MIRA INFORM REPORT

Report Date :

25.02.2012

IDENTIFICATION DETAILS

Name :	UNITED ALUMINIUM INDUSTRY CO., LTD.
Registered Office :	107 Moo 3, Raboaphai-Kokkwang Road, Nongprong, Srimahaphot, Prachinburi 25140
Country :	Thailand
Financials (as on) :	31.08.2011
Date of Incorporation :	12.09.1994
Com. Reg. No.:	0255537000235
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Exporter & Distributor of Aluminium Products
No. of Employees :	450

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

UNITED ALUMINIUM INDUSTRY CO., LTD.

SUMMARY

BUSINESS ADDRESS : 107 MOO 3, RABOAPHAI-KOKKWANG ROAD,

NONGPRONG, SRIMAHAPHOT,

PRACHINBURI 25140

TELEPHONE : [66] 37 209-232-4

FAX : [66] 37 209-230-1

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

sale@uai.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1994

REGISTRATION NO. : 0255537000235 [Former : POR JOR. 187]

CAPITAL REGISTERED : BHT. 770,000,000

CAPITAL PAID-UP : BHT. 770,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCALYEAR CLOSING DATE : AUGUST 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. KUMPOL PINIJSOPHONPHAN, THAI

PRESIDENT & MANAGING DIRECTOR

NO. OF STAFF : 450

LINES OF BUSINESS : ALUMINIUM PRODUCTS

MANUFACTURER, EXPORTER & 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 12, 1994 as a private limited company under the name style UNITED ALUMINIUM INDUSTRY CO., LTD., by Thai group, the Pinijsophonphan family. The subject’s business objective is a manufacturer wide range of aluminium extrusion and billet products, with the promotional privilege granted from Board of Investment. It currently employs approximate 450 staff.

In 2000, subject also received ISO 9002 certification for the production quality system.

The subject’s registered address is 107 Moo 3, Raboaphai-Kokkwang Rd., Nongprong, Srimahaphot, Prachinburi 25140, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Mr. Kumpol Pinijsophonphan

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Kumpol Pinijsophonphan is the President & Managing Director.

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

Mrs. Suparp Khamchantha is the Vice President [Finance].

She is Thai nationality.

Mr. Erick Hsu is the Assistant Vice President.

He is Chinese nationality.

Mr. Kris Boonsawad is the Service Manager.

He is Thai nationality.

Ms. Saeng-arpaporn Supakarndechakul is the Accounting Manager.

She is Thai nationality.

Mr. Anand Pisetpongsa is the Factory Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject’s activity is a manufacturing various sizes from 3” to 7” of Aluminium Billets, Aluminium Extrusion and Aluminium Plating Works. Range of products are as follows:

1. Aluminium Extrusion

· Melting/ casting

· Extruding

· Aging

· Anodizing and electro-coloring

· Powder coating

2. Aluminium Billet
• 4 stages melt cleaning process
• Fine grain size through rapid cooling DC casting
• Consistent alloy
• Accurate temperature cycle continous homogenising
3. Aluminium Alloy [ADC]
• Melting process chart for ingot ADC
• Aluminium-base alloys ingot for die casting
• Aluminium base alloys ingot for casting

PRODUCTION CAPACITY

4,200 tons/month by horizontal direct chill

280 tons/month by vertical direct chill

2,000 tons/month [extrusion works]

600 tons/month [plating works]

PURCHASE

Raw materials for processing such as ingot, billet and etc., are purchased from both local and overseas suppliers in Canada, South Africa, United States of America, Australia, Italy, Republic of China, Taiwan, Japan, France and Spain.

MAJOR SUPPLIERS

Company	Country	Products
Alcoa Ltd.	Canada	Aluminium Sheets
Comalco Ltd.	Australia	Aluminium Sheets

SALES [LOCAL]

40% of the products is sold locally by Soponpan Co., Ltd., the subject’s affiliated company

EXPORT [COUNTRIES]

60% of the products is exported to Germany, United Kingdom, Singapore, Myanmar, Japan, Taiwan, Australia, Africa, Hong Kong, U.S.A., Malaysia, Vietnam and Indonesia.

MAJOR CUSTOMERS

Company	Country
Soponpan Co., Ltd.	: Thailand
Ghip Aik Aluminium Pte. Ltd.	: Singapore
USD Metal Marketing Sdn. Bhd.	: Malaysia
Metales Extruidos S.A.	: Spain
Alphamet U K Ltd.	: United Kingdom
Alcan Nikkei Thai Ltd.	: Thailand
Alpha – Metal	: Thailand
GH Engineering Pte. Ltd.	: Singapore

SUBSIDIARIES & AFFILIATED COMPANIES

Soponpan Co., Ltd.

Business Type: Distributor of Aluminium Products

Tang Nam Chan Co., Ltd.

Business Type: Distributor of Aluminum Products

United Metal Works Co., Ltd.

Business Type: Manufacturer Aluminium Sheets

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 on the credits term of 30-60 days.

Exports are against L/C at sight & T/T.

BANKING

Bangkok Bank Public Co., Ltd.

[Bangplee Branch : Bangna-Trad Rd., Bangplee, Samutprakarn]

Kasikornbank Public Co., Ltd.

[Bangplee Branch : Bangna-Trad Rd., Bangplee, Samutprakarn]

[Daokanong Branch: Somdejphrachaotaksin Rd., Thonburi, Bangkok]

The Siam Commercial Bank Public Co., Ltd.

[Bangna - Trad Branch : Bnagna-Trad Rd., Bangna, Bangkok]

TMB Bank Public Co., Ltd.

[Bangplee Branch, Bangna-Trad Rd., Bangplee, Samutprakarn]

EMPLOYMENT

The subject employees 450 staff. [office staff and factory workers]

LOCATION DETAILS

The premise is owned for operating administrative office, factory and warehouse at the heading address. It is located in an industrial area.

Sales Office : 25/1 Moo 13, Bangna-Trad Rd., K.M. 11.7, Bangplee, Samutprakarn 10540.

Tel : [66] 2316-3636-43 Fax : [66] 2316-6754, 2316-4991

COMMENT

Due to strong demand of aluminum products in the past year due to economic improvement, subject has experienced with significantly grown of sales revenue in 2011 compared to the previous year. Economic continued improving in 2012 has a positive signs of industrial sector as well as demand of aluminum products is also soar.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 60 million, divided into 600,000 shares of Bht. 100 each.

The capital was increased later as followings :

Bht. 200,000,000 on January 10, 1995

Bht. 230,000,000 on January 9, 1997

Bht. 600,000,000 on July 30, 2002

Bht. 700,000,000 on June 30, 2004

Bht. 770,000,000 on January 24, 2011

The latest registered capital was increased to Bht. 770,000,000 divided into 7,700,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as of December 28, 2011]

NAME	HOLDING	%
Mr. Kumpol Pinijsophonphan Nationality: Thai Address : 25/1 Moo 13, Bangpleeyai, Bangplee, Samutprakarn	7,616,760	98.93
Mrs. Suphap Khamchantha Nationality: Thai Address : 25/1 Moo 13, Bangpleeyai, Bangplee, Samutprakarn	50,240	0.65
Mr. Kittipat Pinijsophonphan Nationality: Thai Address : 25/1 Moo 13, Bangpleeyai, Bangplee, Samutprakarn	11,000	0.14
Mr. Lersith Pinijsophonphan Nationality: Thai Address : 25/1 Moo 13, Bangpleeyai, Bangplee, Samutprakarn	11,000	0.14
Ms. Chalermmas Pinijsophonphan Nationality: Thai Address : 25/1 Moo 13, Bangpleeyai, Bangplee, Samutprakarn	11,000	0.14

Total Shareholders : 5

Share Structure [as at December 28, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	5	7,700,000	100.00
Foreign	-	-	-
Total	5	7,700,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mrs. Nimviboon Boonsombat No. 0125

BALANCE SHEET [BAHT]

The latest financial figures published for August 31, 2011 & 2010 were:

ASSETS

Current Assets	2011	2010
Cash and Cash Equivalents	65,997,246.46	51,668,074.32
Trade Accounts Receivable	486,264,051.94	478,204,808.65
Inventories	3,055,379,623.40	2,599,704,727.39
Other Current Assets	41,741,894.52	24,817,586.28
Total Current Assets	3,649,382,816.32	3,154,395,196.64
Fixed Assets	874,006,596.19	945,054,521.39
Other Assets	3,127,348.98	2,005,510.05
Total Assets	4,526,516,761.49	4,101,455,228.08

LIABILITIES & SHAREHOLDERS’ EQUITY

Current Liabilities	2011	2010
Bank Overdraft & Short-term Loan from Financial Institution	939,778,932.91	2,039,749,848.76
Trade Accounts & Notes Payable	2,494,875,377.93	1,424,301,295.67
Current Portion of Long-term Loan	238,320,000.00	226,320,000.00
Short-term Loan from Person or Related Company	40,030,000.00	62,000,000.00
Other Current Liabilities	44,113,902.65	13,462,904.67
Total Current Liabilities	3,757,118,213.49	3,765,834,049.10
Long-term Loan from Financial Institution	638,590,000.00	402,320,000.00
Total Liabilities	4,395,708,213.49	4,168,154,049.10
Shareholder’s Equity
Share capital : Baht 100 value Authorized & issued share capital 7,700,000 & 7,000,000 shares in 2011 & 2010 respectively	770,000,000.00	700,000,000.00
Capital Paid	770,000,000.00	700,000,000.00
Retained Earning [deficit]	[639,191,452.00]	[766,698,821.02]
Total Shareholders’ Equity	130,808,548.00	[66,698,821.02]
Total Liabilities & Shareholders’ Equity	4,526,516,761.49	4,101,455,228.08

PROFIT & LOSS ACCOUNT

Revenues	2011	2010
Sales Income	4,772,877,563.76	4,475,067,762.49
Less : Refundable Goods & Discount Paid	[8,982,078.54]	[4,522,468.88]
	4,763,895,485.22	4,470,545,293.61
Gain on Exchange Rate	49,086,863.84	64,581,808.41
Others Revenue	1,534,182.51	2,642,211.86
Total Revenues	4,814,516,531.57	4,537,769,313.88
Expenses
Cost of Goods Sold	4,321,991,781.57	4,035,111,037.30
Selling Expenses	93,997,371.76	115,942,593.98
Administrative Expenses	45,575,235.26	52,028,724.05
Other Expenses	3,126,369.14	5,740,021.86
Loss on Exchange Rate	53,708,683.46	33,843,254.18
Total Expenses	4,518,399,441.19	4,242,665,631.37
Profit [Loss] before Finance Cost & Income Tax	296,117,090.38	295,103,682.51
Finance Cost	[168,609,721.36]	[173,970,187.26]
Net Profit/[Loss]	127,507,369.02	121,133,495.25

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.97	0.84
QUICK RATIO	TIMES	0.15	0.14
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	5.45	4.73
TOTAL ASSETS TURNOVER	TIMES	1.05	1.09
INVENTORY CONVERSION PERIOD	DAYS	258.03	235.16
INVENTORY TURNOVER	TIMES	1.41	1.55
RECEIVABLES CONVERSION PERIOD	DAYS	37.26	39.04
RECEIVABLES TURNOVER	TIMES	9.80	9.35
PAYABLES CONVERSION PERIOD	DAYS	210.70	128.84
CASH CONVERSION CYCLE	DAYS	84.59	145.37
PROFITABILITY RATIO
COST OF GOODS SOLD	%	90.72	90.26
SELLING & ADMINISTRATION	%	2.93	3.76
INTEREST	%	3.54	3.89
GROSS PROFIT MARGIN	%	10.34	11.24
NET PROFIT MARGIN BEFORE EX. ITEM	%	6.22	6.60
NET PROFIT MARGIN	%	2.68	2.71
RETURN ON EQUITY	%	97.48	(181.61)
RETURN ON ASSET	%	2.82	2.95
EARNING PER SHARE	BAHT	16.56	17.30
LEVERAGE RATIO
DEBT RATIO	TIMES	0.97	1.02
DEBT TO EQUITY RATIO	TIMES	33.60	(62.49)
TIME INTEREST EARNED	TIMES	1.76	1.70
ANNUAL GROWTH
SALES GROWTH	%	6.56
OPERATING PROFIT	%	0.34
NET PROFIT	%	5.26
FIXED ASSETS	%	(7.52)
TOTAL ASSETS	%	10.36

PROFITABILITY RATIO

Gross Profit Margin	10.34	Impressive	Industrial Average	6.39
Net Profit Margin	2.68	Impressive	Industrial Average	0.93
Return on Assets	2.82	Impressive	Industrial Average	1.40
Return on Equity	97.48	Impressive	Industrial Average	3.82

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 10.34%. 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 2.68%, 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 2.82%, 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 97.48%, 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	0.97	Risky	Industrial Average	1.31
Quick Ratio	0.15
Cash Conversion Cycle	84.59

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 0.97 times in 2011, 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 0.15 times in 2011, increased from 0.14 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 85 days.

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

Current Ratio Downtrend

LEVERAGE RATIO

Debt Ratio	0.97	Acceptable	Industrial Average	0.59
Debt to Equity Ratio	33.60	Risky	Industrial Average	1.60
Times Interest Earned	1.76	Satisfactory	Industrial Average	1.82

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 1.76 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 0.97 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 Downtrend

Times Interest Earned Uptrend

ACTIVITY RATIO

Fixed Assets Turnover	5.45	Impressive	Industrial Average	3.91
Total Assets Turnover	1.05	Acceptable	Industrial Average	1.48
Inventory Conversion Period	258.03
Inventory Turnover	1.41	Deteriorated	Industrial Average	4.60
Receivables Conversion Period	37.26
Receivables Turnover	9.80	Impressive	Industrial Average	4.63
Payables Conversion Period	210.70

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

Fixed Assets Turnover Downtrend

Total Assets Turnover Downtrend

Inventory Turnover Downtrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.06
UK Pound	1	Rs.77.19
Euro	1	Rs.65.57

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.