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MIRA
INFORM REPORT
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Report Date : |
20.01.2011 |
IDENTIFICATION DETAILS
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Name : |
NATIONAL PHARMACEUTICAL INDUSTRIES COMPANY (SAOG) |
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Registered Office : |
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Country : |
Sultanate of |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
14.02.1996 |
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Com. Reg. No.: |
1/51284/6 |
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Legal Form : |
Omani General Joint Stock Company |
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Line of Business : |
Manufacturers and distributors of pharmaceutical products and
medicines for the supply in the local market and for export. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
RO 150,000 |
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Status : |
Moderates |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company NAME
National Pharmaceutical Industries Company
(SAOG) (Correct)
National Pharmaceutical
Industries Co (Requested)
ADDRESS
Building :
Street : Road No. 15
Area : Rusayl Industrial Estate
P.O. Box : 120
Rusayl 124
Town :
Country :
Telephone: (968) 2444
9070/80/90 ext.151 (M. V. Suresh)
Fax : (968) 2444 6431
E-Mail : khalid@npioman.com / npico@omantel.net.om
Website : www.npioman.com
Shortform Name
: NPI
SENIOR COMPANY PERSONNEL
Name Position
1. Dr. Ghazi Omar
Al Zubaidi Chairman
2. Ali Mubarak A J
Al Dabbous Vice Chairman
3. Gensant
Sridhar Chief Executive Officer
4. M. V.
Suresh Vice President Finance
5. K.
Nandajobal Internal
Auditor
6. Khaled
Osman Accounts Manager
Total Employees :
228
PAYMENTS
No complaints have
been heard regarding payments from local suppliers or banks.
We consider it is acceptable
to deal with subject for MEDIUM amounts.
Opinion on maximum
credit : RO 150,000
Trade risk
assessment :
SIGNIFICANT CHANGES
GCC US$3.08
million order
In September 2003
National Pharmaceutical Industries Co. was awarded
an order for
US$3.08 million from the Executive Board of the Health
Ministers Council
for GCC States.
TRADE REFERENCES
NAME : SAINT GOBAIN DESJONQUESRES
Street : Les Miroirs, La Defebse 3
Town : 18 A V D
Country :
NAME : ROQUETTE FRERES
Town : 62136 Lestrem
Country :
NAME : MALLINCKRODT CHEMICAL
Street :
P. O. Box : 5840
Town :
State : MO 63134
Country :
NAME : ANCHOR MARK
Street : 9 Shantinagar Co-op Indusyrial Estate
Area : Shantinagar Vakola Pipeline
Town : Santacruz (East), Mumbai 400 055
Country :
PRINCIPAL BANKERS
NAME : BANK
Branch : Main Branch
Street :
PO Box : 134 Ruwi 112
Town :
Telephone: (968)
2470 3044 / 2478 8638 / 2470 8653
Fax : (968) 2478 9886 / 2478 8638
The company also
has an account with the following banks :
1. Oman Arab Bank (SAOG)
MBD Area
Telephone: (968) 2470 6265
Fax
: (968) 2479 7736
2. Bank Dhofar
Telephone: (968) 2483 1090 / 2483 5854
Fax
: (968) 2483 1892
AUDITORS
1. BDO Jawad Habib
& Co
Al Harthy Complex
Al Qurum
Ruwi 112
Telephone: (968) 2456 7322
Fax
: (968) 2456 3272
Email
: bdojawad@omantel.net.om
2.
Telephone : (968) 2481 2041
Fax
: (968) 2481 2043
FINANCIAL INFORMATION
Balance sheets as
of 31 December 2009 showed :
STATEMENT OF
FINANCIAL POSITION
2009 2008
(in Omani Riyals)
ASSETS
NON-CURRENT ASSETS
Property, plant and
equipment 5,102,537 5,330,065
Intangible
asset
109,800 –
Total non-current
assets 5,212,337 5,330,065
CURRENT ASSETS
Inventories
1,435,938 1,929,556
Accounts and other
receivables 3,528,132 2,284,286
Short term
deposits 3,682,175 3,602,493
Due from a related
party 183,260 129,930
Bank balances and
cash 149,920 303,925
Total current
assets
8,979,425 8,250,190
Total Assets 14,191,762 13,580,255
EQUITY AND LI
EQUITY
Share capital 5,000,000 5,000,000
Legal reserve 7,085 2,945
Special
reserve
11,364 11,364
Accumulated
losses
(886,537) (923,792)
Total equity 4,131,912 4,090,517
LI
NON-CURRENT LI
Government soft
loan
3,909,319 3,940,125
Deferred government
grant 1,030,681 1,019,875
Employee’s end of
service benefits 125,069 69,616
Total non-current
liabilities 5,065,069 5,029,616
CURRENT LI
Accounts and other
payables 1,199,397 779,079
Due to related
parties
33,014 42,291
Bank
borrowings
3,742,370 3,618,752
Current portion of
Government soft loan 20,000 20,000
Total current
liabilities
4,994,781 4,460,122
Total
liabilities
10,059,850 9,489,738
Total Equity and
Liabilities 14,191,762 13,580,255
STATEMENT OF
COMPREHENSIVE INCOME
INCOME
Sales
7,606,670 3,611,159
Cost of sales (5,526,123) (3,222,367)
Gross profit 2,080,547 388,792
Other income 16 123,499 41,521
2,204,046 430,313
EXPENSES
Product development
costs 131,543 51,088
Administration and
selling 1,671,414 806,628
Finance
charges
359,694 394,254
2,162,651 1,251,970
PROFIT / (LOSS) AND
TOTAL COMPREHENSIVE
INCOME FOR THE
YEAR
41,395 (821,657)
The following
Balance sheet as at 30 September 2010 (3rd Quarter Results) applies to National
Pharmaceutical Industries Company (SAOG):
STATEMENT OF
FINANCIAL POSITION
30/9/2010 30/9/2010
(9
Months) (9 Months)
(in Omani Riyals)
ASSETS
NON-CURRENT ASSETS
Property, plant and
equipment and
total non-current
assets 4,989,037 5,163,297
Intangible
Assets
114,259 -Total
non-current assets
5,103,296 5,163,297
CURRENT ASSETS
Inventories 1,370,283 1,250,085
Accounts and other
receivables 2,316,703 3,073,277
Short term
deposits
3,766,048 3,679,623
Due from related
parties
209,404 127,258
Bank balances and
cash 107,776 91,341
Total current
assets
7,770,214 8,221,584
Total assets 12,873,510 13,384,881
EQUITY AND LI
EQUITY
Share capital 5,000,000 5,000,000
Legal reserve 7,085 2,945
Special
reserve
11,364 11,364
Accumulated
losses
(715,897) (907,023)
Total equity /
(deficiency of assets)
4,302,552 4,107,286
LI
NON-CURRENT LI
Government soft
loan
4,053,864 3,909,319
Deferred government
grant 866,136 1,030,681
Employees’ end of
service benefits 147,681 111,390
Total non-current
liabilities 5,067,681 5,051,390
CURRENT LI
Accounts and other
payables 900,405 1,021,414
Due to related
parties 19,522 30,800
Bank
borrowings
2,563,350 3,153,991
Current portion of
Government soft loan 20,000 20,000
Total current
liabilities
3,503,277 4,226,205
Total liabilities 8,570,958 9,277,595
Total equity and
liabilities
12,873,510 13,384,881
STATEMENT OF
COMPREHENSIVE INCOME
INCOME
Sales
4,434,437 5,633,514
Cost of sales (3,168,946) (4,206,597)
Gross profit 1,265,491 1,426,917
Other income 82,267 92,751
1,347,758 1,519,668
EXPENSES
Product development
costs 46,618 67,165
Administration and
selling 896,241 1,166,336
Finance
charges
234,259 269,398
1,177,118 1,502,899
PROFIT FOR THE
PERIOD
170,640 16,769
* 2010 results are
not yet available.
Financial year
ends 31 December.
Loans
a) The Government
soft loan, obtained from the Government of the
Sultanate of
repayable in ten
equal annual instalments, commencing from 8 April
2005 and carried
3% (2007 - 3%) rate of interest.
b) The Company had
applied for the restructuring of the repayment
schedule prior to
the first instalment falling due for payment. Since
the restructuring
schedule was not finalised, the Company did not
settle the first,
second and third instalments that were due during
the years 2005,
2006 and 2007 nor did the bank demand the settlement
of these
instalments.
During the year,
the repayment of the Government soft loan was
rescheduled by the
Ministry of Finance as follows:
- annual
instalments of RO 20,000 each payable during the years 2008
and 2009;
- the balance over
10 equal annual instalments of RO 496,000 over the
years 2010 to
2019;
c) The penal
interest arising as per the terms of the loan agreement
on account of non
payment of the first, second and third instalments
of the loan as per
the original repayment schedule has not been
provided in these
financial statements, as neither does the loan
restructuring
proposal indicate penal interest nor has the bank
confirmed penal
interest at the balance sheet date.
d) The loan is
secured by a charge on the Company's property, plant
and equipment
[note 4 d)].
e) In accordance
with IAS 39 and the Capital Market Authority
circular 01/2002,
the Company has determined the fair value of the
term loan by
discounting the repayments at 8% (being the commercial
borrowing rate) and
recognised the discounted present value as the
loan liability.
The balance has been transferred to deferred
Government grant
account.
LEGAL STATUS AND HISTORY
Date Started : 14
February 1996
History : National
Pharmaceutical Industries Company (SAOG) was
incorporated on 14 February 1996,
following a flotation of
92% of its equity with the following
shareholders :
Government of
LLC (6.0%), Oryx Joint Investment
Fund (6.0%), Bahwan
Trading Company LLC (9.9%), Trading
and Industrial
Enterprises LLC (9.9%) and Members of
public (26.2%).
The total cost of the project was RO 11
million. Trial
production began late 1999.
Commercial production commenced
in June 2000.
Abdul Kader Ahmad Askalan (CEO of
Oman Arab Bank) was
formerly Chairman of NPI; he was
succeeded by Dr Ghazi Omar
Al Zubaidi (Director General of
In March 2008, Al Ritaj Holding Co,
majority stake in the Company and the
shareholding
structure changed to the present.
During 2008, the Company's capital
was restructured by way
of capital reduction of RO 7.50
Million to write off the
accumulated losses to that extent.
The capital was raised
to RO 5 Million by way of a rights
issue.
C.R. No. :
1/51284/6 (issued on: 1 September 1996, expiry date : 13 February 2011)
Chamber of
Commerce Membership No.: 861 (issued on: 1 September 1996, expiry date : 27
February 2013)
Authorised Capital
: RO 11,000,000
Paid up Capital :
RO 5,000,000
Societe Anonyme
Omani Generale (Omani general joint stock company)
with the following
directors and shareholders :
Directors
1. Dr. Ghazi Omar Al Zubaidi
Director General of
2. Ali Mubarak A J Al Dabbous
Businessman
3. Fahad Salim Ahmed Al Kinaimish
Director
4. Ms Amal Bint Suhail Bahwan
representing Bahwan Trading Co. LLC
5. Mukesh Sawhney
representing Middle East Investment LLC
6. Khalifa Salman Al Mohannadi
representing Al Ritaj Holding Co
7. Mohammed Kunwar Ghazaly
Vice President - Investments- Al Ritaj
Investment Co
Shareholders
Percentage
1. Al Ritaj Investment Company (via Al Ritaj
Holding Co) 69.46%
Dasman 15451
Telephone: (965) 2184 1234 / 2224 5900
Fax
: (965) 2249 5001 / 2224 5901
Email
: info@ritaj.com
Website
: www.ritaj.com
2.
Telephone: (968) 2470 6162
Fax
: (968) 2470 6087
3. Members of the general public 0.54%
ACTIVITIES
The Company is
involved in the following activities :
Manufacturers and
distributors of pharmaceutical products and medicines for the supply in the
local market and for export.
Subject produces
analgesic, anit-allergic, anti-bacterial, gastro
intestinal,
anti-diabetic, cardio vascular and anti-depressant drugs
amongst others.
In 2009, 3.86
Million syrups & suspensions, 305.33 Million tablets and 14.19 Million sachets
in its non-beta lactum plant and 1.52 Million dry suspension and 241.74 Million
capsules in its beta lactum plant.
Imports from
GCC countries.
Exports to GCC and
Middle Eastern countries, mainly to
FACILITIES
The Company has
the following facilities :
30,042 sq. m owned
premises comprising administrative offices and
a manufacturing
unit with storage facilities located at the heading
address.
The total built up
area is of 15,195 square meters. The
administration building is of 1,420 square meters. The main plant of Orals is of 9,165 square meters. A separate
Beta-Lactum plant for Orals is located on 3,110 square meters area. Besides the
above, Utilities area of 1,500 square meters.
The plant was
constructed at Rusayl by L & T Oman (a joint venture
between L & T
Ltd,
is built to
stringent quality requirements conforming to the
US-FDA
regulations.
Subject previously
used :
Ruwi 112
Telephone: (968) 629 070 / 590 101 / 596 203
Fax :
(968) 686 2631 / 596 204 / 596 010
SPECIAL NOTE
Interviewed :
Khaled Osman (Accounts Manager)
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.45.38 |
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|
1 |
Rs.72.71 |
|
Euro |
1 |
Rs.61.15 |
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 |
|
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 |
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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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.