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Report Date : |
16.01.2014 |
IDENTIFICATION DETAILS
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Name : |
MUGHAL IRON AND STEEL INDUSTRIES LIMITED (MISIL) |
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Registered Office : |
41- Peco Road, Badami Bagh, Lahore, |
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Country : |
Pakistan |
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Date of Incorporation : |
16.02.2010 |
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Com. Reg. No.: |
0071627 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturer of Girders, T-Iron, Iron Angles and Iron Bars, Billets, Machinery and Equipments and importer of raw material and machinery as well. |
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No. of Employees : |
500 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
MUGHAL IRON AND STEEL
INDUSTRIES LIMITED (MISIL)
|
Business Name |
Mughal Iron and
Steel Industries Limited (MISIL) |
|
Address |
Head office/Registered
office Address: 41- Peco Road, Badami Bagh, Lahore, Pakistan Factory Address: 17-KM Sheikhupura Road, Lahore, Pakistan Corporate Address: 90-D National Homes, New Muslim Town, Lahore, Pakistan |
|
Telephone |
(0092) (42) 111 000 007, 37288410 |
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Fax |
(0092) (42) 37970326, 37610160, 37281076 |
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Mobile |
(0092) (300) 8457778 |
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Website |
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Business activities |
Manufacturer of Girders, T-Iron, Iron Angles and Iron Bars, Billets, Machinery and Equipments and importer of raw material and machinery as well. |
Registry Details
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CRO Registration Number |
0071627 |
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Date of Registration |
February 16, 2010 |
Other registry &
certification details:
|
Current Legal Form |
Public Limited Company |
|
National Tax Registration Number |
3533975-6 |
|
Date of Registration |
March 20, 2010 |
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GST Registration Number |
0306732601282 |
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Date of Registration & Expiry |
Undetermined |
|
Chamber of Commerce & Industry |
Lahore Chamber of Commerce and Industry |
|
Date of Registration |
Undetermined |
|
ISO Certification |
None |
|
Date of Registration |
N/A |
|
Other certifications |
None |
|
Date of Registration |
N/A |
Capital
|
Type |
No. of Shares |
Par Value |
Total Value |
|
Authorized |
150,000,000 |
RS. 10/- |
Rs. 1,500,000,000/- |
|
Issued, Subscribed & Paid-Up |
7,329,943 |
RS. 10/- |
Rs. 73,299,430/- |
History
|
Who started |
Mr. Mirza Javaid Iqbal |
|
When started |
February 16, 2010 |
|
Change in management |
None |
|
Year of change |
N/A |
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Change in legal status |
None |
|
Year of change |
N/A |
|
Change in business name |
None |
|
Year of change |
N/A |
|
Name |
Number of Shares |
Nationality |
Appointment Date
(Last) |
|
Mr. Khurram Javaid |
125 |
Pakistani |
06-06-2011 |
|
Mr. Jamshed Iqbal |
2,339,680 |
Pakistani |
31-10-2010 |
|
Mr. M. Mubeen Bin Tariq Mughal |
2,523,730 |
Pakistani |
11-03-2013 |
|
Other share holder |
|
|
Name of Share holder |
Number of Shares |
|
Mr. Mirza Javaid Iqbal |
2,466,408 |
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Total |
7,329,943 |
|
Name |
Position in organization |
Qualification |
Years in employment |
|
Mr. Mirza Javaid Iqbal |
CEO/Director |
Not Provided |
3 Years approximately |
|
Mr. Khurram Javaid |
Director |
Not Provided |
2 Years approximately |
|
Mr. Jamshed Iqbal |
Director |
Not Provided |
3 Years approximately |
|
Mr. M. Mubeen Bin Tariq Mughal |
Director |
Not Provided |
7 months |
|
Statutory offices |
|
|
Statutory
Auditors |
Ernst & Young
Ford Rhodes Sidat Hyder & Co. Chartered Accountants |
|
Legal
Advisory Services |
Butt & Co Law Associates |
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Bank name |
Approved financing
limits |
|
MCB Bank Limited |
1,793,000,000 |
|
Bank Alfalah Limited |
1,350,000,000 |
|
Soneri Bank Limited |
600,000,000 |
|
Bank Islami Pakistan Ltd |
250,000,000 |
|
Trust Investment Bank Limited |
240,000,000 |
The primary focus of the MISIL is manufacturing of Girders, T iron, Iron angles and Iron Bars, it is considered as one of the largest iron and steel product producer in Pakistan.
Purchases (Incl.
Imports)
|
Imports from |
India, South Africa, Canada, United State of America, Belgium, China |
|
Importing terms |
LC Basis |
|
Local (%) |
30% |
|
Local buying terms |
Cash & Credit of 30-60 |
Sales (Incl. Exports)
|
Exports to |
Afghanistan |
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Exporting terms |
LC/DA Basis |
|
Local (%) |
10% |
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Local selling terms |
CASH |
History of the Mughal
Group
With a history of over 50 years of excellence to its credit, Mughal Steel is one of the leading industries of Pakistan in the steel and iron sector. The company was incepted in the early 1950's with a purpose to uplift trade, contribute to national economy and ensure industrial growth of the country.
Mughal Group of Industries, the prestige which spreads over 55 Acres in the suburbs of Lahore, is the only plant of its kind in Pakistan. A force to be reckoned with- it is manufacturers of quality steel products with an installed capacity of 500,000 tons annually. The group is involved in multidimensional activities from making billets of Mild Steel, Spring Steel, Low Alloys, High Alloys and above all Stainless Steel to Deformed bar, Re-bar, Cold Twisted Rebar and a huge range of Sections such as I.Beams, L.Sections, C.Section, H.Beam, T.Bar etc. in the downstream industry.
Competitive
Advantages
Over the years Mughal Steel has emerged as a thriving progressive steel enterprise due to its ability to transform itself rapidly to meet the challenges of a highly competitive global economy, combining its People, Technology, Management Systems and Market Opportunities.
Mughal Steel is processing better knowledge and Management initiatives to shift focus from creating new physical assets utilizing them with ingenuity and a sturdy business sense. Constant modernization, introduction of state-of-the-art technology and being manned by the highly efficient and dynamic team of employees, has enabled the group to stay ahead in the industry and successfully meet the expectations of all customers.
The Group is committed to conduct its activities in a socially, ethically and environmentally responsible manner and to achieve the highest professional standards. Mughal Steel endeavors to set the highest standards in corporate ethics for serving the society.
Melting
A technological blend of Electric Arc Furnaces, from world's renowned manufacturer such as ABB, GEC etc, and Electric Induction Furnaces is used as a basic steel making route; with high quality ISRI designed scrap as input. The infrastructure empowers Mughal Steel with a capacity of making 200,000 tons of Mild Steel and Carbon Steel Billets annually.
Continuous Casting
(C.C.M)
The two standard continuous caster is equipped with soft secondary cooling and other special features for the production of 80x80mm, and 150x150mm square billets of steel. Presenting more choices to the customer.
Bar Re-Rolling Mills
With state of the art facilities, the re-bar and de-bar re-rolling mills started producing bars in 1986 through prime quality billets produced from PSMCK for internationally renowned producers worldwide. The mills have and installed capacity for 180,000 tons annually to produce Deformed and Reinforced bar and Cold Twisted Rebar (TOR) in conformance with ASTM A 615 G-40 & G-60, BS 4449 and other international standards of BS, ASHTO and DIN.
Foundry Shop
Foundry Shop In our well equipped foundry shop mostly Green Sand and CO2 processes are utilized to make intricate varies from few kgs to 25,000kgs.
Mughal Ferros
In surge to serve our country, well bestowed with rich minerals, the group signed a contract with the world's renowned Steel Giant MCC BERIS to transfer the technology along with supply of the Ferro Alloys plant on turn-key basis worth around Rs.700 million. This capital investment holds a golden crown to Mughal Steel capable of converting the country's rich deposits of Manganese and Ferro Chrome.
The plant is designed to produce 35000 tons of finished Ferro Alloys annually. This is the first plant of its kind in Pakistan.
Premium Quality
Product Range
Steel Bars
Deformed bars, Reinforced bars and TOR steel bars of G-40, G-60 and G-75 having size range from 6mm to 50mm dia are produced by prime quality steel billets. Samples of these bars are regularly checked during hot-rolling process to ensure that shape and size correspond with the requirements of American and British standards.
Stainless Steel
Mughal Steel has taken the lead in producing stainless steel for the first time in Pakistan. Our in-house fixture allows us to come up with 200, 300 and 400 series of Stainless Steel in 80mm/sq, 100mm/sq, 130mm/sq and 150mm/sq billet sizes, which caters the demand of Kitchen-ware, Surgical and other highly sensitive industries.
Stainless Steel
Sheets
In state of the art hot and cold sheet re-rolling mills factory, the stainless steel sheets are downsized upto 0.4mm in thickness. Special designated and purpose built, automatic heat controlled re-heating furnaces empower surface quality.
Sections
We provide high quality in accordance with ASTM A 36, industrial sections i.e. I. Beam, T. Section, H. Section, C. Section, L. Section etc. are re-rolled. Our in house re-rolling fixture allows us to re-roll the sections in maximum of 400mm sizes. The clients are urged to contact for customized size range in conformance with other designated grades if required.
Alloy Steel
Mughal Steel has taken an edge over other manufacturers by providing High/ Low Alloys, Spring steel billets in conformance with international standard specifications i.e. ASTM, BSS, AISI, JIS, SAE and DIN etc. Our clientele acknowledges our expertise for developing metals as per their specific needs with a high degree of confidence.
Ferro Alloys
Ferro-Manganese, Ferro Chrome and Silicon Manganese in lumps is made at the only plant of its kind in Pakistan. MTCs are issued to certify the quality of the products for domestic and international customers.
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Nature of
employment |
Current Year |
Previous Year |
|
All Staff |
500 |
650 |
|
Total |
500 |
650 |
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Head office Address Owned / Rented Area (approx) |
41-Peco Road, Badami Bagh, Lahore, Pakistan Owned 500 square yard |
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Factory Address Owned / Rented Area (approx) |
17-KM Sheikhupura Road, Lahore, Pakistan Leased 100 Years 55 Acres approx |
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Corporate Address Owned / Rented Area (approx) |
90-D National Homes, New Muslim Town, Lahore, Pakistan Owned 250 square yard approx |
During the market check of MISIL, we contacted various suppliers / customers / competitor of the subject company. In their opinion subject company is a good player of the industry and enjoys a very good reputation in the market. Market sources further mentioned that MISIL is well known as a profitable business in the industry.
|
Business Name |
City |
Line of Business |
Percentile of
Shareholding |
|
Mughal Steel Metallurgies Corporation Limited |
41 Peco Road, Badami Bagh, Lahore |
Group Company |
Not Provided |
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Mughal Steel Private Limited |
|||
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Mughal Eye Hospital Trust |
The contact person decline to provide financial information.
|
Contact person |
Mr. Pervaiz Iqbal |
|
Position |
Company Secretary |
|
Comments |
We visited and found operational the said business. The said person provided us information but declined to share financial information with us. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.59 |
|
|
1 |
Rs.101.09 |
|
Euro |
1 |
Rs.83.99 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.