MIRA INFORM REPORT

 

 

Report No. :

346417

Report Date :

24.10.2015

 

IDENTIFICATION DETAILS

 

Name :

AKRAM PARACHA & COMPANY

 

 

Registered Office :

2nd Floor, Rafiq Chamber, Thanai Lane, Virjee Street, Jodia Bazar, Karachi

 

 

Country :

Pakistan

 

 

Year of Establishment :

2002

 

 

Legal Form :

Proprietorship

 

 

Line of Business :

Import & Trading of Tea

 

 

No. of Employees :

4

 

 

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.

 

 

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 exports has 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 the mid-2000s, 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 sectors 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

                       

Business Name

AKRAM PARACHA & COMPANY

 

 

Full Address       

 

Registered Address

2nd Floor, Rafiq Chamber, Thanai Lane, Virjee Street, Jodia Bazar, Karachi, Pakistan

                                                                                                      

Tel #

92 (21) 32413800

Fax #

92 (21) 32413800

 

 

Short Description Of Business

 

a.

Nature of Business       

Import & Trading of Tea

b.

Year Established

2002

 

 

Branches

 

None

 

 

Legal Status

 

Subject Company was established as a Proprietorship business in 2002

 

 

Details of Management

 

Names

 

Nationality

Address

Occupation

Designation

Mr. Akram Paracha

 

 

Pakistani

 

 

 

2nd Floor, Rafiq Chamber, Thanai Lane, Virjee Street, Jodia Bazar, Karachi

Business

 

 

 

CEO / Proprietor

 

 

 

 

 

Associated Companies

                               

None

 

 

Business Activities

 

Subject Company is engaged in import & trading of Tea.

 

It purchases against D/A, D/P basis to its trade suppliers globally.

 

It sells against cash term basis to its domestic customers.

 

It’s mainly import from India, African Countries, Bangladesh & Srilanka

 

Its major customers are Private Companies, Individuals etc.

 

Subject operates from caption leased office premises situated at commercial market of Karachi.

 

Subject employs about 4 persons in its set up.

 

 

Annual Sales Volume

 

Year

In Pak Rupees

2014

9,000,000/- (Estimated)

 

 

Trade Suppliers (Foreign)

 

Subject import globally from Companies belongs to India, African Countries, Bangladesh & Srilanka

 

 

Bankers

 

(1)   MCB Bank Limited, Pakistan.

(2)   Bank Alfalah Limited, Pakistan.

(3)   Meezan Bank Limited, Pakistan.

(4)   Habib Bank Limited, Pakistan.

 

 

Memberships

 

·         Karachi Chamber of Commerce & Industry.(KCCI)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

         Rs. 104.40

UK Pound

1

         Rs. 158.75

Euro

1

         Rs. 118.00

           

 

Comments

 

Subject Company was established in 2002 and is engaged in import & trading of Tea. 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.64.88

UK Pound

1

Rs.99.89

Euro

1

Rs.72.06

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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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