MIRA INFORM REPORT

Report Date :

14.02.2012

IDENTIFICATION DETAILS

Name :	WEI CHEN INDUSTRIAL CO., LTD.
Registered Office :	140/18 Moo 12, Kingkaew Road, Rajathewa, Bangplee, Samutprakarn 10540
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	1994
Com. Reg. No.:	0115537006757
Legal Form :	Private Limited Company
Line of Business :	Importer and Distributor Industrial Machinery and Spare Parts
No. of Employees :	18

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 : 140/18 MOO 12, KINGKAEW ROAD, RAJATHEWA,

BANGPLEE, SAMUTPRAKARN 10540, THAILAND

TELEPHONE : [66] 2750-0366, 2750-0556

FAX : [66] 2750-0997

E-MAIL ADDRESS : chang@kumchen.com.tw

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1994

REGISTRATION NO. : 0115537006757

CAPITAL REGISTERED : BHT. 10,000,000

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

SHAREHOLDER’S PROPORTION : THAI : 51%

TAIWANESE : 49%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. TSENG KUO CHANG, TAIWANESE

MANAGING DIRECTOR

NO. OF STAFF : 18

LINES OF BUSINESS : INDUSTRIAL MACHINERY AND SPARE PARTS

IMPORTER AND DISTRIBUTOR

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : GOOD WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH FAIR PERFORMANCE

HISTORY

The subject was established on September 27, 1994 as a private limited company under the name style WEI CHEN INDUSTRIAL CO., LTD., by Thai and Taiwanese groups, with the business objective to import and distribute wide range of sheet metal industrial machinery and spare parts to domestic market. It currently employs 18 staff.

The subject’s registered address is 140/18 Moo 12, Kingkaew Rd., T. Rajathewa,

A. Bangplee, Samutprakarn 10540, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Mr. Tseng Kuo Chang

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Tseng Kuo Chang is the Managing Director.

He is Taiwanese nationality with the age of 43 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing wide range of sheet metal industrial machinery and spare parts for automobile parts, computer case, power press punching, metal coil processing, stainless steel, hot & cold rolled steel, metals for building and construction, metals for piping & tubing, tin-plate cutting process for can industry, silicon-plate cutting process for electrical equipment and appliance industries, etc., as well as providing after sales services.

Ranges of products are as follows:

1. Cut to length line & slitting line

- Steel sheet rotary [flying] shearing machine

- Steel sheet cut to length shearing machine

- Automatic steel sheet slitting machine

2. Press machine and spare parts
3. Uncoiler & leveler, feeder for stamping press

- Air feeder

- Mechanical feeder & NC feeder

- NC servo feeder

- Auto reel

- Uncoiler & leveler series

- Servo straightener feeder series

4. Riveting machine

5. Accessories for slitting machine and tube making machine

- Slitter knife

- Separator disk

- Spacer liner

- Belt bridle

- Nut

- Roller for sheet metal industrial

- Forming roll for pipe mill

IMPORT

90% of the products is imported from Taiwan, Republic of China, Japan and Germany.

MAJOR SUPPLIERS

Chang Lian Fa Machinery Co., Ltd. : Taiwan

Kum Chen Machinery [Kun Shan] Co., Ltd. : Republic of China

SALES

100% of the products are sold and supplied locally to manufacturers and end-users.

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 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

The Siam Commercial Bank Public Co., Ltd.

EMPLOYMENT

The subject employs 18 staff.

LOCATION DETAILS

The premise is rented for administrative office and warehouse at the heading address. Premise is located in industrial area.

Note

Please be informed that the 2011 financial statement has not yet been submitted to the Commercial Registration Department, while the company refused to disclosed the financial statement for investigation.

REMARK

MAXIMUM CREDIT SHOULD BE GRANTED AT EUR 150,000.

COMMENT

The company is a firm that excels in offering industrial machinery and parts for various applications with high quality products and services. Its products enable the customers demand in order to expand their productivity.

Subject reported moderate business in 2010, while current market situation has grown strongly with positive outcome.

FINANCIAL INFORMATION

The capital was registered at Bht. 2,000,000 divided into 20,000 shares of Bht. 100 each.

The capital was increased later as following:

Bht. 3,000,000 on November 9, 1994

Bht. 4,000,000 on December 9, 1998

Bht. 6,000,000 on July 13, 2005

Bht. 10,000,000 on June 8, 2007

The latest registered capital was increased to Bht. 10,000,000 divided into 100,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at January 18, 2012]

NAME	HOLDING	%
Mr. Tseng Kuo Chang Nationality: Taiwanese Address : 157/8 Ming-yi Rd., Taipei, Taiwan	39,250	39.25
Mrs. Laddawal Chen Nationality: Thai Address : 104/29 Moo 2, Bangpai, Bangkae, Bangkok	35,400	35.40
Mr. Chucheep Yongwongpaibul Nationality: Thai Address : 108/3 Moo 1, Bangnamjued, Muang, Samutsakorn	15,000	15.00
Mr. Chen Chin An Nationality: Taiwanese Address : 1 Talong Rd., Shanshongsue, Taipei, Taiwan	9,750	9.75
Ms. Nanpipat Pitalko Nationality: Thai Address : 102/33 Moo 8, Klongkum, Buengkum, Bangkok	300	0.30
Ms. Sulek Ying-udomsak Nationality: Thai Address : 400 Klongchan, Bangkapi, Bangkok	300	0.30

Total Shareholders : 6

Share Structure

[as at January 18, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	4	51,000	51.00
Foreign - Taiwanese	2	49,000	49.00
Total	7	100,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO

Mr. Amnuay Boonyathee No. 1243

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2010	2009
Cash and Cash Equivalents	4,799,339.79	2,736,302.74
Trade Accounts Receivable	2,924,058.85	1,119,348.40
Inventories	2,986,026.29	4,902,467.31
Total Current Assets	10,709,424.93	8,758,118.45
Other Long-term Investment	2,531,703.86	800,132.13
Fixed Assets	8,548,178.06	8,222,079.58
Total Assets	21,789,306.85	17,780,330.16

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Trade Accounts Payable	1,450,110.81	1,917,383.08
Current Portion of Financial Lease Contract	183,302.04	-
Short-term Loan from Financial Institution	5,579,887.21	3,750,622.40
Deposit	-	667,185.00
Other Current Liabilities	158,663.48	72,830.13
Total Current Liabilities	7,371,963.54	6,408,020.61
Long-term Loan from Person or Related Company	498,971.52	-
Other Long-term Loan	1,035,000.00	-
Total Liabilities	8,905,935.06	6,408,020.61
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 100,000 shares	10,000,000.00	10,000,000.00
Capital Paid	10,000,000.00	10,000,000.00
Unrealized Gain / [Loss]	12,635.53	30,730.52
Retained Earning - Unappropriated	2,870,736.26	1,341,579.03
Total Shareholders' Equity	12,883,371.79	11,372,309.55
Total Liabilities & Shareholders' Equity	21,789,306.85	17,780,330.16

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales Income	40,201,327.11	17,445,339.55
Services Income	998,585.00	2,216,920.00
Other Income	206,274.25	132,197.24
Total Revenues	41,406,186.36	19,794,456.79
Expenses
Cost of Goods Sold	33,224,972.09	14,536,857.48
Cost of Services	859,025.88	2,012,355.24
Selling Expenses	795,800.00	377,150.65
Administrative Expenses	4,606,751.00	4,018,966.60
Total Expenses	39,486,548.97	20,945,329.97
Profit / [Loss] before Cost of Financial & Income Tax	1,919,637.39	[1,150,873.18]
Cost of Financial	[191,550.51]	[129,921.54]
Profit / [Loss] before Income Tax	1,728,086.88	[1,280,794.72]
Income Tax	[198,929.65]	-
Net Profit / [Loss]	1,529,157.23	[1,280,794.72]

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.45	1.37
QUICK RATIO	TIMES	1.05	0.60
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	4.82	2.39
TOTAL ASSETS TURNOVER	TIMES	1.89	1.11
INVENTORY CONVERSION PERIOD	DAYS	31.98	108.13
INVENTORY TURNOVER	TIMES	11.41	3.38
RECEIVABLES CONVERSION PERIOD	DAYS	25.90	20.78
RECEIVABLES TURNOVER	TIMES	14.09	17.57
PAYABLES CONVERSION PERIOD	DAYS	15.53	42.29
CASH CONVERSION CYCLE	DAYS	42.35	86.62
PROFITABILITY RATIO
COST OF GOODS SOLD	%	82.73	84.17
SELLING & ADMINISTRATION	%	13.11	22.36
INTEREST	%	0.46	0.66
GROSS PROFIT MARGIN	%	17.77	16.50
NET PROFIT MARGIN BEFORE EX. ITEM	%	4.66	(5.85)
NET PROFIT MARGIN	%	3.71	(6.51)
RETURN ON EQUITY	%	11.87	(11.26)
RETURN ON ASSET	%	7.02	(7.20)
EARNING PER SHARE	BAHT	15.29	(12.81)
LEVERAGE RATIO
DEBT RATIO	TIMES	0.41	0.36
DEBT TO EQUITY RATIO	TIMES	0.69	0.56
TIME INTEREST EARNED	TIMES	10.02	(8.86)
ANNUAL GROWTH
SALES GROWTH	%	109.54
OPERATING PROFIT	%	(266.80)
NET PROFIT	%	219.39
FIXED ASSETS	%	3.97
TOTAL ASSETS	%	22.55

PROFITABILITY RATIO

Gross Profit Margin	17.77	Acceptable	Industrial Average	27.11
Net Profit Margin	3.71	Impressive	Industrial Average	(3.27)
Return on Assets	7.02	Impressive	Industrial Average	1.42
Return on Equity	11.87	Impressive	Industrial Average	7.68

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 17.77%. 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 3.71%, 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 7.02%, 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 11.87%, 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	1.45	Deteriorated	Industrial Average	26.46
Quick Ratio	1.05
Cash Conversion Cycle	42.35

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 1.45 times in 2010, increased from 1.37 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 1.05 times in 2010, increased from 0.6 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 43 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.41	Impressive	Industrial Average	0.70
Debt to Equity Ratio	0.69	Impressive	Industrial Average	1.35
Times Interest Earned	10.02	Deteriorated	Industrial Average	450.39

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 10.03 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 0.41 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	4.82	Deteriorated	Industrial Average	11,608.56
Total Assets Turnover	1.89	Satisfactory	Industrial Average	2.05
Inventory Conversion Period	31.98
Inventory Turnover	11.41	Deteriorated	Industrial Average	23.74
Receivables Conversion Period	25.90
Receivables Turnover	14.09	Acceptable	Industrial Average	19.36
Payables Conversion Period	15.53

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.49.31
UK Pound	1	Rs.77.84
Euro	1	Rs.65.35

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.