MIRA INFORM REPORT

Report Date :

07.11.2012

IDENTIFICATION DETAILS

Name :	SIAM DAL MILL LIMITED PARTNERSHIP
Registered Office :	100/3 Moo 6, Thonburi-Pakthor Road, Samaedam, Bangkhunthien, Bangkok 10150
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	16.05.1979
Com. Reg. No.:	0103522009079
Legal Form :	Limited Partnership
Line of Business :	importer, distributor & service provider of agricultural and ingredient products
No. of Employees :	06 employees

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Thailand	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

thailand - ECONOMIC OVERVIEW

With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.

Source : CIA

Company name

SIAM DAL MILL LIMITED PARTNERSHIP

SUMMARY

BUSINESS ADDRESS : 100/3 MOO 6, THONBURI-PAKTHOR ROAD,

SAMAEDAM, BANGKHUNTHIEN,

BANGKOK 10150, THAILAND

TELEPHONE : [66] 2894-0391

FAX : [66] 2741-3877

E-MAIL ADDRESS : hukamchand@hukamchand.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1979

REGISTRATION NO. : 0103522009079

TAX ID NO. : 3102187341

CAPITAL REGISTERED : BHT. 2,500,000

CAPITAL PAID-UP : BHT. 2,500,000

PARTNER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : LIMITED PARTNERSHIP

EXECUTIVE : MR. VERA ARORA, THAI

MANAGING PARTNER

NO. OF STAFF : 6

LINES OF BUSINESS : AGRICULTURAL AND INGREDIENT PRODUCTS

IMPORTER, DISTRIBUTOR & SERVICE PROVIDER

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : FAIR WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH FAIR PERFORMANCE

HISTORY

The subject was established on May 16, 1979 as a limited partnership under the name style SIAM DAL MILL LIMITED PARTNERSHIP by Thai partners, with the business objective to import and distribute agricultural and ingredient products. It currently employs 6 staff.

The subject’s registered address is 100/3 Moo 6, Thonburi-Pakthor Rd., Samaedam, Bangkhunthien, Bangkok 10150, and this is the subject’s current operation address.

AUTHORIZED PERSON

Mr. Vera Arora can sign on behalf of the subject with seal affixed. He also bears full financial responsibility by law.

MANAGEMENT

Mr. Vera Arora is the Managing Partner.

He is Thai nationality with the age of 75 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing of agricultural and ingredient products, such as spices, seasoning, caraway seeds, red chili powder and etc., as well as providing of agro-milling service.

PURCHASE

The products are purchased from suppliers both domestic and overseas, mainly in India.

SALES/SERVICES

The products are sold and serviced locally by wholesale to traders and manufacturers.

MAJOR CUSTOMER

Hukamchand Company Limited : Thailand

RELATED AND AFFILIATED COMPANY

Hukamchand Company Limited

Business Type : Importing and distributing of agricultural and food ingredient products.

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 for the past two years.

CREDIT

Sales / services 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.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject employs 6 staff.

LOCATION DETAILS

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

COMMENT

It is involved in wholesale distributor of agricultural products, such as spices, chili, seeds and etc. The products are served mainly to traders and manufacturers. However, its business is believed to grow steadily from strong demand in the market.

FINANCIAL INFORMATION

The capital was registered at Bht. 2,500,000 which was carried by 2 persons as followed:

Name Age Amount

Mr. Manoch Arora 72 Bht. 1,250,000

Mr. Vera Arora 75 Bht. 1,250,000 [Unlimited Partner]

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

None

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2011 & 2010 were:

ASSETS

Current Assets	2011	2010
Cash and Cash Equivalents	4,865,141.16	8,941,602.54
Trade Accounts & Other Receivable	2,576,098.33	1,582,143.78
Inventories	3,001,421.00	1,248,192.00
Total Current Assets	10,442,660.49	11,771,938.32
Fixed Assets	660,059.73	719,767.58
Other Non-current Assets	127,400.00	127,400.00
Total Assets	11,230,120.22	12,619,105.90

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2011	2010
Trade Accounts & Other Payable	448,903.41	54,590.04
Accrued Income Tax	72,963.16	135,597.22
Total Current Liabilities	521,866.57	190,187.26
Long-term Loan from Person or Related Company	1,500,000.00	4,290,000.00
Total Liabilities	2,021,866.57	4,480,187.26
Shareholders' Equity
Capital Paid	2,500,000.00	2,500,000.00
Retained Earning - Unappropriated	6,708,253.65	5,638,918.64
Total Shareholders' Equity	9,208,253.65	8,138,918.64
Total Liabilities & Shareholders' Equity	11,230,120.22	12,619,105.90

PROFIT & LOSS ACCOUNT

Revenue	2011	2010
Sales Income	20,729,565.00	20,962,380.60
Interest Income	70,449.83	65,852.19
Other Income	84,214.20	-
Total Revenues	20,884,229.03	21,028,232.79
Expenses
Change in Finished Goods	[1,753,229.00]	5,273,448.00
Purchase of Goods	20,136,855.27	13,941,852.64
Employees Expenses	600,000.00	200,000.00
Depreciation	59,707.85	59,707.85
Other Expenses	571,642.25	202,806.18
Total Expenses	19,614,976.37	19,677,814.67
Profit / [Loss] before Income Tax	1,269,252.66	1,350,418.12
Income Tax	[199,917.65]	[218,755.72]
Net Profit / [Loss]	1,069,335.01	1,131,662.40
Retained Earning, Beginning of Year	5,638,918.64	4,507,256.24
Retained Earning, End of Year	6,708,253.65	5,638,918.64

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	20.01	61.90
QUICK RATIO	TIMES	14.26	55.33
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	31.41	29.12
TOTAL ASSETS TURNOVER	TIMES	1.85	1.66
INVENTORY CONVERSION PERIOD	DAYS	54.40	32.68
INVENTORY TURNOVER	TIMES	6.71	11.17
RECEIVABLES CONVERSION PERIOD	DAYS	45.36	27.55
RECEIVABLES TURNOVER	TIMES	8.05	13.25
PAYABLES CONVERSION PERIOD	DAYS	8.14	1.43
CASH CONVERSION CYCLE	DAYS	91.63	58.80
PROFITABILITY RATIO
COST OF GOODS SOLD	%	97.14	66.51
SELLING & ADMINISTRATION	%	(5.28)	26.40
INTEREST	%	-	-
GROSS PROFIT MARGIN	%	3.61	33.81
NET PROFIT MARGIN BEFORE EX. ITEM	%	6.12	6.44
NET PROFIT MARGIN	%	5.16	5.40
RETURN ON EQUITY	%	11.61	13.90
RETURN ON ASSET	%	9.52	8.97
EARNING PER SHARE	BAHT	42.77	45.27
LEVERAGE RATIO
DEBT RATIO	TIMES	0.18	0.36
DEBT TO EQUITY RATIO	TIMES	0.22	0.55
TIME INTEREST EARNED	TIMES	-	-
ANNUAL GROWTH
SALES GROWTH	%	(1.11)
OPERATING PROFIT	%	(6.01)
NET PROFIT	%	(5.51)
FIXED ASSETS	%	(8.30)
TOTAL ASSETS	%	(11.01)

PROFITABILITY RATIO

Gross Profit Margin	3.61	Acceptable	Industrial Average	6.47
Net Profit Margin	5.16	Impressive	Industrial Average	0.43
Return on Assets	9.52	Impressive	Industrial Average	1.42
Return on Equity	11.61	Impressive	Industrial Average	4.61

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 3.61%. 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 5.16%, 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 9.52%, 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 11.61%, 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	20.01	Impressive	Industrial Average	1.25
Quick Ratio	14.26
Cash Conversion Cycle	91.63

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 20.01 times in 2011, decreased from 61.9 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 14.26 times in 2011, decreased from 55.33 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 92 days.

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

Current Ratio Downtrend

LEVERAGE RATIO

Debt Ratio	0.18	Impressive	Industrial Average	0.67
Debt to Equity Ratio	0.22	Impressive	Industrial Average	2.08
Times Interest Earned	-		Industrial Average	0.74

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 0.18 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	31.41	Impressive	Industrial Average	7.17
Total Assets Turnover	1.85	Acceptable	Industrial Average	3.36
Inventory Conversion Period	54.40
Inventory Turnover	6.71	Impressive	Industrial Average	6.63
Receivables Conversion Period	45.36
Receivables Turnover	8.05	Impressive	Industrial Average	7.41
Payables Conversion Period	8.14

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

Fixed Assets Turnover Uptrend

Total Assets Turnover Uptrend

Inventory Turnover Downtrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.60
UK Pound	1	Rs.87.31
Euro	1	Rs.69.86

INFORMATION DETAILS

Report Prepared by :

MNL

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.