MIRA INFORM REPORT
|
Report Date : |
20.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
UNITED
DAIRY FOODS COMPANY
LIMITED |
|
|
|
|
Registered Office : |
3059-3059/1
Sukhumvit Road, Bangchak, Prakanong, Bangkok
10260 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.06.2010 |
|
|
|
|
Date of Incorporation : |
07.07.1972 |
|
|
|
|
Com. Reg. No.: |
0105515004328 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of dairy products |
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 : |
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
UNITED DAIRY FOODS COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 3059-3059/1 SUKHUMVIT
ROAD, BANGCHAK,
PRAKANONG, BANGKOK
10260, THAILAND
TELEPHONE : [66] 2332-8040-9,
2331-6968-71, 2747-5191-2
FAX :
[66] 2331-6891,
2331-6911, 2747-5193
E-MAIL
ADDRESS : foodservice@kimchua.co.th
REGISTRATION
ADDRESS : 879
SOI RUAMRUEDEE [BUAKERD]
BANGNA,
PRAKANONG, BANGKOK
10260, THAILAND
ESTABLISHED
: 1972
REGISTRATION
NO. : 0105515004328
CAPITAL REGISTERED : BHT. 300,000,000
CAPITAL PAID-UP : BHT.
300,000,000
FISCAL YEAR CLOSING DATE : JUNE
30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. VIJAI VIPAWATANAKUL, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 500
LINES
OF BUSINESS : DAIRY
PRODUCTS
MANUFACTURER
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 July
7, 1972 as
a private limited
company under the
name style UNITED DAIRY FOODS
COMPANY LIMITED, by Thai
groups, in order to manufacture dairy products for
domestic market. It currently
employs approximate 500
staff.
The subject’s registered
address is 879
Soi Ruamruedee, Bangna,
Prakanong, Bangkok 10260,
while the current
business address is
located at 3059-3059/1
Sukhumvit Rd., Bangchak,
Prakanong, Bangkok 10260.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vijai Vipawatanakul |
|
Thai |
82 |
|
Mr. Tong Thiranusornkij |
|
Thai |
68 |
|
Mr. Damrong Vipawatanakul |
|
Thai |
51 |
|
Mr. Thawat Thiranusornkij |
|
Thai |
43 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Vijai Vipawatanakul is
the Managing Director.
He is Thai
nationality with the
age of 82
years old.
Mr. Tong Thiranusornkij is
the Deputy Managing
Director.
He is Thai
nationality with the age
of 68 years
old.
Mrs. Srisukhon Sakkhamchorn is
the Production Manager.
She is Thai
nationality.
Mr. Thawat Thiranusornkij the
Research & Development
Manager.
He is Thai
nationality with the age
of 43 years
old.
Ms. Lavana Thiranusornkij is
the Quality Control
Manager.
She is Thai
nationality.
Mr. Damrongkij Vipawatanakul is the Factory
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of Danish butter
cookies and dairy
products such as
butter, margarine, cheese,
chocolates and milk products.
MAJOR BRANDS
“IMPERIAL”, “AMBASSADOR”, “DIAMOND”,
“UNI-PUFFS”, “CROWN” “ALLOWRIE”
and “BUGGEMAN”
PURCHASE
100% of raw
materials is purchased
from local supplies.
MAJOR SUPPLIER
Kim Chua Trading
LP. : Thailand
SALES
[LOCAL]
100% of
the products is
sold locally by Kim
Chua Trading LP.,
the subject’s affiliated
company
SUBSIDIARIES &
AFFILIATED COMPANIES
Kim Chua Trading
L.P.
Business Type: Importer of
raw materials and
distributor of dairy
product
Imperial General Foods
Industry Co., Ltd.
Business Type: Manufacturer of
cookies
United Dairy Farms
Co., Ltd.
Business Type: Distributor of
“Imperial” milk product
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 on
the credit term
of 60 days.
Local bills are
paid on the
credits term of 30 - 60
days.
BANKING
Siam
City Bank Public Co., Ltd.
[Head Office
: 1101 New Petchburi
Rd., Makkasan, Rajthevee, Bangkok 10400]
Bank
of Ayudhya Public
Co., Ltd.
[Head Office
: 1222 Rama
3 Rd., Bangpongpang, Yannawa, Bangkok 10120]
EMPLOYMENT
The subject employs
approximately 500 staff.
LOCATION DETAILS
The premise is owned for
operating administrative office in a 5 storey building at the
heading address. Premise
is located in
commercial/residential area.
Factory I and warehouse are
located at 879
Soi Ruamruedee, Sukhumvit
Road, Bangna, Bangkok
10260, Thailand. Tel:
[66] 2747-5191-2 Fax
: [66] 2747-5193.
Factory II is
located at 228
Moo 11, T. Bangpleeyai, A. Bangplee,
Samutprakarn 10540.
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT
US$ 1,000,000.
COMMENT
Subject
had good business
performance in the past year.
Strong consumption from
economic recovering has
risen demand of
the products in
2010. As well
in line with continue
growing of food
industry in 2011 has witnessed
an upward trend
of dairy products.
FINANCIAL INFORMATION
The capital was
registered at Bht. 4,000,000 divided
into 1,000 shares of
Bht. 4,000 each.
The capital was
increased later as
followings :
Bht. 8,000,000
on July 27, 1981
Bht. 20,000,000
on September 5,
1982
Bht. 70,000,000
on September 5,
1997
Bht. 300,000,000
on June 12,
2007
The latest registered
capital was increased
into Bht. 300,000,000
divided into 75,000 shares
of Bht. 4,000
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE :
[as at
October 26, 2010]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Imperial General Foods
Industry Co., Ltd. Nationality: Thai Address : 3059-3059/1-3 Sukhumvit
Rd., Bangchak,
Prakanong, Bangkok |
27,500 |
36.66 |
|
Kim Chua Trading
Limited Partnership Nationality: Thai Address : 3059-3059/1-3 Sukhumvit
Rd., Bangchak,
Prakanong, Bangkok |
27,500 |
36.66 |
|
Mr. Vijai Vipawatanakul Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
8,715 |
11.62 |
|
Mr. Tong Thiranusornkij Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
8,055 |
10.74 |
|
United Dairy Farms
Co., Ltd. Nationality: Thai Address : 3059-3059/1-3 Sukhumvit
Rd., Bangchak,
Prakanong, Bangkok |
2,500 |
3.33 |
|
Mrs. Nanthana Kusolsongserm Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
200 |
0.26 |
|
Mrs. Thipa Vipawatanakul Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
90 |
0.12 |
|
|
|
|
|
Mrs. Pornpimol Thiranusornkij Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
90 |
0.12 |
|
Mr. Damrong Vipawatanakul Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
50 |
0.07 |
|
Mrs. Suwanna Mahakarn Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
50 |
0.07 |
|
Mr. Damrongchai Vipawatanakul Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
50 |
0.07 |
|
Mr. Damrongkij Vipawatanakij Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
50 |
0.07 |
|
Mr. Thawat Thiranusornkij Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
50 |
0.07 |
|
Mr. Monsan Thiranusornkij Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
50 |
0.07 |
|
Ms. Pojanant Thiranusornkij Nationality: Thai Address : 958/14
Sukhumvit Rd., Bangna,
Prakanong, Bangkok |
50 |
0.07 |
Total Shareholders : 15
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Suwanna Sermsawatsri
No. 421
BALANCE SHEET [BAHT]
The
latest financial figures
published for June
30, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents
|
13,493,946.56 |
2,024,853.71 |
|
Trade Accts. & Notes Receivable |
547,676,371.00 |
612,461,414.47 |
|
Inventories |
32,565,314.98 |
52,565,314.98 |
|
Other Current Assets |
4,370,179.24 |
- |
|
Total Current Assets
|
598,105,811.78 |
667,051,583.16 |
|
|
|
|
|
Long-term Loan in Related
Company |
230,000,000.00 |
230,000,000.00 |
|
Fixed Assets |
294,070,124.45 |
281,138,868.18 |
|
Intangible Assets |
1,436,301.37 |
- |
|
Other Assets |
73,665.07 |
4,840,616.25 |
|
Total Assets |
1,123,685,902.67 |
1,183,031,067.59 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft &
Loan from Bank |
- |
64,538,815.34 |
|
Short Term Loan
from Financial Institution |
165,944,000.00 |
159,201,249.66 |
|
Current Portion of
Long-term Loan |
75,731,660.54 |
89,105,935.20 |
|
Trade Accts. & Notes
Payable |
461,583,630.77 |
430,243,583.53 |
|
Other Current Liabilities |
13,360,190.65 |
4,822,277.15 |
|
Total Current Liabilities |
716,619,481.96 |
747,911,860.88 |
|
Long Term Loan,
Net of Current Portion |
182,047,061.34 |
243,086,600.55 |
|
Total Liabilities |
898,666,543.30 |
990,998,461.43 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 4,000
par value authorized, issued
and fully paid share
capital 75,000 shares |
300,000,000.00 |
300,000,000.00 |
|
Capital Paid |
300,000,000.00 |
300,000,000.00 |
|
Assets at Revaluation
Surplus |
132,907,392.54 |
132,907,392.54 |
|
Retained Earning -
Unappropriated |
[207,888,033.17] |
[240,874,786.38] |
|
Total Shareholders' Equity |
225,019,359.37 |
192,032,606.16 |
|
Total Liabilities & Shareholders' Equity |
1,123,685,902.67 |
1,183,031,067.59 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
1,554,741,058.16 |
1,553,730,969.79 |
|
Other Income |
9,012,732.05 |
3,899,753.06 |
|
Total Sales |
1,563,753,790.21 |
1,557,630,722.85 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,456,103,879.11 |
1,464,738,412.19 |
|
Selling Expenses |
22,301,193.10 |
18,906,704.22 |
|
Administrative Expenses |
345,762.66 |
653,255.76 |
|
Other Expenses |
1,685,821.99 |
2,175,537.07 |
|
Total Expenses |
1,480,436,658.86 |
1,489,473,909.24 |
|
Profit / [Loss] Before Interest
Expenses & Income Tax |
83,317,133.35 |
71,156,813.61 |
|
Interest Expenses |
[35,670,009.07] |
[52,590,559.61] |
|
Income Tax |
[14,660,371.07] |
[5,994,540.70] |
|
Net Profit / [Loss] |
32,986,753.21 |
12,571,713.30 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.83 |
0.89 |
|
QUICK RATIO |
TIMES |
0.78 |
0.82 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.29 |
5.53 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.38 |
1.31 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
8.16 |
13.10 |
|
INVENTORY TURNOVER |
TIMES |
44.71 |
27.87 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
128.58 |
143.88 |
|
RECEIVABLES TURNOVER |
TIMES |
2.84 |
2.54 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
115.70 |
107.21 |
|
CASH CONVERSION CYCLE |
DAYS |
21.03 |
49.76 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
93.66 |
94.27 |
|
SELLING & ADMINISTRATION |
% |
1.46 |
1.26 |
|
INTEREST |
% |
2.29 |
3.38 |
|
GROSS PROFIT MARGIN |
% |
6.92 |
5.98 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.36 |
4.39 |
|
NET PROFIT MARGIN |
% |
2.12 |
0.81 |
|
RETURN ON EQUITY |
% |
14.66 |
6.55 |
|
RETURN ON ASSET |
% |
2.94 |
1.06 |
|
EARNING PER SHARE |
BAHT |
439.82 |
167.62 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.80 |
0.84 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.99 |
5.16 |
|
TIME INTEREST EARNED |
TIMES |
2.34 |
1.30 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
0.07 |
|
|
OPERATING PROFIT |
% |
22.24 |
|
|
NET PROFIT |
% |
162.39 |
|
|
FIXED ASSETS |
% |
4.60 |
|
|
TOTAL ASSETS |
% |
(5.02) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
6.92 |
Deteriorated |
Industrial Average |
16.13 |
|
Net Profit Margin |
2.12 |
Deteriorated |
Industrial Average |
8.16 |
|
Return on Assets |
2.94 |
Deteriorated |
Industrial Average |
12.55 |
|
Return on Equity |
14.66 |
Deteriorated |
Industrial Average |
32.73 |
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 6.92%. 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 2.12%.
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 2.94%.
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 14.66%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
0.83 |
Risky |
Industrial Average |
1.08 |
|
Quick Ratio |
0.78 |
|
|
|
|
Cash Conversion Cycle |
21.03 |
|
|
|
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 0.83 times in 2010, decrease from 0.89 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 0.78 times in 2010,
decrease from 0.82 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 22 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.80 |
Impressive |
Industrial Average |
0.55 |
|
Debt to Equity Ratio |
3.99 |
Risky |
Industrial Average |
(9.24) |
|
Times Interest Earned |
2.34 |
Deteriorated |
Industrial Average |
5.85 |
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
stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 2.34 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 0.8 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
5.29 |
Impressive |
Industrial Average |
2.94 |
|
Total Assets Turnover |
1.38 |
Satisfactory |
Industrial Average |
1.45 |
|
Inventory Conversion Period |
8.16 |
|
|
|
|
Inventory Turnover |
44.71 |
Impressive |
Industrial Average |
9.99 |
|
Receivables Conversion Period |
128.58 |
|
|
|
|
Receivables Turnover |
2.84 |
Acceptable |
Industrial Average |
3.90 |
|
Payables Conversion Period |
115.70 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.98 |
|
UK Pound |
1 |
Rs.72.68 |
|
Euro |
1 |
Rs.64.16 |
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.