MIRA INFORM REPORT

Report Date :

03.05.2012

IDENTIFICATION DETAILS

Name :	SUTHEE UNITED CARBON CO., LTD.
Registered Office :	5 Soi Ramkhamhaeng 199, Ramkhamhaeng Road, Minburi, Bangkok 10510
Country :	Thailand
Financials (as on) :	2010
Date of Incorporation :	1987
Com. Reg. No.:	0105530014509
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Distributor And Exporter Carbons And Graphite Products
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 – 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

SUTHEE UNITED CARBON CO., LTD.

SUMMARY

BUSINESS ADDRESS : 5 SOI RAMKHAMHAENG 199,

RAMKHAMHAENG ROAD, MINBURI,

BANGKOK 10510

TELEPHONE : [66] 2517-1350, 2517-6223-6

FAX : [66] 2517-6269, 2517-6267

E-MAIL ADDRESS : info@sucarbon.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1987

REGISTRATION NO. : 0105530014509

CAPITAL REGISTERED : BHT. 50,000,000

CAPITAL PAID-UP : BHT. 50,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. RON, VARAN SAELO, THAI

MANAGING DIRECTOR

NO. OF STAFF : 120

LINES OF BUSINESS : CARBONS AND GRAPHITE PRODUCTS

MANUFACTURER, DISTRIBUTOR AND EXPORTER

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 March 26, 1987 as a private limited company under the originally registered name “United Carbon Products Co., Ltd.” by Thai groups. On October 13, 1995, subject’s name was changed to “Schunk United Carbon Co., Ltd.”, and was finally changed to SUTHEE UNITED CARBON CO., LTD., on December 17, 2004. Its business objective is to manufacture wide range of carbons, graphite, carbide, tungsten carbide and other engineering materials for various industries of both domestic and international markets. It currently employs approximate 120 staff.

The subject’s registered address is 5 Soi Ramkhamhaeng 199, Ramkhamhaeng Rd., Minburi, Bangkok 10510, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Ms. Supreeya Phusawan	[x]	Thai	38
Mr. Thawatchai Pratuengsith		Thai	62
Mr. Wisith Yaowapongsiri		Thai	64
Mr. Ron, Varan Saelo	[x]	Thai	38

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Ron, Varan Saelo is the Managing Director.

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

Mr. Somchai Puicharoen is the Sales Manager.

He is Thai nationality.

Mr. Sanong Ngua-nguan is the Factory Manager.

He is Thai nationality.

Mrs. Teeranuch Phusawan is the Accounting and Finance Manager.

She is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing, distributing and exporting wide range of carbons, graphite, silicon carbide, tungsten carbide and other engineering materials used for various industries, such as cements, petrochemicals, automobiles, electronics, steels, aluminum, glasses, papers, electric power generating, mass transit and etc.

Lists of products are as follows:

: Mechanical Seals, Silicon Carbide Seals, Carbon Seals, Tungsten Carbide Seals, Seals

Ring Single & Segments, Flexible Hose, Rotary Joint for Steam & Cooling, Carbon

Vane for Compressor, Carbon Brush, Self Lubricating Parts, Current Collector for

Industry, Industrial Carbon Brushes, Brush Holders, Electric Contacts, Resurfacing

Tools, Slip Rings Motor, Carbon Channels and Fasteners, Crucible, Graphite Dies for

Continuous Casting, Degasser Shafts and Rotors, EDM Graphite and etc., according

to customer’s requirement.

PURCHASE

Raw materials mainly carbon and graphite powder and accessories are purchased from suppliers and agents in both domestic and overseas, mainly Germany, Republic of China and Japan.

MAJOR SUPPLIER

Schunk GmbH. : Germany

SALES/SERVICES

90% of the products is sold and serviced locally by wholesale to manufacturers and end-users, the remaining 10% is exported to Malaysia, India, Vietnam, Hong Kong and Singapore.

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 according 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 T/T.

Exports are against T/T.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 120 staff.

LOCATION DETAILS

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

COMMENT

Subject was formed 1987 as a manufacturer, distributor and exporter of carbon and graphite products. Its products are for industrial used. Subject has strong business performance in the past several years due to its products are main raw materials for various industries. Industrial improvement has also risen demand of the products since 2011, as well as continue expanding in the year 2012.

FINANCIAL INFORMATION

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

The capital was increased later as following:

Bht. 10,000,000 on December 15, 1992

Bht. 50,000,000 on September 8, 1995

The latest registered capital was increased to Bht. 50,000,000 divided into 500,000 shares of Bht. 100 each with fully paid.

MAIN SHAREHOLDERS

[as at April 4, 2011]

NAME	HOLDING	%
Mrs. Prathana Phusawan Nationality: Thai Address : 70/60 Ramhamhaeng 164 Rd., Minburi, Bangkok	207,798	41.56
Mr. Wisith Yaowapongsiri Nationality: Thai Address : 13 Moo 11, Sukhapiban 2 Rd., Kannayao, Bangkok	64,374	12.87
Mr. Somsak Teerapongpaibul Nationality: Thai Address : 174/5 Urupong Rd., Rongmuang, Pathumwan, Bangkok	43,125	8.62
Mr. Thawatchai Pratuengsith Nationality: Thai Address : 29-31 Nares Rd., Siphya, Bangrak, Bangkok	35,939	7.19
Mr. Manus Phusawan Nationality: Thai Address : 7/67 Moo 4, Ramkhamhaeng Rd., Minburi, Bangkok	21,564	4.31
Ms. Supreeya Phusawan Nationality: Thai Address : 70/60 Ramhamhaeng 164 Rd., Minburi, Bangkok	20,164	4.04
Ms. Teeranuch Phusawan Nationality: Thai Address : 70/51 Ramhamhaeng 164 Rd., Minburi, Bangkok	20,164	4.04
Mrs. Rungarun Watanawong Nationality: Thai Address : 1592/22 Krungthep-Nonthaburi Rd., Bangsue, Dusit, Bnagkok	14,374	2.87
Mr. Mahapir Goder Nationality: Thai Address : 12/8 Saibangwaek Rd., Bangchueknang, Pasicharoen, Bangkok	14,370	2.87
Others	58,128	11.63

Total Shareholders : 17

Share Structure

[as at April 4, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	17	500,000	100.00
Foreign	-	-	-
Total	17	500,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mr. Noparat Yuenyong No. 7045

Note.

The 2011 financial statement was not submitted to the Commercial Registration Department during investigation.

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2010	2009
Cash and Cash Equivalent	7,072,597.79	11,446,207.78
Short-term Investment	57,224,277.05	41,398,194.31
Trade Accounts & Notes Receivable	24,196,191.87	25,197,391.55
Inventories	37,606,746.97	35,711,184.45
Other Current Assets	961,523.20	2,655,508.43
Total Current Assets	127,061,336.88	116,408,486.52
Cash at Bank pledged as a Collateral	4,923,594.70	4,923,594.70
Long-term Investment	3,300,000.00	3,300,000.00
Fixed Assets	37,962,222.37	38,566,299.75
Computer Programme	467,289.72	177,850.57
Other Assets	50,900.00	516,020.00
Total Assets	173,765,343.67	163,892,251.54

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2010	2009
Trade Accounts Payable	5,154,520.63	7,307,577.33
Accrued Income Tax	3,237,210.96	2,819,081.95
Accrued Commission	3,545,206.66	2,957,695.68
Accrued Bonus	1,438,300.00	820,960.00
Loan from Related Person	10,975,000.00	15,000,000.00
Other Current Liabilities	2,383,449.24	2,529,556.74
Total Current Liabilities	26,733,687.49	31,434,871.70
Total Liabilities	26,733,687.49	31,434,871.70
Shareholders’ Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 500,000 shares	50,000,000.00	50,000,000.00
Capital Paid	50,000,000.00	50,000,000.00
Premium on Share Capital	12,740,000.00	12,740,000.00
Retained Earnings Appropriated for Statutory Reserve	5,000,000.00	5,000,000.00
Unappropriated	79,291,656.18	64,717,379.84
Total Shareholders' Equity	147,031,656.18	132,457,379.84
Total Liabilities & Shareholders' Equity	173,765,343.67	163,892,251.54

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales Income	125,970,243.97	110,920,315.56
Other Income	1,559,600.77	1,254,296.31
Diminution of Inventories [Reversal]	-	67,652.75
Unrealized Gain from Short-term Investment	62,840.43	68,656.92
Gain on Disposal of Assets	396,455.75	490,367.83
Gain on Exchange Rate	227,160.27	62,751.19
Total Revenues	128,216,301.19	112,864,040.56
Expenses
Cost of Goods Sold	68,063,268.62	63,729,530.54
Selling Expenses	21,285,597.56	18,441,788.16
Administrative Expenses	17,197,372.00	14,767,766.66
Total Expenses	106,546,238.18	96,939,085.36
Profit before Financial Cost & Income Tax	21,670,063.01	15,924,955.20
Financial Cost	[778,781.28]	[1,018,557.68]
Profit / [Loss] before Income Tax	20,891,281.73	14,906,397.52
Income Tax	[6,317,005.39]	[4,748,097.03]
Net Profit / [Loss]	14,574,276.34	10,158,300.49

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	4.75	3.70
QUICK RATIO	TIMES	3.31	2.48
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	3.32	2.88
TOTAL ASSETS TURNOVER	TIMES	0.72	0.68
INVENTORY CONVERSION PERIOD	DAYS	201.67	204.53
INVENTORY TURNOVER	TIMES	1.81	1.78
RECEIVABLES CONVERSION PERIOD	DAYS	70.11	82.92
RECEIVABLES TURNOVER	TIMES	5.21	4.40
PAYABLES CONVERSION PERIOD	DAYS	27.64	41.85
CASH CONVERSION CYCLE	DAYS	244.14	245.59
PROFITABILITY RATIO
COST OF GOODS SOLD	%	54.03	57.46
SELLING & ADMINISTRATION	%	30.55	29.94
INTEREST	%	0.62	0.92
GROSS PROFIT MARGIN	%	47.75	44.30
NET PROFIT MARGIN BEFORE EX. ITEM	%	17.20	14.36
NET PROFIT MARGIN	%	11.57	9.16
RETURN ON EQUITY	%	9.91	7.67
RETURN ON ASSET	%	8.39	6.20
EARNING PER SHARE	BAHT	29.15	20.32
LEVERAGE RATIO
DEBT RATIO	TIMES	0.15	0.19
DEBT TO EQUITY RATIO	TIMES	0.18	0.24
TIME INTEREST EARNED	TIMES	27.83	15.63
ANNUAL GROWTH
SALES GROWTH	%	13.57
OPERATING PROFIT	%	36.08
NET PROFIT	%	43.47
FIXED ASSETS	%	(1.57)
TOTAL ASSETS	%	6.02

PROFITABILITY RATIO

Gross Profit Margin	47.75	Impressive	Industrial Average	20.78
Net Profit Margin	11.57	Impressive	Industrial Average	4.25
Return on Assets	8.39	Impressive	Industrial Average	6.16
Return on Equity	9.91	Satisfactory	Industrial Average	13.08

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 47.75%. 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 11.57%, 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 8.39%, 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 9.91%.

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

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY RATIO

Current Ratio	4.75	Impressive	Industrial Average	1.88
Quick Ratio	3.31
Cash Conversion Cycle	244.14

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 4.75 times in 2010, increased from 3.7 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 higher, indicated that company was an efficient operator in a dominant position within its industry.

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 3.31 times in 2010, increased from 2.48 times, although excluding inventory so the company still have good short-term financial strength.

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 245 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.15	Impressive	Industrial Average	0.38
Debt to Equity Ratio	0.18	Impressive	Industrial Average	0.84
Times Interest Earned	27.83	Impressive	Industrial Average	9.88

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 27.83 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 0.15 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	3.32	Impressive	Industrial Average	3.09
Total Assets Turnover	0.72	Deteriorated	Industrial Average	1.45
Inventory Conversion Period	201.67
Inventory Turnover	1.81	Deteriorated	Industrial Average	5.99
Receivables Conversion Period	70.11
Receivables Turnover	5.21	Satisfactory	Industrial Average	5.48
Payables Conversion Period	27.64

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.52.93
UK Pound	1	Rs.85.85
Euro	1	Rs.69.94

INFORMATION DETAILS

Report Prepared by :

PDT

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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