MIRA INFORM REPORT

Report Date :

04.12.2012

IDENTIFICATION DETAILS

Name :	NOBEL NC CO., LTD.
Registered Office :	24 Rama 1 Road, Rongmuang, Pathumwan, Bangkok 10330
Country :	Thailand
Financials (as on) :	31.11.2012
Date of Incorporation :	2005
Reg. No.:	0105548148051
Legal Form :	PRIVATE LIMITED COMPANY
Line of Business :	Manufacturer and Exporter of High Quality Nitrocellulose
No. of Employees :	250

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Thailand	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

thailand - ECONOMIC OVERVIEW

With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.

Source : CIA

Company Name

NOBEL NC CO., LTD.

SUMMARY

BUSINESS ADDRESS : 24 RAMA 1 ROAD, RONGMUANG, PATHUMWAN,

BANGKOK 10330

TELEPHONE : [66] 2613-7911-4, 2613-9965-6, 2613-8923-6

FAX : [66] 2214-3987, 2216-3992

E-MAIL ADDRESS : info@nitrochemical.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2005

REGISTRATION NO. : 0105548148051

TAX ID NO. : 3031982352

CAPITAL REGISTERED : BHT. 1,000,000,000

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

SHAREHOLDER’S PROPORTION : THAI : 63.25%

SINGAPOREAN : 36.75%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. PICHET VIPRAKASIT, THAI

MANAGING DIRECTOR

NO. OF STAFF : 250

LINES OF BUSINESS : HIGH QUALITY NITROCELLULOSE

MANUFACTURER AND EXPORTER

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 November 10, 2005 as a private limited company under the registered name “Nitrotech Co., Ltd.” by a joint venture between Nitro Chemical industry Co., Ltd., a member of the V.S. Group in Thailand and Inabata KK, a public company in Japan, with the business objective to manufacture high quality nitrocellulose for inks and coating production with BOI promoted, for overseas markets. On January 10, 2006, the subject’s name was changed to NOBEL NC CO., LTD. It currently employs approximately 250 staff.

The subject’s registered address is 24 Rama 1 Rd., Rongmuang, Pathumwan, Bangkok 10330, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Amphan Viprakasit		Thai	74
Mrs. Sumarat Viprakasit		Thai	70
Mr. Pichet Viprakasit	[x]	Thai	38
Mr. Eiam Eiamwananonthachai	[x]	Thai	76
Mr. Yoshiya Oda	[+]	Japanese	53
Mr. Takeshi Furuya	[+]	Japanese	43
Mr. Yasushi Akinaga		Japanese	50

AUTHORIZED PERSON

One of the mentioned directors [x] and one of the directors [+] can jointly sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Pichet Viprakasit is the Managing Director.

He is Thai nationality with the age of 38 years old.

Ms. Patarawadee Leelaphanmetha is the Logistic and Supply Chain Manager.

She is Thai nationality.

Mr. Preecha Kobkruechaipong is the Factory Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing and exporting high quality nitrocellulose for printing inks, coating and other applications such as foil and film lacquers, cosmetics, auto refinished paints and finished leathers.

Ranges and typical application areas are as follows:

Nitrogen Grade Nitrogen Range Typical Application

Low nitrogen Grade [L] 10.7-11.2% Printing inks

Medium Nitrogen Grade [M] 11.2-11.7% Printing inks and film coating

High Nitrogen Grade [H] 11.7-12.2% Wood coatings, general purpose

lacquers and automobiles

PRODUCTION CAPACITY

30,000 tons per annum

PURCHASE

Raw materials such as wood pulp and chemicals are purchased from suppliers and agents in both domestic and overseas, mainly Republic of China, Japan and Germany.

MAJOR SUPPLIER

Nitro Chemical Industry Co., Ltd. : Thailand

Inabata & Co., Ltd. : Japan

EXPORT

100% of the products is exported to Germany, France, U.K., Switzerland, Austria, Poland, Japan and Sweden.

MAJOR CUSTOMER

Univar Ltd. : U.K.

Sumbelt Chemicals Inc. : U.S.A.

Biesterfeld Spezialchemie GmbH. : Germany

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

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

Imports are by T/T.

Exports are against T/T.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 250 office staff and factory workers.

LOCATION DETAILS

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

Factory and warehouse are located at 232 Moo 1, T. Phonangdamaok, A. Sappaya, Chainat 17150. Tel.: [66] 36 585-378-9 Fax: [66] 36 585-383

COMMENT

Subject was formed in 2005 as a manufacturer and exporter of high quality of Nitrocellulose. Since its production has been started by the end of 2008, demand of the product has grown viable, due to it is the main raw material for various industries. Its business has strong potential in long term prospect.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 800,000,000 divided into 8,000,000 shares of Bht. 100 each.

On June 19, 2008, the capital was increased to Bht. 1,000,000,000 divided into 10,000,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at April 20, 2012]

NAME	HOLDING	%
Nitro Chemical Industry Co., Ltd. Nationality: Thai Address : 24 Rama 1 Rd., Rongmuang, Pathumwan, Bangkok	4,600,000	46.00
Inabata Singapore Pte. Ltd. Nationality: Singaporean Address : 78 Shenton Way, #18-00, Singapore	3,675,000	36.75
Inabata Thai Co., Ltd. Nationality: Thai Address : 14^th Floor, 191 Silom Complex Bldg., Silom, Bangrak, Bangkok	1,225,000	12.25
Mr. Taksin Viprakasit Nationality: Thai Address : 73 Taklang Rd., T. Thabthieng, A. Muang, Trang	100,000	1.00
Mr. Amphan Viprakasit Nationality: Thai Address : 24 Rama 1 Rd., Rongmuang, Pathumwan, Bangkok	100,000	1.00
Mrs. Sumarat Viprakasit Nationality: Thai Address : 24 Rama I Rd., Rongmuang, Pathumwan, Bangkok	100,000	1.00
Mr. Pichet Viprakasit Nationality: Thai Address : 24 Rama I Rd., Rongmuang, Pathumwan, Bangkok	100,000	1.00
Mr. Eiam Eiamwananonthachai Nationality: Thai Address : 240 Soi Sirinthorn 2, Bangplad, Bangkok	100,000	1.00

Total Shareholders : 8

Share Structure

[as at April 20, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	6,325,000	63.25
Foreign - Singaporean	1	3,675,000	36.75
Total	8	10,000,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Sumalee Reevarabandit No. 3970

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2011	2010
Cash and Cash Equivalents	223,546,405	150,035,020
Trade Accounts & Other Receivable	985,381,471	649,534,647
Short-term Lending	14,011,953	34,378,148
Inventories	579,790,143	400,243,655
Other Current Assets	2,757,571	4,376,656
Total Current Assets	1,805,487,543	1,238,568,126
Cash at Bank pledged as a Collateral	10,488,080	10,341,000
Investment in Subsidiary	51	51
Fixed Assets	2,595,092,510	2,680,184,617
Intangible Assets	6,932,091	7,977,825
Other Non-current Assets	2,134,400	1,131,920
Total Assets	4,420,134,675	3,938,203,539

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2011	2010
Short-term Loan from Financial Institutions	1,154,877,273	924,385,145
Trade Accounts & Other Payable	368,540,197	396,916,350
Short-term Lending from Related Company	500,000,000	300,000,000
Current Portion of Long-term Loans	337,187,500	474,375,000
Current Portion of Financial Lease Contract Liabilities	1,138,213	1,011,584
Other Current Liabilities	3,678,552	385,105
Total Current Liabilities	2,365,421,735	2,097,073,184
Long-term Lending	1,272,343,750	1,545,625,000
Financial Lease Contract Liabilities	1,542,202	1,418,218
Reserve for Employee’s Benefit	3,799,485	2,478,403
Total Liabilities	3,647,107,172	3,646,594,805
Shareholders' Equity
Share capital : Baht 100 value authorized, issued and fully paid share capital 10,000,000 shares	1,000,000,000	1,000,000,000
Capital Paid	1,000,000,000	1,000,000,000
Retained Earning - Unappropriated	[222,972,497]	[708,391,266]
Total Shareholders' Equity	777,027,503	291,608,734
Total Liabilities & Shareholders' Equity	4,420,134,675	3,938,203,539

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Sales	2,378,630,743	1,419,729,219
Gain on Exchange Rate	70,303,505	-
Other Income	4,868,842	31,433,095
Total Revenues	2,453,803,090	1,451,162,314
Expenses
Cost of Goods Sold	1,657,829,286	1,320,935,227
Selling Expenses	85,312,361	120,503,464
Administrative Expenses	83,205,435	66,207,176
Total Expenses	1,826,347,082	1,507,645,867
Profit / Loss] before Financial Expenses	627,456,008	[56,483,553]
Financial Expenses	[142,037,239]	[120,502,123]
Net Profit / [Loss]	485,418,769	[176,985,676]

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.76	0.59
QUICK RATIO	TIMES	0.52	0.40
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	0.92	0.53
TOTAL ASSETS TURNOVER	TIMES	0.54	0.36
INVENTORY CONVERSION PERIOD	DAYS	127.65	110.60
INVENTORY TURNOVER	TIMES	2.86	3.30
RECEIVABLES CONVERSION PERIOD	DAYS	151.21	166.99
RECEIVABLES TURNOVER	TIMES	2.41	2.19
PAYABLES CONVERSION PERIOD	DAYS	81.14	109.68
CASH CONVERSION CYCLE	DAYS	197.72	167.91
PROFITABILITY RATIO
COST OF GOODS SOLD	%	69.70	93.04
SELLING & ADMINISTRATION	%	7.08	13.15
INTEREST	%	5.97	8.49
GROSS PROFIT MARGIN	%	33.46	9.17
NET PROFIT MARGIN BEFORE EX. ITEM	%	26.38	(3.98)
NET PROFIT MARGIN	%	20.41	(12.47)
RETURN ON EQUITY	%	62.47	(60.69)
RETURN ON ASSET	%	10.98	(4.49)
EARNING PER SHARE	BAHT	48.54	(17.70)
LEVERAGE RATIO
DEBT RATIO	TIMES	0.83	0.93
DEBT TO EQUITY RATIO	TIMES	4.69	12.51
TIME INTEREST EARNED	TIMES	4.42	(0.47)
ANNUAL GROWTH
SALES GROWTH	%	67.54
OPERATING PROFIT	%	(1,210.86)
NET PROFIT	%	374.27
FIXED ASSETS	%	(3.17)
TOTAL ASSETS	%	12.24

ROFITABILITY RATIO

Gross Profit Margin	33.46	Satisfactory	Industrial Average	36.47
Net Profit Margin	20.41	Impressive	Industrial Average	2.62
Return on Assets	10.98	Impressive	Industrial Average	3.62
Return on Equity	62.47	Impressive	Industrial Average	7.48

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 33.46%. When compared with the industry average, the ratio of the company was lower. This indicated that company was originated from the problems with control over its costs.

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 20.41%, 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 10.98%, 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 62.47%, 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 Uptrend

Return on Equity Uptrend

LIQUIDITY RATIO

Current Ratio	0.76	Risky	Industrial Average	2.81
Quick Ratio	0.52
Cash Conversion Cycle	197.72

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 0.76 times in 2011, increase from 0.59 times, then the company may not be efficiently using its current assets. 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 0.52 times in 2011, increase from 0.4 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 198 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.83	Acceptable	Industrial Average	0.71
Debt to Equity Ratio	4.69	Risky	Industrial Average	1.46
Times Interest Earned	4.42	Impressive	Industrial Average	3.86

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 4.42 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 0.83 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	0.92	Deteriorated	Industrial Average	4.81
Total Assets Turnover	0.54	Deteriorated	Industrial Average	1.89
Inventory Conversion Period	127.65
Inventory Turnover	2.86	Deteriorated	Industrial Average	5.97
Receivables Conversion Period	151.21
Receivables Turnover	2.41	Acceptable	Industrial Average	3.96
Payables Conversion Period	81.14

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.54.56
UK Pound	1	Rs.87.45
Euro	1	Rs.71.08

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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