MIRA INFORM REPORT

Report Date :

20.12.2012

IDENTIFICATION DETAILS

Name :	NUTRITION SC CO., LTD.
Registered Office :	47/2 Moo 6, Budhamonthon Sai 4 Road, T. Krathumlom, A. Sampran, Nakornpathom 73220
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	2005
Reg. No.:	0735548001641
Legal Form :	Private Limited Company
Line of Business :	Importer and Distributor of Food Additives and Ingredients
No. of Employees :	48

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 :	Good
Payment Behaviour :	Regular
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

NUTRITION SC CO., LTD.

SUMMARY

BUSINESS ADDRESS : 47/2 MOO 6, BUDHAMONTHON SAI 4 ROAD,

T. KRATHUMLOM, A. SAMPRAN,

NAKORNPATHOM 73220

TELEPHONE : [66] 2840-4333

FAX : [66] 2840-4330

E-MAIL ADDRESS : mail@nutritionsc.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2005

REGISTRATION NO. : 0735548001641

TAX ID NO. : 3380110048

CAPITAL REGISTERED : BHT. 4,000,000

CAPITAL PAID-UP : BHT. 4,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. SURADEJ EKPANYASAKUL, THAI

MANAGING DIRECTOR

NO. OF STAFF : 48

LINES OF BUSINESS : FOOD ADDITIVES AND INGREDIENTS

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 June 24, 2005 as a private limited company under the name style NUTRITION SC CO., LTD., by Thai group, Ekpanyasakul family, with the business objective to import and distribute various kinds of food additives and ingredients to domestic market. It currently employs 48 staff.

The subject’s registered address is 47/2 Moo 6, Budhamonthon Sai 4 Rd., T. Krathumlom, A. Sampran, Nakornpathom 73220, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name		Nationality	Age
Mr. Suradej Ekpanyasakul	[x]	Thai	62
Mr. Ek Ekpanyasakul		Thai	32

AUTHORIZED PERSON

Only the mentioned director [x] signs on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Suradej Ekpanyasakul is the Managing Director.

He is Thai nationality with the age of 62 years old.

Mr. Ek Ekpanyasakul is the Sales & Marketing Manager.

He is Thai nationality with the age of 32 years old.

Ms. Pathum Benjawiwat is the Customer Services Manager.

She is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing various kinds of food additives and ingredients, such as acidulant, amino acid, bulking agent, clouding agent, coloring agent, emulsifier, flavoring agent, flavor enhancer, fruit agent, gelling agent, starch, sweetener, vegetable, vinegar, wheat and etc. The products are supplied to various industries, including foods, bakery, cosmetic, beverage and others.

PURCHASE

Most of the products are imported from Germany, Italy, Spain, Netherlands, United Kingdom, France, Taiwan, Republic of China, Sweden, Canada, Australia, Japan, Korea and India, the remaining is purchased from local suppliers and agents.

SALES

The products are sold locally by wholesale to manufacturers and end-users.

RELATED AND AFFILIATED COMPANY

Nutrition Co., Ltd.

Business Type : Importer & distributor of food additive and ingredients.

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

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.

BANKING

Bangkok Bank Public Co., Ltd.

Kasikornbank Public Co., Ltd.

EMPLOYMENT

The subject employs 48 staff.

LOCATION DETAILS

The premise is owned for administrative office at the heading address. Premise is located in provincial, on the outskirts of Bangkok.

COMMENT

The subject was formed in 2005 as an importer and distributor of food ingredients and additives. Its products are for industrial and household users. Sales were significantly grown by strong local consumption. Expansion of foods, bakery and cosmetic industries has resulted to rising demand of food additives and ingredients.

FINANCIAL INFORMATION

The capital was registered at Bht. 4,000,000 divided into 40,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at April 30, 2012]

NAME	HOLDING	%
Mr. Suradej Ekpanyasakul Nationality: Thai Address : 96 Yotha Rd., Taladnoi, Samphantawong, Bangkok	36,000	90.00
Mr. Ek Ekpanyasakul Nationality: Thai Address : 98 Yotha Rd., Taladnoi, Samphantawong, Bangkok	2,000	5.00
Ms. Patch Ekpanyasakul Nationality: Thai Address : 98 Yotha Rd., Taladnoi, Samphantawong, Bangkok	2,000	5.00

Total Shareholders : 3

Share Structure

[as at April 30, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	3	40,000	100.00
Foreign	-	-	-
Total	3	40,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Thanyada Pitimanaskul No. 8440

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2011	2010
Cash and Cash Equivalents	54,750,504.95	792,094.59
Trade Accounts & Notes Receivable	91,236,237.81	85,747,245.22
Inventories	86,389,388.85	106,517,501.80
Other Current Assets	1,544,774.63	1,653,720.50
Total Current Assets	233,920,906.24	194,710,562.11
Cash at Bank pledged as a Collateral	15,000,000.00	-
Fixed Assets	2,819,178.77	3,543,054.13
Intangible Assets	785,578.11	828,637.77
Total Assets	252,525,663.12	199,082,254.01

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2011	2010
Bank Overdraft & Short-term Loan from Financial Institutions	4,708,024.59	1,935,073.57
Trade Accounts & Other Payable	50,678,085.69	44,226,357.82
Current Portion of Hire-purchase Assets Payable	30,853.54	339,389.27
Other Current Liabilities	14,351,546.70	13,988,521.09
Total Current Liabilities	69,768,510.52	60,489,341.75
Hire-purchase Assets Payable	-	30,853.54
Estimated Liabilities for Employee Benefits	3,004,132.23	-
Total Liabilities	72,772,642.75	60,520,195.29
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 40,000 shares	4,000,000.00	4,000,000.00
Capital Paid	4,000,000.00	4,000,000.00
Retained Earning Appropriated for Statutory Reserve	250,000.00	-
Unappropriated	175,503,020.37	134,562,058.72
Total Shareholders' Equity	179,753,020.37	138,562,058.72
Total Liabilities & Shareholders' Equity	252,525,663.12	199,082,254.01

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Sales	467,406,470.59	451,938,690.89
Gain on Exchange Rate	-	1,954,218.16
Other Income	3,227,127.84	1,242,389.75
Total Revenues	470,633,598.43	455,135,298.80
Expenses
Cost of Goods Sold	352,246,907.71	351,784,662.00
Selling Expenses	18,647,711.31	20,406,521.67
Loss on Exchange Rate	3,532,445.98	-
Administrative Expenses	27,690,829.89	24,882,167.08
Total Expenses	402,117,894.89	397,073,350.75
Profit before Financial Cost & Income Tax	68,515,703.54	58,061,948.05
Financial Cost	[127,746.02]	[148,207.73]
Profit before Income Tax	68,387,957.52	57,913,740.32
Income Tax	[20,021,024.50]	[16,966,694.16]
Net Profit / [Loss]	48,366,933.02	40,947,046.16

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	3.35	3.22
QUICK RATIO	TIMES	2.09	1.43
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	165.80	127.56
TOTAL ASSETS TURNOVER	TIMES	1.85	2.27
INVENTORY CONVERSION PERIOD	DAYS	89.52	110.52
INVENTORY TURNOVER	TIMES	4.08	3.30
RECEIVABLES CONVERSION PERIOD	DAYS	71.25	69.25
RECEIVABLES TURNOVER	TIMES	5.12	5.27
PAYABLES CONVERSION PERIOD	DAYS	52.51	45.89
CASH CONVERSION CYCLE	DAYS	108.25	133.88
PROFITABILITY RATIO
COST OF GOODS SOLD	%	75.36	77.84
SELLING & ADMINISTRATION	%	9.91	10.02
INTEREST	%	0.03	0.03
GROSS PROFIT MARGIN	%	25.33	22.87
NET PROFIT MARGIN BEFORE EX. ITEM	%	14.66	12.85
NET PROFIT MARGIN	%	10.35	9.06
RETURN ON EQUITY	%	26.91	29.55
RETURN ON ASSET	%	19.15	20.57
EARNING PER SHARE	BAHT	1,209.17	1,023.68
LEVERAGE RATIO
DEBT RATIO	TIMES	0.29	0.30
DEBT TO EQUITY RATIO	TIMES	0.40	0.44
TIME INTEREST EARNED	TIMES	536.34	391.76
ANNUAL GROWTH
SALES GROWTH	%	3.42
OPERATING PROFIT	%	18.00
NET PROFIT	%	18.12
FIXED ASSETS	%	(20.43)
TOTAL ASSETS	%	26.84

PROFITABILITY RATIO

Gross Profit Margin	25.33	Impressive	Industrial Average	13.98
Net Profit Margin	10.35	Impressive	Industrial Average	4.31
Return on Assets	19.15	Impressive	Industrial Average	4.00
Return on Equity	26.91	Impressive	Industrial Average	7.52

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 25.33%. 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 10.35%, 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 19.15%, 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 26.91%, 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	3.35	Impressive	Industrial Average	1.63
Quick Ratio	2.09
Cash Conversion Cycle	108.25

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 3.35 times in 2011, increased from 3.22 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 2.09 times in 2011, increased from 1.43 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 109 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.29	Impressive	Industrial Average	0.41
Debt to Equity Ratio	0.40	Impressive	Industrial Average	0.75
Times Interest Earned	536.34	Impressive	Industrial Average	6.16

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 536.35 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 0.29 less than 0.5, most of the company's assets are financed through equity.

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	165.80	Impressive	Industrial Average	1.65
Total Assets Turnover	1.85	Impressive	Industrial Average	0.94
Inventory Conversion Period	89.52
Inventory Turnover	4.08	Acceptable	Industrial Average	5.52
Receivables Conversion Period	71.25
Receivables Turnover	5.12	Impressive	Industrial Average	4.67
Payables Conversion Period	52.51

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.54.73
UK Pound	1	Rs.89.02
Euro	1	Rs.72.48

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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