MIRA
INFORM REPORT
|
Report Date : |
14.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
UNITED FLOUR
MILL PUBLIC COMPANY
LIMITED |
|
|
|
|
Registered Office : |
9th
Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
31.03.1961 |
|
|
|
|
Com. Reg. No.: |
0107537001935 |
|
|
|
|
Legal Form : |
Public
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and Distributor of Flour Products |
|
|
|
|
No. of Employees : |
300 |
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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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
FLOUR MILL PUBLIC
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 9th FLOOR,
UFM BUILDING, 177
RAJAWONGSE ROAD,
CHAKKRAWAD, SAMPHANTAWONG, BANGKOK
10100
TELEPHONE : [66] 2226-0680,
2226-6120-9
FAX :
[66] 2224-5670
E-MAIL
ADDRESS : salesinfo@ufmfc.com
united_flour_mill@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1961
REGISTRATION
NO. : 0107537001935 [Former
: 0105504000440]
CAPITAL REGISTERED : BHT.
1,200,000,000
CAPITAL PAID-UP : BHT. 400,000,000
SHAREHOLDER’S PROPORTION : THAI :
99.98%
FOREIGN :
0.02%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. SATHIEN ARCHAVANIYUTH, THAI
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
NO.
OF STAFF : 300
LINES
OF BUSINESS : FLOUR
PRODUCTS
MANUFACTURER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was originally
established on March
31, 1961 as
a private limited
company under the registered
name “United Flour
Mill Company Limited”,
by Thai groups, with the
business objective to
manufacture and distribute various
kinds of flour
products. In 1978, it
was listed on
the Stock Exchange
of Thailand [SET]. Later,
its status was converted
to a public limited company, namely
UNITED FLOUR MILL
PUBLIC COMPANY LIMITED on
June 1, 1994.
The
subject achieved ISO 9001: 2008 and
Hazard Analysis Critical Control
Point (HACCP) by SGS Yarsley.
On
December 1, 2010,
the subject delisted
its name from
the Stock Exchange of
Thailand. It currently
employs approximate 300
staff.
The
subject’s registered address
is 9th Flr., UFM
Building, 177 Rajawongse
Rd., Chakkrawad, Samphantawong, Bangkok 10100,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sathien Archavaniyuth |
: Chairman |
Thai |
74 |
|
Mr. Pracha Raksincharoensak |
|
Thai |
63 |
|
Ms. Suwich Suwarujiporn |
|
Thai |
69 |
|
Ms. Phanit Ngamkerkchote |
|
Thai |
64 |
|
Mr. Jira Sirisamphan |
|
Thai |
56 |
|
Mr. Charn Theparaksanakorn |
|
Thai |
77 |
|
Mr. Banharn Banthukul |
|
Thai |
84 |
|
Mr. Kajornwuth Namsirikul |
|
Thai |
49 |
|
Mr. Sawangtham Laohathai |
|
Thai |
39 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Sathien Archavaniyuth is
the President and
Chief Executive Officer.
He is Thai
nationality with the
age of 74
years old.
Ms. Phanit Ngamkerkchote is
the Factory Manager.
She is Thai
nationality with the
age of 64
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing and distributing
various kinds of flour
products as follows:
Product Brand
- Wheat
Flour
-
Purpose flour “KITE”
-
Bread flour “WHITE SWAN”
-
Special flour “RED LOTUS”,
“UFM 555”
-
Cake flour “ROYAL
FAN”
-
Pies & pastries flour “PI”
2. Premix
Flour
- Crispy
flour “UFM”
- Butter
cake mix flour “UFM”, “TIPPY”
- Cookie
mix flour “UFM”,
“TIPPY”
- Pan
cake mix flour “UFM”, “TIPPY”
- Tempura
flour “UFM”
- Patongo
mix flour “TIPPY”
- Salapao
mix flour “TIPPY”
- Puifai
mix flour “TIPPY”
- Waffle
mix flour “UFM”
PURCHASE
60%
of raw materials,
wheat and chemical
are purchased from
local suppliers, the
remaining 40% is
imported from U.S.A.,
India, Vietnam, Republic
of China, and
Australia.
SALES
100% of the
products is sold
locally to traders
and manufacturers.
MAJOR CUSTOMERS
UFM Food Center
Co., Ltd.
United Flour Trading
Co., Ltd.
MC Foods Co.,
Ltd.
Thai President Food
Co., Ltd.
Wan Thai Industry
Co., Ltd.
President Denis Food
Co., Ltd.
Siam UFK Co.,
Ltd.
United Kyoei Foods
Co., Ltd.
Thai Preserved Food
Factory Co., Ltd.
SUBSIDIARY AND
AFFILIATED COMPANIES
United Food Center
Co., Ltd.
Business Type :
Researcher and developing
of flours to
consumer products.
United Flour Trading
Co., Ltd.
Business Type :
Distributor of wheat
flour
MC Foods Co.,
Ltd.
Business Type :
Distributor of wheat
flour
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 on negotiated
terms.
BANKING
Bangkok
Bank Public Co.,
Ltd.
The
Siam Commercial Bank
Public Co., Ltd.
EMPLOYMENT
The
subject employs approximately
300 staff.
LOCATION DETAILS
The
premise is owned
for administrative office at
the heading address.
Premise is located
in commercial/residential area.
Factory
and warehouse are
located at 51
Moo 1, Poochaosamingprai Rd.,
T. Bangyapraek, A.
Phrapradaeng, Samutprakarn 10130.
Tel.: [66] 2394-0331, Fax. :
[66] 2394-5979.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
10,000,000.
COMMENT
United Flour Mill Public Company Limited engages
in the manufacture and distribute of wheat flour and wheat bran in
Thailand. It offers various kinds
of flour for bakeries,
cake, pies and pastries. It
is the first Thai
flour manufacture which received ISO 9001, as well as the leading
in manufacture bakery
flour in Thailand.
The
company’s affiliate, UFM Food Center Company Limited, is UFM group of companies, a special business
unit established for researching and developing further application of wheat
flour into consumer products. This has
resulted to a continuing
develop of flours to serve
growing demand of
food industry in
the country.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10,000,000
divided into 10,000
shares of Bht.
1,000 each with
fully paid.
The
capital was increased
later as follows:
Bht. 20,000,000
on December
1, 1961
Bht. 25,000,000
on September
9, 1965
Bht. 400,000,000
on April
10, 1978
The
latest registered capital was
increased to Bht. 1,200,000,000 divided
into 120,000,000 shares of
Bht. 10 each.
MAIN
SHAREHOLDERS : [as
of March 30,
2011] at Bht.
400 million of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
MC Bakery Co.,
Ltd. Nationality: Thai Address : 180-184
Rajawongse Rd., Chakkrawad,
Samphantawong, Bangkok |
14,502,238 |
36.26 |
|
Metro Co., Ltd. Nationality: Thai Address : 180-184
Rajawongse Rd., Chakkrawad,
Samphantawong, Bangkok |
9,959,830 |
24.90 |
|
UMC International Corporation Ltd. Nationality: Thai Address : 180-184
Rajawongse Rd., Chakkrawad,
Samphantawong, Bangkok |
9,000,000 |
22.50 |
|
Metro Value Creation
Co., Ltd. Nationality: Thai Address : 180-184
Rajawongse Rd., Chakkrawad,
Samphantawong, Bangkok |
4,000,000 |
10.00 |
|
Metro Foss Co.,
Ltd. Nationality: Thai Address : 180-184
Rajawongse Rd., Chakkrawad,
Samphantawong, Bangkok |
1,600,967 |
4.00 |
|
Others |
936,965 |
2.34 |
Total Shareholders : 181
Share Structure [as
at March 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
176 |
39,991,599 |
99.98 |
|
Foreign |
5 |
8,401 |
0.02 |
|
Total |
181 |
40,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Apichart Sayasit No.
4229
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in Hand
& at Bank |
425,965,575 |
301,828,260 |
|
Short-term Investment |
115,886,913 |
418,017,213 |
|
Trade Accounts Receivable - Related
Company |
662,380,259 |
567,165,710 |
|
- Other
Company |
12,354,244 |
33,730,499 |
|
Inventories |
950,155,311 |
664,019,841 |
|
Prepayment for Raw
Material |
41,335,002 |
2,777,399 |
|
Other Receivable -
Related Company |
4,418,345 |
4,529,803 |
|
Other Current Assets
|
5,521,971 |
4,845,492 |
|
|
|
|
|
Total Current Assets
|
2,218,017,620 |
1,996,914,217 |
|
Investment in Share
Capital of Other
Company available
for Sale -
Fair Value |
64,599,577 |
55,167,910 |
|
Investment in Share
Capital of Related Company |
18,560,600 |
20,810,900 |
|
Fixed Deposit under
Restriction |
37,320,700 |
36,105,100 |
|
Fixed Assets |
1,590,137,416 |
1,410,655,184 |
|
Other Assets |
3,420,298 |
8,721,222 |
|
Total Assets |
3,932,056,211 |
3,528,374,533 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable - Related
Company |
2,838,917 |
3,212,797 |
|
- Other
Company |
55,939,412 |
53,831,418 |
|
Other Payable -
Related Company |
8,868,562 |
11,559,672 |
|
Accrued Income Tax |
105,677,406 |
68,904,995 |
|
Other Current Liabilities - Accrued
Employees’ Expenses |
21,380,345 |
21,314,587 |
|
- Accrued
Value Added Tax |
15,716,442 |
17,567,443 |
|
- Others |
21,555,874 |
17,879,274 |
|
|
|
|
|
Total Current Liabilities |
231,976,958 |
194,270,186 |
|
Estimated Liabilities from
Debt Guarantee Burden of
Related Company |
950,400,000 |
1,000,400,000 |
|
Total Liabilities |
1,182,376,958 |
1,194,670,186 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10
par value Authorized &
issued share capital
120,000,000 shares |
1,200,000,000 |
1,200,000,000 |
|
|
|
|
|
Capital Paid |
400,000,000 |
400,000,000 |
|
Change in Value
of Investment in
Securities Available for
Sale |
58,726,570 |
49,294,903 |
|
Surplus on Land
Appraisal |
995,848,189 |
995,848,189 |
|
Retained Earning Appropriated for Statutory Reserve |
120,000,000 |
120,000,000 |
|
Unappropriated |
1,175,104,494 |
768,561,255 |
|
Total Shareholders' Equity |
2,749,679,253 |
2,333,704,347 |
|
Total Liabilities & Shareholders' Equity |
3,932,056,211 |
3,528,374,533 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales |
3,401,165,770 |
3,379,062,723 |
|
Rental Income |
31,729,387 |
32,161,645 |
|
Interest Income |
5,493,866 |
8,145,460 |
|
Gain from Debt
Restructuring |
- |
612,496,223 |
|
Gain from Disposal
of Investment |
17,362,238 |
- |
|
Dividend Income |
5,741,625 |
5,684,521 |
|
Other Income |
14,269,920 |
17,283,162 |
|
Total Revenues |
3,475,762,806 |
4,054,833,734 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,782,331,261 |
2,920,432,335 |
|
Selling Expenses |
17,315,878 |
16,045,767 |
|
Administrative Expenses |
69,261,082 |
59,853,001 |
|
Executives’ Remuneration Expenses |
30,746,004 |
31,145,706 |
|
Provision for Loss
from Diminution of
Land |
- |
1,326,000 |
|
Estimated Liabilities from Debt
Guarantee Burden of
Related Company |
- |
50,000,000 |
|
Total Expenses |
2,899,654,225 |
3,078,802,809 |
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
576,108,581 |
976,030,925 |
|
Financial Cost |
[189,237] |
[907,328] |
|
Income Tax |
[169,376,105] |
[102,310,593] |
|
|
|
|
|
Net Profit / [Loss] |
406,543,239 |
872,813,004 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
9.56 |
10.28 |
|
QUICK RATIO |
TIMES |
5.24 |
6.80 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.16 |
2.42 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.87 |
0.97 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
124.65 |
82.99 |
|
INVENTORY TURNOVER |
TIMES |
2.93 |
4.40 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
1.31 |
3.61 |
|
RECEIVABLES TURNOVER |
TIMES |
277.87 |
101.13 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
7.34 |
6.73 |
|
CASH CONVERSION CYCLE |
DAYS |
118.62 |
79.87 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
81.05 |
85.61 |
|
SELLING & ADMINISTRATION |
% |
2.52 |
2.22 |
|
INTEREST |
% |
0.01 |
0.03 |
|
GROSS PROFIT MARGIN |
% |
20.20 |
33.25 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
16.78 |
28.61 |
|
NET PROFIT MARGIN |
% |
11.84 |
25.59 |
|
RETURN ON EQUITY |
% |
14.79 |
37.40 |
|
RETURN ON ASSET |
% |
10.34 |
24.74 |
|
EARNING PER SHARE |
BAHT |
10.16 |
21.82 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.30 |
0.34 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.43 |
0.51 |
|
TIME INTEREST EARNED |
TIMES |
3,044.38 |
1,075.72 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
0.64 |
|
|
OPERATING PROFIT |
% |
(40.97) |
|
|
NET PROFIT |
% |
(53.42) |
|
|
FIXED ASSETS |
% |
12.72 |
|
|
TOTAL ASSETS |
% |
11.44 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
20.20 |
Impressive |
Industrial
Average |
12.77 |
|
Net Profit Margin |
11.84 |
Impressive |
Industrial
Average |
3.69 |
|
Return on Assets |
10.34 |
Impressive |
Industrial
Average |
4.35 |
|
Return on Equity |
14.79 |
Impressive |
Industrial
Average |
8.37 |
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 20.2%. 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
11.84%, 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
10.34%, 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 14.79%, 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 Downtrend
LIQUIDITY RATIO
|
Current Ratio |
9.56 |
Impressive |
Industrial
Average |
1.89 |
|
Quick Ratio |
5.24 |
|
|
|
|
Cash Conversion Cycle |
118.62 |
|
|
|
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 9.56 times in 2010, decreased from 10.28 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 5.24 times in 2010,
decreased from 6.8 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 119 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.30 |
Impressive |
Industrial
Average |
0.44 |
|
Debt to Equity Ratio |
0.43 |
Impressive |
Industrial
Average |
0.83 |
|
Times Interest Earned |
3,044.38 |
Impressive |
Industrial
Average |
5.15 |
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 3044.38 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 0.3 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 Downtrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.16 |
Satisfactory |
Industrial
Average |
2.60 |
|
Total Assets Turnover |
0.87 |
Acceptable |
Industrial
Average |
1.18 |
|
Inventory Conversion Period |
124.65 |
|
|
|
|
Inventory Turnover |
2.93 |
Satisfactory |
Industrial
Average |
3.60 |
|
Receivables Conversion Period |
1.31 |
|
|
|
|
Receivables Turnover |
277.87 |
Impressive |
Industrial
Average |
4.28 |
|
Payables Conversion Period |
7.34 |
|
|
|
Trend of the average
competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.42 |
|
|
1 |
Rs.81.93 |
|
Euro |
1 |
Rs.67.67 |
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.