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Report No. : |
309057 |
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Report Date : |
25.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
EASTERN STEEL INDUSTRIES |
|
|
|
|
Registered Office : |
Mian Muhammad Aslam Road, Link Peco Road, Badami Bagh, Lahore |
|
|
|
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Country : |
Pakistan |
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|
|
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Year of Establishment : |
2005 |
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|
|
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Legal Form : |
Proprietorship Business |
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|
|
|
Line of Business : |
Subject is engaged in import,
manufacture & marketing of Iron & Steel Products. |
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|
|
|
No. of Employee : |
66 |
RATING & COMMENTS
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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 |
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|
|
|
Payment Behaviour : |
No complaints |
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|
|
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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 – 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 |
EASTERN STEEL INDUSTRIES
|
Registered
Address |
|
Mian Muhammad Aslam Road, Link Peco Road, Badami Bagh, Lahore,
Pakistan |
|
Tel # |
92 (42) 37282144 |
|
Fax # |
92 (42) 37282144 |
|
a. |
Nature of Business |
Engaged in
import, manufacture & marketing of Iron & Steel Products |
|
b. |
Year Established |
2005 |
|
Subject Company was established as a Proprietorship business in 2005 |
|
Names |
Nationality |
Address |
Occupation |
Designation |
|
Mr. Mian Tariq Waheed |
Pakistani |
Mian Muhammad
Aslam Road, Link Peco Road, Badami Bagh, Lahore |
Business |
Proprietor |
Subject Company is engaged in import, manufacture & marketing of Iron & Steel Products.
It purchases raw material against L/C, D/P basis.
It sells against Cash term basis to its local customers.
It’s mainly import from China, European Countries, India, Ukraine,
Taiwan, Hong Kong & Korea.
Its major customers are Private Companies, Construction Companies etc
Subject operates from caption leased factory premises situated at industrial area of Lahore.
Subject employs about 66 persons in its set up.
|
Year |
In Pak Rupees |
|
2013 |
100,000,000/- (Estimated) |
Annual production volume is indeterminable as it mainly depend upon the
demand / requirement from their local customers
Subject mainly import from Companies belongs to China, European Countries, India, Ukraine,
Taiwan, Hong Kong & Korea
Meezan Bank Limited,
Pakistan.
Faysal Bank
Limited, Pakistan.
Bank
Alfalah Limited, Pakistan.
Habib Bank
Limited, Pakistan.
·
Lahore Chamber of Commerce & Industry.
·
The Pakistan Steel Re-Rolling Mills Association.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 101.60 |
|
UK Pound |
1 |
Rs. 155.50 |
|
Euro |
1 |
Rs. 115.40 |
Subject Company was
established in 2005 and is engaged in import, manufacture & marketing of
Iron & Steel Products. 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.62.28 |
|
|
1 |
Rs.96.21 |
|
Euro |
1 |
Rs.70.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.