MIRA INFORM REPORT

 

 

Report No. :

330790

Report Date :

11.07.2015

 

IDENTIFICATION DETAILS

 

Name :

SHEIKH OF SIALKOT (PRIVATE) LIMITED

 

 

Registered Office :

9th K.M., Adda, Daska Road, Sialkot

 

 

Country :

Pakistan

 

 

Year of Establishment :

1990

 

 

Com. Reg. No.:

0022074

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture & Marketing of Leather Garments, Sports Goods & Leather Products.

 

 

No. of Employees :

350

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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-fourth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings, and Pakistan's failure to diversify its exportshas left the country vulnerable to shifts in world demand. Official unemployment was 6.9% in 2014, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Pakistan’s human development continues to lag behind most of the region.. As a result of political and macroeconomic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 to preventa balance of payments crisis, but the IMF ended the Arrangement early because of Pakistan’s failure to implement required reforms. The economy has stabilized, it continues to underperform and foreign investment has not returned to levels seen during themid-2000’s, due to investor concerns related to governance, electricity shortages, , and a slow-down in the global economy. Remittances from overseas workers, averaging more than$1 billion a month, remain a bright spot for Pakistan. After a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to a deficit where it remained through 2014, spurred by higher prices for imported oil and lower prices for exported cotton. In September 2013, after facing balance of payments concerns, Pakistan entered into a three-year, $6.7 billion IMF Extended Fund Facility. The Sharif government has since made modest progress implementing fiscal and energy reforms, and in December 2014 the IMF described Pakistan’s progress as “broadly on track.” Pakistan remains stuck in a low-income, low-growth trap, with growth averaging about 3.5% per year from 2008 to 2014. Pakistan must address long standing issues related to government revenues and the electricity and natural gas sectorsin 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

 

Business Name

SHEIKH OF SIALKOT (PRIVATE) LIMITED

 

 

Full Address       

 

Registered Address

9th K.M., Adda, Daska Road, Sialkot, Pakistan

                       

Tel #

92 (52) 6526241, 3559720, 6556242, +923008611427

Fax #

92 (52) 6526242

 

 

Short Description Of Business

 

a.

Nature of Business       

Engaged in manufacture & marketing of Leather Garments, Sports Goods & Leather Products

b.

Year Established

1990

c.

Registration #

0022074

 

 

Branches

           

None

 

 

Auditors

 

Muhammad Ayub & Co.

(Chartered Accountants)

Suit No. 5, 3rd Floor, Mumtaz Centre, 15-A, Queens Road, Lahore, Pakistan

 

 

Legal Status

           

Subject Company was established as a Private Limited Company in 1990

 

 

Capital

 

Authorised Capital    

Rs. 5,000,000/- divided into 50,000 shares of Rs. 100/- each

Issued & Paid up Capital

Rs. 4,083,300/- divided into 40,833 shares of Rs. 100/- each

 

 

Details of Chief Executive / Directors

 

Names

 

Nationality

Address

Occupation

Designation

Mr. Sheikh Imjaz Latif

 

 

 

Mr. Sheikh Ansar Latif

Pakistani

 

 

 

 

Pakistani

House No. 2, Zafar Ali Road, Sialkot Cantt, Sialkot

 

House No. 2, Zafar Ali Road, Sialkot Cantt, Sialkot

Business

 

 

 

 

Business

 

Chief Executive

 

 

 

Director

 

 

Shareholders                

 

Names

No. of Shares

Mr. Sheikh Imjaz Latif

 

Mr. Sheikh Ansar Latif

24,500

 

16,333

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

None

           

B.         Associated Companies

- Do -

 

Business Activities

 

Subject Company is engaged in manufacture & marketing of Leather Garments, Sports Goods & Leather Products.

 

Its exporting countries are European Countries & Far East Countries.

 

It’s mainly import from China, Korea, African Countries & European Countries.

 

Payments would be accepted / made through L/C, D/P basis to its trade suppliers / customers globally.

 

Its major customers are Local Buying Agencies, International Buyers, Private Companies etc.

 

Subject operates from caption leased factory premises acquired a covered area of 450,000 Sq. Ft situated at industrial area of Sialkot.

 

Subject employs about 350 persons in its set up.

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2013

520,000,000 (Estimated)

 

 

Leather / Garment Production

 

Leather Production     :     2 million sq. ft. / month

 

Garment Production    :     60,000 jackets / month

 

 

Bankers

 

(1)   Habib Metropolitan Bank Limited, Pakistan.

(2)   Bank Alfalah Limited, Pakistan.

(3)   Meezan Bank Limited, Pakistan. 

(4)   Albaraka Bank (Pakistan) Limited, Pakistan.

 

(Total Mortgage obtained PKR: 214,000,000/-)

 

 

Memberships

 

·         Sialkot Chamber of Commerce & Industry. (SCCI)

·         Federation Pakistan Chamber of Commerce & Industry.(FPCCI)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 102.80

UK Pound

1

          Rs. 159.65

Euro

1

          Rs. 113.50

 

 

Comments

 

Subject Company was established in 1990 and is engaged in manufacture & marketing of Leather Garments, Sports Goods & Leather Products.  Market 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.63.38

UK Pound

1

Rs.97.65

Euro

1

Rs.70.43

 

INFORMATION DETAILS

 

Analysis Done by :

SAN

 

 

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.