3decades

MIRA INFORM REPORT

Report No. :	502718
Report Date :	16.04.2018

IDENTIFICATION DETAILS

Name :	METROFLEX INDUSTRIES (PRIVATE) LIMITED

Registered Office :	23-D, C-2 Wapda Colony Mirpur, (AJK)

Country :	Pakistan

Financials (as on) :	2016 [Summarized]

Date of Incorporation :	2002

Legal Form :	Private Limited Company

Line of Business :	Manufacturing of Foam and Foam Products

No. of Employees :	About 72

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Medium Risk

Business dealings permissible on a regular monitoring basis

Maximum Credit Limit :	36,657.31 USD

Status :	Moderate

Payment Behaviour :	Slow

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

Business Name

METROFLEX INDUSTRIES (PRIVATE) LIMITED

Full Address

Registered Address

23-D, C-2 Wapda Colony Mirpur, (AJK), Pakistan

Tel No.	92 (58610) 35230, 34590
Fax No.	92 (58610) 35232

Short Description Of Business

a.	Nature of Business	Manufacturing of Foam and Foam Products
b.	Year Established	2002 (Incorporated in Mirpur, Azad Jammu Kashmir)

Factory Location

New Industrial Estate, Mirpur, Azad Jammu Kashmir, Pakistan

Branch Office

Address	Plot # 6/2, Royal Park, Lahore, Pakistan
Tel #	92 (42) 6314334, 6366916, 6366926
Fax #	92 (42) 6366927

Legal Status

Subject Company was established as a Private Limited Company in 2002

Authorised Capital	Rs. 5,000,000/-
Issued & Paid up Capital	Rs. 20,000/-

Details of Chief Executive / Directors

Names

Nationality

Address

Occupation

Designation

Mr. Salahuddin

Mr. Aminuddin

Mr. Chiraguddin

Mrs. Rubina Amin

Pakistani

Plot # 6/2, Royal Park, Lahore

Business

Chief Executive

Director

Shareholders

Mr. Salahuddin

Mr. Aminuddin

Mr. Chiraguddin

Mrs. Rubina Amin

Associates

A. Subsidiary

None

B. Associated Companies

Mehran Falcon Industries (Private) Limited, Pakistan.

Supreme Gas Industries (Private) Limited, Pakistan.

Business Activities

Subject Company is engaged in the business as manufacture & marketing of Foam Products, Mattresses, Cushions and Pillows.

Its main brands are Chairman, Melody & Seagul.

It sells against Cash / Credit terms.

It purchases raw materials through D/P basis to its trade suppliers globally.

Subject operates from caption leased office premises of area measuring 890 Sq.Yards which is situated in residential + commercial area.

Its major customers are Distribution Companies, Traders deal with cash term basis.

Subject employs about 72 persons in its set up.

Trade Suppliers (Foreign)

(1) INEOS CHLOR LIMITED, U.K.

(2) URIMIRAE INC, KOREA.

(3) GOLDSCHMIDT AG, GERMANY.

(4) GE BAYER SILICONES, GERMANY.

Annual Sales Volume

Year

In Pak Rupees

2016

85,000,000/- (Estimated)

Annual Production Volume

The capacity and production of the Company’s plant is indeterminable as it is mainly depend on the demand / requirements from their domestic customers

Bankers

Habib Bank Limited, Pakistan.

Allied Bank Limited, Pakistan.

United Bank Limited, Pakistan.

Memberships

Lahore Chamber of Commerce & Industry.(LCCI)

Comments

Subject Company was established in 2002 and is engaged in manufacture & marketing of Foam Products, Mattresses, Cushions & Pillows. Trade relations are reported as slow. 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 :	PRI

Report Prepared by :	TPT

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.