MIRA INFORM REPORT

Report Date :

07.12.2013

IDENTIFICATION DETAILS

Name :	GREEN CHEMICALS CO., LTD.
Registered Office :	56 Soi Ramkhamhaeng 30/1 [Ramvilla], Ramkhamhaeng Road, Huamark, Bangkapi, Bangkok 10240
Country :	Thailand
Financials (as on) :	31.12.2012
Date of Incorporation :	30.08.1979
Com. Reg. No.:	0105522016484 [FORMER : 1656/2522
Legal Form :	Private Limited Company
Line of Business :	importer and distributor of pharmaceutical chemicals as well as industrial chemicals for foods, cosmetic and consumer products industries.
No. of Employees :	17

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		TATUS	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 – September 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

GREEN CHEMICALS CO., LTD.

SUMMARY

BUSINESS ADDRESS : 56 SOI RAMKHAMHAENG 30/1 [RAMVILLA],

RAMKHAMHAENG ROAD, HUAMARK,

BANGKAPI, BANGKOK 10240, THAILAND

TELEPHONE : [66] 2732-9219, 2374-8480-1, 2374-8615

FAX : [66] 2374-7224, 2374-4282

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1979

REGISTRATION NO. : 0105522016484 [FORMER : 1656/2522]

TAX ID NO. : 3101136524

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 : MR. POTE BUNCHATHERAVATE, THAI

MANAGING DIRECTOR & MARKETING

MANAGER

NO. OF STAFF : 17

LINES OF BUSINESS : INDUSTRIAL CHEMICALS

IMPORTER & DISTRIBUTOR

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 August 30, 1979 as a private limited company under the name style GREEN CHEMICALS CO., LTD., by Thai group, Bunchatheravate family, with the business objective to distribute industrial chemicals to domestic market. It currently employs 17 staff.

The subject’s registered and business address were initially at 2188/28 Soi Ram Villa, Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok 10240.

On November 15, 2010, the subject’s registered address was changed to 56 Soi Ramkhamhaeng 30/1 [Ram Villa], Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok 10240, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name	Nationality	Age
Mr. Pote Bunchatheravate	Thai	72
Mr. Nipon Bunchatheravate	Thai	43

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Pote Bunchatheravate is the Managing Director & Marketing Manager.

He is Thai nationality with the age of 72 years old.

He had been working with “Shell Company of Thailand”, “Diethelm [Thailand] Co., Ltd.” and “Inchcape [Thailand] Ltd.”

Mr. Nipon Bunchatheravate is the Assistant Manager.

He is Thai nationality with the age of 43 years old.

BUSINESS OPERATIONS

The subject’s activities are importer and distributor of pharmaceutical chemicals as well as industrial chemicals for foods, cosmetic and consumer products industries.

IMPORT [COUNTRIES]

90% of its products is imported from United Kingdom, Japan, Germany, Republic of China, Sweden, France, Italy, Taiwan, India and Singapore.

MAJOR SUPPLIERS

Name	Country
Finzelberg GmbH & Co. KG.	Germany
Martin Bauer GmbH & Co. KG.	Germany
Virchow Laboratories Ltd.	India

SALES [LOCAL]

100% of its products is sold locally to manufacturers and wholesalers.

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.

BANKING

The Siam Commercial Bank Public Co., Ltd.

[Talad Noi Branch : 1280 Yotha Rd., Samphantawong, Bangkok]

Bangkok Bank Public Co., Ltd.

[Hualampong Branch : 227 Rama 4 Rd., Rongmuang, Pathumwan, Bangkok]

Krung Thai Bank Public Co., Ltd.

[New Petchburi Branch : 2259 New Petchburi Rd., Huaykwang, Bangkok]

EMPLOYMENT

The subject currently employs 17 staff.

LOCATION DETAILS

The premise is owned for operating office and warehouse in a 2 storey building of

townhouse at the heading address in a residential area.

Warehouses are located at the following addresses:

- 164 Soi Ramkhamhaeng 30/1 [Ram Villa], Ramkhamhaeng Rd., Huamark, Bangkapi,

Bangkok 10240.

- 166 Soi Ramkhamhaeng 30/1 [Ram Villa], Ramkhamhaeng Rd., Huamark, Bangkapi,

Bangkok 10240.

COMMENT

The subject was formed in 1979 as an importer and distributor of industrial chemicals. Subject’s product has been related to industrial users such as food, cosmetic, pharmaceutical and consumer products industries. Sale revenues in 2012 were reported decreasing from the previous year due to slowdown consumption from industrial sector, as well as in 2013 overall domestic industries seems to further slowdown from economic sluggish, shrinking consumption and decline purchasing power.

FINANCIAL INFORMATION

The capital was registered at Bht. 1,000,000 divided into 10,000 shares of Bht. 100 each.

The capital was increased later as follows:

Bht. 1,500,000 on August 8, 1985

Bht. 3,000,000 on July 17, 1998

The latest registered capital was increased to Bht. 3,000,000 divided into 30,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 29, 2013]

NAME	HOLDING	%
Mr. Pote Bunchatheravate Nationality: Thai Address : 58 Soi Ramkhamhaeng 30/1 [RamVilla], Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok 10240.	12,000	40.00
Mrs. Suthiwan Wongwaisayawan Nationality: Thai Address : 12 Seri 2 Rd. [Rama Kao 41], Suanluang, Bangkok	6,800	22.66
Mr. Nipon Bunchatheravate Nationality: Thai Address : 99/211 Sapansung, Sapansung, Bangkok	5,600	18.67
Mr. Nithi Bunchatheravate Nationality: Thai Address : 12 Seri 2 Rd. [Rama Kao 41], Suanluang, Bangkok	5,600	18.67

Total Shareholders : 4

Share Structure [as at April 29, 2013]

Nationality	Shareholders	No. of Share	% Shares
Thai	4	30,000	100.00
Foreign	-	-	-
Total	4	30,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mr. Visith Jiratiamphaiwong No. 1204

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2012	2011	2010
Cash and Cash Equivalents	21,485,472.99	6,385,707.72	7,710,121.98
Trade Accounts & Other Receivable	24,381,607.69	33,591,106.73	34,084,207.87
Inventories	26,101,812.41	31,792,765.44	21,607,468.77
Other Current Assets	2,406,982.00	2,420,788.82	2,404,971.16
Total Current Assets	74,375,875.09	74,190,368.71	65,806,769.78
Fixed Assets	15,002,130.37	15,171,143.08	15,475,295.33
Other Non-current Assets	4,222,439.20	50,059.16	133,347.26
Total Assets	93,600,444.66	89,411,570.95	81,415,412.37

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2012	2011	2010
Trade Accounts & Other Payable	15,005,613.93	16,300,927.83	13,254,498.84
Notes Payable	-	-	119,781.15
Accrued Expenses	5,801,771.40	6,018,614.67	6,454,356.67
Total Current Liabilities	20,807,385.33	22,319,542.50	19,828,636.66
Total Liabilities	20,807,385.33	22,319,542.50	19,828,636.66
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 30,000 shares	3,000,000.00	3,000,000.00	3,000,000.00
Capital Paid	3,000,000.00	3,000,000.00	3,000,000.00
Retained Earnings: Appropriated for Statutory Reserve	500,000.00	500,000.00	500,000.00
Unappropriated	69,293,059.33	63,592,028.45	58,086,775.71
Total Shareholders' Equity	72,793,059.33	67,092,028.45	61,586,775.71
Total Liabilities & Shareholders' Equity	93,600,444.66	89,411,570.95	81,415,412.37

PROFIT & LOSS ACCOUNT

Sale	2012	2011	2010
Sales Income	127,401,302.38	133,104,598.70	139,271,896.30
Other Income	153,851.54	2,970.68	1,742,362.71
Total Sales	127,555,153.92	133,107,569.38	141,014,259.01
Expenses
Cost of Goods Sold	96,836,588.01	101,909,698.97	109,953,178.42
Loss on Exchange	-	665,294.82	-
Selling and Administrative Expenses	18,489,070.04	17,823,943.65	16,722,299.74
Total Expenses	115,325,658.05	120,398,937.44	126,675,478.16
Profit / [Loss] before Financial Cost & Income Tax	12,229,495.87	12,708,631.94	14,338,780.85
Financial Cost	[52,863.41]	[90,413.74]	[74,265.10]
Profit / [Loss] before Income Tax	12,176,632.46	12,618,218.20	14,264,515.75
Income Tax	[2,875,601.58]	[3,512,965.46]	[4,006,854.73]
Net Profit / [Loss]	9,301,030.88	9,105,252.74	10,257,661.02

FINANCIAL ANALYSIS

ITEM	UNIT	2012	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	3.57	3.32	3.32
QUICK RATIO	TIMES	2.20	1.79	2.11
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	8.49	8.77	9.00
TOTAL ASSETS TURNOVER	TIMES	1.36	1.49	1.71
INVENTORY CONVERSION PERIOD	DAYS	98.38	113.87	71.73
INVENTORY TURNOVER	TIMES	3.71	3.21	5.09
RECEIVABLES CONVERSION PERIOD	DAYS	69.85	92.11	89.33
RECEIVABLES TURNOVER	TIMES	5.23	3.96	4.09
PAYABLES CONVERSION PERIOD	DAYS	56.56	58.38	44.00
CASH CONVERSION CYCLE	DAYS	111.68	147.60	117.06
PROFITABILITY RATIO
COST OF GOODS SOLD	%	76.01	76.56	78.95
SELLING & ADMINISTRATION	%	14.51	13.39	12.01
INTEREST	%	0.04	0.07	0.05
GROSS PROFIT MARGIN	%	24.11	23.44	22.30
NET PROFIT MARGIN BEFORE EX. ITEM	%	9.60	9.55	10.30
NET PROFIT MARGIN	%	7.30	6.84	7.37
RETURN ON EQUITY	%	12.78	13.57	16.66
RETURN ON ASSET	%	9.94	10.18	12.60
EARNING PER SHARE	BAHT	310.03	303.51	341.92
LEVERAGE RATIO
DEBT RATIO	TIMES	0.22	0.25	0.24
DEBT TO EQUITY RATIO	TIMES	0.29	0.33	0.32
TIME INTEREST EARNED	TIMES	231.34	140.56	193.08
ANNUAL GROWTH
SALES GROWTH	%	(4.28)	(4.43)
OPERATING PROFIT	%	(3.77)	(11.37)
NET PROFIT	%	2.15	(11.23)
FIXED ASSETS	%	(1.11)	(1.97)
TOTAL ASSETS	%	4.68	9.82

ANNUAL GROWTH : ACCEPTABLE

An annual sales growth is -4.28%. Turnover has decreased from THB 133,104,598.70 in 2011 to THB 127,401,302.38 in 2012. While net profit has increased from THB 9,105,252.74 in 2011 to THB 9,301,030.88 in 2012. And total assets has increased from THB 89,411,570.95 in 2011 to THB 93,600,444.66 in 2012.

PROFITABILITY : IMPRESSIVE

PROFITABILITY RATIO

Gross Profit Margin	24.11	Satisfactory	Industrial Average	27.90
Net Profit Margin	7.30	Impressive	Industrial Average	2.46
Return on Assets	9.94	Impressive	Industrial Average	4.64
Return on Equity	12.78	Impressive	Industrial Average	9.65

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 24.11%. 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 7.3%, 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 9.94%, 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 12.78%, 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 Downtrend

LIQUIDITY : SATISFACTORY

LIQUIDITY RATIO

Current Ratio	3.57	Impressive	Industrial Average	1.37
Quick Ratio	2.20
Cash Conversion Cycle	111.68

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 3.57 times in 2012, increased from 3.32 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 2.2 times in 2012, increased from 1.79 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 112 days.

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

Current Ratio Downtrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.22	Impressive	Industrial Average	0.50
Debt to Equity Ratio	0.29	Impressive	Industrial Average	0.94
Times Interest Earned	231.34	Impressive	Industrial Average	1.20

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 231.35 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 0.22 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 Downtrend

ACTIVITY : SATISFACTORY

ACTIVITY RATIO

Fixed Assets Turnover	8.49	Impressive	Industrial Average	1.55
Total Assets Turnover	1.36	Acceptable	Industrial Average	1.83
Inventory Conversion Period	98.38
Inventory Turnover	3.71	Deteriorated	Industrial Average	8.85
Receivables Conversion Period	69.85
Receivables Turnover	5.23	Impressive	Industrial Average	3.74
Payables Conversion Period	56.56

The company's Account Receivable Ratio is calculated as 5.23 and 3.96 in 2012 and 2011 respectively. This ratio measures the efficiency of the company in managing its trade debtors to generate sale. 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 increased from 2011. This would suggest the company had good performance 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 decreased from 114 days at the end of 2011 to 98 days at the end of 2012. This represents a positive trend. And Inventory turnover has increased from 3.21 times in year 2011 to 3.71 times in year 2012.

The company's Total Asset Turnover is calculated as 1.36 times and 1.49 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.61.67
UK Pound	1	Rs.100.65
Euro	1	Rs.84.25

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%)

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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.