Table of Contents PREFACE TRIBUTE REASON FOR SELECTION OF THIS INSTITUTION DUN & BRADSTREET INTERNATIONAL CREDIT INFORMATION BOARD OF DIRECTORS MANAGEMENT WHAT IS ICIL’S CORE BUSINESS? PRODUCTS AND SERVICES OF ICIL o EXPORT FACILITATION SERVICES o BANKING SERVICES o WHAT IS DUNS NO o BUSINESS INFORMATION REPORT CLIENTELE o FINANCIAL SECTOR o EXPORT SECTOR
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Table of Contents
PREFACE
TRIBUTE
REASON FOR SELECTION OF THIS INSTITUTION
DUN & BRADSTREET
INTERNATIONAL CREDIT INFORMATION
BOARD OF DIRECTORS
MANAGEMENT
WHAT IS ICIL’S CORE BUSINESS?
PRODUCTS AND SERVICES OF ICIL
o EXPORT FACILITATION SERVICES
o BANKING SERVICES
o WHAT IS DUNS NO
o BUSINESS INFORMATION REPORT
CLIENTELE
o FINANCIAL SECTOR
o EXPORT SECTOR
COMPETITORS
o CURRENT MARKET SITUATION
BUSINESS PLA YEAR 2000 AND BEYOND
WORK DONE BY ME IN ICIL
o CUSTOMER SERVICES
International Credit Information Ltd
Dun & Bradstreeto OPERATIONS
o SALES & MARKETING
o ACCOUNTS
CONCLUSION
RECOMMENDATIONS
FINANCIAL ANALYSIS
o VERTICAL ANALYSIS
o HORIZONTAL ANALYSIS
o RATIO ANALYSIS
o CONCLUSION
ANNEXURE
o X-BIR REPROT (SAMPLE)
o LOCAL REPORT (SAMPLE)
o SEARCH REPORT (SAMPLE)
o INCOMEESTIMATION REPORT (SAMPLE)
FEW WORDS FROM Mr. AWAIS KHAN
BIBLIOGRAPHY
PREPARED BY ___________________MBA Registration No: ____________ Page 2 of 47
International Credit Information Ltd
Dun & Bradstreet
I acknowledge the patronage of my respected teacher Prof. ___________________ and it is not to exaggerate that due to such an assignment I became able to handle a project at such an initial stage. This is all due to the conceptual ground which is very strong in my perception as taught us in the classes of the operational & production management. I am the lucky one to get such a professional touch from my teacher regarding the operation & production methodology.
I have tried to use the latest techniques of the production & management on a very different style, hence making the report unique. I am sure that I am on a very different subject and again I would like to say that only the help of my teacher could handle such a big problem.
In case of any misconception I regretful to say that It is just the beginning and many things are to come next.
Regards
__________________
PREPARED BY ___________________MBA Registration No: ____________ Page 3 of 47
International Credit Information Ltd
Dun & Bradstreet
I pay my tribute to Mr. Mirza Asad Ahmad, who not only assisted me in my project but also like a
teacher he taught me many things in the normal conversation.
Although he is a very busy person but he made spare some time for mine and I became able to get the
information in a consequent way.
I also thank him to have a very nice company with me.
PREPARED BY ___________________MBA Registration No: ____________ Page 4 of 47
International Credit Information Ltd
Dun & Bradstreet
Why Dun &Bradstreet (International Credit Information Ltd.) is selected for Internship:
I met a Banker who is from my family, told me about ICIL and its services. It looked very different due to its
different and versatile line of products. When I showed interest about the co. then the same banker referred
us to Mr. Mirza Asad Ahmad who is Regional Sales Coordinator in the same company.
Before going into the problem I should have the knowledge about the company and its products.
PREPARED BY ___________________MBA Registration No: ____________ Page 5 of 47
International Credit Information Ltd
Dun & Bradstreet
Dun & Bradstreet
Dun & Bradstreet is more than 163 years old US based multinational which has its head office in USA
and has its working offices in more than 213 countries which have been serving well in them. From our
humble beginning as a credit rating agency, set up by Lewis Tappen in 1841 we have become a global
organization. In many of the markets we serve, we are unique in our ability to provide dedicated local
services backed by the global capabilities and resources of a worldwide corporation.
Today, the Dun & Bradstreet Corporation Joined by long-term partners....
Dun & Bradstreet-- The world's largest source of business-to-business Credit, Marketing and Receivable
Management Information. Moody's Investors Service-A global leader in Rating Debt over 130,000
Corporate and Public Finance Ratings.
...Is a company more keenly focused on our core business areas? We have grown to become the world's
largest provider of business information and related services, with annual revenue of more than US$2
Billion.
PREPARED BY ___________________MBA Registration No: ____________ Page 6 of 47
International Credit Information Ltd
Dun & Bradstreet
Dun & Bradstreet has the world's largest commercial database with more than 70 Million business
records. Serving your information needs around the clock, we have more than 18,000 professionals working
in more than 40 countries ensuring the quality & timelines of our information with over 1.5 million updates
completed each business day. Maintaining the most comprehensive commercial databases gives Dun &
Bradstreet a unique advantage of providing quality credit & marketing information services. In Asia Pacific
it is headed by DUN & BRADSTREET SINGAPORE.
Dun & Bradstreet in Pakistan D&B entered in the Pakistani Market with the concept of Risk Management
Services through its distributor International Credit Information Ltd. in February 1998.
PREPARED BY ___________________MBA Registration No: ____________ Page 7 of 47
International Credit Information Ltd
Dun & Bradstreet
INTERNATIONAL CREDIT INFORMATION LIMITED (ICIL)
ICIL is an unlisted public limited company: Registration No. K-07137 NTN Number: 13-07-
1017382
ICIL is distributor / Local affiliate of Dun & Bradstreet in Pakistan (visit website:
www.dnb.com.sg)
ICIL is co-operation partner of Gerling credit insurance company of Germany (visit website:
www.gerling.com)
ICIL has a marketing agreement with Schober Direct Marketing Company of Germany. (Visit
website: www.schober-international.com)
ICIL's Board of Director comprises of Commercial, Investment Bankers, Chartered Accountants,
Corporate large and Industrial Managers of proven performance in Pakistan. Its management
team is academically qualified and has been trained by Dun & Bradstreet in different discipline.
As a part of Dun & Bradstreet Asia Pacific Region, ICIL Pakistan has access to D&B
technologies, its world databases, its global network & resources. It is engaged in the
development of database of Pakistan's business universe and is providing global as well as local
business-to-business credit, marketing, purchasing and receivable management service.
The Co. has started its activities in February 1998 as a sole and authorized distributor of Dun & Bradstreet’s
Services in Pakistan.
PREPARED BY ___________________MBA Registration No: ____________ Page 8 of 47
International Credit Information Ltd
Dun & Bradstreet
BOARD OF DIRECTORS Mr. M R Khan
-Ex Central Banker. -Ex Chairman Pakistan Banking Council
Mr. Abdul Azeem Shammali
-Investment banker -Chairman Pakistan Kuwait Investment Bank Ltd.
Mr. Humayun Mufti
-Chartered Accountant-Entrepreneur with Industrial management background
Dr. Adil S. Mufti
-Ph.D. -Entrepreneur with industrial management background
Mr. Jamil Hamdani
-Banker -Managing Director Canadian Imperial Bank of Commerce, Liaison office in Pakistan
Mr. Kazim Hassan
-Corporate Lawyer
Mr. Ar if Mufti
-Chartered accountant -Chairman American Life Insurance Company Limited ( ALICO)
Mr. David Emery
-Senior Vice President Dun & Bradstreet Asia Pacific
Mr. Babar Mufti - Economist
PREPARED BY ___________________MBA Registration No: ____________ Page 9 of 47
International Credit Information Ltd
Dun & Bradstreet
MANAGEMENT
A team of professional and qualified individuals manages the company. Company has a total strength of
more than 53 personnel.
Head of Marketing & Business Development Mr. Abid Ajmal
Head of Operations & Risk Management Services Mr. Babar Mufti ( BSC London, MSC London School of Economics)
Information Resources Manager Mr. Mobashhar Alam (BBA Management, MBA Marketing (Hamdard))
Senior Relationship Manager Mr. Hussein Javed
Global Services Manager - Trading sector Mr. Salman Farooqui (B.Com (Hon's), M. COM (Management))
Customer Services Team Leader Mr. Jawad Rasheed (BBA Management & MBA Marketing)
Regional Sales CoordinatorMr. Mirza Asad Ahmad
Coordinator Global Risk Mgt. Services Mr. Faisal N. Tanoli (BBA Management & MBA Marketing)
Manager - Information Technology Mr. Yasser Mufti (B. Eng. University of London, M.Sc. Information Technology, London)
Operation Manager Mr. Salman Raza (BBA Finance, MBA Finance)
PREPARED BY ___________________MBA Registration No: ____________ Page 10 of 47
COMPANY'’S BANKS: ANZ Grindlays Bank, Clifton Branch, Karachi.
Bank Al- Habib, Karachi.
Bank Al - Falah, Karachi.
COMPANY AUDITORS:
KPMG (Taseer Hadi & Company)
PREPARED BY ___________________MBA Registration No: ____________ Page 11 of 47
International Credit Information Ltd
Dun & Bradstreet
WHAT IS ICIL'S CORE BUSINESS:
Being Local partner of Dun & Bradstreet in Pakistan, ICIL is primarily engaged in:
Providing D&B's cross border credit, marketing and purchase and Receivable Management Services
to Pakistani companies.
Development of database of Pakistani companies and putting it on D&B World base.
Providing Credit reports on Pakistani companies to D&B customers worldwide and to Pakistani
businesses.
Registered Charges Search Report and Registration of charges.
D&B International Receivable Management / Debt Collection Services to Pakistani exporters.
Gerling Export Credit insurance.
PREPARED BY ___________________MBA Registration No: ____________ Page 12 of 47
International Credit Information Ltd
Dun & Bradstreet
PRODUCTS AND SERVICES OF ICIL:
ICIL has been serving the business sector of Pakistan since its incorporation and is unique due to its professional touch and quality of the services. Following is a brief description of the products that are being offered by the Co.
Marketing Services DUNS Number Business Marketing Services Direct Marketing Service Business Marketing Services T.R.A.D.E Report
Risk Management Services Business Information Report Cross Border Receivable Management/ Debt Collection Gerling Export Credit Insurance
Banking Services Credit Services
Marketing Services:
PREPARED BY ___________________MBA Registration No: ____________ Page 13 of 47
International Credit Information Ltd
Dun & Bradstreet
Following is a brief description of the Marketing related services
A) D-U-N-S Number
The Data Universal Numbering System (D-U-N-S) is maintained solely by Dun & Bradstreet. We assign each business location with a distinct, unique and separate operation its own DUNS No. when the business first enters into D&B Business Information Database. DUNS No. is assigned once and if a business decides to shut its operation, its DUNS No. is retired and will not be assigned to any other business concern. This specific DUNS No. will only become alive if the same concern becomes operational again.
The DUNS Number and its Value:
Access the world's most premier database of more than 60 million business records worldwide customized to meet your business objectives and uniquely identified through the D&B DUNS No. The D&B DUNS No.'s distinctive nine digit identification sequence links you to a wealth of quality information products and services originally exclusively from D&B. As an internationally recognized common company identifier in EDI and e-commerce transactions, the DUNS No. is in use by the world's most influenced standard organizations. And more than 50 global industrial and trade associations and the US Federal Government recognize, recommend or require the D&B DUNS No.
The D&B DUNS No. can help you; Enhance your customer and vendor files. Locate and identify potential buyers and suppliers all over the world. Streamline your credit, billing and collection systems. Take advantage of new automated transactions technologies (including D&B EDI) Gather business and credit information quickly and easily.
DUNS No. May be Assigned to any business entity including: Public Limited Companies Private Limited Companies Partnerships
PREPARED BY ___________________MBA Registration No: ____________ Page 14 of 47
ICIL, in collaboration with DnB provides the services for Pakistani Exporters not to introduce them in the International Market but also to explore new markets, and the ways how to enter into them with available resources.
International Credit Information Ltd
Dun & Bradstreet Trade Associations
Single Owner type like
1. Clinics 2. Law Firms 3. CA Firms
The DUNS No.s are not assigned to: Different Departments of the same company located at the same location, such as a single company's
marketing and finance departments will not have different DUNS No.
Un-staffed operations or locations, such as automated teller machines. Trade styles or additional names used by the company for buying and/or advertising purposes.
Post Office Box No. used only for general mailing purposes.
How to register your co. on D&B's World Database by Getting your own DUNS No.
Contact International Credit Information Ltd.- Dun & Bradstreet to get your own DUNS NO.Only a one time processing cost of US$ 7.50 applies (equivalent to Pak Rs. 395/-)
B) Business Marketing Services
Business Marketing Services use the power of Dun & Bradstreet's database to provide specialized business-to-business marketing solution.
As an exporter /importer, you are always in search of buyers/suppliers.
Who can give data beyond some basic information?
Who can provide you only current information?
What is most credible source of information?
PREPARED BY ___________________MBA Registration No: ____________ Page 15 of 47
International Credit Information Ltd
Dun & BradstreetDatabase Development of Pakistani Exporters/ Importers
Not only in Pakistan but also all over the world there is no reliable database especially of commercial exporters and importers who are partnerships and proprietorships. D&B only put reliable information on their database. Once a company is on D&B database foreign buyers can have online access to ICIL. This database is actually the raw material for the business-to-business dealings and reliability. The edge of the Co. is that the commercial database maintained by the Co. is updated day by day so the customer can get timely updated and fresh data. So according to the needs of the day it is very important to get such type of data.
At D&B we have Total Marketing Solution to help your business in finding out the right buyers/suppliers. Through our Business Marketing Services (BMS), you can explore potential markets around the world for your products/services. Just specify the region you want to explore potential and we will come up with a list of your potential buyers/suppliers with brief corporate profiles. Information on each buyer/supplier will be provided to you in the shape of PROSPEST CARD.
Each Prospect Card contains information such as:
Prospect Buyer's/Supplier's name Full Address Telephone Number Fax Number Year Business Started Sales Turnover SIC Code Name of Contact Person Title of Contact Person Import/Export Indicator Number of Employees
C) Cross Border Direct Marketing Services
Direct marketing or Database Marketing is very rapidly replacing all the convention tools of marketing i.e. advertisement, promotion or actual selling of a product. Now a days database are so precise that one can reach a customer belonging to any income/age group or of any ethnic background. Similarly database of wholesaler/retailer of any products are available. If one Pakistani exporter wishes to sell Pakistani Masalas to the Pakistani community in New York, he can do so while sitting in Pakistan.
As a model we have taken a Direct Marketing Assignment of a Pakistani leather garment manufacturer who wanted us to reach 250 wholesalers in USA. Results recently received from our Direct Marketing Associates
PREPARED BY ___________________MBA Registration No: ____________ Page 16 of 47
International Credit Information Ltd
Dun & Bradstreethave been so encouraging that our customers want us to take similar assignment of Direct Marketing in Spain and in other country.
The results have also encouraged us to consider cross border Direct Marketing Services as a profitable product.
D) Local Direct Marketing Services:
ICIL has been using its Direct Marketing Capabilities to sell its export related services to the exporters community and to develop its database/sale of DUNS Number. However, in the new strategy, company is considering to use its Direct Marketing Services as a product to market other companies products.
E) T.R.A.D.E Report
A T.R.A.D.E Report provides details of worldwide
imports of all commodities into USA through all US
seaports. The Report helps to determine which US
buyer is importing which commodity and from
which US buyer is importing which commodity and
from which country. The report helps exporters in
Pakistan to know who are its local competitors and the quantity they are exporting to US buyers
Risk Management Services
PREPARED BY ___________________MBA Registration No: ____________ Page 17 of 47
International Credit Information Ltd
Dun & BradstreetA) Cross Border Business Information Report:
Our worldwide information base can help you answer such questions:
1. Will my customer pay & when? 2. What is the level of risk associated with the customer? 3. Is the customer well established? 4. How does the customer compare with the others in the same industry in terms of financial
condition and payment habits? 5. Can I depend on the supplier to deliver as promised? 6. Has the financial condition and stability of a customer or supplier changed?
Business Information Report (BIR) is a comprehensive Credit Report, covering areas such as; 1. Company Summary: A quick overview of the Co., D&B rating Duns numbers, year started, sales,
worth etc.2. Credit Risk Index: A DnB Credit opinion. 3. Payment Experience: Payment history from trade suppliers 4. Court Information: High court or similar information 5. Registered Charges: Secured loans, debentures etc. 6. Finance: Balance sheet, Income Statement, & Financial Commentary 7. Banking Information: Principal Bankers 8. History: Company registry information, shareholding, name of officers and principals, experience
& background of key personnel 9. Operations: Nature of Business & how it is conducted 10. Corporate Structure: Listing of parent/subsidiaries/branches/affiliates 11. Special Event: Latest media/ credit significant updates
PREPARED BY ___________________MBA Registration No: ____________ Page 18 of 47
D&B's BIR is the most widely used & trusted report of its kind. The BIR can enhance the accuracy of your decision making process by providing you the vital facts & figures that reflects a firm's overall condition & ability to meet its credit obligations.
International Credit Information Ltd
Dun & BradstreetB) Cross-border Receivable Management / Debt Collection.
D&b's professional experience, physical presence and comprehensive information on Companies allow our local offices to know the business climate and legal implications in our major centers of global commerce around the world. 70% of all accounts placed with D&B are collected before legal action is necessary. In fact all accounts placed us that are less than 150 old could be settled within a month.
Membership Privileges
On signing the D&b RMS subscription form, our customer is entitled to certain privileges that include:
1. D&B Global Membership: The client can ask for advice and consultancy on international trade problems, UCP Laws and L/C terms etc. free of cost.
2. DUNS Number: A RMS subscriber is issued a DUNS No. (Free of cost) that makes his company globally recognized and makes it eligible for e-commerce facility.
3. Complementary BMS Cards: A member is also entitled to receive 5-10 free BMS Cards of Buyers in USA for their product.
4. Free BIR: As a member you are given one free BIR of your Customer in category A & B. 5. Special DUNS Letter: This Letter is specifically tailored to be sent along with the shipping
documents, stating that D&B is the Collection Management against a particular consignment as a precautionary letter.
6. Coverage for 9 Years: RMS subscription covers all the cases that are stuck up for the last 8 years in addition to providing cover the one year in future.
7. Unlimited No. of Claims: A RMS member can lodge unlimited no. of stuck up invoices with D&B for collection. D&B will not charge any commission unless the amount is recovered.
D&B has a Policy of "No Collection no Commission"
PREPARED BY ___________________MBA Registration No: ____________ Page 19 of 47
Dun & Bradstreet is the world's largest Receivable Management and Debt Collection Agency. D&B has been collecting Cross Border accounts for more than 150 Years, handling around 500,000 claims per Year. We are specialist in helping you to get paid in time, on your terms.
Receivable Management Service (RMS) provides you a set of tool; practices and services that will help you manage your receivable professionally and efficiently. We have more than 600 professionals working in over 40 countries ensuring careful handling of your claims and information.
International Credit Information Ltd
Dun & BradstreetCollection Procedure
I. On expiry of a credit term, the customer can ask for "D&B Fast Collection Service." This service constitutes a set of three letters that are sent to the debtor at 10 days intervals. If the amount is recovered through this service, the ICIL/D&B will charge a flat commission of 5% on the amount collected.
II. In case the D&B Fast collection service does not bring about the positive result, the client will then give D&B a Final Clearance to collect on its own behalf. The under-mentioned structure will be applicable then.
International Commission Schedule
Amount Collected Age of invoice Under 120 Days 121-210 Days 211-365 Days
US $ 800-49,999 21% 24% 27%
US $ 50,000-99,999 18% 21% 25%
US $ 100,000 and over 16% 19% 23%
US $ 2.5 billion (30%) of Pakistani exports are on consignment basis (unsecured credit). Every year unpaid export bills remain stuck-up. D&B's global receivable management and debt collection network service is already available on
Pakistani exporters and the banking industry. D&B RMS and debt collection service is again an essential tool for increasing export profitably. D&B have a collection network in 40 countries around the world. D&B Receivable managers and debt collectors have the knowledge of local languages, laws, cultures,
business practices etc. of 40 different countries. In additions to local presence, D&B collectors and receivable managers have in-depth know-how of
international laws, which enables D&B to provide excellent Receivable management services throughout the world.
C) Gerling Export Credit Insurance:
As a part of its Export facilitation services, ICIL now offers "Export Credit Insurance" by Gerling. Namur is 100% owned subsidiary of Gerling Insurance Group of Germany. It is the world's third largest credit insurance company. Today Export Credit Insurance facilities are not available to the Pakistani exporters. 30% of Pakistani exports is going on consignment basis / open accounts which is major global
PREPARED BY ___________________MBA Registration No: ____________ Page 20 of 47
International Credit Information Ltd
Dun & Bradstreetcredit risk. ICIL has entered into co-operation / marketing agreement with Gerling Namur.By arranging export credit insurance it is expected that Pakistani exports can increase. Gerling will cover 85% of invoice value against protracted default and insolvency of overseas buyer. Gerling Credit Insurance policy ahs been scrutinized an international bank for use as a collateral therefore it is considered as financial guarantee for discounting purposes.
Credit Services:
The company provides many corporate/credit services to the banking as well as business sector for the enhancement of the confidence for their decision making.
Cross - border Business information / Credit Reports:
Due to business failures / bankruptcies, doing business globally is becoming riskier day by day. D&B's Credit Reports act as a global credit risk alert.
Will this company pay on time? Is the company well established? How does the company compare with others in the same industry in terms of financial condition and
payment habits? Has the financial condition and stability of a customer changed?
PREPARED BY ___________________MBA Registration No: ____________ Page 21 of 47
International Credit Information Ltd
Dun & Bradstreet
Local Credit Reports:
ICIL provides Credit Reports on Pakistani businesses. These reports are prepared after thorough investigation and contain vital information such as Company contact details, Financial figures, Trade references, management background, etc.
Registered Charges Search Reports:
ICIL provides search reports including registered charges at the Securities & Exchange Commission. ICIL Search reports are developed covering of bank-wise, security-wise and date-wise charges.
Registration of Charge:For the convenience of our banking customers ICIL provides registration of charge documents, creation of charge, and modification of charges and also satisfaction of charges.
CLIENTELE
FINANCIAL SECTOR United Bank Limited
National Bank of Pakistan
Habib Bank Limited
Bank Al-Habib Limited
Askari Commercial Bank Limited
Hong Kong & Shanghai Banking Corporation
PREPARED BY ___________________MBA Registration No: ____________ Page 22 of 47
COMPETITORS:ICIL has been facing a lot of competitors for the corporate services that are as follows:
Projects
Observers
Aslam Associates
Spelvision
Cosmos Corporate Services
Ale Imran
PREPARED BY ___________________MBA Registration No: ____________ Page 23 of 47
National Foods
King Apparel
Mohammad Shafi Tanneries
Mohammad Farooq Textile Mills
Trade Links
Mian Sons Textiles
Royal Garments
Ammar Textiles Pvt. Ltd.
International Credit Information Ltd
Dun & Bradstreet Others
CURRENT MARKET SITUATION:
It is observed from the current market analysis that ICIL is having the major market share of the search
reports because of its effective marketing and product services. Following is the current market share of the
companies;
Name of the Co. Market Share in %ageInternational Credit Information Ltd. 27Projects 15Observers 10Aslam Associates 13Spelvision 8Cosmso Corporate Services 12Ale Imran 4Others 11
PREPARED BY ___________________MBA Registration No: ____________ Page 24 of 47
International Credit Information Ltd
Dun & Bradstreet
PREPARED BY ___________________MBA Registration No: ____________ Page 25 of 47
International Credit Information Ltd
Dun & Bradstreet
Fuji Fertilizer Company LimitedBalance SheetVertical Analysis
As on December, 2000 to December 2002Particulars 2002 Trend 2001 Trend 2000 Trend