MIRA INFORM REPORT
|
Report Date : |
14.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
K & U
ENTERPRISE CO., LTD. |
|
|
|
|
Registered Office : |
1289 Wichianchodok Road, T. Mahachai, A. Muang, Samutsakorn 74000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
06.05.2005 |
|
|
|
|
Com. Reg. No.: |
0745548001772 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and Distributor of Frozen Seafoods |
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
K & U
ENTERPRISE CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 1289
WICHIANCHODOK ROAD, T. MAHACHAI,
A.
MUANG, SAMUTSAKORN 74000
TELEPHONE : [66] 34
820-922, 34 821-126-7
FAX :
[66] 34
820-888, 34 821-077
E-MAIL
ADDRESS : thekue@kue.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0745548001772
CAPITAL REGISTERED : BHT. 120,000,000
CAPITAL PAID-UP : BHT.
120,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. TETSUO MATSUMOTO,
JAPANESE
PRESIDENT
NO.
OF STAFF : 1,300
LINES
OF BUSINESS : FROZEN SEAFOODS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was established
on May 6,
2005 as a
private limited company under
the registered name
style K & U ENTERPRISE
CO., LTD. by
Thai and Japanese groups.
Its business objective
is to manufacture
and distribute processed
frozen seafood products
to both domestic
and overseas markets. It currently
employs approximate 1,300
staff.
The
subject is a
joint venture between
The Union Frozen
Products Co., Ltd.,
the Thai company
and Kyokuyo Company
Limited, the Japanese
company.
It
has been granted
an investment promotional
privilege for the
business by the
Board Of Investment [BOI], with
the promoted certificate
number 1285[2]/2549.
The
subject’s registered address
is 1289 Wichienchodok Rd.,
T. Mahachai, A. Muang, Samutsakorn
74000, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Nitaya Thawanapong |
[-] |
Thai |
56 |
|
Mr. Anurat Kowkasai |
|
Thai |
48 |
|
Ms. Panatta Thawanapong |
[-] |
Thai |
45 |
|
Mr. Jirang Jirangkanont |
|
Thai |
48 |
|
Mr. Kenji Mogi |
|
Japanese |
45 |
|
Mr. Tetsuo Matsumoto |
[x] |
Japanese |
59 |
|
Mr. Hiroshi Kodera |
|
Japanese |
58 |
|
Mr. Keizo Yamaguchi |
[x] |
Japanese |
49 |
|
Mr. Shigeru Kondo |
|
Japanese |
53 |
|
Ms. Ladawan Srihapholvorakij |
|
Thai |
52 |
AUTHORIZED PERSON
Any of the
mentioned directors [x]
can jointly sign
with anyone of the directors
[-] on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Tetsuo Matsumoto is the
President.
He is Japanese
nationality with the
age of 59
years old.
Ms. Panatta Thawanapong is
the Managing Director.
She is Thai
nationality with the
age of 45
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing various kinds
of processed frozen
seafood products as
the followings:
-
Sushi topping,
fish products comprising:
Frozen smoked
trout, salmon slice [with
bloodmeat], frozen marinated
mackerel
slice, frozen
marinated grilled mackerel
slice, frozen salmon
slice [without
bloodmeat]
-
Squid
& Cuttlefish comprising:
Frozen cuttlefish double skinless
slice, frozen cuttlefish slice
with seasoning [natural shape]
and frozen squid
slice with seasoning
-
Octopus Products
comprising:
Frozen boiled octopus
leg slice
-
Sushi Rice Products
PRODUCTION CAPACITY
4,200 tons per
annum
PURCHASE
Raw
materials are purchased
from suppliers both
domestic and overseas,
mainly in Japan,
Malaysia, Myanmar and
India.
MAJOR
SUPPLIERS
The
Union Frozen Products
Co., Ltd. : Thailand
Kyokuyu
Co., Ltd. : Japan
SALES
90% of the products
is exported to Japan,
U.S.A., Canada and
European countries, the
remaining 10% is
sold locally through
Phan Talay Marketing
Co., Ltd..
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 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Krung
Thai Bank Public
Co., Ltd.
Sumitomo
Mitsui Banking Corporation
EMPLOYMENT
The
subject employs approximately 1,300 staff.
LOCATION
DETAILS
The
premise is owned
for administrative office,
factory and cold
storage on the
area of 11,400
square meters at the
heading address. Premise is
located in provincial, on the outskirts
of Bangkok.
REMARK
CREDIT
OF US$ 125,000
AGAINST DA TERMS
SHOULD BE IN
ORDER.
COMMENT
The subject
is a manufacturer and distributor of frozen seafood products. It
has been served to
consumers segment both
local and overseas markets.
Consumption of the products
is depending on
purchasing power and
proficiency living cost.
Meanwhile market of frozen seafood
products has strong demand,
subject also increased
productivity and sales
revenue.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 120,000,000 divided
into 120,000 shares of
Bht. 1,000 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at June
24, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
The Union Frozen
Products Co., Ltd. Nationality: Thai Address : 1259,
1094/10 Wichienchodok Rd.,
Mahachai, Muang, Samutsakorn |
60,000 |
50.00 |
|
Kyokuyo Company Limited Nationality: Japanese Address : 3-5-3
Chome Adasaka Minato-ku,
Tokyo, Japan |
59,999 |
50.00 |
|
Mr. Shigeru Kondo Nationality: Japanese Address : 3-5-3
Chome Adasaka Minato-ku,
Tokyo, Japan |
1 |
- |
Total Shareholders : 3
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Likit Sirirojsophon No.
5678
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalent |
25,027,857.88 |
33,034,744.83 |
|
Short-term Investment |
4,058,434.35 |
4,001,000.00 |
|
Trade Accounts Receivable |
28,067,167.26 |
42,374,680.44 |
|
Trade Accounts Receivable-Related Company |
97,054,828.37 |
99,697,536.87 |
|
Inventories |
226,892,939.55 |
244,490,032.67 |
|
Sale Department Receivable |
980,962.67 |
1,830,552.96 |
|
Advance Payment |
536,077.42 |
1,240,100.00 |
|
Other Current Assets |
16,215,596.51 |
32,589,738.64 |
|
|
|
|
|
Total Current Assets
|
398,833,864.01 |
459,258,386.41 |
|
|
|
|
|
Land Building & Equipment |
291,901,545.88 |
349,311,554.97 |
|
Intangible Assets |
2,584,826.98 |
2,160,472.78 |
|
Deferred Income Tax |
21,842,429.90 |
17,934,542.45 |
|
Other Assets |
4,409,703.30 |
4,316,086.14 |
|
Total Assets |
719,572,370.07 |
832,981,042.75 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Short-term Loan from Bank |
240,000,000.00 |
247,746,160.00 |
|
Trade Accounts Payable |
37,912,712.03 |
20,089,296.04 |
|
Trade Accounts Payable-Payable |
148,911,793.07 |
182,458,306.46 |
|
Current Portion of Long-term Loans |
59,874,880.00 |
58,497,440.00 |
|
Current Portion of Lease Contract Liabilities |
8,128,337.91 |
7,438,329.73 |
|
Current Portion of Hire-purchase Payable |
- |
29,856.68 |
|
Other Payable |
184,822.82 |
3,009,110.89 |
|
Other Payable-Related Company |
5,198,993.37 |
6,016,538.96 |
|
Other Current Liabilities |
25,230,399.95 |
23,568,354.77 |
|
|
|
|
|
Total Current Liabilities |
525,441,939.15 |
548,853,393.53 |
|
Long-term Loan, net |
- |
58,497,440.00 |
|
Lease Contract Liabilities, net |
- |
7,941,343.00 |
|
Total Liabilities |
525,441,939.15 |
615,292,176.53 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 120,000 shares |
120,000,000.00 |
120,000,000.00 |
|
|
|
|
|
Capital Paid |
120,000,000.00 |
120,000,000.00 |
|
Statutory Reserve |
5,000,000.00 |
- |
|
Retained Earning-
Unappropriated |
69,130,430.92 |
97,688,866.22 |
|
Total Shareholders' Equity |
194,130,430.92 |
217,688,866.22 |
|
Total Liabilities & Shareholders' Equity |
719,572,370.07 |
832,981,042.75 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales Income |
1,353,000,375.87 |
1,515,599,418.37 |
|
Gain on Exchange
Rate |
9,134,985.17 |
57,008,498.49 |
|
Other Income |
42,650,369.17 |
48,423,638.98 |
|
Total Sales |
1,404,785,730.21 |
1,621,031,555.84 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,301,039,876.44 |
1,383,370,440.57 |
|
Selling Expenses |
44,873,064.69 |
45,715,941.16 |
|
Administrative Expenses |
65,900,224.26 |
71,032,331.34 |
|
Total Expenses |
1,411,813,165.39 |
1,500,118,713.07 |
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
[7,027,435.18] |
120,912,842.77 |
|
Financial Cost |
[8,438,887.57] |
[13,428,134.28] |
|
Profit / [Loss] before Income
Tax |
[15,466,322.75] |
107,484,708.49 |
|
Income Tax |
3,907,887.45 |
1,024,612.68 |
|
|
|
|
|
Net Profit / [Loss] |
[11,558,435.30] |
108,509,321.17 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.76 |
0.84 |
|
QUICK RATIO |
TIMES |
0.29 |
0.33 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.64 |
4.34 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.88 |
1.82 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
63.65 |
64.51 |
|
INVENTORY TURNOVER |
TIMES |
5.73 |
5.66 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
7.57 |
10.21 |
|
RECEIVABLES TURNOVER |
TIMES |
48.21 |
35.77 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
10.64 |
5.30 |
|
CASH CONVERSION CYCLE |
DAYS |
60.59 |
69.41 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
96.16 |
91.28 |
|
SELLING & ADMINISTRATION |
% |
8.19 |
7.70 |
|
INTEREST |
% |
0.62 |
0.89 |
|
GROSS PROFIT MARGIN |
% |
7.67 |
15.68 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(0.52) |
7.98 |
|
NET PROFIT MARGIN |
% |
(0.85) |
7.16 |
|
RETURN ON EQUITY |
% |
(5.95) |
49.85 |
|
RETURN ON ASSET |
% |
(1.61) |
13.03 |
|
EARNING PER SHARE |
BAHT |
(96.32) |
904.24 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.73 |
0.74 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.71 |
2.83 |
|
TIME INTEREST EARNED |
TIMES |
(0.83) |
9.00 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(10.73) |
|
|
OPERATING PROFIT |
% |
(105.81) |
|
|
NET PROFIT |
% |
(110.65) |
|
|
FIXED ASSETS |
% |
(16.44) |
|
|
TOTAL ASSETS |
% |
(13.61) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
7.67 |
Impressive |
Industrial
Average |
7.10 |
|
Net Profit Margin |
(0.85) |
Deteriorated |
Industrial
Average |
2.81 |
|
Return on Assets |
(1.61) |
Deteriorated |
Industrial
Average |
9.20 |
|
Return on Equity |
(5.95) |
Deteriorated |
Industrial
Average |
(1.78) |
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 7.67%. When compared with the industry
average, the ratio of the company was higher,
this 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 -0.85%.
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 -1.61%.
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 -5.95%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
0.76 |
Risky |
Industrial
Average |
13.76 |
|
Quick Ratio |
0.29 |
|
|
|
|
Cash Conversion Cycle |
60.59 |
|
|
|
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 0.76 times in 2010, decrease from 0.84 times, then the company may not be
efficiently using its current assets. 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 0.29 times in 2010,
decrease from 0.33 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 61 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.73 |
Acceptable |
Industrial
Average |
0.71 |
|
Debt to Equity Ratio |
2.71 |
Impressive |
Industrial
Average |
8.47 |
|
Times Interest Earned |
(0.83) |
Risky |
Industrial
Average |
6,353.48 |
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 -0.84 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.73 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 |
4.64 |
Deteriorated |
Industrial
Average |
12.64 |
|
Total Assets Turnover |
1.88 |
Satisfactory |
Industrial
Average |
2.09 |
|
Inventory Conversion Period |
63.65 |
|
|
|
|
Inventory Turnover |
5.73 |
Acceptable |
Industrial
Average |
10.98 |
|
Receivables Conversion Period |
7.57 |
|
|
|
|
Receivables Turnover |
48.21 |
Impressive |
Industrial
Average |
20.06 |
|
Payables Conversion Period |
10.64 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.10 |
|
UK Pound |
1 |
Rs.74.64 |
|
Euro |
1 |
Rs.64.42 |
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.