MIRA INFORM REPORT

 

 

Report Date :

14.02.2014

 

IDENTIFICATION DETAILS

 

Name :

PFIZER PAKISTAN LIMITED (PPL)

 

 

Formerly Known As :

PARKE DAVIS & COMPANY LTD

 

 

Registered Office :

12- Dockyard Road, West Wharf Karachi- 74000

 

 

Country :

Pakistan

 

 

Financial (as on) :

30.06.2013

 

 

Date of Incorporation :

10.12.1960

 

 

Com. Reg. No.:

0001223  

 

 

Legal Form :

Public Limited

 

 

Line of Business :

Manufacturer of Medicines

 

 

No. of Employees :

1000

 

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Pakistan

B2

B2

 

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

 

 

 

 


Company name and address

 

PFIZER PAKISTAN LIMITED (PPL)

 

 

GENERAL INFORMATION

 

Business Name

Pfizer Pakistan Ltd. (PPL)

(formerly Parke Davis & Company Ltd) 

Address

12- Dockyard Road, West Wharf Karachi- 74000

Telephone

(+92) (21) 32200121-5, 32570621-5

Fax

(+92) (21) 32310051

Email

pakistan.info@pfizer.com    

Website

www.pfizer.com.pk 

Business activities

Manufacturer of Medicines

           

Registry Details

 

CRO Registration Number

0001223  

Date of Registration

December 10, 1960

 

Other registry & certification details:

Current Legal Form

Public Limited

National Tax Registration Number

0711606-3

Date of Registration

October 25, 1995

GST Registration Number

Undetermined

Date of Registration

Undetermined

Chamber of Commerce & Industry

Karachi Chamber of Commerce & Industries

ISO Certification

Undetermined

 

Capital

Type

No. of Shares

Par Value

Total Value

Authorized

Rs. 20,000,000

Rs. 10

Rs. 200,000,000

Issued, Subscribed & Paid-Up

Rs. 3,295,924

Rs. 10

Rs. 32,959,240

 

History

Who started

Mr. John J Powers Jr. Laid

When started

December 10, 1960

Change in management

None

Year of change

N/A

Change in legal status

None

Year of change

N/A

Change in business name

Parke Davis & Company Ltd. to Pfizer Pakistan Ltd.

Year of change

2010

 

PRINCIPALS (SPONSORS)

 

Name

Number of Shares

Nationality

Appointment Date (Last)

Mr. Iqbal Bengali

1

Pakistani

April 19, 2008

Mr. Badaruddin F. Vellani

1

Pakistani

April 19, 2008

Syed Ali Asghar Naqvi

Undetermined

Pakistani

September 19, 2013

Mr. Iftikhar Soomro

1

Pakistani

September 19, 2013

S.M. Wajeehuddin

Undetermined

Pakistani

September 19, 2013

Syed Tilal Safdar

Undetermined

Pakistani

September 19, 2013

 

 

KEY MANAGEMENT

 

Name

 

Position in organization

Qualification

Years in employment

Dr. Farid Khan

CEO

Undetermined

Undetermined

Mr. Rehan

Finance Manager

Undetermined

Undetermined

Mr. S.M. Wajeehuddin

Company Secretary

Undetermined

Undetermined

 

Statutory offices

Name of service provider

Statutory Auditors

M/s KPMG Taseer Hadi & Co

Chartered Accountants

Legal Advisory Services

M/s Rizvi, Isa, Afridi & Angel

Law Associates

 

 

BANKERS

 

Bank name

Approved financing limits PKR

Deutsche Bank AG

420,000,000

Standard chartered bank ltd

225,460,000

Citi Bank NA

Depository relation

 

 

DETAILS OF BUSINESS ACTIVITIES

 

The core business focus of PPL is Manufacturing, Distribution and Marketing of Pharmaceutical Products. 

Pfizer Pakistan has been working for the health and well-being of people in Pakistan since 1959. Pfizer Inc. Chief Executive, Mr. John J Powers Jr. Laid the foundations for the first plant to be established in the industrial port area of West Wharf on 5th of February, 1959. The first collaboration was with local distributor, Dumex which led to the distribution of Pfizer products as manufacturing fully started in the year 1961.

Pfizer Pakistan has always remained instrumental in addressing the healthcare challenges faced by the country, meeting them by providing the expertise the company holds in this sector.

PPL provide access to safe, innovative and affordable medicines to millions of Pakistanis. Having a portfolio of medicines that prevent, treat and cure diseases across a range of therapeutic areas allows Pfizer Pakistan to enjoy the reputation of being a leading drug maker in the country.

Pfizer’s Pakistan affiliate provides livelihoods to thousands of households directly and indirectly and employs over 1000 people. The Pakistan affiliate is also responsible for managing distribution networks in Afghanistan.

Products:

Anne French

Fibre Ispaghol

Chap Stick

Alpha Balm

 

Purchases (Incl. Imports)

Imports from

China, India

Importing terms %

L/C

Local %

Sindh – Punjab

Local buying terms

Cash and Credit of 30 days

 

Sales (Incl. Exports)

Exports to

Afghanistan

Exporting terms

Advance Basis

Local (100%)

All over Pakistan

Local selling terms

Cash and Credit of 30 Days

 

 

NUMBER OF EMPLOYEES

 

Nature of employment

Current Year

Previous Year

All Staff

1000

Undetermined

 

Total

1000

Undetermined

 

 

 

BUSINESS FACILITIES

 

Head office Address

Owned / Rented

Area (approx)

12- Dockyard Road, West Wharf Karachi- 74000.

Undetermined

Undetermined

Warehouse address

Owned / Rented

Area (approx)

S-33, Hawkes bay Road, SITE Karachi, Pakistan

Undetermined

Undetermined

Regional Office

Owned / Rented

Area (approx)

Industrial Triangle Kahuta Road Islamabad.

Undetermined

Undetermined

Plant address

Owned / Rented

Area (approx)

B-2 Site, Karachi.

Undetermined

Undetermined

 

 

MARKET REPUTATION

 

Six distributors were contacted to get a feedback about PPL, 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

 

Business Name

City

Line of Business

Percentile of Shareholding

None

 

 

BUSINESS PERFORMANCE

 

Particulars

30-Jun-13

30-Jun-12

 % Change

 

             (Rs. 000)

 

Current assets

            5,019,389

            4,901,885

          2.40

Current liabilities

             (957,866)

           (1,013,142)

        (5.46)

Working capital

             4,061,523

             3,888,743

          4.44

 

 

 

 

Non-current assets

            1,058,907

               913,212

        15.95

Long term liabilities

             (109,059)

               (72,160)

        51.13

Net worth

             5,011,371

             4,729,795

          5.95

 

 

 

 

Turnover

             6,333,350

             5,731,783

        10.50

Gross Profit

            1,973,807

            1,976,612

        (0.14)

EBIT

            1,072,788

            1,039,439

          3.21

Profit / (Loss) before tax

               866,847

               794,928

          9.05

Provision for taxation

             (238,063)

             (379,831)

       (37.32)

Profit / (Loss) after tax

                 628,784

                 415,097

         51.48

 

 

 

 

Creditors

                 957,866

             1,013,142

         (5.46)

Debtors

                         484

                            -  

 

Cash & bank balances

             2,394,505

             2,413,681

         (0.79)

 

 

 

 

Growth trend

 

 

 

Sales growth (%)

10.50%

 

 

Gross profit growth (%)

-0.14%

 

 

 

 

 

 

 

 

Solvency

 

 

 

Current ratio

                  5.24

                  4.84

 

Quick ratio

                  3.16

                  3.03

 

Total liabilities to net worth ratio (%)

                 21.29

                 22.95

 

 

 

 

 

Profitability

 

 

 

Return on sales (%)

                    9.93

                    7.24

 

Return on net worth (%)

                  12.55

                    8.78

 

 

           

INTERVIEW & REPORTER COMMENTS

 

Contact person

Mr. Rehan

Position

Finance Manager

Contact Person Comments

Mr. Rehan confirmed business operations and business information however; he refused to share financial information.    

Analyst’s Observations/ comments

The office of the concern was well established with all the necessary facilities for this kind of business.

Fifty to fifty five employees were present in the office.

Samples of medicines were observed at the office of the concern.

Office is located in main industrial area of Karachi.

Pharmacia Pakistan (Pvt.) Ltd merged into Parke Davis in January 2007 and later in 2010 the name was changed to Pfizer Pakistan Ltd.

Pfizer Pakistan Ltd. also acquired Pfizer Laboratories Ltd in 2009.

Satisfactory Stocks of Medicine were inspected at the time of visit.

Signboard was placed in the factory.

All machines were observed in working condition.   

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.27

UK Pound

1

Rs.103.47

Euro

1

Rs.84.87

 

 

INFORMATION DETAILS

 

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.