MIRA INFORM REPORT

 

 

Report No. :

315888

Report Date :

08.04.2015

 

IDENTIFICATION DETAILS

 

Name :

ENGRO EXIMP AGRIPRODUCT (PVT) LIMITED

 

 

Formerly Known As :

ENGRO FOODS SUPPLY CHAIN (PVT) LTD

 

 

Registered Office :

8th Floor, The Harbor Front Building, HC No. 3, Marine Drive, Block 4, Clifton, Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

2013

 

 

Year of Establishment :

2009

 

 

Com. Reg. No.:

0070798

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is engaged in produce, manufacture and trade all kinds of raw processed & prepared food products including agriculture, dairy and farming products

 

 

No. of Employee :

220

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Pakistan

B1

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

 

ENGRO EXIMP AGRIPRODUCT (PVT) LIMITED

 

(FORMERLY: ENGRO FOODS SUPPLY CHAIN (PVT) LTD)

 

 

Full Address       

 

Registered Address

8th Floor, The Harbor Front Building, HC No. 3, Marine Drive, Block 4, Clifton, Karachi, Pakistan

                       

Tel #

92 (21) 35296000 - 10 (10 Lines)

Fax #

92 (21) 35295961

 

 

Short Description Of Business

 

a.

Nature of Business      

The principal activity of the Company is to produce, manufacture and trade all kinds of raw processed & prepared food products including agriculture, dairy and farming products

b.

Year Established

2009

c.

Registration #

0070798

 

 

Plant Location

 

The Company has set up a rice processing plant in District Sheikhupura

 

 

Auditors

 

A.F. Ferguson & Co.

(Chartered Accountants)

 

 

Legal Status

 

Subject Company was established as a Private Limited Company in 2009

 

 

 

6.

Authorized Capital    

Rs. 2,000,000,000/- divided into 200,000,000 shares of Rs. 10/- each

 

Issued & Paid up Capital

Rs. 1,900,000,000/- divided into 190,000,000 shares of Rs. 10/- each

 

 

Details of Directors

 

Names

Designation

Mr. Abdul Samad Khan

 

Mr. Muhammad Aliuddin Ansari

 

Mr. Shamsuddin Ahmad Shaikh

 

Mr. Shahzada Dawood

Chief Executive

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Names

No. of Shares

Mr. Abdul Samad Khan

 

Mr. Muhammad Aliuddin Ansari

 

Mr. Shamsuddin Ahmad Shaikh

 

Mr. Shahzada Dawood

 

Engro Eximp (Pvt.) Limited, Pakistan

1

 

1

 

1

 

1

 

189,999,996

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Holding Company

 

(1) Engro Eximp (Pvt) Limited, Pakistan                                            

           

B.         Associated Companies

 

(1) Engro Vopak Terminal Limited, Pakistan.

(2) Engro Fertilizers Limited, Pakistan.

(3) Engro Foods Limited, Pakistan.

(4) Engro Innovation Automation (Private) Limited, Pakistan.

(5) Engro Avanceon Limited, Pakistan.

(6) Engro PowerGen Limited, Pakistan.

(7) Engro Energy (Private) Limited, Pakistan.

(8) Engro Management Services (Private) Limited, Pakistan.

(9) Engro Corporation Limited, Pakistan.

 

 

Business Activities

 

The principal activity of the Company is to produce, manufacture and trade all kinds of raw processed & prepared food products including agriculture, dairy and farming products.

 

It purchases raw material against L/C, D/P basis.

 

It sells against Cash term basis to its domestic customers.

 

It’s mainly import from China, Korea, Malaysia, Korea, Taiwan, Japan & European Countries.

 

Its major customers are Buying Agencies, Distribution Companies, Retail & Wholesale markets in major cities of Pakistan.

 

Subject operates from caption leased office premises situated at commercial area of Karachi.

 

Subject employs about 220 persons in its set up.

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2012

2013

3,341,444,000/-

5,992,708,000/-

 

 

Annual Production Volume

           

Annual production volume is indeterminable as it mainly depends upon the demand / requirements from their domestic customers

 

 

Trade Suppliers (Foreign)

 

Various international belongs to China, Korea, Malaysia, Korea, Taiwan, Japan & European Countries

 

Bankers

           

(1) Bank Alfalah Limited, Pakistan.

(2) National Bank Of Pakistan.

(3) JS Bank Limited, Pakistan.

(4) MCB Bank Limited, Pakistan.

(5) Soneri Bank Limited, Pakistan.

(6) The Bank Of Punjab, Pakistan.

(7) United Bank Limited, Pakistan.

(8) Habib Bank Limited, Pakistan.

 

 

Memberships

 

·         KCCI

·         FPCCI

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

         Rs. 102.25

UK Pound

1

         Rs. 152.10

Euro

1

         Rs. 111.85

 

 

Comments

 

Subject Company was established in 2009. The principal activity of the Company is to produce, manufacture and trade all kinds of raw processed & prepared food products including agriculture, dairy and farming products. Overall reputation is satisfactory. 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.62.33

UK Pound

1

Rs.92.83

Euro

1

Rs.68.08

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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%)

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