MIRA INFORM REPORT

Report Date :

20.02.2014

IDENTIFICATION DETAILS

Name :	M/S. BIN RASHEED COLOR & CHEMICAL MANUFACTURING COMPANY (PVT.) LIMITED (BRC)
Registered Office :	10-Abbot Road, Lahore,
Country :	Pakistan
Financials (as on) :	30.06.2013
Date of Incorporation :	02.08.2007
Com. Reg. No.:	0062400
Legal Form :	Private Limited
Line of Business :	Manufacturer, Trader and Importer of Chemical related products use in Plastic, Paint, Ink and Coating Industry
No. of Employees :	350

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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
Pakistan	B2	B2

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 is under 6%, 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 - the UN Human Development Report estimated poverty in 2011 at almost 50% of the population. Inflation has worsened the situation, climbing from 7.7% in 2007 to almost 12% for 2011, before declining to 10% in 2012. 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 fiscal year 2012, 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% per year from 2008 to 2012. 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

M/S. BIN RASHEED COLOR & CHEMICAL MANUFACTURING COMPANY (PVT.) LIMITED (BRC)

GENERAL INFORMATION

Business Name	M/s. Bin Rasheed Color & Chemical Manufacturing Company (Pvt.) Limited (BRC)
Address	Registered Address: 10-Abbot Road, Lahore, Pakistan
Telephone	+92-42-111-100-000, 36296909
Fax	+92-42-36368877
Mobile	+92-315-8402244
Email	m.manzoor@binrasheed.com
Website	http://www.binrasheed.com/
Business activities	Manufacturer, Trader and Importer of Chemical related products use in Plastic, Paint, Ink and Coating Industry.

Registry Details

CRO Registration Number	0062400
Date of Registration	August 02, 2007

Other registry & certification details:

Current Legal Form	Private Limited
National Tax Registration Number	1691296-9
Date of Registration	August 18, 2003
GST Registration Number	0302390006537
Date of Registration	June 04, 2004
Chamber of Commerce & Industry	Lahore Chamber of Commerce & Industry
Date of Registration	31st October, 2003
ISO Certification	In process
Date of Registration	N/A
Other certifications	None
Date of Registration	N/A

History

Who started	Mr. Moazam Rasheed
When started	2003
Change in management	None
Year of change	N/A
Change in legal status	None
Year of change	N/A
Change in business name	None
Year of change	N/A

Capital

Type	No. of Shares	Par Value	Total Value PKR
Authorized	3,000,000	100	300,000,000
Issued, Subscribed & Paid-Up	2,500,000	100	250,000,000

PRINCIPALS (SPONSORS)

Name	Number of Shares	Nationality	Appointment Date (Last)
Mr. Mozam Rasheed	1,250,000	Pakistani	31-10-2011
Mr. Mudassar Rasheed	1,250,000	Pakistani	31-10-2011

KEY MANAGEMENT

Name	Position in organization	Qualification	Years in employment
Mr. Mudassar Rasheed	Director	Not provided	2004
Ms. Mahvish Manzoor	Manager Planning & Development	Not provided	2004

Statutory offices	Name of service provider
Statutory Auditors	M/s. Riaz & Company Chartered Accountants
Legal Advisory Services	M/s. S.M. Anwar & Company Law Associates

BANKERS

Bank name	Approved financing limits PKR
Habib Metropolitan Bank Limited	263,000,000

DETAILS OF BUSINESS ACTIVITIES

The core business focus of BRC Manufacturing, Trading and Import of Chemical related products use in Plastic, Paint, Ink and Coating Industry.

Products:

POLY PROPYLENE	POLY ETHYLENE
Injection Molding	Injection Molding
Extrusion	Blow Molding
Blown Cast Film Extrusion	Film Extrusion
Injection blow molding
Melt Blown
Multi-Layer Blow Molding
Woven Sacks
Additive Master batches	Black & White Master batches
Color Master batches		Fillers & Modifiers
Special Effect Master batches		Konica Minolta Sensing Products

Purchases (Incl. Imports)

Imports from	Europe, Korea, Japan, China, India, Taiwan
Importing terms	LC basis
Local (%)	None
Local buying terms	N/A

Sales (Incl. Exports)

Exports to	None
Exporting terms	N/A
Local (%)	100%
Local selling terms	Cash & 30 days credit.

Additional information

Company Profile

We at "Bin Rasheed" strongly believe in developing friendship & business relations with our National and International clients. As we know our customers are our valuable chattels, business partners and good-will.

INTRODUCTION OF BUSINESS

Since last three decades, Bin Rasheed has been a group of skilled professionals who are marketing more than 150 different raw materials through courtesy of their trading and state of art quality. Bin Rasheed Color & Chemicals Mfg. Company is dedicated to the manufacturing of color Master batches and an assortment of additives for Plastic Industry under the brand name of "Aristo T" ( Registered ). Quality, Consistency, Value & Services are the basic principals of Bin Rasheed.

OUR SKILLS

Our technical leadership extents from all aspects of customer's satisfaction. Our quality control system is affianced in choosing raw materials like Pigments, Carrier Resins and other Additives, seriously to keep consistency of the plastic property and diverse applications. Its all because of our uncompromising quality and standard that our Master batches can congregate with all customer's demand and satisfaction.

We also provide all sorts of equipments & instruments for color quality control & Research & Development from famous brand Konica Minolta which is & world leader in optical technology thus we are proud to be a color solution provider. Color measurement is vital in every industry from testing of raw materials to development of finish products. Konica Minolta has launched various color Readers, Spectrophotometers & a wide range of equipments for Light & display Measurement which can eliminates all color measurement problems. No problem what may be your product, Konica Minolta can provide you the right solution.

LOCATION OF MANUFACTURING PLANT & SITE MAP

Our manufacturing unit is located at main Industrial Estate in Raiwand having 155000 sq ft land area.

SCOPE OF BUSINESS

Bin Rasheed's Master batches is at the forefront of the advances in colors and additive concentrates and challenging solutions for the plastic applications. Our Master batches are a family of dream colors purposely formulated for the customer's entire satisfaction. Our major application fields are:

NUMBER OF EMPLOYEES

Nature of employment	Current Year	Previous Year
Permanent	350	Undetermined
Total	350	Undetermined

BUSINESS FACILITIES

Head office Address Owned / Rented Area (approx)	10-Abbot Road, Lahore, Pakistan Rented. 1 Kanal
Factory Address Owned / Rented Area (approx)	4-KM Raiwind Road, Lahore, Pakistan 338-A, Sundar Industrial Estate, Lahore, Pakistan 155,000 Sq. ft

MARKET REPUTATION

Three suppliers were contacted to get a feedback about BRC, its products and sponsors. All the feedback was found Satisfactory and no disputes or untoward events including complaints about quality of products were reported/ identified during inquiry.

DETAILS OF RELATED BUSINESSES

Business Name	City	Line of Business	Percentile of Shareholding
Bin Rasheed (Pvt.) Limited	Lahore	Industrial Equipment Services	Not provided
Bin Rasheed Enterprises.	Lahore	Importer	Not provided

BUSINESS PERFORMANCE

Particulars	30-Jun-13	30-Jun-12	% Change
Current assets	622,184,701	544,743,102	14.22
Current liabilities	(210,208,308)	(135,223,415)	55.45
Working capital	411,976,393	409,519,687	0.60
Non-current assets	99,911,012	32,303,989	209.28
Long term liabilities	(230,123,474)	(306,751,922)	(24.98)
Net worth	281,763,931	135,071,754	108.60
Turnover	821,522,699	739,260,583	11.13
Gross Profit	64,515,338	49,984,615	29.07
EBIT	30,574,575	24,742,710	23.57
Profit / (Loss) before tax	23,703,822	20,878,849	13.53
Provision for taxation	(5,682,975)	(4,246,975)	33.81
Profit / (Loss) after tax	18,020,847	16,631,874	8.35
Creditors	148,664,567	72,648,493	104.64
Debtors	129,763,315	98,679,086	31.50
Cash & bank balances	24,459,921	13,836,411	76.78
Growth trend
Sales growth (%)	11.13%
Gross profit growth (%)	29.07%
Solvency
Current ratio	2.96	4.03
Quick ratio	1.89	2.71
Total liabilities to net worth ratio (%)	(156.28)	(327.22)
Profitability
Return on sales (%)	2.19	2.25
Return on net worth (%)	6.40	12.31

INTERVIEW & REPORTER COMMENTS

Contact person	Miss. Mahvish Manzoor
Position	Manager Planning & Development
Comments	The said person provided us all the information and confirmed business operations as well.
Observation	The office is well built in a commercial area of Lahore city. The company is registered with Lahore Chamber of Commerce and industry. The contact person had good knowledge of the company and the industry. The company is still in the process of obtaining ISO certification and will get it in near future.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.12
UK Pound	1	Rs.103.93
Euro	1	Rs.85.17

INFORMATION DETAILS

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%)

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.