MIRA INFORM REPORT

 

 

Report No. :

314093

Report Date :

28.03.2015

 

IDENTIFICATION DETAILS

 

Name :

WAHEED BROTHERS PAKISTAN (PVT) LIMITED

 

 

Registered Office :

22-N, Industrial Area, Gulberg II, Lahore

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2014

 

 

Year of Establishment :

1983

 

 

Com. Reg. No.:

0010507

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is engaged in the business of import & marketing of tyres, general items of trade, farming and plantation. In March 2009 the Company acquired  on operating lease a restaurant (Ziafat Oriented Cuisine / Yenhui Cuisine

 

 

No. of Employee :

203

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

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

                                   

WAHEED BROTHERS PAKISTAN (PVT) LIMITED

 

 

Full Address       

 

Registered Address

22-N, Industrial Area, Gulberg II, Lahore, Pakistan

                       

Tel

92 (42) 111-900-009

Fax

92 (42) 35711633

Email

contact@waheedbrothers.com

 

            Note:

 

The address “96-B-2, M.M. Alam Road, Gulberg III, Lahore, Pakistan” provided by you was previous address of the Company.

 

 

Short Description Of Business

 

a.

Nature of Business       

The Company is engaged in the business of import & marketing of tyres, general items of trade, farming and plantation. In March 2009 the Company acquired  on operating lease a restaurant (Ziafat Oriented Cuisine / Yenhui Cuisine

b.

Year Established

1983

c.

Registration #

0010507

 

 

Branches

           

Address

Office # 9, 1st Floor, HakimSons Building, 19 West Wharf Road,
Karachi, Pakistan

Tel #

92 (21) 32202657, 32202659

Fax #

92 (21) 32202681

 

Address

Shop #12-13, Liaqat Plaza, Liaquat Road, Faisalabad, Pakistan

Tel #

92 (41) 2624957, 2620313

 

 

Auditors

 

Munif Ziauddin & Co.

(Chartered Accoutants)

M-40, Bank Road, Rawalpindi, Pakistan

 

 

Legal Status

           

Subject Company was established as a Private Limited Company in 1983

 

 

6.

Authorized Capital    

Rs. 85,000,000/- divided into 8,500,000 shares of Rs. 10/- each

 

Issued & Paid up Capital

Rs. 70,000,000/- divided into 7,000,000 shares of Rs. 10/- each

 

 

Details of Directors

 

Names

Nationality

Address

Occupation

Designation

Dr. M. Bahjat Majid

 

 

Mrs. Zahida Majid

 

Pakistani

 

 

Pakistani

 

20-C-1 Gulberg-III, Lahore

 

20-C-1 Gulberg-III, Lahore

Business

 

 

Business

 

Chief Executive

 

Director

 

 

Shareholders                

 

Names

No. of Shares

Dr. M. Bahjat Majid

 

Mrs. Zahida Majid

 

Mr. Abdul Rashid

52,500

 

5,950,000

 

997,500

 

 


Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

                                                            None                                                                      

           

B.         Associated Companies

 

                                                            - Do -

 

 

Business Activities

 

(1) The Company is engaged in the business of import & marketing of tyres, general items of trade, farming and plantation. In March 2009 the Company acquired on operating lease a restaurant (Ziafat Oriented Cuisine / Yenhui Cuisine.

 

(2) It purchases against L/C, D/A basis.

 

(3) Its mainly import from China, India, Thailand, Malaysia & Korea.

 

(4) Its major customers are Traders, Retailers located in all major cities of Pakistan.

 

(5) Subject operates from caption leased office premises of area measuring 1,600 Sq.ft. which is situated in commercial area.

 

(6) Subject employs about 203 persons in its set up.

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2013

2014

360,459,040/-

308,711,268/-

 

 

Trade Suppliers (Foreign)

 

(1) GOODYEAR TYRES, U.S.A.

(2) GOODYEAR INDIA LIMITED, INDIA.

(3) COOPER TIRE & RUBBER COMPANY, U.S.A.

(4) JK TYRES, INDIA.

 

 

Bankers

 

United Bank Limited, Pakistan.

Bank Alfalah Limited, Pakistan.

Standard Chartered Bank, Pakistan.

Habib Metropolitan Bank Limited, Pakistan.

Silk Bank Limited, Pakistan.

 

(Total Mortgage obtained PKR: 530,130,000/-)

 

 

Memberships

 

·         Lahore Chamber of Commerce & Industry.(LCCI)

·         Karachi Chamber of Commerce & Industry.(KCCI)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

           Rs. 102.65

UK Pound

1

           Rs. 152.50

Euro

1

           Rs. 110.25

 

 

Comments

 

Subject Company was established in 1983. The Company is engaged in the business of import & marketing of tyres, general items of trade, farming and plantation. In March 2009 the Company acquired on operating lease a restaurant (Ziafat Oriented Cuisine / Yenhui Cuisine. Market reputation is good. Trade relations are reported as fair. Subject can be considered for normal business dealings at usual trade terms and conditions.

       

 

 

 

BALANCE SHEET

 

AS AT JUNE 30, 2014

 

Non - Current Assets

Note

2014 Rupees

2013 Rupees

Property, Plant & Equipment

4

295,051,670

297,827,145

Long Term Loans and Advances

5

1,686,317

1,686,317

Lease Hold Premises

6

364,403

1,238,963

Long Term Deposits and Prepayments

7

11,620,096

11,182,096

Current Assets

 

 

 

Stocks-in-Trade

8

89,815,529

 

130,163,208

Trade Receivables

9

88,402,688

 

70,019,123

Short Term Loans and Advances

10

942,335

 

788,077

Short Term Deposits and Prepayments

11

10,330,074

 

12,901,496

Other Receivables

12

2,011,504

 

7,901,297

Cash and Bank Balances

13

9,043,731

 

21,624,834

 

 

200,545,861

243,398,035

Total Assets

 

509,268,347

555,332,555

Share Capital And Reserves Share Capital Authorized;

8,500,000 Ordinary Shares of Rs. 10/- each

 

85,000,000

85,000,000

Issued , Subscribed and Paid-up:

14

70,000,000

70,000,000

Revenue Reserve

Accumulated Profit/ (Loss)

 

(77,274,436) (7,274,436)

(51,040,192) 18,959,808

Surplus on Revaluation of Fixed Assets

15

257,573,937

257,573,937

Non-current liabilities:

 

 

 

Due to Related Parties Provision for gratuity

16 17

39,061,604 30,339,062

7,407,23* 26,484,334

 

 

 

 

Current Liabilities

 

 

 

Trade and Other Payables

18

65912811

88596059

Interest & Markup Accrued-Short Term Borrowings

 

3998998

3604214

Due to Related Parties

19

260163

36913120

Income Tax payable

 

 

--

794494

Short Term Borrowings-Secured

20

118981249

114999355

Bank overdraft

21

414959

--

 

 

189568179

244907242

Contingent Liabilities

 

--

--

Total Equity And Liabilities

 

 

509268347

555332555

The annexed notes^rm an integral part of,these financial statements

 

 

 

 

 

STATEMENT OF COMPREHENSIVE INCOME

 

FOR THE YEAR ENDED JUNE 30, 2014

 

 

Note

2014

Rupees

2013

Rupees

 

 

 

 

Trade Division

 

 

 

 

Sale

 

308711268

360459040

Cost of sales

 

 

252857697

305343052

Gross Profit

 

 

55853570

55115988

Operating Expenses

 

 

 

 

Administrative expenses

 

 

35230180

36837400

Selling & Distribution expenses

 

 

14017157

19363083

 

 

49247337

56200483

Operating Profit / (Loss)

 

6606233

(1084495)

Other Income

 

 

846046

126531

 

 

7452280

(957964

Finance Cost

 

 

20364510

19589318

Loss before taxation - A

 

 

(12912230)

(20547282)

 

 

 

 

Agriculture Division

 

 

 

 

Sales

 

 

580333

167044

Operating Expenses

 

(1233379)

(1407248)

Loss before tax - B

 

 

(653046)

(1240204)

Restaurant & Cuisine Division

 

 

 

 

Sales

 

178710711

177024889

Cost of Sales

 

 

(124206348)

(113568833)

 

 

54504363

63456056

Administrative Expenses

 

 

(7799717)

(6005690)

Selling & Marketing Expenses

 

(45153724)

40754745

Operating Profit

 

1550921

16695621

Other Income

 

 

272083

386927

Profit before Taxation - C

 

 

1823004

17082548

Total operating Loss before tax from all divisions A+B+C

 

 

(11742273)

(4704938)

Provision For Worker's Welfare Fund

 

 

(83747)

(355063)

 

 

(11826020)

(506001)

Provision for taxation

 

(14408224)

(20334916)

Loss after taxation

 

 

(26234244)

(25394917)

Other Comprehensive Income

 

--

--

Total Comprehensive Loss

 

 

(26234244)

(25394917)

Basic (loss) per share

 

(3.75)

(3.63)

The annexed notes form an integral part of these financ al statements.

 

 

 

 

                                                                     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.61

UK Pound

1

Rs.92.95

Euro

1

Rs.68.15

 

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%)

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.