MIRA INFORM REPORT

 

 

Report No. :

344460

Report Date :

13.10.2015

 

IDENTIFICATION DETAILS

 

Name :

GOLDEN SINDH COTTON GINNING PRESSING FACTORY & OIL MILLS

 

 

Registered Office :

OT-203 Techno City Hasrat Mohani Road, Karachi

 

 

Country :

Pakistan

 

 

Year of Establishment :

1999

 

 

Legal Form :

Partnership

 

 

Line of Business :

Import and Export of Cotton Ginning, Commodities, Food Products.

 

 

No. of Employees :

55

 

 

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 :

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 – 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

GOLDEN SINDH COTTON GINNING PRESSING FACTORY & OIL MILLS

 

 

Full Address       

 

Registered Address

OT-203 Techno City Hasrat Mohani Road, Karachi, Pakistan

                       

Tel #

92 (21) 32270710

Fax #

92 (21) 32270710

 

 

Short Description Of Business

 

a.

Nature of Business       

Engaged in Import, Export of Cotton Ginning, Commodities, Food Products

b.

Year Established

1999

c.

National Tax No.

1692743 - 5

 

 

Factory Location

           

Is located at Mirpur Khas Road, Khipro Sanghar, Sindh, Pakistan

 

 

Legal Status

 

Subject Company was established as a Partnership business in 1999

 

 

Details of Management

 

Names

 

Nationality

Address

Occupation

Designation

Mr. Kishan Chand

 

 

Mr. Mahesh Kumar

 

Pakistani

 

 

 

Pakistani

 

 

OT-203 Techno City Hasrat Mohani Road, Karachi

 

OT-203 Techno City Hasrat Mohani Road, Karachi

Business

 

 

 

Business

 

 

Managing Partner

 

 

Partner

 

 

 

 

Associated Companies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

 

(1) Pawan Enterprises, Pakistan.

 

 

Business Activities

 

Subject Company is engaged in import, export of Cotton Ginning, Commodities & Food Products.

 

Payments would be accepted / made through D/A, D/P basis.

 

Its mainly export to Gulf Countries.

 

It’s mainly import from China, India, Canada, Australia & Singapore.

 

Its’ major customers are Trading Companies, Food Companies, Cotton Industry.

 

Subject operates from caption leased office premises of area measuring 550 Sq. ft. which is situated at main commercial building of Karachi.

 

Subject employs about 55 persons in its set up.

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2013

66,000,000/- (Estimated)

 

 

Trade Suppliers (Foreign)

           

Subject mainly import from Companies belongs to China, India, Thailand, Canada, Australia & Singapore

 

 

Bankers

 

(1) Habib Bank Limited, Pakistan.

(2) Bank Alfalah Limited, Pakistan.

(3) Faysal Bank Limited, Pakistan.

(4) United Bank Limited, Pakistan.

 

 

 

Memberships

 

·         Pakistan Cotton Ginners' Association

·         Karachi Cotton Association

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

         Rs. 104.40

UK Pound

1

         Rs. 159.50

Euro

1

         Rs. 117.75

 

 

Comments

 

Subject Company was established in 1999 and is engaged in import, export of Cotton Ginning, Commodities and Food 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.64.73

UK Pound

1

Rs.99.30

Euro

1

Rs.73.60

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

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%)

 

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