MIRA INFORM REPORT

Report Date :

15.01.2013

IDENTIFICATION DETAILS

Name :	LUCKYGLASS CO., LTD.
Registered Office :	129/5 Moo 4, Soi Pongsirichai 1, Petkasem Road, T. Omnoi, A. Krathumban, Samutsakorn 74130
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	16.12.1988
Com. Reg. No.:	0105531098641
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Distributor & Exporter of Glassware Products
No. of Employees :	300

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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

LUCKYGLASS CO., LTD.

SUMMARY

BUSINESS ADDRESS : 129/5 MOO 4, SOI PONGSIRICHAI 1, PETKASEM ROAD,

T. OMNOI, A. KRATHUMBAN, SAMUTSAKORN 74130

TELEPHONE : [66] 2420-3873, 2420-4469, 2811-4471-4

FAX : [66] 2420-5387, 2811-6303

E-MAIL ADDRESS : info@luckyglass.net

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1988

REGISTRATION NO. : 0105531098641

TAX ID NO. : 3101580488

CAPITAL REGISTERED : BHT. 400,000,000

CAPITAL PAID-UP : BHT. 375,250,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. NITHIS CHANTAJIRAPORN, THAI

MANAGING DIRECTOR

NO. OF STAFF : 300

LINES OF BUSINESS : GLASSWARE PRODUCTS

MANUFACTURER, DISTRIBUTOR & EXPORTER

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : FAIR WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH FAIR PERFORMANCE

HISTORY

The subject was originally formed in 1965 as a limited partnership under the name “Kaew Thai Charoen Limited Partnership”, by Thai partners, with the business objective to produce handmade blowing glassware.

In 1973, its business was expanded to automatic pressed glassware products, with the production plant located in Samutsakorn province on 2.67 acres of area, then the subject registered for a change of its status to a private limited company under the name “Thai Neutral Glass Co., Ltd.”.

In 1988, the subject expanded the production plant to 6.92 acres on Petchkasem Road, in Samutsakorn province. Later, the subject had stopped its activities under the name “Thai Neutral Glass Co., Ltd.”, and transferred its business to a new company under the name LUCKYGLASS CO., LTD. on December 16, 1988. It currently employs approximate 300 staff.

It has been granted a promotional privilege by Board of Investment [BOI], on January 27, 2009.

The subject’s registered address is 129/5 Moo 4, Soi Pongsirichai 1, Petkasem Road, T. Omnoi, A. Krathumban, Samutsakorn 74130, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Somsak Chanudomporn		Thai	85
Mr. Charn Chanudomporn		Thai	62
Mrs. Patamaporn Chantajiraporn		Thai	58
Mr. Nithis Chantajiraporn	[x]	Thai	56

AUTHORIZED PERSON

Only the mentioned director [x] can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Nithis Chantajiraporn is the Managing Director.

He is Thai nationality with the age of 56 years old.

Ms. Anchalee Roengwai is the Export Sales Manager.

She is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing, distributing and exporting various designs of glassware products. Its products include glass tumbler, beer mug, salad bowl, glass tableware set, shot glass, saucer & ashtray, candle holder, glass cup and etc., with various standard quantity packs as follows:

· 144 pieces in one carton [honey box]

· 12 pieces in one inner box and 12 inner boxes in one carton

· 12 pieces in one inner box and 6 inner boxes in one carton

· 6 pieces in one inner box and 24 inner boxes in one carton

· 6 pieces in one inner box and 12 inner boxes in one carton

· 6 pieces in one inner box and 8 inner boxes in one carton

· 6 pieces in one inner box and 6 inner boxes in one carton

· 6 pieces in one inner box and 4 inner boxes in one carton

BRAND NAMES

“LUCKYGLASS”, “LUCKY THAILAND” and “LG”

PURCHASE

Most of raw materials are purchased from local suppliers, the remaining as well as machinery are imported from Republic of China, Taiwan and Japan.

SALES

The products are sold to customers both local and overseas, in Germany, Hong Kong, Vietnam, Japan, Korea and Middle East countries.

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 on negotiated terms.

Exports are against T/T.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject currently employs approximately 300 office staff and factory workers.

LOCATION DETAILS

The premise is owned for administrative office at the heading address. Premise is located in provincial, on the outskirts of Bangkok.

There are 3 factories located at the following addresses:

• 129/5 Moo 4, Soi Pongsirichai 1, Petkasem Road, T. Omnoi, A. Krathumban, Samutsakorn 74130
• 155/65 Moo 4, Ratchaburi Industrial Estate, T. Chet Samian, A. Photharam, Ratchaburi 70120
• 54 Moo 4, Petkasem Road, T. Omnoi, A. Krathumban, Samutsakorn 74130.

COMMENT

Luckyglass Co., Ltd. has been developing to be one of the leading glass manufacturers and exporters. Its current extensive range of glassware products includes tumbler, mug, plate, bowl, shot glass, saucer & ashtray, candle holder and etc. To be the preeminent glassware manufacturer in the globalized market, the company consistently develops its production to enhance better quality, quantity, and environmental friendly glassware products.

FINANCIAL INFORMATION

The capital was registered at Bht. 9,800,000 divided into 9,800 shares of Bht. 1,000 each with fully paid.

The capital was increased later as follows:

Bht. 15,000,000 on February 7, 1989

Bht. 25,000,000 on June 26, 1996

Bht. 95,000,000 on November 22, 2000

Bht. 125,000,000 on December 9, 2003

Bht. 400,000,000 on November 20, 2008

The latest registered capital was increased to Bht. 400 million, divided into 400,000 shares of Bht. 1,000 each.

THE SHAREHOLDERS LISTED WERE : [as at December 25, 2012] at Bht. 375,250,000 of capitalization

NAME	HOLDING	%
Mr. Nithis Chantajiraporn Nationality: Thai Address : 129/5 Moo 4, T. Omnoi, A. Krathumban, Samutsakorn	2,727,600	68.19
Mr. Napanai Chantajiraporn Nationality: Thai Address : 101/322 Moo 4, T. Sanoloy, A.Bangbuathong, Nonthaburi	962,750	24.07
Mr. Pran Chantajiraporn Nationality: Thai Address : 101/242 Moo 9, T. Krathumlom, A. Sampran, Nakornpathom	106,000	2.65
Ms. Pavarisa Chantajiraporn Nationality: Thai Address : 101/322 Moo 4, T. Sanoloy, A.Bangbuathong, Nonthaburi	103,650	2.59
Mr. Somsak Chanudomporn Nationality: Thai Address : 67/1 Moo 9, Bangduan, Pasicharoen, Bangkok	100,000	2.50

Total Shareholders : 5

Share Structure [as at December 25, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	5	4,000,000	100.00
Foreign	-	-	-
Total	5	4,000,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mrs. Napaporn Prakritkornchai No. 5449

Note:

The 2011 financial statement has not been submitted to the Commercial Registration Department.

BALANCE SHEET [BAHT]

The latest financial figures published as at December 31, 2010, 2009 & 2008 were:

ASSETS

Current Assets	2010	2009	2008
Cash and Cash Equivalents	21,259,759.04	50,817,190.13	963,833.15
Trade Accounts & Notes Receivable	29,978,118.56	32,425,843.94	29,638,043.61
Inventories	61,701,347.32	83,850,443.89	102,560,910.20
Work in Progress	772,200.00	720,000.00	600,000.00
Value Added Tax	4,677,930.55	4,054,608.23	6,203,703.35
Other Current Assets	1,198,363.10	2,997,651.12	2,801,577.99
Total Current Assets	119,587,718.57	174,865,737.31	142,768,068.30
Fixed Assets	805,382,477.37	619,735,608.39	536,745,778.41
Work under Construction and Installation	19,550,434.27	19,712,871.37	26,254,528.11
Other Assets	2,426,811.44	8,576,935.60	19,145,443.63
Total Assets	946,947,441.65	822,891,152.67	724,913,818.45

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2010	2009	2008
Bank Overdraft & Loan from Financial Institutions	289,222,944.58	195,904,883.61	176,233,734.21
Trade Accounts & Notes Payable	83,213,092.90	76,103,465.46	74,913,433.16
Current Portion of Long-term Liabilities	63,564,565.68	46,530,445.99	20,239,810.57
Pre-received Deposit	932,592.14	283,928.73	2,169,281.38
Accrued Interest	626,032.00	116,120.08	210,393.28
Accrued Income Tax	924,224.07	4,765,369.50	-
Other Current Liabilities	8,379,450.82	10,116,034.63	19,417,006.88
Total Current Liabilities	446,862,902.19	333,820,248.00	293,183,659.48
Long-term Loan	142,399,314.00	139,069,493.29	98,942,272.93
Hire-purchase Payable, Net	893,328.00	-	11,602.00
Total Liabilities	590,155,544.19	472,889,741.29	392,137,534.41
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 4,000,000 shares	400,000,000.00	400,000,000.00	400,000,000.00
Capital Paid	375,250,000.00	375,250,000.00	375,250,000.00
Retained Earning Unappropriated	[18,458,102.54]	[25,248,588.62]	[42,473,715.96]
Total Shareholders' Equity	356,791,897.46	350,001,411.38	332,776,284.04
Total Liabilities & Shareholders' Equity	946,947,441.65	822,891,152.67	724,913,818.45

PROFIT & LOSS ACCOUNT

Revenue	2010	2009	2008
Sales Income	414,648,884.88	384,909,341.59	356,267,929.45
Other Income	1,512,386.76	3,275,567.83	1,191,153.02
Total Revenues	416,161,271.64	388,184,909.42	357,459,082.47
Expenses
Cost of Goods Sold	349,880,551.26	313,013,676.27	287,618,459.89
Selling Expenses	24,518,521.31	20,706,648.49	20,455,440.93
Administrative Expenses	12,125,413.18	17,366,746.06	30,474,887.88
Total Expenses	386,524,485.75	351,087,070.82	338,548,788.70
Profit / [Loss] before Financial Cost & Income Tax	29,636,785.89	37,097,838.60	18,910,293.77
Financial Costs	[18,306,096.28]	[11,540,183.17]	[16,562,760.19]
Profit / [Loss] before Income Tax	11,330,689.61	25,557,655.43	2,347,533.58
Income Tax	[4,540,203.53]	[8,332,528.09]	[916,402.90]
Net Profit / [Loss]	6,790,486.08	17,225,127.34	1,431,130.68

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009	2008
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.27	0.52	0.49
QUICK RATIO	TIMES	0.11	0.25	0.10
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	0.51	0.62	0.66
TOTAL ASSETS TURNOVER	TIMES	0.44	0.47	0.49
INVENTORY CONVERSION PERIOD	DAYS	65.17	98.62	130.92
INVENTORY TURNOVER	TIMES	5.60	3.70	2.79
RECEIVABLES CONVERSION PERIOD	DAYS	26.39	30.75	30.36
RECEIVABLES TURNOVER	TIMES	13.83	11.87	12.02
PAYABLES CONVERSION PERIOD	DAYS	86.81	88.74	95.07
CASH CONVERSION CYCLE	DAYS	4.75	40.62	66.21
PROFITABILITY RATIO
COST OF GOODS SOLD	%	84.38	81.32	80.73
SELLING & ADMINISTRATION	%	8.84	9.89	14.30
INTEREST	%	4.41	3.00	4.65
GROSS PROFIT MARGIN	%	15.98	19.53	19.60
NET PROFIT MARGIN BEFORE EX. ITEM	%	7.15	9.64	5.31
NET PROFIT MARGIN	%	1.64	4.48	0.40
RETURN ON EQUITY	%	1.90	4.92	0.43
RETURN ON ASSET	%	0.72	2.09	0.20
EARNING PER SHARE	BAHT	1.81	4.59	0.38
LEVERAGE RATIO
DEBT RATIO	TIMES	0.62	0.57	0.54
DEBT TO EQUITY RATIO	TIMES	1.65	1.35	1.18
TIME INTEREST EARNED	TIMES	1.62	3.21	1.14
ANNUAL GROWTH
SALES GROWTH	%	7.73	8.04
OPERATING PROFIT	%	(20.11)	96.18
NET PROFIT	%	(60.58)	1,103.60
FIXED ASSETS	%	29.96	15.46
TOTAL ASSETS	%	15.08	13.52

ANNUAL GROWTH : SATISFACTORY

An annual sales growth is 7.73%. Turnover has increased from THB 384,909,341.59 in 2009 to THB 414,648,884.88 in 2010. While net profit has decreased from THB 17,225,127.34 in 2009 to THB 6,790,486.08 in 2010. And total assets has increased from THB 822,891,152.67 in 2009 to THB 946,947,441.65 in 2010.

PROFITABILITY : RISKY

PROFITABILITY RATIO

Gross Profit Margin	15.98	Satisfactory	Industrial Average	16.50
Net Profit Margin	1.64	Deteriorated	Industrial Average	5.90
Return on Assets	0.72	Deteriorated	Industrial Average	3.57
Return on Equity	1.90	Deteriorated	Industrial Average	7.04

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 15.98%. 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 1.64%. 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 0.72%.

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 1.9%.

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

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY : ACCEPTABLE

LIQUIDITY RATIO

Current Ratio	0.27	Risky	Industrial Average	0.71
Quick Ratio	0.11
Cash Conversion Cycle	4.75

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 0.27 times in 2010, decreased from 0.52 times, then the company may not be efficiently using its current assets. 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 0.11 times in 2010, decreased from 0.25 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 5 days.

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

Current Ratio Downtrend

LEVERAGE : RISKY

LEVERAGE RATIO

Debt Ratio	0.62	Acceptable	Industrial Average	0.49
Debt to Equity Ratio	1.65	Risky	Industrial Average	0.95
Times Interest Earned	1.62	Deteriorated	Industrial Average	5.02

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 1.62 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 0.62 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 : SATISFACTORY

ACTIVITY RATIO

Fixed Assets Turnover	0.51	Acceptable	Industrial Average	0.82
Total Assets Turnover	0.44	Acceptable	Industrial Average	0.61
Inventory Conversion Period	65.17
Inventory Turnover	5.60	Impressive	Industrial Average	3.84
Receivables Conversion Period	26.39
Receivables Turnover	13.83	Impressive	Industrial Average	6.20
Payables Conversion Period	86.81

The company's Account Receivable Ratio is calculated as 13.83 and 11.87 in 2010 and 2009 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 2010 increased from 2009. 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 99 days at the end of 2009 to 65 days at the end of 2010. This represents a positive trend. And Inventory turnover has increased from 3.7 times in year 2009 to 5.6 times in year 2010.

The company's Total Asset Turnover is calculated as 0.44 times and 0.47 times in 2010 and 2009 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 Downtrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.63
UK Pound	1	Rs.88.17
Euro	1	Rs.73.13

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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