MIRA INFORM REPORT

Report Date :

03.08.2012

IDENTIFICATION DETAILS

Name :	CHEW CHOON SENG AND SON LIMITED PARTNERSHIP
Registered Office :	63/7 Soi Ramkhamhaeng 21 [Nawasri], Ramkhamhaeng Road, Pubpla, Wangthonglang, Bangkok 10310
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	1969
Com. Reg. No.:	0103512012735
Legal Form :	Limited Partnership
Line of Business :	Importer and Distributor of Industrial Products Government Bidder
No. of Employees :	10

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 :	Moderate
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^th, 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

CHEW CHOON SENG AND SON LIMITED PARTNERSHIP

SUMMARY

BUSINESS ADDRESS : 63/7 SOI RAMKHAMHAENG 21 [NAWASRI],

RAMKHAMHAENG ROAD, PUBPLA,

WANGTHONGLANG, BANGKOK 10310

TELEPHONE : [66] 2718-4523, 2718-6131, 2718-6188

FAX : [66] 2718-4524

E-MAIL ADDRESS : ccs10310@hotmail.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1969

REGISTRATION NO. : 0103512012735

TAX ID NO. : 3102134734

CAPITAL REGISTERED : BHT. 20,000,000

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

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : LIMITED PARTNERSHIP

EXECUTIVE : MR. SANTI CHIROJCHATURONT, THAI

MANAGING PARTNER

NO. OF STAFF : 10

LINES OF BUSINESS : INDUSTRIAL PRODUCTS

GOVERNMENT BIDDER, IMPORTER 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 August 6, 1969 as a limited partnership under the name style CHEW CHOON SENG AND SON LIMITED PARTNERSHIP by Thai partners, the Chirojchaturont family, with the business objective to distribute and supply wide range of industrial products to local customers, private company, states enterprises and government sectors. It currently employs 10 staff.

The subject’s registered address was initially located at 63/7 Soi Ramkhamhaeng 21 [Nawasri], Ramkhamhaeng Rd., Wangthonglang, Bangkapi, Bangkok 10310.

Later, its registered address has been changed to 63/7 Soi Ramkhamhaeng 21 [Nawasri], Ramkhamhaeng Rd., Pubpla, Wangthonglang, Bangkok 10310, by the Wangthonglang District Office, which are the same location, and this is the subject’s current operation address.

AUTHORIZED PERSON

Mr. Santi Chirojchaturont

Mr. Pakit Chirojchaturont

Any of the mentioned partners can sign on behalf of the subject with seal affixed. They also bear full financial responsibility by law.

MANAGEMENT

Mr. Santi Chirojchaturont is the Managing Partner.

He is Thai nationality with the age of 70 years old.

Mr. Pakit Chirojchaturont is the Assistant Manager.

He is Thai nationality with the age of 54 years old.

BUSINESS OPERATIONS

The subject’s core business is engaged in government and state enterprise bidding to supply wide range of products mainly are engines and tools. The subject also imports and distributes of industrial machinery, equipment, tools, safety & security equipment and general industrial products for industrial users.

PURCHASE

Most of the products are imported from Poland, Germany, Italy, France, Belgium, Spain, Republic of China, Taiwan, India, and other countries in Asia, the remaining is purchased from local suppliers and agents.

MAJOR SUPPLIERS

Huta Kosciusko S.A. : Poland

Grabener Pressensysteme GmbH : Germany

Kefid Machinery Co., Ltd. : Republic of China

SALES

90% of the products is sold and supplied locally to the states enterprises and government sectors, the remaining 10% is to manufacturers.

MAJOR CUSTOMERS

The State Railway of Thailand

The Treasury Department

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 30-60-90 days.

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

Imports are by L/C on the credit term of 90 days or T/T.

BANKING

Krung Thai Bank Public Co., Ltd.

[Suanmali branch]

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 10 staff.

LOCATION DETAILS

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

COMMENT

The subject’s reputation and recognition rest on its steadfast pursuit in quality as well as providing the highest performance and services in today’s market standards. It reported moderate business and good relationship with government sector and state enterprise with a long time services.

FINANCIAL INFORMATION

The capital was registered at Bht. 20,000,000 which was carried by 4 persons as followed:

Name Age Amount

Mr. Santi Chirojchaturont [70] Bht. 10,000,000 [Unlimited partner]

Mr. Pakit Chirojchaturont [54] Bht. 4,000,000 [Unlimited partner]

Mrs. Tassanee Chirojchaturont [68] Bht. 4,000,000

Mr. Kawin Chirojchaturont [52] Bht. 2,000,000

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mrs. Ratchanee Puechapong No. 3742

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2011	2010
Cash and Cash Equivalents	36,033,056.94	10,012,874.63
Short-term Investment	20,500,000.00	21,047,185.87
Trade Accounts & Notes Receivable	23,481,883.20	35,116,935.19
Inventories	4,109,705.08	-
Other Current Assets	941,722.12	680,861.61
Total Current Assets	85,066,367.34	66,857,857.30
Cash at Bank pledged as a Collateral	22,000,000.00	22,000,000.00
Fixed Assets	9,295,573.00	5,557,661.24
Other Assets	2,997,408.36	3,934.58
Total Assets	119,359,348.70	94,419,453.12

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2011	2010
Trade Accounts & Notes Payable	20,258,003.15	11,067,293.90
Accrued Income Tax	336,287.72	96,393.53
Other Current Liabilities	4,167,720.46	4,047,665.33
Total Current Liabilities	24,762,011.33	15,211,352.76
Loan from Partner	45,746,535.00	32,393,740.52
Loan from Related Company	25,743,617.68	26,079,867.68
Total Liabilities	96,252,164.01	73,684,960.96
Shareholders' Equity
Capital Paid	20,000,000.00	20,000,000.00
Retained Earning - Unappropriated	3,107,184.69	734,492.16
Total Shareholders' Equity	23,107,184.69	20,734,492.16
Total Liabilities & Shareholders' Equity	119,359,348.70	94,419,453.12

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Sales	58,601,241.27	42,119,663.24
Other Income	109,375.81	1,219,143.53
Total Revenues	58,710,617.08	43,338,806.77
Expenses
Cost of Goods Sold	47,106,617.67	34,344,535.56
Selling Expenses	2,294,945.74	2,758,107.19
Administrative Expenses	5,725,294.73	4,966,658.63
Total Expenses	55,126,858.14	42,069,301.38
Profit / Loss] before Financial Costs & Income Tax	3,583,758.94	1,269,505.39
Financial Costs	[181,920.69]	131,405.67
Profit / [Loss] before Income Tax	3,401,838.25	1,138,099.72
Income Tax	[1,029,145.72]	[398,098.11]
Net Profit / [Loss]	2,372,692.53	740,001.61
Retained Earning, Beginning of Year	734,492.16	[5,509.45]
Retained Earning, End of Year	3,107,184.69	734,492.16

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	3.44	4.40
QUICK RATIO	TIMES	3.23	4.35
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	6.30	7.58
TOTAL ASSETS TURNOVER	TIMES	0.49	0.45
INVENTORY CONVERSION PERIOD	DAYS	31.84	-
INVENTORY TURNOVER	TIMES	11.46	-
RECEIVABLES CONVERSION PERIOD	DAYS	146.26	304.32
RECEIVABLES TURNOVER	TIMES	2.50	1.20
PAYABLES CONVERSION PERIOD	DAYS	156.97	117.62
CASH CONVERSION CYCLE	DAYS	21.13	186.70
PROFITABILITY RATIO
COST OF GOODS SOLD	%	80.39	81.54
SELLING & ADMINISTRATION	%	13.69	18.34
INTEREST	%	0.31	0.31
GROSS PROFIT MARGIN	%	19.80	21.35
NET PROFIT MARGIN BEFORE EX. ITEM	%	6.12	3.01
NET PROFIT MARGIN	%	4.05	1.76
RETURN ON EQUITY	%	10.27	3.57
RETURN ON ASSET	%	1.99	0.78
LEVERAGE RATIO
DEBT RATIO	TIMES	0.81	0.78
DEBT TO EQUITY RATIO	TIMES	4.17	3.55
TIME INTEREST EARNED	TIMES	19.70	9.66
ANNUAL GROWTH
SALES GROWTH	%	39.13
OPERATING PROFIT	%	182.30
NET PROFIT	%	220.63
FIXED ASSETS	%	67.26
TOTAL ASSETS	%	26.41

PROFITABILITY RATIO

Gross Profit Margin	19.80	Impressive	Industrial Average	15.74
Net Profit Margin	4.05	Impressive	Industrial Average	1.55
Return on Assets	1.99	Acceptable	Industrial Average	2.93
Return on Equity	10.27	Impressive	Industrial Average	7.57

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. Gross Profit Margin is 19.8%. 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. Net Profit Margin ratio is 4.05%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient operators 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 1.99%.

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 10.27%, 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	3.44	Impressive	Industrial Average	1.63
Quick Ratio	3.23
Cash Conversion Cycle	21.13

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 3.44 times in 2011, decrease from 4.4 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 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 3.23 times in 2011, decrease from 4.35 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 22 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.81	Acceptable	Industrial Average	0.61
Debt to Equity Ratio	4.17	Risky	Industrial Average	1.59
Times Interest Earned	19.70	Impressive	Industrial Average	2.88

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 19.7 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 0.81 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	6.30	Satisfactory	Industrial Average	7.82
Total Assets Turnover	0.49	Deteriorated	Industrial Average	1.89
Inventory Conversion Period	31.84
Inventory Turnover	11.46	Impressive	Industrial Average	4.22
Receivables Conversion Period	146.26
Receivables Turnover	2.50	Acceptable	Industrial Average	4.85
Payables Conversion Period	156.97

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.55.78
UK Pound	1	Rs.86.75
Euro	1	Rs.68.32

INFORMATION DETAILS

Report Prepared by :

SDA

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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