MIRA INFORM REPORT

Report Date :

24.01.2012

IDENTIFICATION DETAILS

Name :	JONG STIT CO., LTD.
Registered Office :	470 Bangkhunthien-Chaithalay Road, Samaedam, Bangkhunthien, Bangkok 10150
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	08.01.1980
Com. Reg. No.:	0105523000336
Legal Form :	Private Limited Company
Line of Business :	Manufacturing Service Textile
No. of Employees :	3,200

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
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

JONG STIT CO., LTD.

SUMMARY

ADDRESS : 470 BANGKHUNTHIEN-CHAITHALAY ROAD,

SAMAEDAM, BANGKHUNTHIEN,

BANGKOK 10150, THAILAND

TELEPHONE NO : [66] 2416-0112-8, 02416-1111

TELEFAX : [66] 2416-6320-3

E-MAIL ADDRESS : mkt@jongstit.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1980

REGISTRATION NO. : 0105523000336

CAPITAL REGISTERED : BHT. 1,150,000,000

CAPITAL PAID-UP : BHT. 1,150,000,000

SHAREJOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. SONGKRAM CHEEVAPRAWATDAMRONG, THAI

MANAGING DIRECTOR

NO. OF STAFF : 3,200

LINES OF BUSINESS : TEXTILE

MANUFACTURING SERVICE

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 January 8, 1980 as a private limited company under the registered name JONG STIT CO., LTD., by Thai Group, Cheevaprawatdamrong family, with the business objective to manufacture textile. It currently employs approximate 3,200 staff.

The subject is one of the top - five leading synthetic textile & fabric manufacturers in Thailand with experience over 60 years. From its origin in 1940, the subject has been an innovator in textile field and conducted its business with the purpose of growing into a notable organization.

The subject’s registered address was initially located at 34 Moo 1, Bangkhunthien-Chaithalay Rd., Samaedam, Bangkhunthien, Bangkok 10150.

On July 2, 2010, its registered address has been changed from “34 Moo 1” to “470” by the Bangkhunthien District Office, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name		Nationality	Age
Mr. Songkram Cheevaprawatdamrong	[x]	Thai	67
Mrs. Patcharaporn Laolikhitnant	[x]	Thai	64
Mrs. Oraphan Sathienkijampai		Thai	58
Ms. Siriwan Kongkaewrasamee		Thai	38

AUTHORIZED PERSON

One of the above directors [x] can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Songkram Cheevaprawatdamrong is the Managing Director.

He is Thai nationality with the age of 67 years old.

Mrs. Patcharaporn Laolikhitnant is the Deputy Managing Director.

She is Thai nationality with the age of 64 years old.

Mrs. Oraphan Sathienkijampai is the Deputy Managing Director [Finance & Account].

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

Ms. Siriwan Kongkaewrasamee is the Deputy Managing Director [Marketing].

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

Mr. Rungsan Charoenkijmongkol is the Assistant Managing Director [Production].

He is Thai nationality.

Mr. Prasit Theienprapa is the Special Project Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing wide range of knitted fabric and yarn products, as well as providing service of fabric & yarn dyeing and printing. The products and services are as follows:

• Knitted Fabric: single jersey, double jersey, fleece jacquard, high twist, interlock, mesh, ottoman, peach skin, pique, spandex and rib.
• Warp Knitted Fabric: tricot micro mesh, tricot micro brush, tricot dazzle, tricot half, tricot fancy, two way and net.
• Fleece Fabric: anti-piling fleece, micro fleece, printed fleece, boucle fleece, Sherpa fleece, velour fabric, high performance fleece / velour, chamois, marled, fancy, texture and pattern.
• Pile Fabric: polyester BOA, polyester BOA jacquard, acrylic BOA and high pile.
• Woven Fabric: dyeing fabric and printing fabric.
• Yarn: textured yarn, twisted yarn, spun yarn, acrylic yarn and chenille yarn.

PRODUCTION CAPACITY

Products	Production capacity
Yarn Spinning
Polyester
- Spun Yarn	1,800 Tons / Month
- Polyester Textured Yarn	9,000 Tons / Month
- Polyester Twisted Yarn	900 Tons / Month
Acrylic Yarn
- Acrylic Yarn	1,200 Tons / Month
Knitting
- Knitted Fabric	1,500 Tons / Month
- Tricot Fabric	1,500 Tons / Month
- Fleece Fabric	1,800 Tons / Month
- Pile Fabric	1,000 Tons / Month [2 Million Yards / Month]
Dyeing
- Yarn Dyeing	4,000 Tons / Month
- Fabric Dyeing	8,000 Tons / Month
- Woven Fabric Dyeing	700 Tons / Month

Printing
- Flat Screen	1.3 Million Yards / Month [200 Tons / Month]
- Transfer Printing	200,000 yards / Month [45 Tons / Month]
Home Textile
- Polyester Blanket	1,500,000 Pieces / Month
Fashinno - Apparels	600,000 Pieces / Month

IMPORT [COUNTRIES]

Machinery, power looms, polyester and acrylic yarn, cotton yarn and textile chemical

are imported from Taiwan, Germany, Japan, Singapore, Republic of China, United States of America and United Kingdom.

MAJOR SUPPLIER

Formosa Plastic Ltd. : Taiwan

Product : Polyester & acrylic fiber

SALES [LOCAL]

80% of products is sold locally to manufacturers and wholesalers.

EXPORT [COUNTRIES]

20% of its products is exported to United States of America, Australia, New Zealand, Hong Kong, Taiwan, Indonesia, Sri Lanka, Bangladesh, Canada, Egypt, India, Korea, Vietnam, Hungary, South America and Europe.

MAJOR CUSTOMERS

Textile Mart Co., Ltd. : Thailand

SUBSIDIARIES & AFFILIATED COMPANIES

Textile Mart Co., Ltd.

Business Type : Manufacturer of textiles

Fashion Hometex Co., Ltd.

Business Type: Manufacturer of blankets & apparel products.

Fashinno Co., Ltd.

Business Type: Manufacturer and exporter of garment.

Thai Polyester Co., Ltd.

Business Type: Manufacturer and distributor of polyester yarns.

Jong Stit Plush Co., Ltd.

Business Type: Manufacturer and distributor of textiles.

ASSOCIATION

The subject is a member of Federation of Thai Industries.

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 & T/T.

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

BANKING

Kasikornbank Public Co., Ltd

[Head Office : 1 Kasikorn Lane, Rajburana Rd., Rajburana, Bangkok]

[Phrapradaeng Branch : Poochaosamingprai Rd., Phrapradaeng, Samutprakarn]

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 3,200 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 industrial area.

Factories/Branches

- 993 Bangkhunthien-Chaithalay Rd., Samaedam, Bangkhunthien, Bangkok

- 993/1 Bangkhunthien-Chaithalay Rd., Samaedam, Bangkhunthien, Bangkok

- 136/1 Moo 1, Ekachai Rd., Kaeray, Krathumban, Samutsakorn

- 136/2 Moo 1, Ekachai Rd., Kaeray, Krathumban, Samutsakorn

- 888 Moo 1, Chachoengsao-Sattaheep Rd., Nongpaikaew, Banbueng, Chonburi

- 136 Moo 1, Ekachai Rd., Kaeray, Krathumban, Samutsakorn

- 97 Moo 1, Ekachai Rd., Kaeray, Krathumban, Samutsakorn

- 99 Moo 1, Ekachai Rd., Kaeray, Krathumban, Samutsakorn

- 136/3 Moo 1, Ekachai Rd., Kaeray, Krathumban, Samutsakorn

REMARK

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

COMMENT

The company is one of the top-five leading synthetic textile and fabric manufacturers in Thailand with long experience over 60 years.

It has been an innovator in textile field and conduct its business with continuous dedication in improving and developing a wide ranges of products including Yarns, Polyester fabrics, Pile fabrics [Toys and Garments] and Blankets.

The textile industry is currently shown signs of slowing down. Nevertheless, with the development of new production machinery and techniques and also the implementation of more efficient management methods, there are still opportunities for the company to maintain its high profile.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 20 million, divided into 200,000 shares of Bht. 100 each.

The capital was increased later as followings:

Bht. 120 million on June 17, 1991

Bht. 180 million on June 22, 1992

Bht. 250 million on October 4, 1993

Bht. 300 million on February 10, 1997

Bht. 800 million on December 23, 1998

Bht. 1,000 million on August 10, 2000

Bht. 1,150 million on March 30, 2004

The latest registered capital was increased to Bht. 1,150 million, divided into 11,500,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as of July 7, 2011]

NAME	HOLDING	%
Mrs. Patcharaporn Laolikhitnant Nationality: Thai Address : 33 Moo 1, Bangkhunthien-Chaithalay, Samaedam, Bangkhunthien, Bangkok	4,994,257	43.43
Mr. Torpong Cheevaprawatdamrong Nationality: Thai Address : 55 Moo 6, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok	3,834,350	33.34
Mr. Songkram Cheevaprawatdamrong Nationality: Thai Address : 55 Moo 6, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok	2,166,837	18.85
Big Mart Knitting Co., Ltd. Nationality: Thai Address : 99 Moo 1, Ekachai Rd., Kaerai, Krathumban, Samutsakorn	443,156	3.85
Ms. Tuenjit Cheevaprawatdamrong Nationality: Thai Address : 55 Moo 6, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok	30,100	0.26
Mr. Termsak Cheevaprawatdamrong Nationality: Thai Address : 55 Moo 6, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok	30,100	0.26
Others	1,200	0.01

Total Shareholders : 11

Share Structure [as at July 7, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	11	11,500,000	100.00
Foreign	-	-	-
Total	11	11,500,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mrs. Cholthicha Leelapanang No. 1815

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2010	2009
Cash and Cash Equivalents	194,759,818.34	172,938,548.29
Notes Receivable	84,524,411.23	62,624,200.87
Trade Accounts Receivable	580,916,458.55	481,113,852.47
Inventories	873,312,396.66	846,860,806.63
Revenue Department Receivable	7,432,866.11	16,936,343.25
Account Receivable - Related Company	98,041,033.52	268,726,031.24
Short-term Loan to Related Company	264,810,956.43	453,805,793.00
Custom Tax Compensation	8,943,419.18	11,148,410.67
Other Current Assets	5,551,902.50	30,851,194.79
Total Current Assets	2,118,293,262.52	2,345,005,181.21
Long-term Loan to Related Company	-	172,000,000.00
Fixed Assets	1,846,896,381.40	1,724,386,576.06
Revaluation Surplus on some Fixed Assets	646,862,164.06	667,752,142.33
Intangible Assets	191,021.19	259,668.54
Fixed Assets	4,000.00	4,000.00
Total Assets	4,612,246,829.17	4,909,407,568.14

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Trade Accounts Payable	485,070,373.31	404,725,359.26
Notes Payable	4,301,682.48	6,292,723.52
Trust Receipt Payable	-	52,752,331.22
Promissory Notes	1,190,000,000.00	1,470,000,000.00
Accrued Income Tax	4,612,161.14	2,854,805.75
Short-term Loan from Related Company	41,646,019.63	32,402,754.33
Current Portion of Long-term Liabilities	-	100,000,000.00
Other Current Liabilities	146,784,409.35	120,390,308.95
Total Current Liabilities	1,872,414,645.91	2,189,418,283.03
Total Liabilities	1,872,414,645.91	2,189,418,283.03
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 11,500,000 shares	1,150,000,000.00	1,150,000,000.00
Capital Paid	1,150,000,000.00	1,150,000,000.00
Surplus on Share Capital	300,000,000.00	300,000,000.00
Retained Earning - Unappropriated	642,970,019.20	602,237,142.78
Surplus on Revaluation of Assets	646,862,164.06	667,752,142.33
Total Shareholders' Equity	2,739,832,183.26	2,719,989,285.11
Total Liabilities & Shareholders' Equity	4,612,246,829.17	4,909,407,568.14

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales & Services - Domestic	5,531,175,474.44	4,671,516,153.18
Sales - Overseas	1,778,682,022.34	1,526,636,675.00
Custom Duty Compensation	11,746,729.54	23,399,701.62
Interest Income	7,536,367.92	11,302,021.95
Other Income	34,227,205.23	100,327,141.25
Gain on Disposal of Assets	8,337,018.28	5,088,348.76
Gain / [Loss] on Exchange Rate	[17,352,057.03]	10,042,778.47
Total Revenues	7,354,352,760.72	6,348,312,820.23
Expenses
Cost of Goods Sold & Services	6,996,725,112.45	5,982,344,010.63
Selling Expenses	175,588,842.67	176,106,113.71
Administrative Expenses	97,289,687.62	116,290,563.51
Total Expenses	7,269,603,642.74	6,274,740,687.85
Profit before Financial Cost & Income Tax	84,749,117.98	73,572,132.38
Financial Cost	[31,860,633.11]	[42,296,904.76]
Profit before Income Tax	52,888,484.87	31,275,227.62
Income Tax	[12,155,608.45]	[11,648,252.22]
Net Profit / [Loss]	40,732,876.42	19,626,975.40

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.13	1.07
QUICK RATIO	TIMES	0.46	0.33
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	3.96	3.59
TOTAL ASSETS TURNOVER	TIMES	1.58	1.26
INVENTORY CONVERSION PERIOD	DAYS	45.56	51.67
INVENTORY TURNOVER	TIMES	8.01	7.06
RECEIVABLES CONVERSION PERIOD	DAYS	29.01	28.33
RECEIVABLES TURNOVER	TIMES	12.58	12.88
PAYABLES CONVERSION PERIOD	DAYS	25.30	24.69
CASH CONVERSION CYCLE	DAYS	49.26	55.31
PROFITABILITY RATIO
COST OF GOODS SOLD	%	95.72	96.52
SELLING & ADMINISTRATION	%	3.73	4.72
INTEREST	%	0.44	0.68
GROSS PROFIT MARGIN	%	4.89	5.90
NET PROFIT MARGIN BEFORE EX. ITEM	%	1.16	1.19
NET PROFIT MARGIN	%	0.56	0.32
RETURN ON EQUITY	%	1.49	0.72
RETURN ON ASSET	%	0.88	0.40
EARNING PER SHARE	BAHT	3.54	1.71
LEVERAGE RATIO
DEBT RATIO	TIMES	0.41	0.45
DEBT TO EQUITY RATIO	TIMES	0.68	0.80
TIME INTEREST EARNED	TIMES	2.66	1.74
ANNUAL GROWTH
SALES GROWTH	%	17.94
OPERATING PROFIT	%	15.19
NET PROFIT	%	107.54
FIXED ASSETS	%	7.10
TOTAL ASSETS	%	(6.05)

PROFITABILITY RATIO

Gross Profit Margin	4.89	Deteriorated	Industrial Average	17.49
Net Profit Margin	0.56	Impressive	Industrial Average	(3.34)
Return on Assets	0.88	Impressive	Industrial Average	(1.37)
Return on Equity	1.49	Acceptable	Industrial Average	2.77

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 4.89%. 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 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. Return on Assets ratio is 0.88%, 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. When compared with the industry average, it was lower, the company's figure is 1.49%.

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

Return on Assets Downtrend

Return on Equity Uptrend

LIQUIDITY RATIO

Current Ratio	1.13	Deteriorated	Industrial Average	23.12
Quick Ratio	0.46
Cash Conversion Cycle	49.26

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 1.13 times in 2010, increased from 1.07 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 0.46 times in 2010, increased from 0.33 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 50 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	1.60
Debt to Equity Ratio	0.68	Impressive	Industrial Average	1.98
Times Interest Earned	2.66	Deteriorated	Industrial Average	188.26

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 2.66 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	3.96	Deteriorated	Industrial Average	6,997.23
Total Assets Turnover	1.58	Satisfactory	Industrial Average	1.68
Inventory Conversion Period	45.56
Inventory Turnover	8.01	Impressive	Industrial Average	7.86
Receivables Conversion Period	29.01
Receivables Turnover	12.58	Satisfactory	Industrial Average	14.16
Payables Conversion Period	25.30

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.50.24
UK Pound	1	Rs.78.13
Euro	1	Rs.64.79

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.