MIRA
INFORM REPORT
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Report Date : |
03.10.2007 |
IDENTIFICATION DETAILS
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Name : |
MEGA LIFESCIENCES LIMITED |
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Formerly Known As : |
MEDICAP LIMITED |
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Registered Office : |
384
Soi 6, Pattana
3 Road, Bangpoo Industrial Estate, T. Praeksa,
A. Muang, Samutprakarn 10280 |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1982 |
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Com. Reg. No.: |
0105525001721 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer of medicines
& related products |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
MEGA LIFESCIENCES LIMITED
FORMER
MEDICAP LIMITED
SUMMARY
BUSINESS ADDRESS
: 384
SOI 6, PATTANA
3 ROAD, BANGPOO
INDUSTRIAL ESTATE,
T. PRAEKSA,
A. MUANG,
SAMUTPRAKARN 10280
TELEPHONE : [662] 324-0681,
709-3600-4
FAX :
[662] 324-0451,
324-0537
E-MAIL ADDRESS : info@megawecare.com
Info@medicapltd.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1982
REGISTRATION NO. : 0105525001721 [Former : 172/2525]
CAPITAL
REGISTERED : BHT.
67,056,190
CAPITAL
PAID-UP : BHT. 67,056,190
FISCALYEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS
: PRIVATE
LIMITED COMPANY
EXECUTIVE : MR. VIVEK
DHAWAN, INDIAN
MANAGING DIRECTOR
NO. OF
STAFF : 480
LINES OF
BUSINESS : MEDICINES &
SUPPLEMENT PRODUCTS
MANUFACTURER &
EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on January
15, 1982 as
a private limited
company under the registered
name “Vidas Ltd.” by
Thai-Indian groups, in order
to bring new
technology in Thailand
for manufacturing Soft
Gelatin Capsules.
Later, the name
was changed to “Medicap
Limited” and “Mega Lifesciences
Limited” on October
15, 1982 and
August 15, 2005,
respectively. It currently
employs approximately 480
staff.
At present, the
subject is a
subsidiary of Unistretch
Co., Ltd.
The subject now
ranks among the
world class producers
of pharmaceutical, health
food supplements, herbal
products, vitamins &
minerals and cosmetic
products in this
dosage form. It
is also a
member of Pharmaceutical Producers
Association [PPA].
The subject’s registered
address is 384
Moo 4, Soi
6, Pattana 3
Rd., Praeksa, Muang,
Samutprakarn 10280, and
this is the
subject’s current operation
address.
AWARD AND
QUALITY : Certified
by
· TGA -
· FDA -
· Danish Health
Authorities
· ISO 9002
THE BOARD
OF DIRECTORS
Name Nationality Age
Mr. Nirand Sinthupakorn Thai 60
Mr. Vivek Dhawan [x]
Indian 45
Ms. Nishita Shah [x]
Indian 26
Mr. Apichai Chancharusiri [+]
Thai 51
Mr. Thomas Abraham [+]
Indian 44
Mr. Paramjit Singh Sawney [+]
Indian 42
Mr. Sudhit Gandhi [+]
Indian 44
Mr. Ajay Narothamdas Thakkar [+]
Indian 31
Mr. Suriyanarayana Godukulla [+] Indian
AUTHORIZED PERSON
One of the
above directors [x]
can sign or
two of the
directors [+] can
jointly sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Vivek Dhawan
is the Managing
Director.
He is Indian
nationality with the
age of 45
years old.
Mr. Apichai
Chancharusiri is the
Assistant Managing Director.
He is Thai
nationality with the
age of 51
years old.
Mrs. Kuankam
Kiatcharoenpol is the Marketing
Manager [Local Market].
She is Thai
nationality.
Mr. Chusak
Hemvimol is the
Purchasing & Development
Manager.
He is Thai
nationality.
Mr. Reddy Jonnala
Venkatahubba is the
Material Manager.
He is Indian
nationality.
Mr. Silesh Satyanarayan
Purohit is the
Business Development Manager.
He is Indian
nationality.
Mr. Manit
Kawa is the
Account Manager.
He is Indian
nationality.
Ms.
Chamaiporn Siritemboon is
the Marketing Service
Manager.
She is Thai
nationality.
INSURANCE
Insurance was carried
on inventory with
New India Insurance
Co., Ltd.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of medicines &
related products, which
has five lines:
drugs and pharmaceuticals that
generate [20%] of
total revenue, vitamin
and mineral supplements
[30%], dietary supplements
[30%], herbal preparations
[15%] and cosmetics
[5%].
Almost all of
the products come
in soft gelatin
capsules that are
widely used in
both the medical
and cosmetics businesses.
The products are
as followings :
· Multivitamins & Minerals
· Liver Cares
& Hepatic Product
· Behaviour Modifiers
· Heart Care
& Circulatory Disorders
· Women Formula
· Food Supplements
· Memory Booster &
Brain Tonics
· Slimming Formulas
· Headache and Migrain
· Immunity Enhancers & Modulators
· Tonics &
Energy Boosters
· Antioxidants
· Prostate Care
· Cod Liver Oil
· Cosmetics
MAJOR BRANDS
|
“SCOTT’S” - Cod Liver Oil |
Customer Owned Brand |
|
“MEDICRAFTS”, |
Customer Owned Brand |
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“MISTINE”, |
Customer Owned Brand |
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“GIFFARINE” - Evening Primrose Oil |
Customer Owned Brand |
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“IMUGINS” - Schumit Ginseng |
Customer Owned Brand |
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“GR 150” - Schumit Ginseng
|
Customer Owned Brand |
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“ROCHE” - Cough
Medicine |
Customer Owned Brand |
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“SMITH K-TINE” |
Customer Owned Brand |
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“BEECHAM” - Fish
Liver Oil |
Customer Owned Brand |
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“LYNAC” |
Customer Owned Brand |
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& etc. |
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TRADEMARK
“NATURAL CARE”
PRODUCTION
1.5 billion capsules/year.
IMPORT [COUNTRIES]
90% of raw
materials is imported
from Japan, Korea,
Hong Kong, Singapore,
Philippines, France, Australia,
United States of America and
Taiwan.
MAJOR SUPPLIERS
|
Name |
Country |
Products |
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Roche [ |
|
Chemicals |
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Sanofi [T] Ltd. |
|
Chemicals |
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B.A.S.F. [Thai] Co., Ltd. |
|
Chemicals |
EXPORT [COUNTRIES]
80% of the
products is exported to
Hong Kong, Africa,
Australia, Denmark, Singapore,
Philippines, United States
of America, United Kingdom, India,
Taiwan, Japan, Canada,
New Zealand, Republic
of China, Vietnam, Laos,
Malaysia and Myanmar.
SALES [LOCAL]
20% of its
products is sold
locally to manufacturers, wholesalers,
Thai Government and
end-users.
MAJOR CUSTOMERS
|
Name |
Country |
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- Smithkline and Beecham |
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- Pan Laboratories |
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- Berlin Pharmaceutical
Co., Ltd. |
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- Bioconcept Co., Ltd. |
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- Mega Products Co.,
Ltd. |
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- Roche [ |
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- Sky Line Unity
Co., Ltd. |
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- Betterway [ |
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- Ceutic Co., Ltd. |
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- Mega Lifesciences Pty
Ltd. |
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- Mega Products [ |
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- Mega Products [ |
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PARENT COMPANY
Unistretch Co.,
Ltd.
Address :
SUBSIDIARIES &
AFFILIATED COMPANIES
Mega Products
Co., Ltd.
Distributor of pharmaceuticals &
health food products
Natural Health
Foods Co., Ltd.
Distributor of health
food products
Mega We Care Co.,
Ltd.
Distributor of health
food products
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
30-60-90 days.
Imports are by
L/C at sight
or on the
credit term of 90
days.
Exports are against
L/C at sight or
on the credit
term of 120
days & T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
[Head Office :
The Siam
Commercial Bank Public
Co., Ltd.
[Head Office :
The
[Bangkok
Branch : 968
Rama 4 Rd.,
Silom Rd., Silom,
Bangrak, Bangkok 10500]
Export Import
Bank of
[Head Office :
Kasikornbank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 480 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
owned for operating
office and factory
on 4,800 square
meters at the
heading address in
an industrial area.
COMMENT
Medicap was incorporated
by group of
medicine producers to bring
new technology in
Thailand for manufacturing
soft gelatin capsules.
The company has
evolved over the
years to become
a leader in
South East Asia for
innovation and development
in this field.
It is commented
by an pharmaceutical expert
that Medicap has
a large more
modern research and
development division compared
with other local
pharmaceutical companies as well.
The company now
ranks among the
world class producers
of pharmaceuticals, health
food supplements, herbal
products, vitamins &
minerals and cosmetic
products in this
dosage from. It
strives to excel
in product &
technology development and
setting standards in
the international markets
for high quality
products made in
a modern GMP
approved plant.
The company has
a well established
track record of
building brands and
enjoy a leadership status
in many international
markets.
FINANCIAL INFORMATION
The capital was
registered at Bht.
5,000,000 divided into
5,000 shares of
Bht. 1,000 each.
The capital was
increased later as
followings :
Bht. 10,000,000
on October 15,
1982
Bht. 25,000,000
on April 11,
1986
Bht. 47,500,000
on April 24,
1996
Bht. 50,000,000
on November 23,
1998
Bht. 61,000,000
on December 27,
2000
Bht. 67,056,190
on December 30,
2003
The latest registered
capital was increased
to Bht. 67,056,190
divided into 6,705,619
shares of Bht.
10 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 30,
2007]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Unistretch Co., Ltd. |
4,910,500 |
73.23 |
|
Mr. Vivek Dhawan |
670,560 |
10.00 |
|
Mr. Praramjit S.
Sawney [Indian] |
167,640 |
2.50 |
|
Mr. Sudhir Gindhi [Indian] |
167,640 |
2.50 |
|
Mr. Thomas Abraham [Indian] |
167,640 |
2.50 |
|
Ms. Duangnapa Tongsiri |
167,640 |
2.50 |
|
Mr. Apichai Chancharusiri |
40,234 |
0.60 |
|
Mr. John William Farley |
40,234 |
0.60 |
|
Mr. Pornchai Wongphayak |
33,528 |
0.50 |
|
Other Shareholders |
340,003 |
5.07 |
Total Shareholders
27
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.
Mr. Vichian Kingmontree No.
3183
BALANCE SHEET
[BAHT]
The
latest financial figures
published for December
31, 2006 &
2005 were:
ASSETS
|
Current Assets |
2006 |
2005 |
|
|
|
|
|
Cash in hand
& at Bank
|
6,466,790 |
2,863,327 |
|
Short Term Investment |
8,734,224 |
8,439,608 |
|
Trade Accts. Receivable |
321,320,917 |
260,505,829 |
|
Receivable Advanced -
Related Company |
- |
770,778 |
|
Inventories |
120,188,441 |
108,945,212 |
|
Other Current Assets
|
15,011,911 |
13,481,777 |
|
Total Current
Assets |
471,722,283 |
395,006,531 |
|
|
|
|
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Investment |
42,092,300 |
42,092,300 |
|
Fixed Assets |
116,540,509 |
88,709,159 |
|
Deposit |
631,061 |
727,819 |
|
Total Assets |
630,986,153 |
526,535,809 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
|
Bank Overdraft &
Short Term Loan
from Financial Institution |
204,888,044 |
193,613,080 |
|
Trade Accts. Payable |
112,727,441 |
116,129,607 |
|
Payable Advanced from Related
Company |
24,818,427 |
- |
|
Short Term Loan & Deferred Interest
Related Company |
10,749,112 |
9,105,000 |
|
Current Portion of Long
Term Loan |
16,287,613 |
7,200,000 |
|
Current Portion of
Hire Purchase Contract Liabilities |
699,478 |
563,356 |
|
Accrued Dividend |
5,029,214 |
- |
|
Accrued Income Tax |
5,793,536 |
4,110,816 |
|
Other Current Liabilities |
26,473,582 |
13,749,109 |
|
Total Current
Liabilities |
407,466,447 |
344,470,938 |
|
Long Term Loan
from Financial Institution |
33,155,000 |
9,842,612 |
|
Contract Liabilities Net
of Current Portion
|
904,819 |
1,170,024 |
|
Total Liabilities |
441,526,266 |
344,470,968 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 6,705,619 shares |
67,056,190 |
67,056,190 |
|
Capital Paid |
67,056,190 |
67,056,190 |
|
Statutory Reserve |
5,471,129 |
3,721,129 |
|
Retained Earning -
Unappropriated |
116,932,568 |
100,274,886 |
|
Total
Shareholders' Equity |
189,459,887 |
171,052,205 |
|
Total
Liabilities & Shareholders' Equity |
630,986,153 |
526,535,809 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales |
701,333,108 |
589,632,495 |
|
Gain on Exchange
Rate |
7,253,949 |
1,393,676 |
|
Other Income |
5,810,725 |
8,541,097 |
|
Total Revenues
|
714,397,782 |
599,567,268 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
513,664,346 |
444,003,670 |
|
Selling & Administrative Expenses |
153,237,482 |
115,433,836 |
|
Total Expenses |
666,901,828 |
559,437,506 |
|
Profit / [Loss] Before Interest
Expenses |
47,495,954 |
40,129,762 |
|
Interest Expenses |
[13,502,034] |
[9,928,782] |
|
Income Tax |
[10,557,024] |
[8,946,887] |
|
Net Profit / [Loss] |
23,436,896 |
21,254,093 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
18.94 |
|
|
Operating Profit |
[0.49] |
|
|
Net Profit |
10.27 |
|
|
Fixed Assets |
31.37 |
|
|
Total Assets |
19.84 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
73.24 |
75.30 |
|
Operating Profit Margin |
6.77 |
6.81 |
|
S & A
Expenses |
21.85 |
19.58 |
|
Interest Paid |
1.93 |
1.68 |
|
Other Revenues |
1.86 |
1.68 |
|
Net Profit Margin |
3.34 |
3.60 |
|
Earning Per Shares |
3.50 |
3.17 |
|
No. of Shares |
6,705,619 |
6,705,619 |
Net Sales was
increased by 18.94%,
Operating Profit was
decreased by 0.49%,
Net Profit was
increased by 10.27%,
Fixed Assets was
increased by 31.37%,
Total Assets was
increased by 19.84%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 75.30%
to 73.24%, Operating
Profit Margin was
decreased from 6.81%
to 6.77%, S
& A Expenses
was increased from
19.58% to 21.85%,
Interest Paid was increased
from 1.68% to
1.93%, Other Revenues
was increased from
1.68% to 1.86%,
Net Profit Margin
was decreased from
3.60% to 3.34%.
Earning Per Shares
was increased from
3.17 baht per
share to 3.50
baht per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
1.16 |
1.15 |
|
Quick-Assets Ratio |
0.83 |
0.79 |
Current Ratio was
increased from 1.15
to 1.16, show
Current Assets can
cover Current Liabilities,
Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was increased from
0.79 to 0.83,
capacity to pay
Short Term Loan
was not good,
because Current Assets
without Inventory can
not cover Current
Liabilities.
Leverage
|
Leverage |
2006 |
2005 |
|
D/E Ratio |
2.33 |
1.89 |
|
Times Interest Earned |
3.52 |
4.04 |
D/E Ratio was
increased from 1.89
to 2.33, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is medium,
Times Interest Earned
was decreased from
4.04 to 3.52,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
6.02 |
6.65 |
|
Total Assets Turnover |
1.11 |
1.12 |
|
Return on Assets |
3.71 |
4.04 |
|
Return on Equity |
12.37 |
11.67 |
|
Day's Payable |
57.86 |
70.90 |
|
Day’s Inventories |
61.69 |
66.52 |
|
Day’s Receivables |
164.94 |
159.05 |
Fixed Assets Turnover
was decreased from
6.65 times to
6.02 times, Total
Assets Turnover was
decreased from 1.12
times to 1.11
times, show the
company could not
use Assets so
efficiently, Return on
Assets was decreased
from 4.04 to
3.71, Return on
Equity was increased
from 11.67 to
12.37, capacity to
use Assets to
make profit was
good.
Day's Payable was
decreased from 71
days to 58
days, and Day’s
Inventories was decreased
from 67 days
to 62 days,
while Day’s Receivables
was increased from
160 days to
165 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. |
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 |
|
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%)