3decades

MIRA INFORM REPORT

Report No. :	502713
Report Date :	16.04.2018

IDENTIFICATION DETAILS

Name :	NOBLE FOAM (PRIVATE) LIMITED

Registered Office :	T-31, New Industrial Area, Mirpur (AJK)

Country :	Pakistan

Financials (as on) :	2016 (Summarized)

Date of Incorporation :	2002 (Incorporated in Azad Jammu Kashmir, Mirpur)

Legal Form :	Private Limited Company

Line of Business :	Subject Company is engaged in manufacture & marketing of Foam Products, Mattresses, Cushions & Pillows.

No. of Employees :	66

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Maximum Credit Limit :	USD 51767.10

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

NOBLE FOAM (PRIVATE) LIMITED

Full Address

Registered Address & Factory

T-31, New Industrial Area, Mirpur (AJK), Pakistan

Tel No.	92 (58610) 34580, 34582, 34583
Fax No.	92 (58610) 34581
Email	alkhairgroup@hotmail.com

Short Description Of Business

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

Corporate Office

Address	Al-Khair House, 43-T, Gulberg II, Lahore, Pakistan
Tel #	92 (42) 111-111-043
Fax #	92 (42) 5716588, 5753719

Auditors

M/s Tahir Siddiqi & Co.

(Chartered Accountants)

Legal Status

Subject Company was established as a Private Limited Company in 2002

Capital

Authorised Capital	Rs. 30,000,000/-
Issued & Paid up Capital	Rs. 25,000,000/-

Details of Chief Executive / Directors

Names

Nationality

Address

Occupation

Designation

Mr. Jazib Iqbal Subhani

Mr. Sheikh Ali Afzal

Pakistani

924-Z, D.H.A., Lahore

220-L, D.H.A., Lahore

Business

Chief Executive

Director

Shareholders

Names

Mr. Jazib Iqbal Subhani

Mr. Sheikh Ali Afzal

Associated Companies

Al-Khair Gadoon Limited, Pakistan.

Al-Khair Mirpur (Private) Limited, Pakistan.

Al-Khair Soft (Private) Limited, Pakistan.

Al-Khair Boards (Private) Limited, Pakistan.

Al-Khair Overseas (Private) Limited, Pakistan

Al-Khair Global (Pvt) Limited, Pakistan.

Business Activities

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

Its main brands are Five Star Special, Climax Special, Decent, Eagle, Margalla, Vicky, Marshall, Novelty, Commando, Fuji, Sky, Flexi, Seven Star Special, Star, Seven Star Plus etc.

It sells against Cash / Credit term basis to its domestic customers.

It purchases raw material through L/C, D/P basis to its trade suppliers globally.

Subject operates from caption leased office premises of area measuring 700 Sq.Yards which is situated in commercial area.

Subject employs about 66 persons in its set up.

Annual Sales Volume

Years

In Pak Rupees

2015

2016

100,000,000/- (Estimated)

120,000,000/- (Estimated)

Trade Suppliers (Foreign)

Subject import globally from Companies belongs to China, Korea, Taiwan & Japan

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

Authorized Distributors

Mainly exist at major cities of Khyber Pakhtoonkwa Province of Pakistan

Bankers

(1) Allied Bank Limited, Pakistan.

(2) Soneri Bank Limited, Pakistan.

Memberships

KPCCI

Comments

Al-Khair Group enjoys good reputation in the Pakistan business circle. Chief Executive as well as director of the Company is reported as resourceful and experienced 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 65.22
UK Pound	1	INR 92.77
Euro	1	INR 80.34
PKR	1	INR 0.557

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.