MIRA INFORM REPORT

Report Date :

09.11.2013

IDENTIFICATION DETAILS

Name :	W. WOODWARD PAKISTAN (PVT) LTD (WWP)

Registered Office :	41, Bahadur Yar Jhang Society, Amir Khusro Road, Karachi

Country :	Pakistan

Date of Incorporation :	16.03.1954

Com. Reg. No.:	0000654

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturers, Importer and Marketing of Medicines.

No. of Employees :	300

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 :	No complaints

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 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 under 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 almost 12% for 2011, before declining to 10% in 2012. 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 fiscal year 2012, 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 about 3% per year from 2008 to 2012. 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 and rapidly urbanizing population, more than half of which is under 22. Other long term challenges include expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, and reducing dependence on foreign donors

Source : CIA

GENERAL INFORMATION

Business Name	W. WOODWARD PAKISTAN (PVT) LTD. (WWP)
Address	41, Bahadur Yar Jhang Society, Amir Khusro Road, Karachi. Factory: F-275, Site, Karachi.
Telephone	(+92) (21) 34528909, 34528901
Fax	(+92) (21) 34545794
Email	akhtarimam.ww@mgcpakistan.com
Website	www.mgcpakistan.com
Business activities	Manufacturer of Medicines

Registry Details

CRO Registration Number	0000654
Date of Registration	March 16, 1954

Other registry details:

Current Legal Form	Private Limited Liability Company
National Tax Registration Number	0712594-1
Date of Registration	28-Jan-1996
GST Registration Number	1100300001737
Date of Registration	27-Aug-1996

Capital

Type	No. of Shares	Par Value	Total Value
Authorized	1,500,000	10	15,000,000
Issued, Subscribed & Paid-Up	1,470,000	10	14,700,000

History

Who started	Mr. Junaid Khalil
When started	March 16, 1954
Change in management	No change
Year of change	No change
Change in legal status	No change
Year of change	No change
Change in business address	No change
Year of change	No change

PRINCIPALS (SPONSORS)

Name	Number of Shares	Nationality	Appointment Date (Last)
Mr. Khurram Khalil	638,151	Pakistani	04 SEP 2011
Mr. Junaid Khalil	734,241	Pakistani	04 SEP 2011
Other Shareholder
Ms. Humaira Parveen	97,608
Total Paid Up Capital	1,470,000

KEY MANAGEMENT

Name	Position in organization	Qualification	Years in employment
Mr. Junaid Khalil	CEO	Undetermined	Undetermined
Mr. Akhtar Imam	Finance Manager/ Company Secretary	Not disclosed	Not disclosed
Mr. Mustunsar Billah	Manager Marketing	Undetermined	Undetermined

Statutory offices

Name of service provider

Statutory Auditors

M/s Tanveer Afzal & Co.

Chartered Accountants

Legal Advisory Services

M/s Badar Alam & Co.

Law Associates

BANKERS

Bank name	Approved financing limits PKR
MCB Bank Ltd	43,150,000

DETAILS OF BUSINESS ACTIVITIES

The core business focus of WWP is Manufacturer of Medicines.WWP Manufacturers, Importer and Marketing of Medicines.

Product names are:

Woodwards Gripe Water, Calwood - C, Vitamin C Powder, Baby Rash Cream

Purchases (Incl. Imports)

Imports from	Japan, USA & India
Importing terms	L/C
Local	All over Pakistan
Local buying terms	Cash and Credit of 30-45 days

Sales (Incl. Exports)

Exports to	N/A
Exporting terms	N/A
Local (%)	All over Pakistan
Local selling terms	Cash and Credit of 15-30 Days

NUMBER OF EMPLOYEES

Nature of employment	Current Year	Previous Year
Permanent	300	250
Total	300	250

BUSINESS FACILITIES

Head office Address

Owned / Rented

Area (approx)

41, Bahadur Yar Jhang Society, Amir Khusro Road, Karachi.

Owned

1000 sq. yards

Factory Address

Owned / Rented

Area (approx)

F-275, Site, Karachi.

Owned

Undetermined

MARKET REPUTATION

Three local suppliers and a player in the same line of business were contacted to get a feedback about WWP, its products and sponsors. All the feedback was found Satisfactory and no disputes or untoward events including complaints about quality of products were reported/ identified during inquiry.

DETAILS OF RELATED BUSINESSES

None reported by the contact person or identified during investigation.

BUSINESS PERFORMANCE

Business performance could not be analyzed as the contact person refused to share financial information.

INTERVIEW & REPORTER COMMENTS

Contact person	Mr. Akhtar Imam
Position	Finance Manager /Company Secretary
Comments	Mr. Akhtar Imam confirmed business operations and business information however; he refused to share financial information.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.73
UK Pound	1	Rs.100.92
Euro	1	Rs.84.06

INFORMATION DETAILS

Report Prepared by :

PDT

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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