MIRA INFORM REPORT

Report Date :

01.10.2011

IDENTIFICATION DETAILS

Name :	HOMEBUILDERS PRODUCTION CO., LTD.
Registered Office :	1768 Bangna-Trad Road, Bangna, Bangkok 10260
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	10.09.2002
Com. Reg. No.:	0105545094830
Legal Form :	Private Limited Company
Line of Business :	Importer, Distributor & Service Provider of Building Materials

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 :	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

Company name

HOMEBUILDERS PRODUCTION CO., LTD.

SUMMARY

BUSINESS ADDRESS : 1768 BANGNA-TRAD ROAD,

BANGNA, BANGKOK 10260, THAILAND

TELEPHONE : [66] 2361-3782-3

FAX : [66] 2361-3781

E-MAIL ADDRESS : homebuilders123@gmail.com

info@homebuilders.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

HEAD OFFICE ADDRESS : 22 Moo 8 Pinklao-Nakonchaisri Rd., Kweang Salathammasop, Thaweewattana, Bangkok Thailand 10170, Thailand

ESTABLISHED : 2002

REGISTRATION NO. : 0105545094830

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. RACHANE PANDAY, THAI

MANAGING DIRECTOR

NO. OF STAFF : 50

LINES OF BUSINESS : BUILDING MATERIALS

IMPORTER, DISTRIBUTOR & SERVICE PROVIDER

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 September 10, 2002 as a private limited company under the registered name HOMEBUILDERS PRODUCTION CO., LTD., by Thai groups. Its business objective is to supply building material, as well as providing installation service. It currently employs approximate 50 staff.

The subject’s registered address was initially located at 42/4 Moo 10, Bangna-Trad K.M. 4, Bangna, Bangkok 10260.

In 2009, its registered address was changed from “42/4 Moo 10” to “1768” by the Government district office, actually both are the same location. This is also the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Rachane Panday	Thai	57
Mrs. Nimala Panday	Thai	40

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Rachane Panday is the Managing Director.

He is Thai nationality with the age of 57 years old.

BUSINESS OPERATIONS

The subject is engaged in housing and building business, divided into 3 main divisions as follows:

· Design, consult and construct all type of standard houses, with American design concept, specialized in spa and resort.

· Import and distribute major brands of building materials from U.S.A. Its products are OSB boards, felt paper, asphalt shingles, Cedar shingles, slate tiles roof, gable vents, ridge vents and etc., for roof systems, wooden and door, wood clad window and door, etc., under various brand names “VELUX SKYLIGHTS”, “LP BUILDING PRODUCTS”, “HAL INDUSTRIES”, “PABCO INDUSTRIES”, “CLARK CEDAR”, “KCAN PLASTIC PRODUCTS”, “ROYAL BUILDING PRODUCTS”, “TAPCO INTERNATIONAL” and etc.

· Roof division: roofing system, such as galvanized light metal gauge truss under the brand SUPER TRUSS, as well as roof deck, moisture barrier and choice of asphalt shingles or cedar shingles or shakes or slate rooffings.

PURCHASE

Its products are purchased from suppliers both domestic and overseas, mainly in U.S.A., Italy and Australia.

MAJOR SUPPLIERS

Tegola Canadese Spa. : Italy

Velux International Inc. : U.S.A.

Palmex International Inc. : U.S.A.

Centor Australia Pty. Ltd. : Australia

SALES

100% of the products is sold and serviced locally to traders, contractors and end-users.

RELATED AND AFFILIATED COMPANY

Wintek Window & Doors Co., Ltd.

Business Type : Importer and distributor of window & door products.

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 30-60-90 days.

Local bills are paid by cash or on the credits term of 30-60 days.

Imports are by T/T.

BANKING

Bangkok Bank Public Co., Ltd.

The Siam Commercial Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 50 staff.

LOCATION DETAILS

The premise is owned for administrative office and showroom at the heading address. Premise is located in commercial/residential area.

REMARK

MAXIMUM CREDIT SHOULD BE GRANTED AT US$ 500,000.

COMMENT

The subject’s business performance in 2010 was moderate with an increase in sales revenue comparing to the previous year. With an improvement of economy and construction industries, the subject’s business outlook has a bright prospect.

FINANCIAL INFORMATION

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

The capital was increased later as follows:

Bht. 2,000,000 on August 29, 2003

Bht. 4,000,000 on August 21, 2007

The latest registered 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, 2011]

NAME	HOLDING	%
Mr. Rachane Panday Nationality: Thai Address : 211/4 Daokang Rd., Vajira, Dusit, Bangkok	39,994	99.99
Mr. Pichit Daengngam Nationality: Thai Address : 3609/164 Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok	1
Mr. Sarayuth Kwanmuang Nationality: Thai Address : 3609/164 Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok	1
Mr. Sompong Charoenpaet Nationality: Thai Address : 66 Moo 2, Banmai, Pakpanang, Nakornsrithammarat	1	= 0.01
Mr. Sunthorn Chamderm Nationality: Thai Address : 67/2 Moo 3, Banmai, Pakpanang, Nakornsrithammarat	1
Mr. Amornchai Voramitanand Nationality: Thai Address : 60/2 Moo 14, Sukhumvit 62 Rd., Bangchak, Prakanong, Bangkok	1
Mr. Varanchai Kaewnurak Nationality: Thai Address : 97 Moo 2, Petchkasem Rd., Kuannieng, Songkhla	1

Total Shareholders : 7

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Sakda Sawadpaibultawee No. 6223

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2010	2009
Cash in Hand & at Bank	3,007,432.25	3,060,270.88
Trade Accounts Receivable	4,941,115.69	6,005,246.40
Inventories	23,017,993.77	21,434,488.91
Other Current Assets	10,317,169.82	10,230,142.07
Total Current Assets	41,283,711.53	40,730,148.26
Fixed Assets	6,708,439.72	5,519,338.55
Other Assets	631,321.00	445,421.00
Total Assets	48,623,472.25	46,694,907.81

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Trade Accounts Payable	2,665,689.35	2,104,267.18
Current Portion of Hire-purchase Contract Payable	330,638.87	239,001.82
Accrued Expenses	2,883,988.64	3,515,684.89
Other Current Liabilities	5,539,049.10	5,576,092.18
Total Current Liabilities	11,419,365.96	11,435,046.07
Long-term Loan from Related Person	15,530,018.75	15,890,505.25
Hire-purchase Contract Payable	345,332.74	751,132.44
Total Liabilities	27,294,717.45	28,076,683.76
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	17,328,754.80	14,618,224.05
Total Shareholders' Equity	21,328,754.80	18,618,224.05
Total Liabilities & Shareholders' Equity	48,623,472.25	46,694,907.81

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales	45,465,151.69	32,934,470.37
Service Income	2,817,314.41	2,720,898.85
Construction Income	31,963,678.34	38,609,313.36
Rental Income	649,000.00	488,000.00
Electricity & Water Income	71,326.13	36,786.74
Other Income	105,433.62	360,633.98
Total Revenues	81,071,904.19	75,150,103.30
Expenses
Cost of Goods Sold & Service	61,208,720.81	54,510,512.87
Selling & Service Expenses	4,657,867.23	5,173,241.82
Administrative Expenses	10,933,806.78	10,183,777.61
Total Expenses	76,800,394.82	69,867,532.30
Profit / [Loss] before Financial Cost & Income Tax	4,271,509.37	5,282,571.00
Financial Cost	[735,052.61]	[828,769.77]
Income Tax	[825,926.01]	[1,091,958.07]
Net Profit / [Loss]	2,710,530.75	3,361,843.16

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	3.62	3.56
QUICK RATIO	TIMES	0.70	0.79
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	12.06	13.54
TOTAL ASSETS TURNOVER	TIMES	1.66	1.60
INVENTORY CONVERSION PERIOD	DAYS	137.26	143.52
INVENTORY TURNOVER	TIMES	2.66	2.54
RECEIVABLES CONVERSION PERIOD	DAYS	22.29	29.32
RECEIVABLES TURNOVER	TIMES	16.37	12.45
PAYABLES CONVERSION PERIOD	DAYS	15.90	14.09
CASH CONVERSION CYCLE	DAYS	143.66	158.76
PROFITABILITY RATIO
COST OF GOODS SOLD	%	75.66	72.92
SELLING & ADMINISTRATION	%	13.52	13.62
INTEREST	%	0.91	1.11
GROSS PROFIT MARGIN	%	24.55	27.61
NET PROFIT MARGIN BEFORE EX. ITEM	%	5.28	7.07
NET PROFIT MARGIN	%	3.35	4.50
RETURN ON EQUITY	%	12.71	18.06
RETURN ON ASSET	%	5.57	7.20
EARNING PER SHARE	BAHT	67.76	84.05
LEVERAGE RATIO
DEBT RATIO	TIMES	0.56	0.60
DEBT TO EQUITY RATIO	TIMES	1.28	1.51
TIME INTEREST EARNED	TIMES	5.81	6.37
ANNUAL GROWTH
SALES GROWTH	%	8.22
OPERATING PROFIT	%	(19.14)
NET PROFIT	%	(19.37)
FIXED ASSETS	%	21.54
TOTAL ASSETS	%	4.13

PROFITABILITY RATIO

Gross Profit Margin	24.55	Impressive	Industrial Average	9.72
Net Profit Margin	3.35	Impressive	Industrial Average	0.83
Return on Assets	5.57	Impressive	Industrial Average	1.72
Return on Equity	12.71	Impressive	Industrial Average	4.52

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 24.55%. When compared with the industry average, the ratio of the company was higher, this indicated that company was more profitable than the same industry.

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 3.35%, 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 5.57%, 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.

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 12.71%, 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	3.62	Impressive	Industrial Average	1.61
Quick Ratio	0.70
Cash Conversion Cycle	143.66

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 3.62 times in 2010, increase from 3.56 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 0.7 times in 2010, decrease from 0.79 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 144 days.

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

Current Ratio Downtrend

LEVERAGE RATIO

Debt Ratio	0.56	Impressive	Industrial Average	0.64
Debt to Equity Ratio	1.28	Satisfactory	Industrial Average	1.71
Times Interest Earned	5.81	Impressive	Industrial Average	0.99

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 5.82 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 0.56 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 Downtrend

ACTIVITY RATIO

Fixed Assets Turnover	12.06	Impressive	Industrial Average	6.74
Total Assets Turnover	1.66	Satisfactory	Industrial Average	2.14
Inventory Conversion Period	137.26
Inventory Turnover	2.66	Acceptable	Industrial Average	4.37
Receivables Conversion Period	22.29
Receivables Turnover	16.37	Impressive	Industrial Average	5.07
Payables Conversion Period	15.90

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

Fixed Assets Turnover Downtrend

Total Assets Turnover Downtrend

Inventory Turnover Downtrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.92
UK Pound	1	Rs.76.52
Euro	1	Rs.66.64

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.