MIRA INFORM REPORT

Report Date :

18.05.2012

IDENTIFICATION DETAILS

Name :	SUKHONTAWIT TEXTILE CO., LTD.
Registered Office :	109/33 Moo 1, Sukhontawit Road, T. Donkaidee, A. Krathumban, Samutsakorn 74110
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	2008
Com. Reg. No.:	0745551000391
Legal Form :	Private Limited Company
Line of Business :	Importer, Distributor & Service of Textile Machinery, Spare Parts & Components
No. of Employees :	9

RATING & COMMENTS

MIRA’s Rating :

B

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

SUKHONTAWIT TEXTILE CO., LTD.

SUMMARY

BUSINESS ADDRESS : 109/33 MOO 1, SUKHONTAWIT ROAD,

T. DONKAIDEE, A. KRATHUMBAN,

SAMUTSAKORN 74110

TELEPHONE : [66] 34 460-353, 081 617-6765

FAX : [66] 34 460-353, 081 617-6765

E-MAIL ADDRESS : chanvit.textile@gmail.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2008

REGISTRATION NO. : 0745551000391

TAX ID NO. : 3032936620

CAPITAL REGISTERED : BHT. 3,000,000

CAPITAL PAID-UP : BHT. 3,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. CHANVIT PHUNGJITISANT, THAI

MANAGING DIRECTOR

NO. OF STAFF : 9

LINES OF BUSINESS : TEXTILE MACHINERY, SPARE PARTS &

COMPONENTS

IMPORTER, DISTRIBUTOR & 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 February 4, 2008 as a private limited company under the registered name SUKHONTAWIT TEXTILE CO., LTD., by Thai group, with the business objective to import and distribute machinery, spare parts and components for textile industry. It currently employs 9 staff.

The subject’s registered address is 109/33 Moo 1, Sukhontawit Rd., T. Donkaidee,

A. Krathumban, Samutsakorn 74110, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Chanvit Phungjitisant	Thai	45
Mrs. Sasithorn Phungjitisant	Thai	40

AUTHORIZED PERSON

One of the above directors can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Chanvit Phungjitisant is the Managing Director.

He is Thai nationality with the age of 45 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing machinery, spare parts and components, e.g. joints, gasket and etc., as well as providing after sales services for textile industry.

PURCHASE

The products are purchased from suppliers both domestic and overseas, mainly in Mexico, U.S.A. and Republic of China

MAJOR SUPPLIER

Javier Nava Lopez Jointly & Several Inc. : Mexico

SALES

100% of the products is sold locally to wholesalers, retailers and end-users.

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.

BANKING

The banker’s name was not disclosed.

EMPLOYMENT

The subject employs 9 staff.

LOCATION DETAILS

The premise is owned for administrative office at the heading address. Premise is located in provincial, on the outskirts of Bangkok.

COMMENT

A mid increasing global competition, textile operators have stepped up imports of new machinery in a bid to overhaul their production systems to cut costs and raise product standards. The operators are motivated to adjust production systems considerably, partly because of the government’s policy to promote Thailand as a regional textile hub.

Therefore, the subject has opportunity in expanding its domestic market.

FINANCIAL INFORMATION

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

THE SHAREHOLDERS LISTED WERE

[as at February 2, 2008]

NAME	HOLDING	%
Mr. Chanvit Phungjitisant Nationality: Thai Address : 68/1 Sukhumvit 53 Rd., Klongtonnua, Wattana, Bangkok	19,950	66.50
Mrs. Sasithorn Phungjitisant Nationality: Thai Address : 68/1 Sukhumvit 53 Rd., Klongtonnua, Wattana, Bangkok	10,000	33.33
Mr. Kongsak Noknuam Nationality: Thai Address : 22/150 Moo 6, Salaya, Putthamonthon, Nakornpathom	10
Ms. Tarnthip Petchnaree Nationality: Thai Address : 47/1 Moo 8, Thamai, Krathumban, Samutsakorn	10
Mr. Prasit Darapai Nationality: Thai Address : 22 Moo 3, Phosadej, Muang, Nakornsrithammarat	10	= 0.17
Mr. Nopparat Chuaythaphya Nationality: Thai Address : 25 Moo 6, Banmai, Pakpanang, Nakornsrithammarat	10
Mr. Naris Nikachit Nationality: Thai Address : 4/4 Moo 4, Kukood, Satingphra, Songkhla	10

Total Shareholders : 7

Share Structure [as at February 2, 2008 ]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	30,000	100.00
Foreign	-	-	-
Total	7	30,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO

Mrs. Chusri Thongsart No. 2505

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	1,565,600.82	1,366,388.36
Trade Accounts & Notes Receivable	11,466,656.15	11,368,988.34
Short-term Loan to Person or Related Company	3,000,000.00	-
Inventories	-	3,519,472.84
Other Current Assets	5,565,958.24	2,355,075.59
Total Current Assets	21,598,215.21	18,609,925.13
Fixed Assets	4,908,679.29	4,987,362.01
Other Assets	600.00	600.00
Total Assets	26,507,494.50	23,597,887.14

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2010	2009
Bank Overdraft & Short-term Loan from Financial Institutions	13,933,785.29	15,000,000.00
Current Portion of Long-term Loans	-	139,976.64
Trade Accounts Payable	395,004.90	-
Other Current Liabilities	341,519.88	2,994,014.64
Total Current Liabilities	14,670,310.07	18,133,991.28
Other Non-current Liabilities	4,842,791.58	373,271.02
Total Liabilities	19,513,101.65	18,507,262.30
Shareholders’ Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 30,000 shares	3,000,000.00	3,000,000.00
Capital Paid	3,000,000.00	3,000,000.00
Retained Earning Unappropriated	3,994,392.85	2,090,624.84
Total Shareholders' Equity	6,994,392.85	5,090,624.84
Total Liabilities & Shareholders' Equity	26,507,494.50	23,597,887.14

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales & Services Income	73,623,202.09	42,577,023.48
Other Income	231,685.28	214,814.35
Total Revenues	73,854,887.37	42,791,837.83
Expenses
Cost of Goods Sold	63,784,910.19	37,083,861.62
Selling Expenses	4,119,177.62	2,607,845.35
Administrative Expenses	2,686,396.87	1,520,597.17
Total Expenses	70,590,484.68	41,212,304.14
Profit / [Loss] before Financial Cost & Income Tax	3,264,402.69	1,579,533.69
Financial Cost	[864,349.04]	[133,158.22]
Profit / [Loss] before Income Tax	2,400,053.65	1,446,375.47
Income Tax	[496,285.64]	[259,584.64]
Net Profit / [Loss]	1,903,768.01	1,186,790.83

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.47	1.03
QUICK RATIO	TIMES	1.09	0.70
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	15.00	8.54
TOTAL ASSETS TURNOVER	TIMES	2.78	1.80
INVENTORY CONVERSION PERIOD	DAYS	-	34.64
INVENTORY TURNOVER	TIMES	-	10.54
RECEIVABLES CONVERSION PERIOD	DAYS	56.85	97.46
RECEIVABLES TURNOVER	TIMES	6.42	3.75
PAYABLES CONVERSION PERIOD	DAYS	2.26	-
CASH CONVERSION CYCLE	DAYS	54.59	132.10
PROFITABILITY RATIO
COST OF GOODS SOLD	%	86.64	87.10
SELLING & ADMINISTRATION	%	9.24	9.70
INTEREST	%	1.17	0.31
GROSS PROFIT MARGIN	%	13.68	13.41
NET PROFIT MARGIN BEFORE EX. ITEM	%	4.43	3.71
NET PROFIT MARGIN	%	2.59	2.79
RETURN ON EQUITY	%	27.22	23.31
RETURN ON ASSET	%	7.18	5.03
EARNING PER SHARE	BAHT	63.46	39.56
LEVERAGE RATIO
DEBT RATIO	TIMES	0.74	0.78
DEBT TO EQUITY RATIO	TIMES	2.79	3.64
TIME INTEREST EARNED	TIMES	3.78	11.86
ANNUAL GROWTH
SALES GROWTH	%	72.92
OPERATING PROFIT	%	106.67
NET PROFIT	%	60.41
FIXED ASSETS	%	(1.58)
TOTAL ASSETS	%	12.33

PROFITABILITY RATIO

Gross Profit Margin	13.68	Satisfactory	Industrial Average	15.43
Net Profit Margin	2.59	Impressive	Industrial Average	1.82
Return on Assets	7.18	Impressive	Industrial Average	3.57
Return on Equity	27.22	Impressive	Industrial Average	9.66

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 13.68%. When compared with the industry average, the ratio of the company was lower. This 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. Net Profit Margin ratio is 2.59%, 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 7.18%, 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 27.22%, 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	1.47	Satisfactory	Industrial Average	1.59
Quick Ratio	1.09
Cash Conversion Cycle	54.59

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 1.47 times in 2010, increase from 1.03 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 1.09 times in 2010, increase from 0.7 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 55 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.74	Acceptable	Industrial Average	0.62
Debt to Equity Ratio	2.79	Risky	Industrial Average	1.66
Times Interest Earned	3.78	Impressive	Industrial Average	3.17

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 3.78 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 0.74 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 Uptrend

ACTIVITY RATIO

Fixed Assets Turnover	15.00	Impressive	Industrial Average	8.14
Total Assets Turnover	2.78	Impressive	Industrial Average	1.96
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	4.37
Receivables Conversion Period	56.85
Receivables Turnover	6.42	Impressive	Industrial Average	4.86
Payables Conversion Period	2.26

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.54.38
UK Pound	1	Rs.86.57
Euro	1	Rs.69.30

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.