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Report No. : |
327009 |
|
Report Date : |
17.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
MUGHAL IRON & STEEL INDUSTRIES LIMITED |
|
|
|
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Registered Office : |
41-Peco Road, Badami Bagh, Lahore |
|
|
|
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Country : |
Pakistan |
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|
|
|
Financials (as on) : |
31.03.2015 |
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|
|
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Year of Establishment : |
1940 |
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|
|
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Com. Reg. No.: |
0071627 |
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|
|
|
Legal Form : |
Public Limited Company |
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|
|
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Line of Business : |
Manufacture & Trading of Mild Steel Products. |
|
|
|
|
No. of Employees : |
416 |
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 |
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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-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 |
MUGHAL IRON
& STEEL INDUSTRIES LIMITED |
|
Registered
Address |
|
41-Peco Road, Badami Bagh, Lahore, Pakistan |
|
Tel # |
92 (42) 37970227, 37970226 |
|
Fax # |
92 (42) 37970326 |
|
a. |
Nature of Business |
Engaged in manufacture & trading of
Mild Steel Products |
|
b. |
Year Established |
1940 |
|
c. |
Registration No. |
0071627 |
|
Address |
17 K.M., Sheikhupura Road, Lahore, Pakistan |
|
Tel No. |
92 (42) 37970226, 37970227 |
|
Fax No. |
92 (42) 37970227 |
|
Fazal Mehmood & Co. (Chartered
Accountants) 147-Shadman-1, Lahore, Pakistan |
|
Subject Company was established as a Partnership business in 1940. In
2010 its legal status was changed to Public Limited Company. The Company is
listed on the Karachi & Lahore Stock Exchanges w.e.f April 15, 2015 |
|
Names |
Designation |
|
Mr. Mirza Javaid Iqbal Mr. Khurram Javaid Mr. Syed Salman Ali Shah Mr. Muhammad Mubeen Tariq Mughal Mr. Jamshed Iqbal Mr. Fazeel Bin Tariq Mr. Mateen Jamshed |
Chairman CEO Director Director Director Director Director |
|
Names |
No. of Shares |
|
Mr. Mirza Javaid Iqbal Mr. Khurram Javaid Mr. Fahad Javaid Mr. Muhammad Mubeen Bin Tariq Mughal Mr. Fazeel Bin Tariq Mr. Muhammad Waleed Bin Tariq Mr. Muteen Jamshed Mr. Syed Salman Ali Shah Mr. Jamshed Iqbal |
25,799,905 1,951,960 2,000,000 24,433,140 2,415,000 503,904 500,000 100 24,937,144 |
A. Subsidiary
None
B. Associated Companies
(1)
Mughal Steel Metallurgies Corporation Limited, Pakistan.
(2)
Mughal Energy Limited, Pakistan.
(3)
Indus Steel Mills Corporation Limited, Pakistan.
(4)
Al-Bashir Steel Industries (Pvt) Limited, Pakistan.
(5)
Kalabagh Steel Mills Corporations Limited,
Pakistan.
(6)
Mughal Steel Re-Rolling Industries Limited,
Pakistan.
Subject Company is engaged in manufacture & trading of Mild Steel
Products.
Payments would be made through L/C, D/A, D/P basis.
It sells against Cash / Credit term basis to its domestic customers.
It’s mainly import from Companies belongs to Singapore, Japan, China,
Korea, Singapore, Taiwan. U.K. & European Countries.
Its major customers are Dealers, Construction Companies, Government
Organizations, Engineering Corporations, Cement Industries, Sugar Industries
Subject operates from caption leased office & factory premises
situated at commercial & industrial centers of Lahore.
Subject employs about 416
persons in its set up.
|
Years |
In Pak Rupees |
|
March 31, 2014 March 31, 2015 |
4,111,073,922/- 7,971,967,451/- |
2014 2013
Production at normal capacity in Metric Tonne
- Melting 294,000
78,000
- Rolling 675,000 675,000
Actual production in Metric Tonne
- Melting 46,732 19,845
- Rolling 112,771 36,443
(1)
Bank Alfalah Limited, Pakistan.
(2)
Habib Bank Limited, Pakistan.
(3)
Soneri Bank Limited, Pakistan.
(4)
Bank Islami Pakistan Limited, Pakistan.
(5)
Askari Bank Limited, Pakistan.
(6)
MCB Bank Limited, Pakistan.
(7)
Summit Bank Limited, Pakistan.
(8)
JS Bank Limited, Pakistan.
During the period the company was able to
secure some orders which are expected to be executed during the upcoming periods.
these includes but are not limited to contract for supply of material for
multan metro bus project and tarbela extension-iv project along with various
other contracts with government departments.
·
Lahore Chamber of
Commerce & Industry.
·
Federatiion Pakistan
Chamber of Commerce & Industry.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 102.90 |
|
UK Pound |
1 |
Rs. 157.00 |
|
Euro |
1 |
Rs. 115.50 |
Subject Company was established in 1940 and is engaged in manufacture & marketing of Billet, Ingot for Mild Steel, Carbon Steel, Special Steels and Stainless Steel. Market 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.64.15 |
|
|
1 |
Rs.100.04 |
|
Euro |
1 |
Rs.72.27 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.