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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

502701

Report Date :

16.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

CANNON FOAM INDUSTRIES (PVT.) LIMITED

 

 

Registered Office :

43-Tariq Block, New Garden Town, Lahore

 

 

Country :

Pakistan

 

 

Financials (as on) :

2016 (Summarized)

 

 

Date of Incorporation :

22.04.1993

 

 

Com. Reg. No.:

0030169

 

 

Legal Form :

Private Limited Company 

 

 

Line of Business :

Subject is engaged in manufacture & marketing of Polyurethene Foam

 

 

No. of Employees :

81

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Maximum Credit Limit :

USD 103,669.84

 

 

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

B1

B1

 

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

 

CANNON FOAM INDUSTRIES (PVT.) LIMITED

 

 

Full Address       

 

Registered Address

43-Tariq Block, New Garden Town, Lahore, Pakistan

                       

Tel No.

92 (42) 35888901, 35888902, 35888903, 35888904

Fax No.

92 (42) 35888905

 

 

Short Description Of Business

 

a.

Nature of Business       

Engaged in manufacture & marketing of Polyurethene Foam

b.

Year Established

22nd April, 1993

c.

Registration No.

0030169

 

 

Branches

 

Moeen Centre, 2nd Floor,

Abbot Road, Lahore,

Pakistan

 

 

Auditors

           

F. Majid & Co.

(Chartered Accountants)

 

 

Legal Status

           

Subject Company was established as a Private Limited Company  in 22nd April, 1993

 

 

Capital

 

Authorised Capital        

Rs. 40,000,000/- divided into 4,000,000 shares of Rs. 10/- each

Issued & Paid up Capital

Rs. 19,500,000/- divided into 1,950,000 shares of Rs. 10/- each

 

 

Details of Chief Executive / Directors

           

Names

Designation

Mr. Muhammad Ibrahim

 

Mr. Muhammad Ismail

 

Mr. Muhammad Yasin

 

Mrs. Faiza Ibrahim

Chief Executive

 

Director

 

Director

 

Director

 

 

Shareholders

           

Names

No. of Shares

Mr. Muhammad Ibrahim

 

Mr. Muhammad Ismail

 

Mr. Muhammad Yasin

 

Mrs. Faiza Ibrahim

880,385

 

974,900

 

200

 

94,515

 

 

Associated Companies 

 

None

 

 

Business Activities

 

Engaged in manufacture & marketing of Polyurethene Foam

 

 

 

No. of Employees

 

81        

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2015

2016

210,000,000/- (Estimated)

240,000,000/- (Estimated)

 

 

Trade Suppliers (Foreign)

 

Subject import globally from Companies belongs to European Countries, Japan, China, Hong Kong, Korea & Taiwan. Its global trade suppliers are Companies related to Foam Raw Materials, Machineries

 

 

Annual Production Volume

           

Annual production volume is indeterminable as it’s mainly depends on the demand / requirements from their domestic customers

 

           

Authorized Distributors

           

Mainly exist at major cities of Pakistan

 

 

Bankers

 

(1) Habib Bank Limited, Pakistan.

(2) Bank Al-Falah Limited, Pakistan.

(3) Summit Bank Limited, Pakistan.

(4) Meezan Bank Limited, Pakistan.

 

 

Memberships

 

LCCI

FPCCI

 

           

Comments

 

Subject Company was established in 22nd April, 1993 and is engaged in manufacture & marketing of Polyurethene Foam. Overall reputation is satisfactory. 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 65.22

UK Pound

1

INR 92.77

Euro

1

INR 80.34

PKR

1

INR 0.57

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIS

 

 

Report Prepared by :

TRU

                                                


 

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.