MIRA INFORM REPORT

Report Date :

09.02.2012

IDENTIFICATION DETAILS

Name :	UNITECH CO., LTD.
Registered Office :	184 Soi Meesuwan 3, Sukhumvit 71 Road, Prakanongnua, Wattana, Bangkok 10110
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	10.02.1984
Com. Reg. No.:	0105527005855
Legal Form :	Private Limited Company
Line of Business :	Treatment Systems and Solutions of Purify Water and Wastewater
No. of Employees :	109

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 – 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

Company name

UNITECH CO., LTD.

SUMMARY

BUSINESS ADDRESS : 184 SOI MEESUWAN 3, SUKHUMVIT 71 ROAD,

PRAKANONGNUA, WATTANA, BANGKOK 10110

TELEPHONE : [66] 2711-0767-8, 2381-5028-37, 2390-1038

FAX : [66] 2381-2976

E-MAIL ADDRESS : yanyong@loxinfo.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1984

REGISTRATION NO. : 0105527005855

CAPITAL REGISTERED : BHT. 25,000,000

CAPITAL PAID-UP : BHT. 25,000,000

SHAREHOLDER’S PROPORTION : THAI : 100.00%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. YANYONG JU-ANUWATTANAKUL, THAI

MANAGING DIRECTOR

NO. OF STAFF : 109

LINES OF BUSINESS : PURIFY WATER AND WASTEWATER

TREATMENT SYSTEMS AND SOLUTIONS

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 February 10, 1984 as a private limited company under the name style UNITECH CO., LTD., by Thai groups, to provide product and service of purify water and wastewater treatment systems and solutions in Thailand. It currently employs 109 staff.

The subject’s registered address is 184 Soi Meesuwan 3, Sukhumvit 71 Rd., Prakanongnua, Wattana, Bangkok 10110, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Mr. Yanyong Ju-anuwattanakul

AUTHORIZED PERSON

The above director can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Yanyong Ju-anuwattanakul is the Managing Director.

He is Thai nationality with the age of 58 years old.

BUSINESS OPERATIONS

The subject is supplier and service provider of design, consultant and installation wide range of water treatment systems including clarification system, pretreatment system, softener system, reverse osmosis system, UPCORE demineralization system, clarification, pretreatment, deionization system, electrode ionization system and etc.

It is also an importer and authorized distributor of water system equipment and supplies, such as wastewater chemical, water pump & machinery, valves, control equipment, membrane, ion exchange resin, water quality instrumentation, PVC & CPVC SCH 80 piping & fitting, PVC & CPVC ball valve /check valve /butterfly valve, ultraviolet sterilizer, chemical for water and waste water treatment, metering pump, FRP vessel, ozonator, depth filter, media for water treatment, micron filter and related instruments.

MAJOR BRANDS

“DOWEX”, “DOW”, “CODELINE”, “C&S”, “OSMONICS”, “SUMMIT”, “TRIPLE O”, “SEKO”, “PRAHER”, “FLOCON”, “SEKO” and etc.

IMPORT

90% of the products is imported from U.S.A., United Kingdom, Italy, Australia, and Austria, 10% of the rest is purchased locally.

MAJOR SUPPLIERS

Triple O System Inc. : U.S.A.

Osmonics Inc. : U.S.A.

Dow Chemical Inc. : U.S.A.

James Cumming & Sons Pty. Ltd. : Australia

Ludwig Praher Kunststoffechnik GmbH : Austria

SALES

The products are sold and serviced locally to manufacturers, wholesalers and end-users in various industries such as semiconductor, food & beverage, pharmaceutical, textile, chemical process, metal plating and etc.

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.

EMPLOYMENT

The subject employs approximately 109 office staff, engineers and service workers.

LOCATION DETAILS

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

Warehouses:

- 139 Soi Meesuwan 3, Sukhumvit 71 Rd., Prakanongnua, Wattana, Bangkok 10110.

- Bangpoo Industrial Estate, Muang, Samutprakarn.

REMARK

CREDIT OF EUR 100,000 SHOULD BE IN ORDER.

COMMENT

The subject’s operating performance in 2010 was considered excellent. Economy improvement had resulted to increase demand of products and services. Subject represents the proven and well-established products from international markets, well-known manufacturers which served mainly to industrial factories. With its professional and experience in waste water treatment systems have successfully completed the commitment towards Thai market.

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 followings:

Bht. 5,000,000 on July 31, 1991

Bht. 10,000,000 on July 18, 1994

Bht. 25,000,000 on March 8, 1999

The latest registered capital was increased to Bht. 25,000,000 divided into 250,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 30, 2011]

NAME	HOLDING	%
Mr. Yanyong Ju-anuwattanakul Nationality: Thai Address : 184 Soi Meesuwan 3, Sukhumvit 71 Rd., Prakanongnua, Wattana, Bangkok	247,495	99.00
Mr. Vibulsak Chukiattakerng Nationality: Thai Address : 10/128 Moo 9, Klongkum, Buengkum, Bangkok	2,500	1.00
Mrs. Siriporn Sitthipraneat Nationality: Thai Address : 130/8 Rama 6 Rd., Samsennai, Phyathai, Bangkok	1	-
Mrs. Suchada Ju-anuwattanakul Nationality: Thai Address : 130/8 Rama 6 Rd., Samsennai, Phyathai, Bangkok	1	-
Mr. Wallop Jaemwuthipreecha Nationality: Thai Address : 204/7 Moo 3, Sapansung, Bangkapi, Bangkok	1	-
Mrs. Sureerat Charascholpajee Nationality: Thai Address : 1328/12 Taksin Rd., Bukkalo, Thonburi, Bangkok	1	-
Ms. Suwanna Seesophon Nationality: Thai Address : 712/40 Charoenkrung Rd., Bangkorlaem, Yannawa, Bangkok	1	-

Total Shareholders : 7

Share Structure [as at April 30, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	250,000	100.00
Foreign	-	-	-
Total	7	250,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Sasawan Varasin No.1887

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2010	2009
Cash and Cash Equivalents	7,251,505.50	14,670,204.75
Short-term Investment	85,049,500.00	95,173,250.00
Trade Accounts Receivable	73,068,903.87	72,258,835.54
Inventories	44,591,739.03	20,033,309.71
Other Current Assets	832,779.86	1,366,323.39
Total Current Assets	210,794,428.26	203,501,923.39
Long-term Investment	45,108,240.00	35,108,240.00
Fixed Assets	12,173,157.15	13,151,352.34
Other Assets	2,071,398.45	284,332.13
Total Assets	270,147,223.86	252,045,847.86

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Bank Overdraft & Short Term Loan from Financial Institutions	28,924,074.23	131,496.30
Trade Accounts Payable	38,110,263.63	47,112,109.89
Short Term Loan from Person or Related Company	1,851,212.24	2,290,932.34
Accrued Expenses	19,151,628.32	20,264,195.29
Advance Deposit	11,186,000.00	9,957,150.00
Other Current Liabilities	1,133,137.69	881,094.31
Total Current Liabilities	100,356,316.11	80,636,978.13
Other Liabilities	3,373,067.46	2,952,981.98
Total Liabilities	103,729,383.57	83,589,960.11
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 250,000 shares	25,000,000.00	25,000,000.00
Capital Paid	25,000,000.00	25,000,000.00
Retained Earning
Appropriated for Statutory Reserve	4,060,684.34	4,060,684.34
Unappropriated	137,357,155.95	139,395,203.41
Total Shareholders' Equity	166,417,840.29	168,455,887.75
Total Liabilities & Shareholders' Equity	270,147,223.86	252,045,847.86

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales Income	365,352,887.50	328,951,126.04
Services Income	30,808,302.83	35,929,998.19
Dividend Income	4,050,000.00	6,302,198.40
Other Income	7,834,609.37	4,231,071.41
Total Revenues	408,045,799.70	375,414,394.04
Expenses
Cost of Goods Sold & Services	311,708,215.76	276,826,828.60
Selling Expenses	14,661,278.74	12,466,040.23
Administrative Expenses	38,454,007.30	40,154,782.04
Total Expenses	364,823,501.80	329,447,650.87
Profit / [Loss] Before Financial Cost & Income Tax	43,222,297.90	45,966,743.17
Financial Cost	[517,800.86]	[275,666.88]
Income Tax	[11,742,544.50]	[12,041,452.03]
Net Profit / [Loss]	30,961,952.54	33,649,624.26

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.10	2.52
QUICK RATIO	TIMES	1.65	2.26
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	32.54	27.74
TOTAL ASSETS TURNOVER	TIMES	1.47	1.45
INVENTORY CONVERSION PERIOD	DAYS	52.22	26.41
INVENTORY TURNOVER	TIMES	6.99	13.82
RECEIVABLES CONVERSION PERIOD	DAYS	67.32	72.28
RECEIVABLES TURNOVER	TIMES	5.42	5.05
PAYABLES CONVERSION PERIOD	DAYS	44.63	62.12
CASH CONVERSION CYCLE	DAYS	74.91	36.58
PROFITABILITY RATIO
COST OF GOODS SOLD	%	78.68	75.87
SELLING & ADMINISTRATION	%	13.41	14.42
INTEREST	%	0.13	0.08
GROSS PROFIT MARGIN	%	24.32	27.02
NET PROFIT MARGIN BEFORE EX. ITEM	%	10.91	12.60
NET PROFIT MARGIN	%	7.82	9.22
RETURN ON EQUITY	%	18.60	19.98
RETURN ON ASSET	%	11.46	13.35
EARNING PER SHARE	BAHT	123.85	134.60
LEVERAGE RATIO
DEBT RATIO	TIMES	0.38	0.33
DEBT TO EQUITY RATIO	TIMES	0.62	0.50
TIME INTEREST EARNED	TIMES	83.47	166.75
ANNUAL GROWTH
SALES GROWTH	%	8.57
OPERATING PROFIT	%	(5.97)
NET PROFIT	%	(7.99)
FIXED ASSETS	%	(7.44)
TOTAL ASSETS	%	7.18

PROFITABILITY RATIO

Gross Profit Margin	24.32	Satisfactory	Industrial Average	28.76
Net Profit Margin	7.82	Impressive	Industrial Average	0.34
Return on Assets	11.46	Impressive	Industrial Average	5.30
Return on Equity	18.60	Impressive	Industrial Average	13.64

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 24.32%. 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. The company's figure ratio is 7.82%, 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 11.46%, 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.

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 18.6%, 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	2.10	Deteriorated	Industrial Average	18.58
Quick Ratio	1.65
Cash Conversion Cycle	74.91

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 2.1 times in 2010, decreased from 2.52 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 1.65 times in 2010, decreased from 2.26 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 75 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.38	Impressive	Industrial Average	0.44
Debt to Equity Ratio	0.62	Impressive	Industrial Average	1.24
Times Interest Earned	83.47	Deteriorated	Industrial Average	397.57

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 83.48 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 0.38 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	32.54	Deteriorated	Industrial Average	1,871.67
Total Assets Turnover	1.47	Satisfactory	Industrial Average	1.87
Inventory Conversion Period	52.22
Inventory Turnover	6.99	Deteriorated	Industrial Average	29.95
Receivables Conversion Period	67.32
Receivables Turnover	5.42	Acceptable	Industrial Average	10.41
Payables Conversion Period	44.63

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.49.07
UK Pound	1	Rs.78.09
Euro	1	Rs.65.15

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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