3decades

MIRA INFORM REPORT

Report No. :	499858.2
Report Date :	09.04.2018

IDENTIFICATION DETAILS

Name :	SONEX TILES & CERAMIC INDUSTRIES LIMITED

Registered Office :	27-K.M., G.T. Road, Lahore Side, Near Kamoki, Gujranwala, Punjab

Country :	Pakistan

Date of Incorporation :	29.05.2003

Com. Reg. No.:	0045462

Legal Form :	Public Limited Company (Not listed at stock exchange of Pakistan)

Line of Business :	Manufacture & sale of all kinds of ceramic tiles, frits and stains.

No. of Employees :	102

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Acceptable Risk

Business dealings permissible with moderate risk of default

Status :	Satisfactory

Payment Behaviour :	Slow and Delayed

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Pakistan

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

PAKISTAN - ECONOMIC OVERVIEW

Decades of internal political disputes and low levels of foreign investment have led to underdevelopment in Pakistan. Pakistan has a large English-speaking population. A challenging security environment, electricity shortages, and a burdensome investment climate have deterred investors. Agriculture accounts for one-fifth of output and two-fifths of employment. Textiles and apparel account for more than half of Pakistan's export earnings; Pakistan's failure to diversify its exports has left the country vulnerable to shifts in world demand. Pakistan’s GDP growth has gradually increased since 2012. Official unemployment was 6% in 2017, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Human development continues to lag behind most of the region.

In 2013, Pakistan embarked on a $6.3 billion IMF Extended Fund Facility, which focused on reducing energy shortages, stabilizing public finances, increasing revenue collection, and improving its balance of payments position. The program concluded in September 2016. Although Pakistan missed several structural reform criteria, it restored macroeconomic stability, improved its credit rating, and boosted growth. The Pakistani rupee, after heavy depreciation in 2013, remained relatively stable against the US dollar in 2015-17. Balance of payments concerns have reemerged, however, as a result of increased imports and declining remittances.

Pakistan must continue to address several longstanding issues, including expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, improving the country’s business environment, reducing dependence on foreign donors, and widening the country’s tax base. Given demographic challenges, Pakistan’s leadership will be pressed to implement economic reforms, promote further development of the energy sector, and attract foreign investment to support sufficient economic growth necessary to employ its growing and rapidly urbanizing population, much of which is under the age of 25.

In an effort to boost development, Pakistan and China are implementing the “China-Pakistan Economic Corridor,” with $60 billion in investments targeted towards energy and other infrastructure projects. Pakistan believes CPEC investments will enable growth rates of over 6% of GDP by laying the groundwork for increased exports. CPEC-related obligations, however, have raised IMF concern that capital outflows that will begin to increase in 2020.

Source : CIA

Company name

Business Name

SONEX TILES & CERAMIC INDUSTRIES LIMITED

Full Address

Registered Address

27-K.M., G.T. Road, Lahore Side, Near Kamoki, Gujranwala, Punjab, Pakistan

Tel No.	92 (55) 6817401 - 05 (5 Lines)
Fax No.	92 (55) 6817405

Short Description Of Business

a.	Nature of Business	Engaged in manufacture & sale of all kinds of ceramic tiles, frits and stains
b.	Year Established	29^th May, 2003
c.	Registration No.	0045462

Branches

None

Auditors

Qadeer & Co.

(Chartered Accountants)

Legal Status

Public Limited Company (Not listed at stock exchange of Pakistan)

Capital

Authorized Capital	Rs.400,000,000/- divided into 40,000,000 shares of Rs.10/- each
Issued & Paid up Capital	Rs.300,000,000/- divided into 30,000,000 shares of Rs.10/- each

Details of Chief Executive/ Directors

Names

Designation

Mr. Inayat Ullah

Mr. Majid Butt

Mr. Zahid Butt

Mr. Sajid Ali

Mrs. Nazia Sajid

Chief Executive

Director

Shareholders

Names

No. of Shares

Mr. Inayat Ullah

Mr. Majid Butt

Mr. Zahid Butt

Mr. Sajid Ali

Mrs. Nazia Sajid

7,500,000

7,875,000

6,075,000

8,549,900

100

Associates

A. Subsidiary

None

B. Associated Companies

- Do -

Business Activities

Engaged in manufacture & sale of all kinds of ceramic tiles, frits and stains

Number of Employees

102

Trade Suppliers (Foreign)

Subject import globally from Companies belongs to European Countries, Korea, China, Singapore, Taiwan & Malaysia. Its global trade suppliers are Companies related to Raw Materials, Machineries etc

Annual Production Volume

Annual production volume is indeterminable as its mainly depend on the demand / requirements from their domestic customers

Annual Sales Volume

Year	In Pak Rupees
2016	520,000,000/- (Estimated)

Customers

Major customers are Distribution Companies, Private Companies exist at major cities of Pakistan

Bankers

(1) Habib Metropolitan Bank Limited, Pakistan.

(2) United Bank Limited, Pakistan.

(3) Bank Al-Habib Limited, Pakistan.

(4) Soneri Bank Limited, Pakistan.

(5) Allied Bank Limited, Pakistan.

Memberships

GCCI

FPCCI

Comments

Subject is a well-established company having satisfactory track. Directors are reported as qualified, experienced and resourceful businessmen. Trade relations are reported as fair. In view of current disturbed economic and political situation, we would advise to deal with all the business in Pakistan with some caution.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.99
UK Pound	1	INR 90.96
Euro	1	INR 79.51
PKR	1	INR 0.56

Note: Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VIV

Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.