MIRA INFORM REPORT

Report Date :

17.12.2012

IDENTIFICATION DETAILS

Name :	K. S. JEWELRY INTERNATIONAL CO., LTD.
Registered Office :	149/35-37 Soi Anglo Plaza, Surawong Road, Suriyawongse, Bangrak, Bangkok 10500
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	21.04.1999
Reg. No.:	0105542028143 [Former: 438/2542]
Legal Form :	Private Limited Company
Line of Business :	Manufacturer and Exporter of Jewelry Products
No. of Employees :	150

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 – 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

K. S. JEWELRY INTERNATIONAL CO., LTD.

SUMMARY

BUSINESS ADDRESS : 149/35-37 SOI ANGLO PLAZA, SURAWONG ROAD,

SURIYAWONGSE, BANGRAK, BANGKOK 10500

TELEPHONE : [66] 2634-4150-5

FAX : [66] 2238-2765

E-MAIL ADDRESS : chadaporn@ksjewelry.com

klaus@ksjewelry.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1999

REGISTRATION NO. : 0105542028143 [Former: 438/2542]

TAX ID NO. : 3021007003

CAPITAL REGISTERED : BHT. 10,000,000

CAPITAL PAID-UP : BHT. 10,000,000

SHAREHOLDER’S PROPORTION : THAI : 51%

GERMAN : 49%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. KLAUS PETER STENZHORN, GERMAN

MANAGING DIRECTOR

NO. OF STAFF : 150

LINES OF BUSINESS : JEWELRY PRODUCTS

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 April 21, 1999 as a private limited company under the originally registered name “K. S. Jewelry Factory Co., Ltd.,” by Thai and German groups. On July 21, 1999 subject’s name was changed to K. S. JEWELRY INTERNATIONAL CO., LTD. The business objective is a manufacture jewelry products for exports. It currently employs approximate 150 staff.

The subject’s registered address is 149/35-37 Soi Anglo Plaza, Surawong Rd., Suriyawongse, Bangrak, Bangkok 10500, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name	Nationality	Age
Ms. Chadaporn Piyasiranont	Thai	49
Mr. Klaus Peter Stenzhorn	German	56

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Klaus Peter Stenzhorn is the Managing Director.

He is German nationality with the age of 56 years old.

Ms. Chadaporn Piyasiranont is the General Manager.

She is Thai nationality with the age of 49 years old.

BUSINESS OPERATIONS

The subject is engaged in design, manufacturing service wide range of fashionable and high precision jewelry products including gold jewelry, platinum jewelry with diamonds and precious stones, fine jewelry in 14k, 18k gold and etc.

PURCHASE

Most of raw materials such as diamonds, precious stones and accessories are imported from India, South Africa, Hong Kong and Japan, and the remaining is purchased locally.

EXPORT

100% of the products is exported to Hong Kong, United Kingdom, India, Germany, Australia, Japan, Singapore, Australia, Spain, Dubai, Italy, Switzerland, U.S.A., and Russia.

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 according to IRICO’S DATABASE for the past two years.

CREDIT

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]

EMPLOYMENT

The subject employs approximately 150 office staff and factory workers.

LOCATION DETAILS

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

Factory II : 149/12-13 Soi Anglo Plaza, Surawong Rd., Suriyawongse, Bangrak,

Bangkok 10500.

COMMENT

The subject was formed in 1999 as a manufacturer and exporter of gold and platinum jewelry setting with diamond and gem stones. The products are for export markets. Subject reported strong sales in 2011 compared to the previous year. Subject’s operating performance was brisk, as well as world market condition is improving.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 5,000,000 divided into 100 shares of Bht. 50,000 each.

On February 28, 2000, the capital was increased to Bht. 10,000,000 divided into 200 shares of Bht. 50,000 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at April 25, 2012]

NAME	HOLDING	%
Ms. Chadaporn Piyasiranont Nationality: Thai Address : 149/13 Surawong Rd., Suriyawongse, Bangrak, Bangkok	101	50.50
Mr. Klaus Peter Stenzhorn Nationality: German Address : 19/1 Soi Yen-arkart 1, Thungmahamek, Yannawa, Bangkok	98	49.00
Mr. Sachanai Puakiatsakul Nationality: Thai Address : 1193 Phaholyothin Rd., Samsennai, Phyathai, Bangkok	1	0.50

Total Shareholders : 3

Share Structure

[as at April 25, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	2	102	51.00
Foreign - German	1	98	49.00
Total	3	200	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mrs. Varaporn Chaintavaralak No.3252

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2011	2010
Cash in Hand & at Bank	1,702,410.65	2,345,125.97
Trade Accounts & Other Receivable	107,059,089.49	84,938,654.17
Inventories	119,698,736.67	98,289,017.95
Other Current Assets	969,598.56	1,648,918.02
Total Current Assets	229,429,835.37	187,261,216.11
Long-term Lending	1,166,259.23	2,554,119.79
Fixed Assets	25,788,243.47	30,639,783.69
Intangible Assets	646,915.43	668,854.60
Other Non-current Assets	1,299,070.00	1,323,685.65
Total Assets	258,330,323.50	222,447,659.84

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2011	2010
Bank Overdraft	7,673,514.64	-
Trade Accounts & Other Payable	118,335,500.84	112,417,687.88
Current Portion of Long-term Loan	7,797,319.08	3,029,630.00
Accrued Income Tax	3,472,136.69	3,427,284.99
Other Current Liabilities	614,774.44	548,823.24
Total Current Liabilities	137,893,245.69	119,423,426.11
Long-term Loan - Net of Current Portion	23,877,039.25	16,522,107.66
Other Non-current Liabilities	40,000.00	40,000.00
Total Liabilities	161,810,284.94	135,985,533.77
Shareholders' Equity
Share capital : Baht 50,000 par value authorized, issued and fully paid share capital 200 shares	10,000,000.00	10,000,000.00
Capital Paid	10,000,000.00	10,000,000.00
Retained Earning - Unappropriated	86,520,038.56	76,462,126.07
Total Shareholders' Equity	96,520,038.56	86,462,126.07
Total Liabilities & Shareholders' Equity	258,330,323.50	222,447,659.84

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Sales	310,699,708.52	269,476,783.18
Service Income	671,525.79	517,442.00
Other Income
Income from Management & Other Service	600,000.00	960,000.00
Rental Income	240,000.00	240,000.00
Interest Income	133,277.74	252,466.25
Gain from Exchange Rate	907,057.44	3,380,670.01
Others	6,796.28	1,564.98
Total Revenues	313,258,365.77	274,828,926.42
Expenses
Cost of Goods Sold & Services	248,632,960.49	213,045,036.29
Selling Expenses	15,046,562.61	16,614,823.82
Administrative Expenses	33,884,286.52	31,817,600.18
Total Expenses	297,563,809.62	261,477,460.29
Profit before Financial Cost & Income Tax	15,694,556.15	13,351,466.13
Financial Cost	[964,899.66]	[692,143.65]
Profit before Income Tax	14,729,656.49	12,659,322.48
Income Tax	[4,671,744.00]	[4,587,868.01]
Net Profit / [Loss]	10,057,912.49	8,071,454.47

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.66	1.57
QUICK RATIO	TIMES	0.79	0.73
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	12.08	8.82
TOTAL ASSETS TURNOVER	TIMES	1.21	1.21
INVENTORY CONVERSION PERIOD	DAYS	175.72	168.39
INVENTORY TURNOVER	TIMES	2.08	2.17
RECEIVABLES CONVERSION PERIOD	DAYS	125.40	114.72
RECEIVABLES TURNOVER	TIMES	2.91	3.18
PAYABLES CONVERSION PERIOD	DAYS	173.72	192.60
CASH CONVERSION CYCLE	DAYS	127.40	90.52
PROFITABILITY RATIO
COST OF GOODS SOLD	%	79.79	78.84
SELLING & ADMINISTRATION	%	15.70	17.92
INTEREST	%	0.31	0.26
GROSS PROFIT MARGIN	%	20.74	22.86
NET PROFIT MARGIN BEFORE EX. ITEM	%	5.04	4.94
NET PROFIT MARGIN	%	3.23	2.99
RETURN ON EQUITY	%	10.42	9.34
RETURN ON ASSET	%	3.89	3.63
EARNING PER SHARE	BAHT	100.58	80.71
LEVERAGE RATIO
DEBT RATIO	TIMES	0.63	0.61
DEBT TO EQUITY RATIO	TIMES	1.68	1.57
TIME INTEREST EARNED	TIMES	16.27	19.29
ANNUAL GROWTH
SALES GROWTH	%	15.31
OPERATING PROFIT	%	17.55
NET PROFIT	%	24.61
FIXED ASSETS	%	(15.83)
TOTAL ASSETS	%	16.13

PROFITABILITY RATIO

Gross Profit Margin	20.74	Impressive	Industrial Average	15.83
Net Profit Margin	3.23	Impressive	Industrial Average	0.22
Return on Assets	3.89	Impressive	Industrial Average	0.24
Return on Equity	10.42	Impressive	Industrial Average	0.39

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 20.74%. 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 3.23%, 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 3.89%, 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 10.42%, 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	1.66	Satisfactory	Industrial Average	1.69
Quick Ratio	0.79
Cash Conversion Cycle	127.40

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 1.66 times in 2011, increased from 1.57 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 0.79 times in 2011, increased from 0.73 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 128 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.63	Acceptable	Industrial Average	0.56
Debt to Equity Ratio	1.68	Risky	Industrial Average	1.31
Times Interest Earned	16.27	Impressive	Industrial Average	0.96

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 16.27 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 0.63 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	12.08	Impressive	Industrial Average	4.89
Total Assets Turnover	1.21	Satisfactory	Industrial Average	1.36
Inventory Conversion Period	175.72
Inventory Turnover	2.08	Impressive	Industrial Average	2.04
Receivables Conversion Period	125.40
Receivables Turnover	2.91	Satisfactory	Industrial Average	3.46
Payables Conversion Period	173.72

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.54.39
UK Pound	1	Rs.87.78
Euro	1	Rs.71.29

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.