MIRA INFORM REPORT

Report Date :

22.02.2012

IDENTIFICATION DETAILS

Name :	IMCO PACK CORPORATION LIMITED
Registered Office :	588/85 Sathupradit Road, Bangpongpang, Yannawa, Bangkok 10120
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	27.10.1983
Com. Reg. No.:	0105526045276
Legal Form :	Private Limited Company
Line of Business :	Manufacturer and Contractor of Plastic Packaging Products
No. of Employees :	1,300

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

IMCO PACK CORPORATION LIMITED

SUMMARY

BUSINESS ADDRESS : 588/85 SATHUPRADIT ROAD, BANGPONGPANG,

YANNAWA, BANGKOK 10120, THAILAND

TELEPHONE : [66] 2295-4926-30, 2294-2122-5

FAX : [66] 2294-3782

E-MAIL ADDRESS : webmaster@impack.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1983

REGISTRATION NO. : 0105526045276 [Former : 4532/2526]

CAPITAL REGISTERED : BHT. 200,000,000

CAPITAL PAID-UP : BHT. 200,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. NATTAYUTH PHANRATANAMONGKOL, THAI

MANAGING DIRECTOR

NO. OF STAFF : 1,300

LINES OF BUSINESS : PLASTIC PACKAGING PRODUCTS

MANUFACTURER AND CONTRACTOR

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 October 27, 1983 as a private limited company under the name style IMCO PACK CORPORATION LIMITED, by Thai groups, the Phanratanamongkol family, with the business objective to manufacture various kinds of plastic packaging products for domestic market. It currently employs approximate 1,300 staff. It achieved the standard ISO 14001 : 2004 certification by SGS, on March 22, 2010.

The subject’s registered address is 588/85 Sathupradit Rd., Bangpongpang, Yannawa, Bangkok 10120, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name	Nationality	Age
Mr. Vibul Phanratanamongkol	Thai	71
Mr. Yuthana Phanratanamongkol	Thai	56
Mr. Nathapong Phanratanamongkol	Thai	54
Mr. Nattayuth [Jenwuth] Phanratanamongkol	Thai	65

Note.

Mr. Nattayuth changed his name from Mr. Jenwuth on March 9, 2011.

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Nattayuth [Former: Jenwuth] Phanratanamongkol is the Managing Director.

He is Thai nationality with the age of 65 years old.

Mr. Yuthana Phanratanamongkol is the Deputy Managing Director and Factory Manager.

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

Mr. Nathapong Phanratanamongkol is the Deputy Managing Director and Sales & Marketing Manager.

He is Thai nationality with the age of 54 years old.

Ms. Naruemol Phanratanamongkol is the Administration Manager.

She is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing and servicing various kinds of plastic packaging products, mainly for cosmetics, foods & beverages, household goods, pharmaceuticals and consumer goods, according to customer’s requirement.

PURCHASE

Raw materials are purchased from suppliers and agents in both domestic and overseas, mainly Germany, Japan, Taiwan, Republic of China, Singapore and Malaysia.

SALES/SERVICES

80% of the products is sold locally to manufacturers and end-users, the remaining 20% is exported to U.S.A., and Singapore.

MAJOR CUSTOMER

Marietta LA-PAC Inc. : U.S.A.

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.

EMPLOYMENT

The subject employs 1,300 staff. [office, sales staff and factory workers]

LOCATION DETAILS

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

Factories are as the followings:

· 588/57 Sathupradit Rd., Bangpongpang, Yannawa, Bangkok 10120.

· 576/84 Sathupradit Rd., Bangpongpang, Yannawa, Bangkok 10120.

· 576/76 Sathupradit Rd., Bangpongpang, Yannawa, Bangkok 10120.

· 92/17 Moo 7, Bangna-Trad Rd., Bangchalong, Bangplee, Samutprakarn 10540.

Tel. [66] 2750-9494, Fax. [66] 2750-9496.

REMARK

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

COMMENT

The subject has been enjoying an outstanding performance in the past several years. Consumption growth of variety products has currently resulted to strong sales. Subject’s high quality standard manufacturing has convinced various industries to source the products from the company.

FINANCIAL INFORMATION

The capital was registered at Bht. 15,000,000 divided into 15,000 shares of Bht. 1,000 each.

The capital was increased later as following:

Bht. 45,000,000 on August 25, 1988

Bht. 200,000,000 on June 25, 1999

The latest registered capital was increased to Bht. 200,000,000 divided into 200,000 shares of Bht. 1,000 each with fully paid.

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

NAME	HOLDING	%
Mr. Vibul Phanratanamongkol Nationality: Thai Address : 8 Moo 2, Nongbon, Praves, Bangkok	99,999	50.00
Mr. Nattayuth Phanratanamongkol Nationality: Thai Address : 627-9 Sathupradit Rd., Bangpongpang, Yannawa, Bangkok	30,000	15.00
Mr. Yuthana Phanratanamongkol Nationality: Thai Address : 58/44 Chuaplerng Rd., Chongnonsi, Yannawa, Bangkok	27,000	13.50
Mr. Nathapong Phanratanamongkol Nationality: Thai Address : 588/85 Sathupradit Rd., Bangpongpang, Yannawa, Bangkok	27,000	13.50
Mrs. Ajchara Phanratanamongkol Nationality: Thai Address : 600/77 Sathupradit Rd., Bangpongpang, Yannawa, Bangkok	10,000	5.00
Ms. Naruemol Phanratanamongkol Nationality: Thai Address : 28/40 Moo 8, Bangmod, Jomthong, Bangkok	6,000	3.00
Mr. Udomsak Phanratanamongkol Nationality: Thai Address : 8 Moo 2, Nongbon, Praves, Bangkok	1	-

Total Shareholders : 7

Share Structure [as at April 30, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	200,000	100.00
Foreign	-	-	-
Total	7	200,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Opas Sroymanee No. 0519

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2010	2009
Cash in hand & at Bank	149,736,147.77	60,138,828.54
Trade Accounts Receivable	497,917,876.70	397,804,271.14
Inventories	196,432,428.69	146,728,806.93
Other Current Assets	91,503,006.58	39,286,410.88
Total Current Assets	935,589,459.74	643,958,317.49
Long-term Investment	20,000,000.00	20,000,000.00
Fixed Assets	889,052,657.22	943,813,539.80
Other Assets	22,092,972.03	2,639,093.14
Total Assets	1,866,735,088.99	1,610,410,950.43

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Bank Overdraft & Short-term Loan from Financial Institution	36,288,313.37	30,382,832.60
Trade Accounts Payable	491,815,372.44	327,027,910.57
Current Portion of Long-term Loans	449,600,000.00	321,061,433.64
Other Current Liabilities	65,893,422.92	84,775,118.70
Total Current Liabilities	1,043,597,108.73	763,247,295.52
Total Liabilities	1,043,597,108.73	763,247,295.52
Shareholders' Equity
Share capital : Baht 1,000 par value authorized, issued and fully paid share capital 200,000 shares	200,000,000.00	200,000,000.00
Capital Paid	200,000,000.00	200,000,000.00
Retained Earning Appropriated for Statutory Reserve	20,000,000.00	20,000,000.00
Unappropriated	603,137,980.26	627,163,654.91
Total Shareholders' Equity	823,137,980.26	847,163,654.91
Total Liabilities & Shareholders' Equity	1,866,735,088.99	1,610,410,950.43

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales	2,587,775,656.43	2,253,464,403.28
Other Income	83,562,406.55	89,298,865.15
Total Revenues	2,671,338,062.98	2,342,763,268.43
Expenses
Cost of Goods Sold	2,278,889,667.02	1,971,194,427.78
Selling Expenses	132,371,108.00	131,175,618.84
Administrative Expenses	11,901,961.61	14,653,886.98
Other Expenses	21,030,666.42	6,532,833.42
Total Expenses	2,444,193,403.05	2,123,556,767.02
Profit / [Loss] before Financial Cost & Income Tax	227,144,659.93	219,206,501.41
Financial Cost	[9,856,066.93]	[8,665,738.62]
Profit / [Loss] before Income Tax	217,288,593	210,540,762.79
Income Tax	[41,314,267.64]	[39,361,401.66]
Net Profit / [Loss]	175,974,325.36	171,179,361.13

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.90	0.84
QUICK RATIO	TIMES	0.62	0.60
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	2.91	2.39
TOTAL ASSETS TURNOVER	TIMES	1.39	1.40
INVENTORY CONVERSION PERIOD	DAYS	31.46	27.17
INVENTORY TURNOVER	TIMES	11.60	13.43
RECEIVABLES CONVERSION PERIOD	DAYS	70.23	64.43
RECEIVABLES TURNOVER	TIMES	5.20	5.66
PAYABLES CONVERSION PERIOD	DAYS	78.77	60.55
CASH CONVERSION CYCLE	DAYS	22.92	31.05
PROFITABILITY RATIO
COST OF GOODS SOLD	%	88.06	87.47
SELLING & ADMINISTRATION	%	5.58	6.47
INTEREST	%	0.38	0.38
GROSS PROFIT MARGIN	%	15.17	16.49
NET PROFIT MARGIN BEFORE EX. ITEM	%	8.78	9.73
NET PROFIT MARGIN	%	6.80	7.60
RETURN ON EQUITY	%	21.38	20.21
RETURN ON ASSET	%	9.43	10.63
EARNING PER SHARE	BAHT	879.87	855.90
LEVERAGE RATIO
DEBT RATIO	TIMES	0.56	0.47
DEBT TO EQUITY RATIO	TIMES	1.27	0.90
TIME INTEREST EARNED	TIMES	23.05	25.30
ANNUAL GROWTH
SALES GROWTH	%	14.84
OPERATING PROFIT	%	3.62
NET PROFIT	%	2.80
FIXED ASSETS	%	(5.80)
TOTAL ASSETS	%	15.92

PROFITABILITY RATIO

Gross Profit Margin	15.17	Satisfactory	Industrial Average	16.05
Net Profit Margin	6.80	Impressive	Industrial Average	(0.40)
Return on Assets	9.43	Impressive	Industrial Average	2.62
Return on Equity	21.38	Impressive	Industrial Average	9.19

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 15.17%. 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 6.8%, 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 is 9.43%, 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 21.38%, 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	0.90	Risky	Industrial Average	13.70
Quick Ratio	0.62
Cash Conversion Cycle	22.92

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 0.9 times in 2010, increased from 0.84 times, then the company may have problems meeting its short-term obligations. 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 0.62 times in 2010, increased from 0.6 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 23 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.56	Impressive	Industrial Average	1.04
Debt to Equity Ratio	1.27	Satisfactory	Industrial Average	1.87
Times Interest Earned	23.05	Deteriorated	Industrial Average	207.95

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 23.05 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 0.56 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 Uptrend

Times Interest Earned Uptrend

ACTIVITY RATIO

Fixed Assets Turnover	2.91	Deteriorated	Industrial Average	17,489.13
Total Assets Turnover	1.39	Acceptable	Industrial Average	2.05
Inventory Conversion Period	31.46
Inventory Turnover	11.60	Acceptable	Industrial Average	18.09
Receivables Conversion Period	70.23
Receivables Turnover	5.20	Deteriorated	Industrial Average	15.18
Payables Conversion Period	78.77

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.49.08
UK Pound	1	Rs.77.80
Euro	1	Rs.65.17

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.