MIRA
INFORM REPORT
|
Report Date : |
23rd
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
LUPIN
CHEMICALS [THAILAND] LTD. |
|
|
|
|
Registered Office : |
4th Floor, Chathey Building,
8/17-18 North Sathorn Road, Silom,
Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31/03/2005 |
|
|
|
|
Date of Incorporation : |
1987 |
|
|
|
|
Com. Reg. No.: |
0105530000851 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturers,
exporters and distributors pharmaceutical products. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
NAME
LUPIN CHEMICALS [THAILAND] LTD.
SUMMARY
BUSINESS ADDRESS : 4th FLOOR,
CHATHEY BUILDING,
8/17-18 NORTH SATHORN ROAD, SILOM,
BANGRAK, BANGKOK
10500
TELEPHONE : [66]
2637-0200-2, 2233-0960-3
FAX :
[66] 2237-2604,
2237-0131
E-MAIL ADDRESS : lupin@gp.th.com
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 1987
REGISTRATION NO.
: 0105530000851 [Former: 86/2530]
CAPITAL REGISTERED : BHT. 70,000,000
CAPITAL PAID-UP
: BHT. 70,000,000
FISCAL YEAR CLOSING
DATE : MARCH 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
RAMESH CHANDRA SABOO,
INDIAN
PRESIDENT
NO. OF
STAFF : 130
LINES OF
BUSINESS : PHARMACEUTICAL PRODUCTS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD WITH
NORMAL BUSINESS ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on January 6,
1987 as a
private limited company under the name style
LUPIN CHEMICALS [THAILAND]
LTD., originally by
a joint venture
between Lupin Laboratories of India and
GP group of
companies, Thailand, in
order to manufacture
pharmaceutical products for
domestic and international markets. The products are
manufactured strictly adhering
to manufacturing practices
[GMP] duty certified
by Food and
Drug Administration [FDA]
of Thailand. It
currently employs approximately 130 staff.
Subject
currently is a
joint venture between
Lupin Limited, India
and Jedra Enterprise
Ltd., British Virgins Island,
which held around
60% and 35%
of the subject’s shares respectively.
The
subject is the
largest bulk pharmaceutical manufacturing
company in South
East Asia.
The
subject’s registered address
was initially located
at GP House, 71 Sap
Rd., Siphya, Bangrak,
Bangkok 10500.
On
September 26, 2005,
it was relocated to 8/17-18
Cathay House, North
Sathorn Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr.
Desh Bandhu Gupta |
|
Indian |
68 |
|
Ms.
Nishita Shah |
[x] |
Thai |
25 |
|
Mr.
Nilesh Deshbandhu Gupta |
|
Indian |
32 |
|
Mr.
Ramesh Chandra Saboo |
[x] |
Indian |
47 |
|
Mr.
Shirish Sharma |
|
Indian |
38 |
|
Mr.
Satish Khanna |
|
Indian |
53 |
AUTHORIZED PERSON
One
of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Ramesh
Chandra Saboo
is the President.
He is
Indian nationality with
the age of
47 years old.
Mr. V.K.
Hebil is
the Vice President
[Manufacturing & Technical].
He is
Indian nationality.
Mr. Vasant
Kumar is
the Export Manager.
He is
Indian nationality.
Ms. Siriporn Suranaka is the Finance &
Accounting Manager.
She is
Thai nationality.
Mr. Wicha
Sukhumavasee is the Administration &
Personnel Manager.
He is Thai nationality.
BUSINESS OPERATIONS
The
subject is engaged in
manufacturing
pharmaceutical products, specialized
in antibiotics and
tuberculosis active ingredients. The products are
as follows:
Antibiotics
·
Erythromycin Estolate BP/USP
·
Erythromycin Stearate
BP/USP
·
Erythromycin Ethyl
Succinate BP/USP
Antituberculosis Drugs
·
Rifampicin BP/USP
·
Pyrazinamide BP/USP
Intermediates
·
Rifamycin-S
·
3 Formyl-Rifamycin-SV 0
PRODUCTION
800
tons per
annum
PURCHASE
70% of
raw material is
purchased from local
suppliers, and the
remaining 30% is
imported from United States of America, Republic of
China, Japan, Germany,
Taiwan, India and
Malaysia.
MAJOR SUPPLIERS
- Lupin Limited. : India
-
Abbot Laboratories Ltd. : U.S.A.
-
Helm AG. : Germany
-
Maheco Ltd. : Republic of
China
EXPORT
80%
of the products is exported
mainly to United States of America, and
European countries; United
Kingdom, Italy, Germany,
and the rest
to Asian countries,
such as Singapore,
Malaysia, Vietnam, Taiwan
and India.
SALES
20% of
the products is
sold locally by
wholesale to manufacturers and end-users.
MAJOR CUSTOMER
Lupin Limited. : India
SUBSIDIARY AND
AFFILIATED COMPANY
The subject
is not found to have
any subsidiary nor
affiliated company here
in Thailand.
LITIGATION
Bankruptcy and Receivership
There are
no litigation on
bankruptcy and receivership cases filed against
the subject found
at Legal Execution
Department for the
past five years.
Others
There are
no legal suits
filed against the
subject for the
past two years.
CREDIT
Sales are
by cash or
on the credits term of
30-60 days.
Local bills
are paid by
cash or on
the credits term
of 30-60 days.
Imports are
by L/C at sight or
T/T.
Exports are
against L/C at
sight or T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok]
The
Siam Commercial Bank
Public Co., Ltd.
[Head Office :
9 Ratchgadapisek Rd.,
Ladyao, Jatujak, Bangkok]
United
Overseas Bank [Thai]
Public Co., Ltd.
[Head Office :
690 Sukhumvit Rd.,
Klongton, Klongtoey, Bangkok]
Hongkong and Shanghai Banking
Corporation
Bangkok Office
: 968 Rama 4 Rd., Bangrak, Bangkok]
EMPLOYMENT
The
subject employs approximately 130 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading address. Premise
is located in a
prime commercial area.
Factory
and warehouse are
located at Bangpoo
Industrial Estate, 309
Moo 4, Soi 6 Pattana
3 Rd., Praeksa, Muang, Samutprakarn 10280 Tel :
[66] 2324-0478-80
Fax
: [66] 2324-0892
COMMENT
The
subject is one of
the leading manufacturer of pharmaceutical
products for exports.
Its products have
been widely used
in international market
as they were
met with FDA,
in U.S.A. as
well as recognition
of high quality
standard from many
countries in Europe
and Asia.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 30,000,000
divided into 300,000
shares of Bht.
100 each.
The
capital was increased
and decreased later
as following:
Increased
was : Bht.
64,000,000 on March
21, 1989
Decreased
was : Bht.
40,000,000 on August
25, 1989
Increased
was : Bht.
70,000,000 on October
13, 1997
The
latest registered capital
was increased to
Bht. 70,000,000 divided into
700,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as
at July 28,
2005]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Lupin
Limited Nationality: Indian Address :
159 Bombay, India |
420,000 |
60.00 |
|
Sedra
Enterprise Ltd. Nationality: B.V.I. Address :
958 Road Town,
Tortola, British Virgins
Island |
244,997 |
35.00 |
|
Ms. Nishita Shah Nationality: Thai Address :
55/42 Sukhumvit 11 Rd., Klongtoeynua, Wattana, Bangkok
|
34,998 |
5.00 |
|
Ms. Zamira Shah Nationality: Thai Address :
95/42 Sukhumvit 11
Rd., Klongtoeynua, Wattana, Bangkok |
2 |
- |
|
Mr. Sasiporn Suwanaka Nationality: Thai Address :
9 Moo 4,
Samrong, Phrapradaeng, Samutprakarn |
1 |
- |
|
Mr. Thewan Divaree Nationality: Thai Address :
49/67 Charoenkrung Rd.,
Bangkorlaem, Bangkok |
1 |
- |
|
Ms. Supatra Kulanathvanitkul Nationality: Thai Address :
2074/5 Charoenkrung Rd.,
Bangkorlaem, Bangkok |
1 |
- |
Total
Shareholders : 7
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms.
Bongkoch Am-sangiam No.
3684
BALANCE SHEET [BAHT]
The
latest financial figures
published for March
31, 2005 & 2004 were:
ASSETS
|
Current Assets |
2005 |
2004 |
|
|
|
|
|
Cash in
hand & at
Bank |
3,270,931 |
5,673,166 |
|
Trade Accts.
Receivable |
220,574,742 |
247,592,778 |
|
Inventories [note 1] |
106,681,322 |
119,166,745 |
|
Other Current
Assets |
2,017,564 |
3,625,246 |
|
Total
Current Assets |
332,544,559 |
376,057,935 |
|
Fixed
Assets [note 2] |
34,882,973 |
34,455,861 |
|
Cash at
Financial Institute |
49,305,774 |
44,461,813 |
|
Other
Assets |
665,355 |
122,907 |
|
Total
Assets |
417,398,661 |
455,098,516 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Bank Overdraft
& Short Term
Loan from Financial
Institute |
93,393,450 |
142,915,816 |
|
Trade Accts.
Payable -
Related Company |
19,853,203 |
- |
|
-
Other Company |
256,804,859 |
260,220,990 |
|
Accrued Income
Tax |
2,282,071 |
5,106,375 |
|
Other Current
Liabilities |
17,758,508 |
28,044,636 |
|
Total Current Liabilities |
390,092,091 |
436,287,817 |
|
Total
Liabilities |
390,092,091 |
436,287,817 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share
capital : Baht 100 par
value authorized, issued and fully
paid
share capital 700,000
shares |
70,000,000 |
70,000,000 |
|
Capital Paid |
70,000,000 |
70,000,000 |
|
Premium from
Land Cost |
14,000,000 |
14,000,000 |
|
Retained Earning - Unappropriated |
[56,693,430] |
[65,189,301] |
|
Total Shareholders' Equity |
27,306,570 |
18,810,699 |
|
Total Liabilities &
Shareholders' Equity |
417,398,661 |
455,098,516 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
|
Sales |
831,251,898 |
980,713,301 |
|
Gain on
Exchange Rate |
6,752,891 |
22,206,979 |
|
Other Income |
8,258,850 |
9,908,147 |
|
Total
Revenues |
846,263,639 |
1,012,828,427 |
|
Expenses |
|
|
|
|
|
|
|
Cost of
Goods Sold |
767,657,000 |
920,216,676 |
|
Interest Expenses |
830,649,400 |
987,390,255 |
|
Total Expenses
|
830,649,400 |
987,390,255 |
|
Profit
/ [Loss] Before Interest
Expenses & Income
Tax |
15,614,239 |
25,438,172 |
|
Interest Expenses |
[3,210,430] |
[3,812,147] |
|
Income Tax |
[3,907,938] |
[6,861,910] |
|
Net
Profit / [Loss] |
8,495,871 |
14,764,115 |
FINANCIAL NOTE
NOTE
1 Inventories
[Thousand Baht]
|
|
March 31, 2005 |
April 1, 2004 |
|
|
|
|
|
Finished Goods |
48,010 |
56,101 |
|
Assets for
Sale |
16,129 |
19,489 |
|
Goods in
Process |
6,099 |
6,763 |
|
Raw Material |
32,166 |
9,835 |
|
Goods in
Transit |
19,157 |
41,509 |
|
Less: Allowance
for Obsolescent Stock |
[14,880] |
[14,530] |
|
Total |
106,681 |
119,167 |
NOTE
2 Fixed Assets
[Thousand Baht]
|
|
March 31, 2005 |
April 1, 2004 |
|
|
|
|
|
Land
& Equipment |
18,877 |
18,877 |
|
Land |
475 |
475 |
|
Building
& Improvement |
26,619 |
26,619 |
|
Machine
& Equipment |
56,985 |
53,469 |
|
Office Automation & Furniture |
2,491 |
5,160 |
|
Vehicle
|
3,762 |
3,762 |
|
Total |
109,209 |
108,362 |
|
Less:
Depreciation |
[74,326] |
[73,906] |
|
Total |
34,883 |
34,456 |
FINANCIAL ANALYSIS
Annual
Growth & Profitability
|
Annual
Growth |
2005 |
2004 |
|
Sales |
[15.24] |
|
|
Operating |
0.77 |
|
|
Net Profit |
[42.46] |
|
|
Fixed Assets |
1.24 |
|
|
Total Assets |
[8.28] |
|
|
Profitability |
|
|
|
Cost of
Goods Sold |
92.35 |
93.83 |
|
Operating Profit
Margin |
7.65 |
6.17 |
|
S&A expenses |
99.93 |
100.68 |
|
Interest |
0.39 |
0.39 |
|
Other Revenues |
1.81 |
3.28 |
|
Net Profit
Margin |
1.02 |
1.51 |
|
Earning Per
Shares |
12.14 |
21.09 |
|
No. of
Shares |
700,000 |
700,000 |
Net Sales was
decreased by 15.24%,
Operating Profit was
increased by 0.77%,
Net Profit was
decreased by 42.46%,
Fixed Assets was
increased by 1.24%,
Total Assets was
decreased by 8.28%.
Compare each cost
with sales, Cost
of Goods Sold
was decreased from
93.83% to 92.35%,
Operating Profit Margin
was increased from
6.17% to 7.65%,
S & A
Expenses were decreased
from 100.68% to
99.93%, Interest Paid
was stable at
0.39%, Other Revenues
was decreased from
3.28% to 1.81%,
Net Profit Margin
was decreased from
1.51% to 1.02%.
Earning Per
Shares was decreased
from 21.09 baht
per share to
12.14 baht per
share.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
0.85 |
0.86 |
|
Quick
- assets ratio |
0.57 |
0.58 |
Current Ratio
was decreased from
0.86 to 0.85,
show Current Assets
can not cover
Current Liabilities, Liquidity
Ratio of the
company was not
good, and Quick-assets Ratio was decreased
from 0.58 to
0.57, capacity to
pay Short Term
Loan was not
good too, because
Current Assets without
Inventory can not
cover Current Liabilities.
Leverage
|
Leverage |
2005 |
2004 |
|
D/E Ratio |
14.29 |
23.19 |
|
Times Interest
Earned |
[238.93] |
[243.14] |
D/E Ratio was
decreased from 23.19
to 14.29, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the company is high
and Times Interest
Earned was increased
from -243.14 to
-238.93, capacity to
pay interest paid
was not good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets
Turnover |
23.83 |
28.46 |
|
Total Assets
Turnover |
1.99 |
2.15 |
|
Return on
Assets |
2.04 |
3.24 |
|
Return on
Equity |
31.11 |
78.49 |
|
Day’s Payable |
122.10 |
103.22 |
|
Day’s Inventories |
50.72 |
47.27 |
|
Days’ Receivables |
96.85 |
92.15 |
Fixed Assets Turnover
was decreased from
28.46 times to
23.83 times, Total
Assets Turnover was
decreased from 2.15
times to 1.99
times, show the
company could not
use Assets so
efficiently, and Return
on Assets was
decreased from 3.24
to 2.04, Return
on Equity was
decreased from 78.49
to 31.11, capacity
to use Assets to make
profit was not
good.
Day’s Payable
was increased from
104 days to
123 days, Day’s
Inventories was increased
from 48 days
to 51 days, and Day’s
Receivables was increased
from 93 days
to 97 days.
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |