MIRA INFORM REPORT
|
Report No. : |
337970 |
|
Report Date : |
26.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
HETERO [THAILAND] LTD. |
|
|
|
|
Registered Office : |
10th Floor, Thairong
Tower, 1350/136-141
Pattanakarn Road, Suanluang,
Bangkok 10250 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
08.05.2007 |
|
|
|
|
Com. Reg. No.: |
0105550048816 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in importing
and distributing pharmaceutical products
e.g. cancer hormone
therapy under the
brand “ANATERO” and
antiviral drug under the
brands “ESTIVA-600” and
“TENOF”, as well
as pharmaceutical chemicals. |
|
|
|
|
No. of Employees : |
14 |
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 : |
Small Company |
|
Payment Behaviour : |
No Complaints |
|
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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, and generally pro-investment policies Thailand has historically had a strong
economy due in part to competitive industrial and agriculture exports - mostly
electronics, agricultural commodities, automobiles and parts, and processed
foods. The economy experienced slow growth and declining exports in 2014, in
part due to domestic political turmoil and sluggish global demand. With full
employment, Thailand attracts an estimated 2-4 million migrant workers from
neighboring countries, and faces labor shortages. Following the May 2014 coup
d’tat, tourism decreased 6-7% but is beginning to recover. The household debt
to GDP ratio is over 80%. 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 baht has remained
stable.
|
Source
: CIA |
Company
Name & address
HETERO [THAILAND] LTD.
SUMMARY
BUSINESS ADDRESS : 10th
FLOOR, THAIRONG TOWER,
1350/136-141 PATTANAKARN
ROAD,
SUANLUANG, BANGKOK
10250, THAILAND
TELEPHONE : [66] 2713-7620
FAX : [66] 2713-7620
E-MAIL ADDRESS : info@heterothailand.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2007
REGISTRATION NO. : 0105550048816
TAX ID NO. : 3032625234
CAPITAL REGISTERED : BHT.
2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MRS.
NATTHAYA BUNCHAKULCHAI, THAI
MANAGING DIRECTOR
NO. OF STAFF : 14
LINES OF BUSINESS : PHARMACEUTICAL AND
CHEMICAL
IMPORTER AND
DISTRIBUTOR
|
|
|
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 May
8, 2007 as
a private limited
company under the
registered name HETERO [THAILAND]
LTD., by Thai and Indian
groups, with the
business objective to import
and distribute pharmaceuticals and
chemicals for pharmaceutical production
industry. It currently
employs 14 staff.
The subject’s registered
address is 10th Floor,
Thairong Tower, 1350/136-141 Pattanakarn
Road, Suanluang, Bangkok
10250, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Natthaya Bunchakulchai |
|
Thai |
51 |
|
Mr. Veera Venkata Sunil Reddy
Thondapu |
|
Indian |
32 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mrs. Natthaya Bunchakulchai is
the Managing Director.
She is Thai
nationality with the
age of 51
years old.
Mr. Veera Venkata Sunil
Reddy Thondapu is
the General Manager.
He is Indian
nationality with the
age of 32
years old.
BUSINESS OPERATIONS
The subject is engaged in importing and
distributing pharmaceutical products
e.g. cancer hormone
therapy under the
brand “ANATERO” and
antiviral drug under the
brands “ESTIVA-600” and
“TENOF”, as well
as pharmaceutical chemicals.
PURCHASE
90% of the
products is imported
from India and
U.S.A., the remaining
10% is purchased
from local suppliers.
MAJOR SUPPLIERS
Hetero Drugs Ltd. : India
Hetero Laps Ltd. : India
Hetero USA Inc. : U.S.A.
SALES
100% of the
products is sold
locally by wholesale
to traders, manufacturers
and
end-users.
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
according to 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
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject currently
employs 14 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in
commercial/residential area.
Branch office is
located at 1st Floor,
Thairong Tower, 1350/709
Pattanakarn Road,
Suanluang, Bangkok 10250.
COMMENT
The subject’s business
performance in 2014
was considered good
with an increase
in revenues comparing
to the previous
year. Generally, the
business is still
promising as the
products are in
strong demand.
Market of pharmaceutical products
has a steady
growth and scenario
is assumed for
an increase of
consumption each year.
FINANCIAL INFORMATION
The capital was registered at
Bht. 1,000,000 divided into 10,000 shares of
Bht. 100 each with
fully paid.
On March 20,
2008, the registered
capital was increased
to Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Hetero Laps Ltd. Nationality: Indian Address : 8-3-166/1 & 2, 1st Floor,
Challa Estate, Erragadda,
Hyderabad-500108, India |
9,800 |
49.00 |
|
Mrs. Natthaya
Bunchakulchai Nationality: Thai Address : 54/1000
Moo 5, Prawet,
Bangkok |
9,005 |
45.02 |
|
Mrs. Wilaiwan Phetsiri Nationality: Thai Address : 71/241
Moo 6, T. Bangkuwad, A. Muang, Pathumthani |
1,195 |
5.98 |
Total Shareholders : 3
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
10,200 |
51.00 |
|
Foreign - Indian |
1 |
9,800 |
49.00 |
|
Total |
3 |
20,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Nantapol Waratinun No. 5808
BALANCE SHEET
[BAHT]
The latest financial figures published
as at December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
11,096,131 |
8,016,171 |
5,470,946 |
|
Short-term Investment |
18,521,010 |
18,082,122 |
3,000,000 |
|
Trade Accounts Receivable
|
31,277,103 |
35,545,956 |
24,461,484 |
|
Related Company Receivable |
- |
1,620,244 |
2,730,056 |
|
Money Paid to Related Company |
73,667 |
13,715 |
41,019 |
|
Inventories |
4,734,415 |
15,706,542 |
4,212,027 |
|
Other Current Assets
|
3,779,061 |
2,198,527 |
2,018,826 |
|
|
|
|
|
|
Total Current Assets
|
69,481,387 |
81,183,277 |
41,934,358 |
|
|
|
|
|
|
Fixed Assets |
1,017,559 |
1,627,660 |
1,200,347 |
|
Intangible Assets |
75,602 |
42,094 |
4,436 |
|
Deposits |
124,910 |
124,910 |
98,910 |
|
Total Assets |
70,699,458 |
82,977,941 |
43,238,051 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts Payable
|
- |
- |
3,589,583 |
|
Trade Accounts Payable - Related company
|
44,489,737 |
54,442,623 |
15,160,627 |
|
Current Portion of
Financial Lease Contract Liabilities |
174,469 |
367,139 |
413,223 |
|
Accrued Income Tax |
- |
186,618 |
857,938 |
|
Other Current Liabilities |
3,883,988 |
1,990,542 |
793,106 |
|
|
|
|
|
|
Total Current Liabilities |
48,548,194 |
56,986,922 |
20,814,477 |
|
Financial Lease Contract Liabilities |
381,866 |
556,335 |
203,605 |
|
Total Liabilities |
48,930,060 |
57,543,257 |
21,018,082 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and
issued share capital
20,000 shares |
2,000,000 |
2,000,000 |
2,000,000 |
|
|
|
|
|
|
Capital Paid |
2,000,000 |
2,000,000 |
2,000,000 |
|
Retained Earnings: Appropriated for statutory reserve |
200,000 |
200,000 |
200,000 |
|
Unappropriated |
19,569,398 |
23,234,684 |
20,019,969 |
|
Total Shareholders' Equity |
21,769,398 |
25,434,684 |
22,219,969 |
|
Total Liabilities & Shareholders' Equity |
70,699,458 |
82,977,941 |
43,238,051 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
157,698,951 |
67,679,269 |
53,304,029 |
|
Commission Income |
- |
7,753,224 |
11,337,083 |
|
Other Income |
2,054,403 |
516,455 |
645,049 |
|
Total Revenues |
159,753,354 |
75,948,948 |
65,285,161 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
140,417,804 |
55,511,049 |
45,253,861 |
|
Selling Expenses |
6,453,063 |
2,886,719 |
2,657,632 |
|
Administrative Expenses |
12,695,967 |
13,428,264 |
10,757,582 |
|
Total Expenses |
159,566,834 |
71,826,032 |
58,669,075 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
186,520 |
4,122,916 |
6,617,086 |
|
Financial Cost |
[43,966] |
[44,425] |
[53,958] |
|
Profit before Income
Tax |
142,554 |
4,078,491 |
6,563,128 |
|
Income Tax |
[107,840] |
[863,776] |
[1,502,727] |
|
|
|
|
|
|
Net Profit / [Loss] |
34,714 |
3,214,715 |
5,060,401 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.43 |
1.42 |
2.01 |
|
QUICK RATIO |
TIMES |
1.26 |
1.11 |
1.72 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
154.98 |
41.58 |
44.41 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.23 |
0.82 |
1.23 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
12.31 |
103.27 |
33.97 |
|
INVENTORY TURNOVER |
TIMES |
29.66 |
3.53 |
10.74 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
72.39 |
191.70 |
167.50 |
|
RECEIVABLES TURNOVER |
TIMES |
5.04 |
1.90 |
2.18 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
- |
28.95 |
|
CASH CONVERSION CYCLE |
DAYS |
84.70 |
294.98 |
172.52 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.04 |
82.02 |
84.90 |
|
SELLING & ADMINISTRATION |
% |
12.14 |
24.11 |
25.17 |
|
INTEREST |
% |
0.03 |
0.07 |
0.10 |
|
GROSS PROFIT MARGIN |
% |
12.26 |
30.20 |
37.58 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.12 |
6.09 |
12.41 |
|
NET PROFIT MARGIN |
% |
0.02 |
4.75 |
9.49 |
|
RETURN ON EQUITY |
% |
0.16 |
12.64 |
22.77 |
|
RETURN ON ASSET |
% |
0.05 |
3.87 |
11.70 |
|
EARNING PER SHARE |
BAHT |
1.74 |
160.74 |
253.02 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.69 |
0.69 |
0.49 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.25 |
2.26 |
0.95 |
|
TIME INTEREST EARNED |
TIMES |
4.24 |
92.81 |
122.62 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
133.01 |
26.97 |
|
|
OPERATING PROFIT |
% |
(95.48) |
(37.68) |
|
|
NET PROFIT |
% |
(98.92) |
(36.47) |
|
|
FIXED ASSETS |
% |
(37.48) |
35.60 |
|
|
TOTAL ASSETS |
% |
(14.80) |
91.91 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is 133.01%. Turnover has increased from THB 67,679,269.00
in 2013 to THB 157,698,951.00 in 2014. While net profit has decreased from THB
3,214,715.00 in 2013 to THB 34,714.00 in 2014. And total assets has decreased
from THB 82,977,941.00 in 2013 to THB 70,699,458.00 in 2014.
PROFITABILITY : ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.26 |
Impressive |
Industrial Average |
0.91 |
|
Net Profit Margin |
0.02 |
Deteriorated |
Industrial Average |
2.22 |
|
Return on Assets |
0.05 |
Deteriorated |
Industrial Average |
7.20 |
|
Return on Equity |
0.16 |
Deteriorated |
Industrial Average |
12.95 |
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 12.26%. When
compared with the industry average, the ratio of the company was higher,
indicated that company was more profitable than the same industry.
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 0.02%.
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 0.05%.
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 0.16%.
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 |
1.43 |
Satisfactory |
Industrial Average |
1.76 |
|
Quick Ratio |
1.26 |
|
|
|
|
Cash Conversion Cycle |
84.70 |
|
|
|
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 1.43 times in 2014, increased from 1.42 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 1.26 times in 2014,
increased from 1.11 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 85 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.69 |
Acceptable |
Industrial Average |
0.51 |
|
Debt to Equity Ratio |
2.25 |
Risky |
Industrial Average |
1.05 |
|
Times Interest Earned |
4.24 |
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 4.25 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 0.69 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 |
154.98 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.23 |
Acceptable |
Industrial Average |
3.24 |
|
Inventory Conversion Period |
12.31 |
|
|
|
|
Inventory Turnover |
29.66 |
Impressive |
Industrial Average |
25.28 |
|
Receivables Conversion Period |
72.39 |
|
|
|
|
Receivables Turnover |
5.04 |
Satisfactory |
Industrial Average |
6.54 |
|
Payables Conversion Period |
- |
|
|
|
The company's Account Receivable Ratio is calculated as 5.04 and 1.90 in
2014 and 2013 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 2014
increased from 2013. 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 has decreased from 103 days at the end of 2013
to 12 days at the end of 2014. This represents a positive trend. And Inventory
turnover has increased from 3.53 times in year 2013 to 29.66 times in year
2014.
The company's Total Asset Turnover is calculated as 2.23 times and 0.82
times in 2014 and 2013 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.66.71 |
|
|
1 |
Rs.105.10 |
|
Euro |
1 |
Rs.77.11 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.