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Report Date : |
23.08.2014 |
IDENTIFICATION DETAILS
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Name : |
HIGHNOON LABORATORIES LIMITED |
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Registered Office : |
17.5 Kilometer, |
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Country : |
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Date of Incorporation : |
1984 |
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Com. Reg. No.: |
0011364 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in the manufacture,
import, sale and marketing of pharmaceuticals and allied consumer products |
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No of Employees : |
868 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Pakistan |
B2 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 was 6.6% in 2013, 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. 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 following two years, 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 3.5% per year
from 2008 to 2013. 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 |
HIGHNOON
LABORATORIES LIMITED
|
Registered
Address |
|
17.5 Kilometer, Multan Road, Lahore, Pakistan |
|
Tel |
92 (42) 111-000-465 |
|
Fax |
92 (42) 37510037 |
|
Email |
(1) Office No. 202, Anam
Empire, Block 7/8, KCHS, Shahrah-e-Faisal, Karachi, Pakistan.
(2) 134, Hali Road,
WestridgeI, Peshawar Road, Rawalpindi, Pakistan.
|
a. |
Nature of
Business |
Engaged in the manufacture, import, sale and
marketing of pharmaceuticals and allied consumer products |
|
b. |
Year Established |
1984 |
|
c. |
Registration No. |
0011364 |
|
Ernst & Young Ford Rhodes Sidat Hyder (Chartered
Accountants) |
|
The Company is incorporated in Pakistan as a limited liability company
and is listed at stock exchanges of Pakistan |
|
Names |
Designation |
|
Mr. Tausif Ahmad Khan Mr. Anees Ahmad Khan Mr. Baqar Hasan Mr. Ghulam Hussain Khan Mr. Taufiq Ahmed Khan Mr. Shazib Masud Mst. Siddiqa Begum Mrs. Zainub Abbas Mr. Javed Hussain |
Chairman Vice Chairman Chief Executive Officer Director Director Director Director Director Director |
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Categories |
Shareholding (%) |
|
Directors, CEO and their spouse & minor children Associated Companies, Undertakings and related parties NIT & ICP Banks, Development Financial Institutions, Non Banking Financial
Institutions, Joint Stock Companies & Trust Insurance Companies Modarabas and Mutual Funds Non-Resident Companies General Public Others |
26.01 --- 2.54 3.48 4.52 0.06 8.38 54.99 --- |
Dynalog Services (Pvt) Limited, Pakistan.
Engaged in the manufacture, import, sale and
marketing of pharmaceuticals and allied consumer products
868
The capacity and
production of the company’s plant is indeterminable as it is multi-product and
involves varying processes of manufacture.
|
Mainly exist at major cities of Pakistan |
|
(1) Habib Bank Limited, Pakistan. (2) United Bank Limited, Pakistan. (3) J.S. Bank Limited, Pakistan. (4) Allied Bank Limited, Pakistan. (5) Standard Chartered Bank (Pakistan) Limited, Pakistan. |
Sound
The year 2013 shall be remembered as an exciting and productive year for
Highnoon. It was the year during which many of our brands grew significantly
and our financial results improved. It was fulfillment of the initiatives
necessary to achieve our vision to become a growth driven company, a company known
for its ability to build brands and create sustained value for our
shareholders. The financial results of 2013 have exceeded our expectations. Our
sales grew to Rs. 3 billion registering an increase of 22 percent. Local sales
registered an increase of 23 percent, while export and third party sales
registered an increase of 18 percent and 15 percent respectively. The gross
margin was maintained while operating expenses as a percentage of sales,
remained unchanged. This performance helped us to generate free cash flow of
Rs. 359 million that was used to reduce short term borrowings. The increase in
local sales was mainly driven by volumes that increased by 18 percent over last
year. The volumetric increase came from the established brands and the relatively
new brands. Consistent with the increase in sales volume, the cost of goods
sold increased from Rs.1,440 million to Rs.1,777 million during the fiscal year
2013. Despite increase in costs of imported materials on account of exchange
rate parity and electricity costs; we were still able to maintain margins.
Distribution and sales promotion expenses increased by 23 percent over last
year primarily on account of marketing investments on new products.
Administrative and general expenses were contained and these remained within
limits. Finance cost showed a decline of 58 percent owing to better management
of working capital and available free cash flows that repaid short term
borrowings.
Lahore Chamber of Commerce & Industry.(LCCI)
Pakistan Pharmaceutical Manufacturers Association.(PPMA)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 100.25 |
|
UK Pound |
1 |
Rs. 166.25 |
|
Euro |
1 |
Rs. 133.25 |
Subject Company was established in 1984 and is engaged in the manufacture, import, sale and marketing of pharmaceuticals
and allied consumer products. Directors are reported as qualified,
resourceful and experienced businessmen. Trade relations are reported as fair.
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.60.77 |
|
|
1 |
Rs.100.72 |
|
Euro |
1 |
Rs.80.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.