MIRA INFORM REPORT
|
Report No. : |
354112 |
|
Report Date : |
15.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
NEVIL GEMS CO., LTD. |
|
|
|
|
Formerly Known As : |
HI FASHION EXPORT CO., LTD. |
|
|
|
|
Registered Office : |
Room E, 33rd Floor, Gems Tower, 1249/209 Charoenkrung Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Year of Establishment : |
2012 |
|
|
|
|
Com. Reg. No.: |
0105555168305 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
THE SUBJECT
IS ENGAGED IN IMPORTING
AND DISTRIBUTING OF DIAMONDS
AND GEMSTONES FOR
JEWELRY INDUSTRY. |
|
|
|
|
No. of Employee : |
2 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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|
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Payment Behaviour : |
Slow |
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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 – 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’etat, 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
NEVIL GEMS
CO., LTD.
[FORMER :
HI FASHION EXPORT
CO., LTD.]
SUMMARY
REGISTRATION
ADDRESS : ROOM
E, 33rd FLOOR,
GEMS TOWER,
1249/209 CHAROENKRUNG
ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE
NO. : [66]
2266-4306
FAX
NO. : [66]
2266-4306
ESTABLISHED
: 2012
REGISTRATION
NO. : 0105555168305
TAX
ID NO. : 3035449332
CAPITAL REGISTERED : BHT. 2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
NIRAVKUMAR VALLABHBHAI VAGHANI,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : DIAMONDS AND GEMSTONES
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established on November 13,
2012 as a private
limited company under
the originally registered name “Hi
Fashion Export Co.,
Ltd.”, by Thai
and Indian groups. Its
business objective was
declared to the Commercial Registration Department to distribute
various kinds of
jewelry and ornament
products. On February
22, 2013, its
registered name was
changed to NEVIL GEMS CO.,
LTD. Its currently
employs 2 staff.
The
subject’s registered address was
initially at Room A3, 8th Floor, B.I.S
Building, 119 Mahaesak
Road, Suriyawongse, Bangrak,
Bangkok 10500.
On February 22, 2013, the subject’s registered address was
relocated to Room E, 33rd
Floor, Gems Tower,
Charoenkrung Road, Suriyawongse, Bangrak, Bangkok 10500, and this
is the subject’s
current operating address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Niravkumar Vallabhbhai Vaghani |
|
Indian |
32 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Niravkumar Vallabhbhai Vaghani
is the Managing Director.
He is Indian
nationality with the
age of 32 years
old.
BUSINESS OPERATIONS
The subject
is engaged in importing
and distributing of diamonds
and gemstones for
jewelry industry.
PURCHASE
100% of the
products is imported
from India.
SALES
100% of the
products is sold
locally to 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 for
the past two
years.
CREDIT
Sales are by
cash or on the
credits term of
30-60 days.
Imports are by
T/T.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject currently employs
2 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in commercial/residential area.
COMMENT
Subject
reported moderate sales
in 2014. However
it is a
small company and
growth is at
slow pace.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 2,000,000 divided into 20,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at April 30,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Niravkumar Vallabhbhai Vaghani Nationality: Indian Address : 1249/209
Charoenkrung Road,
Suriyawongse, Bangrak, Bangkok
|
9,800 |
49.00 |
|
Mr. Anusorn Sornkaew Nationality: Thai Address : 5
Serithai Road, Kannayao,
Bangkok |
3,400 |
17.00 |
|
Mr. Narong Kongthon Nationality: Thai Address : 134
Sukhumvit Road, Klongtonnua,
Wattana, Bangkok |
3,400 |
17.00 |
|
Mr. Sarawut Ruenpitak Nationality: Thai Address : 51
Ramkhamhaeng Road, Huamark,
Bangkapi, Bangkok |
3,400 |
17.00 |
Total Shareholders : 4
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
10,200 |
51.00 |
|
Foreign - Indian |
1 |
9,800 |
49.00 |
|
Total |
4 |
20,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms. Apinya Charoennithi No.
10860
FINANCIALS
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
26,479.26 |
23,914.93 |
88,000.00 |
|
Trade Account and Other Receivable |
4,705,646.26 |
2,277,665.30 |
4,750.00 |
|
Inventories |
- |
750,000.00 |
1,900,000.00 |
|
Other Current Assets
|
15,760,981.00 |
6,401,124.64 |
- |
|
|
|
|
|
|
Total Current Assets
|
20,493,106.52 |
9,452,704.87 |
1,992,750.00 |
|
|
|
|
|
|
Equipment, net |
13,484.94 |
17,727.73 |
- |
|
Total Assets |
20,506,591.46 |
9,470,432.60 |
1,992,750.00 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Account and
Other Payable |
17,360,171.77 |
8,721,870.09 |
6,156.75 |
|
Accrued Income Tax |
17,848.72 |
- |
- |
|
Loans from Director |
2,020,000.00 |
- |
- |
|
|
|
|
|
|
Total Current Liabilities |
19,428,020.49 |
8,721,870.09 |
6,156.75 |
|
Total Liabilities |
19,428,020.49 |
8,721,870.09 |
6,156.75 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 20,000 shares |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
|
|
|
|
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
[921,429.03] |
[1,251,437.49] |
[13,406.75] |
|
Total Shareholders' Equity
|
1,078,570.97 |
748,562.51 |
1,986,593.25 |
|
Total Liabilities and
Shareholders' Equity |
20,506,591.46 |
9,470,432.60 |
1,992,750.00 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
16,855,724.47 |
8,166,296.70 |
4,750.00 |
|
Other Income |
26,397.00 |
1,273.97 |
- |
|
Total Revenues |
16,882,121.47 |
8,167,570.67 |
4,750.00 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
15,372,359.77 |
7,875,678.58 |
- |
|
Selling Expenses |
129,897.49 |
600.00 |
- |
|
Administrative Expenses |
1,015,245.81 |
779,927.01 |
18,156.75 |
|
Loss on Exchange Rate |
- |
749,196.82 |
- |
|
Total Expenses |
16,517,503.07 |
9,405,402.41 |
18,156.75 |
|
|
|
|
|
|
Profit / Loss] before Financial
Cost and Income Tax |
364,618.40 |
[1,237,831.74] |
[13,406.75] |
|
Financial Cost |
[16,761.22] |
[199.00] |
- |
|
|
|
|
|
|
Profit / Loss] before Income Tax |
347,857.18 |
[1,230,030.74] |
[13,406.75] |
|
Income Tax |
[17,848.72] |
- |
- |
|
Net Profit / [Loss] |
330,008.46 |
[1,230,030.74] |
[13,406.75] |
NEVIL GEMS
CO., LTD.
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.05 |
1.08 |
323.67 |
|
QUICK RATIO |
TIMES |
0.24 |
0.26 |
15.06 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1,249.97 |
460.65 |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.82 |
0.86 |
0.00 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
34.76 |
- |
|
INVENTORY TURNOVER |
TIMES |
- |
10.50 |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
101.90 |
101.80 |
365.00 |
|
RECEIVABLES TURNOVER |
TIMES |
3.58 |
3.59 |
1.00 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
412.20 |
404.22 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
(310.30) |
(267.66) |
365.00 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.20 |
96.44 |
- |
|
SELLING & ADMINISTRATION |
% |
6.79 |
9.56 |
382.25 |
|
INTEREST |
% |
0.10 |
0.00 |
- |
|
GROSS PROFIT MARGIN |
% |
8.96 |
3.57 |
100.00 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.16 |
(15.16) |
(282.25) |
|
NET PROFIT MARGIN |
% |
1.96 |
(15.06) |
(282.25) |
|
RETURN ON EQUITY |
% |
30.60 |
(164.32) |
(0.67) |
|
RETURN ON ASSET |
% |
1.61 |
(12.99) |
(0.67) |
|
EARNING PER SHARE |
BAHT |
16.50 |
(61.50) |
(0.67) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.95 |
0.92 |
0.00 |
|
DEBT TO EQUITY RATIO |
TIMES |
18.01 |
11.65 |
0.00 |
|
TIME INTEREST EARNED |
TIMES |
21.75 |
(6,220.26) |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
106.41 |
171,822.04 |
|
|
OPERATING PROFIT |
% |
(129.46) |
9,132.90 |
|
|
NET PROFIT |
% |
126.83 |
(9,074.71) |
|
|
FIXED ASSETS |
% |
(23.93) |
- |
|
|
TOTAL ASSETS |
% |
116.53 |
375.24 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 106.41%. Turnover has increased from THB
8,166,296.70 in 2013 to THB 16,855,724.47 in 2014. While net profit has increased
from THB -1,230,030.74 in 2013 to THB 330,008.46 in 2014. And total assets has
increased from THB 9,470,432.60 in 2013 to THB 20,506,591.46 in 2014.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.96 |
Acceptable |
Industrial
Average |
14.45 |
|
Net Profit Margin |
1.96 |
Satisfactory |
Industrial
Average |
2.32 |
|
Return on Assets |
1.61 |
Deteriorated |
Industrial
Average |
4.94 |
|
Return on Equity |
30.60 |
Impressive |
Industrial
Average |
13.14 |
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 8.96%. 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 1.96%.
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 1.61%.
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 30.6%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.05 |
Acceptable |
Industrial
Average |
1.77 |
|
Quick Ratio |
0.24 |
|
|
|
|
Cash Conversion Cycle |
(310.30) |
|
|
|
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 1.05 times in 2014, decreased from 1.08 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 0.24 times in 2014,
decreased from 0.26 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 -311 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.95 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
18.01 |
Risky |
Industrial
Average |
1.46 |
|
Times Interest Earned |
21.75 |
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 21.76 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 0.95 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
1,249.97 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.82 |
Deteriorated |
Industrial
Average |
2.13 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial
Average |
3.38 |
|
Receivables Conversion Period |
101.90 |
|
|
|
|
Receivables Turnover |
3.58 |
Satisfactory |
Industrial Average |
4.06 |
|
Payables Conversion Period |
412.20 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.58 and 3.59 in
2014 and 2013 respectively. This ratio measures the efficiency of the company in
managing its trade debtors to generate revenue. A lower ratio may indicate over
extension and collection problems. Conversely, a higher ratio may indicate an
overtly stringent policy. In this case, the company's A/R ratio in 2014
decreased from 2013. This would suggest the company had deteriorated in the
management of its debt collections.
The company's Total Asset Turnover is calculated as 0.82 times and 0.86
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.66.99 |
|
|
1 |
Rs.101.78 |
|
Euro |
1 |
Rs.73.47 |
|
THB |
1 |
Rs. 1.86 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ASH |
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.