MIRA INFORM REPORT

Report Date :

23.09.2011

IDENTIFICATION DETAILS

Name :	FICO CORPORATION CO., LTD.
Formerly Known As :	FENATEX INTERNATIONAL CO., LTD.
Registered Office :	9^th-10^th Floor, Fico Place Building, 18/8 Sukhumvit 21 Road, Klongtoeynua, Wattana, Bangkok 10110
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	17.02.1994
Com. Reg. No.:	0735537000419
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Distributor of Industrial Machinery and Equipment

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

FICO CORPORATION CO., LTD.

[FORMER : FENATEX INTERNATIONAL CO., LTD.]

SUMMARY

BUSINESS ADDRESS : 9^th-10^th FLOOR, FICO PLACE BUILDING,

18/8 SUKHUMVIT 21 ROAD, KLONGTOEYNUA,

WATTANA, BANGKOK 10110, THAILAND

TELEPHONE : [66] 2654-6999

FAX : [66] 2654-6909

E-MAIL ADDRESS : info@ficocorporation.com

REGISTRATION ADDRESS : 149/122-123 MOO 13, T. OMNOI, A. KRATHUMBAN,

SAMUTSAKARN

ESTABLISHED : 1994

REGISTRATION NO. : 0735537000419 [Former : NOR THOR. 1267]

CAPITAL REGISTERED : BHT. 400,000,000

CAPITAL PAID-UP : BHT. 400,000,000

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. KRIS SRICHAWALA, THAI

MANAGING DIRECTOR

NO. OF STAFF : 300

LINES OF BUSINESS : INDUSTRIAL MACHINERY AND EQUIPMENT

IMPORTER, 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 February 17, 1994 as a private limited company under the registered name “Lasser [Thailand] Co., Ltd.”, by Thai-Indian group, Srichawala family, with the business objective initially to distribute and supply machinery and equipment for textile industry. Later, its business was expanded to international trading and property business.

On November 16, 2000, the subject’s name was changed to “Fenatex International Co., Ltd.”, and finally changed to FICO CORPORATION CO., LTD., on June 12, 2007. It currently employs approximate 300 staff. The subject is also a member of Fico group of companies.

The subject’s registered address is 149/122-123 Moo 13, T. Omnoi, A. Krathumban, Samutsakorn, while the current head office’s address is 9^th-10^th Flr., Fico Place Building, 18/8 Sukhumvit 21 Rd., Klongtoeynua, Wattana, Bangkok 10110.

THE BOARD OF DIRECTORS

Name	Nationality	Age
Mr. Thepharit Srichawala	Thai	55
Mr. Kris Srichawala	Thai	37
Mr. Akradej Srichawala	Thai	58
Mr. Amorn Srichawala	Thai	41

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Kris Srichawala is the Managing Director.

He is Thai nationality with the age of 37 years old.

Mr. Akradej Srichawala is the General Manager.

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

BUSINESS OPERATIONS

The subject is engaged in international trading and property business, which can be divided into 3 main businesses as follows:

• Machinery

Importing and distributing of machinery and spare parts for textile and garment

industry, such as sewing machine, embroidery machine, laser cutting machine

and etc., under various brands, “SUNSTAR”, “SWF”, “PROEL”, “ROICA”, and

“INDACI”.

• International Trading

Providing of commission agent to import and export wide range of industrial

supplies, such as yarn, fabric, plastic resin, steel scrap, paper, ferrous &

non-ferrous and etc.

• Property

The subject is an owner and rental service of office building, hotel and resort as follows:

- “Fico Place Building”, an office building rental service, located at 18/8

Sukhumvit 21 Rd., Klongtoeynua, Wattana, Bangkok 10110.

- House and resort for rent in Phuket province.

“Le Fenix Sukhumvit Hotel”, the 4 star hotel, comprising 147 rooms,

including facilities, locate at 33/33 Soi Sukhumvit 11, Sukhumvit Rd.,

Klongtoeynua, Wattana, Bangkok 10110.

PURCHASE

Most of the products are imported from Korea, Switzerland, Germany, India, Italy, Republic of China, Taiwan and Japan, and the rest is purchased locally.

MAJOR SUPPLIERS

- Lasser AG. : Switzerland

- Lasser [India] Pvt. Ltd . : India

- Sunstar Machinery Co., Ltd. : Korea

- Proel S.p.a. : Italy

SALES/SERVICES

The products are sold and serviced to both local and overseas customers in Asia and Europe.

RELATED AND AFFILIATED COMPANIES

The Fico Group of companies comprising:

- Asoke Plaza Co., Ltd. : Real estate business

- Fena Estate Co., Ltd. : Real estate business

- Fena Asset Co., Ltd. : Real estate business

- B & G Park Co., Ltd. : Real estate business

- Setafil [Thailand] Co., Ltd. : Manufacturer of textiles.

- Fico Housing Co., Ltd. : Importer & distributor of home decorative

products.

- Melcon Co., Ltd. : Distributor & installation service of electric

system

- Lingeries Branded Kyra by Kyra Co., Ltd. : Manufacturer of fashion lingerie products

- Everset World Co., Ltd. : Importer & distributor of garment

- Bischoff Gamma Co., Ltd. : Textile business

- Gamma Textile Co., Ltd. : Textile business

- Gemini Textile Co., Ltd. : Textile business

- Eschler Thai Knit Co., Ltd. : Manufacturer of fabric products

- Gemma Knit Co., Ltd. : Manufacturer of fabric products

- Fenix 4 Co., Ltd. : Restaurant

- Papadum Co., Ltd. : Restaurant

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

Bangkok Bank Public Co., Ltd.

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

Kasikornbank Public Co., Ltd.

The Siam Commercial Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 300 office staff, sales and service workers.

LOCATION DETAILS

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

Branches/Warehouses :

-149/122-123 Moo 13, T. Omnoi, A. Krathumban, Samutsakorn 74130

-33/33 Sukhumvit 11 Rd., Klongtoeynua, Wattana, Bangkok 10110

REMARK

CREDIT OF US$ 125,000 AGAINST D/A TERMS SHOULD BE IN ORDER.

COMMENT

Srichawala family is very well known and recognized as one of the most successful family businesses in Thailand. The subject imports and distributes high quality and durability products to local market. It also owns many properties including house, hotel and resort.

The subject has a substantial experience of over a decade in its business. Subject’s performances in the past years were excellent and expanding steadily. Despite slowdown in overall businesses, subject still retains a solid company.

FINANCIAL INFORMATION

The capital was registered at Bht. 20,000,000 divided into 20,000 shares of Bht. 1,000 each.

The capital was increased later as following:

Bht. 120,000,000 on June 22, 2001

Bht. 150,000,000 on January 25, 2002

Bht. 250,000,000 on July 8, 2002

Bht. 300,000,000 on April 23, 2003

Bht. 350,000,000 on April 16, 2004

Bht. 400,000,000 on September 5, 2005

The latest registered capital was increased to Bht. 400,000,000 divided into 400,000 shares of Bht. 1,000 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at April 29, 2011]

NAME	HOLDING	%
Mr. Kris Srichawala Nationality: Thai Address : 361/8 Sukhumvit 71 Rd., Prakanongnua, Wattana, Bangkok	100,000	25.00
Mr. Akradej Srichawala Nationality: Thai Address : 361/8 Sukhumvit 71 Rd., Prakanongnua, Wattana, Bangkok	80,000	20.00
Mr. Amorn Srichawala Nationality: Thai Address : 361/6 Sukhumvit 71 Rd., Prakanongnua, Wattana, Bangkok	80,000	20.00
Mr. Thepharit Srichawala Nationality: Thai Address : 361/7 Sukhumvit 71 Rd., Prakanongnua, Wattana, Bangkok	80,000	20.00
Mrs. Giranjaspal Srichawala Nationality: Thai Address : 361/8 Sukhumvit 71 Rd., Prakanongnua, Wattana, Bangkok	20,000	5.00
Mrs. Panita Srichawala Nationality: Thai Address : 361/6 Sukhumvit 71 Rd., Prakanongnua, Wattana, Bangkok	20,000	5.00

Mrs. Suchada Srichawala Nationality: Thai Address : 361/7 Sukhumvit 71 Rd., Prakanongnua, Wattana, Bangkok

20,000

5.00

Total Shareholders : 7

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Mangkorn Kanchanasay No. 3467

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2010	2009
Cash and Cash Equivalents	32,807,397.15	16,076,648.96
Trade Accounts & Notes Receivable	423,530,446.50	478,480,886.77
Inventories	31,430,061.50	49,975,685.43
Other Current Assets	128,307,800.89	100,235,683.51
Total Current Assets	616,075,706.04	644,768,904.67
Cash at Bank Pledged as a Collateral	10,210,005.38	12,000,351.23
Long-term Loan to Person or Related Company	602,812,763.98	520,075,000.00
Fixed Assets	295,866,687.76	537,080,383.59
Other Assets	52,155,329.99	57,311,962.58
Total Assets	1,577,120,493.15	1,771,236,602.07

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Bank Overdraft from Financial Institution	23,306,144.36	8,823,029.69
Trade Accounts & Notes Payable	114,152,616.00	119,117,891.63
Accrued Income Tax	759,057.35	-
Other Current Liabilities	164,964,231.52	334,254,322.92
Total Current Liabilities	303,182,049.23	462,195,244.24
Long-term Loan from Person or Related Company	146,287,591.64	50,000,000.00
Long Term Loan from Financial Institution	141,645,228.54	429,044,661.32
Other Liabilities	415,410,310.12	275,322,797.32
Total Liabilities	1,006,525,179.53	1,216,562,702.87
Shareholders' Equity
Share capital : Baht 1,000 par value authorized, issued and fully paid share capital 400,000 shares	400,000,000.00	400,000,000.00
Capital Paid	400,000,000.00	400,000,000.00
Retained Earning - Unappropriated	170,595,313.62	154,673,899.20
Total Shareholders' Equity	570,595,313.62	554,673,899.20
Total Liabilities & Shareholders' Equity	1,577,120,493.15	1,771,236,602.07

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales & Services	311,036,134.61	326,888,158.96
Other Income	90,258,241.69	91,182,489.52
Total Revenues	401,294,376.30	418,070,648.48
Expenses
Cost of Goods Sold & Services	223,086,540.75	230,565,464.40
Selling & Administrative Expenses	125,761,236.26	137,738,220.01
Total Expenses	348,847,777.01	368,303,684.41
Profit / [Loss] Before Financial Cost & Income Tax	52,446,599.29	49,766,964.07
Financial Cost	[29,128,806.24]	[31,882,650.35]
Income Tax	[7,396,378.63]	[5,903,209.64]
Net Profit / [Loss]	15,921,414.42	11,981,104.08

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.03	1.40
QUICK RATIO	TIMES	1.51	1.07
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	1.05	0.61
TOTAL ASSETS TURNOVER	TIMES	0.20	0.18
INVENTORY CONVERSION PERIOD	DAYS	51.42	79.11
INVENTORY TURNOVER	TIMES	7.10	4.61
RECEIVABLES CONVERSION PERIOD	DAYS	497.01	534.27
RECEIVABLES TURNOVER	TIMES	0.73	0.68
PAYABLES CONVERSION PERIOD	DAYS	186.77	188.57
CASH CONVERSION CYCLE	DAYS	361.67	424.81
PROFITABILITY RATIO
COST OF GOODS SOLD	%	71.72	70.53
SELLING & ADMINISTRATION	%	40.43	42.14
INTEREST	%	9.37	9.75
GROSS PROFIT MARGIN	%	57.29	57.36
NET PROFIT MARGIN BEFORE EX. ITEM	%	16.86	15.22
NET PROFIT MARGIN	%	5.12	3.67
RETURN ON EQUITY	%	2.79	2.16
RETURN ON ASSET	%	1.01	0.68
EARNING PER SHARE	BAHT	39.80	29.95
LEVERAGE RATIO
DEBT RATIO	TIMES	0.64	0.69
DEBT TO EQUITY RATIO	TIMES	1.76	2.19
TIME INTEREST EARNED	TIMES	1.80	1.56
ANNUAL GROWTH
SALES GROWTH	%	(4.85)
OPERATING PROFIT	%	5.38
NET PROFIT	%	32.89
FIXED ASSETS	%	(44.91)
TOTAL ASSETS	%	(10.96)

PROFITABILITY RATIO

Gross Profit Margin	57.29	Impressive	Industrial Average	26.87
Net Profit Margin	5.12	Impressive	Industrial Average	(2.38)
Return on Assets	1.01	Acceptable	Industrial Average	1.46
Return on Equity	2.79	Deteriorated	Industrial Average	7.85

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 57.29%. 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 5.12%, 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. When compared with the industry average, it was lower, the company's figure is 1.01%.

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 2.79%.

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	2.03	Deteriorated	Industrial Average	30.33
Quick Ratio	1.51
Cash Conversion Cycle	361.67

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 2.03 times in 2010, increase from 1.4 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 1.51 times in 2010, increase from 1.07 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 362 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.64	Impressive	Industrial Average	0.64
Debt to Equity Ratio	1.76	Risky	Industrial Average	1.34
Times Interest Earned	1.80	Deteriorated	Industrial Average	537.76

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 1.81 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 0.64 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 Uptrend

ACTIVITY RATIO

Fixed Assets Turnover	1.05	Deteriorated	Industrial Average	23,979.62
Total Assets Turnover	0.20	Deteriorated	Industrial Average	2.05
Inventory Conversion Period	51.42
Inventory Turnover	7.10	Deteriorated	Industrial Average	24.38
Receivables Conversion Period	497.01
Receivables Turnover	0.73	Deteriorated	Industrial Average	23.77
Payables Conversion Period	186.77

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.48.82
UK Pound	1	Rs.75.48
Euro	1	Rs.66.10

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.