MIRA
INFORM REPORT
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Report Date : |
03.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
GLAXOSMITHKLINE PAKISTAN LIMITED |
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Formerly Known As : |
GLAXO WELLCOME PAKISTAN LIMITED |
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Registered Office : |
35-Dockyard Road, West
Wharf, Karachi – 74000 |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1948 |
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Com. Reg. No.: |
00000304
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Legal Form : |
Limited Liability Company Listed on the Karachi and Lahore Stock Exchanges of Pakistan |
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Line of Business : |
Manufacture and
Marketing of research based ethical specialties, other pharmaceutical, animal
health and consumer health care products. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Business Name
GLAXOSMITHKLINE PAKISTAN LIMITED
Full Address
Registered Address
35-Dockyard Road,
West Wharf, Karachi - 74000, Pakistan
Tel 92 (21) 2315101 - 8 & 2315478 - 82
Fax 92 (21) 2311105 & 2314898
Factories
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Address |
F/268, S.I.T.E., P.O. Box No. 3686, Karachi, Pakistan. |
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Tel |
92 (21) 2570665 - 9 & 2564355 - 65 |
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Fax |
92 (21) 2564749 & 2564729 |
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Address |
19.5 KM, Ferozpur Road, P.O. Box 244, Lahore, Pakistan. |
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Tel |
92 (42) 5811931 - 4 |
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Fax |
92 (42) 5811940 |
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Address |
D/43, Textile Avenue, S.I.T.E., P.O. Box No. 3686, Karachi, Pakistan. |
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Tel |
92 (21) 2578600 – 9 |
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Fax |
92 (21) 2563668 |
Short Description Of Business
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Nature of Business |
Manufacture and Marketing of research based
ethical specialties, other pharmaceutical, animal health and consumer health
care products. |
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Year Established |
1948 |
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Registration # |
00000304
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Auditors
A. F. Ferguson & Co.
(Chartered Accountants)
Legal Status
The company is incorporated in Pakistan as a limited liability company and is listed on the Karachi and Lahore Stock Exchanges of Pakistan.
Change of name
The Company’s name changed from “Glaxo Wellcome Pakistan Limited” to “GlaxoSmithKline Pakistan Limited”. The change takes place following the legal merger of the business of M/S Smith Kline & French of Pakistan Limited and Beecham Pakistan (Private) Limited with Glaxo Wellcome Pakistan Limited in 2002.
Details of Chief
Executive/Directors
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Names |
Designation |
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Mr. M. Salman Burney Mr. Tariq Iqbal Khan Mr. Rafique Dawood Mr. Shahid Mustafa Qureshi Mr. Ghulam Mustafa Aziz Dr. Muzaffar Iqbal Mr. S. Masood Abbas Jaffery |
Chairman / Chief Executive Non-Executive Director Non-Executive Director Company Secretary Chief Financial Officer Technical Director Director Marketing & Sales |
Categories of Shareholders
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Categories of
Shareholders |
Number
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Shares Held |
Percentage |
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Individuals Investment Companies Insurance Companies Joint Stock Companies Financial Institutions Associated Companies Central Depository Company (b) Others |
2,620 4 5 14 8 2 1,003 5 |
3,855,132 2,109 2,622,897 41,013 43,428 68,840,073 11,963,783 15,549 |
4.41 0.00 3.00 0.05 0.05 78.78 13.69 0.02 |
Holding Company
GlaxoSmithKline plc incorporated in United Kingdom is the parent company. As at December 31, 2004, GlaxoSmithKline International Luxembourg and SmithKline Beecham Intercredit, B.V. Netherlands (subsidiaries of the parent company), and their nominees held 40,385,875 and 28,454,363 shares of Rs. 10 each respectively.
Products
Augmentin, Amoxil, Ampiclox, Ceporex, Bactroban, Septran, Penbritin,
Zinacef, Zinnat, Fortum, Floxy, Orbenin, Wellcodox, Syraprim, Panadol, Calpol,
Dicofen, Empirin Compound, Iodex, Seretide, Ventide, Ventolin, Flixotide,
Beconase, Serevent, Becotide, Amphyll, Avandia, Zantac, Tagamet, Marzine, Milk
of Magnesia, Seroxat, Imigran, Requip, Lamictal, Kemadrin, Migril, Egerix –B,
Havrix, Infanrix, Tritanrix, Fluarix, Hiberix Typherix, Varilrix, Priorix,
Fefol-Vit, Revitale-M, Revitale-B, Starvits, Cytacon, Uniplex, Cytamen,
Wellcosine, Cytexin, Zeffix, Valtrex, Zovirax, Hepsera, Betnesol, Cortisporin,
Polyfax, Betnesol, Otosporin, Lidosporin, Actified, Piriton, Actidil, Cutivate,
Betnovate, Polyfax, Cicatrin, Lotrix, Pilzcin, Betnelan, Furacin, Silvate,
Lanoxin, Angised, Halfan, Dependal-M, Furoxone, Tracrium, Hycamtin, Zofran,
Zyloric, Imuran, Thyroxin, Relifex, Aquafresh, Macleans, Sensodyne, Horlicks,
ENO.
Number of Employees
1,893
Capacity And Production
The capacity and production of the company’s plant is indeterminable as it is multi-product and involves varying processes of manufacture.
Distribution / Sales Offices (All
Over
Pakistan)
(1) F/268, S.I.T.E., P.O. Box No. 3686, Karachi.
(2) Cordeiro House, Plot No. 27, Kot Lakhpat
Industrial Estate, Kot Lakhpat, Lahore.
(3) Plot No. 77/80, Block ‘B’, Friends Co-operative
Housing Society, Akhuwat Nagar,
Shahrah-e-Tasneem, Airport Road, Sukkur.
(4) Aleem House, Plot No. 409, Sector 1-9,
Industrial Area, Islamabad.
(5) Islam-ud-din House, Mehmood Kot, Bosan
Road, Multan.
(6) D’souza House, Nasirpur, Near Abid Flour
Mills, G.T. Road, Peshawar.
Exports
Exports, which mainly comprised of Betnovate Cream, Actified Syrups and Septran, were to Adechsa-Switzerland and Glaxo Wellcome Sri Lanka.
Bankers
(1) ABN Amro Bank NV.
(2) American Express Bank Limited.
(3) Citibank NA.
(4) Standard Chartered Bank.
(5) The Hongkong and Shanghai Banking Corporation Limited.
(6) Union Bank Limited.
(7) United Bank Limited.
(8) Habib Bank Limited.
Payment
Regular.
Future Outlook
GlaxoSmithKline Pakistan aims to create value for its shareholders by continuing to provide affordable healthcare products to it’s customers many of which are the most cost effective treatment options available to the doctors and patients. The Company will also continue to focus on introducing innovative medicine which are developed through it’s global R & D efforts. An area of particular focus for the Company in Pakistan is the area of preventive healthcare & vaccines. GlaxoSmithKline is the world’s leading developer and manufacturers of vaccines. The potential to cost effectively prevent disease and protect health in Pakistan is significant and the Company sees this as an area of great opportunity for adding value to the healthcare situation in the country. The year 2007 is likely to be challenging, in particular for the Pharmaceutical industry in Pakistan. The industry has great potential for growth, however, its sustained success depends on a regulatory environment which is able to balance the interests of this research based industry, with the need for affordable healthcare. Prices for pharmaceutical products remain unchanged since 2001 and there has been no offset given to account for the adverse impact of increasing inflation (particularly in energy and fuel costs), raw and packing material costs and devaluation.
Foreign Exchange Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 61.45 |
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UK Pound |
1 |
Rs. 126.20 |
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Euro |
1 |
Rs. 89.80 |
Comments
Subject Company is well known and directors are resourceful and experienced businessmen. Trade relations are reported as fair. Payments to creditors etc are reported as normal. The Company can be considered good for normal business dealings at usual trade terms and conditions. MAX CREDIT LIMIT: PKR 20 MILLION.
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GLAXOSMITHKLINE PAKISTAN
LIMITED |
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BALANCE SHEET AS AT
DECEMBER 31, 2006 |
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2006 |
2005 |
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2006 |
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2005 |
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SHARE CAPITAL AND RESERVES |
Rupees '000 |
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NON-CURRENT ASSETS |
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Rupees '000 |
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Authorised capital |
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Fixed assets - property,
plant and equipment |
1,774,449 |
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1,503,102 |
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150,000,000 |
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ordinary shares of Rs. 10 each |
1,500,000 |
1,500,000 |
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Long-term loans |
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35,786 |
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39,568 |
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Issued, subscribed and paid-up capital |
1,365,375 |
1,092,300 |
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Long-term deposits |
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6,808 |
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7,008 |
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Reserves |
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6,171,543 |
5,645,662 |
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Investments |
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96,425 |
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191,674 |
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7,536,918 |
6,737,962 |
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NON-CURRENT LIABILITIES |
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CURRENT ASSETS |
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Staff retirement benefits - staff gratuity |
66,057 |
158,469 |
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Stores and spares |
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64,996 |
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52,877 |
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Stock-in-trade |
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2,195,407 |
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1,972,953 |
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Deferred taxation |
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137,041 |
97,385 |
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Trade debts |
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84,697 |
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64,881 |
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203,098 |
255,854 |
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Loans and advances |
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64,589 |
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62,781 |
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Trade deposits and prepayments |
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76,420 |
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62,592 |
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CURRENT LIABILITIES |
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Accrued return |
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189,829 |
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66,624 |
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Other receivables |
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88,846 |
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56,107 |
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Trade and other payables |
1,598,432 |
900,021 |
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Investments - available for sale |
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99,100 |
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196,045 |
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Cash and bank balances |
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4,666,470 |
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3,990,150 |
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Taxation |
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105,374 |
372,525 |
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7,530,354 |
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6,525,010 |
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1,703,806 |
1,272,546 |
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CONTINGENCIES AND
COMMITMENTS |
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9,443,822 |
8,266,362 |
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9,443,822 |
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8,266,362 |
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GLAXOSMITHKLINE PAKISTAN LIMITED |
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PROFIT & LOSS ACCOUNT |
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FOR THE YEAR ENDED DECEMBER 31, 2006 |
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2006 |
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2005 |
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Rupees '000 |
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Net sales |
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10,088,247 |
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9,416,881 |
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Cost of goods sold |
(6,221,581) |
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(5,570,494) |
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Gross profit |
3,866,666 |
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3,846,387 |
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Selling, marketing and distribution expenses |
(1,053,388) |
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(901,671) |
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Administrative expenses |
(436,821) |
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(362,287) |
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Other operating expenses |
(221,662) |
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(225,186) |
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Other operating income |
496,390 |
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350,402 |
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Operating profit |
2,651,185 |
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2,707,645 |
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Financial charges |
(19,316) |
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(13,246) |
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Profit before taxation |
2,631,869 |
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2,694,399 |
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Taxation |
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(966,906) |
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(880,731) |
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Profit after taxation |
1,664,963 |
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1,813,668 |
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Earnings per share - Basic and diluted |
Rs. 12.19 |
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Rs. 13.28 |
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RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)