MIRA INFORM
REPORT
|
Report Date : |
27.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
LINARIA
CHEMICALS [ |
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Formerly Known As : |
LUPIN
CHEMICALS [ |
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Registered Office : |
4th Floor,
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
06.01.1987 |
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Com. Reg. No.: |
0105530000851 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Exporter and Distributor of Pharmaceutical Products |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment
Behaviour : |
Unknown |
|
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, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
LINARIA
CHEMICALS [THAILAND] LTD.
[FORMER : LUPIN CHEMICALS
[THAILAND] LTD.]
SUMMARY
BUSINESS
ADDRESS : 4th FLOOR,
8/17-18
BANGRAK,
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. 200,000,000
CAPITAL PAID-UP : BHT.
200,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
[Former ; MARCH
31]
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAMESH CHANDRA
SABOO, INDIAN
PRESIDENT
NO.
OF STAFF : 190
LINES
OF BUSINESS : PHARMACEUTICAL PRODUCTS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
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’s name was
changed to LINARIA CHEMICALS [
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,
subject’s registered address
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 |
64 |
|
Ms. Nishita Shah |
|
Thai |
29 |
|
Mr. Shirish Sharma |
|
Indian |
42 |
|
Mr. Ramesh Chandra Saboo |
|
Indian |
51 |
|
Mr. Isachan Shah |
|
Indian |
22 |
|
Mr. Kirit Shah |
|
Indian |
56 |
AUTHORIZED PERSON
Any two of
the above directors can jointly 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 51 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. Shirish Sharma is
the Marketing Manager.
He is Indian
nationality with the
age of 42
years old.
Mr. Wicha Sukhumavasee is
the Administration Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged in
manufacturing pharmaceutical products,
specialize 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
2,000 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 Inc. :
- Helm AG. :
- Maheco Chemical Co., Ltd. : Republic
of
- Lupin
Ltd. :
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
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office :
The Siam Commercial
Bank Public Co.,
Ltd.
[Head Office :
United Overseas Bank
[Thai] Public Co.,
Ltd.
[Head Office :
EMPLOYMENT
The
subject employs approximately
190 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
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$ 500,000.
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.
The
products can be
found around the globe.
Because of its
quality standard has
convinced international firms
to source the
products from the
company.
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
Increased was : Bht.
115,000,000 on February
23, 2007
Increased was : Bht.
200,000,000 on May
25, 2010
The
latest registered capital
was increased to
Bht. 200,000,000 divided into
2,000,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at April
29, 2010]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Globex Corporation Ltd. Nationality: Thai Address : |
1,369,997 |
68.49 |
|
Indowest Holding Ltd. Nationality: Address : |
420,000 |
21.00 |
|
Ms. Nishita Shah Nationality: Thai Address : 34/42
Sukhumvit 11 Rd.,
Klongtoeynua,
Wattana, |
189,778 |
9.49 |
|
Mr. Ramesh Chandra Saboo Nationality: Indian Address :
Samutprakarn |
12,500 |
0.63 |
|
Mr. Vedirach Krishna Hebli Nationality: Indian Address : |
7,720 |
0.39 |
|
Ms. Samihra Shah Nationality: Thai Address : 35/42
Sukhumvit 11 Rd.,
Klongtoeynua,
Wattana, |
5 |
- |
Total Shareholders : 6
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Thanit Osathalert
No. 5155
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2009 &
2008 were:
ASSETS
|
Current Assets |
2009 |
2008 |
|
|
|
|
|
Cash and Cash Equivalents |
5,505,430 |
3,129,733 |
|
Trade Accts. Receivable |
135,003,535 |
161,201,143 |
|
Account Receivable-Related Company |
21,833,625 |
12,500,482 |
|
Inventories |
63,151,771 |
76,307,463 |
|
Other Current Assets
|
4,620,499 |
6,007,630 |
|
Total Current Assets
|
230,114,860 |
259,146,451 |
|
Loan to Parent |
10,478,000 |
10,478,000 |
|
Investment in Associated |
19,788,524 |
19,788,524 |
|
Fixed Assets |
101,800,289 |
98,811,395 |
|
Cash at Bank under Commitment |
50,085,315 |
48,939,648 |
|
Intangible Assets |
14,994,915 |
15,127,645 |
|
Other Assets |
401,507 |
367,507 |
|
Total Assets |
427,663,410 |
452,659,170 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2009 |
2008 |
|
|
|
|
|
Bank Overdraft &
Short Term Loan
from Financial Institute |
64,036,764 |
123,624,327 |
|
Trade Accts. Payable |
157,241,570 |
126,324,575 |
|
Short-term Loan from Person
or Related Company |
94,500,000 |
94,500,000 |
|
Other Payable from Related Company |
- |
3,683,384 |
|
Current Portion of
Financial Lease Contract Liabilities |
1,339,608 |
- |
|
Accrued Income Tax |
464,845 |
- |
|
Other Current Liabilities |
15,940,746 |
13,664,497 |
|
Total Current Liabilities |
333,523,533 |
361,796,783 |
|
Financial Lease Contract Liabilities |
2,389,501 |
- |
|
Total Liabilities |
335,913,034 |
361,796,783 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,150,000 shares |
115,000,000 |
115,000,000 |
|
Capital Paid |
115,000,000 |
115,000,000 |
|
Land-Revaluation Surplus |
14,000,000 |
14,000,000 |
|
Retained Earning -
Unappropriated |
[37,249,624] |
[38,137,613] |
|
Total Shareholders' Equity |
91,750,376 |
90,862,387 |
|
Total Liabilities & Shareholders' Equity |
427,663,410 |
452,659,170 |
PROFIT & LOSS ACCOUNT
|
Sale |
2009 |
2008 |
|
|
|
|
|
Sales |
605,379,262 |
670,436,628 |
|
Gain on Exchange
Rate |
6,139,773 |
- |
|
Other Income |
4,156,784 |
3,376,520 |
|
Total Sale s |
615,675,819 |
673,813,148 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
557,788,283 |
606,891,144 |
|
Selling Expenses |
27,492,136 |
28,803,019 |
|
Administrative Expenses |
20,911,197 |
23,966,323 |
|
Loss on Exchange
Rate |
- |
2,070,057 |
|
Total Expenses |
606,191,616 |
661,730,543 |
|
Profit Before Interest Expenses & Income Tax |
9,484,203 |
12,082,605 |
|
Interest Expenses |
[7,787,516] |
[8,160,502] |
|
Profit Before Income Tax |
1,696,687 |
3,922,103 |
|
Income Tax |
[808,698] |
[953,378] |
|
Net Profit / [Loss] |
887,989 |
2,968,725 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2009 |
2008 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.69 |
0.72 |
|
QUICK RATIO |
TIMES |
0.49 |
0.49 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.95 |
6.79 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.42 |
1.48 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
41.32 |
45.89 |
|
INVENTORY TURNOVER |
TIMES |
8.83 |
7.95 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
81.40 |
87.76 |
|
RECEIVABLES TURNOVER |
TIMES |
4.48 |
4.16 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
102.89 |
75.97 |
|
CASH CONVERSION CYCLE |
DAYS |
19.83 |
57.68 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
92.14 |
90.52 |
|
SELLING & ADMINISTRATION |
% |
8.00 |
7.87 |
|
INTEREST |
% |
1.29 |
1.22 |
|
GROSS PROFIT MARGIN |
% |
9.56 |
9.98 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.57 |
1.80 |
|
NET PROFIT MARGIN |
% |
0.15 |
0.44 |
|
RETURN ON EQUITY |
% |
0.97 |
3.27 |
|
RETURN ON ASSET |
% |
0.21 |
0.66 |
|
EARNING PER SHARE |
BAHT |
0.77 |
2.58 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.79 |
0.80 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.66 |
3.98 |
|
TIME INTEREST EARNED |
TIMES |
1.22 |
1.48 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(9.70) |
|
|
OPERATING PROFIT |
% |
(21.51) |
|
|
NET PROFIT |
% |
(70.09) |
|
|
FIXED ASSETS |
% |
3.02 |
|
|
TOTAL ASSETS |
% |
(5.52) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
9.56 |
Deteriorated |
Industrial Average |
33.03 |
|
Net Profit Margin |
0.15 |
Impressive |
Industrial Average |
(22.69) |
|
Return on Assets |
0.21 |
Impressive |
Industrial Average |
(3.40) |
|
Return on Equity |
0.97 |
Deteriorated |
Industrial Average |
2.71 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sale s after accounting for
the cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. The company's figure is 9.56%. When
compared with the industry average, the ratio of the company was lower.
This indicated that company was
originated from the problems with control over its costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 0.15%
compared with those of its average competitors in the same industry, indicated
that business was an efficient operator
in a dominant position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. Return on Assets is 0.21%,
higher figure when compared with those of its average competitors in the same
industry, indicated that business was an efficient profit in a dominant position within its industry.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. When compared with the
industry average, its was lower, the company's figure is 0.97%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
0.69 |
Risky |
Industrial Average |
38.80 |
|
Quick Ratio |
0.49 |
|
|
|
|
Cash Conversion Cycle |
19.83 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's
figure is 0.69 times in 2009, decrease from 0.72 times, then the company may
not be efficiently using its current assets. When compared with the industry
average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 0.49 times in 2009,
decrease from 0.49 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the
benefit from payment terms from its creditors. It meant the company could
survive when no cash inflow was received from sale for 20 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.79 |
Impressive |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
3.66 |
Risky |
Industrial Average |
1.57 |
|
Times Interest Earned |
1.22 |
Deteriorated |
Industrial Average |
304.70 |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the
shareholders have committed. A lower the percentage means that the company is
using less leverage and has stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1.22 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.79 greater than 0.5, most of the company's
assets are financed through debt.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
5.95 |
Deteriorated |
Industrial Average |
432.48 |
|
Total Assets Turnover |
1.42 |
Impressive |
Industrial Average |
1.11 |
|
Inventory Conversion Period |
41.32 |
|
|
|
|
Inventory Turnover |
8.83 |
Impressive |
Industrial Average |
6.94 |
|
Receivables Conversion Period |
81.40 |
|
|
|
|
Receivables Turnover |
4.48 |
Deteriorated |
Industrial Average |
11.87 |
|
Payables Conversion Period |
102.89 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.59 |
|
|
1 |
Rs.73.44 |
|
Euro |
1 |
Rs.64.81 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.