MIRA INFORM REPORT

Report Date :

19.02.2008

IDENTIFICATION DETAILS

Name :	K I K (BANGKOK) CO LTD

Registered Office :	29^th Floor, ITF-Silom Palace Building, 160/714 Silom Road, Suriyawongse, Bangrak, Bangkok 10500

Country :	Thailand

Financials (as on) :	2006

Date of Incorporation :	19.04.2004

Com. Reg. No.:	0105547053596

Legal Form :	Private Limited Company

Line of Business :	Importing and Distributing of Diamonds and Precious Stone

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Company

Payment Behaviour :	No Complaints

Litigation :	Clear

COMPANY NAME

K. I. K. [BANGKOK] CO., LTD.

SUMMARY

BUSINESS ADDRESS : 29^th FLOOR, ITF-SILOM PALACE BUILDING,

160/714 SILOM ROAD, SURIYAWONGSE,

BANGRAK, BANGKOK 10500

TELEPHONE : [66] 2237-2552

FAX : [66] 2237-2552

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2004

REGISTRATION NO. : 0105547053596

CAPITAL REGISTERED : BHT. 4,000,000

CAPITAL PAID-UP : BHT. 4,000,000

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. NIKHIL KANAI YALAL SHAH, INDIAN

MANAGING DIRECTOR

NO. OF STAFF : 2

LINES OF BUSINESS : DIAMONDS AND PRECIOUS STONES

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 April 19, 2004 as a private limited company under the name style K. I. K. [BANGKOK] CO., LTD., by Thai and Indian groups, in order to import and distribute diamonds and precious stones to domestic market. It currently employs 2 staff.

The subject’s registered address is 160/714 ITF-Silom Palace Bldg., Silom Rd., Suriyawongse, Bangrak, Bangkok 10500, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name	Nationality	Age

Mr. Nikhil Kanai Yalal Shah	Indian	25
Mr. Dharmesh Mahendra Gosalia	Indian	25
Ms. Apicha Saengmee	Thai	39

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Nikhil Kanai Yalal Shah is the Managing Director.

He is Indian nationality with the age of 25 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing of diamonds and precious stone.

IMPORT

The products are imported from India and Belgium.

SALES

100% of the products is sold locally by wholesale to traders and manufacturers.

SUBSIDIARY AND AFFILIATED COMPANY

The subject is not found to have any subsidiary nor 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 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

Banker’s name was not disclosed.

EMPLOYMENT

The subject employs 2 staff.

LOCATION DETAILS

The premise is rented for administrative office at the heading address. Premise is located in a prime commercial area.

COMMENT

Declined consumption of luxury goods including jewelry products in local market has caused with slow sales of diamond and precious stones. Economic slowdown and uncertainty has affected to consumers in spending money because of impressive sentiment and unconfident with the situations.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 2,000,000 divided into 20,000 shares of Bht. 100 each.

On August 26, 2005, the capital was increased to Bht. 4,000,000 divided into 40,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at

April 30, 2007]

NAME	HOLDING	%

Ms. Nongnit Puengsa-ard Nationality: Thai Address : 42 Onnuch Rd., Suanluang, Bangkok	10,200	25.50
Mr. Sompop Rattana Nationality: Thai Address : 223/273 Moo 2, Bangprieng, Bangbor, Samutprakarn	10,200	25.50
Mr. Nikhil Kanai Yalal Shah Nationality: Indian Address : 160/406 Silom Rd., Suriyawongse, Bangrak, Bangkok	10,000	25.00
Mr. Kanai Yalal Shah Nationality: Indian Address : 160/406 Silom Rd., Suriyawongse, Bangrak, Bangkok	2,600	6.50
Mr. Mugesh K. Shah Nationality: Indian Address : 160/406 Silom Rd., Suriyawongse, Bangrak, Bangkok	2,500	6.25
Mrs. Sarojben K. Shah Nationality: Indian Address : 160/406 Silom Rd., Suriyawongse, Bangrak, Bangkok	2,500	6.25
Mr. Dharmesh Mahendra Gosalia Nationality: Indian Address : 160/406 Silom Rd., Suriyawongse, Bangrak, Bangkok	2,000	5.00

Total Shareholders : 7

NAME OF AUDITOR & CERTIFIED PUBLIC

ACCOUNTANT NO.

Mrs. Wassana Tanmongkol No. 1888

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2006 & 2005 were:

ASSETS

Current Assets	2006	2005

Cash in hand & at Bank	306,140.58	918,135.57
Trade Accts. Receivable	5,173,932.55	3,425,356.95
Inventories	1,934,488.48	4,036,168.77
Other Current Assets	2,032,209.69	226,642.29
Total Current Assets	9,446,771.30	8,606,303.58
Total Assets	9,446,771.30	8,606,303.58

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2006	2005

Trade Accts. Payable	5,598,851.09	4,356,250.39
Other Current Liabilities	12,650.00	35,923.42
Total Current Liabilities	5,611,501.09	4,392,173.81
Total Liabilities	5,611,501.09	4,392,173.81

Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 40,000 shares	4,000,000.00	4,000,000.00
Capital Paid	4,000,000.00	4,000,000.00
Retained Earning - Unappropriated	[164,729.79]	214,129.77
Total Shareholders' Equity	3,835,270.21	4,214,129.77
Total Liabilities & Shareholders' Equity	9,446,771.30	8,606,303.58

PROFIT & LOSS ACCOUNT

Revenue	2006	2005

Sales	12,253,805.82	13,955,984.42
Gain on Exchange Rate	69,615.48	2,957.11
Other Income	10,000.00	-
Total Revenues	12,333,421.30	13,958,941.53
Expenses

Cost of Goods Sold	11,265,067.73	12,603,380.51
Selling & Administrative Expenses	1,445,391.01	1,144,157.49
Total Expenses	12,710,458.74	13,747,538.00
Profit / [Loss] Before Income Tax	[377,037.44]	211,403.53
Income Tax	[1,822.12]	[42,318.42]
Net Profit / [Loss]	[378,859.56]	169,085.11

FINANCIAL ANALYSIS

Annual Growth & Profitability

Annual Growth

2006

2005

Net Sales

[12.20]

Operating Profit

[303.12]

Net Profit

[324.06]

Total Assets

9.77

Profitability

Cost of Good Sold

91.93

90.31

Operating Profit Margin

[3.08]

1.51

S & A Expenses

11.80

8.20

Other Revenues

0.65

0.02

Net Profit Margin

[3.09]

1.21

Earning Per Shares

[9.47]

4.23

No. of Shares

40,000

Net Sales was decreased by 12.20%, Operating Profit was decreased by 303.12%, Net Profit was decreased by 324.06%, Total Assets was increased by 9.77%.

Compare each cost with sales, Cost of Good Sold was increased from 90.31% to 91.93%, Operating Profit Margin was decreased from 1.51% to -3.08%, S & A Expenses was increased from 8.20% to 11.80%, Other Revenues was increased from 0.02% to 0.65%, Net Profit Margin was decreased from 1.21% to -3.09%,

Earning Per Shares was decreased from 4.23 baht per share to -9.47 baht per share.

Liquidity

2006

2005

Current Ratio

1.68

1.96

Quick-Assets Ratio

0.98

0.99

Current Ratio was decreased from 1.96 to 1.68, show Current Assets can cover Current Liabilities, Liquidity Ratio of the company was good, Quick-Assets Ratio was decreased from 0.99 to 0.98, capacity to pay Short Term Loan was not good, because Current Assets without Inventory can not cover Current Liabilities.

Leverage

2006

2005

D/E Ratio

1.46

1.04

D/E Ratio was increased from 1.04 to 1.46, show the company had fund from Loan more than fund from Equity, investment risked of the company is medium.

Efficiency

2006

2005

Total Assets Turnover

1.30

1.62

Return on Assets

[4.01]

1.96

Return on Equity

[9.88]

4.01

Day's Payable

164.49

112.37

Day’s Inventories

56.83

104.11

Day’s Receivables

152.00

88.36

Total Assets Turnover was decreased from 1.62 times to 1.30 times, show the company could not use Assets so efficiently, Return on Assets was decreased from 1.96 to -4.01, Return on Equity was decreased from 4.01 to -9.88, capacity to use Assets to make profit was not good.

Day's Payable was increased from 113 days to 165 days, while Day’s Inventories was decreased from 105 days to 57 days, but Day’s Receivables was increased from 89 days to 153 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.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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