MIRA INFORM REPORT

 

 

Report Date :

02.01.2014

 

IDENTIFICATION DETAILS

 

Name :

S F TRADERS (SFT)

 

 

Registered Office :

1-B, 3rd North Street Phase-I, D.H.A, Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2010

 

 

Year of Establishments:

1980

 

 

Legal Form :

Proprietorship Concern

 

 

Line of Business :

Importer & Indenting of Leather Chemicals

 

 

No. of Employees :

08

 

 

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 :

Slow but Correct  

 

 

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

 

 


GENERAL INFORMATION

 

Business Name

S F Traders (SFT)

Address

Head Office Address:

1-B, 3rd North Street Phase-I, D.H.A, Karachi.

Inquiry address:

1/LY-21 Fakir Mohammed Dura Khan Road lyari Quarters Karachi.

Telephone

(+92) (21) 35381288

0300-2786537- Mr. Mohammad Shoeb

Fax

(+92) (21) 35888260

Email

sft786@hotmail.com

Website

None

Business activities

Indenting of Leather Chemicals 

 

 

Registry Details

 

SFT is a proprietorship concern, registration with any regulatory body is not mandatory.

 

CRO Registration Number

 

N/A

 

Date of Registration

 

Other registry & certification details:

Current Legal Form

Proprietorship 

National Tax Registration Number

0703493-8

Date of Registration

May 26, 1996

GST Registration Number

1100280051946

Date of Registration

February 19, 2003

Chamber of Commerce & Industry

Karachi Chamber of Commerce & Industries

ISO Certification

None

Other certifications

None

 

 

Capital

 

Type

No. of Shares

Par Value

Total Value

Authorized

 

N/A

 

Issued, Subscribed & Paid-Up

 


History

 

Who started

Mr. Mohammed Shoeb

When started

1980

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

 

 

PRINCIPALS

(SPONSORS)

 

Name

Nationality

Mr. Mohammed Shoeb

Pakistani

 

 

KEY MANAGEMENT

 

Name

 

Position in organization

Qualification

Years in employment

Mr. Mohammed Shoeb

Proprietor

Graduate

Since 1980

Miss. Zarmin Shah

Manager

Graduate

05 years

 

Statutory offices

Name of service provider

Statutory Auditors

Not Appointed

Legal Advisory Services

Not Appointed

 

 

BANKERS

 

Bank name

Approved financing limits

Habib Bank Ltd 

Depository relation

NIB Bank Ltd 

Depository relation

 

 

DETAILS OF BUSINESS ACTIVITIES

 

The core business focus of SFT is Importer & Indenting of Leather Chemicals. SFT import chemicals from China & Spain and further plan to import from India and sell in Local markets of Pakistan. The Proprietor himself possess good knowledge of the business and is running the business successfully in Pakistan, as well the proprietor has a very good relation with the foreign vendors.                       

 

Purchases (Incl. Imports)

Imports from

Spain and China

Importing terms

Contract Basis

Local (%)

None

Local buying terms

N/A

 

Sales (Incl. Exports)

Exports to

None

Exporting terms

N/A

Local (%)

100 (Sindh-Punjab)

Local selling terms

Cash and Credit of 30 Days

 

 

NUMBER OF EMPLOYEES

 

Nature of employment

Current Year

Previous Year

Permanent

08

08

Total

08

08

 

 

BUSINESS FACILITIES

 

Head office Address

Owned / Rented

Area (approx)

1-B, 3rd North Street Phase-I, D.H.A, Karachi.

Owned

1000 sq.yards

Godown Address

Owned / Rented

Area (approx)

1/LY-21 Fakir Mohammed Dura Khan Road lyari Quarters Karachi.

Owned

800 sq. yards

 

MARKET REPUTATION

 

Three buyers were contacted to get a feedback about SFT, 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

None

 

 

BUSINESS PERFORMANCE

 

Particulars

30-Jun-10

 

 

Current assets

2,472,668

Current liabilities

(1,670,200)

Working capital

802,468

 

 

Non-current assets

1,550,700

Long term liabilities

-

Net worth

2,353,168

 

 

Creditors

1,670,200

Cash & bank balances

502,168

 

 

 

 

Solvency

 

Current ratio

1.48

Quick ratio

1.48

Total liabilities to net worth ratio (%)

70.98

 

 

INTERVIEW & REPORTER COMMENTS

 

Contact person

Mr. Mohammed Shoeb

Position

Proprietor 

Contact Person Comments

Mr. Mohammed Shoeb confirmed business operations and business information however; he refused to share financial information.    

Analyst’s Observations/ comments

i)                    The inquiry address is the godown address, the contact person has shifted his head office to the new address because of the law and order situation at the inquiry address.

ii)                   The office was comprised of four air-conditioned rooms, with two computers and one laptop and well decorated furniture.

iii)                  Three to four employees were present in the office.

iv)                  Samples of Chemical were observed at site.

v)                    During the interview we observed that Mr. Mohammed Shoeb had Good knowledge of leather industry.  

vi)                  At the time of visit office staff was busy in their respective work.   

vii)              Office is located in a residential area.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.93

UK Pound

1

Rs.102.39

Euro

1

Rs.85.12

 

INFORMATION DETAILS

 

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%)

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.