MIRA INFORM REPORT

Report Date :

21.09.2011

IDENTIFICATION DETAILS

Name :	W.R. GRACE [THAILAND] LTD.
Registered Office :	253/2 Bangpoo Industrial Estate, Sukhumvit Road, K.M. 34, T. Praeksa, A. Muang, Samutprakarn 10270
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	25.07.1979
Com. Reg. No.:	0105522013809
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Importer & Distributor of container sealants & construction 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 :	Usually Correct
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

W.R. GRACE [THAILAND] LTD.

SUMMARY

BUSINESS ADDRESS : 253/2 BANGPOO INDUSTRIAL ESTATE,

SUKHUMVIT ROAD, K.M. 34, T. PRAEKSA,

A. MUANG, SAMUTPRAKARN 10270, THAILAND

TELEPHONE : [66] 2709-4470-84

FAX : [66] 2709-3522, 2323-1386-7

E-MAIL ADDRESS : naiyana.kulratanarak@grace.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1979

REGISTRATION NO. : 0105522013809

CAPITAL REGISTERED : BHT. 6,100,000

CAPITAL PAID-UP : BHT. 1,525,000

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MRS. TUANGTHIP PANTHANITISARN, THAI

CHIEF EXECUTIVE OFFICER [FINANCE]

NO. OF STAFF : 190

LINES OF BUSINESS : CONTAINER SEALANTS & CONSTRUCTION MATERIALS

MANUFACTURER, IMPORTER & 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 July 25, 1979 as a private limited company under the name style W.R. GRACE [THAILAND] LTD. by W.R. Grace & Co. in U.S.A., a global flexible packaging and specialty chemicals company. The company has more than 17,000 employees and customers in more than 110 countries.

The subject was a subsidiary of W.R. Grace & Co., initially incorporated to sell products imported from other locations. In 1982, the company commenced manufacturing operations at its Bangpoo manufacturing site in the Bangpoo Industrial Estate, Samutprakarn, Thailand. Here, the subject manufactures high-quality can and bottle sealing compounds and coatings for the food industry, cement additives and concrete admixtures for the construction industry. It also received ISO 9002 certification from SGS Yarsley International Certification Services Ltd., on March 24, 1997. Subject currently employs approximate 190 staff.

The subject’s registered address is 253/2 Bangpoo Industrial Estate, Sukhumvit Rd., K.M. 34, T. Praeksa, A. Muang, Samutprakarn 10270, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name		Nationality	Age
Mr. Pairach Harnravee	[x]	Thai	77
Mrs. Tuangthip Phantanitisarn	[x]	Thai	58
Mrs. Rasamee Intarathachang	[x]	Thai	51
Mr. Brian Edward Kenny		American	-

AUTHORIZED PERSON

One of the directors [x] can jointly sign with the rest director on behalf of the subject with company’s affixed.

MANAGEMENT

Mrs. Tuangthip Phantanitisarn is the Chief Executive Officer [Finance].

She is Thai nationality with the age of 58 years old.

Mrs. Rasamee Intarathachang is Chief Executive Officer [Factory].

She is Thai nationality with the age of 51 years old.

Ms. Naiyana Kulratanarat is the Human Resources & Administrative Manager.

She is Thai nationality.

Ms. Ratchanee Phongprakorn is the Purchasing Manager.

She is Thai nationality.

Mr. Pakpirat Prapasithi is the Sales Manager.

He is Thai nationality.

Mr. Pongthep Sirikulpratum is the Sales Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject’s activities are manufacturer, importer and distributor wide range of industrial chemicals, petrochemicals and construction materials, which are divided into 2 main divisions as follows:

• Grace Division

Importer and distributor of catalysts, special chemical, silica, additive chemical, and construction chemical for petroleum, plastic and industrial chemical industry, as well as sealant & coating for foods, beverages and packaging industry.

• Grace Construction Products Division

Manufacturer and distributor of cement and concrete products, consists of concrete admixtures, cement additives, architecture concrete, roofing underlayment and structure water proofing materials.

PRODUCTION

3,000 tons per annum.

IMPORT [COUNTRIES]

60% of finished products and raw material for production are imported from United States of America, Malaysia, Singapore, Indonesia, Taiwan, Japan, Germany, Republic of China and Hong Kong.

MAJOR SUPPLIERS

W.R. Grace & Co. : United States of America

W.R. Grace [Malaysia] Snd. Bhd. : Malaysia

Grace GmbH. : Germany

Grace Japan Ltd. : Japan

W.R. Grace [Singapore] Pte. Ltd. : Singapore

SALES [LOCAL]

100% of its products is sold locally to manufacturers, wholesalers and end-users.

MAJOR CUSTOMERS

SCG group of companies

TPI Polene Public Company Limited

Rayong Refinery Co., Ltd.

Bangchak Petroleum Public Company Limited

PTT group

Thai Oil Public Company Limited

Chevron group

Grand Midas Limited Partnership

PARENT COMPANY

W.R. Grace & Co.-Conn

Address : 7500 Grace Drive, Columbia, U.S.A.

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 credit term of 30-60 days.

Local bills are paid by cash or on the credits term of 30-60-90 days.

Imports are by L/C at sight or T/T.

BANKING

Bank of America NT & SA

[Bangkok Office : 2/2 Wireless Rd., Lumpini, Pathumwan, Bangkok 10330]

Bangkok Bank Public Co., Ltd.

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

EMPLOYMENT

The subject employs approximately 190 staff. [office, sales staff and factory workers]

LOCATION DETAILS

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

REMARK

MAXIMUM CREDIT SHOULD BE GRANTED AT EUR 3,000,000.

COMMENT

Today can and bottle coatings and sealants products by Grace Thailand help to insure the quality and safety of the world’s foods supply as well as cement additives and concrete admixtures manufactured from its plant are helping to strengthen the construction worldwide.

As demand for high-quality container packaging systems and construction products continues to grow throughout the Asia Pacific region, strong demand has brightened subject’s market prospect and also maintains its outstanding business.

FINANCIAL INFORMATION

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

On February 21, 1984 the capital was increased to Bht. 6,100,000 divided into 61,000 shares of Bht. 100 each.

THE SHAREHOLDERS LISTED WERE : [as at April 30, 2011] at Bht. 1,525,000 capitalization]

NAME	HOLDING	%
W.R. Grace & Co.-Conn Nationality: American Address : 7500 Grace Drive, Columbia, U.S.A.	60,994	100.00
Hanover Square Corporation Nationality: American Address : 1114 Avenue of the Americas, New York N.Y. U.S.A.	1	-
Water Street Corporation Nationality: American Address : 1114 Avenue of the Americas, New York N.Y. U.S.A.	1	-
W.R. Grace [Hong Kong] Ltd. Nationality: Chinese Address : Republic of China	1	-
W.R. Grace [Malaysia] Sdn. Bhd. Nationality: Malaysian Address : Malaysia	1	-
W.R. Grace [Singapore] Pte., Ltd. Nationality: Singaporean Address : 25 Tanjong Penjuru, Jurong, Singapore	1	-
Davy and Almy Company Nationality: American Address : 62 Massachusetts, U.S.A.	1	-

Total Shareholders : 7

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Ms. Skulna Yaemsakul No. 4906

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2010	2009
Cash in hand & at Bank	65,433,398	150,258,490
Trade Accounts Receivable - Outside Person	168,125,890	163,164,444
- Related Company	70,390,998	61,976,518
Inventories	73,000,293	54,744,013
Other Current Assets	1,444,351	2,451,374
Total Current Assets	378,394,930	432,594,839
Fixed Assets	46,781,399	46,887,227
Other Assets	76,851	238,401
Total Assets	425,253,180	479,720,467

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Trade Accounts Payable - Outside Person	126,958,499	107,043,830
- Related Company	54,044,469	44,907,765
Accrued Expenses	17,235,066	18,107,682
Accrued Income Tax	26,529,967	26,092,741
Accrued Withholding Tax	2,821,248	29,515,907
Other Current Liabilities	2,306,927	2,277,748
Total Current Liabilities	229,896,176	227,945,673
Total Liabilities	229,896,176	227,945,673
Shareholders' Equity
Share capital : Baht 100 value Authorized & issued share capital 61,000 shares	6,100,000	6,100,000
Capital Paid	1,525,000	1,525,000
Statutory Reserve	610,000	610,000
Retained Earning - Unappropriated	193,222,004	249,639,794
Total Shareholders' Equity	195,357,004	251,774,794
Total Liabilities & Shareholders' Equity	425,253,180	479,720,467

PROFIT & LOSS ACCOUNT

Sale	2010	2009
Sales	1,221,688,507	1,054,260,798
Other Income	28,361,891	22,009,728
Total Sales	1,250,050,398	1,076,270,526
Expenses
Cost of Goods Sold	859,795,165	725,293,598
Selling Expenses	196,341,829	135,836,491
Administrative Expenses	18,038,601	55,405,796
Total Expenses	1,074,175,595	916,535,885
Profit Before Income Tax	175,874,803	159,734,641
Income Tax	[52,292,593]	[47,115,722]
Net Profit / [Loss]	123,582,210	112,618,919

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.65	1.90
QUICK RATIO	TIMES	1.32	1.65
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	26.11	22.49
TOTAL ASSETS TURNOVER	TIMES	2.87	2.20
INVENTORY CONVERSION PERIOD	DAYS	30.99	27.55
INVENTORY TURNOVER	TIMES	11.78	13.25
RECEIVABLES CONVERSION PERIOD	DAYS	50.23	56.49
RECEIVABLES TURNOVER	TIMES	7.27	6.46
PAYABLES CONVERSION PERIOD	DAYS	53.90	53.87
CASH CONVERSION CYCLE	DAYS	27.32	30.17
PROFITABILITY RATIO
COST OF GOODS SOLD	%	70.38	68.80
SELLING & ADMINISTRATION	%	17.55	18.14
INTEREST	%	-	-
GROSS PROFIT MARGIN	%	31.94	33.29
NET PROFIT MARGIN BEFORE EX. ITEM	%	14.40	15.15
NET PROFIT MARGIN	%	10.12	10.68
RETURN ON EQUITY	%	63.26	44.73
RETURN ON ASSET	%	29.06	23.48
EARNING PER SHARE	BAHT	8,103.75	7,384.85
LEVERAGE RATIO
DEBT RATIO	TIMES	0.54	0.48
DEBT TO EQUITY RATIO	TIMES	1.18	0.91
TIME INTEREST EARNED	TIMES	-	-
ANNUAL GROWTH
SALES GROWTH	%	15.88
OPERATING PROFIT	%	10.10
NET PROFIT	%	9.73
FIXED ASSETS	%	(0.23)
TOTAL ASSETS	%	(11.35)

PROFITABILITY RATIO

Gross Profit Margin	31.94	Impressive	Industrial Average	25.81
Net Profit Margin	10.12	Impressive	Industrial Average	4.25
Return on Assets	29.06	Impressive	Industrial Average	4.07
Return on Equity	63.26	Impressive	Industrial Average	10.82

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 31.94%. 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 10.12%, 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 29.06%, 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 63.26%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profits 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 Uptrend

LIQUIDITY RATIO

Current Ratio	1.65	Deteriorated	Industrial Average	21.16
Quick Ratio	1.32
Cash Conversion Cycle	27.32

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 1.65 times in 2010, decrease from 1.9 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 1.32 times in 2010, decrease from 1.65 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 28 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	0.57
Debt to Equity Ratio	1.18	Acceptable	Industrial Average	1.49
Times Interest Earned	-		Industrial Average	442.32

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.

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	26.11	Deteriorated	Industrial Average	6,075.67
Total Assets Turnover	2.87	Impressive	Industrial Average	1.46
Inventory Conversion Period	30.99
Inventory Turnover	11.78	Satisfactory	Industrial Average	14.69
Receivables Conversion Period	50.23
Receivables Turnover	7.27	Satisfactory	Industrial Average	7.67
Payables Conversion Period	53.90

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

Fixed Assets Turnover Uptrend

Total Assets Turnover Uptrend

Inventory Turnover Uptrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.22
UK Pound	1	Rs.75.63
Euro	1	Rs.65.65

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.