MIRA INFORM REPORT
|
Report No. : |
325856 |
|
Report Date : |
08.06.2015 |
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) : |
31.12.2013 |
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|
|
Date of Incorporation : |
13.01.2010 |
|
|
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Com. Reg. No.: |
0105553005115 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
The subject is engaged in contract manufacturing various kinds of personal care and 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 OEM, and breast enlargement series |
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No of Employees : |
30 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand has had a strong economy due in part to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand 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 both 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. Government approved flood mitigation projects, worth $11.7 billion, were started in 2012 to prevent a repeat. Thai growth slowed in 2013 and has remained low since, as the country faced political uncertainty and a coup in May 2014. The interim government is implementing a special $11 billion short-term stimulus package and has approved a budget of more than $80 billion to aid an economic rebound.
|
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,
084 360-6930, 081
814-6388,
080
081-4447
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.
NANMANAT KHUNAKONCHOTIPHAN, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 30
LINES
OF BUSINESS : COSMETIC PRODUCTS
CONTRACT 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 contract
manufacturing service various
kinds of cosmetic products
with GMP quality
standard, to OEM
customers both domestic and
international. It currently
employs approximately 30 staff.
The
subject’s registered and
operation address was
initially 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 subject’s
current operating address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Nanmanat Khunakonchotiphan |
|
Thai |
40 |
|
Mrs. Siriphan Pichetveerachai |
|
Thai |
50 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Ms. Nanmanat Khunakonchotiphan is
the Managing Director.
She is Thai
nationality with the
age of 40
years old.
Ms. Ramida Musikong is
the International Sales
Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
contract manufacturing various
kinds of personal care
and 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 OEM, 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, Malaysia and
Middle East.
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
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
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject 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 contract
manufacturer of cosmetic
products under GMP (Good
Manufacturing Practice). Its sales
remains low, while its
business performance is
growing 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, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Nanmanat Khunakonchotiphan 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, 2014]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
20,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
20,000 |
100.00 |
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December 31,
2013, 2012 &
2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash in Hand
& at Bank |
1,315,746.10 |
385,577.96 |
2,005,181.31 |
|
Trade Account Receivable |
1,826,453.06 |
1,125,278.74 |
- |
|
Inventories |
3,162,715.70 |
1,371,727.00 |
- |
|
Other Current Assets
|
- |
- |
7,899.78 |
|
|
|
|
|
|
Total Current Assets
|
6,304,914.86 |
2,882,583.70 |
2,013,081.09 |
|
Equipment |
2,239,536.42 |
2,676,966.54 |
1,699,602.87 |
|
Retention Rate |
96,000.00 |
96,000.00 |
- |
|
Total Assets |
8,640,451.28 |
5,655,550.24 |
3,712,683.96 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Account Payable |
134,340.00 |
- |
- |
|
Loan from Related
Person |
5,070,000.00 |
2,970,000.00 |
1,720,000.00 |
|
Other Liabilities |
484,894.46 |
552,604.37 |
568,348.41 |
|
|
|
|
|
|
Total Current Liabilities |
5,689,234.46 |
3,522,604.37 |
2,288,348.41 |
|
Total Liabilities |
5,689,234.46 |
3,522,604.37 |
2,288,348.41 |
|
|
|
|
|
|
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 |
2,751,216.82 |
1,932,945.87 |
1,224,335.55 |
|
Total Shareholders' Equity |
2,951,216.82 |
2,132,945.87 |
1,424,335.55 |
|
Total Liabilities &
Shareholders' Equity |
8,640,451.28 |
5,655,550.24 |
3,712,683.96 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales & Services Income |
8,816,460.34 |
8,694,232.05 |
5,358,593.88 |
|
Other Income |
1,731.44 |
4,503.87 |
- |
|
Total Revenues |
8,818,191.78 |
8,698,735.92 |
5,358,593.88 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Services |
4,817,108.71 |
5,280,891.86 |
2,936,769.08 |
|
Selling Expenses |
371,574.21 |
231,709.66 |
- |
|
Administrative Expenses |
2,650,031.43 |
2,377,198.77 |
1,543,524.27 |
|
Total Expenses |
7,838,714.35 |
7,889,800.29 |
4,480,293.35 |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
979,477.43 |
808,935.63 |
878,300.53 |
|
Income Tax |
[161,206.48] |
[100,325.31] |
[110,613.53] |
|
|
|
|
|
|
Net Profit / [Loss] |
818,270.95 |
708,610.32 |
767,987.00 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.11 |
0.82 |
0.88 |
|
QUICK RATIO |
TIMES |
0.55 |
0.43 |
0.88 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.94 |
3.25 |
3.15 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.02 |
1.54 |
1.44 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
239.64 |
94.81 |
- |
|
INVENTORY TURNOVER |
TIMES |
1.52 |
3.85 |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
75.61 |
47.24 |
- |
|
RECEIVABLES TURNOVER |
TIMES |
4.83 |
7.73 |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
10.18 |
- |
- |
|
CASH CONVERSION CYCLE |
DAYS |
305.08 |
142.05 |
- |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
54.64 |
60.74 |
54.80 |
|
SELLING & ADMINISTRATION |
% |
34.27 |
30.01 |
28.80 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
45.38 |
39.31 |
45.20 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
11.11 |
9.30 |
16.39 |
|
NET PROFIT MARGIN |
% |
9.28 |
8.15 |
14.33 |
|
RETURN ON EQUITY |
% |
27.73 |
33.22 |
53.92 |
|
RETURN ON ASSET |
% |
9.47 |
12.53 |
20.69 |
|
EARNING PER SHARE |
BAHT |
40.91 |
35.43 |
38.40 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.66 |
0.62 |
0.62 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.93 |
1.65 |
1.61 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
1.41 |
62.25 |
|
|
OPERATING PROFIT |
% |
21.08 |
(7.90) |
|
|
NET PROFIT |
% |
15.48 |
(7.73) |
|
|
FIXED ASSETS |
% |
(16.34) |
57.51 |
|
|
TOTAL ASSETS |
% |
52.78 |
52.33 |
|
ANNUAL
GROWTH : IMPRESSIVE
An annual sales growth is 1.41%. Turnover has increased from THB
8,694,232.05 in 2012 to THB 8,816,460.34 in 2013. While net profit has
increased from THB 708,610.32 in 2012 to THB 818,270.95 in 2013. And total
assets has increased from THB 5,655,550.24 in 2012 to THB 8,640,451.28 in 2013.
PROFITABILITY
: IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
45.38 |
Deteriorated |
Industrial Average |
119.16 |
|
Net Profit Margin |
9.28 |
Impressive |
Industrial Average |
5.84 |
|
Return on Assets |
9.47 |
Impressive |
Industrial Average |
6.66 |
|
Return on Equity |
27.73 |
Impressive |
Industrial Average |
11.39 |
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 45.38%. 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 9.28%, 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 9.47%, 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 27.73%, 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 |
1.11 |
Acceptable |
Industrial Average |
1.61 |
|
Quick Ratio |
0.55 |
|
|
|
|
Cash Conversion Cycle |
305.08 |
|
|
|
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 1.11 times in 2013, increased from 0.82 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 0.55 times in 2013,
increased from 0.43 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 306 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: RISKY
LEVERAGE
RATIO
|
Debt Ratio |
0.66 |
Acceptable |
Industrial Average |
0.42 |
|
Debt to Equity Ratio |
1.93 |
Risky |
Industrial Average |
0.72 |
|
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 0.66 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 Downtrend
Times Interest Earned Stable
ACTIVITY
: SATISFACTORY
ACTIVITY
RATIO
|
Fixed Assets Turnover |
3.94 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.02 |
Satisfactory |
Industrial Average |
1.14 |
|
Inventory Conversion Period |
239.64 |
|
|
|
|
Inventory Turnover |
1.52 |
Deteriorated |
Industrial Average |
4.41 |
|
Receivables Conversion Period |
75.61 |
|
|
|
|
Receivables Turnover |
4.83 |
Impressive |
Industrial Average |
2.21 |
|
Payables Conversion Period |
10.18 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.83 and 7.73 in
2013 and 2012 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 2013
decreased from 2012. This would suggest the company had deteriorated 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 increased from 95 days at the
end of 2012 to 240 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 3.85 times in year 2012 to 1.52 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.02 times and 1.54
times in 2013 and 2012 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
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
0.44 |
25.00 |
11.00 |
|
ACTIVITY RATIO |
2.67 |
20.00 |
53.40 |
|
PROFITABILITY RATIO |
3.00 |
25.00 |
75.00 |
|
LEVERAGE RATIO |
0.67 |
10.00 |
6.70 |
|
ANNUAL GROWTH |
3.20 |
20.00 |
64.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
210.10 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.89 |
|
|
1 |
Rs. 97.97 |
|
Euro |
1 |
Rs. 71.81 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
DPT |
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.