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MIRA INFORM REPORT
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Report No. : |
485269 |
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Report Date : |
12.01.2018 |
IDENTIFICATION DETAILS
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Name : |
G.S. FOUNDRIES & ENGINEERING
SERVICES |
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Registered Office : |
Plot No. 250, Sector No.27, Korangi Industrial Area, Karachi |
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Country : |
Pakistan |
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Date of Incorporation : |
1999 |
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Legal Form : |
Proprietorship business |
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Line of Business : |
Subject Company is engaged in import, manufacture &
marketing of Auto Parts & Accessories. |
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No. of Employees : |
45 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow and delayed |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Pakistan |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
PAKISTAN - ECONOMIC
OVERVIEW
Decades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. Pakistan has a large English-speaking population. Nevertheless, 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 most 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 6.1% in 2016, 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 2016. Low global oil prices in 2016 contributed to a narrowing current account deficit and lower inflation. Remittances from overseas workers continued to be a key revenue source, also mitigating the impact of the lack of foreign investment and a growing trade deficit on the country’s current account.
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,” a $46 billion investment program targeted towards the energy sector and other infrastructure projects that Islamabad and Beijing had agreed on in early 2013.
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Source
: CIA |
Company
Name
G.S.
FOUNDRIES & ENGINEERING SERVICES
Full
Address
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Registered Address |
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Plot No. 250, Sector No.27, Korangi Industrial Area, Karachi, Pakistan |
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Tel No. |
92 (21) 35055626 |
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Fax No. |
92 (21) 35055626 |
Short
Description Of Business
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a. |
Nature of Business |
Engaged in import,
manufacture & marketing of Auto Parts & Accessories |
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b. |
Year Established |
1999 |
Branches
None
Legal
Status
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Subject Company was established as a Proprietorship business in
1999 |
Details
of Management
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Names |
Nationality |
Address |
Occupation |
Designation |
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Mr. Muhammad Shafiq |
Pakistani |
Plot No. 250, Sector No.27, Korangi Industrial Area, Karachi |
Business |
CEO / Proprietor |
Associated
Companies
None
Business
Activities
Subject Company is engaged in import, manufacture & marketing
of Auto Parts & Accessories.
It purchases against D/A, D/P
basis to its trade suppliers globally.
It sale its products through cash / credit term basis to its
domestic customers.
Its import globally from Companies belongs to China, Korea, Taiwan, U.A.E. & Thailand.
Its major customers are Private
Companies, Retail & Wholesale Traders etc.
Subject operates from caption leased factory premises situated at
industrial area of Karachi.
Subject employs about 45 persons in its set up.
Annual Sales Volume
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Years |
In Pak Rupees |
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2015 2016 |
50,000,000/- (Estimated) 45,000,000/- (Estimated) |
Trade
Suppliers (Foreign)
Subject import globally from Companies
belongs to China, Korea, Taiwan, U.A.E. &
Thailand. Its global trade suppliers are Companies
related to Auto Parts
Bankers
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(1) Soneri Bank Limited, Pakistan. (2) Bank Alfalah Limited, Pakistan. (3) MCB Bank Limited, Pakistan. (4) Habib Bank Limited, Pakistan. |
Memberships
Karachi Chamber of Commerce & Industry.(KCCI)
Comments
Subject Company was established in 1999 and is engaged in import, manufacture & marketing of Auto Parts & Accessories. Overall reputation is normal. 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.74 |
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1 |
INR 86.01 |
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Euro |
1 |
INR 76.14 |
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PKR |
1 |
INR 0.57 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.