MIRA
INFORM REPORT
|
Report Date : |
09.10.2012 |
IDENTIFICATION DETAILS
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Name : |
KRAFT FOODS [THAILAND] LIMITED |
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Registered Office : |
116 Moo 10, Nampong-Kranuan Road, T. Nampong, A. Nampong, Khon Kaen 40140 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
13.05.1989 |
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Com. Reg. No.: |
0105532108799 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Importer and Distributor of Foods and Beverage Products |
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No. of Employees : |
400 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed
infrastructure, a free-enterprise economy, generally pro-investment policies,
and strong export industries, Thailand enjoyed solid growth from 2000 to 2007 -
averaging more than 4% per year - as it recovered from the Asian financial
crisis of 1997-98. Thai exports - mostly machinery and electronic components,
agricultural commodities, and jewelry - continue to drive the economy,
accounting for more than half of GDP. The global financial crisis of 2008-09
severely cut Thailand's exports, with most sectors experiencing double-digit
drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy
expanded 7.8%, its fastest pace since 1995, as exports rebounded from their
depressed 2009 level. Steady economic growth at just below 4% during the first
three quarters of 2011 was interrupted by historic flooding in October and
November in the industrial areas north of Bangkok, crippling the manufacturing
sector and leading to a revised growth rate of only 0.1% for the year. The
industrial sector is poised to recover from the second quarter of 2012 onward,
however, and the government anticipates the economy will probably grow between
5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.
Source
: CIA
Company name
KRAFT
FOODS [THAILAND] LIMITED
SUMMARY
BUSINESS
ADDRESS : 116
MOO 10, NAMPONG-KRANUAN ROAD,
T. NAMPONG,
A. NAMPONG,
KHON KAEN
40140, THAILAND
TELEPHONE : [66] 43
209-100, 43 209-136-7
FAX :
[66] 43
209-101
E-MAIL ADDRESS : pnanthachai@kraftasia.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0105532108799 [Former : 10877/2532]
TAX ID NO. : 3101759877
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.
THEPARITH WATTANAPISITH, THAI
GENERAL MANAGER & FACTORY MANAGER
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
FAIR 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
product 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.,
T. Nampong, A.
Nampong, Khon Kaen
40140, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Pithaya Inta-amphan |
[x] |
Thai |
36 |
|
Mr. Supoj Bunyavanich |
|
Thai |
65 |
|
Mr. Theparith Wattanapisith |
[x] |
Thai |
38 |
|
Mrs. Chailai Hongladarompa |
[x] |
Thai |
47 |
|
Mr. Yohanes Darmawan Nugraha |
[-] |
Indonesian |
34 |
|
Mr. Withayut Padmakar Art |
[-] |
Thai |
51 |
|
Mr. Krit Kroophusa |
[x] |
Thai |
36 |
AUTHORIZED PERSON
Two of the
mentioned directors [x]
can jointly sign
or 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. Theparith Wattanapisith 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. Somkid Mahakijtiyatorn is
the Account Manager.
He is Thai
nationality.
Mr. Jacinto Maranan is
the Finance 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:
- “SUGUS”,
Confectionery
- “RITZ”, “TRAKINAS”, “KRAKER”, “MILKA”, “AVENY
BRAN”, “CHIPS AHOY”
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, Philippines, Hong Kong
and Indonesia.
MAJOR SUPPLIERS
Kraft
Foods International Inc. : U.S.A.
Kraft
Foods Pty Limited : Australia
Kraft
Foods Asia Pacific
Services Pte. Ltd. : Singapore
Mondelez
International Inc. : U.S.A.
Kraft
Food Group Inc. : U.S.A.
SALES
100% of the
products is sold
locally to wholesalers
and supermarkets.
MAJOR CUSTOMER
DKSH [Thailand] 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.
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 which
are in high demand from strong consumption.
The subject is the
leading food and
beverage manufacturing with the
reputation of Kraft
Food Products in
domestic market for decades.
Strong domestic consumption
has resulted to rapid expansion.
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 21, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Kraft Foods International Inc. Nationality: American Address : 800
Westchester Avenue, Rye
Brook, New
York 10573, U.S.A. |
1,499,994 |
100.00 |
|
Mr. Supoj Bunyavanich Nationality: Thai Address : 161/15
Petchkasem Rd.,
Pakklongpasicharoen, 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 21,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
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 half-year of
2012 financial statement
was not available
during investigation.
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash
Equivalent |
232,894,436 |
44,933,552 |
|
Trade Accounts &
Other Receivable |
251,838,535 |
401,362,847 |
|
Short-term Lending to Related
Company |
- |
200,000,000 |
|
Inventories |
238,239,210 |
255,096,320 |
|
Refundable Import Tax |
16,203,904 |
15,303,775 |
|
Refundable Value Added
Tax & Other Tax |
171,643,105 |
102,926,727 |
|
Other Current Assets
|
771,980 |
2,800,254 |
|
|
|
|
|
Total Current Assets
|
911,591,170 |
1,022,423,475 |
|
Fixed Assets |
413,110,973 |
371,109,033 |
|
Intangible Assets |
382,053 |
769,121 |
|
Other Assets |
2,971,125 |
3,231,124 |
|
Total Assets |
1,328,055,321 |
1,397,532,753 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts & Other
Payable |
242,990,587 |
319,514,055 |
|
Accrued Expenses |
12,401,938 |
19,702,873 |
|
Accrued Income Tax |
1,432,894 |
13,493,272 |
|
Other Current Liabilities |
789,705 |
455,462 |
|
Total Current Liabilities |
257,615,124 |
353,165,662 |
|
Estimated Liabilities from Employee
Benefits |
3,603,318 |
- |
|
Total Liabilities |
261,218,442 |
353,165,662 |
|
|
|
|
|
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 |
915,294,879 |
892,825,091 |
|
Total Shareholders' Equity |
1,066,836,879 |
1,044,367,091 |
|
Total Liabilities & Shareholders' Equity |
1,328,055,321 |
1,397,532,753 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales & Services |
2,499,610,263 |
2,981,898,117 |
|
Other Income |
6,961,808 |
3,338,821 |
|
Total Revenues |
2,506,572,071 |
2,985,236,938 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold & Services |
2,239,817,047 |
2,614,125,333 |
|
Administrative Expenses |
125,201,429 |
95,230,824 |
|
Other Expenses |
925,368 |
23,881,246 |
|
Total Expenses |
2,365,943,844 |
2,733,237,403 |
|
|
|
|
|
Profit/[Loss] before Financial
Cost & Income Tax |
140,628,227 |
251,999,535 |
|
Financial Cost -
Gain from Forward
Contract of
Sugar |
[111,715,656] |
[5,496,124] |
|
|
|
|
|
Profit before Income Tax |
28,912,571 |
257,495,659 |
|
Income Tax |
[6,442,783] |
[18,473,065] |
|
Net Profit/[Loss] |
22,469,788 |
239,022,594 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
3.54 |
2.90 |
|
QUICK RATIO |
TIMES |
1.88 |
1.83 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.05 |
8.04 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.88 |
2.13 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
38.82 |
35.62 |
|
INVENTORY TURNOVER |
TIMES |
9.40 |
10.25 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
36.77 |
49.13 |
|
RECEIVABLES TURNOVER |
TIMES |
9.93 |
7.43 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
39.60 |
44.61 |
|
CASH CONVERSION CYCLE |
DAYS |
36.00 |
40.13 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
89.61 |
87.67 |
|
SELLING & ADMINISTRATION |
% |
5.01 |
3.19 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
10.67 |
12.45 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.63 |
8.45 |
|
NET PROFIT MARGIN |
% |
0.90 |
8.02 |
|
RETURN ON EQUITY |
% |
2.11 |
22.89 |
|
RETURN ON ASSET |
% |
1.69 |
17.10 |
|
EARNING PER SHARE |
BAHT |
14.98 |
159.35 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.20 |
0.25 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.24 |
0.34 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(16.17) |
|
|
OPERATING PROFIT |
% |
(44.20) |
|
|
NET PROFIT |
% |
(90.60) |
|
|
FIXED ASSETS |
% |
11.32 |
|
|
TOTAL ASSETS |
% |
(4.97) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.67 |
Deteriorated |
Industrial
Average |
21.85 |
|
Net Profit Margin |
0.90 |
Deteriorated |
Industrial
Average |
3.38 |
|
Return on Assets |
1.69 |
Deteriorated |
Industrial
Average |
6.31 |
|
Return on Equity |
2.11 |
Deteriorated |
Industrial
Average |
9.76 |
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 10.67%. When compared with
the industry average, the ratio of the company was lower, 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 0.9%. 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
1.69%.
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 2.11%.
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 |
3.54 |
Impressive |
Industrial
Average |
1.66 |
|
Quick Ratio |
1.88 |
|
|
|
|
Cash Conversion Cycle |
36.00 |
|
|
|
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 3.54 times in 2011, increased from 2.9 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 1.88 times in 2011,
increased from 1.83 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 36 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.20 |
Impressive |
Industrial
Average |
0.39 |
|
Debt to Equity Ratio |
0.24 |
Impressive |
Industrial
Average |
0.63 |
|
Times Interest Earned |
- |
|
Industrial
Average |
27.43 |
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.2 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 |
6.05 |
Impressive |
Industrial
Average |
4.03 |
|
Total Assets Turnover |
1.88 |
Satisfactory |
Industrial
Average |
1.93 |
|
Inventory Conversion Period |
38.82 |
|
|
|
|
Inventory Turnover |
9.40 |
Impressive |
Industrial
Average |
7.12 |
|
Receivables Conversion Period |
36.77 |
|
|
|
|
Receivables Turnover |
9.93 |
Impressive |
Industrial
Average |
5.51 |
|
Payables Conversion Period |
39.60 |
|
|
|
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.21 |
|
|
1 |
Rs.84.00 |
|
Euro |
1 |
Rs.67.75 |
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.