MIRA INFORM REPORT
|
Report No. : |
337682 |
|
Report Date : |
21.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
FRIENDS FOOD EXPORT CO., LTD. |
|
|
|
|
Registered Office : |
51/3 Moo 8, T. Bangkrachao, A. Muang,
Samutsakorn 74000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
18.08.1998 |
|
|
|
|
Com. Reg. No.: |
0745541001106 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and Exporter of Frozen Fresh and Sea Water Animals. |
|
|
|
|
No. of Employees : |
150 |
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 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise
economy, and generally pro-investment policies Thailand has historically had a
strong economy due in part to competitive industrial and agriculture exports -
mostly electronics, agricultural commodities, automobiles and parts, and
processed foods. The economy experienced slow growth and declining exports in
2014, in part due to domestic political turmoil and sluggish global demand.
With full employment, Thailand attracts an estimated 2-4 million migrant
workers from neighboring countries, and faces labor shortages. Following the
May 2014 coup d’tat, tourism decreased 6-7% but is beginning to recover. The
household debt to GDP ratio is over 80%. The Thai government in 2013
implemented a nation-wide 300 baht ($10) per day minimum wage policy and
deployed new tax reforms designed to lower rates on middle-income earners. The
Thai baht has remained stable.
|
Source
: CIA |
Company
Name
FRIENDS FOOD
EXPORT CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 51/3
MOO 8, T. BANGKRACHAO, A. MUANG,
SAMUTSAKORN 74000,
THAILAND
TELEPHONE : [66] 34
869-167-8
FAX :
[66] 34
839-847
E-MAIL
ADDRESS : friendsfoodltd@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1998
REGISTRATION
NO. : 0745541001106
TAX
ID NO. : 3751023021
CAPITAL REGISTERED : BHT. 14,000,000
CAPITAL PAID-UP : BHT.
14,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
PAKISTANI :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. MUHAMMED ILYAS,
PAKISTANI
MANAGING DIRECTOR
NO.
OF STAFF : 150
LINES
OF BUSINESS : FROZEN FRESH
AND SEA WATER
ANIMALS
MANUFACTURER AND
EXPORTER
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 August 18,
1998 as a
private limited company
under the registered
name FRIENDS FOOD EXPORT CO.,
LTD., by Thai and
Pakistani groups, with
the business objective
to manufacture processed
frozen, fresh and
sea water animals
for export. It
currently employs approximately 150
staff.
The
subject’s registered address
is 51/3 Moo
8, T. Bangkrachao, A. Muang,
Samutsakorn
74000, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Muhammed Ilyas |
|
Pakistani |
60 |
|
Mr. Masood Parvez |
|
Pakistani |
47 |
|
Mr. Raja Haroon Ilyas |
|
Pakistani |
27 |
AUTHORIZED
PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Muhammed Ilyas is
the Managing Director.
He is Pakistani
nationality with the
age of 60
years old.
BUSINESS
OPERATIONS
The subject
is engaged in
manufacturing and exporting
various kinds of
processed frozen, fresh
and sea water
animals, such as
fish, crabs, shell
fish, shrimps, squids,
as well as
dry fish products.
PURCHASE
100% of the
products is purchased
from local fisheries
and suppliers.
SALES
100% of the
products is exported
to Pakistan, Hong Kong, India,
Japan and the
countries in Middle
East and Europe.
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 according to past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Exports are against
T/T.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject employs approximately
150 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office,
factory and cold
storage at the
heading address. Premise
is located in
provincial.
COMMENT
The subject
is a manufacturer
and exporter of
frozen, fresh and
sea water animals.
Consumption of food
products in world
market remains strong
and stable growth.
Its business has
continued growing despite
overall world economy
remains slow recovering.
FINANCIAL
INFORMATION
The
capital was registered at Bht. 4,000,000 divided
into 40,000 shares of
Bht. 100 each with
fully paid.
The
capital was increased
later as follows:
Bht. 8,000,000
on November 7,
2005
Bht. 14,000,000
on June 10,
2008
The
latest registered capital
was increased to Bht.
14,000,000 divided into 140,000
shares of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
[as
at April 30,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Muhammed Ilyas Nationality: Pakistani Address : 51/3
Moo 8, T. Bangkrachao, A. Muang,
Samutsakorn |
40,000 |
28.57 |
|
Mrs. Rungaroon Songchim Nationality: Thai Address : 119/74
Moo 2, Bangsaothong,
Samutprakarn |
31,400 |
22.43 |
|
Ms. Saranvalai Suadech Nationality: Thai Address : 33/16
Moo 7, T. Chaimongkol, A. Muang, Samutsakorn |
20,000 |
14.29 |
|
Mrs. Nuengruthai Chantaburi Nationality: Thai Address : 89/1
Moo 7, T. Thaphor,
A. Muang, Pichit |
20,000 |
14.29 |
|
Mr. Masood Parvez Nationality: Pakistani Address : 51/3
Moo 8, T. Bangkrachao, A. Muang,
Samutsakorn |
16,100 |
11.50 |
|
Mr. Raja Haroon Ilyas Nationality: Pakistani Address : 51/3
Moo 8, T. Bangkrachao, A. Muang,
Samutsakorn |
12,500 |
8.92 |
Total Shareholders : 6
Share
Structure
[as at April
30, 2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
71,400 |
51.00 |
|
Foreign - Pakistani |
3 |
68,600 |
49.00 |
|
Total |
6 |
140,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Supichaya Sukwattanawit No.
9364
BALANCE
SHEET [BAHT]
The latest financial figures published
as at December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
99,213.96 |
72,734.25 |
430,561.55 |
|
Short-term Investment |
224,218.83 |
224,218.83 |
- |
|
Trade Accounts &
Other Receivable |
14,370,491.83 |
9,401,833.05 |
14,450,068.38 |
|
Short-term Loans to Person or Related |
- |
23,550,000.00 |
- |
|
Advance Receipt for Goods |
12,700,000.00 |
- |
- |
|
Inventories |
2,666,026.00 |
932,505.00 |
729,871.50 |
|
Other Current Assets
|
193,307.42 |
452,545.11 |
360,229.12 |
|
|
|
|
|
|
Total Current Assets
|
30,253,258.04 |
34,633,836.24 |
15,970,730.55 |
|
Long-term Loans |
- |
- |
13,207,000.00 |
|
Fixed Assets |
25,844,116.90 |
36,496,509.67 |
41,494,667.55 |
|
Other Non - current Assets |
202,000.00 |
202,000.00 |
202,000.00 |
|
Total Assets |
56,299,374.94 |
71,332,345.91 |
70,874,398.10 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
16,569,444.95 |
18,055,721.29 |
18,740,163.97 |
|
Trade Accounts & Other
Payable |
- |
12,398,158.00 |
11,194,268.58 |
|
Current Portion of
Long-term Loans |
2,467,571.78 |
3,809,902.00 |
6,573,108.00 |
|
Current Portion of
Hire-purchase Payable |
127,336.44 |
- |
- |
|
Accrued Income Tax |
148,571.53 |
206,691.90 |
187,205.92 |
|
Other Current Liabilities |
136,761.83 |
40,836.56 |
63,383.84 |
|
|
|
|
|
|
Total Current Liabilities |
19,449,686.53 |
34,511,309.75 |
36,758,130.31 |
|
Long-term Loan from Financial Institutions |
15,434,219.03 |
16,602,782.91 |
15,166,161.54 |
|
Hire-purchase Payable, Net |
116,725.09 |
- |
- |
|
Total Liabilities |
35,000,630.65 |
51,114,092.66 |
51,924,291.85 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and
issued share capital
140,000 shares |
14,000,000.00 |
14,000,000.00 |
14,000,000.00 |
|
|
|
|
|
|
Capital Paid |
14,000,000.00 |
14,000,000.00 |
14,000,000.00 |
|
Retained Earning Unappropriated |
7,298,744.29 |
6,218,253.25 |
4,950,106.25 |
|
Total Shareholders' Equity |
21,298,744.29 |
20,218,253.25 |
18,950,106.25 |
|
Total Liabilities & Shareholders' Equity |
56,299,374.94 |
71,332,345.91 |
70,874,398.10 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
127,773,912.16 |
83,153,870.01 |
80,039,920.90 |
|
Other Income |
297,045.32 |
12,017,123.23 |
11,841,776.93 |
|
Total Revenues |
128,070,957.48 |
95,170,993.24 |
91,881,697.83 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
102,237,399.47 |
76,839,799.42 |
68,927,606.28 |
|
Selling Expenses |
- |
- |
16,405,719.99 |
|
Administrative Expenses |
21,831,524.51 |
14,896,041.06 |
2,519,458.07 |
|
Total Expenses |
124,068,923.98 |
91,735,840.48 |
87,852,784.34 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
4,002,033.50 |
3,435,152.76 |
4,028,913.49 |
|
Financial Cost |
[2,612,970.93] |
[1,825,313.86] |
[2,703,941.40] |
|
Profit before Income
Tax |
1,389,062.57 |
1,609,838.90 |
1,324,972.09 |
|
Income Tax |
[308,571.53] |
[341,691.90] |
[325,205.92] |
|
|
|
|
|
|
Net Profit / [Loss] |
1,080,491.04 |
1,268,147.00 |
999,766.17 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.56 |
1.00 |
0.43 |
|
QUICK RATIO |
TIMES |
1.41 |
0.96 |
0.40 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.94 |
2.28 |
1.93 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.27 |
1.17 |
1.13 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
9.52 |
4.43 |
3.86 |
|
INVENTORY TURNOVER |
TIMES |
38.35 |
82.40 |
94.44 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
41.05 |
41.27 |
65.90 |
|
RECEIVABLES TURNOVER |
TIMES |
8.89 |
8.84 |
5.54 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
58.89 |
59.28 |
|
CASH CONVERSION CYCLE |
DAYS |
50.57 |
(13.19) |
10.48 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
80.01 |
92.41 |
86.12 |
|
SELLING & ADMINISTRATION |
% |
17.09 |
17.91 |
23.64 |
|
INTEREST |
% |
2.04 |
2.20 |
3.38 |
|
GROSS PROFIT MARGIN |
% |
20.22 |
22.04 |
28.68 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.13 |
4.13 |
5.03 |
|
NET PROFIT MARGIN |
% |
0.85 |
1.53 |
1.25 |
|
RETURN ON EQUITY |
% |
5.07 |
6.27 |
5.28 |
|
RETURN ON ASSET |
% |
1.92 |
1.78 |
1.41 |
|
EARNING PER SHARE |
BAHT |
7.72 |
9.06 |
7.14 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.62 |
0.72 |
0.73 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.64 |
2.53 |
2.74 |
|
TIME INTEREST EARNED |
TIMES |
1.53 |
1.88 |
1.49 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
53.66 |
3.89 |
|
|
OPERATING PROFIT |
% |
16.50 |
(14.74) |
|
|
NET PROFIT |
% |
(14.80) |
26.84 |
|
|
FIXED ASSETS |
% |
(29.19) |
(12.05) |
|
|
TOTAL ASSETS |
% |
(21.07) |
0.65 |
|
ANNUAL
GROWTH: ACCEPTABLE
An annual sales growth is 53.66%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
20.22 |
Impressive |
Industrial Average |
4.89 |
|
Net Profit Margin |
0.85 |
Acceptable |
Industrial Average |
1.59 |
|
Return on Assets |
1.92 |
Impressive |
Industrial Average |
(1.16) |
|
Return on Equity |
5.07 |
Impressive |
Industrial Average |
(14.99) |
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 20.22%. When compared with the industry
average, the ratio of the company was higher, 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. Return on Assets ratio is 1.92%, 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 5.07%, 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 :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.56 |
Impressive |
Industrial
Average |
1.27 |
|
Quick Ratio |
1.41 |
|
|
|
|
Cash Conversion Cycle |
50.57 |
|
|
|
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 1.56 times in 2014, increased from 1 time, 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 1.41 times in 2014,
increased from 0.96 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 51 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.62 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
1.64 |
Risky |
Industrial
Average |
(3.74) |
|
Times Interest Earned |
1.53 |
Impressive |
Industrial
Average |
- |
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 higher the percentage means that the company is using
less equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1.54 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 0.62 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 Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.94 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
2.27 |
Impressive |
Industrial
Average |
0.72 |
|
Inventory Conversion Period |
9.52 |
|
|
|
|
Inventory Turnover |
38.35 |
Impressive |
Industrial
Average |
0.75 |
|
Receivables Conversion Period |
41.05 |
|
|
|
|
Receivables Turnover |
8.89 |
Impressive |
Industrial
Average |
3.40 |
|
Payables Conversion Period |
- |
|
|
|
The company's Account Receivable Ratio is calculated as 8.89 and
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current inventory.
Inventory is particularly sensitive to change in business activities. The
inventory turnover in days has increased from 4 days at the end of 2013 to 10
days at the end of 2014. This represents a negative trend. And Inventory
turnover has decreased from 82.4 times in year 2013 to 38.35 times in year
2014.
The company's Total Asset Turnover is calculated as 2.27 times and 1.17
times in 2014 and 2013 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.24 |
|
|
1 |
Rs.102.21 |
|
Euro |
1 |
Rs.72.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
NIT |
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.