MIRA INFORM REPORT

Report Date :

14.02.2013

IDENTIFICATION DETAILS

Name :	SAHA BANGKOK MOTORWORKS CO., LTD.
Registered Office :	99/22 Moo 2, Soi Wadbangkradi, Rama 2 Road Samaedam, Bangkhunthien, Bangkok 10150
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	03.07.2000
Com. Reg. No.:	0105543061659
Legal Form :	Private Limited Company
Line of Business :	Dealer of Automotive Parts
No. of Employees :	3

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

SAHA BANGKOK MOTORWORKS CO., LTD.

SUMMARY

BUSINESS ADDRESS : 99/22 MOO 2, SOI WADBANGKRADI, RAMA 2 ROAD

SAMAEDAM, BANGKHUNTHIEN, BANGKOK 10150

TELEPHONE : [66] 2867-3031

FAX : [66] 2867-3031

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2000

REGISTRATION NO. : 0105543061659

TAX ID NO. : 3030114754

CAPITAL REGISTERED : BHT. 1,000,000

CAPITAL PAID-UP : BHT. 1,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. NORAWAT SITTHIBOON, THAI

MANAGING DIRECTOR

NO. OF STAFF : 3

LINES OF BUSINESS : AUTOMOTIVE PARTS

DEALER

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 July 3, 2000 as a private limited company under the name style SAHA BANGKOK MOTORWORKS CO., LTD. by Thai groups, with the business objective to distribute automotive parts to domestic market. It currently employs 3 staff.

The subject’s registered address is 99/22 Moo 2, Soi Wadbangkradi, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok 10150, and this is the current subject’s operation address

THE BOARD OF DIRECTOR

Mr. Norawat Sitthiboon [Former : Chakraphan Sitthiboon]

Note:

Mr. Norawat Sitthiboon changed his name from Mr. Chakraphan on August 27, 2010.

AUTHORIZED PERSON

The above director signs on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Norawat Sitthiboon is the Managing Director.

He is Thai nationality with the age of 53 years old.

BUSINESS OPERATIONS

The subject is engaged in distributing various kinds of automotive parts for pick-up cars, sedan, bus and others.

PURCHASE

100% of the products is purchased from local suppliers.

SALES

100% of the products is sold locally by wholesale to dealers and end-users, mainly garage and auto service center.

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.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject employs 3 staff.

LOCATION DETAILS

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

COMMENT

Subject is a dealer of automotive parts. Its sales performance in 2011 was increased comparing to the same period of the previous year’s level. Its business is growing moderately.

FINANCIAL INFORMATION

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

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

NAME	HOLDING	%
Mr. Norawat Sitthiboon Nationality: Thai Address : 99/22 Moo 2, Rama 2 Rd., Samaedam, Bangkhunthien, Bangkok	9,400	94.00
Ms. Amporn Sathienpanich Nationality: Thai Address : 17/1 Moo 3, Charansanitwong Rd., Bangprom, Talingchan, Bangkok	100	1.00
Ms. Uraiwan Sawangberkban Nationality: Thai Address : 309 Moo 2, Burapee, Bannasarn, Suratthani	100	1.00
Ms. Pimol On-kerd Nationality: Thai Address : 71 Prachathipatai Rd., Bangkhunprom, Phranakorn, Bangkok	100	1.00
Ms. Sudkanueng Chotechatchawal Nationality: Thai Address : 113 Dindaeng Rd., Dindaeng, Bangkok	100	1.00
Mr. Samran Suknim Nationality: Thai Address : 27/14 Moo 2, Ekachai Rd., Bangkhunthien, Bangkok	100	1.00
Ms. Srisuda Mankongsakul Nationality: Thai Address : 19/49 Moo 10, Rama 2 Rd., Bangmod, Jomthong, Bangkok	100	1.00

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. :

Mrs. Chamoy Chuaprasert No. 3053

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2011, 2010 & 2009 were:

ASSETS

Current Assets	2011	2010	2009
Cash and Cash Equivalents	50,360.89	16,175.82	8,679.34
Inventories	376,842.83	1,746,639.32	1,881,783.79
Other Current Assets	140,811.86	233,509.98	170,358.36
Total Current Assets	568,015.58	1,996,325.12	2,060,821.49
Long-term Lending to Related Person	420,000.00	-	-
Fixed Assets	1,592.55	2,786.94	3,981.33
Other Non-current Assets	91,093.00	91,093.00	91,093.00
Total Assets	1,080,701.13	2,090,205.06	2,155,895.82

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2011	2010	2009
Accrued Income Tax	-	-	168.68
Accrued Expenses	5,000.00	5,000.00	5,000.00
Total Current Liabilities	5,000.00	5,000.00	5,168.68
Long-term Loan from Related Person	-	1,100,000.00	1,210,000.00
Total Liabilities	5,000.00	1,105,000.00	1,215,168.68
Shareholders' Equity
Share capital : Baht 100 value authorized, issued and fully paid share capital 10,000 shares	1,000,000.00	1,000,000.00	1,000,000.00
Capital Paid	1,000,000.00	1,000,000.00	1,000,000.00
Retained Earning - Unappropriated	75,701.13	[14,794.94]	[59,272.86]
Total Shareholders' Equity	1,075,701.13	985,205.06	940,727.14
Total Liabilities & Shareholders' Equity	1,080,701.13	2,90,205.06	2,155,895.82

PROFIT & LOSS ACCOUNT

Revenue	2011	2010	2009
Sales Income	4,951,416.00	3,924,234.00	1,091,064.00
Interest Income	350.00	-	-
Total Revenues	4,951,766.00	3,924,234.00	1,091,064.00
Expenses
Cost of Goods Sold	4,565,391.07	3,635,293.69	1,088,651.07
Administrative Expenses	295,878.86	244,562.39	297,518.39
Total Expenses	4,861,269.93	3,879,756.08	1,386,169.46
Profit Before Income Tax	90,496.07	44,477.92	[295,105.46]
Income Tax	-	-	[168.68]
Net Profit / [Loss]	90,496.07	44,477.92	[295,274.14]

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	113.60	399.27	398.71
QUICK RATIO	TIMES	10.07	3.24	1.68
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	3,109.11	1,408.08	274.05
TOTAL ASSETS TURNOVER	TIMES	4.58	1.88	0.51
INVENTORY CONVERSION PERIOD	DAYS	30.13	175.37	630.92
INVENTORY TURNOVER	TIMES	12.11	2.08	0.58
RECEIVABLES CONVERSION PERIOD	DAYS	-	-	-
RECEIVABLES TURNOVER	TIMES	-	-	-
PAYABLES CONVERSION PERIOD	DAYS	-	-	-
CASH CONVERSION CYCLE	DAYS	30.13	175.37	630.92
PROFITABILITY RATIO
COST OF GOODS SOLD	%	92.20	92.64	99.78
SELLING & ADMINISTRATION	%	5.98	6.23	27.27
INTEREST	%	-	-	-
GROSS PROFIT MARGIN	%	7.80	7.36	0.22
NET PROFIT MARGIN BEFORE EX. ITEM	%	1.83	1.13	(27.05)
NET PROFIT MARGIN	%	1.83	1.13	(27.06)
RETURN ON EQUITY	%	8.41	4.51	(31.39)
RETURN ON ASSET	%	8.37	2.13	(13.70)
EARNING PER SHARE	BAHT	9.05	4.45	(29.53)
LEVERAGE RATIO
DEBT RATIO	TIMES	0.00	0.53	0.56
DEBT TO EQUITY RATIO	TIMES	0.00	1.12	1.29
TIME INTEREST EARNED	TIMES	-	-	-
ANNUAL GROWTH
SALES GROWTH	%	26.18	259.67
OPERATING PROFIT	%	103.46	(115.07)
NET PROFIT	%	103.46	115.06
FIXED ASSETS	%	(42.86)	(30.00)
TOTAL ASSETS	%	(48.30)	(3.05)

ANNUAL GROWTH : SATISFACTORY

An annual sales growth is 26.18%. Turnover has increased from THB 3,924,234.00 in 2010 to THB 4,951,416.00 in 2011. While net profit has increased from THB 44,477.92 in 2010 to THB 90,496.07 in 2011. And total assets has decreased from THB 2,090,205.06 in 2010 to THB 1,080,701.13 in 2011.

PROFITABILITY : IMPRESSIVE

PROFITABILITY RATIO

Gross Profit Margin	7.80	Acceptable	Industrial Average	10.86
Net Profit Margin	1.83	Impressive	Industrial Average	1.60
Return on Assets	8.37	Impressive	Industrial Average	3.60
Return on Equity	8.41	Satisfactory	Industrial Average	9.29

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 7.8%. 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 1.83%, 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 8.37%, 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. When compared with the industry average, it was lower, the company's figure is 8.41%.

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

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY : IMPRESSIVE

LIQUIDITY RATIO

Current Ratio	113.60	Impressive	Industrial Average	1.66
Quick Ratio	10.07
Cash Conversion Cycle	30.13

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 113.6 times in 2011, decreased from 399.27 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 10.07 times in 2011, increased from 3.24 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 31 days.

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

Current Ratio Uptrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.00	Impressive	Industrial Average	0.60
Debt to Equity Ratio	0.00	Impressive	Industrial Average	1.52
Times Interest Earned	-		Industrial Average	4.17

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.

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 0 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 Uptrend

ACTIVITY : EXCELLENT

ACTIVITY RATIO

Fixed Assets Turnover	3,109.11	Impressive	Industrial Average	11.75
Total Assets Turnover	4.58	Impressive	Industrial Average	2.26
Inventory Conversion Period	30.13
Inventory Turnover	12.11	Impressive	Industrial Average	4.95
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	4.75
Payables Conversion Period	-

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 175 days at the end of 2010 to 30 days at the end of 2011. This represents a positive trend. And Inventory turnover has increased from 2.08 times in year 2010 to 12.11 times in year 2011.

The company's Total Asset Turnover is calculated as 4.58 times and 1.88 times in 2011 and 2010 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 Uptrend

Total Assets Turnover Uptrend

Inventory Turnover Uptrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.85
UK Pound	1	Rs.84.42
Euro	1	Rs.72.40

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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