MIRA INFORM REPORT

Report Date :

20.12.2014

IDENTIFICATION DETAILS

Name :	AMRELI STEELS LIMITED

Registered Office :	D/89, S.I.T.E., Shershah Road, Opp Shaheen Hotel, Karachi

Country :	Pakistan

Financials (as on) :	30.06.2014

Year of Establishments :	1996

Com. Reg. No.:	0012534

Legal Form :	Non-Listed Public Limited Company

Line of Business :	Manufacturers of Steel Reinforcement Bars & Steel Products Subject product ranges includes: · Xtreme Bars G-500W · Deformed Bars G-60

No of Employees :	460

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

AMRELI STEELS LIMITED

Full Address

Registered Address & Factory

D/89, S.I.T.E., Shershah Road, Opp Shaheen Hotel, Karachi, Pakistan

Tel #	92 (21) 32561150 - 54 (5 Lines)
Fax #	92 (21) 32561964
Website	www.amrelisteels.com

Short Description Of Business

a.	Nature of Business	Manufacturers of Steel Reinforcement Bars & Steel Products in Pakistan
b.	Year Established	1996
c.	Registration #	0012534

Branches

In Lahore & Rawalpindi

Auditors

Ernst & Young Ford Rhodes Sidat Hyder

(Chartered Accountants)

Legal Status

Subject Company was established as a Private Limited Company in 1996. In 2009 its legal status was changed to Non-Listed Public Limited Company

Authorized Capital	Rs. 3,500,000,000/- divided into 350,000,000 shares of Rs. 10/- each
Issued & Paid up Capital	Rs. 2,227,585,700 divided into 222,758,570 shares of Rs. 10/- each

Details of Directors

Names

Occupation

Mr. Abbas Akberali

Mr. Zoeb Salemwala

Mr. Shayan Akberali

Chief Executive

Director

Shareholders

Names

No. of Shares

Mr. Abbas Akberali

Mr. Shayan Akberali

Mr. Hadi Akberali

Mr. Ghulam Abbas Jumani

Mr. Taha Kissat

Mr. Saifuddin Abbas

Vortex Investment, Dubai, U.A.E.

Mrs. Kinza Shayan

Mr. Zoeb Salemwala

Mr. Salsabil Akberali

91,294,723

35,697,840

37,419,212

15,003,586

5,916,552

17,994,257

16,818,535

1,746,383

500

866,982

Associated Companies

(1) Fatemi Wires, Pakistan.

(2) Steel Centre, Pakistan.

Business Activities

Manufacturers of Steel Reinforcement Bars & Steel Products in Pakistan

Product Details

· Xtreme Bars G-500W

· Deformed Bars G-60

Number of Employees

460

Plant Capacity & Actual Production

Approximately 100,000 - 250,000 Metric Tons per annum

Annual Sales Turnover

Years

In Pak Rupees

2013

2014

10,621,857,713/-

11,962,146,367/-

Customers

Mainly Trading Companies, Dealers, Private Companies, Government Corporations etc

Bankers

· NIB Bank Limited, Pakistan.

· Bank Al-Falah Limited, Pakistan.

· Faysal Bank Limited, Pakistan.

· Habib Bank Limited, Pakistan.

· Soneri Bank Limited, Pakistan.

· The Bank of Khyber, Pakistan.

· Dubai Islamic Bank, Pakistan.

· Habib Metropolitan Bank Limited, Pakistan.

· Askari Bank Limited, Pakistan.

· Summit Bank Limited, Pakistan.

(Total mortgage obtained from banks provided above is PKR 7,719,306,200/-)

Memberships

· Karachi Chamber of Commerce & Industry.(KCCI)

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

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 100.75
UK Pound	1	Rs. 157.00
Euro	1	Rs. 124.00

Comments

Subject Company was established in 1996 and is engaged in manufacture of Steel Reinforcement Bars, Steel Products. Market reputation is good. Directors are reported as qualified & experienced businessmen. 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.63.07
UK Pound	1	Rs.98.73
Euro	1	Rs.77.46

INFORMATION DETAILS

Analysis Done by :	KAR

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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