MIRA INFORM REPORT

Report Date :

13.07.2012

IDENTIFICATION DETAILS

Name :	C.A. GLOBAL STAINLESS CO., LTD
Registered Office :	392 Rama 2 Road, Samaedam, Bangkhunthien, Bangkok 10150
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	2000
Com. Reg. No.:	0105543003811
Legal Form :	Private Limited Company
Line of Business :	Distributor of Steels and Related Products
No. of Employees :	25

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 (31.12.2011)	Current Rating (31.03.2012)
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

C.A. GLOBAL STAINLESS CO., LTD.

SUMMARY

BUSINESS ADDRESS : 392 RAMA 2 ROAD, SAMAEDAM, BANGKHUNTHIEN,

BANGKOK 10150, THAILAND

TELEPHONE : [66] 2415-5566, 2415-8700, 2415-8001-6

FAX : [66] 2895-8544-5

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2000

REGISTRATION NO. : 0105543003811

TAX ID NO. : 3030027542

CAPITAL REGISTERED : BHT. 150,000,000

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

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MRS. THANYAPAK CHARUPAISANKIJ, THAI

MANAGING DIRECTOR

NO. OF STAFF : 25

LINES OF BUSINESS : STEELS AND RELATED PRODUCTS

DISTRIBUTOR

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 12, 2000 as a private limited company under the name style C.A. GLOBAL STAINLESS CO., LTD. by Thai groups. Its business objective is to distribute steels and related products for local market. It currently employs 25 staff.

The subject’s registered address was 9/114 Moo 5, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok 10150.

In 2010, the registered address was changed from “9/114 Moo 5” to “392” by the Government district office, actually both are the same location. This is also the company’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mrs. Thanyapak Charupaisankij [Former : Mrs. Arporn Manakarnkha]	[x]	Thai	56
Mr. Charun Charupaisankij		Thai	52
Mr. Supachai Charupaisankij	[+]	Thai	35
Mr. Supasith Charupaisankij	[-]	Thai	34
Ms. Thipatsita [Montinee] Charupaisankij	[-]	Thai	32
Mrs. Monteeya [Montira] Charupaisankij	[-]	Thai	38
Mrs. Ketaya [Manita] Charupaisankij	[-]	Thai	26

Note:

1. Mrs. Thanyapak Charupaisankij changed her name from

Mrs. Arporn Manakarnkha on May 23, 2012.

2. Ms. Thipatsita Charupaisankij changed her name from

Ms. Montinee Charupaisankij on April 30, 2012.

3. Mrs. Monteeya Charupaisankij changed her name from

Mrs. Montira Charupaisankij on April 27, 2012.

3. Mrs. Ketaya Charupaisankij changed her name from

Mrs. Manita Charupaisankij on April 30, 2012.

AUTHORIZED PERSON

Director [x] can jointly sign with director [+] or the director [+] can jointly sign with one of the directors [-] on behalf of the subject with company’s affixed.

MANAGEMENT

Mrs. Thanyapak Charupaisankij is the Managing Director.

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

BUSINESS OPERATIONS

The subject is a distributor of steels and related products such as stainless steel sheet, hot rolled steel sheet, carbon steel, cold rolled steel sheet, steel plate, deformed bar, I-beam, H-beam, flat bar, angle bar, stainless steel tubes and pipes, stainless steel round bars and etc.

PURCHASE

100% of the products is purchased from local suppliers.

MAJOR SUPPLIERS

Sahaviriya Steel Industries Public Co., Ltd.

LPN Plate Mill Public Co., Ltd.

Bangkok Special Steel Co., Ltd.

Thai Metal Trade Public Co., Ltd.

SALES

100% of the products is sold locally to wholesalers, retailers and end-users.

RELATED AND AFFILIATED COMPANY

Thai Fitting & Stainless Co., Ltd.

Business Type : Distributor of fittings and stainless products

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.

BANKING

Bangkok Bank Public Co., Ltd.

Siam Commercial Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 25 staff.

LOCATION DETAILS

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

COMMENT

The subject was formed in 2000 as a distributor of steels and metal products. Its products are for construction users. Consumption of steels depending upon construction market, which is currently growing constantly. Subject disclosed slightly drop of sales revenue in 2011 compared to the previous year. However growth of construction sector has seen since the beginning of 2012.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 3,000,000 divided into 3,000 shares of Bht. 1,000 each.

On November 8, 2002 the capital was increased to Bht. 50,000,000 divided into 50,000 shares of Bht. 1,000 each.

On November 12, 2010 the latest registered capital was increased to Bht. 150,000,000 divided into 150,000 shares of Bht. 1,000 with fully paid.

THE SHAREHOLDERS LISTED WERE [as at May 3, 2012]

NAME	HOLDING	%
Mrs. Thanyapak Charupaisankij Nationality: Thai Address : 37/115 Moo 4, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok	25,000	16.67
Mr. Charun Charupaisankij Nationality: Thai Address : 37/115 Moo 4, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok	25,000	16.67
Mrs. Monteeya Charupaisankij Nationality: Thai Address : 9/114 Moo 5, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok	20,000	13.33
Ms. Thipatsita Charupaisankij Nationality: Thai Address : 9/114 Moo 5, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok	20,000	13.33
Mr. Supasith Charupaisankij Nationality: Thai Address : 9/114 Moo 5, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok	20,000	13.33
Mrs. Ketaya Charupaisankij Nationality: Thai Address : 392 Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok	20,000	13.33
Mr. Supachai Charupaisankij Nationality: Thai Address : 415/7 Mahapruektharam Rd., Mahapruektharam, Bangrak, Bangkok	20,000	13.34

Total Shareholders : 7

Share Structure [as at May 3, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	150,000	100.00
Foreign	-	-	-
Total	7	150,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Chatchai Phyakarintarangura No. 5398

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2011	2010
Cash and Cash Equivalent	483,782	325,969
Trade Accounts Receivable	172,726,536	272,930,605
Inventories	288,577,436	160,233,823
Other Current Assets	6,413,136	618,509
Total Current Assets	468,200,890	434,108,906
Fixed Assets	131,378,277	133,923,550
Other Assets	147,600	147,600
Total Assets	599,726,767	568,180,056

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2011	2010
Bank Overdraft & Short-term Loan from Financial Institution	376,232,301	358,113,066
Trade Accounts Payable	34,943,284	13,961,348
Short-term Loan from Director	27,894,788	55,460,000
Other Current Liabilities	2,312,992	404,009
Total Current Liabilities	441,383,365	427,938,423
Total Liabilities	441,383,365	427,938,423
Shareholders' Equity
Share capital : Baht 1,000 par value authorized, issued and fully paid share capital 150,000 shares	150,000,000	150,000,000
Capital Paid	150,000,000	150,000,000
Statutory Reserve	5,000,000	5,000,000
Retained Earning- Unappropriated	3,343,402	[14,758,367]
Total Shareholders' Equity	158,343,402	140,241,633
Total Liabilities & Shareholders' Equity	599,726,767	568,180,056

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Sales Income	896,102,721	951,380,616
Gain on Disposal of Assets	9,999	647,422
Gain on Exchange Rate	-	9,878,281
Other Income	478,187	40,660
Total Revenues	896,590,907	961,946,979
Expenses
Cost of Goods Sold	835,964,126	873,575,987
Selling Expenses	3,562,890	3,873,780
Administrative Expenses	18,487,682	14,495,530
Other Expenses	11,477,191	-
Total Expenses	869,491,889	891,945,297
Profit before Financial Cost	27,099,018	70,001,682
Financial Cost	[8,997,249]	[6,494,989]
Net Profit / [Loss]	18,101,769	63,506,693

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.06	1.01
QUICK RATIO	TIMES	0.39	0.64
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	6.82	7.10
TOTAL ASSETS TURNOVER	TIMES	1.49	1.67
INVENTORY CONVERSION PERIOD	DAYS	126.00	66.95
INVENTORY TURNOVER	TIMES	2.90	5.45
RECEIVABLES CONVERSION PERIOD	DAYS	70.35	104.71
RECEIVABLES TURNOVER	TIMES	5.19	3.49
PAYABLES CONVERSION PERIOD	DAYS	15.26	5.83
CASH CONVERSION CYCLE	DAYS	181.10	165.83
PROFITABILITY RATIO
COST OF GOODS SOLD	%	93.29	91.82
SELLING & ADMINISTRATION	%	2.46	1.93
INTEREST	%	1.00	0.68
GROSS PROFIT MARGIN	%	6.77	9.29
NET PROFIT MARGIN BEFORE EX. ITEM	%	3.02	7.36
NET PROFIT MARGIN	%	2.02	6.68
RETURN ON EQUITY	%	11.43	45.28
RETURN ON ASSET	%	3.02	11.18
EARNING PER SHARE	BAHT	120.68	423.38
LEVERAGE RATIO
DEBT RATIO	TIMES	0.74	0.75
DEBT TO EQUITY RATIO	TIMES	2.79	3.05
TIME INTEREST EARNED	TIMES	3.01	10.78
ANNUAL GROWTH
SALES GROWTH	%	(5.81)
OPERATING PROFIT	%	(61.29)
NET PROFIT	%	(71.50)
FIXED ASSETS	%	(1.90)
TOTAL ASSETS	%	5.55

PROFITABILITY RATIO

Gross Profit Margin	6.77	Impressive	Industrial Average	5.79
Net Profit Margin	2.02	Impressive	Industrial Average	0.48
Return on Assets	3.02	Impressive	Industrial Average	1.11
Return on Equity	11.43	Impressive	Industrial Average	3.23

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. Gross Profit Margin is 6.77%. 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. Net Profit Margin ratio is 2.02%, 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 3.02%, 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 11.43%, 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.

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	1.06	Satisfactory	Industrial Average	1.24
Quick Ratio	0.39
Cash Conversion Cycle	181.10

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 1.06 times in 2011, increase from 1.01 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 0.39 times in 2011, decrease from 0.64 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 182 days.

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

Current Ratio Downtrend

LEVERAGE RATIO

Debt Ratio	0.74	Acceptable	Industrial Average	0.66
Debt to Equity Ratio	2.79	Risky	Industrial Average	2.11
Times Interest Earned	3.01	Impressive	Industrial Average	1.43

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 3.02 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 0.74 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 Downtrend

ACTIVITY RATIO

Fixed Assets Turnover	6.82	Satisfactory	Industrial Average	8.97
Total Assets Turnover	1.49	Acceptable	Industrial Average	2.33
Inventory Conversion Period	126.00
Inventory Turnover	2.90	Acceptable	Industrial Average	5.23
Receivables Conversion Period	70.35
Receivables Turnover	5.19	Satisfactory	Industrial Average	5.70
Payables Conversion Period	15.26

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.55.70
UK Pound	1	Rs.86.28
Euro	1	Rs.68.15

INFORMATION DETAILS

Report Prepared by :

SDA

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.