MIRA INFORM REPORT

Report Date :

04.05.2012

IDENTIFICATION DETAILS

Name :	DARAMIC [THAILAND] LIMITED
Registered Office :	227 Moo 7, 304 Industrial Park, T. Thatoom, A. Srimahaphote, Prachinburi 25140
Country :	Thailand
Financials (as on) :	2010
Date of Incorporation :	1997
Com. Reg. No.:	0105540007581
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Distributor And Exporter of Plastic Sheets For Battery Inner Separation
No. of Employees :	150

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

DARAMIC [THAILAND] LIMITED

SUMMARY

BUSINESS ADDRESS : 227 MOO 7, 304 INDUSTRIAL PARK,

T. THATOOM, A. SRIMAHAPHOTE,

PRACHINBURI 25140

TELEPHONE : [66] 38 270-800

FAX : [66] 38 270-888

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1997

REGISTRATION NO. : 0105540007581

CAPITAL REGISTERED : BHT. 936,000,000

CAPITAL PAID-UP : BHT. 936,000,000

SHAREHOLDER’S PROPORTION : FOREIGN : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. PHUVANART VIPUTHANUPONG, THAI

MANAGING DIRECTOR

NO. OF STAFF : 150

LINES OF BUSINESS : PLASTIC SHEETS FOR BATTERY INNER

SEPARATION

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 January 21, 1997 as a private limited company under the name style DARAMIC [THAILAND] LIMITED, by foreign groups, with the business objective to engage in manufacturing service of plastic sheets for automobile battery inner separation to both domestic and overseas markets. The subject has been granted a promotional privilege for investment by the Board of Investment [BOI]. It currently employs approximate 150 staff.

Subject is a wholly owned subsidiary of Polypore Acquisition GmbH., Germany.

The subject’s registered address is 227 Moo 7, 304 Industrial Park, T. Thatoom,

A. Srimahaphote, Prachinburi 25140, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Pierre Alphonse Hauswald		French	59
Mr. Lynn Keith Amos		American	47
Mr. Robert Bryan Toth		American	52
Mr. Phuvanart Viputhanupong	[x]	Thai	55

AUTHORIZED PERSON

The above director [x] can jointly sign with one of the rest directors on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Phuvanart Viputhanupong is the Managing Director.

He is Thai nationality with the age of 55 years old.

Mr. Songkrit Ubonchinda is the Production Manager.

He is Thai nationality.

Mr. Saeng Saelaow is the Sales & Marketing Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing service of plastic sheets for automobile battery inner separation. Its products are Polyethylene Separators, Plastic Separator and etc., according to customer’s requirement.

PRODUCTION CAPACITY

Approximately 89,000,000 square meters per annum

BRAND NAMES

“DRAMIC” and “DARAK”

PURCHASE

Most of raw materials mainly PVC resins [PE] is purchased from local supplier, and the remaining is imported from Germany, Republic of China, Singapore, Malaysia and Japan.

MAJOR SUPPLIER

IRPC Public Company Limited : Thailand

SALES

90% of the products is exported to Australia, U.S.A., Republic of China, Taiwan, Malaysia, India, Indonesia, Japan, Singapore and European countries, and the remaining 10% is sold and serviced locally.

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 L/C at sight or T/T.

Exports are against T/T.

BANKING

The Siam Commercial Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 150 office staff and factory workers.

LOCATION DETAILS

The premise is owned for administrative office and factory on 624,000 square meters of land at the heading address. Premise is located in industrial area.

COMMENT

The company manufactures and markets specialized in plastic sheets for battery inner separation for automobile industry. Its products are Polyethylene Separators, Plastic Separator and etc. The products and technologies are used in primary segments such as energy storage. The energy storage segment is lithium batteries and lead-acid batteries. Lithium batteries are the power source in a wide variety of electronics applications ranging from notebook computers and mobile phones to cordless power tools, and are emerging in applications such as electric drive vehicle ("EDV") and electricity grid storage.

The company produces a variety of separation and filtration products for end-markets with attractive growth characteristics, which in many cases are supported by a growing recurring revenue base.

FINANCIAL INFORMATION

The capital was registered at Bht. 1,000,000 divided into 200,000 shares of Bht. 5 each.

The capital was increased later as following:

Bht. 736,000,000 on January 6, 1998

Bht. 936,000,000 on October 18, 2005

The latest registered capital was increased to Bht. 936,000,000 divided into 187,200,000 shares of Bht. 5 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at December 31, 2011]

NAME	HOLDING	%
Polypore Acquisition GmbH. Nationality: German Address : Germany	187,199,994	100.00
Daramic Asia Inc. Nationality: American Address : Burlington M.A., U.S.A.	1	-
Mr. Pierre Alphonse Hauswald Nationality: French Address : France	1	-
Mr. Lynn Keith Amos Nationality: American Address : U.S.A.	1	-
Mr. Robert Bryan Toth Nationality: American Address : 227 Moo 7, Thatoom, Srimahaphote, Prachinburi	1	-
Mr. Phuvanart Viputhanupong Nationality: Thai Address : 73/54 Suthisarn Rd., Dindaeng, Bangkok	1	-
Mr. James Robert Whitsett Nationality: American Address : U.S.A.	1	-

Total Shareholders : 7

Share Structure

[as at December 31, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	1	1	-
Foreign	6	187,199,999	100.00
Total	7	187,200,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Ms. Kamolthip Lertwitvorathep No. 4377

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 Equivalents	138,787,747	295,961,796
Short-term Investment	30,241,773	-
Trade Accounts Receivable - Related company	42,566,774	108,598,501
- Other company	200,194,154	229,661,881
Total Trade Accounts Receivable	242,760,928	338,260,382
Inventories	121,389,727	140,860,294
Other Receivable - Related Company	2,249,502	-
Other Current Assets	10,140,100	8,445,547
Total Current Assets	545,569,777	783,528,019
Cash at Bank under Commitment	2,608,000	2,608,000
Long-term Loan to Related Company	162,492,430	-
Fixed Assets	840,159,985	979,578,411
Other Assets	11,000	29,100
Total Assets	1,550,841,192	1,765,743,530

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Trade Accounts Payable - Related company	2,159,345	3,234,753
- Other company	48,130,973	55,253,859
Total Trade Accounts Payable	50,290,318	58,488,612
Other payable - Related company	24,669,419	38,586,919
- Other company	42,888,533	43,636,593
Total Other Payable	67,557,952	82,223,512
Accrued Expenses	22,759,681	27,502,337
Other Current Liabilities	7,376,524	6,523,061
Total Liabilities	147,984,475	174,737,522
Shareholders' Equity
Share capital : Baht 5 par value authorized, issued and fully paid share capital 187,200,000 shares	936,000,000	936,000,000
Capital Paid	936,000,000	936,000,000
Statutory Reserve	44,785,066	12,668,174
Retained Earning - Unappropriated	422,071,651	642,337,834
Total Shareholders' Equity	1,402,856,717	1,591,006,008
Total Liabilities & Shareholders' Equity	1,550,841,192	1,765,743,530

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales Income	1,504,507,429	1,331,622,003
Other Income	2,643,000	2,451,689
Total Revenues	1,507,150,429	1,334,073,692
Expenses
Cost of Goods Sold	1,021,947,998	897,995,473
Selling Expenses	107,826,936	100,073,285
Administrative Expenses	116,051,299	117,648,665
Loss on Exchange Rate	22,504,221	10,019,387
Total Expenses	1,268,330,454	1,125,736,810
Profit before Income Tax	238,819,975	208,336,882
Income Tax	[153,266]	[1,321,930]
Net Profit / [Loss]	238,666,709	207,014,952

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	3.69	4.48
QUICK RATIO	TIMES	2.78	3.63
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	1.79	1.36
TOTAL ASSETS TURNOVER	TIMES	0.97	0.75
INVENTORY CONVERSION PERIOD	DAYS	43.36	57.25
INVENTORY TURNOVER	TIMES	8.42	6.38
RECEIVABLES CONVERSION PERIOD	DAYS	107.46	155.67
RECEIVABLES TURNOVER	TIMES	3.40	2.34
PAYABLES CONVERSION PERIOD	DAYS	17.19	22.46
CASH CONVERSION CYCLE	DAYS	133.63	190.46
PROFITABILITY RATIO
COST OF GOODS SOLD	%	67.93	67.44
SELLING & ADMINISTRATION	%	14.88	16.35
INTEREST	%	-	-
GROSS PROFIT MARGIN	%	32.25	32.75
NET PROFIT MARGIN BEFORE EX. ITEM	%	15.87	15.65
NET PROFIT MARGIN	%	15.86	15.55
RETURN ON EQUITY	%	17.01	13.01
RETURN ON ASSET	%	15.39	11.72
EARNING PER SHARE	BAHT	25.50	22.12
LEVERAGE RATIO
DEBT RATIO	TIMES	0.10	0.10
DEBT TO EQUITY RATIO	TIMES	0.11	0.11
TIME INTEREST EARNED	TIMES	-	-
ANNUAL GROWTH
SALES GROWTH	%	12.98
OPERATING PROFIT	%	14.63
NET PROFIT	%	15.29
FIXED ASSETS	%	(14.23)
TOTAL ASSETS	%	(12.17)

PROFITABILITY RATIO

Gross Profit Margin	32.25	Impressive	Industrial Average	12.85
Net Profit Margin	15.86	Impressive	Industrial Average	3.53
Return on Assets	15.39	Impressive	Industrial Average	4.05
Return on Equity	17.01	Impressive	Industrial Average	8.42

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 32.25%. 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 15.86%, 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 15.39%, 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. Return on Equity ratio is 17.01%, 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 Uptrend

Return on Equity Uptrend

LIQUIDITY RATIO

Current Ratio	3.69	Impressive	Industrial Average	1.39
Quick Ratio	2.78
Cash Conversion Cycle	133.63

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 3.69 times in 2010, decreased from 4.48 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 2.78 times in 2010, decreased from 3.63 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 134 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.10	Impressive	Industrial Average	0.46
Debt to Equity Ratio	0.11	Impressive	Industrial Average	0.97
Times Interest Earned	-		Industrial Average	4.69

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.

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 0.1 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	1.79	Acceptable	Industrial Average	2.53
Total Assets Turnover	0.97	Satisfactory	Industrial Average	1.15
Inventory Conversion Period	43.36
Inventory Turnover	8.42	Impressive	Industrial Average	5.20
Receivables Conversion Period	107.46
Receivables Turnover	3.40	Acceptable	Industrial Average	4.53
Payables Conversion Period	17.19

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 Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.23
UK Pound	1	Rs.86.14
Euro	1	Rs.69.98

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%)

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.