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Report Date : |
04.08.2014 |
IDENTIFICATION DETAILS
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Name : |
NEON CHEMICALS |
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Registered Office : |
Suite No. 03, 4th Floor, |
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Country : |
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Date of Incorporation : |
2005 |
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Legal Form : |
Partnership |
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Line of Business : |
Subject is engaged in Import, Indenting & Trading of
Pharmaceutical Raw Materials & Chemicals |
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No. of Employees : |
8 |
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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Pakistan |
B2 |
B1 |
|
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 was 6.6% in 2013, 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. 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 the following two years, 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 3.5% per year from 2008 to 2013.
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 |
NEON CHEMICALS
|
Registered Address |
|
Suite No. 03, 4th Floor, Abrar
Business Center, 25-Main Wahdat Road, Lahore,
Pakistan |
|
Tel # |
92 (42) 37532759, 37532847 |
|
Fax # |
92 (42) 37532847 |
|
Email |
|
a. |
Nature of Business |
Engaged in import, indenting & trading of Pharmaceutical Raw
Materials & Chemicals |
|
b. |
Year Established |
2005 |
|
c. |
National Tax # |
2546294 - 6 |
None
|
Subject Company was established as a Partnership business in 2005 |
|
Names |
Nationality |
Address |
Occupation |
Designation |
|
Mr. Muhammad Iqbal Mr. Naeem Jaura |
Pakistani Pakistani |
Suite No. 03, 4th Floor, Abrar
Business Center, 25-Main Wahdat Road, Lahore Suite No. 03, 4th Floor, Abrar
Business Center, 25-Main Wahdat Road, Lahore |
Business Business |
Managing Partner Partner |
A. Subsidiary
None
B. Associated
Companies
(1) Neon Tech, Pakistan.
(1) Company is engaged in import,
indenting & trading of Pharmaceutical Raw Materials & Chemicals.
(2) It purchases raw materials
against L/C, D/A basis.
(3) It sells against cash /
credit term basis to its local customers.
(4) Its mainly import from China, India, Korea, Singapore, Taiwan & Hong
Kong.
(5) Its major customers are Pharmaceutical
Companies, Chemical Traders & Manufacturers etc.
(6) Subject operates from caption leased office premises situated at
commercial area of Lahore.
(7) Subject employs about 8
persons in its set up.
|
Year |
In Pak Rupees |
|
2012 |
37,000,000/- (Estimated) |
|
(1) United Bank
Limited, Pakistan. (2) Bank Alfalah Limited, Pakistan. (3) Allied Bank
Limited, Pakistan. (4) KASB Bank Limited,
Pakistan. |
Lahore Chamber of Commerce & Industry.(LCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 98.90 |
|
UK Pound |
1 |
Rs. 167.60 |
|
Euro |
1 |
Rs. 132.85 |
Subject Company was established in 2005 and
is engaged in import, indenting & trading
of Pharmaceutical Raw Materials & Chemicals. Trade relations are reported as fair. Subject can be considered for
normal business dealings at usual trade terms and conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.85 |
|
|
1 |
Rs.102.69 |
|
Euro |
1 |
Rs.81.46 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.