MIRA INFORM REPORT

Report Date :

09.05.2014

IDENTIFICATION DETAILS

Name :	ATLANTIC LABORATORIES CORP. LTD.
Registered Office :	2038 Sukhumvit Road, Bangchak, Prakanong, Bangkok 10260
Country :	Thailand
Financials (as on) :	31.12.2012
Date of Incorporation :	1989
Com. Reg. No.:	0105532027764
Legal Form :	Private Limited Company
Line of Business :	Importer, Distributor and Exporter of Pharmaceuticals and Raw Products
No. of Employees :	25

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Thailand	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 in 2013 implemented a nation-wide 300 baht ($10) per day minimum wage policy and deployed 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. This was expected to lead to an economic upsurge but growth has remained slow, in part due to ongoing political unrest and resulting uncertainties. Spending on infrastructure will require re-approval once a new government is seated.

Source : CIA

Company name

ATLANTIC LABORATORIES CORP. LTD.

SUMMARY

BUSINESS ADDRESS : 2038 SUKHUMVIT ROAD, BANGCHAK,

PRAKANONG, BANGKOK 10260

TELEPHONE : [66] 2311-0111, 2311-0104-9, 2311-0475-9

FAX : [66] 2331-5697, 2332-0907

E-MAIL ADDRESS : atlantic@atlanticlab.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1989

REGISTRATION NO. : 0105532027764 [Former : 2774/2532]

TAX ID NO. : 3101920208

CAPITAL REGISTERED : BHT. 30,000,000

CAPITAL PAID-UP : BHT. 30,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. KULAWUTH WANASAWAT, THAI

MANAGING DIRECTOR

NO. OF STAFF : 25

LINES OF BUSINESS : PHARMACEUTICALS AND RAW PRODUCTS

IMPORTER, DISTRIBUTOR AND 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 March 27, 1989 as a private limited company under the name style ATLANTIC LABORATORIES CORP. LTD., by Thai groups, with the business objective to engage in pharmaceutical trading business. It currently employs 25 staff.

The subject’s registered address is 2038 Sukhumvit Rd., Bangchak, Prakanong, Bangkok 10260, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name		Nationality	Age
Mr. Busarin Wanasawat	[x]	Thai	52
Mr. Kulawuth Wanasawat	[x]	Thai	54
Mr. Boonsom Martin		Thai	89
Mr. Pitchaya Wanasawat		Thai	54
Mrs. Arunwan Wattanasap		Thai	62

AUTHORIZED PERSON

One of the mentioned directors [x] can sign or any two of the rest directors can jointly sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Kulawuth Wanasawat is the Managing Director.

He is Thai nationality with the age of 54 years old.

Mr. Busarin Wanasawat is the Deputy Managing Director.

He is Thai nationality with the age of 52 years old.

Mrs. Piyapha Sathapornkul [Deekarnchanakul] is the Export Sales Manager.

She is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing various kinds of pharmaceutical products, as well as chemicals for pharmaceutical production. The subject also exports local pharmaceutical products to overseas markets.

The products are as the followings:

Bacin - Co-trimoxazole (Trimethoprim/Sulfamethoxazole)

Cadramine V-lotion - Calamine, Zn oxide, Diphenhydramine HCI

Ditoin - Phenytoin sodium

Fluxetin - Fluoxetine HCI

Forzid - Ceftazidime pentahydrate

Maril - Metoclopramide HCI

Oprazole - Omeprazole

Ratic - Ranitidine

Roxicin - Roxithromycin

Tripta - Amitriptyline HCI

PURCHASE

The Thai products are purchased from local suppliers.

IMPORT

The international products are imported from Germany, New Zealand, Spain, Italy, Taiwan, France, India, Republic of China and Africa.

MAJOR SUPPLIER

Atlantic Pharmaceutical Co., Ltd. : Thailand

SALES

The products are sold to customers both local and overseas, mainly in Malaysia, Philippines, Taiwan, Sri Lanka, Republic of China, Hong Kong, Singapore, Vietnam, Laos, New Zealand, U.A.E, Germany, Canada, Africa and Myanmar.

MAJOR CUSTOMERS

Atlantic Laboratories GmbH. : Germany

Atlantic Laboratories [Yangoon] Co., Ltd. : Myanmar

Atlantic Laboratories [HN] Inc. : Republic of China

RELATED AND AFFILIATED COMPANY

Atlantic Pharmaceutical Co., Ltd.

Business Type : Manufacturer of pharmaceutical 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 according 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

Bangkok Bank Public Co., Ltd.

Kasikornbank Public Co., Ltd.

TMB Public Co., Ltd.

EMPLOYMENT

The subject currently employs 25 staff.

LOCATION DETAILS

The premise is rented for administrative office at the heading address. Premise is located in commercial/residential area.

COMMENT

The subject was formed in 1989 as an importer, distributor and exporter of pharmaceuticals and related products. With more than twenty five year expertise in this business, it has completed confidence that its products meet the top quality standards of the world. Subject has strong customer base in both domestic and international markets. Subject still maintains active business.

FINANCIAL INFORMATION

The capital was registered at Bht. 1,000,000 divided into 10,000 shares of Bht. 100 each.

On June 29, 1992, the capital was increased to Bht. 30,000,000 divided into 300,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at April 27, 2013]

NAME	HOLDING	%
Mr. Busarin Wanasawat Nationality: Thai Address : 381/7 Moo 10, Nongbon, Praves, Bangkok	149,750	49.92
Mr. Kulawuth Wanasawat Nationality: Thai Address : 2038 Sukhumvit Rd., Bangchak, Prakanong, Bangkok	149,750	49.92
Mr. Boonsom Martin Nationality: Thai Address : 230/16 Tungwatdon, Yannawa, Bangkok	100
Mr. Pitchaya Wanasawat Nationality: Thai Address : 2038 Sukhumvit Rd., Bangchak, Prakanong, Bangkok	100
Mrs. Arunwan Wattanasap Nationality: Thai Address : 135 Sukhumvit 103 Rd., Nongbon, Praves, Bangkok	100	= 0.16
Mrs. Wannee Bunyasettha Nationality: Thai Address : 59/48 Moo 11, Sukhumvit Rd., Bangna, Prakanong, Bangkok	100
Mr. Phansak Sathapornkul Nationality: Thai Address : 525/67 Sukhumvit Rd., Samrongnua, Muang, Samutprakarn	100

Total Shareholders : 7

Share Structure [as at April 27, 2013]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	300,000	100.00
Foreign	-	-	-
Total	7	300,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Sangvorn Sutthisanont No. 0097

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2012, 2011 & 2010 were:

ASSETS

Current Assets	2012	2011	2010
Cash and Cash Equivalents	1,745,842.55	932,654.34	489,720.71
Trade Accounts & Other Receivable	79,289,088.44	78,072,783.07	82,770,960.00
Other Current Assets	5,238,718.30	5,297,474.07	3,713,884.31
Total Current Assets	86,273,649.29	84,302,911.48	86,974,564.72
Fixed Assets	8,392,467.66	8,419,265.53	8,472,565.11
Other Non-current Assets	-	-	200,300.53
Total Assets	94,666,116.95	92,722,177.01	95,647,430.36

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2012	2011	2010
Bank Overdraft & Short-term Loan from Financial Institutions	26,936,670.08	28,267,190.34	33,475,136.32
Trade Accounts & Other Payable	33,970,620.26	31,544,330.10	32,725,589.37
Accrued Income Tax	89,967.99	641,283.26	80,580.39
Total Current Liabilities	60,997,258.33	60,452,803.70	66,281,306.08
Obligation for Employee Benefits	1,168,352.47	954,350.29	-
Total Liabilities	62,165,610.80	61,407,153.99	66,281,306.08
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 300,000 shares	30,000,000.00	30,000,000.00	30,000,000.00
Capital Paid	30,000,000.00	30,000,000.00	30,000,000.00
Retained Earning, Unappropriated [Deficit]	2,500,506.15	1,315,023.02	[633,875.72]
Total Shareholders' Equity	32,500,506.15	31,315,023.02	29,366,124.28
Total Liabilities & Shareholders' Equity	94,666,116.95	92,722,177.01	95,647,430.36

PROFIT & LOSS ACCOUNT

Revenue	2012	2011	2010
Sales Income	131,247,818.31	121,268,868.17	120,144,769.23
Other Income	784,734.86	4,022,083.32	4,222,309.06
Total Revenues	132,032,553.17	125,290,951.49	124,367,078.29
Expenses
Cost of Goods Sold	119,571,494.79	110,675,374.61	107,888,106.45
Selling Expenses	3,939,397.98	3,549,714.25	9,452,496.02
Administrative Expenses	5,184,522.16	5,483,505.09	3,083,512.07
Total Expenses	128,695,414.93	119,708,593.95	120,424,114.54
Profit before Financial Cost & Income Tax	3,337,138.24	5,582,357.54	3,942,963.75
Financial Cost	[1,883,908.06]	[1,924,067.79]	[2,167,784.82]
Profit before Income Tax	1,453,230.18	3,658,289.75	1,775,178.93
Income Tax	[267,747.05]	[881,430.93]	[275,580.39]
Net Profit / [Loss]	1,185,483.13	2,776,858.82	1,499,598.54

FINANCIAL ANALYSIS

ITEM	UNIT	2012	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.41	1.39	1.31
QUICK RATIO	TIMES	1.33	1.31	1.26
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	15.64	14.40	14.18
TOTAL ASSETS TURNOVER	TIMES	1.39	1.31	1.26
INVENTORY CONVERSION PERIOD	DAYS	-	-	-
INVENTORY TURNOVER	TIMES	-	-	-
RECEIVABLES CONVERSION PERIOD	DAYS	220.50	234.99	251.46
RECEIVABLES TURNOVER	TIMES	1.66	1.55	1.45
PAYABLES CONVERSION PERIOD	DAYS	103.70	104.03	110.72
CASH CONVERSION CYCLE	DAYS	116.81	130.96	140.74
PROFITABILITY RATIO
COST OF GOODS SOLD	%	91.10	91.26	89.80
SELLING & ADMINISTRATION	%	6.95	7.45	10.43
INTEREST	%	1.44	1.59	1.80
GROSS PROFIT MARGIN	%	9.49	12.05	13.72
NET PROFIT MARGIN BEFORE EX. ITEM	%	2.54	4.60	3.28
NET PROFIT MARGIN	%	0.90	2.29	1.25
RETURN ON EQUITY	%	3.65	8.87	5.11
RETURN ON ASSET	%	1.25	2.99	1.57
EARNING PER SHARE	BAHT	3.95	9.26	5.00
LEVERAGE RATIO
DEBT RATIO	TIMES	0.66	0.66	0.69
DEBT TO EQUITY RATIO	TIMES	1.91	1.96	2.26
TIME INTEREST EARNED	TIMES	1.77	2.90	1.82
ANNUAL GROWTH
SALES GROWTH	%	8.23	0.94
OPERATING PROFIT	%	(40.22)	41.58
NET PROFIT	%	(57.31)	85.17
FIXED ASSETS	%	(0.32)	(0.63)
TOTAL ASSETS	%	2.10	(3.06)

ANNUAL GROWTH : ACCEPTABLE

An annual sales growth is 8.23%. Turnover has increased from THB 121,268,868.17 in 2011 to THB 131,247,818.31 in 2012. While net profit has decreased from THB 2,776,858.82 in 2011 to THB 1,185,483.13 in 2012. And total assets has increased from THB 92,722,177.01 in 2011 to THB 94,666,116.95 in 2012.

PROFITABILITY : RISKY

PROFITABILITY RATIO

Gross Profit Margin	9.49	Deteriorated	Industrial Average	19.93
Net Profit Margin	0.90	Deteriorated	Industrial Average	4.10
Return on Assets	1.25	Deteriorated	Industrial Average	7.44
Return on Equity	3.65	Deteriorated	Industrial Average	18.06

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 9.49%. 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 0.9%. When compared with the industry average, the ratio of the company was lower.

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. When compared with the industry average, it was lower, the company's figure is 1.25%.

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, it was lower, the company's figure is 3.65%.

Trend of the average competitors in the same industry for last 5 years

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY : ACCEPTABLE

LIQUIDITY RATIO

Current Ratio	1.41	Satisfactory	Industrial Average	1.43
Quick Ratio	1.33
Cash Conversion Cycle	116.81

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 1.41 times in 2012, increased from 1.39 times, then it is generally considered to have good short-term financial strength. 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 1.33 times in 2012, increased from 1.31 times, although excluding inventory so the company still have good short-term financial strength.

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 117 days.

Trend of the average competitors in the same industry for last 5 years

Current Ratio Uptrend

LEVERAGE : ACCEPTABLE

LEVERAGE RATIO

Debt Ratio	0.66	Acceptable	Industrial Average	0.62
Debt to Equity Ratio	1.91	Risky	Industrial Average	1.61
Times Interest Earned	1.77	Impressive	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.

Times Interest Earned measuring a company's ability to meet its debt obligations. Ratio is 1.78 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 0.66 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 : SATISFACTORY

ACTIVITY RATIO

Fixed Assets Turnover	15.64	Impressive	Industrial Average	-
Total Assets Turnover	1.39	Satisfactory	Industrial Average	1.82
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	6.69
Receivables Conversion Period	220.50
Receivables Turnover	1.66	Acceptable	Industrial Average	2.52
Payables Conversion Period	103.70

The company's Account Receivable Ratio is calculated as 1.66 and 1.55 in 2012 and 2011 respectively. 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 increased from 2011. This would suggest the company had good performance in the management of its debt collections.

The company's Total Asset Turnover is calculated as 1.39 times and 1.31 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.60.00
UK Pound	1	Rs.101.75
Euro	1	Rs.83.48

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NNA

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%)

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