MIRA INFORM REPORT

Report Date :

20.03.2007

IDENTIFICATION DETAILS

Name :	ELKO ORGANISATION (PVT) LIMITED

Registered Office :	21, Wahab Arcade, M.A. Jinnah Road, Karachi

Country :	Pakistan

Date of Incorporation :	1981

Com. Reg. No.:	6511/19810607

Legal Form :	Private Limited Company

Line of Business :	Manufacture & Marketing of Pharmaceutical Products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Business Name

ELKO ORGANISATION (PVT) LIMITED

Full Address

Registered Address

21, Wahab Arcade, M.A. Jinnah Road, Karachi, Pakistan

Tel	92 (21) 2626625, 2626474
Fax	92 (21) 2629654
Email	elkopharma@cyber.net.pk

Short Description Of Business

Nature of Business	Manufacture & Marketing of Pharmaceutical Products
Year Established	1981
Registration #	6511/19810607

Factory Location

Address	Plot # 27 & 28, Sector 12 / B, North Karachi Industrial Area, Karachi, Pakistan
Tel #	92 (21) 6979356, 6979357
Fax #	92 (21) 6979357

Auditors

Hussain Associates

(Chartered Accountants)

Suite # 7, Z-264/265, C.P. Berar Society, Karachi, Pakistan

Legal Status

Subject Company was established as a Private Limited Company in 1981

Authorised Capital	Rs. 25,000,000/- divided into 250,000 shares of Rs. 100/- each
Issued, Subscribed & Paid up Capital	Rs. 20,000,000/- divided into 200,000 shares of Rs. 100/- each

Details of Directors

Names

Nationality

Address

Occupation

Designation

Mr. S. Mohammad Ahmed

Mr. Jawaid Akhter

Mr. Shakil Ahmed Chandna

Mr. Nadim Ahmed Chandna

Mr. Tasnim Akhter

Pakistani

88, Overseas Co-operative Housing Society, Karachi

107, Overseas Co-operative Housing Society, Karachi

88, Overseas Co-operative Housing Society, Karachi

89, Overseas Co-operative Housing Society, Karachi

107, Overseas Co-operative Housing Society, Karachi

Business

Chief Executive

Director

Shareholders

Names of Shareholders

No of Shares

Mr. S. Mohammad Ahmed

Mr. Shakil Ahmed Chandna

Mr. Jawaid Akhter

Mr. Tasnim Akhter

Mrs. Hameeda Khatoon

Mrs. Shamima Khatoon

Mr. Nadim Ahmed Chandna

90,600

23,750

36,810

14,090

2,000

9,000

23,750

Associates

Subsidiary

None

Associated Companies

Hyderi International (Pvt) Limited, Pakistan.

Conagent (Pvt) Limited, Pakistan.

Products

Azosin, Bacus, Bestar, Betalol, Blephapred, Blink Fresh, Burnazin, Elkobiotic, Chloramphenicol, Cromozil, Dexoptic, Dexoptic-C, Durum, Elirax, Elkazole, Elkocaine, Elkogent, Elkomin, Elkopal, Elkopan, Elkoplex, Elkopyron, Elkotax, Elmox, Elxone, Elzin, Flkacillin, Fusac, Levosan, Lincomycin, Metidal-M, Nostamin, Novodox, Ocuflur, Oculerg, Optafen, Optofen, Optoflox, Optolube, Optopred, Osran, Otoflox, Oxycrom, Pepgard, Santirol, Santobrex, Santochlor, Santodex, Santovir, Sepcin, Serenex, Tarisin, Terbisan, Topcef, Tracnesan, Tropic, Viscogel, Xoline

Number of Employees

Between 150 and 160

Annual Production Volume

The capacity and production of the company’s plant is indeterminable as it is multi-product and involves varying processes of manufacture

Annual Sales Volume

Year	In Pak Rupees
2005	200,000,000/- (Estimated)

Agencies (Foreign)

(1) ROQUETTE INTERNATIONAL, FRANCE.

(2) PURAC ASIA PTE LIMITED, SINGAPORE.

(3) NORTH CHINA PHARMACEUTICAL GROUP, CHINA.

(4) BASELL POLYOLEFIN COMPANY, BELGIUM.

Distributors

Mainly in all important cities of Pakistan

Exporting Countries

Mainly to Asian, Middle East and European Countries

Bankers and their addresses

(1) United Bank Limited, Bunder Road Branch, Karachi, Pakistan

Pharmaceutical Industry Scenario In

Pakistan

Development of pharmaceutical companies over the past few years has played a vital role in the change and development of healthcare in Pakistan. Being a developing nation, resources have been limited and lack of infrastructure has limited the access of meaningful healthcare for a large part of the population. Pharmaceutical industry since only 5% of the total production of Pakistan’s pharma industry is exported. First, a bigger share of the world pharmaceuticals markets is becoming generic (15% of the US $ 440 billion total global pharmaceutical market) and the share of generic drugs was further increasing as there are more drugs going off patent compared to the influx of new, patented drugs. Pakistan pharmaceutical industry being a generic manufacturing industry at large can take advantage of this phenomenon. There is still a very large market for the exports of pharmaceuticals from Pakistan. Only CIS/CAR markets, Africa and least developed countries in ASIA combine to make a total market of approximately 5 billion US Dollars. In the sense, there is still a great potential to invest in the pharmaceutical sector in Pakistan.

Memberships

Pakistan Pharmaceutical Manufacturers Associations.(PPMA)

Karachi Chamber of Commerce & Industry.(KCCI)

Federation Pakistan Chamber of Commerce & Industry.(FPCCI)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 60.75
UK Pound	1	Rs. 117.80
Euro	1	Rs. 80.50

Comments

Subject Company was established in 1981 and is engaged in manufacture & marketing of Pharmaceutical Products. Payments to creditors are reported as correct and as per commitments. The Company can be considered for normal business dealings at usual trade terms and conditions.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
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
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
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
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
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions