MIRA INFORM REPORT

Report Date :

04.05.2012

IDENTIFICATION DETAILS

Name :	V-SERVE TRANSPORT LTD.
Registered Office :	709/38 Onnuch Road, Suanluang, Bangkok 10250
Country :	Thailand
Financials (as on) :	2010
Date of Incorporation :	1994
Com. Reg. No.:	0105537091011
Legal Form :	Private Limited Company
Line of Business :	Providing of land transportation service
No. of Employees :	200

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

V-SERVE TRANSPORT LTD.

SUMMARY

BUSINESS ADDRESS : 709/38 ONNUCH ROAD, SUANLUANG,

BANGKOK 10250

TELEPHONE : [66] 2738-3732

FAX : [66] 2738-3743

E-MAIL ADDRESS : transport@v-servegroup.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1994

REGISTRATION NO. : 0105537091011 [Former : 3011464465]

CAPITAL REGISTERED : BHT. 5,000,000

CAPITAL PAID-UP : BHT. 5,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : DR. TANIT SORAT, THAI

PRESIDENT

NO. OF STAFF : 200

LINES OF BUSINESS : LAND TRANSPORTATION SERVICE

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 August 4, 1994 as a private limited company under the registered name V-SERVE TRANSPORT LTD., by Thai groups, with the business objective to provide land transportation service. It currently employs approximate 200 staff. It is a member of V-Serve group of companies.

The subject’s registered address is 709/38 Onnuch Rd., Suanluang, Bangkok 10250, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Dr. Tanit Sorat		Thai	62
Mr. Thanes Sorat	[x]	Thai	36
Ms. Pattama Sukbovornkul	[x]	Thai	55
Mr. Suriya Khamsuwan	[x]	Thai	46

AUTHORIZED PERSON

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

MANAGEMENT

Dr. Tanit Sorat is the President.

He is Thai nationality with the age of 62 years old.

Mr. Thanes Sorat is the Vice President.

He is Thai nationality with the age of 36 years old.

Ms. Piyarat Sorat is the Vice President.

She is Thai nationality.

Ms. Pattama Sukbovornkul is the Vice President.

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

Mr. Suriya Khamsuwan is the Transport & Distribution Director.

He is Thai nationality with the age of 46 years old.

Ms. Sansanee Somkanae is the Marketing Director.

She is Thai nationality.

Mr. Thanakorn Sangpitool is the Operation Director.

He is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in providing of land transportation service via six-wheels truck, ten-wheels truck, trailer and small picked-up with over 200 trucks and picked-up, serving to domestic industry.

PURCHASE

100% of transportation equipments and spare parts are purchased from local supplier.

RELATED AND AFFILIATED COMPANIES

The V-Serve group consists of :

V-Serve Logistics Ltd.

Business Type : Logistic & freight forwarding service

V-Serve Sea & Land Ltd.

Business Type : Logistic & freight forwarding service

V-Serve Southern Ltd.

Business Type : Logistic & freight forwarding service

V-Serve EWEC Ltd.

Business Type : Logistic & freight forwarding service.

V-Serve Maesod Ltd.

Business Type : Logistic & freight forwarding service

V-Serve Logistic Park Ltd.

Business Type : Logistic & freight forwarding service

We-Wealth Ltd.

Business Type : Logistic training service

V-Ventis Consulting Ltd.

Business Type : Logistic consulting service.

We-Serve Ltd.

Business Type : Transportation service

V-Serve Ltd.

Business Type : Transportation service

V-Serve M & E Ltd.

Business Type : Importer and distributor of logistic and transportation equipment.

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 the past two years.

CREDIT

Services are by cash or on the credit term of 30 days.

Local bills are paid by cash or on the credit term of 30 days.

BANKING

Bangkok Bank Public Co., Ltd.

The Siam Commercial Bank Public Co., Ltd.

Krung Thai Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 200 staff.

LOCATION DETAILS

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

Warehouse is located at 125/1 Kingkaew Rd., T. Rachathewa, A. Bangplee, Samutprakarn 10540. Tel.: [66] 2738-3732-3.

COMMENT

The subject’s business is healthy due to transportation services for domestic merchandise from manufacturers, importer and exporter still has strong demand. The subject has maintained a good business. Servicing of trucks and loading services still has healthy growth in domestic market.

FINANCIAL INFORMATION

The capital was registered at Bht. 3,500,000 divided into 35,000 shares of Bht. 100 each with fully paid.

On December 20, 2005, the capital was increased to Bht. 5,000,000 divided into 50,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at September 30, 2011]

NAME	HOLDING	%
Dr. Tanit Sorat Nationality: Thai Address : 709/54 Onnuch Rd., Suanluang, Suanluang, Bangkok	41,243	82.49
Mr. Thanes Sorat Nationality: Thai Address : 109/4 Moo 3, Vibhavadi-Rangsit Rd., Ladyao, Jatujak, Bangkok	3,500	7.00
Ms. Piyarat Sorat Nationality: Thai Address : 109/4 Moo 3, Vibhavadi-Rangsit Rd., Ladyao, Jatujak, Bangkok	3,500	7.00
Mr. Suriya Khamsuwan Nationality: Thai Address : 2261/1 Rama 4 Rd., Klongtoey, Bangkok	1,750	3.50
Ms. Pattama Sukbovornkul Nationality: Thai Address : 668 Soi Onnuch 36, Suanluang, Bangkok	1
Ms. Thanakorn Sangpitool Nationality: Thai Address : 18/12 Moo 4, Samwatawan-tok, Klongsamwa, Bangkok	1
Ms. Sansanee Somkanae Nationality: Thai Address : 34/55 Moo 9, Seekan, Donmuang, Bangkok	1	= 0.01
Mr. Prayuth Wongsawang Nationality: Thai Address : 99/859 Moo 6, Bangmuang, Muang, Samutprakarn	1
Mr. Chaimongkol Thamklang Nationality: Thai Address : 52 Moo 17, Tarnprasart, Nonsoong, Nakornratchasima	1

Ms. Veerawan Rungruang Nationality: Thai Address : 520/6 Moo 6, Saimai, Saimai, Bangkok	1
Mrs. Isaraporn Meethong Nationality: Thai Address : 555/43 Prachauthis Rd., Samsennok, Huaykwang, Bangkok	1

Total Shareholders : 11

Share Structure

[as at September 30, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	11	50,000	100.00
Foreign	-	-	-
Total	11	50,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Air Vice Marshal Thavil Chotechai No. 0337

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	2,331,993.32	1,644,746.02
Trade Accounts Receivable	6,435,455.50	26,939,473.76
Other Current Assets	2,262,600.23	1,172,361.21
Total Current Assets	11,030,049.05	29,756,580.99
Fixed Assets	18,340,943.32	28,692,959.42
Total Assets	29,370,992.37	58,449,540.41

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2010	2009
Trade Accounts Payable	7,060,108.00	10,509,938.50
Other Current Liabilities	2,107,834.66	1,360,180.59
Total Current Liabilities	9,167,942.66	11,870,119.09
Loan Payable	11,355,204.64	24,838,905.75
Installment Payable	1,840,188.00	4,731,912.00
Total Liabilities	22,363,335.30	41,440,936.84
Shareholders’ Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 50,000 shares	5,000,000.00	5,000,000.00
Capital Paid	5,000,000.00	5,000,000.00
Retained Earning Unappropriated	2,007,657.07	12,008,603.57
Total Shareholders' Equity	7,007,657.07	17,008,603.57
Total Liabilities & Shareholders' Equity	29,370,992.37	58,449,540.41

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Transit Income	121,464,418.94	103,258,734.96
Other Income	694,572.77	604,114.98
Total Revenues	122,158,991.71	103,862,849.94
Expenses
Cost of Transit	115,693,831.77	81,480,098.46
Administrative Expenses	16,466,106.44	18,686,437.14
Total Expenses	132,159,938.21	100,166,535.60
Profit / [Loss] before Income Tax	[10,000,946.50]	3,696,314.34
Less: Income Tax	-	[836,476.33]
Net Profit / [Loss]	[10,000,946.50]	2,859,838.01

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.20	2.51
QUICK RATIO	TIMES	0.96	2.41
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	6.62	3.60
TOTAL ASSETS TURNOVER	TIMES	4.14	1.77
INVENTORY CONVERSION PERIOD	DAYS	-	-
INVENTORY TURNOVER	TIMES	-	-
RECEIVABLES CONVERSION PERIOD	DAYS	19.34	95.23
RECEIVABLES TURNOVER	TIMES	18.87	3.83
PAYABLES CONVERSION PERIOD	DAYS	22.27	47.08
CASH CONVERSION CYCLE	DAYS	(2.94)	48.15
PROFITABILITY RATIO
COST OF GOODS SOLD	%	95.25	78.91
SELLING & ADMINISTRATION	%	13.56	18.10
INTEREST	%	-	-
GROSS PROFIT MARGIN	%	5.32	21.68
NET PROFIT MARGIN BEFORE EX. ITEM	%	(8.23)	3.58
NET PROFIT MARGIN	%	(8.23)	2.77
RETURN ON EQUITY	%	(142.71)	16.81
RETURN ON ASSET	%	(34.05)	4.89
EARNING PER SHARE	BAHT	(200.02)	57.20
LEVERAGE RATIO
DEBT RATIO	TIMES	0.76	0.71
DEBT TO EQUITY RATIO	TIMES	3.19	2.44
TIME INTEREST EARNED	TIMES	-	-
ANNUAL GROWTH
SALES GROWTH	%	17.63
OPERATING PROFIT	%	(370.57)
NET PROFIT	%	(449.70)
FIXED ASSETS	%	(36.08)
TOTAL ASSETS	%	(49.75)

PROFITABILITY RATIO

Gross Profit Margin	5.32	Deteriorated	Industrial Average	26.44
Net Profit Margin	(8.23)	Deteriorated	Industrial Average	3.23
Return on Assets	(34.05)	Deteriorated	Industrial Average	4.63
Return on Equity	(142.71)	Deteriorated	Industrial Average	8.69

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 5.32%. When compared with the industry average, the ratio of the company was lower, 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 -8.23%. 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 -34.05%.

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 -142.71%.

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	1.20	Acceptable	Industrial Average	1.75
Quick Ratio	0.96
Cash Conversion Cycle	(2.94)

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 1.2 times in 2010, decreased from 2.51 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 0.96 times in 2010, decreased from 2.41 times, by excluding inventory, the company may have problems meeting current liabilities.

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 -3 days.

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

Current Ratio Downtrend

LEVERAGE RATIO

Debt Ratio	0.76	Acceptable	Industrial Average	0.47
Debt to Equity Ratio	3.19	Risky	Industrial Average	0.94
Times Interest Earned	-		Industrial Average	5.88

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.

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 0.76 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	6.62	Impressive	Industrial Average	4.67
Total Assets Turnover	4.14	Impressive	Industrial Average	1.43
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	12.95
Receivables Conversion Period	19.34
Receivables Turnover	18.87	Impressive	Industrial Average	3.48
Payables Conversion Period	22.27

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 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%)

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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.