MIRA INFORM REPORT

Report Date :

29.12.2012

IDENTIFICATION DETAILS

Name :	NAWA PLASTIC INDUSTRIES CO., LTD.
Registered Office :	1 Siam Cement Road, Bangsue, Bangkok 10800
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	1995
Com. Reg. No.:	0105538097756 [Former : [1] 2124/2538]
Legal Form :	PRIVATE LIMITED COMPANY
Line of Business :	Manufacturer & Distributor of VINYL and PVC Construction Materials
No. of Employees :	420

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

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 (31.03.2012)	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

NAWA PLASTIC INDUSTRIES CO., LTD.

SUMMARY

BUSINESS ADDRESS : 1 SIAM CEMENT ROAD, BANGSUE,

BANGKOK 10800, THAILAND

TELEPHONE : [66] 2555-0333

FAX : [66] 2586-5757

E-MAIL ADDRESS : nawaplastic_coco@scg.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1995

REGISTRATION NO. : 0105538097756 [Former : [1] 2124/2538]

TAX ID NO. : 3011620250

CAPITAL REGISTERED : BHT. 426,000,000

CAPITAL PAID-UP : BHT. 426,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. TEERATH UTAYANANG, THAI

MANAGING DIRECTOR

NO. OF STAFF : 420

LINES OF BUSINESS : VINYL AND PVC CONSTRUCTION MATERIALS

MANUFACTURER & 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 17, 1995 as a private limited company under the name style NAWA PLASTIC INDUSTRIES CO., LTD. by Thai groups. It is a wholly owned subsidiary of Nawa Plastic Industries [Saraburi] Co., Ltd. The subject is engaged in manufacturing and distributing of vinyl and PVC construction and decorating materials to domestic market. It currently employs approximate 420 staff. The subject is also a member of SCG Group of companies.

The subject’s registered address is 1 Siam Cement Rd., Bangsue, Bangkok 10800 and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Kanes Khaochan	Thai	59
Mr. Pitakpong Santasiri	Thai	50
Mr. Samphan Liuveeraphan	Thai	49
Ms. Wasana T. Rungruang	Thai	42
Mr. Teerath Utayanang	Thai	56

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Teerath Utayanang is the Managing Director.

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

Ms. Wasana T. Rungruang is the Administration Manager.

She is Thai nationality with the age of 42 years old.

BUSINESS OPERATIONS

The subject is engaged in manufacturing of vinyl construction and decorating materials, and marketed under “WINDSOR” brand. Its products are included plastic vinyl windows and doors, vinyl eaves and soft panels, vinyl gutter, vinyl flooring and artificial woods, as well as vinyl outdoor living products, such as vinyl railing, vinyl shades, vinyl lattices and vinyl pergolas. The subject is also manufacturing and distributing of PVC pipe and fittings under the brand ELEPHANT.

PURCHASE

70% of its raw material and accessories are purchased from local suppliers and agents, the remaining 30% as well as machinery are imported from Japan, Republic of China, Taiwan, Germany and Switzerland.

MAJOR SUPPLIERS

Nawa Plastic Industries [Saraburi] Co., Ltd. : Thailand

Thai Plastic and Chemicals Public Company Limited : Thailand

SALES [LOCAL]

100% of its products is sold locally by wholesales to dealers both related and other companies.

MAJOR CUSTOMERS

Kitpermpool Co,. Ltd. : Thailand

SCG Group of companies : Thailand

Mitrapai Co., Ltd. : Thailand

Vinyl Creation and Trading Co., Ltd. : Thailand

H.T. [Bangkok] Trading Limited Partnership : Thailand

Dreamworks Fabricator Co., Ltd. : 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.

RELATED AND AFFILIATED COMPANY

Nawa Intertech Company Limited

Business Type : Manufacturer of metal and plastic molds.

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.

[Head Office : 333 Silom Rd., Silom, Bangrak, Bangkok 10500]

The Siam Commercial Bank Public Co., Ltd.

[Head Office : 9 Ratchadapisek Rd., Ladyao, Jatujak, Bangkok 10900]

Kasikornbank Public Co., Ltd.

[Head Office : 1 Kasikorn Lane, Rajburana Rd., Rajburana, Bangkok 10140]

EMPLOYMENT

The subject employs approximately 420 staff. [office staff and factory workers]

LOCATION DETAILS

The premise is rented for administrative office at the heading address. Premise is shared with the Siam Cement Group of companies.

Factory is located at 130 Moo 3, Nongraloke, Bankhai, Rayong 21120.

Tel: [66] 38 892-191-9, Fax: [66] 38 892-200-1

COMMENT

The subject is the leading company in the plastic construction material products. Growth looks positive due to continue strong market demand from construction industry especially residential sector.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 1,000,000 divided into 10,000 shares of Bht. 100 each.

The capital was increased later as follows:

Bht. 126,000,000 on December 12, 1995

Bht. 426,000,000 on September 2, 1999

The latest registered capital was increased to Bht. 426,000,000 divided into 4,260,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at April 27, 2012]

NAME	HOLDING	%
Nawa Plastic Industries [Saraburi] Co., Ltd. Nationality: Thai Address : 1 Siam Cement Rd., Bangsue, Bangsue, Bangkok 10800	4,259,994	100.00
Mr. Vinyoo Vichiensri Nationality: Thai Address : 36/112 Moo 10, Laksong, Nongkaem, Bangkok 10160	1	-
Mr. Vorachart Jongsuk Nationality: Thai Address : 198/246 Therdthai Rd., Pakklongpasicharoen, Pasicharoen, Bangkok 10160	1	-
Ms. Chantima Noineam Nationality: Thai Address : 1064 Charoennakorn Rd., Banglamphulang, Klongsan, Bangkok 10160	1	-
Mrs. Nirachorn Aswathewakiat Nationality: Thai Address : 19/83 Ratanakosin Rd., Ao-ngern, Saimai, Bangkok	1	-
Ms. Kritika Cheungsaengstitporn Nationality: Thai Address : 380/27 Soi Sannibart Thesaban, Ladyao, Bangkok	1	-
Mr. Adichai Premchaiporn Nationality: Thai Address : 2151 Charoenkrung Rd., Watphrayakrai, Bangkorlaem, Bangkok 10120	1	-

Total Shareholders : 7

Share Structure

[as at April 27, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	4,260,000	100.00
Foreign	-	-	-
Total	7	4,260,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Pornthip Rimdusit No. 5565

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2011	2010
Cash in hand & at Bank	4,255,134	7,236,351
Trade Accounts Receivable	348,940,288	283,257,446
Other Receivable - Related Company	24,107,946	4,269,341
Short-term Lending to Other Company	14,407,423	14,500,000
Inventories	541,105,669	425,174,329
Other Current Assets	33,231,502	20,718,758
Total Current Assets	966,047,962	755,156,225
Fixed Assets	1,349,540,883	1,095,585,523
Leasehold Right	23,748,500	26,910,500
Intangible Assets	6,860,811	7,843,822
Other Non-current Assets	192,416	35,916
Total Assets	2,346,390,572	1,885,531,986

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2011	2010
Bank Overdraft & Short-term Loan from Financial Institution	208,189,403	18,370,972
Trade Accounts Payable	593,755,414	543,730,244
Current Portion of Long-term Loan	-	40,000,000
Short-term Loan from Parent Company	452,800,000	354,000,000
Other Payable - Related Company	20,651,921	18,045,858
Accrued Income Tax	3,548,686	-
Other Current Liabilities	90,769,296	54,599,407
Total Current Liabilities	1,369,714,720	1,028,746,481
Liabilities from Employee Benefits	32,569,553	3,258,080
Total Liabilities	1,402,284,273	1,032,004,561
Shareholders' Equity
Share capital : Baht 100 value authorized, issued and fully paid share capital 4,260,000 shares	426,000,000	426,000,000
Capital Paid	426,000,000	426,000,000
Retained Earning Appropriated for Statutory Reserve	42,600,000	42,600,000
Unappropriated	475,506,299	384,927,425
Total Shareholders' Equity	944,106,299	853,527,425
Total Liabilities & Shareholders' Equity	2,346,390,572	1,885,531,986

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Sales & Service Income	3,227,226,548	2,969,994,499
Other Income	13,611,353	13,024,358
Total Revenues	3,240,837,901	2,983,018,857
Expenses
Cost of Goods Sold & Service	2,811,034,056	2,655,836,461
Selling Expenses	114,687,677	86,542,464
Administrative Expenses	173,464,768	143,769,448
Total Expenses	3,099,186,501	2,886,148,373
Profit / [Loss] before Financial Expenses & Income Tax	141,651,400	96,870,484
Financial Expenses	[19,251,673]	[7,652,928]
Profit/[Loss] before Income Tax	122,399,727	89,217,556
Income Tax	[4,775,191]	-
Net Profit / [Loss]	117,624,536	89,217,556

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.71	0.73
QUICK RATIO	TIMES	0.29	0.30
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	2.39	2.71
TOTAL ASSETS TURNOVER	TIMES	1.38	1.58
INVENTORY CONVERSION PERIOD	DAYS	70.26	58.43
INVENTORY TURNOVER	TIMES	5.19	6.25
RECEIVABLES CONVERSION PERIOD	DAYS	39.47	34.81
RECEIVABLES TURNOVER	TIMES	9.25	10.49
PAYABLES CONVERSION PERIOD	DAYS	77.10	74.73
CASH CONVERSION CYCLE	DAYS	32.63	18.52
PROFITABILITY RATIO
COST OF GOODS SOLD	%	87.10	89.42
SELLING & ADMINISTRATION	%	8.93	7.75
INTEREST	%	0.60	0.26
GROSS PROFIT MARGIN	%	13.32	11.02
NET PROFIT MARGIN BEFORE EX. ITEM	%	4.39	3.26
NET PROFIT MARGIN	%	3.64	3.00
RETURN ON EQUITY	%	12.46	10.45
RETURN ON ASSET	%	5.01	4.73
EARNING PER SHARE	BAHT	27.61	20.94
LEVERAGE RATIO
DEBT RATIO	TIMES	0.60	0.55
DEBT TO EQUITY RATIO	TIMES	1.49	1.21
TIME INTEREST EARNED	TIMES	7.36	12.66
ANNUAL GROWTH
SALES GROWTH	%	8.66
OPERATING PROFIT	%	46.23
NET PROFIT	%	31.84
FIXED ASSETS	%	23.18
TOTAL ASSETS	%	24.44

PROFITABILITY RATIO

Gross Profit Margin	13.32	Satisfactory	Industrial Average	14.47
Net Profit Margin	3.64	Impressive	Industrial Average	2.07
Return on Assets	5.01	Impressive	Industrial Average	2.75
Return on Equity	12.46	Impressive	Industrial Average	6.20

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 13.32%. When compared with the industry average, the ratio of the company was lower, 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. The company's figure is 3.64%, 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 5.01%, 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 12.46%, 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 Downtrend

LIQUIDITY RATIO

Current Ratio	0.71	Risky	Industrial Average	1.26
Quick Ratio	0.29
Cash Conversion Cycle	32.63

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 0.71 times in 2011, decreased from 0.73 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 0.29 times in 2011, decreased from 0.3 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 33 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.60	Acceptable	Industrial Average	0.56
Debt to Equity Ratio	1.49	Risky	Industrial Average	1.26
Times Interest Earned	7.36	Impressive	Industrial Average	2.85

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 7.36 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 0.6 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	2.39	Satisfactory	Industrial Average	2.61
Total Assets Turnover	1.38	Impressive	Industrial Average	1.28
Inventory Conversion Period	70.26
Inventory Turnover	5.19	Satisfactory	Industrial Average	6.32
Receivables Conversion Period	39.47
Receivables Turnover	9.25	Impressive	Industrial Average	4.79
Payables Conversion Period	77.10

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

Fixed Assets Turnover Uptrend

Total Assets Turnover Downtrend

Inventory Turnover Uptrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.85
UK Pound	1	Rs.88.40
Euro	1	Rs.72.63

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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