MIRA INFORM REPORT

Report Date :

14.08.2013

IDENTIFICATION DETAILS

Name :	CARTINO GELATIN CO., LTD.
Formerly Known As :	GELTECH CO., LTD
Registered Office :	111 Moo 2, Soi Pudsri, Prakasa Road, Prakasa, Muang, Samutprakarn 10280
Country :	Thailand
Financials (as on) :	31.12.2012
Date of Incorporation :	25.09.2000
Com. Reg. No.:	0115543006119
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Distributor and Exporter of Gelatin, Pure Collagen and Collagen Supplement Food Products
No. of Employees :	100

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand is trying to maintain growth by encouraging domestic consumption and public investment to offset weak exports in 2012. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government is implementing a nation-wide 300 baht ($10) per day minimum wage policy and deploying new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years. The global economic severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded. In late 2011 growth was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. Industry recovered from the second quarter of 2012 onward with GDP growth at 5.5% in 2012. The government has approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the next seven years with a plan to start in 2013.

Source : CIA

Company name

CARTINO GELATIN CO., LTD.

[FORMER : GELTECH CO., LTD.]

SUMMARY

BUSINESS ADDRESS : 111 MOO 2, SOI PUDSRI, PRAKASA ROAD,

PRAKASA, MUANG, SAMUTPRAKARN 10280

TELEPHONE : [66] 2728-5427-30

FAX : [66] 2728-5431

E-MAIL ADDRESS : sales@cartinogelatin.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2000

REGISTRATION NO. : 0115543006119

TAX ID NO. : 3030440105

CAPITAL REGISTERED : BHT. 100,000,000

CAPITAL PAID-UP : BHT. 100,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. THONGCHAI TAVEECHOKESUPSIN, THAI

MANAGING DIRECTOR

NO. OF STAFF : 100

LINES OF BUSINESS : GELATIN, PURE COLLAGEN AND COLLAGEN

SUPPLEMENT FOOD PRODUCTS

MANUFACTURER, 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 25, 2000 as a private limited company under the originally registered name “Geltech Co., Ltd.” by Thai groups. On March 15, 2006, its registered name was changed to CARTINO GELATIN CO., LTD. Its business objective is to manufacture and distribute gelatin, pure collagen and collagen supplement food products to both domestic and international markets. It currently employs approximately 100 staff. The subject is also a member of Taveesin Tannery group.

The subject’s registered address is 111 Moo 2, Soi Pudsri, Prakasa Rd., Prakasa, Muang, Samutprakarn 10280, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Thongchai Taveechokesupsin	Thai	63
Mr. Pisol [Somkiat] Chinmahapipat	Thai	63
Mr. Treeroj Chinmahapipat [Mr. Pornchai Taveechokesupsin]	Thai	63

Note.

Mr. Somkiat Chinmahapipat changed his name to Mr. Pisol on January 10, 2012.

Mr. Pornchai Taveechokesupsin changed his name and last name to Mr. Treeroj Chinmahapipat on December 14, 2011.

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Thongchai Taveechokesupsin is the Managing Director.

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

BUSINESS OPERATIONS

The subject is engaged in manufacturing and distributing gelatin and pure gelatin for functional beverage, foods & pharmaceuticals, cosmetics, and supplement food productions, as well as manufacturing and distributing collagen supplement food products.

The products are as follows:

1. Gelatin Products

The products is intended for human consumption and mainly used as a gelling agent, a clarifying agent [drink], a binding agent, an emulsifier, a stabilizer, an adhesive agent and a thickening agents and etc.

· Gelatin for food industry is used in bakery, dairy products, confectionery, jelly, ice-cream, meat and butcher, drink and etc.

· Gelatin for pharmaceutical is used for coating tablets, soft/ hard capsule production, protein nutrition, plasma substitution [expand blood volume], and in surgical implants and etc.

2. Collagen Products

Collagen is 100% pure fish collagen, used in many applications such as food, supplement products, cosmetics and functional drinks

3. Collagen Supplement Food Products under its own brand “COLLAHEALTH”.

PRODUCTION CAPACITY

1,000 tons per annum

PURCHASE

100% of raw materials; raw hide and cattle bones [BSE/FMD] are purchased from local suppliers, while machinery is imported from Japan.

SALES

80% of the products is exported to Japan, Vietnam, Malaysia, Taiwan, India,

Hong Kong, and Indonesia, the remaining 20% is sold locally.

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 T/T.

Exports are against T/T.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject currently employs approximately 100 staff.

LOCATION DETAILS

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

COMMENT

The subject is a pharmaceutical and an edible grade bovine limed bone gelatin manufacturer in Thailand. It main raw materials for production are bones from healthy Thai local cattle which has absolutely no BSE (Bovine Spongiform Encephalopathy/Mad Cow Disease and FMD (Food and Mouth Disease). With its modern facilities and experienced technicians, it ensures that good quality control and consistency products have been supplied to all its customers.

FINANCIAL INFORMATION

The capital was registered at Bht. 10,000,000 divided into 100,000 shares of Bht. 100 each with fully paid.

The capital was increased later as follows:

Bht. 30,000,000 on December 14, 2001

Bht. 50,000,000 on February 14, 2003

Bht. 100,000,000 on December 21, 2005

The latest registered capital was increased to Bht. 100 million, divided into 1,000,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 30, 2013]

NAME	HOLDING	%
Mr. Thongchai Taveechokesupsin Nationality: Thai Address : 183 Moo 1, T. Taiban, A. Muang, Samutprakarn	400,000	40.00
Mr. Treeroj Chinmahapipat Nationality: Thai Address : 182 Moo 1, T. Taiban, A. Muang, Samutprakarn	200,000	20.00
Mr. Pisol Chinmahapipat Nationality: Thai Address : 7/128 Moo 7, T. Bangmuang, A. Muang, Samutprakarn	200,000	20.00
Mr. Thanasit Chinmahapipat Nationality: Thai Address : 7/130 Moo 7, T. Bangmuang, A. Muang, Samutprakarn	65,000	6.50
Mrs. Sasinan Chinmahapipat Nationality: Thai Address : 7/131 Moo 7, T. Bangmuang, A. Muang, Samutprakarn	45,000	4.50
Mrs. Chatravee Chinmahapipat Nationality: Thai Address : 7/128 Moo 7, T. Bangmuang, A. Muang, Samutprakarn	45,000	4.50
Mrs. Jarunee Taveechokesupsin Nationality: Thai Address : 232/20 Soi Sukhumvit 22, Klongtoey, Bangkok	45,000	4.50

Total Shareholders : 7

Share Structure [as at April 30, 2013]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	1,000,000	100.00
Foreign	-	-	-
Total	7	1,000,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mr. Sathaporn Premwithayapuri No. 2275

BALANCE SHEET [BAHT]

The financial figures published as at December 31, 2003 & 2002, and August 31, 2001 were:

ASSETS

Current Assets	2003	2002	2001
Cash in Hand & at Bank	82,611.09	535,127.34	25,422,447.00
Other Current Assets	1,888,806.43	2,482,467.84	-
Total Current Assets	1,971,417.52	3,017,595.18	25,422,447.00
Fixed Assets	71,507,421.01	54,946,802.44	-
Other Non-current Assets	162,300.00	162,300.00	-
Total Assets	73,641,138.53	58,126,697.62	25,422,447.00

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2003	2002	2001
Bank Overdraft	596,334.50	755,839.93	-
Loan from Bank	-	13,500,000.00	-
Accrued Expenses	6,644,454.64	2,858,839.15	8,000.00
Advance Income from Share Capital Increase	-	-	15,500,000.00
Total Current Liabilities	7,240,789.14	17,114,679.08	15,508,000.00
Loan from Related Person	12,800,000.00	-	-
Long-term Loan from Bank	15,500,000.00	-	-
Total Liabilities	35,540,789.14	17,114,679.08	15,508,000.00
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 470,000 shares in 2003 & 2002; and 100,000 shares in 2001	47,000,000.00	47,000,000.00	10,000,000.00
Capital Paid	47,000,000.00	47,000,000.00	10,000,000.00
Retained Earning - Unappropriated	[8,899,650.61]	[5,987,981.46]	[85,553.00]
Total Shareholders' Equity	38,103,349.39	41,012,018.54	9,914,447.00
Total Liabilities & Shareholders' Equity	73,641,138.53	58,126,697.62	25,422,447.00

PROFIT & LOSS ACCOUNT

Revenue	2003	2002	Sept. 25, 2000 – Aug. 31, 2001
Sales Income	-	-	-
Other Income	82,120.91	68,868.02	-
Total Revenues	82,120.91	68,868.02	-
Expenses
Cost of Goods Sold	-	-	-
Selling & Administrative Expenses	2,993,790.06	5,904,390.25	85,553.00
Total Expenses	2,993,790.06	5,904,390.25	85,553.00
Profit / [Loss] before Financial Cost & Income Tax	[2,911,669.15]	[5,835,522.23]	[85,553.00]
Financial Costs	-	-	-
Profit / [Loss] before Income Tax	[2,911,669.15]	[5,835,522.23]	[85,553.00]
Income Tax	-	-	-
Net Profit / [Loss]	[2,911,669.15]	[5,835,522.23]	[85,553.00]

BALANCE SHEET [BAHT]

The financial figures published as at December 31, 2006, 2005 & 2004 were:

ASSETS

Current Assets	2006	2005	2004
Cash in Hand & at Bank	740,652.00	933,006.25	1,406,781.50
Trade Accounts Receivable	1,046,000.06	-	-
Inventories	16,002,643.58	6,835,710.69	-
Other Current Assets	2,540,168.81	1,501,506.55	3,338,866.47
Total Current Assets	20,329,464.45	9,270,223.49	4,745,647.97
Fixed Assets	101,057,748.99	107,753,820.32	99,755,928.20
Other Non-current Assets	2,531,568.58	2,531,568.58	370,330.00
Total Assets	123,918,782.02	119,555,612.39	104,871,906.17

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2006	2005	2004
Bank Overdraft	3,641,993.11	1,852,080.24	1,690,136.89
Trade Accounts Payable	3,971,252.56	1,514,033.14	-
Accrued Expenses	1,816,795.62	1,763,976.76	3,751,683.27
Total Current Liabilities	9,430,041.29	5,130,090.14	5,441,820.16
Loan from Related Person	59,500,000.00	41,500,000.00	26,300,000.00
Long-term Loan from Bank	-	-	40,500,000.00
Total Liabilities	68,930,041.29	46,630,090.14	72,241,820.16
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 1,000,000 shares in 2006 & 2005; and 500,000 shares in 2004	100,000,000.00	100,000,000.00	50,000,000.00
Capital Paid	100,000,000.00	100,000,000.00	50,000,000.00
Retained Earning - Unappropriated	[45,011,259.27]	[27,074,477.75]	[17,369,913.99]
Total Shareholders' Equity	54,988,740.73	72,925,522.25	32,630,086.01
Total Liabilities & Shareholders' Equity	123,918,782.02	119,555,612.39	104,871,906.17

PROFIT & LOSS ACCOUNT

Revenue	2006	2005	2004
Sales Income	13,387,577.94	-	-
Other Income	251,771.98	69,682.66	160,881.40
Total Revenues	13,639,349.92	69,682.66	160,881.40
Expenses
Cost of Goods Sold	16,833,313.76	-	-
Selling & Administrative Expenses	12,948,803.60	9,774,246.42	8,631,144.78
Total Expenses	29,782,117.36	9,774,246.42	8,631,144.78
Profit / [Loss] before Financial Cost & Income Tax	[16,142,767.44]	[9,704,563.76]	[8,470,263.38]
Financial Costs	[1,794,014.08]	-	-
Profit / [Loss] before Income Tax	[17,936,781.52]	[9,704,563.76]	[8,470,263.38]
Income Tax	-	-	-
Net Profit / [Loss]	[17,936,781.52]	[9,704,563.76]	[8,470,263.38]

BALANCE SHEET [BAHT]

The financial figures published as at December 31, 2009, 2008 & 2007 were:

ASSETS

Current Assets	2009	2008	2007
Cash in Hand & at Bank	5,283,605.21	9,247,343.24	7,197,074.16
Trade Accounts Receivable	33,102,184.76	16,704,688.22	5,008,626.66
Inventories	15,802,174.04	18,406,042.16	23,377,478.56
Other Current Assets	1,778,098.08	7,944,836.72	5,010,209.68
Total Current Assets	55,966,062.09	52,302,910.34	40,593,389.06
Fixed Assets	96,137,504.46	95,699,301.47	97,987,063.86
Other Non-current Assets	867,295.42	1,300,943.14	1,734,590.86
Total Assets	152,970,861.97	149,303,154.95	140,315,043.78

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2009	2008	2007
Bank Overdraft	-	-	6,198,642.61
Trade Accounts Payable	29,809,436.08	7,562,644.66	5,462,409.34
Accrued Expenses	8,272,825.24	9,954,644.41	5,018,641.88
Total Current Liabilities	38,082,261.32	17,517,289.07	16,679,693.83
Loan from Related Person	67,800,000.00	88,640,239.94	83,640,239.94
Total Liabilities	105,882,261.32	106,157,529.01	100,319,933.77
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 1,000,000 shares	100,000,000.00	100,000,000.00	100,000,000.00
Capital Paid	100,000,000.00	100,000,000.00	100,000,000.00
Retained Earning - Unappropriated	[52,911,399.35]	[56,854,374.06]	[60,004,889.99]
Total Shareholders' Equity	47,088,600.65	43,145,625.94	39,995,110.01
Total Liabilities & Shareholders' Equity	152,970,861.97	149,303,154.95	140,315,043.78

PROFIT & LOSS ACCOUNT

Revenue	2009	2008	2007
Sales Income	154,266,870.93	120,493,634.48	46,431,790.84
Other Income	526,600.73	551,982.02	5,540.11
Total Revenues	154,793,471.66	121,045,616.50	46,437,330.95
Expenses
Cost of Goods Sold	130,378,906.84	99,512,276.88	45,583,632.34
Selling Expenses	3,637,667.05	3,451,125.94	-
Administrative Expenses	15,467,191.97	12,941,872.80	-
Selling & Administrative Expenses	-	-	13,737,057.51
Total Expenses	149,483,765.86	115,905,275.62	59,320,689.85
Profit / [Loss] before Financial Cost & Income Tax	5,309,705.80	5,140,340.88	[12,883,358.90]
Financial Costs	[1,366,731.09]	[1,989,824.95]	[2,110,271.82
Profit / [Loss] before Income Tax	3,942,974.71	3,150,515.93	[14,993,630.72]
Income Tax	-	-	-
Net Profit / [Loss]	3,942,974.71	3,150,515.93	[14,993,630.72]

BALANCE SHEET [BAHT]

The latest financial figures published as at December 31, 2012, 2011 & 2010 were:

ASSETS

Current Assets	2012	2011	2010
Cash in Hand & at Bank	15,536,706.28	24,356,983.80	2,619,034.12
Trade Accounts Receivable	41,336,020.62	6,251,861.60	6,492,740.46
Inventories	9,897,030.00	5,065,042.14	37,123,516.75
Other Current Assets	2,145,045.68	235,727.78	1,250,041.11
Total Current Assets	68,914,772.58	35,909,615.32	47,485,332.44
Fixed Assets	190,309,987.93	152,607,471.31	106,662,011.55
Other Non-current Assets	376,100.00	376,100.00	373,100.00
Total Assets	259,600,860.51	188,893,186.63	154,520,443.99

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2012	2011	2010
Trade Accounts & Other Payable	48,495,607.92	52,243,871.54	34,285,675.02
Accrued Income Tax	424,924.24	591,871.31	171,646.74
Other Current Liabilities	7,702,543.23	5,459,974.80	2,035,293.71
Total Current Liabilities	56,623,075.39	58,295,717.65	36,492,615.47
Loan from Related Person	146,863,425.09	77,740,797.32	67,800,000.00
Total Liabilities	203,486,500.48	136,036,514.97	104,292,615.47
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 1,000,000 shares	100,000,000.00	100,000,000.00	100,000,000.00
Capital Paid	100,000,000.00	100,000,000.00	100,000,000.00
Retained Earning - Unappropriated	[43,885,639.97]	[47,143,328.34]	[49,772,171.48]
Total Shareholders' Equity	56,114,360.03	52,856,671.66	50,227,828.52
Total Liabilities & Shareholders' Equity	259,600,860.51	188,893,186.63	154,520,443.99

PROFIT & LOSS ACCOUNT

Revenue	2012	2011	2010
Sales Income	270,684,930.25	209,609,049.48	127,421,939.99
Other Income	2,342,585.26	3,598,298.15	383,395.49
Total Revenues	273,027,515.51	213,207,347.63	127,805,335.48
Expenses
Cost of Goods Sold	234,023,061.47	185,407,400.28	102,624,617.48
Selling Expenses	15,862,157.89	8,056,626.03	7,509,736.01
Administrative Expenses	18,796,283.25	13,511,185.09	12,989,694.74
Total Expenses	268,681,502.61	206,975,211.40	123,124,048.23
Profit / [Loss] before Financial Cost & Income Tax	4,346,012.90	6,232,136.23	4,681,287.25
Financial Costs	[98,175.29]	[2,475,981.30]	[1,355,058.32]
Profit / [Loss] before Income Tax	4,247,837.61	3,756,154.93	3,326,228.93
Income Tax	[990,149.24]	[1,127,311.79]	[187,001.06]
Net Profit / [Loss]	3,257,688.37	2,628,843.14	3,139,227.87

FINANCIAL ANALYSIS

ITEM	UNIT	2012	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.22	0.62	1.30
QUICK RATIO	TIMES	1.00	0.53	0.25
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	1.42	1.37	1.19
TOTAL ASSETS TURNOVER	TIMES	1.04	1.11	0.82
INVENTORY CONVERSION PERIOD	DAYS	15.44	9.97	132.04
INVENTORY TURNOVER	TIMES	23.65	36.61	2.76
RECEIVABLES CONVERSION PERIOD	DAYS	55.74	10.89	18.60
RECEIVABLES TURNOVER	TIMES	6.55	33.53	19.63
PAYABLES CONVERSION PERIOD	DAYS	75.64	102.85	121.94
CASH CONVERSION CYCLE	DAYS	(4.46)	(81.99)	28.69
PROFITABILITY RATIO
COST OF GOODS SOLD	%	86.46	88.45	80.54
SELLING & ADMINISTRATION	%	12.80	10.29	16.09
INTEREST	%	0.04	1.18	1.06
GROSS PROFIT MARGIN	%	14.41	13.26	19.76
NET PROFIT MARGIN BEFORE EX. ITEM	%	1.61	2.97	3.67
NET PROFIT MARGIN	%	1.20	1.25	2.46
RETURN ON EQUITY	%	5.81	4.97	6.25
RETURN ON ASSET	%	1.25	1.39	2.03
EARNING PER SHARE	BAHT	3.26	2.63	3.14
LEVERAGE RATIO
DEBT RATIO	TIMES	0.78	0.72	0.67
DEBT TO EQUITY RATIO	TIMES	3.63	2.57	2.08
TIME INTEREST EARNED	TIMES	44.27	2.52	3.45
ANNUAL GROWTH
SALES GROWTH	%	29.14	64.50
OPERATING PROFIT	%	(30.26)	33.13
NET PROFIT	%	23.92	(16.26)
FIXED ASSETS	%	24.71	43.08
TOTAL ASSETS	%	37.43	22.24

ANNUAL GROWTH : IMPRESSIVE

An annual sales growth is 29.14%. Turnover has increased from THB 209,609,049.48 in 2011 to THB 270,684,930.25 in 2012. While net profit has increased from THB 2,628,843.14 in 2011 to THB 3,257,688.37 in 2012. And total assets has increased from THB 188,893,186.63 in 2011 to THB 259,600,860.51 in 2012.

PROFITABILITY : RISKY

PROFITABILITY RATIO

Gross Profit Margin	14.41	Acceptable	Industrial Average	28.70
Net Profit Margin	1.20	Deteriorated	Industrial Average	5.13
Return on Assets	1.25	Deteriorated	Industrial Average	3.98
Return on Equity	5.81	Acceptable	Industrial Average	11.14

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 14.41%. When compared with the industry average, the ratio of the company was lower. This indicated that company may have 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 1.2%. 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 1.25%.

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. When compared with the industry average, it was lower, the company's figure is 5.81%.

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

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY : SATISFACTORY

LIQUIDITY RATIO

Current Ratio	1.22	Satisfactory	Industrial Average	1.53
Quick Ratio	1.00
Cash Conversion Cycle	(4.46)

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 1.22 times in 2012, increased from 0.62 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 1.0 times in 2012, increased from 0.53 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 -5 days.

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

Current Ratio Uptrend

LEVERAGE : ACCEPTABLE

LEVERAGE RATIO

Debt Ratio	0.78	Acceptable	Industrial Average	0.59
Debt to Equity Ratio	3.63	Risky	Industrial Average	2.11
Times Interest Earned	44.27	Impressive	Industrial Average	4.51

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 44.27 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 Uptrend

Times Interest Earned Uptrend

ACTIVITY : EXCELLENT

ACTIVITY RATIO

Fixed Assets Turnover	1.42	Impressive	Industrial Average	0.96
Total Assets Turnover	1.04	Impressive	Industrial Average	0.77
Inventory Conversion Period	15.44
Inventory Turnover	23.65	Impressive	Industrial Average	7.32
Receivables Conversion Period	55.74
Receivables Turnover	6.55	Impressive	Industrial Average	2.26
Payables Conversion Period	75.64

The company's Account Receivable Ratio is calculated as 6.55 and 33.53 in 2012 and 2011 respectively. This ratio measures the efficiency of the company in managing its trade debtors to generate revenue. A lower ratio may indicate over extension and collection problems. Conversely, a higher ratio may indicate an overtly stringent policy. In this case, the company's A/R ratio in 2012 decreased from 2011. This would suggest the company had deteriorated in the management of its debt collections.

Inventory Turnover in Days Ratio indicates the liquidity of inventory. It estimates the number of days that it will take to sell the current inventory. Inventory is particularly sensitive to change in business activities. The inventory turnover in days has increased from 10 days at the end of 2011 to 15 days at the end of 2012. This represents a negative trend. And Inventory turnover has decreased from 36.61 times in year 2011 to 23.65 times in year 2012.

The company's Total Asset Turnover is calculated as 1.04 times and 1.11 times in 2012 and 2011 respectively. This ratio is determined by dividing total assets into total sales turnover. The ratio measures the activity of the assets and the ability of the firm to generate sales through the use of the assets.

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.61.43
UK Pound	1	Rs.95.07
Euro	1	Rs.81.77

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.