MIRA INFORM REPORT

Report Date :

26.10.2012

IDENTIFICATION DETAILS

Name :	THAI-HUA INTERFOODS CO., LTD.
Registered Office :	754 Jaransanitwong 57 Road, Bangbamru, Bangplad, Bangkok 10700,
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	2007
Com. Reg. No.:	0105550094281
Legal Form :	Private Limited Company
Line of Business :	Distributor and Exporter of Frozen Seafoods
No. of Employees :	4

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 (31.03.2011)	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 AND ADDRESS

THAI-HUA INTERFOODS CO., LTD.

SUMMARY

BUSINESS ADDRESS : 754 JARANSANITWONG 57 ROAD, BANGBAMRU,

BANGPLAD, BANGKOK 10700, THAILAND

TELEPHONE : [66] 2394-7755

FAX : [66] 2394-7755

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2007

REGISTRATION NO. : 0105550094281

TAX ID NO. : 3032771764

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 : MS. SURANGKANA WONGVIWAT, THAI

MANAGING DIRECTOR

NO. OF STAFF : 4

LINES OF BUSINESS : FROZEN SEAFOODS

DISTRIBUTOR AND EXPORTER

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 September 7, 2007 as a private limited company under the name style THAI-HUA INTERFOODS CO., LTD. by Thai groups. Its business objective is to distribute various kinds of frozen seafoods to both domestic and international markets. Subject currently employs 4 staff.

The subject’s registered address was initially located at 563 Rama 3 Rd., Bangpongpang, Yannawa, Bangkok 10120.

On December 11, 2008 the subject’s registered address was relocated to 754 Jaransanitwong 57 Rd., Bangbamru, Bangplad, Bangkok 10700, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Ms. Surangkana Wongviwat	Thai	39
Mr. Nikom Purinrak	Thai	43

AUTHORIZED PERSON

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

MANAGEMENT

Ms. Surangkana Wongviwat is the Managing Director.

She is Thai nationality with the age of 39 years old.

BUSINESS OPERATIONS

The subject is engaged in distributing and exporting various kinds of frozen seafoods, such as fish, squid, shell, crab and etc.

PURCHASE

100% of the products is purchased from local supplies.

SALES

90% of the products is sold locally to wholesalers and end-users, the remaining 10% is exported to Japan, Brunei, India, South Korea and Malaysia.

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 to IRICO’S DATABASE 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.

Exports are against T/T.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject employs 4 staff.

LOCATION DETAILS

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

Note

Refer to your given address, 724 Jaransanitwong 57 Rd., Bangbamru, Bangplad, Bangkok

10700, is Ms. Surangkana Wongviwat’s residential address.

COMMENT

Subject was formed in 2007 as a distributor and exporter of frozen seafoods. The products are mainly for export markets.

Local fishery industry has been slowing down during the past several years, which has also reduced of sea lives, while the costs of products has been increased. This has affected of virtuous goods as the prices rise and making no return for the operator.

Subject also facing the same problems which its business is slowing down compared to the previous years.

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 April 30, 2011]

NAME	HOLDING	%
Ms. Surangkana Wongviwat Nationality: Thai Address : 724 Jaransanitwong 57 Rd., Bangbamru, Bangplad, Bangkok	16,250	54.17
Mr. Nikom Purinrak Nationality: Thai Address : 156/9 Moo 5, Taladlang Rd., Bangkung, Muang, Suratthani	12,000	40.00
Ms. Suchada Ratchatawan Nationality: Thai Address : 754 Jaransanitwong 57 Rd., Bangbamru, Bangplad, Bangkok	1,750	5.83

Total Shareholders : 3

Share Structure

[as at April 30, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	3	30,000	100.00
Foreign	-	-	-
Total	3	30,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Nutcha Sirithanachote No. 4921

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 Equivalents	342,480.60	1,531,951.12
Trade Accounts Receivable	2,018,373.77	973,633.83
Inventories	6,597,455.06	23,121,676.10
Other Current Assets	44,009,443.34	17,917,352.36
Total Current Assets	52,967,752.77	43,544,613.41
Long-term Lending to Related Person	-	5,985,500.39
Office Equipment	513,374.18	628,368.86
Total Assets	53,481,126.95	50,158,482.66

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Trade Accounts Payable	30,689,177.15	43,505,925.32
Short-term Loan from Related Company	15,500,000.00	-
Current Portion of Hire-purchase Payable	167,928.54	157,455.44
Other Current Liabilities	1,174,493.89	1,695,306.25
Total Current Liabilities	47,531,599.58	45,358,687.01
Hire-purchase Payable, Net of Current Portion	209,153.37	377,081.91
Total Liabilities	47,740,752.95	45,735,768.92
Shareholders' Equity
Share capital : Baht 100 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	2,740,374.00	1,422,713.74
Total Shareholders' Equity	5,740,374.00	4,422,713.74
Total Liabilities & Shareholders' Equity	53,481,126.95	50,158,482.66

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales Income	109,185,596.76	251,854,642.52
Interest Income	277,808.93	249,782.00
Other Income	13,695.55	267,454.78
Total Revenues	109,477,101.24	252,371,879.30
Expenses
Cost of Goods Sold	100,380,268.37	245,013,550.25
Selling Expenses	3,955,543.42	4,694,101.99
Administrative Expenses	2,829,098.61	700,952.24
Total Expenses	107,164,910.40	250,408,604.48
Profit / [Loss] Before Financial Cost & Income Tax	2,312,190.84	1,963,274.82
Financial Cost	[694,749.84]	[380,805.28]
Profit / [Loss] Before Income Tax	1,617,441.00	1,582,469.54
Income Tax	[299,780.74]	[277,544.13]
Net Profit / [Loss]	1,317,660.26	1,304,925.41

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.11	0.96
QUICK RATIO	TIMES	0.05	0.06
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	212.68	400.81
TOTAL ASSETS TURNOVER	TIMES	2.04	5.02
INVENTORY CONVERSION PERIOD	DAYS	23.99	34.44
INVENTORY TURNOVER	TIMES	15.21	10.60
RECEIVABLES CONVERSION PERIOD	DAYS	6.75	1.41
RECEIVABLES TURNOVER	TIMES	54.10	258.67
PAYABLES CONVERSION PERIOD	DAYS	111.59	64.81
CASH CONVERSION CYCLE	DAYS	(80.85)	(28.96)
PROFITABILITY RATIO
COST OF GOODS SOLD	%	91.94	97.28
SELLING & ADMINISTRATION	%	6.21	2.14
INTEREST	%	0.64	0.15
GROSS PROFIT MARGIN	%	8.33	2.92
NET PROFIT MARGIN BEFORE EX. ITEM	%	2.12	0.78
NET PROFIT MARGIN	%	1.21	0.52
RETURN ON EQUITY	%	22.95	29.51
RETURN ON ASSET	%	2.46	2.60
EARNING PER SHARE	BAHT	43.92	43.50
LEVERAGE RATIO
DEBT RATIO	TIMES	0.89	0.91
DEBT TO EQUITY RATIO	TIMES	8.32	10.34
TIME INTEREST EARNED	TIMES	3.33	5.16
ANNUAL GROWTH
SALES GROWTH	%	(56.65)
OPERATING PROFIT	%	17.77
NET PROFIT	%	0.98
FIXED ASSETS	%	(18.30)
TOTAL ASSETS	%	6.62

PROFITABILITY RATIO

Gross Profit Margin	8.33	Impressive	Industrial Average	6.59
Net Profit Margin	1.21	Satisfactory	Industrial Average	1.26
Return on Assets	2.46	Impressive	Industrial Average	2.32
Return on Equity	22.95	Impressive	Industrial Average	7.55

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 8.33%. 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 1.21%. 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. Return on Assets ratio is 2.46%, 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 22.95%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profits 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	1.11	Impressive	Industrial Average	1.07
Quick Ratio	0.05
Cash Conversion Cycle	(80.85)

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 1.11 times in 2010, increased from 0.96 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 0.05 times in 2010, decreased from 0.06 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 -81 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.89	Acceptable	Industrial Average	0.66
Debt to Equity Ratio	8.32	Risky	Industrial Average	1.94
Times Interest Earned	3.33	Impressive	Industrial Average	1.84

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 3.33 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 0.89 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	212.68	Impressive	Industrial Average	4.93
Total Assets Turnover	2.04	Impressive	Industrial Average	1.84
Inventory Conversion Period	23.99
Inventory Turnover	15.21	Impressive	Industrial Average	4.73
Receivables Conversion Period	6.75
Receivables Turnover	54.10	Impressive	Industrial Average	8.26
Payables Conversion Period	111.59

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

Fixed Assets Turnover Uptrend

Total Assets Turnover Uptrend

Inventory Turnover Uptrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.5363
UK Pound	1	Rs.86.17
Euro	1	Rs.69.74

INFORMATION DETAILS

Report Prepared by :

SDA

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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