MIRA INFORM REPORT

Report Date :

10.05.2012

IDENTIFICATION DETAILS

Name :	B B J BANGKOK LTD.
Formerly Known As :	JEWELRY TELEVISION BANGKOK LTD
Registered Office :	50^th Floor, Jewelry Trade Center, 919/544 Silom Road, Silom, Bangrak, Bangkok 10500
Country :	Thailand
Financials (as on) :	2011
Date of Incorporation :	2005
Com. Reg. No.:	0105548084207 [ Former : 010845813232]
Legal Form :	Private Limited Company
Line of Business :	Engaged in design and exporting fine jewelry such as 24K gold and platinum for bracelet, necklace, chain, enhancer, ring, earring, charm, pendants and etc.
No. of Employees :	65

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

B B J BANGKOK LTD.

[FORMER : JEWELRY TELEVISION BANGKOK LTD.]

SUMMARY

BUSINESS ADDRESS : 50^th FLOOR, JEWELRY TRADE CENTER,

919/544 SILOM ROAD, SILOM, BANGRAK,

BANGKOK 10500, THAILAND

TELEPHONE : [66] 2630-3401-4, 2630-3083-4

FAX : [66] 2630-3406

E-MAIL ADDRESS : chiang.min@acntv.com

sales@bbjbangkok.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2005

REGISTRATION NO. : 0105548084207 [ Former : 010845813232]

TAX ID. NO. : 3031876200

CAPITAL REGISTERED : BHT. 12,000,000

CAPITAL PAID-UP : BHT. 12,000,000

SHAREHOLDER’S PROPORTION : AMERICAN : 100%

FISCAL YEAR CLOSING DATE : JUNE 30

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. CHIANG KIAM MIN, SINGAPOREAN

GENERAL MANAGER

NO. OF STAFF : 65

LINES OF BUSINESS : FINE JEWELRY

EXPORTER

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : GOOD WITH NPRMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH GOOD PERFORMANCE

HISTORY

The subject was established on June 28, 2005 as a private limited company under the initially registered name “Jewelry Television Bangkok Ltd.”, by American groups, with the business objective to export various kinds of fine jewelry. On August 8, 2006, subject changed its name to B B J BANGKOK LTD. It currently employs approximate 65 staff.

Subject is a wholly owned subsidiary of America’s Collectibles Network Inc., U.S.A.

The subject’s registered address is 50^th Flr., Jewelry Trade Center, 919/544 Silom Rd., Silom, Bangrak, Bangkok 10500, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name		Nationality	Age
Mr. Fred Robert Hall	[x]	American	64
Mr. William Culver Kouns	[x]	American	58
Mr. Charles Albert Wagner III	[x]	American	68
Mr. Roger Gregory West	[x]	American	51
Mr. Gerald D. Sisk, Jr.	[x]	American	59
Ms. Natalie Frances Parman	[x]	American	40
Mr. Sunil Khinvasara		Indian	53
Mr. Chiang Kiam Min		Singaporean	49
Mr. Ekaphat Aswapongpanich	[-]	Thai	44

AUTHORIZED PERSON

Two of the mentioned directors [x] can jointly sign or one of the mentioned directors [x] can jointly sign with the director [-] on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Chiang Kiam Min is the General Manager.

He is Singaporean nationality with the age of 49 years old.

BUSINESS OPERATIONS

The subject is engaged in design and exporting fine jewelry such as 24K gold and platinum for bracelet, necklace, chain, enhancer, ring, earring, charm, pendants and etc.

The subject hires local jewelry manufacture for the production according to the subject’s design and orders.

PURCHASE

100% of the products are purchased from local suppliers and manufacturers.

IMPORT

Diamond & gemstone for production are imported from India, Africa, Japan and

Hong Kong.

EXPORT

100% of the jewelry products are exported to United States of America, Australia, Canada, New Zealand, European, Middle East and Asian countries.

PARENT COMPANY

America’s Collectibles Network Inc. : United States of America

SUBSIDIARY AND AFFILIATED COMPANY

The subject is not found to have any subsidiary nor 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 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 L/C at sight or T/T.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 65 staff.

LOCATION DETAILS

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

COMMENT

The company operates as a design, operator and exporter of gold and platinum jewelry with diamond and precious stones. The company has solid financial conditions combined with full support from its parent company in the USA. However, in the first six months of 2011 sales in USA and EU market remained weak from economic sluggish. Despite sales in Middle East and Asian region had performed well, subject still had a negative results compared to the previous year.

Nevertheless, improvement in US market has seen since the beginning of this year while Asian market remains active. It is believed that good growth rate would be seen at the end of year.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 6,000,000 divided into 60,000 shares of Bht. 100 each.

On August 8, 2006, the capital was increased to Bht. 12,000,000 divided into 120,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at October 25, 2011]

NAME	HOLDING	%
America’s Collectibles Network Inc. Nationality: American Address : 10001 Kingston Pike Knoxville, Tennessee, U.S.A.	119,993	99.99
Mr. Fred Robert Hall Nationality: American Address : 10001 Kingston Pike Knoxville, Tennessee, U.S.A.	1
Mr. William Culver Kouns Nationality: American Address : 10001 Kingston Pike Knoxville, Tennessee, U.S.A.	1
Ms. Natalie Frances Parman Nationality: American Address : 12717 Complaen Rd., Knoxville, Tennessee, U.S.A.	1	= 0.01
Mr. Sunil Khinvasara Nationality: Indian Address : 14 Merfield boulevard, New Jersey, U.S.A.	1
Mr. Gerald D Sisk, Jr. Nationality: American Address : 10001 Kingston Pike Knoxville, Tennessee, U.S.A.	1
Mr. Charles Albert Wagner III Nationality: American Address : 10001 Kingston Pike Knoxville, Tennessee, U.S.A.	1
Mr. Roger Gregory West Nationality: American Address : Oneda, Tennessee, U.S.A.	1

Total Shareholders : 8

Share Structure

[as at October 25, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	-	-	-
American	8	120,000	100.00
Total	8	120,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mr. Sivachai Komthongsathit No. 6314

BALANCE SHEET [BAHT]

The latest financial figures published for June 30, 2011 & 2010 were:

ASSETS

Current Assets	2011	2010
Cash and Cash Equivalents	9,856,530.86	4,302,102.41
Trade Accounts & Notes Receivable	253,887,289.83	278,633,630.98
Inventories	72,597,888.66	98,100,291.89
Revenue Department Receivable	3,302,536.68	6,109,021.88
Other Current Assets	1,238,207.42	1,542,711.16
Total Current Assets	340,882,453.45	388,687,758.32
Fixed Assets	2,475,371.09	3,799,736.53
Intangible Assets	351,706.49	580,086.07
Deposit	536,585.40	522,560.40
Total Assets	344,246,116.43	393,590,141.32

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2011	2010
Trade Accounts & Notes Payable	194,163,219.83	258,521,228.42
Accrued Expenses	1,568,155.00	1,271,904.08
Accrued Income Tax	2,995,828.32	3,320,163.93
Other Current Liabilities	1,806,956.98	688,537.78
Total Current Liabilities	200,534,160.13	263,801,834.21
Total Liabilities	200,534,160.13	263,801,834.21
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 120,000 shares	12,000,000.00	12,000,000.00
Capital Paid	12,000,000.00	12,000,000.00
Retained Earning - Unappropriated	131,711,956.30	117,788,307.11
Total Shareholders' Equity	143,711,956.30	129,788,307.11
Total Liabilities & Shareholders' Equity	344,246,116.43	393,590,141.32

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Sales Income	843,506,889.43	904,561,469.08
Other Income	2,343,000.78	135,313.35
Total Revenues	845,849,890.21	904,696,782.43
Expenses
Cost of Goods Sold	788,041,578.46	823,286,319.00
Selling Expenses	14,018,236.48	20,295,788.00
Administrative Expenses	24,751,065.06	41,609,227.09
Total Expenses	826,810,880.00	885,191,334.09
Profit before Income Tax	19,039,010.21	19,505,448.34
Income Tax	[5,115,361.02]	[8,096,514.93]
Net Profit / [Loss]	13,923,649.19	11,408,933.41

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.70	1.47
QUICK RATIO	TIMES	1.32	1.07
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	340.76	238.06
TOTAL ASSETS TURNOVER	TIMES	2.45	2.30
INVENTORY CONVERSION PERIOD	DAYS	33.63	43.49
INVENTORY TURNOVER	TIMES	10.85	8.39
RECEIVABLES CONVERSION PERIOD	DAYS	109.86	112.43
RECEIVABLES TURNOVER	TIMES	3.32	3.25
PAYABLES CONVERSION PERIOD	DAYS	89.93	114.61
CASH CONVERSION CYCLE	DAYS	53.56	41.31
PROFITABILITY RATIO
COST OF GOODS SOLD	%	93.42	91.01
SELLING & ADMINISTRATION	%	4.60	6.84
INTEREST	%	-	-
GROSS PROFIT MARGIN	%	6.85	9.00
NET PROFIT MARGIN BEFORE EX. ITEM	%	2.26	2.16
NET PROFIT MARGIN	%	1.65	1.26
RETURN ON EQUITY	%	9.69	8.79
RETURN ON ASSET	%	4.04	2.90
EARNING PER SHARE	BAHT	116.03	95.07
LEVERAGE RATIO
DEBT RATIO	TIMES	0.58	0.67
DEBT TO EQUITY RATIO	TIMES	1.40	2.03
TIME INTEREST EARNED	TIMES	-	-
ANNUAL GROWTH
SALES GROWTH	%	(6.75)
OPERATING PROFIT	%	(2.39)
NET PROFIT	%	22.04
FIXED ASSETS	%	(34.85)
TOTAL ASSETS	%	(12.54)

PROFITABILITY RATIO

Gross Profit Margin	6.85	Deteriorated	Industrial Average	15.83
Net Profit Margin	1.65	Impressive	Industrial Average	0.22
Return on Assets	4.04	Impressive	Industrial Average	0.24
Return on Equity	9.69	Impressive	Industrial Average	0.39

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 6.85%. 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 1.65% 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 4.04%, 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 9.69%, 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 Downtrend

Return on Equity Downtrend

LIQUIDITY RATIO

Current Ratio	1.70	Impressive	Industrial Average	1.69
Quick Ratio	1.32
Cash Conversion Cycle	53.56

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 1.7 times in 2011, increased from 1.47 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 1.32 times in 2011, increased from 1.07 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 54 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.58	Acceptable	Industrial Average	0.56
Debt to Equity Ratio	1.40	Risky	Industrial Average	1.31
Times Interest Earned	-		Industrial Average	0.96

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 0.58 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 Downtrend

Times Interest Earned Downtrend

ACTIVITY RATIO

Fixed Assets Turnover	340.76	Impressive	Industrial Average	4.89
Total Assets Turnover	2.45	Impressive	Industrial Average	1.36
Inventory Conversion Period	33.63
Inventory Turnover	10.85	Impressive	Industrial Average	2.04
Receivables Conversion Period	109.86
Receivables Turnover	3.32	Satisfactory	Industrial Average	3.46
Payables Conversion Period	89.93

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 Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.46
UK Pound	1	Rs.86.27
Euro	1	Rs.69.40

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.