MIRA INFORM REPORT

Report Date :

30.10.2012

IDENTIFICATION DETAILS

Name :	STYROLUTION [THAILAND] CO., LTD.

Formerly Known As :	INEOS ABS [THAILAND] CO., LTD

Registered Office :	4/2 I-8 Road, Mab Ta Phut Industrial Estate, T. Mab Ta Phut, A. Muang, Rayong 21150

Country :	Thailand

Financials (as on) :	31.12.2011

Date of Incorporation :	26.02.2004

Com. Reg. No.:	0215547000670

Legal Form :	Private Limited Company

Line of Business :	Manufacturer, Distributor and Exporter of Plastic Resin

No. of Employees :	320

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

STYROLUTION [THAILAND] CO., LTD.

[FORMER : INEOS ABS [THAILAND] CO., LTD.]

SUMMARY

BUSINESS ADDRESS : 4/2 I-8 ROAD, MAB TA PHUT INDUSTRIAL ESTATE,

T. MAB TA PHUT, A. MUANG,

RAYONG 21150

TELEPHONE : [66] 38 910-700, 38 910-981

FAX : [66] 38 910-777

E-MAIL ADDRESS : vichai.sakulbongkoch@lustran-polymers.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2004

REGISTRATION NO. : 0215547000670 [Former : 0217354700674]

TAX ID NO. : 3031319783

CAPITAL REGISTERED : BHT. 470,000,000

CAPITAL PAID-UP : BHT. 470,000,000

SHAREHOLDER’S PROPORTION : FOREIGN : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

MANAGEMENT : MR. PHON WONGRIANTHONG, THAI

MANAGING DIRECTOR

NO. OF STAFF : 320

LINES OF BUSINESS : PLASTIC RESIN

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 February 26, 2004 as a private limited company under the registered name “Styrenics [Thailand] Ltd.”, by German groups, to manufacture and market wide range of plastic resin to both domestic and international markets.

On March 25, 2004, subject’s name was changed to “Lanxess [Thailand] Ltd.”, and changed to “Ineos ABS [Thailand] Co., Ltd.”, on October 1, 2007.

In 2011, there is a joint venture between BASF, in Germany and INEOS Industries Holdings Limited, in U.K, then the subject’s name was changed to STYROLUTION [THAILAND] CO., LTD., on October 3, 2011. It currently employs approximate 320 staff.

Subject is currently a wholly owned subsidiary of Styrolution [Jersey] Ltd., which is a member of INEOS Group Co., Ltd. in United Kingdom.

The subject’s registered address is 4/2 I-8 Rd., Mab Ta Phut Industrial Estate, T. Mab Ta Phut, A. Muang, Rayong 21150, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name	Nationality	Age

Mr. Phon Wongrianthong	Thai	42
Mr. Hyung Tae Chang	Korean	60
Mr. Tan Jit Teng	Malaysian	43

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Phon Wongrianthong is the Managing Director.

He is Thai nationality with the age of 42 years old.

Ms. Kanya Chotemaneerin is the Sales & Marketing Manager.

She is Thai nationality.

Mr. Jacques C. Hendricks is the Manufacturing Manager.

He is German nationality with the age of 57 years old.

Mr. Nopporn Pruekudom is the Procurement & Purchasing Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing and marketing wide range of plastic resin as the followings:

- ABS [made from acrylonitrile, butadiene and styrene]

- SAN [a product for injection molding application based on styrene and acrylonitrile].

BRAND NAMES

“LUSTRAN TRIAX”, “NOVODUR”

PRODUCTION CAPACITY

120,000 tons per annum

PURCHASE

Raw materials such as plastic resin and chemicals are purchased from suppliers and agents both domestic and overseas, mainly in Germany, Japan, United Kingdom, Singapore, Republic of China and Taiwan.

MAJOR SUPPLIERS

Bayer Thai Ltd. : Thailand

BASF [Thai] Co., Ltd. : Thailand

SALES

80% of the products is exported to Africa, Puerto Rico, Republic of China, Japan, Taiwan, Korea, Australia, Germany, India, Singapore, Hong Kong, Vietnam, United Kingdom, France, Malaysia and Philippines, and the remaining 20% is sold locally to manufacturers, wholesalers 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 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.

Exports are against T/T.

BANKING

Bangkok Bank Public Co., Ltd.

Kasikornbank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 320 office staff and factory workers.

LOCATION DETAILS

The premise is rented for administrative office, factory and warehouse at the heading address. Premise is located in industrial area.

Bangkok Sales Office:

Unit 25/A2, 25^th Floor, Silom Complex Building, 191 Silom Rd., Bangrak, Bangkok 10500. Tel.: [66] 2632-1953-6, Fax [66] 2632-1952.

COMMENT

The subject manufactures, distributes and exports of plastic resin for various industries. The subject’s business performance in 2011 was considered solid. Meanwhile the subject’s business this year would grow further in relation to an improvement of economy and related industries.

Subject has maintained its solid business as well as upbeat outlook is underpinned by strong sales from promising market.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 300,000,000 divided into 300,000 shares of Bht. 1,000 each.

On July 5, 2004, the capital was increased to Bht. 470,000,000 divided into 470,000 shares of Bht. 1,000 each with fully paid.

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

NAME	HOLDING	%

Styrolution [Jersey] Ltd. [Former : Ineos ABS [Jersey] Ltd.] Nationality: British Address : U.K.	469,994	100.00
Styrolution Southeast Asia Pte. Ltd. Nationality: Singaporean Address : Suntek Tower One, Singapore	3	-
Styrolution East Asia Company Limited Nationality: Hong Kong Address : 45^th Floor, Jardine House, 1 Connaught Place, Central, Hong Kong	3	-

Total Shareholders : 3

Share Structure : [as at March 30, 2012]

Nationality	Shareholders	No. of Share	% Shares

Thai	-	-	-
Foreign	3	470,000	100.00
Total	3	470,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Pisith Thangtanakul No. 4095

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2011	2010 [Adjusted]

Cash and Cash Equivalents	534,121,055	543,317,988
Trade Accounts Receivable	829,377,164	849,171,954
Other Account Receivable	5,629,807	6,067,608
Deferred Value Added Tax	10,630,026	16,134,208
Inventories	449,896,435	794,015,594
Other Current Assets	18,088,383	16,588,810
Total Current Assets	1,847,742,870	2,225,296,162
Fixed Assets	589,660,395	595,647,658
Intangible Assets	4,726,720	3,354,146
Deposit	2,072,639	2,072,638
Total Assets	2,444,202,624	2,826,370,604

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2011	2010 [Adjusted]

Trade Accounts Payable
- Person	578,449,456	681,813,271
- Related Company	22,453,560	196,180,944
Related Company Payable	12,320,908	78,726,779
Accrued Expenses	164,157,741	104,341,160
Other Current Liabilities	20,398,578	4,801,580
Total Current Liabilities	797,780,243	1,065,863,734

Long-term Loan from Related Company	930,000,000	1,270,000,000
Employee Benefit Obligation	31,495,797	27,890,004
Estimated Liabilities from Dismantling	22,787,435	21,549,060
Total Liabilities	1,782,063,475	2,385,302,798

Shareholders' Equity

Share capital : Baht 1,000 par value authorized, issued and fully paid share capital 470,000 shares	470,000,000	470,000,000
Capital Paid	470,000,000	470,000,000
Retained Earning - Unappropriated	192,139,149	[28,932,194]
Total Shareholders' Equity	662,139,149	441,067,806
Total Liabilities & Shareholders' Equity	2,444,202,624	2,826,370,604

PROFIT & LOSS ACCOUNT

Revenue	2011	2010 [Adjusted]

Sales	7,819,736,220	7,823,509,352
Other Income	101,936,174	44,716,449
Total Revenues	7,921,672,394	7,868,225,801
Expenses

Cost of Goods Sold	7,401,482,317	7,245,872,955
Selling Expense	201,669,005	216,646,522
Administrative Expenses	54,339,215	39,455,688
Total Expenses	7,657,490,537	7,501,975,165
Profit before Financial Costs	264,181,857	366,250,636
Financial Costs - Interest Expenses	[43,110,514]	[43,964,504]
Net Profit / [Loss]	221,071,343	322,286,132

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010

LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.32	2.09
QUICK RATIO	TIMES	1.73	1.33

ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	13.26	13.13
TOTAL ASSETS TURNOVER	TIMES	3.20	2.77
INVENTORY CONVERSION PERIOD	DAYS	22.19	40.00
INVENTORY TURNOVER	TIMES	16.45	9.13
RECEIVABLES CONVERSION PERIOD	DAYS	38.71	39.62
RECEIVABLES TURNOVER	TIMES	9.43	9.21
PAYABLES CONVERSION PERIOD	DAYS	28.53	34.35
CASH CONVERSION CYCLE	DAYS	32.37	45.27

PROFITABILITY RATIO
COST OF GOODS SOLD	%	94.65	92.62
SELLING & ADMINISTRATION	%	0.69	0.50
INTEREST	%	0.55	0.56
GROSS PROFIT MARGIN	%	6.65	7.95
NET PROFIT MARGIN BEFORE EX. ITEM	%	3.38	4.68
NET PROFIT MARGIN	%	2.83	4.12
RETURN ON EQUITY	%	33.39	73.07
RETURN ON ASSET	%	9.04	11.40
EARNING PER SHARE	BAHT	470.36	685.72

LEVERAGE RATIO
DEBT RATIO	TIMES	0.73	0.84
DEBT TO EQUITY RATIO	TIMES	2.69	5.41
TIME INTEREST EARNED	TIMES	6.13	8.33

ANNUAL GROWTH
SALES GROWTH	%	(0.05)
OPERATING PROFIT	%	(27.87)
NET PROFIT	%	(31.41)
FIXED ASSETS	%	(1.01)
TOTAL ASSETS	%	(13.52)

PROFITABILITY RATIO

Gross Profit Margin	6.65	Acceptable	Industrial Average	10.00
Net Profit Margin	2.83	Deteriorated	Industrial Average	5.91
Return on Assets	9.04	Satisfactory	Industrial Average	9.42
Return on Equity	33.39	Impressive	Industrial Average	18.62

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 6.65%. 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. The company's figure is 2.83%. 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. When compared with the industry average, it was lower, the company's figure is 9.04%.

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 33.39%, 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	2.32	Impressive	Industrial Average	1.24
Quick Ratio	1.73
Cash Conversion Cycle	32.37

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 2.32 times in 2011, increase from 2.09 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 1.73 times in 2011, increase from 1.33 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 33 days.

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

Current Ratio Downtrend

LEVERAGE RATIO

Debt Ratio	0.73	Acceptable	Industrial Average	0.54
Debt to Equity Ratio	2.69	Risky	Industrial Average	1.02
Times Interest Earned	6.13	Acceptable	Industrial Average	10.18

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 6.13 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 0.73 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 Uptrend

Times Interest Earned Uptrend

ACTIVITY RATIO

Fixed Assets Turnover	13.26	Impressive	Industrial Average	2.55
Total Assets Turnover	3.20	Impressive	Industrial Average	1.62
Inventory Conversion Period	22.19
Inventory Turnover	16.45	Impressive	Industrial Average	9.67
Receivables Conversion Period	38.71
Receivables Turnover	9.43	Impressive	Industrial Average	5.87
Payables Conversion Period	28.53

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

Fixed Assets Turnover Downtrend

Total Assets Turnover Downtrend

Inventory Turnover Uptrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.81
UK Pound	1	Rs.86.52
Euro	1	Rs.69.50

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%)

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