MIRA INFORM REPORT

 

 

Report No. :

320290.2

Report Date :

13.05.2015

 

IDENTIFICATION DETAILS

 

Name :

NATIONAL PHARMACEUTICAL INDUSTRIES CO SAOG (NPI)

 

 

Registered Office :

Road No. 15 Rusayl Industrial Estate 120 Rusayl 124

 

 

Country :

Oman

 

Financial As on :

31.12.2014

 

 

Date of Incorporation :

14.02.1996

 

 

Com. Reg. No.:

1/51284/6

 

 

Legal Form :

Omani Public Joint Stock Company

 

 

Line of Business :

Engaged in the manufacture of pharmaceutical formulations.

 

 

No. of Employee :

215

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Oman

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

OMAN ECONOMIC OVERVIEW

 

Oman is heavily dependent on dwindling oil resources, which generates 77% of government revenue. It is using enhanced oil recovery techniques to boost production. Muscat has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP from 46% to 9% by 2020. Muscat also is focused on creating more jobs to employ the rising numbers of Omanis entering the workforce. Tourism and gas-based industries are key components of the government's diversification strategy. However, increases in social welfare benefits, particularly since the Arab Spring, have challenged the government's ability to effectively balance its budget as oil prices decline. Despite government acknowledgement that Oman’s expansive social welfare benefits are unsustainable, Oman authorities are comfortable with short-term budget deficits and have approved an expansionary 2015 budget. Concurrently, Oman has expanded efforts to support the development of small and medium-size enterprises and entrepreneurship. Government agencies and large oligarchic group companies have announced new initiatives to spin off non-essential functions to entrepreneurs, incubate new businesses, train and mentor up and coming business people, and provide financing for start-ups.

 

Source : CIA

 

 

SUMMARY

 

Company Name                                    : NATIONAL PHARMACEUTICAL INDUSTRIES CO SAOG (NPI)

Country of Origin                                   : Oman

Legal Form                                           : Omani Public Joint Stock Company

Registration Date                                  : 14th February 1996

Commercial Registration Number           : 1/51284/6

Issued Capital                                       : RO 5,000,000

Paid up Capital                                     : RO 5,000,000

Total Workforce                         : 215

Activities                                               : Manufacturers of pharmaceutical formulations.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                : M V Suresh, Finance Manager

 

 

 


 

COMPANY NAME

 

NATIONAL PHARMACEUTICAL INDUSTRIES CO SAOG (NPI)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Road No. 15

Area                 : Rusayl Industrial Estate

 

PO Box            : 120

 

Town                : Rusayl 124

Country : Sultanate of Oman

 

Telephone         : (968) 24449070 / 24449080 / 24449090

Facsimile          : (968) 24446431

Email                : npico@omantel.net.om

 

Premises

 

Subject operates from a suite of offices and production facilities covering an area of 30,042 square meters that are owned and located in the Industrial Area of Rusayl. The main plant of Orals is of 9,165 square meters. A separate Beta-Lactame plant for Orals is located on 3,110 square meters area and there is also a Utilities area of 1,500 square meters.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Dr Ghazi Omar Al Zubaidi                                                                  Chairman

 

·       Abdullah Monjed Bader Al Qenaei                                                     Vice Chairman

 

·       Amal S Bahwan                                                                                Director

 

·       Fudhalah Saleh Yousef Al Fudhalah                                                  Director

 

·       Rahul Kar                                                                                         Director

 

·       Khaled Al Saeed                                                                               Director

 

·       Meshal Al Jassar                                                                              Director

 

·       M V Suresh                                                                                      Finance Manager

 

·       Dhabia Wana                                                                                    Plant Manager

 

·       Liaqat Al Bloushi                                                                              Public Relations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject was registered on 14th February 1996 and commercial production commenced in  2001

 

Legal Form                  : Sharikat Al Mousahama Al Omania (Societe Anonyme Omani

  General - SAOG) (Omani Public Joint Stock Company)

 

Commercial Reg. No.   : 1/51284/6

 

Issued Capital              : RO 5,000,000

 

Paid up Capital            : RO 5,000,000

 

Name of Shareholder (s)                                                        Percentage

 

·       Ritaj Holding                                                                                    69.60%

Kuwait

 

·       Suhail Bahwan Group                                                            30.00%

PO Box: 169

Muscat

Tel: (968) 24561377

Fax: (968) 24561631

 

·       Members of the general public & private investors                   0.40%

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of pharmaceutical formulations.

 

Subjects facilities comprises of two hi-tech plants to manufacture beta-Lactame and Non beta-Lactame products, as well as a quality control laboratory and an in house research and development facility.

 

Production Capacity:    The Company produced 2.91 million Syrups & Suspensions, 208.97 million tablets and 3.79

million sachets in its non-beta lactum plant and 0.60 million dry suspension and 137.44 million capsules in its beta lactum plant.

 

Import Countries: Europe and the United States of America

 

Subject has a workforce of approximately 215 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

Balance Sheet                                                  31/12/14                       31/12/13

 

Non-current assets                                            4,194,721                      4,414,831

 

Inventories                                                        2,847,533                      2,672,943

Accounts receivable                                          4,379,982                      4,708,113

Due from related parties                                                1,052,286                         575,562

Bank balances and cash                                       110,917                          94,853

Short term deposits                                           2,912,582                      3,010,481

Total current assets                                          11,303,300                    11,061,952

 

Shareholders’ funds

Share capital                                                     5,000,000                      5,000,000

Legal reserve                                                       368,807                         277,183

Special reserve                                                      11,364                         11,364

Retained earnings                                                 868,959                         844,347

Total shareholders’ equity                                  6,249,130                      6,132,894

 

Non-current liabilities

Government loan                                               4,325,000                      4,625,000

End of service benefits                                        249,996                         220,931

Total non-current liabilities                                  4,574,996                      4,845,931

 

Current liabilities

Accounts payable                                                890,341                         761,901

Due to related parties                                             48,063                          20,609

Current portion of government loan                       300,000                         150,000

Bank borrowings                                               3,435,491                      3,565,448         

Total current liabilities                                        4,673,895                      4,497,958

Total liabilities                                                   9,248,891                      9,343,889

Total shareholders’ equity and liabilities             15,498,021                    15,476,783

 

Profit & Loss Account

           

Sales                                                              10,040,270                      9,230,624

Cost of sales                                                  (6,520,183)                     (6,127,954)

Gross profit                                                     3,520,087                       3,102,670         

Other income                                                       75,413                           91,659

                                                                       3,595,500                       3,194,329

 

Product development costs                                  89,921                         107,187

Salaries and employee related costs                  324,833               280,407

Depreciation                                                       30,420                            29,896

Administration and selling                                 1,855,621                       1,481,645

Finance charges                                                253,528                          231,225

                                                                       2,554,323                       2,130,360

                                                                       

Profit before taxation                                       1,041,177                       1,063,969

Taxation                                                            (124,941)                       (127,676)

Net profit                                                          916,236               936,293

 

Local sources consider subject’s financial condition to be Fair.

 

 

BANKERS

 

·       National Bank of Oman Limited (SAOG)

Mutrah Business District

PO Box: 751, Ruwi 112

Muscat

Tel: (968) 24708894 / 24708630 / 24708684

Fax: (968) 24707781 / 24703972

 

·       Bank of Oman, Bahrain & Kuwait

     Rusayl Branch

     PO Box: 4708, Ruwi

     Muscat

     Tel: (968) 24446140

 

·       Bank Muscat SAOG

Ruwi Main Branch

       PO Box: 6326

       Muscat

       Tel: (968) 24561399 / 24708543

       Fax: (968) 24561036

 

·       Oman Arab Bank

PO Box: 2010

Muscat

Tel: (968) 24706265

Fax: (968) 24797736

Acc No. 3101241600300

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

National Pharmaceutical Industries Co SAOG (NPI) was established in 1996 and was the first pharmaceutical formulations manufacturer in the Sultanate of Oman.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.20

UK Pound

1

Rs.100.03

Euro

1

Rs.71.91

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

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.