MIRA INFORM REPORT

Report Date :

10.01.2008

IDENTIFICATION DETAILS

Name :	UNISON LABORATORIES CO., LTD
Registered Office :	30 Soi Onnuch, Ladkrabang Road, Ladkrabang, Bangkok - 10520
Country :	Thailand
Financials (as on) :	2006
Date of Incorporation :	1956
Com. Reg. No.:	0105499000718 [Former : 120/2499]
Legal Form :	Private Limited Company
Line of Business :	Manufacturer & Exporter of 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

COMPANY NAME

UNISON LABORATORIES CO., LTD.

SUMMARY

BUSINESS ADDRESS : 30 SOI ONNUCH, LADKRABANG ROAD, LADKRABANG, BANGKOK

10520

TELEPHONE : [66] 2329-1020-5

FAX : [66] 2329-1279, 2329-0160

E-MAIL ADDRESS : export@unisonlab.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1956

REGISTRATION NO. : 0105499000718 [Former : 120/2499]

CAPITAL REGISTERED : BHT. 76,000,000

CAPITAL PAID-UP : BHT. 76,000,000

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. SUDDHINAI THANESVORAKUL, THAI MANAGING DIRECTOR

NO. OF STAFF : 438

LINES OF BUSINESS : PHARMACEUTICAL PRODUCTS MANUFACTURER & EXPORTER

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 July 2, 1956 as a private limited company under the registered name “Unison America Co., Ltd.”, by Thai group, Thanesvorakul family. On March 13, 1968 the subject was changed its name to UNISON LABORATORIES CO., LTD. It currently employs 438 staff.

The subject is a leading pharmaceutical product manufacturer in Thailand, with over one hundred registered pharmaceutical products widely recognized in both domestic and international markets. The products have been approved by the Food and Drug Administration [FDA], Ministry of Public Health of Thailand and Department of Medical Sciences.

UNISON is a certified GMP [Good Manufacturing Practice] manufacturer of pharmaceutical products in the area of both PENICILLIN and NON-PENICILLIN. The products are in form of tablet, capsule, powder for oral suspension, cream and ointment with sugar and film coating facilities. Most of its tablets and capsules are packed in blister and strip packaging.

The subject’s registered address was initially located at 160 Soi Onnuch, Sukhumvit 77 Rd., Ladkrabang, Bangkok 10520.

On January 18, 2006, the registered address has been changed by the government, to be 30 Soi Onnuch, Ladkrabang Rd.,, Ladkrabang, Bangkok 10520, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name	Nationality	Age
Mr. Suddhinai Thanesvorakul	Thai	57
Dr. Vaivudhi Thanesvorakul	Thai	59
Mrs. Karnda Thanesvorakul	Thai	56

AUTHORIZED PERSON

Two of the above directors can jointly sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Suddhinai Thanesvorakul is the Managing Director.

He is Thai nationality with the age of 57 years old.

Mr. Buddhapol Prasannakarn is the Deputy Managing Director.

He is Thai nationality.

Mr. Chatri Pongsakornchai is the General Manager.

He is Thai nationality.

Ms. Suneerat Masomchai is the Account Manager.

She is Thai nationality.

Mrs. Kanokwan Thammitr is the Plant & Production Manager.

She is Thai nationality.

Mr. Sombat Poonpitayathorn is the Marketing Director.

He is Thai nationality.

BUSINESS OPERATIONS

The subject’s activity is manufacturer of pharmaceutical products, Ethical, Generic, and OTC drugs including non-steroidal anti-inflammatory drugs [NSAID’S], antihyperlipidemic, antibacterial [penicillins], antihypertensive, antibacterial [quinolones], antifungal, antidiabetic, oil [soft gelatin capsule products] and etc., as well as health food supplements [nutritional and herbal products], foods, cosmetics, toiletries and personal care products.

Lists of its products are as follows :

Products	Type
Penicillin	Tablet, Capsule, Powder
Non-Penicillin	Tablet, Capsule, Powder, Gel, Cream, Ointment, Solution, Suspension, Syrup
Alfalfa	Capsule
Borage Oil	Soft Gelatin Capsule
Chitosan	Capsule
Garcinia Cambogia	Tablet
Garcinia Powder Beverage [Orange, Grape, Lime, Sala Flavour]	Powder
Garlic Capsule	Capsule
Ginkgo Bioba	Capsule
Glucomannan	Capsule
Grape Seed Extract	Capsule
Oyster Extract	Capsule
Pumpkin Seed Oil	Soft Gelatin Capsule
Antidepressant	Tablet
Antifungal	Shampoo
Antihistamine (H1-Receptor)	Tablet
Amtihistamine (H2-Receptor)	Tablet
Anti-Inflammatory Corticosteriod	Ointment
& Etc.

The subject’s products are approved by The National Health Organizations in many countries worldwide.

MAJOR BRANDS

“UNISON”, “BAGES”, “ PORMUS”, “RAMTACE”, “FLUXETIL”, “DERZID-C”, “DIASEF”, “LEVOMET”, “AMPREXYL”, “LIDOXIN”, “UNIMOX”, “SEFMAL”, “UNIMOL”, “SEFTIL”, “UNIGAN”, “MESIN”, “UNICIDE”, “SEFLOC”, “DIPASEF 5”, “TOLBIN”, “REDROCIN”, “UNIZEN”, “GASTER”, “TILOPIN”, “PENCOR” and etc.

PURCHASE

50% of raw materials is purchased from local suppliers.

IMPORT [COUNTRIES]

50% of the raw materials is imported from Japan, Germany, Republic of China, Italy, U.S.A., India, Hungary, Spain, Switzerland and Latin America countries, as well as machinery is imported from Korea.

SALES [LOCAL]

60% of its products is sold locally to dealer, Thai government and private hospital.

EXPORT [COUNTRY]

40% of the products is exported to Hong Kong, Myanmar, Philippines, Bangladesh, Fiji, Malaysia, Nigeria, Taiwan, India, Pakistan, Yemen, Singapore, Sri Lanka, Vietnam, Republic of China, Europe, Africa and Middle East countries.

MAJOR CUSTOMERS

- Ministry of Public Health

- Thai Government and Private Hospital

PARENT COMPANY

Medline Co., Ltd.

Address: 736-742 Pracha-uthit Road, Huaykwang, Bangkok

AFFILIATED COMPANY

F.C.P. Co., Ltd.

Business Type: Distributor of pharmaceutical and cosmetic 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

CREDIT

Sales are by cash 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 D/A on the credits term of 90-120 days or T/T.

Exports are against L/C at sight & T/T.

BANKING

Kasikornbank Public Co., Ltd.

[Silom Branch: Silom Rd., Suriyawong, Bangrak, Bangkok 10500]

Bangkok Bank Public Co., Ltd.

Export-Import Bank of Thailand

EMPLOYMENT

The subject employs 438 staff. [office staff, sales staff and factory workers]

LOCATION DETAILS

The premise is owned for administrative office and factory on 11,200 square meters of area at the heading address. Premise is located in an industrial area.

COMMENT

Through 40 years of growth and expansion, the company has become one of the leading pharmaceutical product manufacturers in Thailand with over one hundred registered pharmaceutical products widely recognized in both domestic and international markets. These include ETHICAL, GENERIC, and OTC drugs approved by the Food and Drug Administration [FDA], Ministry of Public Health of Thailand. As well UNISON’s pharmaceutical products are approved by the National Health Organizations in many countries around the world.

Market Conditions

Due to continue growing of healthcare industry, the subject also has strong growth, and its business trend is in progress.

FINANCIAL INFORMATION

The capital was registered at Bht. 300,000 divided into 1,500 shares of Bht. 200 each.

The capital was increased later as follows:

Bht. 30,000,000 on March 14, 1979

Bht. 66,000,000 on November 2, 2006

Bht. 76,000,000 on December 25, 2006

On March 14, 1979, it was increased to Bht. 76,000,000 divided into 760,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 30, 2007]

NAME	HOLDING	%
Medline Co., Ltd. Nationality: Thai Address : 736-742 Pracha-Utit Rd., Samsennok, Huaykwang, Bangkok 10320	759,994	99.99
Mr. Suddhinai Thanesvorakul Nationality: Thai Address : 12/14 Sapansung, Buengkum, Bangkok	1
Mrs. Kanda Thanesvorakul Nationality: Thai Address : 202/5 Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok	1
Mr. Chatree Pongsakornchai Nationality: Thai Address : 217/16 Pracharaj 1 Rd., Bangsue, Bangkok 10800	1	=0.01
Ms. Tharntip Thanesvorakul Nationality: Thai Address : 202/5 Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok	1
Ms. Netrtip Thanesvorakul Nationality: Thai Address : 202/5 Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok	1
Dr. Vaivudhi Thanesvorakul Nationality: Thai Address : 61/1 Romklao Rd., Saensaeb, Minburi, Bangkok	1

Total Shareholders : 7

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mr. Prawit Wongkanit No. 4193

UNISON LABORATORIES CO., LTD.

BALANCE SHEET [BAHT]

The latest financial figures published as at December 31, 2006 & 2005 were:

ASSETS

Current Assets	2006	2005
Cash in hand & at Bank	1,913,319.39	744,245.72
Trade Accts. Receivable	156,767,930.63	167,982,473.32
Inventories	88,917,603.50	90,151,571.73
Other Current Assets	22,392,688.80	21,162,441.30
Total Current Assets	269,991,542.32	280,040,732.07
Long Term Loan to Person or Related Company	64,454,999.23	48,667,186.66
Fixed Assets	122,671,683.18	130,579,938.79
Other Assets	23,758,748.59	5,064,507.99
Total Assets	480,876,973.32	464,352,365.51

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2006	2005
Bank Overdraft & Short Term Loan from Bank	92,987,864.54	91,086,796.72
Trade Accts. Payable	85,196,586.24	97,614,743.12
Current Portion of Long Term Loan	22,951,440.00	22,951,440.00
Other Current Liabilities	40,020,497.75	59,106,816.33
Total Current Liabilities	241,156,388.53	270,759,796.17
Other Long Term Loan	80,802,120.00	103,753,560.00
Other Liabilities	233,500.00	2,559,949.00
Total Liabilities	322,192,008.53	377,073,305.17
Shareholders' Equity
Share Capital : Baht. 100 par value authorized issued and fully paid share capital 760,000 & 300,000 shares in 2006 & 2005 respectively	76,000,000.00	30,000,000.00
Capital Paid	76,000,000.00	30,000,000.00
Unappropriated	82,684,964.79	57,279,060.34
Total Shareholders' Equity	158,684,964.79	87,279,060.34
Total Liabilities & Shareholders' Equity	480,876,973.32	464,352,365.51

PROFIT & LOSS ACCOUNT

Revenue	2006	2005
Sales	553,300,420.37	529,256,271.40
Other Revenues	16,575,605.07	16,667,213.47
Total Revenues	569,876,025.44	545,923,484.87
Expenses
Cost of Goods Sold	366,207,161.71	352,853,925.17
Selling & Administrative Expenses	152,003,000.14	148,569,957.98
Total Expenses	518,210,161.85	501,423,883.15
Profit/[Loss] from Operation	51,665,863.59	44,499,601.72
Interest Expenses	[14,981,288.44]	[11,233,605.81]
Income Tax	[11,278,670.70]	[10,318,096.93]
Net Profit / [Loss]	25,405,904.45	22,947,898.98

FINANCIAL ANALYSIS

Annual Growth & Profitability

Annual Growth	2006	2005
Net Sales	4.54
Operating Profit	11.06
Net Profit	10.71
Fixed Assets	[6.06]
Total Assets	3.56
Profitability
Cost of Good Sold	66.19	66.67
Operating Profit Margin	9.34	8.41
S & A Expenses	27.47	28.07
Interest Paid	2.71	2.12
Other Revenues	3.00	3.15
Net Profit Margin	4.59	4.34
Earning Per Shares	33.43	76.49
No. of Shares	760,000	300,000

Net Sales was increased by 4.54%, Operating Profit was increased by 11.06%, Net Profit was increased by 10.71%, Fixed Assets was decreased by 6.06%, Total Assets was increased by 3.56%.

Compare each cost with sales, Cost of Good Sold was decreased from 66.67% to 66.19%, Operating Profit Margin was increased from 8.41% to 9.34%, S & A Expenses was decreased from 28.07% to 27.47%, Interest Paid was increased from 2.12% to 2.71%, Other Revenues was decreased from 3.15% to 3.00%, Net Profit Margin was increased from 4.34% to 4.59%.

Earning Per Shares was decreased from 76.49 baht per share to 33.43 baht per share.

Liquidity

Liquidity	2006	2005
Current Ratio	1.12	1.03
Quick-Assets Ratio	0.66	0.62

Current Ratio was increased from 1.03 to 1.12, show Current Assets can cover Current Liabilities, Liquidity Ratio of the company was good, Quick-Assets Ratio was increased from 0.62 to 0.66, 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	2.03	4.32
Times Interest Earned	3.45	3.96

D/E Ratio was decreased from 4.32 to 2.03, 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 3.96 to 3.45, capacity to pay interest paid was good.

Efficiency

Efficiency	2006	2005
Fixed Assets Turnover	4.51	4.05
Total Assets Turnover	1.15	1.14
Return on Assets	5.28	4.94
Return on Equity	16.01	26.29
Day's Payable	55.43	66.40
Day’s Inventories	57.85	61.32
Day’s Receivables	102.00	114.26

Fixed Assets Turnover was increased from 4.05 times to 4.51 times, Total Assets Turnover was increased from 1.14 times to 1.15 times, show the company could use Assets so efficiently, Return on Assets was increased from 4.94 to 5.28, Return on Equity was decreased from 26.29 to 16.01, capacity to use Assets to make profit was good.

Day's Payable was decreased from 67 days to 56 days, Day’s Inventories was decreased from 62 days to 58 days, and Day’s Receivables was decreased from 115 days to 102 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%)

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