MIRA INFORM REPORT

Report Date :

24.11.2011

IDENTIFICATION DETAILS

Name :	TRIUMPH AVIATION SERVICES ASIA LTD.
Registered Office :	700/160 Moo 1, Amata Nakorn Industrial Estate, T. Bankao, A. Panthong, Chonburi 20160
Country :	Thailand
Financials (as on) :	31.03.2011
Date of Incorporation :	08.08.2005
Com. Reg. No.:	0205548021409
Legal Form :	Private Limited Company
Line of Business :	Aircraft Engine System And Components Assembly, Maintenance, Repair And Overhaul Services
No. of Employees :	350

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
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

TRIUMPH AVIATION SERVICES ASIA LTD.

SUMMARY

BUSINESS ADDRESS : 700/160 MOO 1, AMATA NAKORN INDUSTRIAL

ESTATE, T. BANKAO, A. PANTHONG,

CHONBURI 20160, THAILAND

TELEPHONE : [66] 38 465-070

FAX : [66] 38 465-075

E-MAIL ADDRESS : rmaitam@triumphgroup.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2005

REGISTRATION NO. : 0205548021409

CAPITAL REGISTERED : BHT. 760,981,300

CAPITAL PAID-UP : BHT. 760,981,300

SHAREHOLDER’S PROPORTION : AMERICAN : 100%

FISCAL YEAR CLOSING DATE : MARCH 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. REMY JEAN MAITAM, AMERICAN

PRESIDENT

NO. OF STAFF : 350

LINES OF BUSINESS : AIRCRAFT ENGINE SYSTEM AND COMPONENTS

ASSEMBLY, MAINTENANCE, REPAIR AND

OVERHAUL SERVICES

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 August 8, 2005 as a private limited company under the registered name style TRIUMPH AVIATION SERVICES ASIA LTD., by American groups, with the business objective to provide aftermarket service for aircraft engines and components to both commercial and military aviation across the region. It currently employs approximate 350 staff.

The subject is a wholly owned subsidiary of Triumph Group Acquisition Corporation, which is a member of Triumph Group Inc., U.S.A.

The subject’s registered address is 700/160 Moo 1, Amata Nakorn Industrial Estate,

T. Bankao, A. Panthong, Chonburi 20160, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Richard C. Ill	American	68
Mr. John Michael Brasch	American	55
Mr. Remy Jean Maitam	American	53
Mr. Mosheh David Kornblatt	American	50
Ms. Somjai Thipchaichettha	Thai	82
Mr. Philip Joseph Constaintin	American	51
Ms. Nitaya Sawekkomet	Thai	30

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Remy Jean Maitam is the President.

He is American nationality with the age of 53 years old.

Ms. Somjai Thipchaichettha is the Finance Director.

She is Thai nationality with the age of 82 years old.

Mr. Philip Joseph Constaintin is the Supply Chain Purchasing Director.

He is American nationality with the age of 51 years old.

Mr. Peter Gille is the Operation & Engineering Director.

He is American nationality.

Mr. Dominique Lai is the Sales & Marketing Director.

He is American nationality.

BUSINESS OPERATIONS

The subject is engaged in specific designed, built and staffed to have the capability to provide repair and overhaul service to a broad mix of products and customers.  Its in-house capabilities include full APU diagnostics, test and certification, rotating group balancing, curvic grinding, NDT, piece part machining, paint application, sheet-metal repair and full pneumatic, electric, and fuel accessory repair and test.  

Its Capabilities:

• Auxiliary Power Units (APU) and Related Accessories (LRU)
• Engine Nacelle
• Components Including Thrust Reversers, Nose Cowls and Fan Cowls
• Accessory (LRU) Support
• Composites & bonded Airframe Structures
• Core APU & Piece Part Repairs
• Structural repairs
• Aircraft Accessories

PURCHASE

Raw materials, components and machinery are purchased from suppliers and agents both domestic and overseas, mainly in U.S.A.

MAJOR SUPPLIER

Triumph Group Inc. : U.S.A.

SERVICES

Its business is served to commercial and military aviations both local and international, mainly U.S.A., France and United Kingdom.

MAJOR CUSTOMERS

Triumph Airborne Structures Inc. : U.S.A.

Thai Airways International Public Company Limited : Thailand

Royal Thai Air Force : Thailand

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

Services are by cash or T/T 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 on negotiated terms.

Exports are against T/T.

BANKING

The banker’s name was not disclosed.

EMPLOYMENT

The subject employs approximately 350 staff.

LOCATION DETAILS

The premise is owned for administrative office and workshop at the heading address. Premise is located in industrial area.

REMARK

MAXIMUM CREDIT SHOULD BE GRANTED AT US$ 10,000,000.

COMMENT

The subject was formed to become Triumph Group's Asia-Pacific aftermarket services headquarters and one-stop service center for all of  Triumph Group's in-region MRO activity. It is able to perform higher quality repairs in less time and at lower costs. 

The subject has invested over $25 million USD in its new facility which is poised to be recognized among the finest MRO centers anywhere in the world.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 3,000,000 divided into 30,000 shares of Bht. 100 each with fully paid.

The capital was increased later as follows:

Bht. 80,860,000 on May 25, 2006

Bht. 760,981,300 on February 27, 2009

The latest registered capital was increased to Bht. 760,981,300 divided into 7,609,813 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at July 27, 2011]

NAME	HOLDING	%
Triumph Group Acquisition Corporation Nationality: American Address : 14 Par-la-Ville Rd., Hamilton, Bermuda	7,609,811	100.00
Mr. John Michael Brasch Nationality: American Address : 700/160 Moo 1, Amata Nakorn Industrial Estate, T. Bankao, A. Panthong, Chonburi	1	-
Mr. Remy Jean Maitam Nationality: American Address : 700/160 Moo 1, Amata Nakorn Industrial Estate, T. Bankao, A. Panthong, Chonburi	1	-

Total Shareholders : 3

Share Structure

[as at July 27, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	-	-	-
American	3	7,609,813	100.00
Total	3	7,609,813	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Kamolthip Lertwitvorathep No. 4377

BALANCE SHEET [BAHT]

The latest financial figures published for March 31, 2011 & 2010 were:

ASSETS

Current Assets	2011	2010
Cash in Hand & at Bank	160,699,268	21,516,045
Trade Accounts Receivable Related Company	1,267,613	9,320,067
Other Company	238,086,733	206,842,809
Total Trade Accounts Receivable - Net	239,354,346	216,162,876
Other Receivable - Related Company	30,747,753	-
Deferred Income	40,138,526	28,334,786
Inventories	930,221,737	829,924,441
Other Current Assets Advance Payment to Employees	44,544	808,944
Refundable Value Added Tax	6,204,593	4,314,301
Prepayment for Goods	2,124,548	6,233,862
Prepaid Expenses	3,323,351	2,746,025
Others	1,127,116	455,084
Total Current Assets	1,413,985,782	1,110,496,364
Fixed Assets	470,487,663	490,860,593
Intangible Assets	1,362,535	3,722,339
Total Assets	1,885,835,980	1,605,079,296

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2011	2010
Trade Accounts Payable Related Company	31,072,868	57,068,256
Other Company	176,538,292	77,057,315
Total Trade Accounts Payable	207,611,160	134,125,571
Other Payable
Related Company	-	235,036,069
Other Company	23,621,730	16,432,608
Total Other Payable	23,621,730	251,468,677
Other Current Liabilities Accrued Expenses	34,450,627	7,527,662
Accrued Commission	15,872,281	10,383,301
Advanced Income from Customer	23,120,373	14,528,354
Reserve for Cost of Service	3,713,847	5,786,113
Reserve for Goods Warranty	17,417,589	7,261,901
Deposit from Customer	3,749,739	284,735
Accrued Interest - Parent Company	16,428,970	8,466,260
Retention Payable	-	4,820,166
Other Liabilities	5,593,291	2,174,424
Total Current Liabilities	351,579,607	446,827,164
Long-term Loan from Parent Company	659,123,829	474,387,650
Total Liabilities	1,010,703,436	921,214,814
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 7,609,813 shares	760,981,300	760,981,300
Capital Paid	760,981,300	760,981,300
Retained Earning - Unappropriated	114,151,244	[77,116,818]
Total Shareholders' Equity	875,132,544	683,864,482
Total Liabilities & Shareholders' Equity	1,885,835,980	1,605,079,296

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Service Income	1,155,421,470	696,111,769
Sales	169,493,657	91,612,863
Rental Income	48,179,440	19,132,883
Other Income Commission Income	1,147,720	606,838
Gain on Exchange Rate	47,048,488	64,837,567
Others	6,843,282	42,140
Total Revenues	1,428,134,057	872,344,060
Expenses
Cost of Service	906,115,393	566,506,243
Cost of Goods Sold	147,281,149	103,946,867
Cost of Rental	42,690,373	16,606,282
Selling Expenses	59,472,887	42,378,856
Administrative Expenses	72,570,104	56,389,408
Total Expenses	1,228,129,906	785,827,656
Profit / [Loss] before Financial Cost	200,004,151	86,516,404
Financial Cost	[8,736,089]	[8,743,899]
Net Profit / [Loss]	191,268,062	77,772,505

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	4.02	2.49
QUICK RATIO	TIMES	1.34	0.60
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	2.92	1.64
TOTAL ASSETS TURNOVER	TIMES	0.73	0.50
INVENTORY CONVERSION PERIOD	DAYS	309.77	440.90
INVENTORY TURNOVER	TIMES	1.18	0.83
RECEIVABLES CONVERSION PERIOD	DAYS	63.29	93.57
RECEIVABLES TURNOVER	TIMES	5.77	3.90
PAYABLES CONVERSION PERIOD	DAYS	58.79	40.94
CASH CONVERSION CYCLE	DAYS	314.27	493.53
PROFITABILITY RATIO
COST OF GOODS SOLD	%	79.83	85.15
SELLING & ADMINISTRATION	%	9.62	12.24
INTEREST	%	0.64	1.08
GROSS PROFIT MARGIN	%	24.18	22.96
NET PROFIT MARGIN BEFORE EX. ITEM	%	14.57	10.72
NET PROFIT MARGIN	%	13.93	9.64
RETURN ON EQUITY	%	21.86	11.37
RETURN ON ASSET	%	10.14	4.85
EARNING PER SHARE	BAHT	25.13	10.22
LEVERAGE RATIO
DEBT RATIO	TIMES	0.54	0.57
DEBT TO EQUITY RATIO	TIMES	1.15	1.35
TIME INTEREST EARNED	TIMES	22.89	9.89
ANNUAL GROWTH
SALES GROWTH	%	70.18
OPERATING PROFIT	%	131.17
NET PROFIT	%	145.93
FIXED ASSETS	%	(4.15)
TOTAL ASSETS	%	17.49

PROFITABILITY RATIO

Gross Profit Margin	24.18	Satisfactory	Industrial Average	29.55
Net Profit Margin	13.93	Impressive	Industrial Average	4.62
Return on Assets	10.14	Impressive	Industrial Average	6.99
Return on Equity	21.86	Impressive	Industrial Average	12.48

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 24.18%. 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 13.93%, higher figure when 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 10.14%, 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 21.86%, 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 Downtrend

LIQUIDITY RATIO

Current Ratio	4.02	Impressive	Industrial Average	2.10
Quick Ratio	1.34
Cash Conversion Cycle	314.27

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 4.02 times in 2011, increase from 2.49 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 higher, indicated that company was an efficient operator in a dominant position within its industry.

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 1.34 times in 2011, increase from 0.6 times, although excluding inventory so the company still have good short-term financial strength.

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 315 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.54	Acceptable	Industrial Average	0.37
Debt to Equity Ratio	1.15	Risky	Industrial Average	0.63
Times Interest Earned	22.89	Impressive	Industrial Average	4.76

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 22.9 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 Downtrend

Times Interest Earned Downtrend

ACTIVITY RATIO

Fixed Assets Turnover	2.92	Acceptable	Industrial Average	4.29
Total Assets Turnover	0.73	Deteriorated	Industrial Average	1.51
Inventory Conversion Period	309.77
Inventory Turnover	1.18	Deteriorated	Industrial Average	6.04
Receivables Conversion Period	63.29
Receivables Turnover	5.77	Impressive	Industrial Average	5.34
Payables Conversion Period	58.79

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

Fixed Assets Turnover Uptrend

Total Assets Turnover Downtrend

Inventory Turnover Downtrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.25
UK Pound	1	Rs.81.23
Euro	1	Rs.69.82

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.