MIRA INFORM REPORT

Report Date :

29.05.2014

IDENTIFICATION DETAILS

Name :	RK INTERNATIONAL

Registered Office :	P-197, New Grain Market (Ghalla Mandi), Dijkot Road, Faisalabad

Country :	Pakistan

Year of Establishment :	1975

Legal Form :	Partnership Business

Line of Business :	Import, Export and Trading of Spices, Food Grains and Edible Nuts

No. of Employees :	8

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 – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Pakistan

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

Business Name

RK INTERNATIONAL

Full Address

Registered Address

P-197, New Grain Market (Ghalla Mandi), Dijkot Road, Faisalabad, Pakistan

Tel #	92 (41) 2416075, 2416076, 2416077
Fax #	92 (41) 2637151

Short Description Of Business

a.	Nature of Business	Import, Export & Trading of Spices, Food Grains & Edible Nuts
b.	Year Established	1975

Branches

None

Legal Status

Subject Company was established as a Partnership business in 1975

Details of Management

Names

Nationality

Address

Occupation

Designation

Mr. Ilyas Bhallah

Mr. Rizwan Ilyas Bhallah

Mr. Khizran Ilyas Bhallah

Pakistani

P-197, New Grain Market (Ghalla Mandi), Dijkot Road, Faisalabad

Business

Managing Partner

Partner

Associated Companies

None

Business Activities

Subject Company is engaged in import, export & trading of Spices, Food Grains & Edible Nuts.

Local sales are mostly on cash / credit term basis to its local customers.

It’s mainly import from China, India, Thailand, Hong Kong, Vietnam, U.A.E., Portugal, Ukraine & Srilanka.

Its major customers are Retail & Wholesale Traders, Commodities markets of Faisalabad.

Subject operates from caption leased shop premises situated at commercial market of Faisalabad.

Subject employs about 8 persons in its set up.

Annual Sales Volume

Year	In Pak Rupees
2012	32,000,000/- (Estimated)

Trade Suppliers (Foreign)

(1) PRAKASH OVERSEAS, INDIA.

(2) ARPIT AGRO INDUSTRIES (PVT) LIMITED, INDIA.

(3) JAISREE IMPEX (PTE) LIMITED, SINGAPORE.

Bankers

(1) MCB Bank Limited, Pakistan.

(2) Faysal Bank Limited, Pakistan.

(3) Habib Bank Limited, Pakistan.

(4) Allied Bank Limited, Pakistan

Memberships

Faisalabad Chamber of Commerce & Industry.(FCCI)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 99.60
UK Pound	1	Rs. 167.75
Euro	1	Rs. 135.75

Comments

Subject Company was established in 1975 and is engaged in import, export & trading business. Overall reputation is normal. Trade relations are reported as fair. Subject can be considered for normal business dealings at usual trade terms and conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.08
UK Pound	1	Rs.99.20
Euro	1	Rs.80.53

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	NIT

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.