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Report Date : |
07.05.2013 |
IDENTIFICATION DETAILS
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Name : |
NOVARTIS PHARMA (PAKISTAN) LIMITED |
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Registered Office : |
15, West Wharf Road, Karachi - 74000 |
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Country : |
Pakistan |
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Date of Incorporation : |
1963 |
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Com. Reg. No.: |
0001679 |
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Legal Form : |
Public Unlisted Company |
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Line of Business : |
Importers, Manufacturers and distributors of
Pharmaceutical Products. |
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No. of Employees : |
580 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Pakistan |
B2 |
B2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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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 |
NOVARTIS PHARMA (PAKISTAN)
LIMITED
Registered Address &
Factory
|
|
15, West Wharf Road, Karachi - 74000,
Pakistan. |
|
Tel # |
92 (21) 32313386 - 90, 32202071 - 80 |
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Fax # |
92 (21) 32311009, 32310027 |
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a. |
Nature of Business |
Importers, Manufacturers
and distributors of Pharmaceutical Products. |
|
b. |
Year Established |
1963 |
|
c. |
Registration # |
0001679 |
In Islamabad, Lahore, Peshawar & Multan
A.F. Ferguson & Co.
(Chartered
Accountants)
State Life Building 1-C, Off I.I. Chundrigar
Road, Karachi-74000, Pakistan.
Novartis Pharma (Pakistan) Limited is a public unlisted company
incorporated in Pakistan.
|
6. |
Authorized Capital |
Rs. 3,875,000,000/- divided into 387,500,000
shares of 10/- each |
|
|
Issued & Paid up Capital |
Rs. 3,860,408,000/- divided into 386,040,800
shares of Rs. 10/- each |
|
Names |
Designation |
|
Mr. Shahab Rizvi Mr. Christopher Snook Mr. Merajuddin Mr. Rainer Boehm Mr. Badruddin Vellani Mr. Francesco Balestrieri Mr. Syed Khalid Noor |
Chief Executive Director Director Director Director Director Director |
|
Categories |
Shareholding
(%) |
|
Individuals Modarabas Joint Stock Companies Financial Institution |
0.02 0.00 99.98 0.09 |
Novartis AG, a company organized and existing under
the laws of Switzerland, is the Company’s parent company.
Subject Company is engaged
in the import, manufacture, sale and distribution of pharmaceutical products.
580
The capacity and production of the company’s plant is indeterminable as it is multi-product and involves varying processes of manufacture.
|
Years |
In Pak Rupees |
|
2011 2012 |
8,708,796,000/- 9,761,458,000/- |
All over in Pakistan
1) MCB Bank Limited, Pakistan.
2) Faysal Bank Limited, Pakistan.
3) Habib Metropolitan Bank Limited, Pakistan.
4) Habib Bank Limited, Pakistan.
5) Silk Bank Limited, Pakistan.
6) Soneri Bank Limited, Pakistan.
The future is likely to remain challenging, given the continued
devaluation of the rupee and the corresponding increase in operating costs. It
is hopeful that the drug regulatory
authority of Pakistan will soon agree to an inflationary price adjustment mechanism.
The Company will continue to use all possible means to appeal and make
representations to the drug regulatory authority of Pakistan and other
healthcare stakeholders. We are continuing to upgrade our manufacturing
facilities at Jamshoro, in terms of quality & capacity as means towards
improving operational efficiencies in Pakistan.
·
KCCI
·
PPMA
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 99.75 |
|
UK Pound |
1 |
Rs. 153.00 |
|
Euro |
1 |
Rs. 130.35 |
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.53.95 |
|
|
1 |
Rs.84.03 |
|
Euro |
1 |
Rs.70.72 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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 |
|
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.