MIRA INFORM REPORT

Report Date :

14.12.2011

IDENTIFICATION DETAILS

Name :	AUDIXSTAR [THAILAND] CO., LTD.
Registered Office :	65 Moo 2, Bangwak Road, Klongkwang, Paseecharoen, Bangkok 10160
Country :	Thailand
Financials (as on) :	01.04.2011
Date of Incorporation :	02.04.1993
Com. Reg. No.:	0105536039724
Legal Form :	Private Limited Company
Line of Business :	Importer and Distributor of Industrial Parts, Components and Tools
No. of Employees :	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
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Thailand	B1	B1

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

Company name and address

AUDIXSTAR [THAILAND] CO., LTD.

SUMMARY

BUSINESS ADDRESS : 65 MOO 2, BANGWAK ROAD, KLONGKWANG,

PASEECHAROEN, BANGKOK 10160, THAILAND

TELEPHONE : [66] 2449-5970-1, 081 689-1384, 081 554-3681

FAX : [66] 2449-5973

E-MAIL ADDRESS : audixcon@hotmail.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1993

REGISTRATION NO. : 0105536039724

CAPITAL REGISTERED : BHT. 1,000,000

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

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : APRIL 1

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. RAVIN KANIYO, THAI

MANAGING DIRECTOR

NO. OF STAFF : 2

LINES OF BUSINESS : INDUSTRIAL PARTS, COMPONENTS AND

TOOLS

IMPORTER AND 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 April 2, 1993 as a private limited company under the registered name AUDIXSTAR [THAILAND] CO., LTD., by Thai groups, with the business objective to import and distribute heater’s parts and components, as well as wide rage of industrial tools to domestic market. It currently employs 2 staff.

The subject’s registered address is 65 Moo 2, Bangwak Rd., Klongkwang, Paseecharoen, Bangkok 10160, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Mr. Ravin Kaniyo

AUTHORIZED PERSON

The above director can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Ravin Kaniyo is the Managing Director.

He is Thai nationality with the age of 41 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing of industrial parts and components, as well as wide range of industrial tools. Its products are included heater components & parts, insulation ceramic components, ceramic, brass parts & components, jewelry tools, watchmaker tools, hobby tools, modeler tools, craftsman tools, lapidary tools, electronics tools, precision tools, engineering tools, machine tools and die tools.

MAJOR BRANDS

“ADX”, “LOMANI” and etc.

PURCHASE

Most of the products are imported from Republic of China, Taiwan and India, the remaining is purchased from local suppliers.

SALES

100% of the products is sold locally by wholesale 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 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 D/A and T/T on negotiated terms.

BANKING

The 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 commercial/residential area.

REMARK

CREDIT OF US$ 125,000 AGAINST D/A TERMS SHOULD BE ON SECURED BASIS.

COMMENT

Subject’s business performance in 2011 had significantly dropped from the previous year’s level. Its slow business had been caused by lack of interesting in its products and also the quality and brands recognition in local market are low.

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 July 30, 2011]

NAME	HOLDING	%
Mr. Ravin Kaniyo Nationality: Thai Address : 65 Moo 2, Bangwak Rd., Klongkwang, Paseecharoen, Bangkok	6,000	60.00
Mrs. Vareerat Prakijcharoenrat Nationality: Thai Address : 65 Moo 2, Bangwak Rd., Klongkwang, Paseecharoen, Bangkok	2,000	20.00
Mr. Anusorn Prakijcharoenrat Nationality: Thai Address : 65 Moo 2, Bangwak Rd., Klongkwang, Paseecharoen, Bangkok	2,000	20.00

Total Shareholders : 3

Share Structure [as at July 30, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	3	10,000	100.00
Foreign	-	-	-
Total	3	10,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Somchai Uramporn No. 1675

BALANCE SHEET [BAHT]

The latest financial figures published for April 1, 2011 & 2010 were:

ASSETS

Current Assets	2011	2010
Cash and Cash Equivalent	89,335.00	163,912.40
Inventories	7,212,350.00	7,478,677.05
Other Current Assets	34,558.88	133.01
Total Current Assets	7,336,243.88	7,642,722.46
Fixed Assets	3,444.33	6,342.19
Other Assets	12,000.00	12,000.00
Total Assets	7,351,688.21	7,661,064.65

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2011	2010
Short-term Loan from Person or Related Company	2,600,000.00	2,800,000.00
Other Current Liabilities	53,961.95	87,717.88
Total Current Liabilities	2,653,961.95	2,887,717.88
Total Liabilities	2,653,961.95	2,887,717.88
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	3,697,726.26	3,773,346.77
Total Shareholders' Equity	4,697,726.26	4,773,346.77
Total Liabilities & Shareholders' Equity	7,351,688.21	7,661,064.65

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Sales Income	2,688,077.68	14,916,954.23
Export Income	-	483,500.25
Total Revenues	2,668,077.68	15,400,454.48
Expenses
Cost of Goods Sold	2,293,310.84	13,202,843.41
Selling Expenses	25,890.66	1,264,239.40
Administrative Expenses	420,747.34	416,327.60
Total Expenses	2,739,948.84	14,883,410.41
Profit / [Loss] before Income Tax	[51,871.16]	517,044.07
Income Tax	[23,749.35]	[57,836.08]
Net Profit / [Loss]	[75,620.51]	459,207.99

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.76	2.65
QUICK RATIO	TIMES	0.03	0.06
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	780.44	2,428.25
TOTAL ASSETS TURNOVER	TIMES	0.37	2.01
INVENTORY CONVERSION PERIOD	DAYS	1,147.91	206.75
INVENTORY TURNOVER	TIMES	0.32	1.77
RECEIVABLES CONVERSION PERIOD	DAYS	-	-
RECEIVABLES TURNOVER	TIMES	-	-
PAYABLES CONVERSION PERIOD	DAYS	-	-
CASH CONVERSION CYCLE	DAYS	1,147.91	206.75
PROFITABILITY RATIO
COST OF GOODS SOLD	%	85.31	85.73
SELLING & ADMINISTRATION	%	16.62	10.91
INTEREST	%	-	-
GROSS PROFIT MARGIN	%	13.94	14.27
NET PROFIT MARGIN BEFORE EX. ITEM	%	(2.67)	3.36
NET PROFIT MARGIN	%	(2.81)	2.98
RETURN ON EQUITY	%	(1.61)	9.62
RETURN ON ASSET	%	(1.03)	5.99
EARNING PER SHARE	BAHT	(7.56)	45.92
LEVERAGE RATIO
DEBT RATIO	TIMES	0.36	0.38
DEBT TO EQUITY RATIO	TIMES	0.56	0.60
TIME INTEREST EARNED	TIMES	-	-
ANNUAL GROWTH
SALES GROWTH	%	(82.55)
OPERATING PROFIT	%	(113.90)
NET PROFIT	%	(116.47)
FIXED ASSETS	%	(45.69)
TOTAL ASSETS	%	(4.04)

PROFITABILITY RATIO

Gross Profit Margin	13.94	Acceptable	Industrial Average	25.08
Net Profit Margin	(2.81)	Deteriorated	Industrial Average	(2.52)
Return on Assets	(1.03)	Deteriorated	Industrial Average	1.21
Return on Equity	(1.61)	Deteriorated	Industrial Average	5.98

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 13.94%. When compared with the industry average, the ratio of the company was lower, 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 -2.81%. 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 -1.03%.

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 -1.61%.

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	2.76	Deteriorated	Industrial Average	21.52
Quick Ratio	0.03
Cash Conversion Cycle	1,147.91

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 2.76 times in 2011, increased from 2.65 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 0.03 times in 2011, decreased from 0.06 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 1148 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.36	Impressive	Industrial Average	0.68
Debt to Equity Ratio	0.56	Impressive	Industrial Average	1.34
Times Interest Earned	-		Industrial Average	360.66

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 0.36 less than 0.5, most of the company's assets are financed through equity.

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	780.44	Deteriorated	Industrial Average	9,288.16
Total Assets Turnover	0.37	Deteriorated	Industrial Average	1.96
Inventory Conversion Period	1,147.91
Inventory Turnover	0.32	Deteriorated	Industrial Average	19.71
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	16.45
Payables Conversion Period	-

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.53.40
UK Pound	1	Rs.83.32
Euro	1	Rs.70.44

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.