MIRA INFORM REPORT

Report Date :

21.02.2012

IDENTIFICATION DETAILS

Name :	ASIA DYESTUFF INDUSTRIES CO., LTD.
Registered Office :	141 Rama 2 Road, [Thonburi-Pakthor] Jomthong, Bangkok 10150
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	12.10.1984
Com. Reg. No.:	0105527036921
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Exporter and Distributor of Dyestuff
No. of Employees :	125

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

Company name

ASIA DYESTUFF INDUSTRIES CO., LTD.

SUMMARY

BUSINESS ADDRESS : 141 RAMA 2 ROAD, [THONBURI-PAKTHOR]

JOMTHONG, BANGKOK 10150

TELEPHONE : [66] 2874-2021-3, 2874-2205-6

FAX : [66] 2427-5889

E-MAIL ADDRESS : adi@adithai.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1984

REGISTRATION NO. : 0105527036921 [Former : 3694/ 2527]

CAPITAL REGISTERED : BHT. 250,000,000

CAPITAL PAID-UP : BHT. 250,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. SOMPONG CHERNVIRIYAKUL, THAI

MANAGING DIRECTOR

NO. OF STAFF : 125

LINES OF BUSINESS : DYESTUFF

MANUFACTURER, EXPORTER 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 October 12, 1984 as a private limited company under the name style JEERAWAT DYESTUFF CO., LTD, by Thai group, Chernviriyakul family, in order to manufacture and market dyestuff and related chemicals for textile industry.

On April 2, 1990, the subject changed its name to ASIA DYESTUFF INDUSTRIES CO., LTD. It currently employs 125 staff.

The subject’s registered address was initially located at 455 Moo 3, Rama 2 Rd., Bangpakok, Rajburana, Bangkok 10140.

On October 28, 2009, its address has been changed to 141 Rama 2 Rd., [Thonburi-Pakthor], Jomthong, Bangkok 10150, by Jomthong District Office. However, both addresses are the same location, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name		Nationality	Age
Mr. Sompong Chernviriyakul	[x]	Thai	61
Ms. Malee Chernviriyakul	[x]	Thai	64
Mr. Rawat Chernviriyakul	[-]	Thai	34
Mr. Nateephat [Theera] Chernviriyakul		Thai	38
Mr. Varanthanat Chernviriyakul		Thai	43

Note.

Mr. Theera Chernviriyakul changed his name to Nateephat Chernviriyakul, on June 4, 2007.

AUTHORIZED PERSON

One of the mentioned directors [x] can sign or the director [-] can jointly sign with the rest directors on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Sompong Chernviriyakul is the Managing Director.

He is Thai nationality with the age of 61 years old.

Mr. Nateephat Chernviriyakul is the Marketing Manager.

He is Thai nationality with the age of 38 years old.

Mr. Rawat Chernviriyakul is the General Manager & Factory Manager.

He is Thai nationality with the age of 34 years old.

Ms. Ratchada Chernviriyakul is the Assistant Manager.

She is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing and marketing of dyestuff and related chemicals for textile and paper industries, under many brand names, “AKAPHOR”, “AKASOL”, “BENEFIX”, “ADIRON”, “BENECION”, “BENERECT”, “BENEFAST”, “BENERON”, “BENETEX”, “BENEWHITE”, and “BENETHRENE”.

Range of the product are as follows:

• Textile Industry: reactive dyes, direct dyes, disperse dyes, acid dyes, basic dyes, vat dyes, optical brighteners, and pigment emulsion.
• Paper Industry: liquid direct dyes and liquid optical brighteners.

PRODUCTION

20,000 tons/year

PURCHASE

Raw materials are purchased from suppliers and agents both domestic and overseas in Germany, India, Republic of China and Taiwan.

MAJOR SUPPLIERS

Tang Ti Hua Heng Co., Ltd. : Thailand

Suyog Limited : India

SALES [LOCAL]

55% of the products is sold locally by wholesale to manufacturers.

EXPORT

45% of the products is exported to Japan, Myanmar, Indonesia, Vietnam, Bangladesh, Pakistan, Egypt, Romania, Taiwan, India, Republic of China, Uzbekistan, U.S.A., Columbia and Peru.

RELATED COMPANIES

Asia Thai Trading Co., Ltd.

Business : Manufacturer of dyestuff.

Tang Ti Hua Heng Co., Ltd.

Business : Distributor of dyestuff and textile chemical.

Asia Kudos Associates Co., Ltd.

Business Type : Distributor of dyestuff.

TDC Industrial Co., Ltd.

Business Type : Real estate and land development.

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 credit term of 30-60 days.

Imports are by L/C on the credits term of 90-180 days or T/T.

Exports are against L/C at sight or on the credits term of 60-120 days or T/T.

BANKING

Bangkok Bank Public Co., Ltd.

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

Standard Chartered Bank [Thai] Public Co., Ltd.

[Head Office, 90 North Sathorn Rd., Silom, Bangrak, Bangkok]

EMPLOYMENT

The subject employs approximately 125 staff.

LOCATION DETAILS

The premise is owned for administrative office in a 6 storey building at the heading address. Premise is located in commercial/residential area.

Factory and warehouse are located at 71/1 Moo 6, Soi Ronggas, Rama 2 Rd., Thasai, Muang, Samutsakorn 74000. Tel. : [66] 34 815-431-3, Fax. : [66] 34 815-434.

REMARK

MAXIMUM CREDIT SHOULD BE GRANTED AT US$ 1,000,000.

COMMENT

The subject was formed in 1984 as a manufacturer, distributor and exporter of dyestuff and related chemicals for textile and paper industries. The products are mainly supplied to industrial users. However, floods in the large area of Bangkok has resulted to slowdown its business in the last quarter of 2011.

FINANCIAL INFORMATION

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

The capital was increased later as following:

Bht. 32,000,000 on October 25, 1985

Bht. 50,000,000 on April 10, 1987

Bht. 100,000,000 on October 14, 1987

Bht. 150,000,000 on August 20, 1990

Bht. 250,000,000 on January 27, 1994

The latest registered capital was increased to Bht. 250,000,000 divided into 2,500,000 shares of Bht. 100 each with fully paid.

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

NAME	HOLDING	%
Mr. Sompong Chernviriyakul Nationality: Thai Address : 71/1 Moo 6, Thasai, Muang, Samutsakorn	875,000	35.00
Mr. Rawat Chernviriyakul Nationality: Thai Address : 16/1 Chuaplerng Rd., Thungmahamek, Sathorn, Bangkok	425,000	17.00
Mr. Nateephat Chernviriyakul Nationality: Thai Address : 62/3 Moo 1, Thakham, Bangkhunthien, Bangkok	400,000	16.00
Mr. Varanthanat Chernviriyakul Nationality: Thai Address : 88/8 Moo 1, Rama 2 Rd., Thakam, Bangkhunthien, Bangkok	400,000	16.00
Mr. Piya Chernviriyakul Nationality: Thai Address : 62/3 Moo 1, Thakham, Bangkhunthien, Bangkok	400,000	16.00

Total Shareholders : 5

Share Structure [as at April 30, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	5	2,500,000	100.00
Foreign	-	-	-
Total	5	2,500,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Chusak Sinserikul No. 4621

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2010	2009
Cash and Cash Equivalents	4,591,670.66	2,888,494.33
Short-term Investment	7,000,000.00	-
Trade Accounts Receivable	42,456,115.59	32,369,540.98
Inventories	104,625,620.43	108,116,009.62
Other Current Assets	326,631.47	640,573.90
Total Current Assets	159,000,038.15	144,014,618.83
Fixed Assets	93,866,864.29	97,276,412.39
Other Assets	34,000.00	546,500.00
Total Assets	252,900,902.44	241,837,531.22

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Bank Overdraft & Short-term Loan from Bank	12,919,461.49	10,915,616.46
Trade Accounts Payable	13,719,396.15	5,356,516.18
Current Portion of Lease Contract Payable	628,755.84	698,859.01
Advance Income from Goods	484,195.47	716,254.02
Accrued Income Tax	467,167.00	308,734.00
Other Current Liabilities	2,125,449.43	1,551,066.31
Total Current Liabilities	30,344,425.38	19,547,045.98
Lease Contract Payable, net	-	628,755.84
Other Liabilities	30,000.00	71,271.17
Total Liabilities	30,374,425.38	20,247,072.99
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 2,500,000 shares	250,000,000.00	250,000,000.00
Capital Paid	250,000,000.00	250,000,000.00
Retained Earning - Unappropriated	[27,473,522.94]	[28,409,541.77]
Total Shareholders' Equity	222,526,477.06	221,590,458.23
Total Liabilities & Shareholders' Equity	252,900,902.44	241,837,531.22

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales	167,967,046.55	154,499,192.56
Other Income	1,842,692.35	1,740,452.35
Total Revenues	169,809,738.90	156,239,644.91
Expenses
Cost of Goods Sold	150,406,662.00	140,241,748.47
Selling Expenses	4,959,986.16	3,235,032.24
Administrative Expenses	12,195,603.58	10,858,706.02
Total Expenses	167,562,251.74	154,335,486.73
Profit before Finance Cost & Income Tax	2,247,487.16	1,904,158.18
Finance Cost	[551,301.33]	[1,256,689.94]
Profit before Income Tax	1,696,185.83	647,468.24
Income Tax	[760,167.00]	[571,734.00]
Net Profit / [Loss]	936,018.83	75,734.24

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	5.24	7.37
QUICK RATIO	TIMES	1.78	1.80
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	1.79	1.59
TOTAL ASSETS TURNOVER	TIMES	0.66	0.64
INVENTORY CONVERSION PERIOD	DAYS	253.90	281.39
INVENTORY TURNOVER	TIMES	1.44	1.30
RECEIVABLES CONVERSION PERIOD	DAYS	92.26	76.47
RECEIVABLES TURNOVER	TIMES	3.96	4.77
PAYABLES CONVERSION PERIOD	DAYS	33.29	13.94
CASH CONVERSION CYCLE	DAYS	312.87	343.92
PROFITABILITY RATIO
COST OF GOODS SOLD	%	89.55	90.77
SELLING & ADMINISTRATION	%	10.21	9.12
INTEREST	%	0.33	0.81
GROSS PROFIT MARGIN	%	11.55	10.35
NET PROFIT MARGIN BEFORE EX. ITEM	%	1.34	1.23
NET PROFIT MARGIN	%	0.56	0.05
RETURN ON EQUITY	%	0.42	0.03
RETURN ON ASSET	%	0.37	0.03
EARNING PER SHARE	BAHT	0.37	0.03
LEVERAGE RATIO
DEBT RATIO	TIMES	0.12	0.08
DEBT TO EQUITY RATIO	TIMES	0.14	0.09
TIME INTEREST EARNED	TIMES	4.08	1.52
ANNUAL GROWTH
SALES GROWTH	%	8.72
OPERATING PROFIT	%	18.03
NET PROFIT	%	1,135.93
FIXED ASSETS	%	(3.51)
TOTAL ASSETS	%	4.57

PROFITABILITY RATIO

Gross Profit Margin	11.55	Deteriorated	Industrial Average	25.03
Net Profit Margin	0.56	Impressive	Industrial Average	(1.41)
Return on Assets	0.37	Deteriorated	Industrial Average	2.25
Return on Equity	0.42	Deteriorated	Industrial Average	7.58

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 11.55%. 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 0.56%, 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. When compared with the industry average, it was lower, the company's figure is 0.37%.

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. When compared with the industry average, it was lower, the company's figure is 0.42%.

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	5.24	Deteriorated	Industrial Average	18.85
Quick Ratio	1.78
Cash Conversion Cycle	312.87

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 5.24 times in 2010, decreased from 7.37 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 1.78 times in 2010, decreased from 1.8 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 313 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.12	Impressive	Industrial Average	0.64
Debt to Equity Ratio	0.14	Impressive	Industrial Average	2.03
Times Interest Earned	4.08	Deteriorated	Industrial Average	609.62

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 4.08 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 0.12 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	1.79	Deteriorated	Industrial Average	3,447.02
Total Assets Turnover	0.66	Deteriorated	Industrial Average	1.61
Inventory Conversion Period	253.90
Inventory Turnover	1.44	Deteriorated	Industrial Average	18.76
Receivables Conversion Period	92.26
Receivables Turnover	3.96	Deteriorated	Industrial Average	9.76
Payables Conversion Period	33.29

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.49.21
UK Pound	1	Rs.77.75
Euro	1	Rs.64.58

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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