MIRA INFORM REPORT

 

 

Report Date :

26.11.2014

 

IDENTIFICATION DETAILS

 

Name :

FAR EASTERN IMPEX (PVT) LIMITED

 

 

Registered Office :

FEI Centre, G-3, Central Commercial Area, K.C.H.S.U., Shahrah-e-Faisal, Karachi,

 

 

Country :

Pakistan

 

 

Date of Incorporation :

1998

 

 

Com. Reg. No.:

0039297

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture of Food Flavours and ingredients and acting as agents for related equipment and products

 

 

No. of Employees :

50

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Pakistan

B2

B1

 

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 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

 

FAR EASTERN IMPEX (PVT) LIMITED

 

 

Full Address       

 

Registered Address

FEI Centre, G-3, Central Commercial Area, K.C.H.S.U., Shahrah-e-Faisal, Karachi, Pakistan

                       

Tel #

92 (21) 34520127, 34547323

Fax #

92 (21) 34547323

 

 

Short Description Of Business

 

a.

Nature of Business        

The principal activities of the Company are the manufacture of Food Flavours and ingredients and acting as agents for related equipment and products

b.

Year Established

1998

c.

Registration #

0039297

 

 

Branches

 

In Lahore at present

 

 

Auditors

 

Moochhala Gangat & Co.

(Chartered Accountants)

F-4/2, Mustafa Avenue, Behind The Forum, Block 9, Clifton, Karachi, Pakistan

 

 

Legal Status

 

Subject Company was established as a Private Limited Company in 1998

 

 

 

6.

Authorized Capital 

Rs. 200,000,000/- divided into 2,000,000 shares of Rs. 100/- each

 

Issued & Paid up Capital

Rs. 199,400,000/- divided into 1,994,000 shares of Rs. 100/- each

 

Details of Directors

 

Names

Designation

Mr. Noordin Poonawala

 

Mr. Aman Poonawala

 

Mr. Abeezar Poonawala

Chief Executive

 

Director

 

Director

 

 

Shareholders                

 

Names

No. of Shares

 Mr. Noordin Poonawala

 

Mr. Aman Poonawala

 

Mr. Abeezar Poonawala

997,000

 

498,500

 

498,500

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

None

           

B.         Associated Companies

 

Manora Traders, Pakistan.

 

 

Business Activities

 

The principal activities of the Company are the manufacture of Food Flavours and ingredients and acting as agents for related equipment and products.

 

It sells against cash / credit term basis to its local customers.

 

It’s mainly import from European Countries, China, Korea, Singapore, Thailand, Hong Kong & Malaysia.

 

Its major customers are Private Companies, Food Companies, Retail & Wholesale Traders.

 

Subject operates from caption leased office premises of area measuring 1,500 Sq. Feet situated at commercial area of Karachi.

 

Subject employs about 50 persons in its set up.

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2012

2013

365,479,353/-

472,299,925/-

 

 

Trade Suppliers (Foreign)

 

Subject mainly import from Companies belongs to European Countries, China, Korea, Singapore, Thailand, Hong Kong & Malaysia

 

 

Bankers

 

Habib Metropolitan Bank Limited, Pakistan.

Habib Bank Limited, Pakistan.

United Bank Limited, Pakistan.

Bank Alfalah Limited, Pakistan.

 

 

Memberships

 

Karachi Chamber of Commerce & Industry.(KCCI)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 102.75

UK Pound

1

          Rs. 160.75

Euro

1

          Rs. 127.35

 

 

 

Comments

 

Subject Company was established in 1998. The principal activities of the Company are the manufacture of food flavours and ingredients and acting as agents for related equipment and products. 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.61.92

UK Pound

1

Rs.97.12

Euro

1

Rs.76.93

 

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.