MIRA INFORM REPORT

Report Date :

13.07.2012

IDENTIFICATION DETAILS

Name :	D.K. TODAY COMPANY LIMITED
Registered Office :	15/234 Soi Suayai-Uthit, Ratchadapisek Road, Chankasem, Jatujak, Bangkok 10900,
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	16.06.1982
Com. Reg. No.:	0105525020903
Legal Form :	Private Limited Company
Line of Business :	Importer and Distributor of Books
No. of Employees :	120

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 – March 31^st, 2012

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

D.K. TODAY COMPANY LIMITED

SUMMARY

BUSINESS ADDRESS : 15/234 SOI SUAYAI-UTHIT, RATCHADAPISEK ROAD,

CHANKASEM, JATUJAK,

BANGKOK 10900, THAILAND

TELEPHONE : [66] 2541-7375, 2930-6215

FAX : [66] 2541-7377, 2930-7733

E-MAIL ADDRESS : marketing@dktoday.net

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1982

REGISTRATION NO. : 0105525020903 [Former : 2091/2525]

TAX ID NO. : 3101190564

CAPITAL REGISTERED : BHT. 3,000,000

CAPITAL PAID-UP : BHT. 3,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. THARES KEEREE, THAI

MANAGING DIRECTOR

NO. OF STAFF : 120

LINES OF BUSINESS : BOOKS

IMPORTER 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 June 16, 1982 as a private limited company under the name style D.K. TODAY COMPANY LIMITED by Thai groups, in order to import and distribute a variety of books and magazines to local market. It currently employs approximate 120 staff.

The subject’s registered address was initially located at 90/21-25 Rajprarop Rd., Makkasan, Phyathai, Bangkok 10400.

On January 25, 2005, it was relocated to 15/234 Soi Suayai-uthit Rd., Ratchadapisek Rd., Chankasem, Jatujak, Bangkok 10900, and this is the company’s current operation address.

THE BOARD OF DIRECTORS

Name	Nationality	Age
Ms. Bang-orn Srisaluaykul	Thai	37
Mr. Thares Keeree	Thai	51
Mrs. Yupadee Keeree	Thai	52

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Thares Keeree is the Managing Director.

He is Thai nationality with the age of 51 years old.

Mrs. Yupadee Keeree is the Assistant Managing Director.

She is Thai nationality with the age of 52 years old.

Ms. Bang-orn Srisaluaykul is the Accounting Manager.

She is Thai nationality with the age of 37 years old.

Mr. Krisada Phumdee is the Sales & Marketing Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing a wide range of books and magazines including online book shop. The products are about ELT and textbooks, such as computer, dictionary for international languages, writing, novel, international language, travel, food and cooking, health, management, psychology, philosophy, technical, fashion, architecture, decorative, flower, garden, scientific, arts, crafts, automobile, bibliography, autobiography, education, map and etc.

PURCHASE

60% of the products is purchased from local suppliers, and the rest 40% is imported from United Kingdom, France, Italy, Germany, Korea, Australia, Japan, Singapore, Republic of China and United States of America.

MAJOR SUPPLIERS

The Oxford University Press : United Kingdom

Pearson Education Indochina Ltd. : Thailand

Sammertown Publishing Ltd. : U.K.

Macmillan Publishers Ltd. : U.K.

Macmillan [ELT] : United States of America

Dolphin Publishing Co., Ltd. : Thailand

Marly Glasgow Magazines Scholastic Ltd. : U.K.

SALES [LOCAL]

100% of the products is sold locally to wholesalers, as well as to retailers AND end-users through 2 subject’s book centers.

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 credit 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 and T/T.

BANKING

Kasikornbank Public Co., Ltd.

[Rangnam Branch : Rangnam Rd., Rajthevee, Bangkok 10400]

Bangkok Bank Public Co., Ltd.

[Siam Square Branch : Rama 1 Rd., Wangmai, Pathumwan, Bangkok 10330]

The Siam Commercial Bank Public Co., Ltd.

[Siam Square Branch : Rama 1 Rd., Wangmai, Pathumwan, Bangkok 10330]

EMPLOYMENT

The subject employs approximately 120 office and sales staff.

LOCATION DETAILS

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

The subject’s book centers are located at:

- F. Bldg., Royal City Avenue, 23/55-56 Rama 9 Rd., Bangkapi, Huaykwang, Bangkok 10320.

- 90/21-25 Rajprarop Rd., Makkasan, Rajthevi, Bangkok 10400.

COMMENT

The subject is doing moderate business, however it is not a market leading in book and magazines which in local market there are other few major book wholesalers and retailers, such as D.K. BOOK CO., LTD., KINOKUNIYA and DISTRI THAI CO., LTD.

FINANCIAL INFORMATION

The capital was registered at Bht. 3,000,000 divided into 30,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 27, 2012]

NAME	HOLDING	%
Mr. Thares Keeree Nationality: Thai Address : 4188/1 Dindaeng Rd., Dindaeng, Bangkok 10400	17,500	58.33
Mrs. Yupadee Keeree Nationality: Thai Address : 90/20-25 Rajprarop Rd., Phyathai, Rajthevee, Bangkok 10400	8,500	28.33
Ms. Bang-orn Srisaluaykul Nationality: Thai Address : 599/3 Trok Watchannai, Bangklo, Bangkorlaem, Bangkok	1,500	5.00
Mrs. Sukantha Keeree Nationality: Thai Address : 4188 Dindaeng Rd., Dindaeng, Bangkok 10400	1,000	3.33
Mr. Nate Keeree Nationality: Thai Address : 4188 Dindaeng Rd., Dindaeng, Bangkok 10400	1,000	3.33
Mrs. Kanyarat Raiyao Nationality: Thai Address : 4188 Dindaeng Rd., Dindaeng, Bangkok 10400	250	0.84
Mrs. Thanyalak Pongboriboon Nationality: Thai Address : 146/12 Moo 3, Pakklongbangplakod, King Amphur Phrasamutjaedee, Samutprakarn	250	0.84

Total Shareholders : 7

Share Structure [as at April 27, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	30,000	100.00
Foreign	-	-	-
Total	7	30,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mrs. Sermsuk Supachewa No. 2721

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2011	2010
Cash in hand & at Bank	828,116.50	301,233.90
Trade Accounts & Other Receivable	18,195,748.89	24,657,944.07
Inventories	52,895,149.75	49,371,417.60
Other Current Assets	51,369.36	18,317.33
Total Current Assets	71,970,384.50	74,348,912.90
Other Long-term Investment	9,200,000.00	9,200,000.00
Fixed Assets	60,605,509.47	60,690,274.69
Intangible Assets	2,647,156.00	2,983,916.20
Other Assets	1,243,041.83	1,481,322.55
Total Assets	145,666,091.80	148,704,426.34

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2011	2010
Bank Overdraft & Short-term Loan from Financial Institution	14,713.56	70,581.76
Trade Accounts & Other Payable	56,424,901.04	61,288,463.59
Accrued Income Tax	70,557.70	1,457,504.31
Other Current Liabilities	65,436.43	66,828.17
Total Current Liabilities	56,575,608.73	62,883,377.83
Liabilities from Employee Benefits	3,596,054.11	-
Total Liabilities	60,171,662.84	62,883,377.83
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 30,000 shares	3,000,000.00	3,000,000.00
Capital Paid	3,000,000.00	3,000,000.00
Retained Earning Appropriated for Statutory Reserve	300,000.00	300,000.00
Unappropriated	82,194,428.96	82,521,048.51
Total Shareholders' Equity	85,494,428.96	85,821,048.51
Total Liabilities & Shareholders' Equity	145,666,091.80	148,704,426.34

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Sales	310,483,924.91	311,261,368.91
Other Income	758,449.72	6,342,404.66
Total Revenues	311,242,374.63	317,603,773.57
Expenses
Cost of Goods Sold	273,318,257.63	276,369,411.41
Selling Expenses	8,063,003.59	7,372,406.27
Administrative Expenses	23,156,909.14	24,306,890.43
Other Expenses	2,008,970.68	-
Total Expenses	306,547,141.04	308,048,708.11
Profit / [Loss] before Financial Cost & Income Tax	4,695,233.59	9,555,065.46
Financial Cost	[29,723.88]	[20,649.47]
Income Tax	[1,137,114.74]	[2,526,871.83]
Net Profit / [Loss]	3,528,394.97	7,007,544.16

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.27	1.18
QUICK RATIO	TIMES	0.34	0.40
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	5.12	5.13
TOTAL ASSETS TURNOVER	TIMES	2.13	2.09
INVENTORY CONVERSION PERIOD	DAYS	70.64	65.20
INVENTORY TURNOVER	TIMES	5.17	5.60
RECEIVABLES CONVERSION PERIOD	DAYS	21.39	28.92
RECEIVABLES TURNOVER	TIMES	17.06	12.62
PAYABLES CONVERSION PERIOD	DAYS	75.35	80.94
CASH CONVERSION CYCLE	DAYS	16.68	13.18
PROFITABILITY RATIO
COST OF GOODS SOLD	%	88.03	88.79
SELLING & ADMINISTRATION	%	10.06	10.18
INTEREST	%	0.01	0.01
GROSS PROFIT MARGIN	%	12.21	13.25
NET PROFIT MARGIN BEFORE EX. ITEM	%	1.51	3.07
NET PROFIT MARGIN	%	1.14	2.25
RETURN ON EQUITY	%	4.13	8.17
RETURN ON ASSET	%	2.42	4.71
EARNING PER SHARE	BAHT	117.61	233.58
LEVERAGE RATIO
DEBT RATIO	TIMES	0.41	0.42
DEBT TO EQUITY RATIO	TIMES	0.70	0.73
TIME INTEREST EARNED	TIMES	157.96	462.73
ANNUAL GROWTH
SALES GROWTH	%	(0.25)
OPERATING PROFIT	%	(50.86)
NET PROFIT	%	(49.65)
FIXED ASSETS	%	(0.14)
TOTAL ASSETS	%	(2.04)

PROFITABILITY RATIO

Gross Profit Margin	12.21	Satisfactory	Industrial Average	14.86
Net Profit Margin	1.14	Satisfactory	Industrial Average	1.50
Return on Assets	2.42	Satisfactory	Industrial Average	2.92
Return on Equity	4.13	Acceptable	Industrial Average	7.59

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 12.21%. 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 1.14%. When compared with the industry average, the ratio of the company was lower.

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 2.42%.

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 4.13%.

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

Return on Assets Uptrend

Return on Equity Downtrend

LIQUIDITY RATIO

Current Ratio	1.27	Satisfactory	Industrial Average	1.61
Quick Ratio	0.34
Cash Conversion Cycle	16.68

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 1.27 times in 2011, increased from 1.18 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 0.34 times in 2011, decreased from 0.4 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 17 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	0.58
Debt to Equity Ratio	0.70	Impressive	Industrial Average	1.40
Times Interest Earned	157.96	Impressive	Industrial Average	2.06

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 157.97 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 Downtrend

Times Interest Earned Uptrend

ACTIVITY RATIO

Fixed Assets Turnover	5.12	Acceptable	Industrial Average	8.04
Total Assets Turnover	2.13	Impressive	Industrial Average	1.94
Inventory Conversion Period	70.64
Inventory Turnover	5.17	Impressive	Industrial Average	4.76
Receivables Conversion Period	21.39
Receivables Turnover	17.06	Impressive	Industrial Average	4.22
Payables Conversion Period	75.35

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 Uptrend

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 :

PRL

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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