x

MIRA INFORM REPORT

Report Date :

16.02.2012

IDENTIFICATION DETAILS

Name :	KRAFT FOODS [THAILAND] LIMITED
Registered Office :	116 Moo 10, Nampong-Kranuan Road, Nampong, Khon Kaen 40140
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	13.05.1989
Com. Reg. No.:	0105532108799
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Importer and Distributor of Foods and Beverage Products
No. of Employees :	400

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 :	Good
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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

KRAFT FOODS [THAILAND] LIMITED

SUMMARY

BUSINESS ADDRESS : 116 MOO 10, NAMPONG-KRANUAN ROAD,

NAMPONG, KHON KAEN 40140, THAILAND

TELEPHONE : [66] 43 209-100

FAX : [66] 43 209-101

E-MAIL ADDRESS : sdeelua@kraftfoods.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1989

REGISTRATION NO. : 0105532108799 [Former : 10877/2532]

CAPITAL REGISTERED : BHT. 150,000,000

CAPITAL PAID-UP : BHT. 150,000,000

SHAREHOLDER’S PROPORTION : AMERICAN : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. SUPOJ BOONYAVANICH, THAI

EXECUTIVE DIRECTOR

NO. OF STAFF : 400

LINES OF BUSINESS : FOODS AND BEVERAGE PRODUCTS

MANUFACTURER, IMPORTER 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 established on May 13, 1989 as a private limited company under the originally registered name “Kraft General Foods [Thailand] Limited” by American group, with the business objective to import and distribute foods and beverage products to domestic market. On March 10, 1993, subject’s name was changed to KRAFT FOODS [THAILAND] LIMITED.

In 2000, subject expanded its products line to manufacture beverage products for domestic market. It currently employs approximate 400 staff.

Subject is a wholly owned subsidiary of Kraft Foods International Inc., U.S.A.

The subject’s registered address was initially located at 152 Chartered Square Building, North Sathorn Rd., Silom, Bangrak, Bangkok 10500.

On July 1, 2008, the subject’s registered address was relocated to 116 Moo 10, Nampong-Kranuan Rd., Nampong, Khon Kaen 40140, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name		Nationality	Age
Mr. Supoj Boonyavanich	[-]	Thai	65
Mr. Theparith Wanthanapisit	[x]	Thai	38
Mr. Jacinto Hernandez Maraman	[+]	Filipino	40
Mr. Sonthaya Deelua	[+]	Thai	42

AUTHORIZED PERSON

The above director [x] can jointly sign with one of the directors [+] or only the director [-] can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Supoj Boonyavanich is the Executive Director.

He is Thai nationality with the age of 65 years old.

Mr. Theparith Wanthanapisit is the General Manager and Factory Manager.

He is Thai nationality with the age of 38 years old.

Mr. Somkiat Khoncharn is the Operation Manager.

He is Thai nationality with the age of 52 years old.

Mr. Somkiat Mahakittiyathorn is the Account Manager.

He is Thai nationality.

Mr. Sonthaya Deelua is the Human Resources Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing, importing and distributing wide range of foods and beverage products as the followings:

· Manufacturing and distributing of powder beverage products, under its license name “TANG”, with the production approximately 50,000 tons per annum.

· Importing and distributing of general foods and snacks as the followings:

- “TANG” Refreshment beverage products

- “SUGUS” Confectionery

- “RITZ”, “TRAKINAS”, “KRAKER”, “MILKA”, “HONY”, “AVENY BRAN”,

“CALLARD & BOWSER”, “SMITH KENDON”, “COTEDOR” and “OREO”

Biscuits

- “TOBLERONE” & “CADBURY” Chocolate

- “KRAFT” Peanut butter

- “PHILADELPHIA” Cream cheese

- “KOOL-AID” Powdered beverage

- “CHIPS AHOY” Cookies.

PURCHASE

Most of raw materials for production are purchased from local suppliers.

IMPORT

Finished products and some of raw materials are imported from U.S.A., Australia, Germany, Switzerland, Singapore, United Kingdom, Malaysia and Hong Kong.

MAJOR SUPPLIERS

Kraft Foods International Inc. : U.S.A. [30-40%]

Kraft Foods Limited : Australia [10-20%]

Kraft Foods Asia Pacific Services Pte. Ltd. : Singapore [10-20%]

SALES

100% of the products is sold locally to wholesalers and supermarkets.

MAJOR CUSTOMER

Diethelm & Co, Ltd.

PARENT COMPANY

Kraft Foods International Inc. : U.S.A.

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 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.

BANKING

Bangkok Bank Public Co., Ltd.

[Head Office : 333 Silom Rd., Silom, Bangrak, Bangkok]

Kasikornbank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 400 staff.

LOCATION DETAILS

The premise is owned for administrative office, factory and warehouse at the heading address. Premise is located in provincial.

REMARK

MAXIMUM CREDIT SHOULD BE GRANTED AT EUR 5,000,000.

COMMENT

The subject has potential in the industry as demand from domestic consumption remains strong. The subject produces the variety foods and beverage products from high grade raw materials. Many products are well known among domestic consumers.

The subject is the leading food and beverage manufacturing with the reputation of Kraft Food Products in domestic markets for decades.

Subject still maintains solid business.

FINANCIAL INFORMATION

The capital was registered at Bht. 100,000 divided into 1,000 shares of Bht. 100 each.

The capital was increased later as following:

Bht. 15,420,000 on August 1, 1994

Bht. 50,000,000 on March 10, 2000

Bht. 132,000,000 on November 25, 2003

Bht. 150,000,000 on April 20, 2005

The latest registered capital was increased to Bht. 150,000,000 divided into 1,500,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at June 29, 2011]

NAME	HOLDING	%
Kraft Foods International Inc. Nationality: American Address : 800 Avenue, Re Bruce, New York, U.S.A.	1,499,994	100.00
Mr. Supoj Boonyavanich Nationality: Thai Address : 161/15 Petchkasem Rd., Pakklong, Pasicharoen, Bangkok	1	-
Mr. Pichet Pongmukda Nationality: Thai Address : 141 Mangkorn Rd., Pomprab, Bangkok	1	-
Mr. Praphan Luenglertvorakul Nationality: Thai Address : 39/1 Rama 4 Rd., Thungmahamek, Yannawa, Bangkok	1	-
Mrs. Siriwan Joongsiriwat Nationality: Thai Address : 378/1 Mahachai Rd., Samranraj, Phranakorn, Bangkok	1	-
Mr. Vitoon Simma Nationality: Thai Address : 18/118 Arj-narong Rd., Klongtoey, Bangkok	1	-
Ms. Rungthip Sathiraparp-ayuth Nationality: Thai Address : 113/11 Nares Rd., Siphya, Bangrak, Bangkok	1	-

Total Shareholders : 7

Share Structure [as at June 29, 2011]

Nationality	Shareholders	No. of Share	% Shares
Foreign - American	1	1,499,994	100.00%
Thai	6	6	-
Total	7	1,500,000	100.00%

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Anuthai Phumsurakul No. 3873

Note:

The subject has not yet submitted its 2011 financial statement to Commercial Registration Department during current investigation.

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2010 & 2009 were:

ASSETS

Current Assets	2010	2009
Cash and Cash Equivalent	44,933,552	326,306,383
Trade Accounts Receivable - Related Company	331,475,196	214,851,599
Related Company Receivable	26,192,981	12,776,302
Short-term Loan to Related Company	200,000,000	-
Inventories	255,096,320	166,168,482
Deferred Value Added Tax	102,926,727	63,373,943
Other Current Assets	61,798,699	24,543,784
Total Current Assets	1,022,423,475	808,020,493
Fixed Assets	371,109,033	277,863,458
Intangible Assets	769,121	182,428
Other Assets	3,231,124	2,684,125
Total Assets	1,397,532,753	1,088,750,504

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Trade Accounts Payable
- Related company	10,975,356	13,167,336
- Other company	250,067,363	220,749,511
Related Company Payable	11,186,414	-
Other Payable	47,284,922	18,324,137
Accrued Expenses	19,702,873	7,509,804
Accrued Income Tax	13,493,272	23,370,767
Other Current Liabilities	455,462	284,452
Total Current Liabilities	353,165,662	283,406,007
Total Liabilities	353,165,662	283,406,007
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 1,500,000 shares	150,000,000	150,000,000
Capital Paid	150,000,000	150,000,000
Statutory Reserve	1,542,000	1,542,000
Retained Earning - Unappropriated	892,825,091	653,802,497
Total Shareholders' Equity	1,044,367,091	805,344,497
Total Liabilities & Shareholders' Equity	1,397,532,753	1,088,750,504

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales & Services	2,981,898,117	2,202,541,776
Other Income	3,338,821	1,904,542
Total Revenues	2,985,236,938	2,204,446,318
Expenses
Cost of Goods Sold & Services	2,614,125,333	2,019,880,640
Administrative Expenses	95,230,824	100,771,487
Other Expenses	23,881,246	24,441,636
Total Expenses	2,733,237,403	2,145,093,763
Profit/[Loss] before Financial Cost & Income Tax	251,999,535	59,352,555
Financial Cost - Gain from Forward Contract of Sugar	5,496,124	78,188,439
Profit before Income Tax	257,495,659	137,540,994
Income Tax	[18,473,065]	[26,243,351]
Net Profit / [Loss]	239,022,594	111,297,643

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.90	2.85
QUICK RATIO	TIMES	1.71	1.95
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	8.04	7.93
TOTAL ASSETS TURNOVER	TIMES	2.13	2.02
INVENTORY CONVERSION PERIOD	DAYS	35.62	30.03
INVENTORY TURNOVER	TIMES	10.25	12.16
RECEIVABLES CONVERSION PERIOD	DAYS	-	-
RECEIVABLES TURNOVER	TIMES	-	-
PAYABLES CONVERSION PERIOD	DAYS	34.92	39.89
CASH CONVERSION CYCLE	DAYS	0.70	(9.86)
PROFITABILITY RATIO
COST OF GOODS SOLD	%	87.67	91.71
SELLING & ADMINISTRATION	%	3.19	4.58
INTEREST	%	0.18	3.55
GROSS PROFIT MARGIN	%	12.45	8.38
NET PROFIT MARGIN BEFORE EX. ITEM	%	8.45	2.69
NET PROFIT MARGIN	%	8.02	5.05
RETURN ON EQUITY	%	22.89	13.82
RETURN ON ASSET	%	17.10	10.22
EARNING PER SHARE	BAHT	159.35	74.20
LEVERAGE RATIO
DEBT RATIO	TIMES	0.25	0.26
DEBT TO EQUITY RATIO	TIMES	0.34	0.35
TIME INTEREST EARNED	TIMES	45.85	0.76
ANNUAL GROWTH
SALES GROWTH	%	35.38
OPERATING PROFIT	%	324.58
NET PROFIT	%	114.76
FIXED ASSETS	%	33.56
TOTAL ASSETS	%	28.36

PROFITABILITY RATIO

Gross Profit Margin	12.45	Acceptable	Industrial Average	22.49
Net Profit Margin	8.02	Impressive	Industrial Average	(31.29)
Return on Assets	17.10	Impressive	Industrial Average	(3.70)
Return on Equity	22.89	Impressive	Industrial Average	2.99

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 12.45%. 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. Net Profit Margin ratio is 8.02%, 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 17.1%, 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 22.89%, 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	2.90	Deteriorated	Industrial Average	33.40
Quick Ratio	1.71
Cash Conversion Cycle	0.70

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 2.9 times in 2010, increase from 2.85 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 1.71 times in 2010, decrease from 1.95 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 1 day.

Trend of the average competitors in the same industry for last 5 years

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.25	Impressive	Industrial Average	1.26
Debt to Equity Ratio	0.34	Impressive	Industrial Average	2.25
Times Interest Earned	45.85	Deteriorated	Industrial Average	588.08

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 45.86 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 0.25 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	8.04	Deteriorated	Industrial Average	37.17
Total Assets Turnover	2.13	Impressive	Industrial Average	1.76
Inventory Conversion Period	35.62
Inventory Turnover	10.25	Acceptable	Industrial Average	20.21
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	21.63
Payables Conversion Period	34.92

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.49.29
UK Pound	1	Rs.77.45
Euro	1	Rs.64.89

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.