MIRA INFORM REPORT

Report Date :

04.01.2012

IDENTIFICATION DETAILS

Name :	PRIME MEDICAL CO., LTD
Registered Office :	111 Soi Karanporn, Ladprao 126 Road, Pubpla, Wangthonglang, Bangkok 10310
Country :	Thailand
Financials (as on) :	2010
Date of Incorporation :	14.03.1990
Com. Reg. No.:	0105533030751 [Former: 3075/2533]
Legal Form :	Private Limited Company
Line of Business :	Medical Equipment Importer and Distributor
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 :	Good
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, 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

SUMMARY

BUSINESS ADDRESS : 111 SOI KARANPORN, LADPRAO 126 ROAD,

PUBPLA, WANGTHONGLANG, BANGKOK 10310

TELEPHONE : [66] 2934-2160-75

FAX : [66] 2934-2178-9

E-MAIL ADDRESS : sales@prime.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1990

REGISTRATION NO. : 0105533030751 [Former: 3075/2533]

CAPITAL REGISTERED : BHT. 50,000,000

CAPITAL PAID-UP : BHT. 50,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. PAIBOON HARNDUMRONGSAK, THAI

MANAGING DIRECTOR

NO. OF STAFF : 150

LINES OF BUSINESS : MEDICAL EQUIPMENT

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 March 14, 1990 as a private limited company under the name style PRIME MEDICAL CO., LTD., by Thai groups, with the business objective to import and distribute various kinds of medical equipment to domestic market. It currently employs approximate 150 staff.

The subject’s registered address is 111 Soi Karanporn, Ladprao 126 Rd., Pubpla, Wangthonglang, Bangkok 10310, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name		Nationality	Age
Mr. Paiboon Harndumrongsak	[x]	Thai	57
Mr. Prinya Visarnsawat		Thai	56
Mr. Roj Chaiyasith	[x]	Thai	61
Mr. Wanchai Techathakinphan		Thai	59

AUTHORIZED PERSON

1. In case of contact to government section, one of the mentioned directors [x] can

sign on behalf of the subject with company’s affixed.

2. In case of contact to private sector, any two of the above directors can jointly sign

on behalf of the subject with seal affixed.

MANAGEMENT

Mr. Paiboon Harndumrongsak is the Managing Director.

He is Thai nationality with the age of 57 years old.

Mr. Boonchai Visetbanchong is the Sales & Marketing Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing various kinds of medical equipments such as respirator, electrocardiograph, automatic impulse meter, long-term ECG analyzer, pacemaker, ultrasonography, spiral computerized tomography and medical disposable, such as medical gloves, masks and etc., as well as after sales service.

MAJOR BRANDS

“MASIMO”, “GE”, “SULLIVAN”, “RESMED”, “3M” and etc.

PURCHASE

80% of the products is imported from United States of America, Germany, United Kingdom, Singapore, Republic of China, France and Australia, the remaining 20% is purchased from local suppliers.

MAJOR SUPPLIERS

Masimo Corporation : United States of America

Resmed Corporation : United States of America

SALES

100% of the products is sold locally by wholesale to both private and government hospitals.

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 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.

The Siam Commercial Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 150 staff. [office, sales staff and service workers]

LOCATION DETAILS

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

REMARK

MAXIMUM CREDIT SHOULD BE GRANTED AT US$ 10,000,000.

COMMENT

The subject was formed in 1990 as an importer and distributor of medical equipment and supplies, while overall market situation of medical and scientific equipment are actively expanded.

The market of medical related products has grown impressively because of growing of healthcare industry. The company's profits is soared.

FINANCIAL INFORMATION

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

The capital was increased later as following:

Bht. 5,000,000 on November 7, 1991

Bht. 20,000,000 on January 4, 1995

Bht. 40,000,000 on October 20, 1995

Bht. 50,000,000 on September 29, 2005

The latest registered capital was increased to Bht. 50,000,000 divided into 50,000 shares of Bht. 1,000 each with fully paid.

MAIN SHAREHOLDERS

[as at November 7, 2011]

NAME	HOLDING	%
Ms. Suwanna Wangwongcharoen Nationality: Thai Address : 140 Rama 6 Rd., Samsennai, Phyathai, Bangkok	3,280	6.56
Mr. Prayoon Kamjornrith Nationality: Thai Address : 125/2 Moo 9, Panurangsee Rd., Bangkruay, Nonthaburi	3,000	6.00
Ms. Mayuree Putthonamochai Nationality: Thai Address : 81/60 Soi Phumjit, Prakanong, Bangkok	2,690	5.38
Mr. Surat Darnthamrongkul Nationality: Thai Address : 1118/28 Krungthep-Nonthaburi Rd., Bangsue, Bangkok	2,300	4.60
Mr. Paiboon Harndumrongsak Nationality: Thai Address : 60/212 Moo 6, Saikongdintai Rd., Klongsamwa, Bangkok	1,990	3.98
Mr. Jirasak Suwanakijkorn Nationality: Thai Address : 100/97 Moo 11, Saphansoong, Bangkok	1,500	3.00
Ms. Sasipusanisa Harndumrongsak Nationality: Thai Address : 146/19 Moo 3, Sukhapiban 3 Rd., Sapansung, Bangkok	1,470	2.94
Ms. Piyarat Harndumrongsak Nationality: Thai Address : 1542 Ladmanong Rd., Talad, Phrapradaeng, Samutprakarn,	1,400	2.80
Mr. Prinya Visarnsawat Nationality: Thai Address : 48/22 Moo 3, Or-ngern, Saimai, Bangkok	1,400	2.80
Mr. Kasem Pothikulchanant Nationality: Thai Address : 329 Asoke-Dindaeng Rd., Dindaeng, Bangkok	1,400	2.80
Others	29,570	59.14

Total Shareholders : 84

Share Structure

[ as at November 7, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	84	50,000	100.00
Foreign	-	-	-
Total	84	50,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Ms. Ladawan Thamachart No. 3896

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2010 & 2009 were:

ASSETS

Current Assets	2010	2009
Cash and Cash Equivalents	33,803,266.74	17,602,787.28
Short-term Investment	14,384,044.20	25,136,580.83
Trade Accounts & Notes Receivable	353,756,024.83	240,220,092.87
Inventories	156,891,501.03	160,974,524.68
Other Current Assets	1,949,973.50	4,754,555.70
Total Current Assets	560,784,810.30	448,688,541.36
Cash at Bank pledged as a Collateral	1,016,089.50	1,010,823.46
Investment at Commitment	6,129,655.50	6,076,658.70
Fixed Assets	55,890,898.15	53,665,618.50
Other Assets	43,589.00	57,213.00
Total Assets	623,865,042.45	509,498,855.02

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Trade Accounts Payable	134,110,488.05	104,797,072.95
Accrued Income Tax	24,138,252.38	17,169,429.36
Accrued Expenses & Other Current Liabilities	13,119,025.64	6,261,110.57
Total Current Liabilities	171,367,766.07	128,227,612.88
Employee’s Guarantee	10,511,500.00	4,782,237.00
Total Liabilities	181,879,266.07	133,009,849.88
Shareholders' Equity
Share capital : Baht 1,000 par value authorized, issued and fully paid share capital 50,000 shares	50,000,000.00	50,000,000.00
Capital Paid	50,000,000.00	50,000,000.00
Surplus on Share Capital	16,463,000.00	16,463,000.00
Retained Earning Appropriated for Statutory Reserve	5,000,000.00	5,000,000.00
Unappropriated	370,522,776.38	305,026,005.14
Total Shareholders' Equity	441,985,776.38	376,489,005.14
Total Liabilities & Shareholders' Equity	623,865,042.45	509,498,855.02

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales & Service Income	892,081,954.21	755,164,376.15
Other Income	15,874,668.61	11,387,564.64
Total Revenues	907,956,622.82	766,551,940.79
Expenses
Cost of Goods Sold & Service	602,093,829.70	515,629,600.38
Selling Expenses	117,653,007.39	99,660,203.63
Administrative Expenses	37,750,285.78	30,484,761.03
Total Expenses	757,497,122.87	645,774,565.04
Profit before Interest Expenses & Income Tax	150,459,499.95	120,777,375.75
Interest Expenses	[97,361.82]	[23,360.36]
Profit before Income Tax	150,362,138.13	120,754,015.39
Income Tax	[44,865,366.89]	[36,189,300.69]
Net Profit / [Loss]	105,496,771.24	84,564,714.70

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	3.27	3.50
QUICK RATIO	TIMES	2.35	2.21
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	15.96	14.07
TOTAL ASSETS TURNOVER	TIMES	1.43	1.48
INVENTORY CONVERSION PERIOD	DAYS	95.11	113.95
INVENTORY TURNOVER	TIMES	3.84	3.20
RECEIVABLES CONVERSION PERIOD	DAYS	144.74	116.11
RECEIVABLES TURNOVER	TIMES	2.52	3.14
PAYABLES CONVERSION PERIOD	DAYS	81.30	74.18
CASH CONVERSION CYCLE	DAYS	158.55	155.87
PROFITABILITY RATIO
COST OF GOODS SOLD	%	67.49	68.28
SELLING & ADMINISTRATION	%	17.42	17.23
INTEREST	%	0.01	0.00
GROSS PROFIT MARGIN	%	34.29	33.23
NET PROFIT MARGIN BEFORE EX. ITEM	%	16.87	15.99
NET PROFIT MARGIN	%	11.83	11.20
RETURN ON EQUITY	%	23.87	22.46
RETURN ON ASSET	%	16.91	16.60
EARNING PER SHARE	BAHT	2,109.94	1,691.29
LEVERAGE RATIO
DEBT RATIO	TIMES	0.29	0.26
DEBT TO EQUITY RATIO	TIMES	0.41	0.35
TIME INTEREST EARNED	TIMES	1,545.36	5,170.18
ANNUAL GROWTH
SALES GROWTH	%	18.13
OPERATING PROFIT	%	24.58
NET PROFIT	%	24.75
FIXED ASSETS	%	4.15
TOTAL ASSETS	%	22.45

PROFITABILITY RATIO

Gross Profit Margin	34.29	Impressive	Industrial Average	33.27
Net Profit Margin	11.83	Impressive	Industrial Average	(11.03)
Return on Assets	16.91	Impressive	Industrial Average	(2.51)
Return on Equity	23.87	Impressive	Industrial Average	4.71

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 34.29%. 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 11.83%, 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 16.91%, 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.

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 23.87%, 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	3.27	Deteriorated	Industrial Average	28.41
Quick Ratio	2.35
Cash Conversion Cycle	158.55

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 3.27 times in 2010, decreased from 3.5 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 2.35 times in 2010, increased from 2.21 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 159 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	1.15
Debt to Equity Ratio	0.41	Impressive	Industrial Average	1.39
Times Interest Earned	1,545.36	Impressive	Industrial Average	272.59

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 1545.37 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 Uptrend

Times Interest Earned Uptrend

ACTIVITY RATIO

Fixed Assets Turnover	15.96	Deteriorated	Industrial Average	11,965.68
Total Assets Turnover	1.43	Satisfactory	Industrial Average	1.69
Inventory Conversion Period	95.11
Inventory Turnover	3.84	Deteriorated	Industrial Average	14.30
Receivables Conversion Period	144.74
Receivables Turnover	2.52	Deteriorated	Industrial Average	15.49
Payables Conversion Period	81.30

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.48.96
UK Pound	1	Rs.77.46
Euro	1	Rs.64.39

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.