MIRA INFORM REPORT

Report No. :	326117
Report Date :	11.06.2015

IDENTIFICATION DETAILS

Name :	MADINA GROUP OF INDUSTRIES

Registered Office :	Gate # 3, Sargodha Road, Faisalabad, Punjab 38850

Country :	Pakistan

Date of Incorporation :	1946

Legal Form :	Group of Companies

Line of Business :	Engaged in diversified business activities including Food Products, Sugar & Commodities

No. of Employees :	700

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 :	Slow but correct
Litigation :	Clear

NOTES:

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ECGC Country Risk Classification List – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Pakistan

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

Business Name

MADINA GROUP OF INDUSTRIES

Full Address

Registered Address

Gate # 3, Sargodha Road, Faisalabad, Punjab 38850, Pakistan

Tel #	92 (41) 8869891 - 96 (6 Lines)
Fax #	92 (41) 8869899

Short Description Of Business

a.	Nature of Business	Engaged in diversified business activities including Food Products, Sugar & Commodities
b.	Group Formed	1946

Group Domestic Branches

(1) 10 km, Faisalabad Road, Chiniot, Punjab, Pakistan.

(2) Plot # A-28 /1-2, North Western Industrial Zone, Port Qasim Authority
Karachi, Sindh, Pakistan.

Legal Status

Subject Group of Companies was formed in 1946

Group’s Management

Names

Nationality

Address

Occupation

Designation

Mr. Mian Mohammad Hanif

Mr. Mian Mohammad Rasheed

Mrs. Mukhtar Begum

Mrs. Asia Hanif

Mr. Mian Mohammad Usman

Pakistani

P-397, Jinnah Colony, Faisalabad, Punjab

Business

Group Chairman & CEO

Group Director

Group Companies

(1) Madina Enterprises Limited, Pakistan

(2) Faisalabad Oil Refinery (Pvt) Limited, Pakistan.

(3) Madina Sugar Mills (Pvt) Limited, Pakistan.

Business Activities

Engaged in diversified business activities including Food Products, Sugar & Commodities

No. of Employees

700

Group Exporting Countries

Mainly to Middle East Countries & Afghanistan

Group Importing Countries

Subject mainly import from Companies belongs to Malaysia, Singapore, Indonesia, Taiwan, Korea & China

Group Sales Volume

Year	In Pak Rupees
2013	1,500,000,000/- (Estimated)

Group Customers

Mainly Private Companies, Buying Agencies, Distribution Companies, Retail & Wholesale Markets of Pakistan

Group Bankers

(1) Citibank N.A., Pakistan.

(2) Habib Metropolitan Bank Limited, Pakistan.

(3) Bank Al-Habib Limited, Pakistan.

(4) Bank Alfalah Limited, Pakistan.

(5) Standard Chartered Bank, Pakistan.

(6) The Bank of Punjab, Pakistan.

Group’s Memberships

Karachi Chamber of Commerce & Industry.

Lahore Chamber of Commerce & Industry.

Faisalabad Chamber of Commerce & Industry.

Pakistan Vanaspati Ghee & Oil Manufacturers Association.

Foreign Exchange Rates

Currency	Unit	Pakistani Rupees
US Dollar	1	Rs. 102.90
UK Pound	1	Rs. 157.00
Euro	1	Rs. 115.50

Comments

Subject Group was established in 1946 and is engaged in diversified business activities including Food Products, Sugar & Commodities. Group reputation is good. 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.63.88
UK Pound	1	Rs.98.47
Euro	1	Rs.72.14

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	TPT

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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