MIRA INFORM REPORT

Report Date :

20.12.2014

IDENTIFICATION DETAILS

Name :	NEPAL PHARMACEUTICALS LAB. (P) LTD.
Registered Office :	Jeetpur, Bara
Country :	Nepal
Financials (as on) :	31.03.2013
Date of Incorporation :	28.02.1986
Legal Form :	Providing pharmaceutical product
Line of Business :	Private Limited Company
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

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Nepal	B1	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

NEPAL ECONOMIC OVERVIEW

Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 22-25% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for more than 70% of the population and accounting for a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of commercially feasible capacity, but political uncertainty and a difficult business climate have hampered foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, persistent power shortages, underdeveloped transportation infrastructure, civil strife and labor unrest, and its susceptibility to natural disaster. The lack of political consensus in the past several years has delayed national budgets and prevented much-needed economic reform, although the government passed a full budget in 2013.

Source : CIA

COMPANY NAME & ADDRESS

NEPAL PHARMACEUTICALS LAB. (P) LTD.

Regd. Office & Factory : Jeetpur, Bara, Nepal.
Tel : (+977-53) 520133, 521142
Email :nplfac@ntc.net.np

Head Office : Om Ashram-14, Birgunj, Parsa
Tel : (+977-51) 521097,528689
Fax : (+977-51) 522084
Email : npl@atcnet.com.np

Marketing Office : Pulchowk, Krishna Galli, Lalitpur, Nepal.
Tel : (+977-1) 5529059, 5529434
Fax : (+977-1) 5529434
Email : nplmkt@wlink.com.np

History

It is a private limited company incorporated at Kathmandu under Govt.

Act No. 2043 of 28.02.1986.

Directors

Prokash Man Prodhan

Keshav Lal Shrestha

Raman Lal Shrestha

Sunil Kumar Shakya

Bankers

1. Nepal Standard Chattered Bank., Kathmandu (Nepal)

2. Nepal Grindlays Bank, Kathmandu (Nepal)

Shareholding Pattern

Shareholders Name	No. of Equity Shares
Prokash Man Prodhan	40%
Keshav Lal Shrestha	40%
Raman Lal Shrestha	20%
Sunil Kumar Shakya	20%
Total	100%

Auditors

N.Amartya & Co

Pulchuwk

Lalitpur,Nepal.

Business

Nepal Pharmaceuticals Laboratory Pvt. Ltd. (NPL) a pharmaceutical company synonymous with high quality product was registered with the Department of Industry HMG on 27th Jestha, 2042 B.S. and had commenced its operation from 28th Poush, 2043 B.S.

 In a short span of 26 years, it has carved out a significant position in the Nepalese pharmaceuticals. Today, NPL has over 300 people working for it as company family members. NPL's plant is located at Jeetpur, Narayani Zone. NPL is a WHO-GMP certified company. NPL is endowed with distinct departments of R&D, QC, QA & Production to ensure the quality drugs. The physical, technical and intangible facilities it has, comply with WHO GMP.NPL has professional marketing forces & the marketing office is situated at Pulchowk, Lalitpur. To enhance the customer services & optimize the customer satisfaction the marketing team is supported by Marketing Planning Department (MPD).

Participative management focused towards customer and employee satisfaction, upgrading the quality of its products, services and ( employees') members' lives, upgrading national technology and assimilating foreign technology is NPL's core philosophy.

1st NEPALESE COMPANY TO

• » achieve “FNCCI National Excellence Award”for three times  (2059 B.S., 2060 B.S., 2062 B.S.).
• » achieve “NICCI Excellence Award 2003”.
• » achieve “FNCCI Service Class Certificate” (2067 B.S.).
• » manufacture Cardiovascular, Psychotropic, Antidiabetic & veterinary medicines.
• » collaborate with Kathmandu University (for conducting
• » bioavailability and bioequivalance testing of medicines & development of manpower)
• » conduct Bioequivalence Study of ‘OQUIN’ & ‘PROATE’
• » receive Health Award 2011 (Best Pharmaceutical Company)

RECENT TECHNOLOGICAL ADVANCEMENT

• » Sterile preparations (ophthalmic, ocular & parenteral products)
• » Sublingual formulations
• » Mouth dissolving tablets

Capitalization Structure

Authorized Share Capital	:	Rs. 5,000,000 divided into 500,000 Equity Shares of Rs. 10/- each.
Issued, Subscribed & Paid Up Capital	:	Rs. 2,616,680 divided into 261,668 Equity Shares of Rs. 10/- each.
Face Value	:	Rs. 10/- each.
Last AGM	:	July 15, 2013

Financial: Balance Sheet

(Amount in Rupees Mln.)

Particular	March 31, 2013	March 31, 2012
Sources of Funds
Share Capital	2.62	0.59
Reserves & Surplus	13.56	3.40
Unsecured Loans	2.67	4.30
Deferred Tax Liability (Net)	0.01	0.01
Total Liabilities	18.86	8.30
Application Of Funds
Gross Block	1.28	0.88
Less: Depreciation	0.43	0.24
Net Block	0.85	0.64
Current Assets, Loan and Advances
Inventories	30.24	22.01
Sundry Debtors	10.84	9.63
Cash And Bank Balances	0.14	0.82
Loans and Advances	2.49	1.31
	43.71	33.77
Less : Current Liabilities & Provisions
Current Liabilities	23.56	25.09
Provisions	2.18	1.06
	25.74	26.15
Net Current Assets	17.97	7.62
Miscellaneous Expenditure	0.04	0.04
Total Assets	18.86	8.30

Remarks

Payments are reported to be correct and regular as per commitments. Trade relations are fair. Consider good for normal business Engagement as usual trade terms & condition.

Import Raw Material

• India
• China
• Singapore
• Denmark
• Korea

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.06
UK Pound	1	Rs. 98.73
Euro	1	Rs. 77.45

INFORMATION DETAILS

Analysis Done by :	RSM
Report Prepared by :	DPT

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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