MIRA
INFORM REPORT
|
Report Date : |
20.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
THAI BETTER FOODS CO., LTD. |
|
|
|
|
Registered Office : |
111/1 Moo 3, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
10.10.1983 |
|
|
|
|
Com. Reg. No.: |
0705526000081 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter & Distributor of Foods and Ingredient Products |
|
|
|
|
No. of Employees : |
200 |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Poor |
|
Payment Behaviour : |
-- |
|
Litigation : |
Exist |
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
THAI
BETTER FOODS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 111/1
MOO 3, KHAO-NGU-BERGPRAI ROAD,
T.
KUNGPAYOM, A. BANPONG,
RATCHABURI 70110
TELEPHONE : [66] 32
201-514-5, 32 344-570-2
FAX :
[66] 32
201-574, 32 344-574
E-MAIL
ADDRESS : marketing@thaibetterfoods.com
thaibetterfoods@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1983
REGISTRATION
NO. : 0705526000081 [Former
: ROR BOR.
48]
TAX
ID NO. : 3731000868
CAPITAL REGISTERED : BHT. 197,000,000
CAPITAL PAID-UP : BHT.
197,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
WATANA MUNGKALARUNGSI, THAI
MANAGING DIRECTOR
& FACTORY MANAGER
NO.
OF STAFF : 200
LINES
OF BUSINESS : FOODS
AND INGREDIENT PRODUCTS
MANUFACTURER,
EXPORTER & DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : -
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : -
MANAGEMENT
STANDARD : -
HISTORY
The
subject was established
on October 10,
1983 as a
private limited company
under the name
style THAI BETTER
FOODS CO., LTD., by
Thai group, Mungkalarungsi family. It
currently employs 200
staff.
The
subject was set up
from “Chunchu Banpong Rice Vermicelli Factory”,
by Mr. Praves Mungkalarungsi in
1957, located in
Banpong, Ratchaburi Province,
to produce rice
noodles and related
products.
Based from the success, Chunchu Banpong
Rice Vermicelli Factory became Thai Better Foods Co., Ltd. in
1983. The next generation, Mr. Watana
Mungkalarungsi, lead the company
into global market
and improve the
company’s competitiveness in
every aspects, one is to build-up reliable on own brand name, products
and business by implemented Quality Management
System as ISO 9001:2000, GMP
and HACCP certified by
SGS, accredited by
United Kingdom Accreditation
Service (UKAS), as well as HALAL
certified by the Islamic
Committee Office of
Thailand.
On January 19,
2011, the subject
is the Absolute
Receivership according to
the Bankruptcy Act.
1940 under the
court case no.
Lor. 231/2011. Presently on
March 28, 2011
the Central Bankrupt
Court ordered to
review on this
case.
The subject’s registered
address is 111/1 Moo 3, Khao-Ngu-Bergprai Rd., T. Kungpayom, A. Banpong,
Ratchaburi 70110, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Watana Mungkalarungsi |
|
Thai |
55 |
AUTHORIZED PERSON
The above director
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Watana Mungkalarungsi is
the Managing Director
& Factory Manager.
He is Thai
nationality with the
age of 55
years old.
Mrs. Kulchitree Mungkalarungsi is
the Deputy Managing
Director.
She is Thai
nationality.
Mrs. Pornkanok Thongprasert is
the Accounting &
Finance Manager.
She is Thai
nationality.
Ms. Monruethai Mungkalarungsi is
the Export Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
various kinds of
rice noodles and
related products, which
divided into 7
main categories as
follows:
|
1.) Noodles Products: |
Rice Noodles, Rice Vermicelli,
Vegetable Noodles, Rice Chip, |
|
2.) Flour Products: |
Rice Flour, Glutinous
Rice Flour, Tapioca
Flour, Modified Starch and
etc. |
|
3.) Rice Products: |
Jasmine Rice, White Rice, Japanese Japonica Rice, Japanese Japonica Glutinous
Rice and etc. |
|
4.) Ready-to-Cook Products: |
Stir-Fried Noodles, Jasmine
Rice, all with various
seasonings, etc. |
|
5.) Instant Products |
Instant Rice, Noodles
Instant Jasmine Rice , |
|
6.) Ready-to-Eat Products: |
Cooked Rice, Cooked Fried
Rice, Cooked Rice
Noodles, |
|
7.) Sauce and Seasoning Products: |
Pad Thai sauce,
Sweet Chili sauce, Lemongrass sauce, |
Besides trading with
the company’s own
trademarks, “STAR” and
“THAI SMILE”. The
company also manufactures
the products for
private labeling under
customer’s own brands.
PURCHASE
90%
of its raw
materials is purchased
from local suppliers,
and 10% of
the rest is
imported from Republic
of China, India
and Germany.
EXPORT
[COUNTRIES]
60%
of the products is
exported to United
Sates of America,
Canada, Japan, Korea,
Israel, Australia, Singapore,
Indonesia, Brunei, Malaysia,
India, Hong Kong and Europe.
SALES
[LOCAL]
40% of the
products is sold
locally by wholesale
to dealers all
over the country.
AFFILIATED/SUBSIDIARY COMPANY
Asian Superior Foods
Co., Ltd.
Business Type : Manufacturer of
food products [ready-to-cook and
ready-to-eat]
LITIGATION
Bankruptcy and Receivership
At the Central
Bankruptcy Court, there
is a litigation
on bankruptcy and
receivership, the court
case no. Lor. 231/2011, filed
against the Company
as the defendant
by Visudhi Panich
Co., Ltd., as the
plaintiff. On January
19, 2011, the
Court has ordered
an absolute receivership
of Thai Best
Foods Co., Ltd., the
Debtor according to
the Bankruptcy Act
1940.
Legal
Execution Department, Ministry of
Justice, Thailand
According to the notification of the
Official Receiver dated April 5, 2011,
the Central Bankruptcy Court has
ordered an absolute receivership
of Thai Better Foods Co.,
Ltd., the debtor on January 19, 2011.
Presently, the Central Bankruptcy Court has
ordered to review the
trial of Thai Better Foods Co.,
Ltd., the Debtor from March 28, 2011
onwards.
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 30-60-90
days.
Imports
are by L/C
at sight or
T/T.
Exports
are against T/T.
BANKING
Krung
Thai Bank Public Co.,
Ltd.
Siam
Commercial Bank Public
Co., Ltd.
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
200 office staff
and factory workers.
LOCATION DETAILS
The
premise is owned
for administrative office,
factory and warehouse
at the heading
address. Premise is
located in Ratchaburi province.
COMMENT
With competitive commitment and suitable business strategies, Thai
Better Foods Co., Ltd., succeeds as the leading exporter in rice vermicelli and
rice noodle products and leading developers
in other rice products. With the good taste and high technology in the
production processing, the subject’s products, rice vermicelli and noodles, are
favorite and recognized by people
around the world
from generation to
generation until now.
However, the company
has encountered severe
financial problem lately
with default payment
which caused the
company to pay
higher interest rate.
Moreover, the company’s sales
revenue has drastically
decreased which resulted
to the company’s
net loss and deficit
retained earnings for
many consecutive years.
The company’s continuity
of its operation is
depended on the future
operating performance, debt restructuring negotiation together with
financial sources to support the company’s operation.
FINANCIAL INFORMATION
The capital
was initially registered
at Bht. 6,500,000
divided into 6,500 shares
of Bht. 1,000
each.
The
capital was increased
later as the
followings:
Bht. 15,500,000
on February 26,
1988
Bht. 40,000,000
on December 29,
1995
Bht. 50,000,000
on June 29,
1998
Bht.
140,000,000 on September
3, 1992
Bht.
197,000,000 on September
13, 2005
The
latest registered capital
was increased to
Bht. 197 million, divided
into 197,000 shares
of Bht. 1,000
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Wattanawes Mungkalarungsi Nationality: Thai Address : 111/1
Moo 3, T. Kungpayom,
A. Banpong, Ratchaburi
70110 |
64,500 |
32.74 |
|
Office of Small
and Medium Enterprises
Promotion Nationality: Thai Address : G Flr., TST
Tower Bldg., 21 Vibhavadee
Rangsit Rd., Chompol,
Jatujak, Bangkok |
50,000 |
25.38 |
|
Mr. Rathee Mungkalarungsi Nationality: Thai Address : 111/1
Moo 3, T. Kungpayom,
A.
Banpong, Ratchaburi 70110 |
43,100 |
21.88 |
|
Mr. Watanakul Mungkalarungsi Nationality: Thai Address :
111/1 Moo 3, T.
Kungpayom, A.
Banpong, Ratchaburi 70110 |
14,700 |
7.46 |
|
Mr. Watana Mungkalarungsi Nationality: Thai Address : 1/5
Moo 4, Sang-xuto Rd.,
T. Pakraed,
A. Banpong, Ratchaburi
|
14,700 |
7.46 |
|
Mr. Nantawat Mungkalarungsi Nationality: Thai Address : 599
Ladprao Rd., Ladyao,
Jatujak,
Bangkok 10900 |
4,000 |
2.03 |
|
Mrs. Kulchitree Mungkalarungsi Nationality: Thai Address : 119
Moo 3, T. Kungpayom,
A. Banpong,
Ratchaburi 70110 |
4,000 |
2.03 |
|
Mr. Praves Mungkalarungsi Nationality: Thai Address : 111/1
Moo 3, T. Kungpayom,
A.
Banpong, Ratchaburi 70110 |
2,000 |
1.02 |
Total Shareholders : 8
Share Structure [as
at April 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
8 |
197,000 |
100% |
|
Foreign |
- |
- |
- |
|
Total |
8 |
197,000 |
100% |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Pongsathorn Seesura No.
7370
Note:
The financial statement
for 2011 was
not submitted to
the Commercial Registration
Department during investigation.
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2010
& 2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in hand
& at Bank
|
914,748.18 |
748,955.99 |
|
Trade Accounts & Notes
Receivable |
5,025,559.77 |
6,509,225.84 |
|
Reserve for Machinery Construction |
27,420,000.00 |
39,000,000.00 |
|
Loan to Person or Related Company |
- |
9,590,000.00 |
|
Inventories |
34,803,596.30 |
19,485,810.50 |
|
Other Current Assets
|
1,570,802.43 |
1,865,135.84 |
|
|
|
|
|
Total Current Assets
|
69,734,706.68 |
77,199,128.17 |
|
Fixed Assets |
423,245,331.00 |
457,718,857.19 |
|
Total Assets |
492,980,037.68 |
534,917,985.36 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft &
Short-term Loans |
369,032,341.67 |
365,106,260.76 |
|
Trade Accounts & Notes
Payable |
75,738,659.91 |
71,459,586.01 |
|
Loan from Other Person |
35,472,682.27 |
29,680,311.00 |
|
Current Portion of Financial Lease Contract Payable |
4,149,901.62 |
4,149,901.62 |
|
Other Current Liabilities |
238,077,330.96 |
187,646,743.20 |
|
|
|
|
|
Total Current Liabilities |
722,470,916.43 |
658,042,802.59 |
|
|
|
|
|
Financial Lease Contract Payable, Net of Current Portion |
77,044,238.43 |
81,478,688.43 |
|
Total Liabilities |
799,515,154.86 |
739,521,491.02 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 197,000 shares |
197,000,000.00 |
197,000,000.00 |
|
|
|
|
|
Capital Paid |
197,000,000.00 |
197,000,000.00 |
|
Retained Earning -
Unappropriated |
[503,535,117.18] |
[401,603,505.66] |
|
Total Shareholders' Equity |
[306,535,117.18] |
[204,603,505.66] |
|
Total Liabilities & Shareholders' Equity |
492,980,037.68 |
534,917,985.36 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales |
83,329,339.84 |
159,864,347.84 |
|
Other Income |
492,484.20 |
820,023.30 |
|
Total Revenues |
83,821,824.04 |
160,684,371.14 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
81,246,760.31 |
156,173,516.99 |
|
Selling Expenses |
4,049,105.25 |
5,440,863.71 |
|
Administrative Expenses |
43,654,675.60 |
42,202,190.57 |
|
Other Expenses |
1,251,839.17 |
3,387,106.25 |
|
Total Expenses |
130,202,380.33 |
207,203,677.52 |
|
|
|
|
|
Profit / [Loss] from Financial Costs |
[46,380,556.29] |
[46,519,306.38] |
|
Financial Costs |
[55,551,055.23] |
[53,551,963.22] |
|
Net Profit / [Loss] |
[101,931,611.52] |
[100,071,269.60] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.10 |
0.12 |
|
QUICK RATIO |
TIMES |
0.05 |
0.08 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.20 |
0.35 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.17 |
0.30 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
156.35 |
45.54 |
|
INVENTORY TURNOVER |
TIMES |
2.33 |
8.01 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
22.01 |
14.86 |
|
RECEIVABLES TURNOVER |
TIMES |
16.58 |
24.56 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
340.25 |
167.01 |
|
CASH CONVERSION CYCLE |
DAYS |
(161.89) |
(106.61) |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
97.50 |
97.69 |
|
SELLING & ADMINISTRATION |
% |
57.25 |
29.80 |
|
INTEREST |
% |
66.66 |
33.50 |
|
GROSS PROFIT MARGIN |
% |
3.09 |
2.82 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(55.66) |
(29.10) |
|
NET PROFIT MARGIN |
% |
(122.32) |
(62.60) |
|
RETURN ON EQUITY |
% |
- |
- |
|
RETURN ON ASSET |
% |
(20.68) |
(18.71) |
|
EARNING PER SHARE |
BAHT |
(517.42) |
(507.98) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
1.62 |
1.38 |
|
DEBT TO EQUITY RATIO |
TIMES |
(2.61) |
(3.61) |
|
TIME INTEREST EARNED |
TIMES |
(0.83) |
(0.87) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(47.87) |
|
|
OPERATING PROFIT |
% |
(0.30) |
|
|
NET PROFIT |
% |
(1.86) |
|
|
FIXED ASSETS |
% |
(7.53) |
|
|
TOTAL ASSETS |
% |
(7.84) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.09 |
Deteriorated |
Industrial
Average |
20.94 |
|
Net Profit Margin |
(122.32) |
Deteriorated |
Industrial
Average |
0.56 |
|
Return on Assets |
(20.68) |
Deteriorated |
Industrial
Average |
0.62 |
|
Return on Equity |
- |
|
Industrial
Average |
2.15 |
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 3.09%. 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 -122.32%.
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 -20.68%.
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 |
0.10 |
Risky |
Industrial
Average |
1.25 |
|
Quick Ratio |
0.05 |
|
|
|
|
Cash Conversion Cycle |
(161.89) |
|
|
|
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 0.1 times in 2010, decrease from 0.12 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 0.05 times in 2010,
decrease from 0.08 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 -162 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
1.62 |
Risky |
Industrial
Average |
0.48 |
|
Debt to Equity Ratio |
(2.61) |
Risky |
Industrial
Average |
1.16 |
|
Times Interest Earned |
(0.83) |
Risky |
Industrial
Average |
0.63 |
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 1.62
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 Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
0.20 |
Deteriorated |
Industrial
Average |
1.48 |
|
Total Assets Turnover |
0.17 |
Deteriorated |
Industrial
Average |
1.10 |
|
Inventory Conversion Period |
156.35 |
|
|
|
|
Inventory Turnover |
2.33 |
Acceptable |
Industrial
Average |
4.59 |
|
Receivables Conversion Period |
22.01 |
|
|
|
|
Receivables Turnover |
16.58 |
Impressive |
Industrial
Average |
3.85 |
|
Payables Conversion Period |
340.25 |
|
|
|
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.01 |
|
|
1 |
Rs.87.85 |
|
Euro |
1 |
Rs.70.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.