MIRA INFORM REPORT

Report Date :

08.12.2014

IDENTIFICATION DETAILS

Name :	KHURRAM GULZAR & CO.

Registered Office :	306-307, 3^rd Floor, Chappal Plaza, Hasrat Mohani Road, Karachi,

Country :	Pakistan

Date of Incorporation :	1995

Legal Form :	Proprietorship

Line of Business :	Import, Indenting & Trading of Textile Chemicals, Dyes & Pigments, Industrial Chemicals

No. of Employees :	10

RATING & COMMENTS

MIRA’s Rating :

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Pakistan

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

Company name and address

KHURRAM GULZAR & CO.

Full Address

Registered Address

306-307, 3^rd Floor, Chappal Plaza, Hasrat Mohani Road, Karachi, Pakistan

Tel #	92 (21) 32410524, 32417293, 32418660
Fax #	92 (21) 32410174
Email	kgulzar@cubexs.net.pk

Short Description Of Business

a.	Nature of Business	Import, Indenting & Trading of Textile Chemicals, Dyes & Pigments, Industrial Chemicals etc
b.	Year Established	1995
c.	National Tax #	0275818 – 7

Branches

2^nd Floor, Bastaki Building, Akhund

Abdul Rehman Street Jodia Bazar,

Karachi, Pakistan

Legal Status

Subject Company was established as a Proprietorship business in 1995

Details of Management

Names

Nationality

Address

Occupation

Designation

Mr. Ejaz Ahmed

Pakistani

306-307, 3^rd Floor, Chappal Plaza, Hasrat Mohani Road, Karachi

Business

Proprietor

Associated Companies

None

Business Activities

Subject Company is engaged in import, indenting & trading of Textile Chemicals, Dyes & Pigments, Industrial Chemicals etc.

Local sales are mostly on cash / credit term basis to its local customers.

It’s mainly import from China, Taiwan, Korea, India, Malaysia, Indonesia, Japan, Thailand & U.A.E.

Its major customers are Textile Manufacturers, Trading Companies etc.

Subject operates from caption leased office premises of area measuring 600 Sq.ft. situated at commercial centers of Karachi.

Subject employs about 10 persons in its set up.

Annual Sales Volume

Year	In Pak Rupees
2013	45,000,000/- (Estimated)

Trade Suppliers (Foreign)

Company mainly import from Companies belongs to China, Taiwan, Korea, India, Malaysia, Indonesia, Japan, Thailand & U.A.E.

Bankers

(1) Bank Alfalah Limited, Pakistan.

(2) MCB Bank Limited, Pakistan.

(3) Habib Bank Limited, Pakistan.

(4) Soneri Bank Limited, Pakistan.

Memberships

Pakistan Chemicals & Dyes Merchants Association (PCDMA)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 102.50
UK Pound	1	Rs. 159.00
Euro	1	Rs. 126.00

Comments

Subject Company was established in 1995 and is engaged in import, indenting & trading business. Overall reputation is normal. 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.61.85
UK Pound	1	Rs.96.73
Euro	1	Rs.76.53

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	NIS

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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