The Pakistan Credit Rating Agency Limited
Press Release


Muhammad Azmat Shaheen

Applicable Criteria

Related Research

This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Entity Rating of International Business Management

Rating Type Entity
(03-Apr-23 )
(14-Sep-22 )
Action Maintain Initial
Long Term BB+ BB+
Short Term A3 A3
Outlook Stable Stable
Rating Watch - -

International Business Management (“IBM”) is serving the customers/importers of paper & 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 & 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 & 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 & 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 FY22 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.

About the Entity
IBM, established in 1993, is the sole proprietorship of Mr. Saleem Bikiya. Mr. Saleem is an experienced business personnel serving more than 4 decades in the relevant field. He is working with the biggest groups of paper industry including sinarmas group Indonesia known as Asia Pulp & Paper (APP). The main principle of sole proprietorship belongs to Indonesia and China.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.