MIRA INFORM REPORT

 

 

Report Date :

17.09.2013

 

IDENTIFICATION DETAILS

 

Name :

KARACHI STEEL CENTER. (KSC)

 

 

Registered Office :

Shop # 7&9, Rahima Palace, Baba-e-Urdu Road, Near Moin Steel Market, M.A. Jinnah Road, Karachi. 

 

 

Country :

Pakistan

 

 

Date of Incorporation :

August 2013

 

 

Com. Reg. No.:

0516556-3

 

 

Legal Form :

Proprietorship

 

 

Line of Business :

Trader of Iron & Steel

 

 

No. of Employees :

03

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

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 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

KARACHI STEEL CENTER. (KSC)

Address

Shop # 7&9, Rahima Palace, Baba-e-Urdu Road, Near Moin Steel Market, M.A. Jinnah Road, Karachi. 

Telephone

9221-32722795, 38287222, 0345-6176808

Fax

None

Email

maminksc@gmail.com, maminksc@hotmail.com 

Website

None

Business activities

Trader of Iron & Steel

 

Registry Details

 

Subject is a proprietorship concern and has no obligation to get its business registered with any regulatory authority. However the business is registered with the tax authority in August 2013, a month back.

 

Current Legal Form

Proprietorship

National Tax Registration Number

0516556-3

Date of Registration

August 2013

GST Registration Number

Unregistered

Date of Registration

Unregistered

CRO Registration Number

Not applicable

Date of Registration

Not applicable

 

Capital

 

Authorized

N/A

Issued, Subscribed & Paid-Up

N/A

 

 

PRINCIPALS

 

Name

Age

Nationality

Experience in related field

Sheikh Muhammad Amin

68 years

Pakistani

35 years

 

Succession Resource

Muhammad Muneer

Son of Proprietor

33 years

Pakistani

6 years

 

 

KEY STATUTORY POSITIONS/ OFFICES

 

Name

Position in organization

Age

Qualification

Years of experience

Experience in related field

Sheikh Muhammad Amin

Proprietor

68 years

35 years

35 years

Muhammad Muneer

Manager

33 years

6 years 

6 years

Muhammad Junaid

Production Manager

30 years

5 years

5 years

 

Statutory offices

Name of service provider

Statutory Auditors

None

Legal Advisory Services

None

 

 

BANKERS

 

Habib Metropolitan Bank Ltd.

 

 

DETAILS OF BUSINESS ACTIVITIES

 

The core business focus of KSC is Trading of Iron & Steel.

 

 

Purchases (Incl. Imports)

Imports from

Japan, Germany & Australia

Importing terms

Sight L/C

Local

Karachi

Local buying terms

Cash

 

Sales (Incl. Exports)

Exports to

Nil

Exporting terms

N/A

Local %

100% sales in Pakistan – Nationwide

Local selling terms

Cash and Credit of 30-60 Days

 

Type of Customers

Manufacturers of Iron Products

 

 

NUMBER OF EMPLOYEES

 

Nature of employment

Current Year

Previous Year

Permanent

03

03

Contractual

Nil

Nil

Daily wages

Nil

Nil

Total

03

03

 


BUSINESS FACILITIES

 

Head office Address

 

Owned / Rented

Area (approx)

Shop # 7 & 9, Rahima Palace, Baba-e-Urdu Road, Near Moin Steel Market, M. A. Jinnah Road, Karachi. 

Stated to be owned

300 Sq. Ft.

Factory Address

Owned / Rented

Area (approx)

N/A

Warehouse Address

Owned / Rented

Area (approx)

Same as above

 

 

MARKET REPUTATION

 

Several Wholesalers and a player in the same line of business were contacted to get a feedback about KSC, its products and sponsors. All the feedback were 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

A.S. Trader

Karachi

Retailers of Bearing Steel, Die Steel, Carbon Steel Round & Flat

Undetermined

 

 

BUSINESS PERFORMANCE

 

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

 

 

INTERVIEW & REPORTER COMMENTS

 

Contact person

Sheikh Muhammad Amin

Position

Proprietor

Comments

Sheikh Muhammad Amin confirmed business operations and business information however; he declined to share financial information.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.48

UK Pound

1

Rs.99.66

Euro

1

Rs.83.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.