MIRA INFORM
REPORT
|
Report Date : |
08.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
N & N
FOODS COMPANY LIMITED |
|
|
|
|
Registered Office : |
5/7-8, 5/10 Moo
4, Sai Setthakij
Road, T. Nadee, A. Muang, Samutsakorn
74000, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
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Date of Incorporation : |
03.01.1990 |
|
|
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Com. Reg. No.: |
0105533000649 |
|
|
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|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor &
Exporter of frozen food products |
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 |
|
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 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
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
N & N
FOODS COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 5/7-8, 5/10 MOO
4, SAI SETTHAKIJ
ROAD, T. NADEE,
A.
MUANG, SAMUTSAKORN 74000,
THAILAND
TELEPHONE : [66] 34
425-279, 34 826-338,
34 426-952
FAX :
[66] 34
426-951, 34 423-537
E-MAIL
ADDRESS : khaesuda@nnfoods.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1990
REGISTRATION
NO. : 0105533000649
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT.
50,000,000
FISCAL YEAR CLOSING DATE : MARCH
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. ICHIRO GOHARA,
JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 1,000
LINES
OF BUSINESS : FROZEN FOOD
PRODUCTS
MANUFACTURER, DISTRIBUTOR
& 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 January
3, 1990 as
a private limited
company under the registered
name style N & N
FOODS COMPANY LIMITED.
by Thai and Japanese
groups. Its business
objective is to
manufacture, distribute and
export various kinds
of frozen food products.
It currently employs
approximate 1,000 staff.
The
subject is a
subsidiary of Maruha
Nichiro Foods Inc.,
in Japan.
The
subject’s registered address
is 5/7-8, 5/10
Moo 4, Sai
Sethakij Rd., T. Nadee,
A. Muang, Samutsakorn
74000, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Masato Tajima |
|
Japanese |
58 |
|
Mr. Tomohito Watanabe |
[x] |
Japanese |
43 |
|
Mr. Hideo Kikuchi |
|
Japanese |
56 |
|
Mr. Masaru Ikemi |
|
Japanese |
53 |
|
Mr. Masaru Yaki |
|
Japanese |
54 |
|
Mr. Ichiro Gohara |
[x] |
Japanese |
51 |
|
Mr. Kazufumi Kaibe |
[x] |
Japanese |
62 |
AUTHORIZED PERSON
Any of the
mentioned directors [x] can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ichiro Gohara is
the Managing Director.
He is Japanese
nationality with the
age of 51
years old.
Mr. Tomohito Watanabe is
the Deputy Managing Director.
He is Japanese
nationality with the
age of 43
years old.
Mr. Shiniji Kawaguchi is
the G.M & Factory Manager.
He is Japanese
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing and exporting
various kinds of frozen food products,
consist of 3
main products as
follows:
1. Thai
Cuisine Foods
- Thai
green curry
- Tom
yam soup
2. Asian Cuisine
Foods
- Breaded
products
- Asian
food
3. Snack & Sweet in Japanese
styles
- Seafood
pizza Japanese style
- Seafood
pizza Korean style
- Edamame
[green soybeans] roll
- Tsukune
Kushi
- etc.
PRODUCTION CAPACITY
30 tons per day
PURCHASE
80% of raw
materials is purchased
from local supplier,
the remaining 20%
is imported from
Japan and Republic
of China.
MAJOR SUPPLIER
Narong
Seafood Co., Ltd.
EXPORT
Most of the
products are exported
to Japan, U.S.A.,
and the countries
in Europe, and
the rest is
sold locally.
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 15-30 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Mports are by
T/T.
Exports are against
T/T.
BANKING
JP
Morgan Chase Bank
NA. : Bangkok
Branch
Siam
Commercial Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
1,000 staff.
The
premise is rented
for administrative office,
factory and warehouse
on 37,350 square
meters of land,
at the heading
address. Premise is
located in provincial, on the
outskirts of Bangkok.
CREDIT
OF US$ 1,000,000
AGAINST D/A TERMS
SHOULD BE IN
ORDER.
The positive
for the overall
economy, given the
frozen food products industry
had a big
improvement in 2010.
Generally, frozen food
products industry remained
in good condition
for both domestic
consumption and export
markets. Subject reported
strong sales in
2010 as well
as expanding steadily.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 50,000,000 divided into 50,000
shares of Bht. 1,000
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at June
30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Maruha Nichiro Foods
Inc. Nationality: Japanese Address : 2-20-3
Chome Toyotsu, Koto-ku,
Tokyo, Japan
|
48,198 |
96.40 |
|
Narong Seafood Co.,
Ltd. Nationality: Thai Address : 1868/78
Charoenkrung Rd., Yannawa,
Sathorn, Bangkok |
1,796 |
3.59 |
|
Mrs. Vanida Pibultanapattana Nationality: Thai Address : 2/92
Charoenkrung Rd., Thungwatdon,
Sathorn, Bangkok |
3 |
|
|
Mr. Viroj Limsanit Nationality: Thai Address : 236/61
Nanglinchee Rd., Bangpongpang,
Yannawa, Bangkok |
1 |
= 0.01 |
|
Mr. Kazufumi Kaibe Nationality: Japanese Address : 2-809-14,
Teraodai Nishiku,
Ningada-city, Japan |
1 |
|
|
Mr. Ichiro Gohara Nationality: Japanese Address : 4-14-7-4002, Takanawa,
Minato-ku, Tokyo, Japan |
1 |
|
Total Shareholders : 6
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Bongkot Amsa-ngiem No.
3684
BALANCE SHEET [BAHT]
The
latest financial figures
published for March
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalent |
61,705,788 |
52,878,786 |
|
Trade Accounts Receivable |
59,782,829 |
44,062,536 |
|
Other Receivable Related
Company |
2,294,123 |
3,027,175 |
|
Inventories |
115,605,057 |
105,945,705 |
|
Other Current Assets |
28,022,505 |
20,668,404 |
|
|
|
|
|
Total Current Assets
|
267,410,302 |
226,582,606 |
|
|
|
|
|
Fixed Assets |
158,608,701 |
157,360,688 |
|
Intangible Assets |
349,788 |
578,508 |
|
Other Assets |
1,566,603 |
1,562,885 |
|
Total Assets |
427,935,394 |
386,084,687 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
48,462,783 |
24,487,863 |
|
Other Payable Related Company |
1,907,813 |
1,972,552 |
|
Current Portion of Financial Lease Contract Liabilities |
770,978 |
705,994 |
|
Other Current Liabilities |
14,566,101 |
16,713,099 |
|
|
|
|
|
Total Current Liabilities |
65,707,675 |
43,879,508 |
|
|
|
|
|
Financial Lease Contract
Liabilities, net of Current Portion |
1,321,342 |
2,092,320 |
|
Total Liabilities |
67,029,017 |
45,971,828 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 50,000 shares |
50,000,000 |
50,000,000 |
|
|
|
|
|
Capital Paid |
50,000,000 |
50,000,000 |
|
Statutory Reserve |
5,000,000 |
5,000,000 |
|
Retained Earning-
Unappropriated |
305,906,377 |
285,112,859 |
|
Total Shareholders' Equity |
360,906,377 |
340,112,859 |
|
Total Liabilities & Shareholders' Equity |
427,935,394 |
386,084,687 |
PROFIT & LOSS ACCOUNT
|
Sale |
2011 |
2010 |
|
|
|
|
|
Sales Income |
903,128,714 |
797,412,384 |
|
Gain on Exchange
Rate |
8,309,940 |
5,040,150 |
|
Other Income |
4,806,008 |
3,939,322 |
|
Total Sales |
916,244,662 |
806,391,856 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
803,877,098 |
676,015,688 |
|
Selling Expenses |
43,236,965 |
43,342,835 |
|
Administrative Expenses |
48,117,311 |
57,474,148 |
|
Total Expenses |
895,231,374 |
776,832,671 |
|
|
|
|
|
Profit Before Financial Cost |
21,013,288 |
29,559,185 |
|
Financial Cost |
[219,770] |
[278,955] |
|
|
|
|
|
Net Profit / [Loss] |
20,793,518 |
29,280,230 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
4.07 |
5.16 |
|
QUICK RATIO |
TIMES |
1.88 |
2.28 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.69 |
5.07 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.11 |
2.07 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
52.49 |
57.20 |
|
INVENTORY TURNOVER |
TIMES |
6.95 |
6.38 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
24.16 |
20.17 |
|
RECEIVABLES TURNOVER |
TIMES |
15.11 |
18.10 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
22.00 |
13.22 |
|
CASH CONVERSION CYCLE |
DAYS |
54.65 |
64.15 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
89.01 |
84.78 |
|
SELLING & ADMINISTRATION |
% |
10.12 |
12.64 |
|
INTEREST |
% |
0.02 |
0.03 |
|
GROSS PROFIT MARGIN |
% |
12.44 |
16.35 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.33 |
3.71 |
|
NET PROFIT MARGIN |
% |
2.30 |
3.67 |
|
RETURN ON EQUITY |
% |
5.76 |
8.61 |
|
RETURN ON ASSET |
% |
4.86 |
7.58 |
|
EARNING PER SHARE |
BAHT |
41.59 |
58.56 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.16 |
0.12 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.19 |
0.14 |
|
TIME INTEREST EARNED |
TIMES |
95.61 |
105.96 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
13.26 |
|
|
OPERATING PROFIT |
% |
(28.91) |
|
|
NET PROFIT |
% |
(28.98) |
|
|
FIXED ASSETS |
% |
0.79 |
|
|
TOTAL ASSETS |
% |
10.84 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
12.44 |
Acceptable |
Industrial
Average |
22.60 |
|
Net Profit Margin |
2.30 |
Impressive |
Industrial
Average |
(24.13) |
|
Return on Assets |
4.86 |
Impressive |
Industrial
Average |
(2.31) |
|
Return on Equity |
5.76 |
Impressive |
Industrial
Average |
(1.23) |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from sales 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 12.44%. 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 2.3% 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
4.86%, 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 5.76%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
4.07 |
Deteriorated |
Industrial
Average |
30.10 |
|
Quick Ratio |
1.88 |
|
|
|
|
Cash Conversion Cycle |
54.65 |
|
|
|
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 4.07 times in 2011, decrease from 5.16 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 1.88 times in 2011,
decrease from 2.28 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 55 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.16 |
Impressive |
Industrial
Average |
0.65 |
|
Debt to Equity Ratio |
0.19 |
Impressive |
Industrial
Average |
1.76 |
|
Times Interest Earned |
95.61 |
Deteriorated |
Industrial
Average |
251.60 |
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 a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 95.62 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 0.16 less than 0.5, most of the company's
assets are financed through equity.
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 |
5.69 |
Deteriorated |
Industrial
Average |
30.79 |
|
Total Assets Turnover |
2.11 |
Impressive |
Industrial
Average |
1.51 |
|
Inventory Conversion Period |
52.49 |
|
|
|
|
Inventory Turnover |
6.95 |
Acceptable |
Industrial
Average |
13.08 |
|
Receivables Conversion Period |
24.16 |
|
|
|
|
Receivables Turnover |
15.11 |
Acceptable |
Industrial
Average |
21.03 |
|
Payables Conversion Period |
22.00 |
|
|
|
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.44.80 |
|
UK Pound |
1 |
Rs.72.86 |
|
Euro |
1 |
Rs.63.11 |
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.