MIRA INFORM REPORT

Report Date :

9^th May 2006

IDENTIFICATION DETAILS

Name :	ALPHANI INTERNATIONAL CO., LTD.
Registered Office :	12^th Floor, Phyathai Plaza, 128 Phyathai Road, Ajthevee, Bangkok 10400, Thailand
Date of Incorporation :	1983
Com. Reg. No.:	0105526009377
Legal Form :	Private Limited Company
Line of Business :	Importers & distributors machinery & chemicals

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 :	Regular
Litigation :	Clear

NAME

ALPHANI INTERNATIONAL CO., LTD.

SUMMARY

BUSINESS ADDRESS : 12^th FLOOR, PHYATHAI PLAZA,

128 PHYATHAI ROAD,

RAJTHEVEE, BANGKOK 10400,

THAILAND

TELEPHONE : [66] 2216-5657

FAX : [66] 2216-5665

E-MAIL ADDRESS : alphani@loxinfo.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1983

REGISTRATION NO. : 0105526009377 [Former :

938/2526]

CAPITAL REGISTERED : BHT. 1,000,000

CAPITAL PAID-UP : BHT. 1,000,000

FISCALYEAR CLOSING DATE : FEBRUARY 28

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. PHANI KALAYANAKUPT,

THAI MANAGING DIRECTOR

NO. OF STAFF : 30

LINES OF BUSINESS : MACHINERY & CHEMICALS

IMPORTER & DISTRIBUTOR

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : GOOD ENGAGEMENT WITH

NORMAL BUSINESS

MANAGEMENT STANDARD : MANAGEMENT WITH GOOD

PERFORMANCE

HISTORY

The subject was established on March 8, 1983 as a private limited company under the name style ALPHANI INTERNATIONAL CO., LTD. by Thai groups, in order to operate as an importer and distributor of machinery and chemical products.

Since the beginning of its operation, the subject was being trusted and appointed as a distributor for Noudex of the U.S.A and Acima of Switzerland, the major supplier of additives and biocides for paint industry including technical and consulting services.

The subject’s initial registered address was 7^th/Floor, 518/3 Panunee Bldg., Ploenchit Rd., Lumpini, Pathumwan, Bangkok.

On March 21, 1988, it was moved to 14^th/Floor, 518/5 Maneeya Center Bldg., Ploenchit Rd., Lumpini, Pathumwan, Bangkok.

On May 10, 1994, it was relocated to 12^th/Floor, Phyathai Plaza, 128 Phyathai Rd., Rajthevee, Bangkok 10400, and this is the company’s current operating address. At present, the subject employs 30 staff.

THE BOARD OF DIRECTORS

Name	Nationality	Age
Mr. Phani Kalayanakupt	Thai	60
Mrs. Chutima Kalayanakupt	Thai	61
Mr. Chalermchai Niyomsen	Thai	62
Mrs. Kalaya Lertudommongkol	Thai	46

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Phani Kalayanakupt is the Managing Director.

He is Thai nationality with the age of 60 years old.

Mr. Chalermchai Niyomsen is the General and Marketing Manager.

He is Thai nationality with the age of 62 years old.

BUSINESS OPERATIONS

The subject’s activities are importer & distributor of chemical additives and biocides for paint, paper and plastic industry, as well as testing equipment, mill machinery and spare parts for paint industries. It also provides technical services, co-operated by respective suppliers covering consultation and evaluation of customers’ products when properties against microorganism are concerned.

IMPORT [COUNTRIES]

The subject purchases the machinery and chemical products from both local and overseas suppliers. 90% of the products are imported from overseas suppliers in Australia, Switzerland, Malaysia, Spain, Italy, Belgium, United States of America, Germany, Singapore, South Africa, Netherlands, Japan and Canada, and the remaining 10% is purchased from local suppliers.

MAJOR SUPPLIERS

The subject has over 50 local and overseas suppliers. The major suppliers are as follows:

List of Suppliers:

Name	Country	Products
Lorama	Canada	Chemical
Nouplex	Australia	Paint Additives
Acima	Switzerland	Biocides
Associated Kaolin	Malaysia	Kaolin Clay
Bentec S.A.	Italy	Organo Clay
Braive Instruments	Belgium	Lab Equipments
Creanova	U.S.A.	Colorants
Fabricolor	U.S.A.	Colour Pigments
Nismix	Singapore	Mill Machineries
Oxidos Rojos De Malaga	Spain	Iron Oxide
Rolefs Limited	South Africa	Colour Pigments
Sachtleben	Germany	White Extenders
Sasol Servo	Netherlands	Paint Additives
Shin-etsu	Japan	Vinyl Resin
Goman Solo	Spain	Chemical
First Color Ltd.	Korea	Paint Chemical

SALES [LOCAL]

100% of its products is sold directly to local manufacturers, wholesalers & end-users.

MAJOR CUSTOMERS

- TOA Manufacturing Co., Ltd.

Business Type : Manufacturer of Paint

- I.C.I. [Thailand] Ltd.

Business Type : Manufacturer of Paint

- Nippon Paint [Thailand] Ltd.

Business Type : Manufacturer of Paint

INSURANCE

Inventory is carried insurance with Guardian Insurance Co., Ltd.

Personnel is carried insurance with Ocean Insurance Co., Ltd.

SUBSIDIARIES & AFFILIATED COMPANY

Multicolor Corporation Industries Ltd.

Country : Thailand

Business Type : Distributor of Colour Card

LITIGATIONS

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

Purchasing terms are by cash or on the credits of 30-60 days.

Imports are by L/C at sight, D/A or T/T on the credit term of 60 days.

Sales are by cash or on the credit terms of 30-60 days.

BUSINESS TRANSACTION

In term of sales, the subject sells the products to local customers with the maximum credit given at 60 days. In the past, the maximum credit term of 90 days was given but it was abolished. The subject has recently changed the credit term policy with the maximum credit given at 60 days. 90% of its customer has paid on the agreed period, there is only 10% which is found by late payment of 5-7 days.

BANKING

Bangkok Bank Public Co., Ltd.

[Rajthevee Branch : 128/17-18 Phyathai Rd., Rajthevee, Bangkok]

Siam Commercial Bank Public Co., Ltd.

[Bangna-Trad Branch : 13 Sukhumvit Rd., Bangna, Bangkok ]

EMPLOYMENT

The subject employs approximately 30 staff.

LOCATION DETAILS

The premise is rented for operating administrative office at 12^th/Floor, Phyathai Plaza, 128 Phyathai Rd., Rajthevee, Bangkok 10400. It is located in a prime commercial area.

Warehouse is located at 33/71-72 Moo 10, Bangplee District, Samutprakarn Province 10540.

COMMENT

The subject has been in the business for over twenty years and represents more than a dozen suppliers of paint chemicals. The products have been trusted by its customers for a long time, as well as sales has continued risen due to demand from construction, plastic and automobile industries were remained strong.

FINANCIAL INFORMATION

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

THE SHAREHOLDERS LISTED WERE

[as at June 28, 2005]

NAME	HOLDING	%
Mr. Phani Kalayanakupt Nationality : Thai Address : 472 Sukhumvit 50 Rd., Phrakanong, Bangkok	8,800	88.00
Mrs. Sudaporn Kalayanakupt Nationality : Thai Address : 20 Soi 4 Seree 2, Mahaisawan, Suanluang, Phrakanong, Bangkok	200	2.00
Mr. Chalermchai Niyomsen Nationality : Thai Address : 30 Soi Sukchai, Sukhumvit Rd., Phrakanong, Bangkok	200	2.00
Mrs. Kalaya Lertudommongkol Nationality : Thai Address : 69 Supamitr Rd., Somanus, Pomprab, Bangkok	200	2.00
Mr. Apichai Chienpinijnant Nationality : Thai Address : 607/1 Phaholyothin Rd., T. Wieng, A. Muang, Chiengrai Province	200	2.00
Mr. Chalit Nakvivek Nationality : Thai Address : 69/4 Soi Kluaynamthai, Sukhumvit Rd., Phrakanong, Bangkok	200	2.00
Mr. Foo Sirivibool Nationality : Thai Address : 86/14 Wuthakas Rd., T. Bangkhau, A. Bangkhuntien, Bangkok	200	2.00

Total Shareholders : 7

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mr. Tawee Charnvaivit No. 2015

BALANCE SHEET [BAHT]

The latest financial figures published for February 28, 2005 & 2004 were:

ASSETS

Current Assets	2005	2004
Cash in hand & at Bank	42,145,693.50	46,975,584.32
Trade Accounts Receivable	80,772,390.40	88,929,821.74
Inventories	53,633,205.67	34,985,989.46
Deferred Income & Prepaid Expenses	2,563,231.86	-
Prepaid Income Tax	6,291,427.18	5,327,255.39
Other Current Assets	392,276.00	816,087.93
Total Current Assets	185,798,224.61	177,034,738.84
Investment in Other Company	-	4,000,000.00
Fixed Assets [note 1]	81,185,833.25	80,488,409.60
Other Assets	1,609,106.02	1,515,887.02
Total Assets	268,593,163.88	263,039,035.46

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2005	2004
Trade Accounts Payable	30,685,971.86	55,243,136.91
Account Payable - Revenue Department	556,298.72	601,499.99
Accrued Expenses	4,495,457.85	4,134,372.86
Accrued Income Tax	12,515,371.62	11,551,673.61
Other Current Liabilities	114,277.23	66,671.28
Total Current Liabilities	48,367,377.28	71,597,354.65
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	219,225,786.60	190,441,680.81
Total Shareholders' Equity	220,225,786.60	191,441,680.81
Total Liabilities & Shareholders' Equity	268,593,163.88	263,039,035.46

PROFIT & LOSS ACCOUNT

Revenue	2005	2004
Sales & Services Income	281,519,864.85	255,838,387.23
Interest Income	280,255.18	778,829.40
Other Income	1,061,771.89	1,620,805.88
Total Revenues	282,861,891.92	258,238,022.51
Expenses
Cost of Goods Sold & Services	202,201,705.07	186,683,154.66
Selling & Administrative Expenses	39,360,491.21	33,380,855.37
Total Expenses	241,562,196.28	220,064,010.03
Profit / [Loss] before Interest Expenses & Income Tax	41,299,695.64	38,174,012.48
Interest Expenses	[218.23]	[143.40]
Income Tax	[12,515,371.62]	[11,551,673.61]
Net Profit / [Loss]	28,784,105.79	26,622,195.47

FINANCIAL NOTE

NOTE 1 Fixed Assets

	2005	2004
Land	43,773,920.00	43,773,920.00
Land Improvement	500,000.00	500,000.00
Building	32,997,157.93	14,135,573.14
Office Automation	4,978,979.07	3,731,579.07
Office Furniture	11,088,476.57	11,088,476.57
Vehicle	28,160,265.05	25,956,295.89
Works in Process	-	18,691,588.79
Total	121,498,798.62	117,877,433.46
Less : Depreciation	[40,312,965.37]	[37,389,023.86]
Total	81,185,833.25	80,488,409.60

FINANCIAL ANALYSIS

Annual Growth & Profitability

Annual Growth	2005	2004
Sales	10.04
Operating	[0.25]
Net Profit	8.12
Fixed Assets	0.87
Total Assets	2.11
Profitability
Cost of Goods Sold	71.83	72.97
Operating Profit Margin	28.17	27.03
S&A expenses	13.98	13.05
Interest	0.00	0.00
Other Revenues	0.48	0.94
Net Profit Margin	10.22	10.41
Earning Per Shares	2,878.41	2,662.22
No. of Shares	10,000	10,000

Net Sales was increased by 10.04%, Operating Profit was decreased by 0.25%, Net Profit was increased by 8.12%, Fixed Assets was increased by 0.87%, Total Assets was increased by 2.11%.

Compare each cost with sales, Cost of Goods Sold was decreased from 72.97% to 71.83%, Operating Profit Margin was increased from 27.03% to 28.17%, S & A Expenses were increased from 13.05% to 13.98%, Interest Paid was stable at 0.00%, Other Revenues was decreased from 0.94% to 0.48%, Net Profit Margin was decreased from 10.41% to 10.22%.

Earning Per Shares was increased from 2,662.22 baht per share to 2,878.41 baht per share.

Liquidity

Liquidity	2005	2004
Current Ratio	3.84	2.47
Quick - assets ratio	2.54	1.90

Current Ratio was increased from 2.47 to 3.84, show Current Assets can cover Current Liabilities, Liquidity Ratio of the company was good, and Quick-assets Ratio was increased from 1.90 to 2.54, capacity to pay Short Term Loan was good too, because Current Assets without Inventory can cover Current Liabilities.

Leverage

Leverage	2005	2004
D/E Ratio	0.22	0.37
Times Interest Earned	183,098.88	249,472.64

D/E Ratio was decreased from 0.37 to 0.22, show the company had fund from Equity more than fund from Loan, investment risked of the company is low and Times Interest Earned was decreased from 249,472.64 to 183,098.88, capacity to pay interest paid was good.

Efficiency

Efficiency	2005	2004
Fixed Assets Turnover	3.47	3.18
Total Assets Turnover	1.05	0.97
Return on Assets	10.72	10.12
Return on Equity	13.07	13.91
Day’s Payable	55.39	108.01
Day’s Inventories	96.81	68.40
Days’ Receivables	104.72	126.87

Fixed Assets Turnover was increased from 3.18 times to 3.47 times, Total Assets Turnover was increased from 0.97 times to 1.05 times, show the company could use Assets so efficiently, and Return on Assets was increased from 10.12 to 10.72, Return on Equity was decreased from 13.91 to 13.07, capacity to use Assets to make profit was good.

Day’s Payable was decreased from 109 days to 56 days, while Day’s Inventories was increased from 69 days to 97 days, but Day’s Receivables was decreased from 127 days to 105 days.

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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