MIRA INFORM REPORT

 

 

Report Date :

25.08.2014              

 

IDENTIFICATION DETAILS

 

Name :

DADA SONS (PRIVATE) LIMITED

 

 

Registered Office :

218 - 219, Cotton Exchange Building, I.I. Chundrigar Road, Karachi

 

 

Country :

Pakistan

 

 

Date of Incorporation :

1959

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Involved in the export and import business of raw cotton, cotton waste, cotton linters and other trades

 

 

No. of Employees :

130

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Pakistan

B2

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

 

Business Name

 

DADA SONS (PRIVATE) LIMITED          

                       

 

Full Address       

 

Registered Address

218 - 219, Cotton Exchange Building, I.I. Chundrigar Road, Karachi, Pakistan

                       

Tel #

92 (21) 32411548, 32144549

Fax #

92 (21) 32416530

Email

dada@cyber.net.pk

 

 

Short Description Of Business

 

a.

Nature of Business        

Involved in the export and import business of raw cotton, cotton waste, cotton linters and other trades

b.

Year Established

1959

c.

Registration #

0001049

 

 

Branches

           

In Lahore & Multan

 

 

Auditors

 

Salahuddin Kamal

(Chartered Accoutants)

D-8, First Floor, Jason Luxury Appartment, Block-03, Clifton, Karachi, Pakistan

 

 

Legal Status

           

Subject Company was established as a Private Limited Company in 1959

 

Authorized Capital

Rs. 5,000,000/- divided into 50,000 shares of Rs. 100/- each

Issued & Paid up Capital

Rs. 4,000,000/- divided into 40,000 shares of Rs. 100/- each

 

 

Details of Directors

 

Names

Nationality

Address

Occupation

Designation

Mr. Haji Abdul Shakoor Dada

 

Mr. Haji Abdul Ghaffar Dada

 

Mr. Atif H.A. Shakoor Dada

 

Mr. Naila A. Ghaffar

 

 

Mr. Ismail Haji Ibrahim

 

Mrs. Hajiani Farida Haji Farooq

 

Mrs. Hajiani Feroza Haji Shamim

Pakistani

 

 

Pakistani

 

 

Pakistani

 

 

Pakistani

 

 

Pakistani

 

 

Pakistani

 

 

Pakistani

126-127, K.M.C.H.S., Karachi

 

126-127, K.M.C.H.S., Karachi

 

126-127, K.M.C.H.S., Karachi

 

126-127, K.M.C.H.S., Karachi

 

126-127, K.M.C.H.S., Karachi

 

126-127, K.M.C.H.S., Karachi

 

126-127, K.M.C.H.S., Karachi

Business

 

 

Business

 

 

Business

 

 

Business

 

 

Business

 

 

Business

 

 

Business

Chief Executive

 

Director

 

 

Director

 

 

Director

 

 

Director

 

 

Director

 

 

Director

 

 

Shareholders                

 

Names

No. of Shares

Mrs. Hajiani Shakoor Dada                          

 

Mr. Atif H.A. Shakoor Dada              

 

Mrs. Mariam H.A. Shakoor              

 

Mr. Mudassir H.A. Shakoor

 

Mrs. Samna

 

Mr. Haji A. Ghaffar Dada

 

Mrs. Naila Haji Ghaffar

 

Mr. A. Ghani H.A. Ghaffar

 

Mr. A. Basit H.A. Ghaffar

 

Mrs. Zulekha H.A. Ghaffar

 

Mrs. Hajiani Rahima Bai

 

Mr. Ismail Haji Ibrahim

 

Mrs. Hajiani Fatima Bai

 

Mr. Ishaque Haji Ibrahim

 

Mr. Yaqoob Haji Ibrahim

 

Mrs. Hajiani Farida Bai

 

Miss Saima H. Farooq           

 

Miss Aisha H. Farooq

 

Miss Asra H. Farooq

 

Mrs. Hajiani Feroza Bai

 

Mr. Faisal Shamim

 

Mr. Fawwad Shamim

4,881

 

1,695

 

1,952

 

1,695

 

752

 

4,881

 

1,952

 

1,796

 

1,796

 

550

 

5,411

 

976

 

1,285

 

976

 

976

 

1,285

 

976

 

976

 

976

 

1,285

 

1,464

 

1,464

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

None                                                                      

           

B.         Associated Companies

 

(1) Star Cotton Corp. (Pvt.) Ltd, Pakistan.

 

 


Business Activities

 

(1) Subject Company is involved in the export and import business of raw cotton, cotton waste, cotton linters and other trades.

 

(2) It purchases against L/C, D/A basis.

 

(3) It sells against cash / credit term basis to its local customers.

 

(3) Its mainly import from China, India, Thailand, Malaysia & Korea.

 

(4) Its major customers are Traders, Buying Agencies, Millers located at all major cities of Pakistan.

 

(5) Subject operates from caption leased office premises of area measuring 1,300 Sq.ft. situated at commercial area of Karachi.

 

(6) Subject employs about 130 persons in its set up.

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2012

320,000,000/- (Estimated)

 

 

Bankers

 

(1)     National Bank of Pakistan, Nicol Road Branch, Karachi, Pakistan.

 

(2)     Bank Al-Habib Ltd., I. I. Chundrigar Road, Main Branch, Karachi, Pakistan.

 

(3)     Al-Baraka Bank Pakistan Limited, Main Branch, Karachi, Pakistan.

 

 

Memberships

 

·         Karachi Cotton Association.(KCA)

·         Karachi Chamber of Commerce & Industry.(KCCI)

·         Federation Pakistan Chamber of Commerce & Industry.(FPCCI)

 

 


Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 100.25

UK Pound

1

          Rs. 166.25

Euro

1

          Rs. 133.25

 

 

Company’s Profile

 

Dada Sons (Private) Limited, Karachi, Pakistan, is one of the oldest cotton trading company in Pakistan, incorporated in the 1950s. It has more than 50 years of experience in the cotton ginning and cotton export business. The company was founded by the company’s former chairman late Mr. Aba Umer Dada on the principles of honesty and hard work. He was a self made and renowned businessman of Pakistan with full knowledge of cotton, grains and other trades. Mr. Abdul Shakoor Dada, the eldest son of late Mr. Aba Umer Dada is now holding chairmanship of the company since 1989. He joined the company after his graduation in 1964 and has business experience, in the field of cotton, of more than 35 years. Mr. Abdul Shakoor Dada has also served the Karachi Cotton Association as Chairman, Vice Chairman and Director, several times.

 

 

Comments

 

Subject Company was established in 1959 and is engaged in export and import business of raw cotton, cotton waste, cotton linters and other trades. All the directors are reported as resourceful and experienced businessmen. Market reputation is good. Trade relations are reported as fair. The Company can be considered for normal business dealings at usual trade terms and conditions.

       


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.43

UK Pound

1

Rs.100.23

Euro

1

Rs.80.35

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.