MIRA INFORM REPORT

Report Date :

13.12.2014

IDENTIFICATION DETAILS

Name :	BROTHERS ENTERPRISES (PVT) LIMITED

Registered Office :	106, Anum Estate, Shahrah-e-Faisal, Karachi

Country :	Pakistan

Date of Incorporation :	1989

Com. Reg. No.:	0020763

Legal Form :	Private Limited Company

Line of Business :	Import, Export & Trading of Consumer Food Products, Chemicals & Basmati Rice

No of Employees :	12

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

Business Name

BROTHERS ENTERPRISES (PVT) LIMITED

Full Address

Registered Address

106, Anum Estate, Shahrah-e-Faisal, Karachi, Pakistan

Tel #	92 (21) 34380784, 34380785
Fax #	92 (21) 34382189
Email	bel@cyber.net.pk

Short Description Of Business

a.	Nature of Business	Import, Export & Trading of Consumer Food Products, Chemicals & Basmati Rice
b.	Year Established	1989
c.	Registration #	0020763

Branches

Address	209, Uni Tower, I.I. Chundrigar Road, Karachi, Pakistan
Tel #	92 (21) 32413713, 32416127
Fax #	92 (21) 32413544

Auditors

Rahman Sarfaraz Rahim Iqbal Rafiq

(Chartered Accountants)

115, Sidco Avenue Centre, Din Muhammad Wafai Road, Karachi, Pakistan

Legal Status

Subject Company was established as a Private Limited Company in 1989

Authorized Capital	Rs. 20,000,000/- divided into 200,000 shares of Rs. 100/- each
Issued & Paid up Capital	Rs. 18,000,000/- divided into 180,000 shares of Rs. 100/- each

Details of Directors

Names

Designation

Mr. Muhammad Ahmad

Mrs. Naima Ahmad

Mr. Hafiz M. Tariq

Mr. Faisal Ahmed

Mr. Khalid Rafi

Chief Executive

Director

Shareholders

Names

No of Shares

Mr. Muhammad Ahmad

Mrs. Naima Ahmad

Mr. Hafiz M. Tariq

Mr. Faisal Ahmed

Mr. Khalid Rafi

12,600

5,400

54,000

Associates

A. Subsidiary

None

B. Associated Companies

(1) Tariq & Co., Pakistan.

Business Activities

Import, Export & Trading of Consumer Food Products, Chemicals & Basmati rice

Number of Employees

Annual Sales Volume

Year	In Pak Rupees
2013	60,000,000/- (Estimated)

Trade Suppliers (Foreign)

Subject mainly import from Companies belongs to China, India, Korea, Taiwan & U.A.E.

Customers

Mainly Food Companies, Chemical Companies, Trading Companies

Exports

Export of Basmati Rice to Gulf Countries

Bankers

(1) Habib Bank Limited, Pakistan.

(2) Bank Alfalah Limited, Pakistan.

(3) MCB Bank Limited, Pakistan.

(4) Standard Chartered Bank, Pakistan.

(5) Faysal Bank Limited, Pakistan.

Memberships

Karachi Chamber of Commerce & Industry.(KCCI)

Foreign Exchange Rates

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

Comments

Subject Company was established in 1989 and is engaged in import, export & trading of Consumer Food Products, Chemicals & Basmati Rice. Overall reputation is satisfactory. 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.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs.77.38

INFORMATION DETAILS

Analysis Done by :	SUB

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%)

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.