MIRA INFORM REPORT

Report Date :

11.12.2014

IDENTIFICATION DETAILS

Name :	AL-AZIZ PAPER MILLS

Registered Office :	Room No. 28, 3^rd Floor, City Tower, Main Market, Gulberg II, Lahore

Country :	Pakistan

Year of Establishments :	1998

Legal Form :	Proprietorship Concern

Line of Business :	engaged in Import, Manufacture & Marketing of Paper & Paper Board.

No of Employees :	76

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

Pakisktan 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 sales 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

AL-AZIZ PAPER MILLS

Full Address

Registered Address

Room No. 28, 3^rd Floor, City Tower, Main Market, Gulberg II, Lahore, Pakistan

Tel #	92 (42) 35770057, 35770058
Fax #	92 (42) 35770059

Short Description Of Business

a.	Nature of Business	Engaged in import, manufacture & marketing of Paper & Paper Board
b.	Year Established	1998

Factory Location

Factory is located at industrial area of Lahore

Legal Status

Subject Concern was established as a Proprietorship business in 1998

etails of Management

Names

Nationality

Address

Occupation

Designation

Mrs. Qaisara Zulfiqar

Pakistani

Room No. 28, 3^rd Floor, City Tower, Main Market, Gulberg II, Lahore

Business

Proprietor

Associated Companies

None

Business Activities

Subject Concern is engaged in import, manufacture & marketing of Paper & Paper Board.

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

It’s mainly import from Brazil, China, Korea, Indonesia, Malaysia & U.A.E.

Its major customers are Distribution Companies, Trading Companies, Private Companies etc.

Subject operates from caption leased office premises situated at commercial area of Lahore.

Subject employs about 76 persons in its set up.

Capacity & Production

Annual production volume is indeterminable as its mainly depend upon the demand / requirements from their domestic customers

Annual Sales Volume

Year	In Pak Rupees
2012	60,000,000/- (Estimated)

Trade Suppliers

(Foreign)

Subject mainly import from Companies belongs to Brazil, China, Korea, Indonesia, Malaysia & U.A.E.

Bankers

(1) United Bank Limited, Pakistan.

(2) Bank Al-Habib Limited, Pakistan.

(3) Askari Bank Limited, Pakistan.

(4) Standard Chartered Bank, Pakistan.

Memberships

· Lahore Chamber of Commerce & Industry.(LCCI)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 101.30
UK Pound	1	Rs. 158.25
Euro	1	Rs. 125.10

Comments

Subject Concern was established in 1998 and is engaged in import, manufacture & marketing of Paper & Paper Board. 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.61.95
UK Pound	1	Rs.97.16
Euro	1	Rs.76.75

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	MNL

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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