MIRA INFORM REPORT

 

 

Report Date :

03.04.2014 

 

IDENTIFICATION DETAILS

 

Name :

HIZON LABORATORIES, INC.

 

 

Registered Office :

Assumption Road,  Samulong Highway, Antipolo City 1870

 

 

Country :

Philippines

 

 

Financials (as on) :

2012

 

 

Date of Incorporation :

09.08.1976

 

 

Legal Form :

Private Corporation

 

 

Line of Business :

Manufacture of pharmaceutical products

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limits

USD 546000

Status :

Satisfactory

Payment Behaviour :

Slow but correct

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Philippines

B1

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

PHILIPPINES - ECONOMIC OVERVIEW

 

The economy has weathered global economic and financial downturns better than its regional peers due to minimal exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from four- to five-million overseas Filipino workers, and a rapidly expanding business process outsourcing industry. The current account balance had recorded consecutive surpluses since 2003; international reserves are at record highs; the banking system is stable; and the stock market was Asia's second best-performer in 2012. Efforts to improve tax administration and expenditure management have helped ease the Philippines' tight fiscal situation and reduce high debt levels. The Philippines has received several credit rating upgrades on its sovereign debt, and has had little difficulty tapping domestic and international markets to finance its deficits. Economic growth in the Philippines averaged 4.5% during the MACAPAGAL-ARROYO administration, but poverty worsened during her term. Growth has accelerated under the AQUINO government, but with limited progress thus far in bringing down unemployment, which hovers around 7%, and improving the quality of jobs. Underemployment is nearly 20% and more than 40% of the employed are estimated to be working in the informal sector. The AQUINO administration has been working to boost the budgets for education, health, cash transfers to the poor, and other social spending programs, and is relying on the private sector to help fund major infrastructure projects under its Public-Private Partnership program. Long term challenges include reforming governance and the judicial system, building infrastructure, improving regulatory predictability, and the ease of doing business, attracting higher levels of local and foreign investments. The Philippine Constitution and the other laws continue to restrict foreign ownership in important activities/sectors (such as land ownership and public utilities)

 

Source : CIA

 

 

 

 

Company name and address

 

Company:                 HIZON LABORATORIES, INC.

Address:                   Assumption Road,  Samulong Highway, Antipolo City 1870

Country:                    PHILIPPINES

Telephone No.:         (63) 2 6975 933

Fax No.:                   (63) 2 6396 571  /  697 5937

Service Type:            Normal

 

 

FINDINGS

 

We conducted research and investigation on HIZON LABORATORIES, INC, and showed the following, viz:

 

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC):  HIZON LABORATORIES, INC.

 

Legal Entity       -     PRIVATE CORPORATION

 

 

REGISTRATION

 

Certificate No.     :     0000069030

Date                   :      August 09, 1976

Term                  :      Fifty (50) years

 

Address (1)                   :     Hizon Building, 29 Quezon Ave., Brgy. Lourdes, Quezon City.

 

Address (2)                   :      Assumption Road, Sumulong, Highway, Antipolo City

 

(Note:  Currency in Philipine Peso, unless otherwise specified)

 

 

CAPITALIZATION  

 

 (As of 2013)

 

Authorized Capital Stock                           -      100,000,000.     –   1,000,000.  shares

Amount Subscribed & Paid Up                  -        75,000,000.

Par value per share                                -                   100.

 

 

PRIMARY PURPOSE

 

Manufacture of pharmaceutical products.

 

 

 

STOCKHOLDERS/DIRECTORS/OFFICERS 

 

(As of                        )

 

Name

Position

Subscribed & Paid Up

1. Rafael H. Hizon Jr.

President / General Manager

100.

2. Primo H. Hizon

Vice President

1,100.

3. Alfredo H. Hizon

Corporate Secretary

300.

4. Jaime H. Hizon

Treasurer

200.

5. Enrique H. Hizon

Director

14,976,200.

6. Ma. Pompeia I. Hizon

 

2,139,400.

7. Lilian I. Hizon

Director

2,139,800.

8. Rafael Alexious I. Hizon III

Director

2,139,500.

9. Ma. Luz I. Hizon

 

2,139,300

10. Annalee I. Hizon

 

2,139,400.

11. Honorio I. Hizon

 

2,139,400.

12. Luz H, Hizon

 

118,800.

13. Jeffrey Thomas C. Hizon

 

7,488,000

14. Jaime C. Hizon

 

7,488,000

15. Frances Joy H. Peralta

 

2,139,300

16. Alfred Allan S. Hizon

 

4,992,000

17. Maria Carina S. Hizon

 

4,992,000

18. Dennis S. Hizon

 

4,992,000

19. Rachel G. Hizon

 

7,487,600

20. Geraldine H. Payumo

 

7,487,600

Total Amount  Subscribed & Paid Up                    75,000,000.

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BUSINESS ACTIVITY

 

As gathered, HIZON LABORATORIES INC. (HLI) first opened  its doors, making it the very first

pharmaceutical manufacturing company in the Philippines.  It survived 2 world wars. The Japanese

occupation during the second world war, destruction of its premises by fire and the permutations of

ownership.  HLI continues to successfully serve the health needs of the Filipino people. It is inarguably the

leading pharmaceutical company in the country today. HIZON LABORATORIES INC. has many years of

pharmaceutical manufacturing experience with credible reputation for quality and prompt delivery of finish

product. Servicing client requirements covers prescriptions medicines, over-the-counter drugs, food

supplements and cosmetics products.

 

 

SERVICES

 

MANUFACTURING: HLI manufacturing strengths are in the following forms: -  . Liquids (syrup; suspension);

Tablets (core tablet; film-coated); Hard Gelatin Capsule Products (multivitamins; analgesic); Soft Gelatin

Capsule Products;  Dry Granules / Powder for Suspension; Creams, Ointment, Lotions / Shampoos;

Parenteral Products in Ampules, Carpules and Vials

 

PACKAGING: Hizon Laboratories, Inc. has the ability to meet high quality Packaging needs. Primary    Packaging -  liquid proof filling with pilfer proof caps; strip packaging; blister packaging, etc. Secondary

Packaging - Labeling of blister strip / box / bottle &. Promotional materials assembly and packaging.

 

 

Website                      :   www.hizonlabs.com

Email                          :   manufacturing@hizonlabs.com

Telepone No.              :   (63) 2 0676241 to 42

 

 

FINANCIAL CONDITION

 

(Audited Financial Statement for years 2012, 2011, & 2010, as compiled)

 

Balance Sheet

 

ASSETS

Current Assets

2012

2011

2010

Cash

206,248,949

207,648,797

115,703,413

Trade and Other Receivables

161,111,206

182,867,160

172,692,813

Inventories

67,013,358

78,325,616

70,000,025

Other Current Assets

8,443,440

11,605,753

13,446,921

Total Current Assets

442,816,953

480,447,326

371,843,172

Non-Current Assets

 

 

 

Property  and Equipment

442,853,066

460,617,315

475,579,665

Available for Sale (AFS) Investments

1,592,000

1,592,000

1,592,000

Investments in Associates

9,699,767

9,722,406

10,010,490

Deposits

3,987,895

3,987,895

3,731,605

Intangible Assets

NIL

300,000

600,000

Total Non-Current Assets

458,132,728

476,219,616

491,513,760

Total Assets

900,949,681

vvvvvvvvvvvvvv

956,666,942

vvvvvvvvvvvvv

863,356,932

Vvvvvvvvvvvvvv

LIABILITIES AND EQUITY

Current Liabilities

 

 

 

Trade and Other Payables

197,210,102

209,699,212

156,478,721

Loans Payable

175,222,448

148,607,584

195,225,675

Income Tax Payable

14,641,426

14,003,476

7,465,551

Total Current Liabilities

387,073,976

372,310,272

359,169,947

Non- Current Liabilities

 

 

 

Due to Shareholders

8,017,038

8,017,038

8,017,038

Mortgage Payable

12,500,000

93,750,000

66,250,000

Deferred Output Tax

1,467,953

1,876,602

2,304,706

Total Non-Current Liabilities

21,984,991

103,643,640

76,571,744

Equity

 

 

 

Share Capital

75,000,000

75,000,000

75,000,000

Cumulative Earnings

384,828,983

373,651,299

320,553,510

Fair Value and Other Reserves

32,061,731

32,061,731

32,061,731

Total Equity

491,890,714

480,713,030

427,615,241

Total Liabilities and Equity

900,949,681

vvvvvvvvvvvvv

956,666,942

vvvvvvvvvvvvv

863,356,932

Vvvvvvvvvvvvv

 

 

INCOME STATEMENT

 

 

2012

2011

2010

Net Sales

796,140,238

809,137,895

706,053,910

Gross Profit

223,016,412

218,613,570

176,169,544

Other Income

13,378,752

15,676,236

15,120,553

Selling Expenses

(     6,847,899 )

(      7,349,655 )

(      7,667,071 )

Administrative Expenses

( 143,721,277 )

(    95,169,753 )

(    98,811,562 )

Other Expenses

(   15,378,102 )

(    19,484,027 )

(    20,850,687 )

Net Income before  Tax

70,447,887

112,286,370

63,960,778

Net Income After Tax

36,200,323

vvvvvvvvvvvvvv

78,385,872

vvvvvvvvvvvvv

40,797,294

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FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.65

UK Pound

1

Rs.99.21

Euro

1

Rs.82.39

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.