MIRA
INFORM REPORT
|
Report Date : |
15.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
LINARIA CHEMICALS [THAILAND] LTD. |
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Registered
Office : |
4th Floor,
Cathey Building, 8/17-18 North, Sathorn Road,
Silom, Bangrak, Bangkok 10500 |
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Country
: |
Thailand
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
1987 |
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Com.
Reg. No.: |
0105530000851 |
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Legal
Form : |
Private Limited
Company |
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Line
of Business : |
Manufacturing pharmaceutical products. |
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
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
name
LINARIA CHEMICALS [THAILAND] LTD.
FORMER
LUPIN CHEMICALS
[THAILAND] LTD.
SUMMARY
BUSINESS ADDRESS : 4th FLOOR,
CATHEY BUILDING, 8/17-18 NORTH
SATHORN ROAD,
SILOM, BANGRAK, BANGKOK
10500
TELEPHONE : [66] 2696-8783-9
FAX : [66] 2237-2604,
2237-0131
E-MAIL ADDRESS : hebliveekay@hotmail.com,
linaria@linariachem.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 : 160
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, 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.
On June
26, 2006, subject
was changed its
name to be
LINARIA CHEMICALS [THAILAND]
LTD. It currently
employs approximately 160
staff.
Subject currently
is a joint venture between
Indowest Holding 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 Cathey 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.
Nirand Sindhupakorn |
|
Thai |
61 |
|
Ms.
Nishita Shah |
[x] |
Thai |
26 |
|
Mr.
Shirish Sharma |
|
Indian |
39 |
|
Mr.
Ramesh Chandra Saboo |
[x] |
Indian |
48 |
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
48 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
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
-
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.
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 & D/A.
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 160
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.
REMARK
CREDIT OF
US$ 150,000 AGAINST D/A
TERMS SHOULD BE
IN ORDER.
COMMENT
The subject is
one of the leading manufacturers of pharmaceutical
products for exports.
Its products have
been widely used
in international markets
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 June 16, 2006]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Indowest Holding
Ltd. Nationality: Mauritius Address :
Port Louis, Mauritius |
420,000 |
60.00 |
|
Jedra 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,
2006 & 2005
were:
ASSETS
|
Current
Assets |
2006 |
2005 |
|
|
|
|
|
Cash in
hand & at
Bank |
2,443,755 |
3,270,931 |
|
Trade Accts.
Receivable |
168,252,421 |
220,574,742 |
|
Inventories [note 1] |
115,549,813 |
106,681,322 |
|
Other Current
Assets |
2,010,519 |
2,017,564 |
|
Total
Current Assets |
288,256,508 |
332,544,559 |
|
|
|
|
|
Fixed
Assets [note 2] |
33,895,655 |
34,882,973 |
|
Fixed Deposit |
49,780,762 |
49,305,774 |
|
Other
Assets |
752,984 |
665,355 |
|
Total
Assets |
372,685,909 |
417,398,661 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2006 |
2005 |
|
|
|
|
|
Bank Overdraft
& Short Term
Loan from Financial Institute |
101,700,494 |
93,393,450 |
|
Trade Accts.
Payable |
223,380,281 |
276,658,062 |
|
Accrued Income
Tax |
- |
2,282,071 |
|
Other Current
Liabilities |
11,851,513 |
17,758,508 |
|
Total Current Liabilities |
336,932,288 |
390,092,091 |
|
Total
Liabilities |
336,932,288 |
390,092,091 |
|
|
|
|
|
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 |
|
Land-Revaluation Surplus |
14,000,000 |
14,000,000 |
|
Retained Earning - Unappropriated |
[48,246,379] |
[56,693,430] |
|
Total Shareholders' Equity |
35,753,621 |
27,306,570 |
|
Total Liabilities &
Shareholders' Equity |
372,685,909 |
417,398,661 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales |
838,306,968 |
831,251,898 |
|
Other Income |
2,726,901 |
15,011,741 |
|
Total
Revenues |
841,033,869 |
846,263,639 |
|
Expenses |
|
|
|
|
|
|
|
Cost of
Goods Sold |
761,299,902 |
767,657,000 |
|
Selling &
Administrative Expenses |
65,615,713 |
62,992,400 |
|
Total Expenses |
826,915,615 |
830,649,400 |
|
Profit
/ [Loss] Before Interest
Expenses & Income Tax |
14,118,254 |
15,614,239 |
|
Interest Expenses |
[3,851,638] |
[3,210,430] |
|
Income Tax |
[1,819,565] |
[3,907,938] |
|
Net
Profit / [Loss] |
8,447,051 |
8,495,871 |
FINANCIAL NOTE
NOTE
1 Inventories
[Thousand Baht]
|
|
2006 |
2005 |
|
|
|
|
|
Raw Material |
21,283 |
32,166 |
|
Goods in
Process |
6,704 |
6,099 |
|
Finished Goods |
37,591 |
48,010 |
|
Assets for
Sale |
23,483 |
16,129 |
|
Goods in
Transit |
35,756 |
19,157 |
|
Total |
124,817 |
121,561 |
|
Less: Allowance
for Obsolescent Stock |
[9,267] |
[14,880] |
|
Total
|
115,550 |
106,681 |
NOTE
2 Fixed Assets
[Thousand Baht]
|
|
2006 |
2005 |
|
|
|
|
|
Land
& Equipment |
31,352 |
31,352 |
|
Building
& Improvement |
26,619 |
26,619 |
|
Machine
& Equipment |
126,451 |
124,547 |
|
Office Automation & Furniture |
3,148 |
2,491 |
|
Vehicle
|
3,762 |
3,762 |
|
Total |
191,332 |
188,771 |
|
Less: Depreciation |
[145,436] |
[141,888] |
|
Obsolescent Stock |
[12,000] |
[12,000] |
|
Total
|
33,896 |
34,883 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Sales |
0.85 |
|
|
Operating |
[10.34] |
|
|
Net Profit |
[0.57] |
|
|
Fixed Assets |
[2.83] |
|
|
Total Assets |
[10.71] |
|
|
Profitability |
|
|
|
Cost of
Goods Sold |
90.81 |
92.35 |
|
Operating Profit
Margin |
1.68 |
1.88 |
|
S&A expenses |
7.83 |
7.58 |
|
Interest |
0.46 |
0.39 |
|
Other Revenues |
0.33 |
1.81 |
|
Net Profit
Margin |
1.01 |
1.02 |
|
Earning Per
Shares |
12.07 |
12.14 |
|
No. of
Shares |
700,000 |
700,000 |
Net Sales
was increased by
0.85%, Operating Profit
was decreased by
10.34%, Net Profit
was decreased by
0.57%, Fixed Assets
was decreased by
2.83%, Total Assets
was decreased by
10.71%.
Compare each
cost with sales,
Cost of Goods
Sold was decreased
from 92.35% to
90.81%, Operating Profit
Margin was decreased
from 1.88% to
1.68%, S &
A Expenses were
increased from 7.58%
to 7.83%, Interest
Paid was increased
from 0.39% to
0.46%, Other Revenues
was decreased from
1.81% to 0.33%,
Net Profit Margin
was decreased from
1.02% to 1.01%.
Earning Per
Shares was decreased
from 12.14 baht
per share to
12.07 baht per
share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
0.86 |
0.85 |
|
Quick
- assets ratio |
0.51 |
0.57 |
Current Ratio
was increased from
0.85 to 0.86,
show Current Assets
can not cover
Current Liabilities, Liquidity
Ratio of the
company was not
good, and Quick-assets Ratio was decreased
from 0.57 to
0.51, capacity to
pay Short Term
Loan was not
good too, because
Current Assets without
Inventory can not
cover Current Liabilities.
Leverage
|
Leverage |
2006 |
2005 |
|
D/E Ratio |
9.42 |
14.29 |
|
Times Interest
Earned |
3.67 |
4.86 |
D/E Ratio
was decreased from
14.29 to 9.42,
show the company
had fund from
Loan more than
fund from Equity,
investment risked of
the company is
high and Times
Interest Earned was
decreased from 4.86
to 3.67, capacity
to pay interest paid was
good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets
Turnover |
24.73 |
23.83 |
|
Total Assets
Turnover |
2.25 |
1.99 |
|
Return on
Assets |
2.27 |
2.04 |
|
Return on
Equity |
23.63 |
31.11 |
|
Day’s Payable |
95.93 |
119.82 |
|
Day’s Inventories |
49.62 |
46.20 |
|
Days’ Receivables |
72.25 |
95.53 |
Fixed Assets
Turnover was increased
from 23.83 times
to 24.73 times,
Total Assets Turnover
was increased from
1.99 times to
2.25 times, show
the company could
use Assets so
efficiently, and Return
on Assets was
increased from 2.04
to 2.27, Return
on Equity was
decreased from 31.11
to 23.63, capacity
to use Assets to make
profit was good.
Day’s Payable
was decreased from
120 days to
96 days, while
Day’s Inventories was
increased from 47
days to 50
days, but Day’s
Receivables was decreased
from 96 days
to 73 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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|