MIRA INFORM REPORT

Report Date :

04.10.2012

IDENTIFICATION DETAILS

Name :	SEAL PRECISION CO., LTD.

Registered Office :	57/22 Moo 5, Soi Thamsiri, Bangna-Trad Road, K.M. 26, Bangsaothong, Samutprakarn 10540

Country :	Thailand

Financials (as on) :	31.12.2011

Date of Incorporation :	13.11.1987

Com. Reg. No.:	0115530002004

Legal Form :	Private Limited Company

Line of Business :	Manufacturer, Distributor and Exporter of Canning Equipment and Supplies

No. of Employees :	140

RATING & COMMENTS

MIRA’s Rating :

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

(31.03.2011)

Current Rating

(30.06.2012)

Thailand

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

SEAL PRECISION CO., LTD.

SUMMARY

BUSINESS ADDRESS : 57/22 MOO 5, SOI THAMSIRI, BANGNA-TRAD ROAD,

K.M. 26, BANGSAOTHONG,

SAMUTPRAKARN 10540

TELEPHONE : [66] 2708-5522-7

FAX : [66] 2708-5528, 2708-5755

E-MAIL ADDRESS : sealprecision@gmail.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1987

REGISTRATION NO. : 0115530002004 [Former : SOR. POR. 1006]

TAX ID NO. : 3271014752

CAPITAL REGISTERED : BHT. 10,000,000

CAPITAL PAID-UP : BHT. 10,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. VIRAT SUPASIT, THAI

PRESIDENT

NO. OF STAFF : 140

LINES OF BUSINESS : CANNING EQUIPMENT AND SUPPLIES

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 November 13, 1987 as a private limited company under the name style SEAL PRECISION CO., LTD., by Thai groups, in order to manufacture and distribute wide range of canning equipment and supplies to both domestic and export markets. It currently employs approximate 140 staff.

The subject’s registered address was initially located at 75 Moo 2, Bangna-Trad Rd., Rachathewa, Bangplee, Samutprakarn 10260.

In 2008, subject’s registered address was relocated to 57/22 Moo 5, Soi Thamsiri, Bangna-Trad Rd., K.M. 26, Bangsaothong, Samutprakarn 10540, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name	Nationality	Age

Mr. Virat Supasit	Thai	63
Mrs. Veerawan Supasit	Thai	56

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Virat Supasit is the President.

He is Thai nationality with the age of 63 years old.

Mrs. Veerawan Supasit is the Vice President.

She is Thai nationality with the age of 56 years old.

Mr. Mongkol Piamnamchai is the Factory Manager.

He is Thai nationality.

Mr. Lakrat Yaovamalee is the Sales & Marketing Manager.

He is Thai nationality.

Mrs. Chadaporn Chaypet is the Accounting Manager.

She is Thai nationality.

Mr. Kanok Prichavudhi is the International Sales Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing wide range of parts for cans making machine, including seaming rollers, seaming chucks, seaming spare parts, can & end tooling, slitter cutters, scroll shear blades, industrial knife, head lower chuck assembly and etc., according to customer’s requirement. Ranges of products are served to various types of machineries for foods and food processing, packaging, cutting and others.

The subject also provides machinery installation service.

MAJOR BRANDS

“SEAL PRECISION”

PURCHASE

70% of raw materials is purchased from local suppliers and agents, and the remaining 30% mainly steel, stainless steel and tungsten carbide are imported from Germany, United States of America, Japan, Republic of China and Australia.

MAJOR SUPPLIERS

Metal Engineering Co., Ltd. : Thailand [5%]

Intercon Carbide Tooling [Thailand] Co., Ltd. : Thailand [5%]

B.J. Motors Parts Co., Ltd. : Thailand [5%]

SALES [LOCAL]

80% of its products is sold locally to manufacturers and wholesalers.

EXPORT [COUNTRY]

20% of its products is exported to Australia, Malaysia, Indonesia, Vietnam,

Republic of China, Taiwan, Myanmar, Singapore, Korea and India.

MAJOR CUSTOMERS

Varin Food Machinery Co., Ltd. : Thailand

SUBSIDIARIES & AFFILIATED COMPANIES

Varin Food Machinery Co., Ltd.

Business Type: Assembler of can making machine.

Intercon Carbide Tooling [Thailand] Co., Ltd.

Business Type: Manufacture of tool & die of precision spare parts for electronic works

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 are by cash or on the credits term of 30-60-90-120 days.

Local bills are paid by cash or on the credits term of 30-60-90 days.

Imports are by L/C at sight or T/T.

Exports are against T/T.

BANKING

Bangkok Bank Public Co., Ltd.

[Somrong Branch : Sukhumvit Rd., North Samrong, Muang, Samutprakarn]

Kasikornbank Public Co., Ltd.

[Head Office : 1 Kasikorn Lane, Rajburana Rd., Rajburana, Bangkok 10140]

EMPLOYMENT

The subject employs approximately 140 staff [office staff and factory workers].

LOCATION DETAILS

The premise is owned for operating office, factory and warehouse on 11,000 sq. m. of area at the heading address. Premise is located in industrial area.

COMMENT

The company brings long years of experience to the local of modern machineries in bottle and can sealing machines. With an eye to the future the company strives to maintain the highest standards of quality and services.

The subject’s business has steadily grown in line with growing of food and beverage industries. Strong domestic consumption as well as increasing exports of food and beverages have boosted sales of food processing equipment and machinery.

FINANCIAL INFORMATION

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

On December 24, 2003, the capital was increased to Bht. 10,000,000 divided into 10,000 shares of Bht. 1,000 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 30, 2012]

NAME	HOLDING	%
Mr. Virat Supasit Nationality: Thai Address : 75 Moo 2, Rachathewa, Bangplee, Samutprakarn	4,900	49.00
Mrs. Veerawan Supasit Nationality: Thai Address : 133 Moo 3, Sapansung, Bangkok	1,250	12.50
Ms. Varinthra Supasit Nationality: Thai Address : 34/36 Moo 16, Bangkaew, Bangplee, Samutprakarn	950	9.50
Ms. Ratanawan Supasit Nationality: Thai Address : 34/36 Moo 16, Bangkaew, Bangplee, Samutprakarn	950	9.50
Ms. Veerat Supasit Nationality: Thai Address : 34/36 Moo 16, Bangkaew, Bangplee, Samutprakarn	950	9.50
Ms. Vararat Supasit Nationality: Thai Address : 34/36 Moo 16, Bangkaew, Bangplee, Samutprakarn	950	9.50

Mr. Rapee Piewkliang

Nationality: Thai

Address : 100/138 Moo 20, Minburi, Bangkok

0.50

Total Shareholders : 7

Share Structure [as at April 30, 2012]

Nationality	Shareholders	No. of Share	% Shares

Thai	7	10,000	100.00
Foreign	-	-	-
Total	7	10,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Ms. Pornthip Tangpongbandit No. 3707

Note:

The half-year 2012 financial statement was not available during investigation.

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2011	2010

Cash and Cash at Bank	1,007,390.13	2,007,160.10
Short-term Investment	65,195.10	64,354.83
Trade Account Receivable	35,300,731.33	65,305,120.24
Other Receivable	1,381,349.92	6,198,388.91
Inventories	28,480,762.60	33,494,476.02
Prepayment for Machinery	27,012,663.60	-
Other Current Assets	199,138.53	455,228.21
Total Current Assets	93,447,231.21	107,524,728.31
Cash at Bank under Commitment	3,185,887.10	5,649,260.89
Fixed Assets	192,119,961.83	167,282,392.14
Other Non-current Assets	7,500.00	7,500.00
Total Assets	288,760,580.14	280,463,881.34

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2011	2010

Bank Overdraft & Short-term Loan from Financial Institution	20,379,837.76	-
Trade Account Payable	75,063,796.11	84,419,470.67
Other Payable	10,652,421.74	9,947,933.79
Current Portion of Long-term Loan	1,992,000.00	28,402,000.00
Current Portion of Financial Lease Contract Liabilities	17,338,263.47	5,553,478.85
Other Current Liabilities	596,262.10	2,232,503.23
Total Current Liabilities	126,022,581.18	130,555,386.54
Long-term Loan from Person or Related Company	77,320,000.00	83,391,504.00
Long-term Loan, Net of Current Portion	-	1,992,000.00
Financial Lease Contract Liabilities, Net of Current Portion	21,747,410.99	7,854,335.04
Total Liabilities	225,089,992.17	223,793,225.58

Shareholders' Equity

Share capital : Baht 1,000 par value authorized, issued and fully paid share capital 10,000 shares	10,000,000.00	10,000,000.00
Capital Paid	10,000,000.00	10,000,000.00
Retained Earning - Unappropriated	53,670,587.97	46,670,655.76
Total Shareholders' Equity	63,670,587.97	56,670,655.76
Total Liabilities & Shareholders' Equity	288,760,580.14	280,463,881.34

PROFIT & LOSS ACCOUNT

Revenue	2011	2010

Sales & Services	152,208,864.13	149,712,625.41
Other Income	5,185,440.40	33,584,044.07
Total Revenues	157,394,304.53	183,296,669.48
Expenses

Cost of Goods Sold & Services	116,772,011.45	128,115,008.66
Selling Expenses	5,685,690.86	9,901,890.82
Administrative Expenses	22,796,554.47	24,885,943.61
Loss on Exchange Rate	126,320.71	-
Total Expenses	145,380,577.49	162,902,843.09
Profit before Financial Cost & Income Tax	12,013,727.04	20,393,826.39
Financial Cost	[2,849,336.24]	[3,799,556.18]
Profit before Income Tax	9,164,390.80	16,594,270.21
Income Tax	[2,164,458.59]	[4,314,007.70]
Net Profit / [Loss]	6,999,932.21	12,280,262.51

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010

LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.74	0.82
QUICK RATIO	TIMES	0.30	0.56

ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	0.79	0.89
TOTAL ASSETS TURNOVER	TIMES	0.53	0.53
INVENTORY CONVERSION PERIOD	DAYS	89.02	95.43
INVENTORY TURNOVER	TIMES	4.10	3.82
RECEIVABLES CONVERSION PERIOD	DAYS	84.65	159.21
RECEIVABLES TURNOVER	TIMES	4.31	2.29
PAYABLES CONVERSION PERIOD	DAYS	234.63	240.51
CASH CONVERSION CYCLE	DAYS	(60.95)	14.13

PROFITABILITY RATIO
COST OF GOODS SOLD	%	76.72	85.57
SELLING & ADMINISTRATION	%	18.71	23.24
INTEREST	%	1.87	2.54
GROSS PROFIT MARGIN	%	26.69	36.86
NET PROFIT MARGIN BEFORE EX. ITEM	%	7.89	13.62
NET PROFIT MARGIN	%	4.60	8.20
RETURN ON EQUITY	%	10.99	21.67
RETURN ON ASSET	%	2.42	4.38
EARNING PER SHARE	BAHT	70.00	122.80

LEVERAGE RATIO
DEBT RATIO	TIMES	0.78	0.80
DEBT TO EQUITY RATIO	TIMES	3.54	3.95
TIME INTEREST EARNED	TIMES	4.22	5.37

ANNUAL GROWTH
SALES GROWTH	%	1.67
OPERATING PROFIT	%	(41.09)
NET PROFIT	%	(43.00)
FIXED ASSETS	%	14.85
TOTAL ASSETS	%	2.96

PROFITABILITY RATIO

Gross Profit Margin	26.69	Impressive	Industrial Average	20.69
Net Profit Margin	4.60	Impressive	Industrial Average	2.77
Return on Assets	2.42	Acceptable	Industrial Average	3.42
Return on Equity	10.99	Impressive	Industrial Average	7.72

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 26.69%. 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 4.6%, 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. When compared with the industry average, it was lower, the company's figure is 2.42%.

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 10.99%, 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	0.74	Risky	Industrial Average	1.60
Quick Ratio	0.30
Cash Conversion Cycle	(60.95)

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 0.74 times in 2011, decreased from 0.82 times, then the company may not be efficiently using its current assets. 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 0.3 times in 2011, decreased from 0.56 times, then the company has not enough current assets that presumably can be quickly converted to cash for pay financial obligations.

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 -61 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.78	Acceptable	Industrial Average	0.51
Debt to Equity Ratio	3.54	Risky	Industrial Average	1.17
Times Interest Earned	4.22	Satisfactory	Industrial Average	4.45

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 4.22 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 0.78 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	0.79	Deteriorated	Industrial Average	2.94
Total Assets Turnover	0.53	Deteriorated	Industrial Average	1.19
Inventory Conversion Period	89.02
Inventory Turnover	4.10	Impressive	Industrial Average	2.87
Receivables Conversion Period	84.65
Receivables Turnover	4.31	Satisfactory	Industrial Average	4.75
Payables Conversion Period	234.63

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 Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.33
UK Pound	1	Rs.84.30
Euro	1	Rs.67.45

INFORMATION DETAILS

Report Prepared by :

PRL

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.