Lahore, September 14, 2022 (PPI-OT):International Business Management (“IBM”) is serving the customers/importers of paper and paperboard with dynamism. The other family businesses of IBM are Madiha International (Pvt) Limited and Bikiya Industries (Pvt) Limited, who are involved in paper and tissues industries respectively. IBM is an indenting house serving between suppliers and importers of paper and paper board, generating commission income as revenue. The indenting house consists of experienced, devoted and capable staff for the benefits of esteemed customers as well as for the success of sole proprietorship.
IBM is supporting the quality assessment evaluation of various kinds of paper and paperboard in Pakistan. During FY22, as per management representation, IBM’s average market share (in terms of total paper and paper-related imports) remained at 90% in art card, 60% in bleach board, 57% in offset paper and 60% in boxes’ imports. The ratings take comfort from IBM’s customer base for indenting services of paper and board including the group companies. Due to the small business size, the sponsor is looking after the management and governance side of the proprietorship. The external auditor is not QCR-rated and the MIS of IBM is considered adequate.
The financial risk profile of IBM is considered adequate with currency fluctuations as seen during end of FY22. Foreign indenting commissions has improved by a good percentage. The total inflows and total outflows during FY21 of the proprietor provided a healthy net margin. The Company is sufficiently liquid, managing its working capital requirements through its own sources. IBM is leverage free, with zero bank borrowings and has no plans to borrow, going forward.
The ratings are dependent on IBM’s ability to sustain its position amidst changing business environment and management’s ability to run the operations optimally. With the upcoming growth in firm’s business; prudent financial discipline and implementation of a stringent control environment shall remain imperative.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com