karachi-74200, Pakistan.
Telephone	(+92) (21) 32733938-40
Fax	(+92) (21) 32762724
Email	bhimani@cyber.net.pk
Website	www.silverassociates.pk
Business activities	Trading of Food & Agro Products (Importer, Exporter)

Registry Details

The business is a PROPRIETORSHIP CONCERN, which requires no mandatory registration with any regulatory authority to conduct business.

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

Other registry details:

Current Legal Form	Proprietorship concern
National Tax Registration Number	Not disclosed
Date of Registration	Not disclosed
GST Registration Number	Not disclosed
Date of Registration	Not disclosed

Capital

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

History

Who started	Hassan Bhimani
When started	1993
Change in management	No change
Year of change	No change
Change in legal status	No change
Year of change	No change
Change in business address	Previous address: Opposite Jama Masjid, City Court, Near Tahir Plaza, Karachi
Year of change	2005

PRINCIPALS (SPONSORS)

Name	Nationality
Mr. Hassan Bhimani	Pakistani

KEY MANAGEMENT

Name	Position in organization	Qualification	Years in employment
Mr. Hassan Bhimani	Proprietor	Graduate	Since 1976
Mr. Sadaruddin	Manager	Graduate	8 years

Statutory offices	Name of service provider
Statutory Auditors	Not mandatory
Legal Advisory Services	Not mandatory

BANKERS

Soneri Bank Ltd

Askari Bank Ltd

Bank Al Habib Ltd

DETAILS OF BUSINESS ACTIVITIES

The core business focus of SA is Trading (Import and Export) of Rice, Pulses and Spices.

Products dealt-in are:

Pulses: Yellow Peas, Red Lentils, Yellow Lentils, Red Split Lentils, Red Kidney Beans, Pigeon Peas, Kabuli Chick Peas, Desi Chick Peas, Green Peas, Whole Urid

Spices: Black Pepper, Cloves, Turmeric Ground or Haldi, Ginger

Rice: Super Basmati Paddy, Super Basmati Brown Rice, Super Basmati Double Polished, Super Basmati Silky Polished, Basmati 385, Irri 9 None Basmati, Irri 6 None Basmati

Purchases (Incl. Imports)

Imports from	Canada, Australia, China, Singapore, Dubai, Brazil
Importing terms	L/C & D/P
Local (%)	All over Pakistan
Local buying terms	Cash and Credit of 15 days

Sales (Incl. Exports)

Exports to	Middle East
Exporting terms	D/P
Local (%)	All over Pakistan
Local selling terms	Cash and Credit of 15 Days

NUMBER OF EMPLOYEES

Nature of employment	Current Year	Previous Year
Permanent	05	05
Contractual	10	10
Daily wages (average)	0	0
Total	15	15

BUSINESS FACILITIES

Head office Address Owned / Rented Area (approx)	307, Al-Rehmat Trade Centre, Dandia Bazar opp. City Court, Karachi-74200, Pakistan. Stated to be Owned (Title documents not shown) 300 Sq. Ft.
Warehouse Address Owned / Rented Area (approx)	Hawks Bay Road (Complete address not disclosed) Rented Undetermined

MARKET REPUTATION

Couple of buyers of the SA were contacted, who confirmed trade relationship of six to eight years satisfactorily. They find SA as an average player in the market. Their payment terms are usually credit of 15-20 days. They 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
Hassan Traders	Karachi	Same	100%

BUSINESS PERFORMANCE

Business performance could not be analyzed as the contact person declined to share financial information.

INTERVIEW & REPORTER COMMENTS

Contact person	Mr. Hassan Bhimani
Position	Proprietor
Comments	Mr. Hassan Bhimani confirmed business operations and shared business information, however; he declined to share financial information.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.63
UK Pound	1	Rs.99.94
Euro	1	Rs.85.14

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