MIRA INFORM REPORT
|
Report Date : |
07.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
MERRY COSMETIC LABORATORIES CO., LTD. |
|
|
|
|
Registered Office : |
25/55 Moo 8,
Ratanathibeth Road, T. Bangkrasor, A. Muang, Nonthaburi 11000, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
13.01.2010 |
|
|
|
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Com. Reg. No.: |
0105553005115 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in contracted manufacturing various
kinds of body
care cosmetic products |
|
|
|
|
No. of Employees |
30 |
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 : |
Slow but correct |
|
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 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government is implementing a nation-wide 300 baht ($10) per day minimum wage policy and deploying new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years. The global economic recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the following seven years
|
Source
: CIA |
Company
name
MERRY COSMETIC
LABORATORIES CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 25/55
MOO 8, RATANATHIBETH
ROAD,
T.
BANGKRASOR, A. MUANG,
NONTHABURI 11000,
THAILAND
TELEPHONE : [66] 2431-1522
FAX :
[66] 2431-1523
E-MAIL
ADDRESS : info@merrycosmetic.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION NO. : 0105553005115
TAX
ID NO. : 3033755152
CAPITAL REGISTERED : BHT. 200,000
CAPITAL PAID-UP : BHT.
200,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MS.
NANMANUS KUNAKORNCHOTIPHAN, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 30
LINES
OF BUSINESS : COSMETIC PRODUCTS
CONTRACTED MANUFACTURER
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on January 13, 2010
as a private
limited company under
the registered name MERRY
COSMETIC LABORATORIES CO., LTD.
by Thai groups. Its business
objective is to
provide contracted manufacturing service
various kinds of
cosmetic products with
GMP quality standard,
to both domestic and
international markets. It
currently employs approximately
30 staff.
The
subject’s registered and
operation address was
initially located at
124/16 Moo 11, T.
Omnoi, A. Krathumban, Samutsakorn
74000.
On
July 1, 2013,
its registered address
was relocated to
25/55 Moo 8,
Ratanathibeth Rd., T. Bangkrasor, A. Muang,
Nonthaburi 11000, and
this is the
same current subject’s
operating address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Nanmanus Kunakornchotiphan |
|
Thai |
39 |
|
Mrs. Siriphan Pichetveerachai |
|
Thai |
49 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Ms. Nanmanus Kunakornchotiphan is
the Managing Director.
She is Thai
nationality with the
age of 39
years old.
BUSINESS OPERATIONS
The subject
is engaged in
contracted manufacturing various
kinds of body
care cosmetic products,
including body care
lotion, whitening skin
care series, anti
aging skin care
series, blemish skin
care series, scar
skin care series,
collagen skin care
series, sun care
skin care series,
slimming series, liposome
epidermal growth factor
skin care series,
multi function cleanser
for all skin,
stem cell series,
hair care series,
body care series,
Thai spa product
series, intimate care
series, house brand
product Obm, and
breast enlargement series,
under various customer’s
brands.
PURCHASE
Raw
materials and chemicals
are purchased from
both domestic and
overseas suppliers in
Italy, France, Japan
and Switzerland.
SALES/ SERVICES
90% of the
products is served
locally by wholesale
to traders, the
remaining 10% is
exported to Republic
of China, Japan,
Hong Kong, Korea,
Singapore and Malaysia.
MAJOR CUSTOMER
Beauty Home Mart
Co., Ltd. [Asada
brand] : Thailand
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or 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
T/T.
BANKING
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs approximately
30 staff.
LOCATION
DETAILS
The
premise is owned for
administrative office and factory
at the heading
address. Premise is located
in provincial.
COMMENT
The
subject is a
contracted manufacturer of
cosmetic products under
GMP (Good Manufacturing
Practice). Its sales
were considered low,
while its business
performance has grown
at slow pace.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 200,000 divided into
20,000 shares of Bht. 10
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Nanmanus Kunakornchotiphan Nationality: Thai Address : 289 Paitoey Rd.,
T. Huayjarakae, A.
Muang, Nakornpathom |
10,200 |
51.00 |
|
Mrs. Siriphan Pichetveerachai Nationality: Thai Address : 101/114
Moo 7, Laksong,
Bangkae, Bangkok |
9,000 |
45.00 |
|
Mrs. Pui Saejang Nationality: Thai Address : 101/114
Moo 7, Laksong,
Bangkae, Bangkok |
800 |
4.00 |
Total Shareholders : 3
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
20,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
20,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Yuthapong Ngamvichan No.
7613
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash in Hand
& at Bank |
385,577.96 |
2,005,181.31 |
2,282,375.48 |
|
Trade Account Receivable |
1,125,278.74 |
- |
- |
|
Inventories |
1,371,727.00 |
- |
- |
|
Other Current Assets
|
- |
7,899.78 |
28,314.56 |
|
|
|
|
|
|
Total Current Assets
|
2,882,583.70 |
2,013,081.09 |
2,310,690.04 |
|
Equipment |
2,676,966.54 |
1,699,602.87 |
1,734,234.02 |
|
Retention Rate |
96,000.00 |
- |
- |
|
Total Assets |
5,655,550.24 |
3,712,683.96 |
4,044,924.06 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Loan from Related
Person |
2,970,000.00 |
1,720,000.00 |
3,020,000.00 |
|
Other Liabilities |
552,604.37 |
568,348.41 |
368,275.51 |
|
|
|
|
|
|
Total Current Liabilities |
3,522,604.37 |
2,288,348.41 |
3,388,275.51 |
|
Total Liabilities |
3,522,604.37 |
2,288,348.41 |
3,388,275.51 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10 par
value authorized,
issued and fully
paid share
capital 20,000 shares |
200,000.00 |
200,000.00 |
200,000.00 |
|
|
|
|
|
|
Capital Paid |
200,000.00 |
200,000.00 |
200,000.00 |
|
Retained Earning - Unappropriated |
1,932,945.87 |
1,224,335.55 |
456,648.55 |
|
Total Shareholders' Equity |
2,132,945.87 |
1,424,335.55 |
656,648.55 |
|
Total Liabilities &
Shareholders' Equity |
5,655,550.24 |
3,712,683.96 |
4,044,924.06 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
Jan. 13,
2010 - Dec.
31, 2010 |
|
|
|
|
|
|
Sales & Services Income |
8,694,232.05 |
5,358,593.88 |
3,924,605.40 |
|
Other Income |
4,503.87 |
- |
2,371.73 |
|
Total Revenues |
8,698,735.92 |
5,358,593.88 |
3,926,977.13 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Services |
5,280,891.86 |
2,936,769.08 |
2,245,187.67 |
|
Selling Expenses |
231,709.66 |
- |
- |
|
Administrative Expenses |
2,377,198.77 |
1,543,524.27 |
1,171,026.11 |
|
Total Expenses |
7,889,800.29 |
4,480,293.35 |
3,416,213.78 |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
808,935.63 |
878,300.53 |
510,763.35 |
|
Income Tax |
[100,325.31] |
[110,613.53] |
[54,114.80] |
|
|
|
|
|
|
Net Profit / [Loss] |
708,610.32 |
767,987.00 |
456,648.55 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.82 |
0.88 |
0.68 |
|
QUICK RATIO |
TIMES |
0.43 |
0.88 |
0.67 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.25 |
3.15 |
2.26 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.54 |
1.44 |
0.97 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
94.81 |
- |
- |
|
INVENTORY TURNOVER |
TIMES |
3.85 |
- |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
47.24 |
- |
- |
|
RECEIVABLES TURNOVER |
TIMES |
7.73 |
- |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
CASH CONVERSION CYCLE |
DAYS |
142.05 |
- |
- |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
60.74 |
54.80 |
57.21 |
|
SELLING & ADMINISTRATION |
% |
30.01 |
28.80 |
29.84 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
39.31 |
45.20 |
42.85 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
9.30 |
16.39 |
13.01 |
|
NET PROFIT MARGIN |
% |
8.15 |
14.33 |
11.64 |
|
RETURN ON EQUITY |
% |
33.22 |
53.92 |
69.54 |
|
RETURN ON ASSET |
% |
12.53 |
20.69 |
11.29 |
|
EARNING PER SHARE |
BAHT |
35.43 |
38.40 |
22.83 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.62 |
0.62 |
0.84 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.65 |
1.61 |
5.16 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
62.25 |
36.54 |
|
|
OPERATING PROFIT |
% |
(7.90) |
71.96 |
|
|
NET PROFIT |
% |
(7.73) |
68.18 |
|
|
FIXED ASSETS |
% |
57.51 |
(2.00) |
|
|
TOTAL ASSETS |
% |
52.33 |
(8.21) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 62.25%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
39.31 |
Deteriorated |
Industrial Average |
108.23 |
|
Net Profit Margin |
8.15 |
Impressive |
Industrial
Average |
5.85 |
|
Return on Assets |
12.53 |
Impressive |
Industrial
Average |
8.88 |
|
Return on Equity |
33.22 |
Impressive |
Industrial
Average |
16.18 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues 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 39.31%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company may have 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 8.15%, higher figure when 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 ratio is
12.53%, 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. Return on Equity ratio
is 33.22%, 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.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.82 |
Risky |
Industrial
Average |
1.61 |
|
Quick Ratio |
0.43 |
|
|
|
|
Cash Conversion Cycle |
142.05 |
|
|
|
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 0.82 times in 2012, decreased from 0.88 times, then the company may
have problems meeting its short-term obligations. 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 0.43 times in 2012,
decreased from 0.88 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 143 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.62 |
Acceptable |
Industrial
Average |
0.44 |
|
Debt to Equity Ratio |
1.65 |
Risky |
Industrial
Average |
0.77 |
|
Times Interest Earned |
- |
|
Industrial
Average |
- |
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 higher the percentage means that the company is
using less equity and has stronger leverage position.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.62 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 Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.25 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.54 |
Impressive |
Industrial
Average |
1.52 |
|
Inventory Conversion Period |
94.81 |
|
|
|
|
Inventory Turnover |
3.85 |
Acceptable |
Industrial
Average |
5.22 |
|
Receivables Conversion Period |
47.24 |
|
|
|
|
Receivables Turnover |
7.73 |
Impressive |
Industrial
Average |
2.95 |
|
Payables Conversion Period |
- |
|
|
|
The company's Account Receivable Ratio is calculated as 7.73 in 2012. This ratio measures the efficiency of
the company in managing its trade debtors to generate revenue. A lower ratio
may indicate over extension and collection problems. Conversely, a higher ratio
may indicate an overtly stringent policy. In this case, the company's A/R ratio
in 2012 is 7.73. This would suggest the
company had good performance in the management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days is
95 days at the end of 2012. This represents a negative trend. And
Inventory turnover is 3.85 times in year
2012.
The company's Total Asset Turnover is calculated as 1.54 times and 1.44
times in 2012 and 2011 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.32 |
|
|
1 |
Rs.100.04 |
|
Euro |
1 |
Rs.82.65 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIS |
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.