MIRA INFORM REPORT

Report Date :

19.10.2012

IDENTIFICATION DETAILS

Name :	SANOFI AVENTIS PAKISTAN LIMITED

Registered Office :	Plot No. 23, Sector 22, Korangi Industrial Area, Karachi

Country :	Pakistan

Financials (as on) :	31.12.2011

Year of Establishment :	1967

Com. Reg. No.:	0002579

Legal Form :	Public Limited Company

Line of Business :	Manufacture & Marketing of Pharmaceutical Products

No. of Employees :	550 employees

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 :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES:

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ECGC Country Risk Classification List – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Pakistan

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

pakistan - ECONOMIC OVERVIEW

Decades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. Agriculture accounts for more than one-fifth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings, and Pakistan's failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Official unemployment is 6%, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty - the UN Human Development Report estimated poverty in 2011 at almost 50% of the population. Inflation has worsened the situation, climbing from 7.7% in 2007 to more than 13% for 2011, before declining to 9.3% at year-end. As a result of political and economic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis. Although the economy has stabilized since the crisis, it has failed to recover. Foreign investment has not returned, due to investor concerns related to governance, energy, security, and a slow-down in the global economy. Remittances from overseas workers, averaging about $1 billion a month since March 2011, remain a bright spot for Pakistan. However, after a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to deficit in the second half of 2011, spurred by higher prices for imported oil and lower prices for exported cotton. Pakistan remains stuck in a low-income, low-growth trap, with growth averaging 2.9% per year from 2008 to 2011. Pakistan must address long standing issues related to government revenues and energy production in order to spur the amount of economic growth that will be necessary to employ its growing population. Other long term challenges include expanding investment in education and healthcare, and reducing dependence on foreign donors.

Source : CIA

Business Name

SANOFI AVENTIS PAKISTAN LIMITED

Full Address

Registered Address & Factory

Plot No. 23, Sector 22, Korangi Industrial Area, Karachi, Pakistan

Tel #	92 (21) 35060221, 35060235
Fax #	92 (21) 35060358, 35062830

Short Description Of Business

a.	Nature of Business	Manufacture & Marketing of Pharmaceutical Products
b.	Year Established	1967
c.	Registration #	0002579

Factories Locations

(1) A-25, S.I.T.E., Hyderabad, Pakistan.

(2) 13th Km. Multan Road, Hanwarwal, Lahore, Pakistan.

(3) Plot No. 1/C-7, Industrial Area Near Bilal Cotton Factory, Multan, Pakistan.

(4) 7th Km. Shehbazpur Road, Rahim Yar Khan, Punjab, Pakistan.

Auditors

Ernst & Young Ford Rhodes Sidat Hyder

(Chartered Accountants)

Legal Status

Subject Company was established as a Public Limited Company in 1967

Details of Directors

Names

Designation

Mr. Syed Babar Ali

Mr. Tariq Wajid

Mr. Arshad Ali Gohar

Mr. Hussain Lawai

Mr. Syed Hyder Ali

Mr. Shailesh Ayyangar

Mr. Francois-Xavier Duhaide

Mr. Jean-Marc Georges

Mr. M.Z. Moin Mohajir

Chairman

Managing Director

Director

Shareholders

Categories

Percentage

Associated Companies, Undertakings & Related Parties

NIT & ICP

Directors, CEO & their Spouses

Public Sector Companies & Corporations

Banks, Development Finance Institutions, Non-Banking Finance Institutions

Insurance Companies

Others

Individuals

65.45

2.38

11.61

13.31

2.16

0.20

0.47

4.42

Holding Company

The company is a subsidiary of SECIPE, France, holding 5,099,469 (2009: 5,099,469) ordinary shares of Rs.10 constituting 52.88% of the issued share capital of the company. The ultimate parent of the Group is sanofi aventis S.A., France.

Products

Manufacture & marketing of different pharmaceutical class like Anti Biotic, Anti Malarials, Anti-Rheumatic, Antihistamine, Narcotic Analgesic, Non Steroidal Respiratory Anti Inflamatory, Quinolones, Vitamins, Phenothiazine, Hypolipidaemics, Muscle Relaxant etc

Number of Employees

550

Annual Production Volume

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

Annual Sales Volume

Year	In Pak Rupees
2011	7,619,460,000/-

Trade Suppliers

(Foreign)

Subject mainly import from Companies belongs to European Countries, China, Korea, Taiwan, India

Distributors

Mainly exist at major cities of Pakistan

Bankers

· Deutsche Bank AG, Pakistan.

· Citibank N.A., Pakistan.

· Habib Bank Limited, Pakistan.

· Standard Chartered Bank, Pakistan.

· HSBC Bank Middle East Limited, Pakistan.

· MCB Bank Limited, Pakistan.

· The Royal Bank of Scotland, Pakistan.

Future Outlook

The Pharmaceutical Environment both globally and locally is posing new challenges and becoming tougher with each passing day for the existing industry players primarily due to patent expiration; NCE / generic registration; pricing challenges and GMP practices etc. On the other hand it is also creating an opportunity for the global companies in the emerging markets known as “Pharmerging Markets”. Therefore, notwithstanding unforeseen events, we believe your company has the potential to maintain sales growth in line with the industry trend and the company's management is continuously focused in taking initiatives for improving business performance as well as overall profitability.

Memberships

· Pakistan Pharmaceutical Manufacturers Associations.(PPMA)

· Karachi Chamber of Commerce & Industry.(KCCI)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 95.30
UK Pound	1	Rs. 152.60
Euro	1	Rs. 124.00

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. Subject can be considered for normal business dealings at usual trade terms and conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.96
UK Pound	1	Rs.85.45
Euro	1	Rs.69.46

INFORMATION DETAILS

Report Prepared by :

MNL

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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