MIRA INFORM REPORT

Report Date :

20.04.2012

IDENTIFICATION DETAILS

Name :	DER ASIA TOURS CO., LTD.
Formerly Known As :	LTU ASIA TOURS CO., LTD.
Registered Office :	7^th Floor, Vorawat Building, 849 Silom Road, Silom, Bangrak, Bangkok 10500,
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	01.06.1988
Com. Reg. No.:	0105531039602
Legal Form :	Private Limited Company
Line of Business :	Inbound Tours and Related Services
No. of Employees :	300

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, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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

DER ASIA TOURS CO., LTD.

[FORMER : LTU ASIA TOURS CO., LTD.]

SUMMARY

BUSINESS ADDRESS : 7^th FLOOR, VORAWAT BUILDING,

849 SILOM ROAD, SILOM, BANGRAK,

BANGKOK 10500, THAILAND

TELEPHONE : [66] 2267-1202, 2267-1204

FAX : [66] 2267-1128

E-MAIL ADDRESS : info@go-vacation.com

sales@go-vacation.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1988

REGISTRATION NO. : 0105531039602

CAPITAL REGISTERED : BHT. 20,000,000

CAPITAL PAID-UP : BHT. 20,000,000

SHAREHOLDER’S PROPORTION : THAI : 51%

GERMAN : 49%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. RAYMOND GASTON HONINGS, DUTCH

MANAGING DIRECTOR

NO. OF STAFF : 300

LINES OF BUSINESS : INBOUND TOURS AND RELATED 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 June 1, 1988 as a private limited company under the originally registered name “LTU Tours Ltd.” by Thai and German groups. On May 30, 1991, its registered name was changed to “LTU International Airways [Thailand] Ltd.”, and was changed to “LTU Asia Tours Co., Ltd.”, on April 4, 1997. Finally its name was changed to DER ASIA TOURS CO., LTD., on March 1, 2007. Its business objective is to provide inbound tours and related services in Thailand. Subject currently employs approximate 300 staff.

The subject’s registered address is 7^th Flr., Vorawat Building, 849 Silom Rd., Silom, Bangrak, Bangkok 10500, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Raymond Gaston Honings	[x]	Dutch	64
Ms. Lakhana Chitsa-ngalert		Thai	36
Ms. Bhandipayaporn Kaenmanee	[-]	Thai	65
Mr. Sumeth Mingmongkolmitr		Thai	44
Mr. Patinya Senaveenin		Thai	36
Ms. Narisra Kanthawong		Thai	34
Mr. Norbert Fiebig		German	53
Mr. Michael Frese		German	62
Mr. Christoph Muller	[x]	German	42

AUTHORIZED PERSON

1. Any of the mentioned directors [x] can sign on behalf of the subject

with company’s affixed.

2. In case of touring business operation, the mentioned director [-] can sign on behalf of the subject with company’s affixed

MANAGEMENT

Mr. Raymond Gaston Honings is the Managing Director.

He is Dutch nationality with the age of 64 years old.

Mr. Christoph Muller is the Deputy Managing Director.

He is German nationality with the age of 42 years old.

Mr. Tobias Fischer is the Business Development Director.

He is German nationality.

Ms. Prawena Phukowluan is the Agent Sales Manager.

She is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in inbound tour and related services comprising hotel reservation, airline booking, passport & visa arrangement, rent a car and inbound tour operator. It mainly served to tourists from both local and overseas, such as U.S.A., Europe, Asia and Africa.

PURCHASE

100% of purchasing is from local suppliers.

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 & services are by cash or on the credit term of 30 days.

Local bills are paid by cash or on the credit term of 30 days.

BANKING

Bangkok Bank Public Co., Ltd.

The Siam Commercial Bank Public Co., Ltd.

Kasikornbank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 300 staff.

LOCATION DETAILS

The premise is rented for administrative office at the heading address. Premise is located in a prime commercial area.

Branches :

• Phuket branch, 241/29 Rat-U-Thit 200 Pee Rd., T. Patong, A. Krathu,

Phuket 83150.

• Samui branch, 160/46-47 Moo 2, Saraphi Plaza Chaweng Beach Rd., T. Bophut,

A. Koh Samui, Suratthani 84320.

• Pattaya branch, 559 Moo 10, Pratamnak Rd., South Pattaya, T. Nong-Prue,

A. Banglamung, Chonburi 20150.

• Hua Hin branch, 236/44 Soi 88/1 Petchkasem Rd., Hua Hin,

Prachuablirikhan 77110.

• Khao Lak branch, 31/3 Moo 5, Petchkasem Rd., T. Khuk Khak,

A. Takuapa, Phang-nga 82190.

• Koh Chang branch, 30/1/7 Moo 4, Baan Klong Prao Rd., Koh Chang,

Trad 23170.

• Krabi branch, 155/15 Moo 3, T. Aownang, A. Muang, Krabi 81000.

REMARK

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

COMMENT

The subject is considered as a profession inbound tour operator in which its services are variety from hotel and air ticket reservation to land operator. Subject services are for tourist group travel and incentive tour. The subject has grown in recent years as corporate motivational and marketing tool to various companies and industries.

FINANCIAL INFORMATION

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

The capital was increased later as follows:

Bht. 10,000,000 on September 4, 1996

Bht. 20,000,000 on February 17, 2005

The latest registered capital was increased to Bht. 20 million, divided into 20,000 shares of Bht. 1,000 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at March 2, 2012]

NAME	HOLDING	%
M.L. Namlarpyos Srithawach Nationality: Thai Address : 1/26 Rama 4 Rd., Phrapathomjaedee, Muang, Nakornpathom	10,195	50.97
Dertour GmbH & Co. KG Nationality: German Address : Frankfurt, Germany	9,800	49.00
Mr. Sumeth Mingmongkolmitr Nationality: Thai Address : 10/20 Trok Wad Ampawa, Banchanglor, Bangkoknoi, Bangkok	3	0.02
Ms. Lakhana Chitsa-ngalert Nationality: Thai Address : 601/45 Wangthonglang, Bangkok	2	0.01

Total Shareholders : 4

Share Structure [as at March 2, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	3	10,200	51.00
German	1	9,800	49.00
Total	4	20,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Sudwin Panyawongkhanti No. 3534

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2011	2010
Cash and Cash Equivalent	81,289,335	130,293,522
Current Portion of Investment	77,438,394	60,115,673
Trade Accounts Receivable
Other Company	97,075,237	75,423,834
Related Company	15,011,808	10,621,787
Deferred Income	58,426,605	63,421,668
Advance to Flight	22,004,680	38,620,550
Other Current Assets	8,073,204	11,177,981
Total Current Assets	359,319,263	389,675,015
Long-term Investment in Financial Institution	-	48,427,947
Fixed Assets	8,837,569	9,668,733
Intangible Assets	26,813,265	7,476,687
Loan Receivable	1,545,950	1,465,502
Other Assets	30,146,958	27,815,061
Total Assets	426,663,005	484,528,945

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2011	2010
Trade Accounts Payable	178,234,511	203,696,240
Advance from Representatives	4,048,790	4,773,629
Advance from Customer	81,275,281	86,318,105
Accrued Income Tax	5,218,646	12,345,384
Accrued Expenses	14,499,028	16,627,192
Other Current Liabilities	10,970,401	17,333,309
Total Current Liabilities	294,246,657	341,093,859
Reserve for Employees’ Benefits	4,149,000	-
Total Liabilities	298,395,657	341,093,859
Shareholders’ Equity
Share capital : Baht 1,000 par value authorized, issued and fully paid share capital 20,000 shares	20,000,000	20,000,000
Capital Paid	20,000,000	20,000,000
Retained Earnings Appropriated for Statutory Reserve	2,000,000	2,000,000
Unappropriated	106,267,348	121,435,086
Total Shareholders' Equity	128,267,348	143,435,086
Total Liabilities & Shareholders' Equity	426,663,005	484,528,945

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Services Income	1,133,285,006	1,089,990,253
Commission Income	30,320,580	30,097,260
Other Income	32,304,370	34,566,756
Total Revenues	1,195,909,956	1,154,654,269
Expenses
Cost of Services	882,135,097	848,052,069
Selling Expenses	45,163,360	44,910,091
Administrative Expenses	216,430,683	188,979,409
Total Expenses	1,143,729,140	1,081,941,569
Profit before Income Tax	52,180,816	72,712,700
Income Tax	[17,348,554]	[22,482,548]
Net Profit / [Loss]	34,832,262	50,230,152

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.22	1.14
QUICK RATIO	TIMES	0.92	0.81
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	128.23	112.73
TOTAL ASSETS TURNOVER	TIMES	2.66	2.25
INVENTORY CONVERSION PERIOD	DAYS	-	-
INVENTORY TURNOVER	TIMES	-	-
RECEIVABLES CONVERSION PERIOD	DAYS	31.27	25.26
RECEIVABLES TURNOVER	TIMES	11.67	14.45
PAYABLES CONVERSION PERIOD	DAYS	73.75	87.67
CASH CONVERSION CYCLE	DAYS	(42.48)	(62.41)
PROFITABILITY RATIO
COST OF GOODS SOLD	%	77.84	77.80
SELLING & ADMINISTRATION	%	23.08	21.46
INTEREST	%	-	-
GROSS PROFIT MARGIN	%	27.69	28.13
NET PROFIT MARGIN BEFORE EX. ITEM	%	4.60	6.67
NET PROFIT MARGIN	%	3.07	4.61
RETURN ON EQUITY	%	27.16	35.02
RETURN ON ASSET	%	8.16	10.37
EARNING PER SHARE	BAHT	1,741.61	2,511.51
LEVERAGE RATIO
DEBT RATIO	TIMES	0.70	0.70
DEBT TO EQUITY RATIO	TIMES	2.33	2.38
TIME INTEREST EARNED	TIMES	-	-
ANNUAL GROWTH
SALES GROWTH	%	3.97
OPERATING PROFIT	%	(28.24)
NET PROFIT	%	(30.65)
FIXED ASSETS	%	(8.60)
TOTAL ASSETS	%	(11.94)

PROFITABILITY RATIO

Gross Profit Margin	27.69	Impressive	Industrial Average	16.55
Net Profit Margin	3.07	Impressive	Industrial Average	(0.69)
Return on Assets	8.16	Impressive	Industrial Average	(1.21)
Return on Equity	27.16	Impressive	Industrial Average	(2.45)

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 27.69%. 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 3.07%, 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 8.16%, 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 27.16%, 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	1.22	Acceptable	Industrial Average	1.77
Quick Ratio	0.92
Cash Conversion Cycle	(42.48)

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 1.22 times in 2011, increased from 1.14 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 0.92 times in 2011, increased from 0.81 times, by excluding inventory, the company may have problems meeting current liabilities.

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 -43 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.70	Acceptable	Industrial Average	0.50
Debt to Equity Ratio	2.33	Risky	Industrial Average	0.97
Times Interest Earned	-		Industrial Average	0.07

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 0.7 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	128.23	Impressive	Industrial Average	3.25
Total Assets Turnover	2.66	Impressive	Industrial Average	1.68
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	34.43
Receivables Conversion Period	31.27
Receivables Turnover	11.67	Impressive	Industrial Average	3.02
Payables Conversion Period	73.75

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.51.89
UK Pound	1	Rs.83.18
Euro	1	Rs.68.06

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.