MIRA
INFORM REPORT
|
Report Date : |
07.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
NOVUS INTERNATIONAL [THAILAND] CO., LTD. |
|
|
|
|
Registered Office : |
25th Floor,
Lake Rajada Office
Complex, 193/104
Ratchadapisek Ro ad, Klongtoey, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
05.06.2003 |
|
|
|
|
Com. Reg. No.: |
0105546064390 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged in importing
and distributing wide
range of animal
health and nutrition
programs, including anti-oxidant, preservative, composition, nutrient
and for swine, poultry, cattle, shrimp,
fish and companion
animal industries. |
|
|
|
|
No of Employees : |
60 |
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 : |
Slow But Correct |
|
|
|
|
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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. Thailand is trying to
maintain growth by encouraging domestic consumption and public investment to
offset weak exports in 2012. 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 is implementing a
nation-wide 300 baht ($10) per day minimum wage policy and deploying 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 crisis severely cut Thailand's exports, with most sectors experiencing
double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010,
Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports
rebounded. In late 2011 growth was interrupted by historic flooding in the
industrial areas in Bangkok and its five surrounding provinces, crippling the
manufacturing sector. Industry recovered from the second quarter of 2012 onward
with GDP growth at 5.5% in 2012. The government has 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 next
seven years with a plan to start in 2013.
|
Source
: CIA |
COMPANY NAME
NOVUS
INTERNATIONAL [THAILAND] CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 25th FLOOR,
LAKE RAJADA OFFICE
COMPLEX,
193/104 RATCHADAPISEK
ROAD, KLONGTOEY,
BANGKOK 10110,
THAILAND
TELEPHONE : [66] 2661-8700
FAX :
[66] 2661-8707
E-MAIL
ADDRESS : wasita.p@novusint.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2003
REGISTRATION
NO. : 0105546064390
TAX
ID NO. : 3030956927
CAPITAL REGISTERED : BHT. 100,000,000
CAPITAL PAID-UP : BHT.
100,000,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : MARCH 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. DAVID PAUL
FRIEDMAN, AMERICAN
MANAGING DIRECTOR
NO.
OF STAFF : 60
LINES
OF BUSINESS : ANIMAL HEALTH
AND NUTRITION PROGRAMS
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 June 5,
2003 as a
private limited company
under the registered
name NOVUS INTERNATIONAL
[THAILAND] CO., LTD., by
foreign groups, with
the business objective
to import and
distribute wide range
of animal health
and nutrition programs
to poultry, livestock
and aquaculture businesses. It currently
employs approximately 60
staff.
The subject
is a wholly owned
subsidiary of Novus International
Inc., which is a
member of Mitsui & Co. [USA] Inc.,
in U.S.A.
The
subject’s registered address
is 25th Floor,
Lake Rajada Office
Complex, 193/104 Ratchadapisek
Road, Klongtoey, Bangkok
10110, and this is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Alice Virginia Sterkel |
|
American |
57 |
|
Mr. David Paul Friedman |
|
American |
53 |
|
Mr. Vaibhav Nagpal |
|
Indian |
43 |
|
Mr. Li Chun Pang |
|
Chinese |
42 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. David Paul Friedman
is the Managing
Director.
He is American
nationality with the
age of 53 years
old.
Ms. Pimpisa Sorat is
the Sales Manager.
She is Thai
nationality.
Ms. Wasita Padoongmatvorakul is
the Marketing Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
wide range of
animal health and
nutrition programs, including
anti-oxidant, preservative, composition,
nutrient and for
swine, poultry, cattle, shrimp,
fish and companion
animal industries.
MAJOR BRAND
“NOVUS”
PURCHASE
Most of the products are
imported from U.S.A.,
Singapore, France, Republic
of China, India,
Japan and Vietnam,
the remaining is
purchased from local
suppliers.
MAJOR SUPPLIER
Novus
International Inc. : U.S.A.
SALES
100% of the
products is sold
locally to wholesalers,
manufacturers 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
according to 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.
EMPLOYMENT
The
subject currently employs
approximately 60 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
commercial area.
COMMENT
Novus, U.S.A. is an international developer
of animal health and nutrition programs for the
animal feed industries.
It is a
leading brand of
quality and innovative products. Subject
is an importer
and distributor of
Novus products in
domestic market, which
its sales has
grown distinctively in
past several years.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 100,000,000 divided
into 100,000 shares
of Bht. 1,000
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
July 31, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Novus International Inc. Nationality: American Address : 20
Research Park Drive,
Saint Charles,
Missouri, U.S.A. |
99,998 |
100.00 |
|
Novus International [Canada]
Inc. Nationality: Canadian Address : Ontario,
Canada |
1 |
- |
|
Novus International Pte.
Ltd. Nationality: Singaporean Address : 112
Robinson Road, Singapore |
1 |
- |
Total Shareholders : 3
Share Structure [as
at July 31,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
3 |
100,000 |
100.00 |
|
Total |
3 |
100,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO
Ms. Nisakorn Songmanee No.
5035
BALANCE SHEET [BAHT]
The latest financial figures published
as at March
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
44,701,985 |
15,916,693 |
17,757,473 |
|
Trade Accounts & Other Receivable |
563,489,870 |
84,766,593 |
55,066,121 |
|
Trade Accounts Receivable - Related
company |
- |
- |
15,651,426 |
|
Other Receivable - Related
company |
- |
- |
3,275,168 |
|
Inventories |
470,485,867 |
111,888,020 |
107,335,436 |
|
Other Current Assets
|
1,208,290 |
1,159,318 |
2,717,941 |
|
|
|
|
|
|
Total Current Assets
|
1,079,886,012 |
213,730,624 |
201,803,565 |
|
|
|
|
|
|
Improvement Building and Equipment |
4,997,130 |
7,519,809 |
10,318,685 |
|
Intangible Assets |
29,518,579 |
30,460,867 |
- |
|
Deposit |
3,498,894 |
3,399,211 |
3,932,369 |
|
Other Non-current Assets |
763,000 |
910,000 |
- |
|
Total Assets |
1,118,63,615 |
256,020,511 |
216,054,619 |
LIABILITIES & SHAREHOLDERS’
EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
972,625,733 |
132,277,271 |
81,986,621 |
|
Other Payable |
|
|
|
|
Other company |
- |
- |
7,105,442 |
|
Related company |
- |
- |
910,628 |
|
Revenue Department Payable |
3,713,370 |
886,076 |
- |
|
Accrued Expenses |
- |
- |
3,709,779 |
|
Other Current Liabilities |
893,288 |
1,447,666 |
- |
|
|
|
|
|
|
Total Current Liabilities |
977,232,391 |
134,611,013 |
93,712,470 |
|
|
|
|
|
|
Employee Benefits Obligation |
1,662,855 |
1,439,765 |
- |
|
Total Liabilities |
978,895,246 |
136,050,778 |
93,712,470 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 100,000 shares |
100,000,000 |
100,000,000 |
100,000,000 |
|
|
|
|
|
|
Capital Paid |
100,000,000 |
100,000,000 |
100,000,000 |
|
Retained Earning Unappropriated [Deficit] |
39,768,369 |
19,969,733 |
22,342,149 |
|
Total Shareholders' Equity |
139,768,369 |
119,969,733 |
122,342,149 |
|
Total Liabilities & Shareholders' Equity |
1,118,663,615 |
256,020,511 |
216,054,619 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
1,438,143,387 |
370,514,678 |
326,259,816 |
|
Commission Income |
20,104,100 |
30,693,621 |
- |
|
Gain on Exchange Rate |
28,922,645 |
- |
2,695,049 |
|
Other Income |
89,537 |
204,305 |
18,292,640 |
|
Total Revenues |
1,487,259,669 |
401,412,604 |
347,247,505 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,322,357,089 |
306,889,694 |
265,244,167 |
|
Selling Expenses |
39,199,559 |
25,488,899 |
16,714,161 |
|
Administrative Expenses |
99,443,682 |
69,650,668 |
60,304,228 |
|
Loss on Exchange Rate |
- |
1,755,759 |
- |
|
Total Expenses |
1,461,000,330 |
403,785,020 |
342,262,556 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
26,259,339 |
[2,372,416] |
4,984,949 |
|
Financial Cost |
- |
- |
[157,576] |
|
Profit / [Loss] before Income Tax |
26,259,339 |
[2,372,416] |
4,827,373 |
|
Income Tax |
[6,460,703] |
- |
[2,805,994] |
|
|
|
|
|
|
Net Profit / [Loss] |
19,798,636 |
[2,372,416] |
2,21,379 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.11 |
1.59 |
2.15 |
|
QUICK RATIO |
TIMES |
0.62 |
0.75 |
0.98 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
287.79 |
49.27 |
31.62 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.29 |
1.45 |
1.51 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
129.86 |
133.07 |
147.70 |
|
INVENTORY TURNOVER |
TIMES |
2.81 |
2.74 |
2.47 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
143.01 |
83.50 |
61.60 |
|
RECEIVABLES TURNOVER |
TIMES |
2.55 |
4.37 |
5.92 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
268.47 |
157.32 |
112.82 |
|
CASH CONVERSION CYCLE |
DAYS |
4.41 |
59.25 |
96.49 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.95 |
82.83 |
81.30 |
|
SELLING & ADMINISTRATION |
% |
9.64 |
25.68 |
23.61 |
|
INTEREST |
% |
- |
- |
0.05 |
|
GROSS PROFIT MARGIN |
% |
11.47 |
25.51 |
25.13 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.83 |
(0.64) |
1.53 |
|
NET PROFIT MARGIN |
% |
1.38 |
(0.64) |
0.62 |
|
RETURN ON EQUITY |
% |
14.17 |
(1.98) |
1.65 |
|
RETURN ON ASSET |
% |
1.77 |
(0.93) |
0.94 |
|
EARNING PER SHARE |
BAHT |
197.99 |
(23.72) |
20.21 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.88 |
0.53 |
0.43 |
|
DEBT TO EQUITY RATIO |
TIMES |
7.00 |
1.13 |
0.77 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
31.64 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
288.15 |
13.56 |
|
|
OPERATING PROFIT |
% |
(1,206.86) |
(147.59) |
|
|
NET PROFIT |
% |
934.53 |
(217.37) |
|
|
FIXED ASSETS |
% |
(33.55) |
(27.12) |
|
|
TOTAL ASSETS |
% |
336.94 |
18.50 |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 288.15%. Turnover has increased from THB
PROFITABILITY : SATISFACTORY
PROFITABILITY RATIO
|
Gross Profit Margin |
11.47 |
Impressive |
Industrial Average |
6.78 |
|
Net Profit Margin |
1.38 |
Acceptable |
Industrial Average |
2.11 |
|
Return on Assets |
1.77 |
Deteriorated |
Industrial Average |
5.65 |
|
Return on Equity |
14.17 |
Satisfactory |
Industrial Average |
17.26 |
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. Gross Profit Margin is 11.47%. 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 1.38%.
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 1.77%.
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 14.17%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.11 |
Satisfactory |
Industrial
Average |
1.24 |
|
Quick Ratio |
0.62 |
|
|
|
|
Cash Conversion Cycle |
4.41 |
|
|
|
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 1.11 times in 2013, decrease from 1.59 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 0.62 times in 2013,
decrease from 0.75 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 5 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.88 |
Acceptable |
Industrial
Average |
0.77 |
|
Debt to Equity Ratio |
7.00 |
Risky |
Industrial
Average |
3.53 |
|
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 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 0.88 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 Uptrend
Times Interest Earned Stable
ACTIVITY : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
287.79 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.29 |
Deteriorated |
Industrial
Average |
2.67 |
|
Inventory Conversion Period |
129.86 |
|
|
|
|
Inventory Turnover |
2.81 |
Deteriorated |
Industrial
Average |
7.72 |
|
Receivables Conversion Period |
143.01 |
|
|
|
|
Receivables Turnover |
2.55 |
Acceptable |
Industrial
Average |
4.09 |
|
Payables Conversion Period |
268.47 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.55 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 decreased from 133 days at the
end of 2012 to 130 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 2.74 times in year 2012 to 2.81 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.29 times and 1.45
times in 2013 and 2012 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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.50 |
|
|
1 |
Rs. 101.91 |
|
Euro |
1 |
Rs. 84.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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 |
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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.