MIRA INFORM REPORT

Report Date :

13.01.2011

IDENTIFICATION DETAILS

Name :	ELKO ORGANISATION (PVT) LIMITED

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

Country :	Pakistan

Year of Establishment :	1981

Com. Reg. No.:	0008662

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 :	Unknown
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Pakistan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Business Name

ELKO ORGANISATION (PVT) LIMITED

Full Address

Registered Address

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

Tel #	92 (21) 32626625, 32626474
Fax #	92 (21) 32629654
Email	elkopharma@cyber.net.pk

Short Description Of Business

Nature of Business

Manufacture & Marketing of Pharmaceutical Products

Year Established

1981

Registration #

0008662

(Old Registration No was 6511/19810607)

Factory Location

Address	Plot # 27 & 28, Sector 12 / B, North Karachi Industrial Area, Karachi, Pakistan
Tel #	92 (21) 36979356, 36979357
Fax #	92 (21) 36979357

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

A. Subsidiary

None

B. Associated Companies

(1) Hyderi International (Pvt) Limited, Pakistan.

(2) 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

190

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
2009	260,000,000/- (Estimated)

Trade Suppliers

(Foreign)

(1) ROQUETTE INTERNATIONAL, FRANCE.

(2) PURAC ASIA PTE LIMITED, SINGAPORE.

(3) NORTH CHINA PHARMACEUTICAL GROUP, CHINA.

(4) BASELL POLYOLEFIN COMPANY, BELGIUM.

Distributors Network

Mainly exist at all major cities of Pakistan

Exporting Countries

Mainly to Asian, Middle East and European Countries

Bankers

· United Bank Limited, Pakistan.

· Allied Bank Limited, Pakistan.

· MCB Bank Limited, 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. 85.90
UK Pound	1	Rs. 134.37
Euro	1	Rs. 112.09

Comments

Subject Company was established in 1981 and is engaged in manufacture & marketing of Pharmaceutical Products. Market reputation is good. Company can be considered for normal business dealings at usual trade terms and conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.16
UK Pound	1	Rs.70.64
Euro	1	Rs.58.68

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	Capability to overcome financial difficulties seems comparatively below average.	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
----	NB	New Business	----

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%)

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