MIRA INFORM REPORT

 

 

Report Date :

29.12.2014

 

IDENTIFICATION DETAILS

 

Name :

NEW WORLD LOGISTICS CO. LTD.

 

 

Registered Office :

17  Moo  10,  T. Thungsukhla,  A. Sriracha, Chonburi   20230, 

 

 

Country :

Thailand

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

10.03.2009

 

 

Com. Reg. No.:

0205552004025

 

 

Legal Form :

Private  Limited  Company

 

 

Line of Business :

The  subject’s  core  business  is  engaged  in  importing  and  distributing  various  kinds  of  fresh fruits such  as  orange, apple, pear,  plum, peach  and  vegetables  such  as  shallot,  garlic

 

 

No. of Employees :

6

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

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, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Thailand

B1

B1

 

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, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. 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 economy has weathered internal and external economic shocks in recent years. The global economic recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the following seven years. This was expected to lead to an economic upsurge but growth has remained slow, in part due to ongoing political unrest and resulting uncertainties. Spending on infrastructure will require re-approval once a new government is seated.

 

Source : CIA

 

Company name

 

NEW WORLD LOGISTICS CO. LTD.

 

 

SUMMARY

 

BUSINESS  ADDRESS                          :           17  MOO  10,  T. THUNGSUKHLA,  A. SRIRACHA,

                                                                        CHONBURI   20230,  THAILAND

TELEPHONE                                         :           [66]   38  494-393,  089  939-3307

FAX                                                      :           [66]   38  401-231

E-MAIL  ADDRESS                                :           -

REGISTRATION  ADDRESS                   :           SAME  AS  BUSINESS  ADDRESS

 

ESTABLISHED                                     :           2009

REGISTRATION  NO.                            :           0205552004025

TAX  ID  NO.                                          :           3033422177

CAPITAL REGISTERED                         :           BHT.   2,000,000

CAPITAL PAID-UP                                 :           BHT.   2,000,000

SHAREHOLDER’S  PROPORTION         :           THAI     :     100%

FISCAL YEAR CLOSING DATE              :           DECEMBER   31            

LEGAL  STATUS                                   :           PRIVATE  LIMITED  COMPANY

EXECUTIVE                                          :           MR. CHAIYA  POONPANANG,  THAI

                                                                        MANAGING  DIRECTOR           

 

NO.  OF  STAFF                                    :           6

LINES  OF  BUSINESS                          :           FRESH  FRUITS

                                                                        IMPORTER  AND  DISTRIBUTOR

                                                                         

 

CORPORATE PROFILE

 

OPERATING  TREND                             :           STABLE                       

PRESENT  SITUATION                          :           OPERATING  NORMALLY                     

REPUTATION                                        :           -

MANAGEMENT  STANDARD                 :           -                      

 

 

HISTORY

 

The subject  was  established on  March 10,  2009  as  a  private  limited  company  under the  registered name NEW  WORLD LOGISTICS CO., LTD.,  by  Thai groups, with  the  business  objective to distribute fresh fruits,  as  well  as  provide  logistics  service  in Thailand. It  currently  employs  6  staff.  

 

The subject’s registered address is 17 Moo 10,  T. Thungsukhla, A. Sriracha, Chonburi 20230,  and  this  is  the  subject’s  current  operation  address.  

 

 

THE  BOARD  OF  DIRECTOR

 

     Name

 

Nationality

Age

 

 

 

 

Mr. Chaiya  Poonpanang

 

Thai

48

Mrs. Saengthien  Poonpanang

 

Thai

44

 

 

AUTHORIZED  PERSON

 

One  of  the  above  directors  can  sign  on  behalf  of  the  subject  with  company’s  affixed.

 

 

MANAGEMENT

 

Mr. Chaiya  Poonpanang  is  the  Managing  Director.

He  is  Thai  nationality  with  the  age  of  48  years  old.  

 

 

BUSINESS  OPERATIONS

 

The  subject’s  core  business  is  engaged  in  importing  and  distributing  various  kinds  of  fresh fruits such  as  orange, apple, pear,  plum, peach  and  vegetables  such  as  shallot,  garlic.

 

The  subject  also  provides  land  transportation  and  logistics  services.

 

 

PURCHASE

 

The   products  are  purchased  from  both  local  and  overseas  suppliers  in  Republic  of  China  and  India.

 

 

SALES 

 

100%  of  the  products  is  sold  locally  to  wholesalers  and  end-users.

 

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  15-30  days.

Local  bills  are  paid  by  cash  or  on  the  credits  term  of  30-60  days.

Imports  are  by  D/A  or  T/T.

 

 

BANKING

 

The  banker’s  name  was  not  disclosed.

 

 

EMPLOYMENT

 

The  subject  currently  employs  6  staff.

 

 

LOCATION DETAILS

 

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

 

 

 

COMMENT

 

The  subject  has  never  submitted  its  financial  statement  since  2011.   However,  it   is  still  doing  normal  business.  Sales  of  imported  fresh  fruit  and  vegetable  remains  moderate.  With  no  financial  information  available,  any  business  engagement  should  be  on  secured  basis  only.

 

 

FINANCIAL INFORMATION

 

The  capital  was  registered  at  Bht. 1,000,000  divided  into 10,000 shares of  Bht. 100  each  with  fully  paid.

 

On  February  2,  2011,  the  capital  was  increased  to  Bht. 2,000,000  divided  into 20,000  shares  of  Bht. 100  each  with  fully  paid.

 

 

THE  SHAREHOLDERS  LISTED  WERE  

 

[as  at  April  30,  2011]

 

       NAME

HOLDING

%

 

 

 

Mr. Chaiya  Poonpanang

Nationality:  Thai

Address     :  17  Moo  10,  T. Thungsukhla, A. Sriracha, 

                     Chonburi

10,000

50.00

Mrs. Saengthien  Poonpanang

Nationality:  Thai

Address     :  17  Moo  10,  T. Thungsukhla,  A. Sriracha, 

                     Chonburi

9,600

48.00

Mr. Chaiwat  Poonpanang

Nationality:  Thai

Address     :  17  Moo  10,  T. Thungsukhla,  A. Sriracha, 

                     Chonburi

400

2.00

 

Total  Shareholders  :   3

 

Share  Structure  [as  at  April  30,  2011]

 

Nationality

Shareholders

No. of  Share

% Shares

 

 

 

 

Thai

3

20,000

100.00

Foreign

-

-

-

 

Total

 

3

 

20,000

 

100.00

 

NAME  OF  AUDITOR  &  CERTIFIED  PUBLIC  ACCOUNTANT  NO.

 

Ms. Chayathiti  Pansa-nguansuk  No.   8710

 

Note:

 

The  2011-2013,  financial  statements  have  never  been  submitted  to  the  Commercial  Registration  Department.

 

 

BALANCE SHEET [BAHT]

 

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

          

ASSETS

                                                                                                 

Current Assets

2010

2009

 

 

 

Cash  and Cash Equivalent

54,180.55

264,443.56

Short-term Loan  to Related Company

500,000.00

-

Inventories

-

6,727,038.26

Other  Current  Assets       

18,929.23

4,233.00

 

 

 

Total  Current  Assets                 

573,109.78

6,995,714.82

 

 

 

Fixed Assets          

64,649.43

78,343.10

 

Total  Assets                  

 

637,759.21

 

7,074,057.92

 

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

 

Current Liabilities

2010

2009

 

 

 

Other  Current  Liabilities             

393,242.10

175,480.26

 

 

 

Total  Current Liabilities

393,242.10

175,480.26

 

Long-term Loan from Related Person

 

-

 

6,000,000.00

 

Total  Liabilities               

 

393,242.10

 

6,175,480.26

 

 

 

Shareholders’ Equity

 

 

 

 

 

 Share  capital : Baht  100  par  value 

  authorized,  issued  and  fully 

  paid  share  capital  10,000  shares

 

 

1,000,000.00

 

 

1,000,000.00

 

 

 

Capital  Paid                      

1,000,000.00

1,000,000.00

Retained  Earning  -  Unappropriated

[755,482.89]

[101,422.34]

 

Total Shareholders' Equity

 

244,517.11

 

898,577.66

 

Total Liabilities  &  Shareholders'  Equity

 

637,759.21

 

7,074,057.92

            

                                     

PROFIT  &  LOSS  ACCOUNT

 

Revenue

2010

March  10,  2009 –

Dec.  31,  2009

 

 

 

Sales  Income                                        

112,664,912.63

33,207,620.00

Logistics  and Services  Income

1,302,500.00

423,300.00

Other  Income                 

1,671.23

-

 

Total  Revenues              

 

113,969,083.86

 

33,630,920.00

 

Expenses

 

 

 

 

 

Cost  of  Goods  Sold                  

104,525,047.82

33,062,560.79

Cost  of  Logistics  and  Services

9,054,755.15

76,060.75

Administrative  Expenses

1,043,341.44

593,720.80

 

Total Expenses               

 

114,623,144.41

 

33,732,342.34

 

 

 

Profit / [Loss]  before  Financial Cost

[654,060.55]

[101,422.34]

Financial Cost

-

-

 

 

 

Net  Profit / [Loss]

[654,060.55]

[101,422.34]

 

 

FINANCIAL ANALYSIS

 

ITEM

UNIT

2010

2009

 

 

 

 

LIQUIDITY RATIO

 

 

 

CURRENT RATIO

TIMES

1.46

39.87

QUICK RATIO

TIMES

1.41

1.51

 

 

 

 

ACTIVITY RATIO

 

 

 

FIXED ASSETS TURNOVER

TIMES

1,742.71

423.87

TOTAL ASSETS TURNOVER

TIMES

176.66

4.69

INVENTORY CONVERSION PERIOD

DAYS

-

74.26

INVENTORY TURNOVER

TIMES

-

4.91

RECEIVABLES CONVERSION PERIOD

DAYS

-

-

RECEIVABLES TURNOVER

TIMES

-

-

PAYABLES CONVERSION PERIOD

DAYS

-

-

CASH CONVERSION CYCLE

DAYS

-

74.26

 

 

 

 

PROFITABILITY RATIO

 

 

 

COST OF GOODS SOLD

%

92.78

99.56

SELLING & ADMINISTRATION

%

0.93

1.79

INTEREST

%

-

-

GROSS PROFIT MARGIN

%

8.38

1.71

NET PROFIT MARGIN BEFORE EX. ITEM

%

(0.58)

(0.31)

NET PROFIT MARGIN

%

(0.58)

(0.31)

RETURN ON EQUITY

%

(267.49)

(11.29)

RETURN ON ASSET

%

(102.56)

(1.43)

EARNING PER SHARE

BAHT

(65.41)

(10.14)

 

 

 

 

LEVERAGE RATIO

 

 

 

DEBT RATIO

TIMES

0.62

0.87

DEBT TO EQUITY RATIO

TIMES

1.61

6.87

TIME INTEREST EARNED

TIMES

-

-

 

 

 

 

ANNUAL GROWTH

 

 

 

SALES GROWTH

%

239.27

-

OPERATING PROFIT

%

544.89

-

NET PROFIT

%

(544.89)

-

FIXED ASSETS

%

(17.48)

-

TOTAL ASSETS

%

(90.98)

-

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFITABILITY: RISKY

 

 

PROFITABILITY RATIO

 

Gross Profit Margin

8.38

Acceptable

Industrial Average

14.76

Net Profit Margin

(0.58)

Deteriorated

Industrial Average

1.81

Return on Assets

(102.56)

Deteriorated

Industrial Average

4.52

Return on Equity

(267.49)

Deteriorated

Industrial Average

12.42

 

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 8.38%. When compared with the industry average, the ratio of the company was lower. This indicated that company may have 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 -0.58%. 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 -102.56%.

 

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 -267.49%.

 

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

Return on Assets                       Downtrend

Return on Equity                        Downtrend

 

LIQUIDITY : ACCEPTABLE

 

 

LIQUIDITY RATIO

 

Current Ratio

1.46

Impressive

Industrial Average

1.19

Quick Ratio

1.41

 

 

 

Cash Conversion Cycle

-

 

 

 

 

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 1.46 times in 2010, decrease from 39.87 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 1.41 times in 2010, decrease from 1.51 times, although excluding inventory so the company still have good short-term financial strength.

 

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

Current Ratio                 Downtrend

 

LEVERAGE : RISKY

 

 

 

LEVERAGE RATIO

 

Debt Ratio

0.62

Acceptable

Industrial Average

0.57

Debt to Equity Ratio

1.61

Risky

Industrial Average

1.38

Times Interest Earned

-

 

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.

 

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

1,742.71

Impressive

Industrial Average

-

Total Assets Turnover

176.66

Impressive

Industrial Average

2.81

Inventory Conversion Period

-

 

 

 

Inventory Turnover

-

 

Industrial Average

10.41

Receivables Conversion Period

-

 

 

 

Receivables Turnover

-

 

Industrial Average

5.39

Payables Conversion Period

-

 

 

 

 

The company's Total Asset Turnover is calculated as 176.66 times and 4.69 times in 2010 and 2009 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.63.63

UK Pound

1

Rs.98.98

Euro

1

Rs.77.74

 

INFORMATION DETAILS

 

Analysis Done by :

 KAR

 

 

Report Prepared by :

ANK

 

               

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.