MIRA INFORM REPORT

Report Date :

06.08.2011

IDENTIFICATION DETAILS

Name :	SAMWHA [THAILAND] CO., LTD.
Registered Office :	66 Moo 4, T. Thakai, A. Muang, Chachoengsao 24000
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	21.11.1997
Com. Reg. No.:	0245540000933
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, exporter and distributor of electronic parts

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
Payment Behaviour :	No Complaints
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^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Thailand	b1	b1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Bottom of Form

Company name

SAMWHA [THAILAND] CO., LTD.

SUMMARY

BUSINESS ADDRESS : 66 MOO 4, T. THAKAI, A. MUANG,

CHACHOENGSAO 24000, THAILAND

TELEPHONE : [66] 38 847-571-3, 38 847-608-9

FAX : [66] 38 847-575, 38 847-616

E-MAIL ADDRESS : raungporn@samwha.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1997

REGISTRATION NO. : 0245540000933

CAPITAL REGISTERED : BHT. 216,820,800

CAPITAL PAID-UP : BHT. 216,820,800

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. SEUNG NAM KIM, KOREAN

MANAGING DIRECTOR

NO. OF STAFF : 120

LINES OF BUSINESS : ELECTRONIC PARTS

MANUFACTURER, EXPORTER AND DISTRIBUTOR

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : GOOD WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH GOOD PERFORMANCE

HISTORY

The subject was established on November 21, 1997 as a private limited company under the name style SAMWHA [THAILAND] CO., LTD. by Korean groups, with the business objective manufacture electronic parts for both local and overseas markets. It currently employs approximate 120 staff.

It has been granted promotional privilege investment by the Board of Investment [BOI] for high voltage and air-condition production under the certificated no. 1389/2543 and 1483/2545 respectively.

The subject is a subsidiary of Samwha Capacitor Ltd., Korea.

The subject’s registered address is 66 Moo 4, T. Thakai, A. Muang, Chachoengsao 24000, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Seung Nam Kim	[x]	Korean	45
Mr. Huang Ho Jin		Korean	61

AUTHORIZED PERSON

Only the mentioned director [x] can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Seung Nam Kim is the Managing Director.

He is Korean nationality with the age of 45 years old.

Mr. Hong Sam Kim is the Factory Manager.

He is Korean nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing and distributing of electronic parts specialized in capacitors for electronics and electric appliance including ferrite core, oil capacitor, high voltage capacitor, disc ceramic capacitor, multi-layer ceramic capacitor and etc., under the product brand “SAMWHA”.

IMPORT [COUNTRIES]

Most of raw materials, parts and machinery are imported from Korea, Republic of China, Japan, Taiwan and Singapore, the remaining is purchased from local suppliers.

MAJOR SUPPLIERS

Name	Country
Samsung Electro Mechanics [Thailand] Ltd.	: Thailand
Samwha Capacitor Ltd.	: Korea

SALES [LOCAL]

50% of the products is sold locally to manufacturers and wholesalers.

EXPORT [COUNTRY]

50% of its products is exported to Korea.

MAJOR CUSTOMERS

Name	Country
Sharp Appliances [Thailand] Co., Ltd.	: Thailand
Samwha Capacitor Ltd.	: Korea
C.P.T. [Thailand] Co., Ltd.	: Thailand
Quality Trading Co., Ltd.	: Thailand
M.S. Switch Board Co., Ltd.	: Thailand
Siam 3E Co., Ltd.	: Thailand

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.

Exports are against T/T.

BANKING

Kasikornbank Public Co., Ltd.

[Head Office : 1 Kasikorn Lane, Rajburana Rd., Rajburana, Bangkok]

Bangkok Bank Public Co., Ltd.

[Head Office : 333 Silom Rd., Silom, Bangrak, Bangkok 10500]

EMPLOYMENT

The subject employs approximately 120 staff [office staff and factory workers].

LOCATION DETAILS

The premise is rented for administrative office, factory and warehouse at the heading address. Premise is located in provincial.

REMARK

MAXIMUM CREDIT SHOULD BE GRANTED AT US$ 1,000,000.

COMMENT

The giants electronic makers have been looking for local suppliers of several parts as a substitute for imports. The subject has gained its high recognition in supplying of capacitor to leading electronic manufacturers both local and overseas markets since it has commenced in Thailand.

FINANCIAL INFORMATION

The capital was registered at Bht. 7,000,000 divided into 70,000 shares of Bht. 100 each.

The capital was increased later as follows:

Bht. 19,000,000 on June 25, 1998

Bht. 38,000,000 on October 1, 1999

Bht. 76,000,000 on March 28, 2000

Bht. 106,310,000 on September 18, 2002

Bht. 148,070,200 on January 15, 2004

Bht. 216,820,800 on November 22, 2004

The latest registered capital was increased to Bht. 216,820,800 divided into 2,168,208 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at March 31, 2011]

NAME	HOLDING	%
Samwha Capacitor Ltd. Nationality: Korean Address : 124 Ladong, Dyungki-Do, Korea	2,081,997	96.02
Samwha Electronics Co., Ltd. Nationality: Korean Address : 211-4 Dyungki-Do, Korea	43,100	1.99
Samwha Electric Co., Ltd. Nationality: Korean Address : 92 Chongju-Chi - Zung-Buk, Korea	43,100	1.99
Mr. Huang Ho Jin Nationality: Korean Address : 124 Ladong, Dyungki-Do, Korea	8	-
Mr. Kwan Gee Jong Nationality: Korean Address : Dyungki-Do, Korea	1	-
Mr. Seung Nam Kim Nationality: Korean Address : 124 Ladong, Dyungki-Do, Korea	1	-
Mr. Kim Jin Ok Nationality: Korean Address : 124 Ladong, Dyungki-Do, Korea	1	-

Total Shareholders : 7

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mrs. Arunee Pibul No. 2938

BALANCE SHEET

[BAHT]

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

ASSETS

Current Assets	2010	2009
Cash in hand & at Bank	1,628,116.79	4,257,689.93
Trade Accounts Receivable	117,572,267.33	84,040,656.94
Other Receivable	4,898,565.69	13,247,389.42
Inventories	68,236,898.37	38,910,277.87
Other Current Assets	22,597,847.96	13,942,882.79
Total Current Assets	214,933,696.14	154,398,896.95
Fixed Assets	113,531,143.65	123,899,660.49
Other Assets	275,613.07	339,613.07
Total Assets	328,740,452.86	278,638,170.51

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Bank Overdraft & Short-term Loan from Bank	54,533,340.00	80,503,575.10
Trade Account Payable	114,563,202.78	74,307,737.52
Current Portion of Financial Lease Contract	357,700.86	178,830.82
Other Current Liabilities	6,508,736.15	5,435,100.74
Total Current Liabilities	175,962,979.79	160,425,244.18
Finance Lease Contract Liabilities	806,449.03	536,424.07
Total Liabilities	176,769,128.82	160,961,668.25
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 2,168,208 shares	216,820,800.00	216,820,800.00
Capital Paid	216,820,800.00	216,820,800.00
Retained Earning - Unappropriated [Deficit]	[64,849,475.96]	[99,144,297.74]
Total Shareholders' Equity	151,971,324.04	117,676,502.26
Total Liabilities & Shareholders' Equity	328,740,452.86	278,638,170.51

PROFIT & LOSS ACCOUNT

Sale	2010	2009
Sales - Export	270,350,327.66	178,912,504.14
Sales - Domestic	246,604,852.35	163,928,200.24
Service Income	10,092,570.39	9,243,443.43
Other Income	11,975,590.35	5,633,875.36
Total Sales	539,023,340.75	357,718,023.17
Expenses
Cost of Goods Sold	463,050,935.32	304,615,488.11
Cost of Service	9,492,570.39	7,193,443.43
Selling Expenses	4,546,510.65	2,963,052.53
Administrative Expenses	25,158,832.76	23,185,505.26
Total Expenses	502,248,849.12	337,957,489.33
Profit / [Loss] before Financial Expenses	36,774,491.63	19,760,533.84
Financial Expenses	[2,479,669.85]	[2,630,256.00]
Net Profit / [Loss]	34,294,821.78	17,130,277.84

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.22	0.96
QUICK RATIO	TIMES	0.71	0.63
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	4.64	2.84
TOTAL ASSETS TURNOVER	TIMES	1.60	1.26
INVENTORY CONVERSION PERIOD	DAYS	52.71	45.55
INVENTORY TURNOVER	TIMES	6.93	8.01
RECEIVABLES CONVERSION PERIOD	DAYS	81.42	87.12
RECEIVABLES TURNOVER	TIMES	4.48	4.19
PAYABLES CONVERSION PERIOD	DAYS	88.49	86.98
CASH CONVERSION CYCLE	DAYS	45.64	45.69
PROFITABILITY RATIO
COST OF GOODS SOLD	%	89.66	88.56
SELLING & ADMINISTRATION	%	5.64	7.43
INTEREST	%	0.47	0.75
GROSS PROFIT MARGIN	%	12.61	13.04
NET PROFIT MARGIN BEFORE EX. ITEM	%	6.98	5.61
NET PROFIT MARGIN	%	6.51	4.87
RETURN ON EQUITY	%	22.57	14.56
RETURN ON ASSET	%	10.43	6.15
EARNING PER SHARE	BAHT	15.82	7.90
LEVERAGE RATIO
DEBT RATIO	TIMES	0.54	0.58
DEBT TO EQUITY RATIO	TIMES	1.16	1.37
TIME INTEREST EARNED	TIMES	14.83	7.51
ANNUAL GROWTH
SALES GROWTH	%	49.69
OPERATING PROFIT	%	86.10
NET PROFIT	%	100.20
FIXED ASSETS	%	(8.37)
TOTAL ASSETS	%	17.98

PROFITABILITY RATIO

Gross Profit Margin	12.61	Acceptable	Industrial Average	18.23
Net Profit Margin	6.51	Impressive	Industrial Average	(8.55)
Return on Assets	10.43	Impressive	Industrial Average	(1.74)
Return on Equity	22.57	Impressive	Industrial Average	(2.26)

Gross Profit Margin used to assess a firm's financial health by revealing the proportion of money left over from sales 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 12.61%. When compared with the industry average, the ratio of the company was lower. This indicated that company was originated from the 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 6.51% compared with those of its average competitors in the same industry, indicated that business was an efficient operator in a dominant position within its industry.

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. Return on Assets ratio is 10.43%, 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.

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 22.57%, 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 Downtrend

Return on Equity Downtrend

LIQUIDITY RATIO

Current Ratio	1.22	Deteriorated	Industrial Average	15.59
Quick Ratio	0.71
Cash Conversion Cycle	45.64

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 1.22 times in 2010, increase from 0.96 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 0.71 times in 2010, increase from 0.63 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 46 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.54	Impressive	Industrial Average	0.64
Debt to Equity Ratio	1.16	Acceptable	Industrial Average	1.42
Times Interest Earned	14.83	Deteriorated	Industrial Average	130.32

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.

Times Interest Earned measuring a company's ability to meet its debt obligations. Ratio is 14.84 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 0.54 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 Uptrend

ACTIVITY RATIO

Fixed Assets Turnover	4.64	Deteriorated	Industrial Average	19.34
Total Assets Turnover	1.60	Impressive	Industrial Average	1.43
Inventory Conversion Period	52.71
Inventory Turnover	6.93	Deteriorated	Industrial Average	15.77
Receivables Conversion Period	81.42
Receivables Turnover	4.48	Acceptable	Industrial Average	8.86
Payables Conversion Period	88.49

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

Fixed Assets Turnover Uptrend

Total Assets Turnover Downtrend

Inventory Turnover Uptrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.80
UK Pound	1	Rs.72.86
Euro	1	Rs.63.11

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.