MIRA INFORM REPORT

 

 

Report Date :

01.07.2014   

 

IDENTIFICATION DETAILS

 

Name :

MAF HYPERMARKETS PAKISTAN (PVT) LIMITED

 

 

Registered Office :

Fortress Stadium, Lahore Cantt, Lahore,

 

 

Country :

Pakistan

 

 

Date of Incorporation :

2007

 

 

Com. Reg. No.:

0060230

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject Principal business activity is to setup and operate hypermarkets and departmental stores, currently it is operating two MAF retail outlets

 

 

No. of Employees

667

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Slow

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Pakistan

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

Company name and address

 

MAF HYPERMARKETS PAKISTAN (PVT) LIMITED

 

 

Full Address       

 

Registered Address

Fortress Stadium, Lahore Cantt, Lahore, Pakistan

                       

Tel #

92 (42) 36623370, 36623370, 36623357

Fax #

92 (42) 36623399

 

 

Short Description Of Business

 

a.

Nature of Business        

Principal business activity is to setup and operate hypermarkets and departmental stores, currently it is operating two MAF retail outlets in Pakistan i.e. one in Lahore and second in Karachi

b.

Year Established

2007

c.

Registration #

0060230

 

 

Branches

 

            In Karachi at present

 

 

Auditors

 

KPMG Taseer Hadi & Co.

(Chartered Accountants)

Shiekh Sultan Trust Building No. 2, Beaumont Road, Karachi, Pakistan

 

 

Legal Status

 

Subject Company was established as a Private Limited Company in 2007

 

6.

Authorized Capital     

Rs. 1,000,000,000/- divided into 100,000,000 shares of Rs. 10/- each

 

Issued & Paid up Capital

Rs. 499,950,650/- divided into 49,995,065 shares of Rs. 10/- each

 

 

Details of Management

 

Names

Designation

Mr. Frank Louis Witek

 

Mr. Xavier Taffet

Chief Executive

 

Director

 

 

Shareholders                

 

Names                                                   

No. of Shares

Mr. Frank Louis Witek

 

Mr. Xavier Taffet

 

MAF Hypermarkets LLC, U.A.E.

1

 

1

 

49,995,063

 

 

Holding Company

 

(1) MAF Hypermarkets LLC, U.A.E.

 

Business Activities

 

Principal business activity is to setup and operate hypermarkets and departmental stores, currently it is operating two MAF retail outlets in Pakistan i.e. one in Lahore and second in Karachi  

 

 

Number of Employees

 

            667      

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2012

2013

9,669,344,141/-

11,181,005,186/-

 

 

Trade Suppliers (Foreign)

 

Subject mainly import from Companies belongs to European Countries, U.A.E., China, Korea, Singapore & U.K.

 

 

Customers

 

Mainly Private Companies, Individuals etc

 

 

Bankers

           

(1) Habib Bank Limited, Pakistan.

(2) Faysal Bank Limited, Pakistan.

(3) Bank Alfalah Limited, Pakistan.

(4) KASB Bank Limited, Pakistan.

(5) Summit Bank Limited, Pakistan.

(6) Silk Bank Limited, Pakistan.

 

 

Memberships

 

Lahore Chamber of Commerce & Industry.(LCCI)

Karachi Chamber of Commerce & Industry.(KCCI)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 99.20

UK Pound

1

          Rs. 167.65

Euro

1

          Rs. 134.35

Comments

 

Recognized as one of the most active shopping concept developers throughout the region, the Group first introduced the hypermarket model to the Middle East in 1995. Majid Al Futtaim Hypermarkets, offers shoppers the same quality, variety and value-for-money that have made the brand a household name to millions over the world. Hyperstar reputation has been built, above all, on the quality and freshness of the products, customer service and competitive prices. Selling goods with quality choices in food, personal care, communication, leisure, entertainment and household goods while continually meeting the needs of local consumers in 2009, with the ranging from needed to refrigerate food to clothes under one roof, is trendy as shoppers pick specialized stores. Hyperstar’s own retail brands are a significant medium for brand differentiation and customer loyalty, contributing substantially to the organization’s growth in sales.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.09

UK Pound

1

Rs.102.33

Euro

1

Rs.82.01

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.