MIRA INFORM REPORT

Report Date :

02.06.2012

IDENTIFICATION DETAILS

Name :	THAVORN LAMPANG CO., LTD.
Registered Office :	350 Moo 7, Lampang-Chiangmai Road, T. Hangchat, A. Hangchat, Lampang 52190
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	15.01.1992
Com. Reg. No.:	0525535000031
Legal Form :	Private Limited Company
Line of Business :	Contracted Manufacturer of Wooden Furniture
No. of Employees :	630

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 :	Slow
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

THAVORN LAMPANG CO., LTD.

SUMMARY

BUSINESS ADDRESS : 350 MOO 7, LAMPANG-CHIANGMAI ROAD,

T. HANGCHAT, A. HANGCHAT, LAMPANG 52190,

THAILAND

TELEPHONE : [66] 54 269-447-9

FAX : [66] 54 269-305

E-MAIL ADDRESS : thavorn@cscoms.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1992

REGISTRATION NO. : 0525535000031

TAX ID NO. : 3511002525

CAPITAL REGISTERED : BHT. 170,000,000

CAPITAL PAID-UP : BHT. 170,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. PRAMOTE PEWLUANGSAWAT, THAI

MANAGING DIRECTOR

NO. OF STAFF : 630

LINES OF BUSINESS : WOODEN FURNITURES

CONTRACTED MANUFACTURER

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 January 15, 1992 as a private limited company under the name style THAVORN LAMPANG CO., LTD., by Thai groups, in order to provide manufacturing service of wooden furniture to overseas markets. It currently employs approximate 630 staff.

The subject’s registered address is 350 Moo 7, Lampang-Chiangmai Rd., T. Hangchat, A. Hangchat, Lampang 52190, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Pramote Pewluangsawat	[x]	Thai	59
Mr. Akarin Pewluangsawat	[x]	Thai	35
Mrs. Saengchan Tajai		Thai	55

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Pramote Pewluangsawat is the Managing Director.

He is Thai nationality with the age of 59 years old.

Mr. Akarin Pewluangsawat is the Assistant Managing Director.

He is Thai nationality with the age of 35 years old.

BUSINESS OPERATIONS

The subject is engaged in manufacturing service and exporting wide range of wooden products and furniture under various customer’s brands. Range of products are divided into 2 main products as follows:

· Kitchenware and furniture: salad bowl, spoon, knife rack, wide rack, magazine rack, dish rack, pot holder rack, shopping board, cabinet, drawer organizer, trolley cart, napkin holder and etc.

· Children furniture: table, chair, stool, bed, wagon, wooden toys and etc.

PURCHASE

70% of raw materials such as woods and accessories are purchased from local suppliers, the remaining 30% is imported from New Zealand, Australia, Malaysia and Myanmar.

EXPORT

100% of the products is exported to U.S.A., Singapore, Japan, Sweden and European countries.

MAJOR CUSTOMER

Ikea Systems B.V. : Sweden

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

Local bills are paid by cash or on the credits term of 30-60 days.

Imports are by T/T.

Exports are against T/T.

BANKING

Bangkok Bank Public Co., Ltd.

Kasikornbank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 630 office staff and factory workers.

LOCATION DETAILS

The premise is owned for administrative office, factory and warehouse at the heading address. Premise is located in provincial, in the Northern region.

COMMENT

The subject was formed in 1992 as a manufacturer and exporter of wooden products and furniture for export markets. 100% of the products are for overseas such as U.S.A., Singapore and European countries. Subject’s sales revenue in 2010 was slightly dropped comparing to the previous year due to economic slowdown in USA and EU markets. However, the market outlook is still promising and sales continue growing well.

FINANCIAL INFORMATION

The capital was registered at Bht. 2,000,000 divided into 20,000 shares of Bht. 100 each.

The capital was increased later as following:

Bht. 20,000,000 on November 9, 1999

Bht. 30,000,000 on September 18, 2006

Bht. 170,000,000 on September 22, 2008

The latest registered capital was increased to Bht. 170 million, divided into 1,700,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 29, 2010]

NAME	HOLDING	%
Mr. Pramote Pewluangsawat Nationality: Thai Address : 350 Moo 7, T. Hangchat, A. Hangchat Lampang	1,520,000	89.44
Mrs. Saengchan Tajai Nationality: Thai Address : 105/2 Moo 7, T. Hangchat, A. Hangchat, Lampang	30,000	1.76
Mr. Akarin Pewluangsawat Nationality: Thai Address : 179 Moo 8, T. Hangchat, A. Hangchat Lampang	30,000	1.76
Ms. Piyanart Pewluangsawat Nationality: Thai Address : 123 Pattanakarn 20 Rd., Yaek 8, T. Suanluang, A. Suanluang, Bangkok	30,000	1.76
Ms. Piyaphan Pewluangsawat Nationality: Thai Address : 105/2 Moo 7, T. Hangchat, A. Hangchat, Lampang	30,000	1.76
Mr. Ekthana Pewluangsawat Nationality: Thai Address : 99/6 Moo 3, Sapansung, Bangkok	30,000	1.76
Ms. Piyaporn Pewluangsawat Nationality: Thai Address : 105/2 Moo 7, T. Hangchat, A. Hangchat, Lampang	30,000	1.76

Total Shareholders : 7

Share Structure [as at April 29, 2010]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	1,700,000	100.00
Foreign	-	-	-
Total	7	1,700,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Manop Kitiwong No. 1847

Note:

The 2011 financial statement has yet been submitted to the Commercial Registration Department.

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2010	2009
Cash in Hand & at Bank	2,039,784.25	2,596,117.70
Trade Accounts Receivable	53,610,646.97	56,926,485.90
Inventories	60,140,171.18	60,655,991.14
Other Current Assets	11,652,358.53	13,532,013.09
Total Current Assets	127,442,960.93	133,710,607.83
Fixed Assets	303,969,128.93	306,959,436.54
Electricity & Water Supply System	1,672,218.18	2,118,067.73
Machinery, Tools & Appliance	13,114,204.15	15,506,397.73
Vehicle	21.00	87,209.88
Office Automation	1,336,685.44	1,335,409.41
Other Assets	800,000.00	370,000.00
Total Assets	448,335,218.63	460,087,129.12

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Bank Overdraft & Short-term Loan from Bank	146,735,835.51	141,751,819.00
Trade Accounts Payable	28,723,015.41	32,870,104.20
Loan Payable	33,646,498.90	37,877,027.02
Other Current Liabilities	619,480.65	266,476.92
Total Current Liabilities	209,724,830.47	212,765,427.14
Long-term Loan from Bank	93,650,881.35	103,656,035.10
Total Liabilities	303,375,711.82	316,421,462.24
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 1,700,000 shares	170,000,000.00	170,000,000.00
Capital Paid	170,000,000.00	170,000,000.00
Retained Earning - Unappropriated	[25,040,493.19]	26,334,333.13
Total Shareholders' Equity	144,959,506.81	143,665,666.87
Total Liabilities & Shareholders' Equity	448,335,218.63	460,087,129.12

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales	242,252,607.94	253,541,291.76
Less : Discount Payment	[763,485.49]	[1,258,074.35]
Refundable Goods	[24,885.00]	[4,501,895.67]
Claim Goods	[5,401,383.90]	[5,808,030.23]
Other Income	1,039,549.58	2,085,275.83
Total Revenues	237,102,403.13	244,058,567.34
Expenses
Cost of Goods Sold	188,501,451.51	193,258,685.64
Selling & Administrative Expenses	31,314,611.27	35,937,979.63
Other Expenses	695,522.39	567,987.56
Total Expenses	220,511,585.17	229,764,652.83
Profit / [Loss] before Interest Expenses	16,590,817.96	14,293,914.51
Interest Expenses	[14,726,029.69]	[13,546,146.22]
Profit / [Loss] before Income Tax	1,864,788.27	747,768.29
Plus : Income Tax	38,372.84	154,990.35
Net Profit / [Loss]	1,903,161.11	902,758.64

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.61	0.63
QUICK RATIO	TIMES	0.27	0.28
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	0.80	0.83
TOTAL ASSETS TURNOVER	TIMES	0.54	0.55
INVENTORY CONVERSION PERIOD	DAYS	116.45	114.56
INVENTORY TURNOVER	TIMES	3.13	3.19
RECEIVABLES CONVERSION PERIOD	DAYS	80.77	81.95
RECEIVABLES TURNOVER	TIMES	4.52	4.45
PAYABLES CONVERSION PERIOD	DAYS	55.62	62.08
CASH CONVERSION CYCLE	DAYS	141.61	134.43
PROFITABILITY RATIO
COST OF GOODS SOLD	%	77.81	76.22
SELLING & ADMINISTRATION	%	12.93	14.17
INTEREST	%	6.08	5.34
GROSS PROFIT MARGIN	%	20.06	20.04
NET PROFIT MARGIN BEFORE EX. ITEM	%	6.85	5.64
NET PROFIT MARGIN	%	0.79	0.36
RETURN ON EQUITY	%	1.31	0.63
RETURN ON ASSET	%	0.42	0.20
EARNING PER SHARE	BAHT	1.12	0.53
LEVERAGE RATIO
DEBT RATIO	TIMES	0.68	0.69
DEBT TO EQUITY RATIO	TIMES	2.09	2.20
TIME INTEREST EARNED	TIMES	1.13	1.06
ANNUAL GROWTH
SALES GROWTH	%	(4.45)
OPERATING PROFIT	%	16.07
NET PROFIT	%	110.82
FIXED ASSETS	%	(0.97)
TOTAL ASSETS	%	(2.55)

PROFITABILITY RATIO

Gross Profit Margin	20.06	Impressive	Industrial Average	19.99
Net Profit Margin	0.79	Impressive	Industrial Average	(8.26)
Return on Assets	0.42	Impressive	Industrial Average	0.32
Return on Equity	1.31	Deteriorated	Industrial Average	5.58

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 20.06%. 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 0.79%, 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 0.42%, 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 1.31%.

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	0.61	Risky	Industrial Average	15.69
Quick Ratio	0.27
Cash Conversion Cycle	141.61

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 0.61 times in 2010, decrease from 0.63 times, then the company may not be efficiently using its current assets. 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 0.27 times in 2010, decrease from 0.28 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 142 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.68	Impressive	Industrial Average	0.76
Debt to Equity Ratio	2.09	Risky	Industrial Average	0.87
Times Interest Earned	1.13	Deteriorated	Industrial Average	908.31

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 1.13 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 0.68 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	0.80	Deteriorated	Industrial Average	25.82
Total Assets Turnover	0.54	Deteriorated	Industrial Average	1.28
Inventory Conversion Period	116.45
Inventory Turnover	3.13	Acceptable	Industrial Average	5.43
Receivables Conversion Period	80.77
Receivables Turnover	4.52	Deteriorated	Industrial Average	16.54
Payables Conversion Period	55.62

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

Fixed Assets Turnover Uptrend

Total Assets Turnover Downtrend

Inventory Turnover Uptrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.92
UK Pound	1	Rs.86.03
Euro	1	Rs.69.13

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%)

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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.