MIRA INFORM REPORT

Report Date :

19.01.2013

IDENTIFICATION DETAILS

Name :	DEETEX CO., LTD.
Registered Office :	151/3 Soi Ekachai 132, Ekachai Road, Bangbon, Bangkok 10150
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	31.08.2011
Com. Reg. No.:	0105554115364
Legal Form :	Private Limited Company
Line of Business :	Importer and Distributor of Textile Machinery and Chemical
No. of Employees :	8

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Small Company
Payment Behaviour :	Slow
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 (31.03.2012)	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

DEETEX CO., LTD.

SUMMARY

BUSINESS ADDRESS : 151/3 SOI EKACHAI 132, EKACHAI ROAD,

BANGBON, BANGKOK 10150

TELEPHONE : [66] 2450-7398, 085 554-4900

FAX : [66] 2450-7398

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2011

REGISTRATION NO. : 0105554115364

TAX ID NO. : 3034711775

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. MANGKORN SIRAPRAPHAPONG, THAI

MANAGING DIRECTOR

NO. OF STAFF : 8

LINES OF BUSINESS : TEXTILE MACHINERY AND CHEMICAL

IMPORTER AND DISTRIBUTOR

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 established on August 31, 2011 as a private limited company under the registered name DEETEX CO., LTD., by Thai groups, with the business objective to import and distribute machinery and chemical for textile industry. It currently employs 8 staff.

The subject’s registered address is 151/3 Soi Ekachai 132, Ekachai Rd., Bangbon, Bangkok 10150, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Mangkorn Sirapraphapong	Thai	46
Ms. Sukanya Kanokchotikul	Thai	45

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Mangkorn Sirapraphapong is the Managing Director.

He is Thai nationality with the age of 46 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing of machinery and chemicals for textile and fabric printing industry.

PURCHASE

Its products are purchased from suppliers both domestic and overseas, mainly in India and Republic of China.

SALES

100% of the products is sold locally by wholesale and retail to manufacturers 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 according to IRICO’S DATABASE 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

Kasikornbank Public Co., Ltd.

EMPLOYMENT

The subject currently employs 8 staff.

LOCATION DETAILS

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

COMMENT

The subject was formed in August 2011. Its business in the first year was slow due to massive floods in the large area of the country, while many industries including textile industry had been affected and forced to temporally stopped operation. However, after floods receding in the beginning of 2012, many textile companies were looked for replacement machine. This has resulted to a good business in the year 2012.

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 November 2, 2012]

NAME	HOLDING	%
Mr. Mangkorn Sirapraphapong Nationality: Thai Address : 19/117 Kanchanapisek Rd., Bangkae, Bangkok	5,000	50.00
Ms. Sukanya Kanokchotikul Nationality: Thai Address : 19/117 Kanchanapisek Rd., Bangkae, Bangkok	3,000	30.00
Mr. Viwat Sirapraphapong Nationality: Thai Address : 72/110 Moo 6, Bangbon, Bangkok	1,000	10.00
Mr. Visith Sirapraphapong Nationality: Thai Address : 72/110 Moo 6, Bangbon, Bangkok	500	5.00
Mr. Saengchai Sirapraphapong Nationality: Thai Address : 87/341 Kanchanapisek Rd., Bangbon, Bangkok	500	5.00

Total Shareholders : 5

Share Structure

[as at November 2, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	5	10,000	100.00
Foreign	-	-	-
Total	5	10,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mrs. Noramonkorn Rakklad No. 5690

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2011 was :

ASSETS

Current Assets	2011
Cash and Cash Equivalents	448,441.66
Inventories	341,470.92
Other Current Assets	468,519.10
Total Current Assets	1,258,431.68
Fixed Assets	85,498.61
Total Assets	1,343,930.29

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2011
Other Current Liabilities	312,899.92
Total Current Liabilities	312,899.92
Total Liabilities	312,899.92
Shareholders' Equity
Share capital : Baht 100 value authorized, issued and fully paid share capital 10,000 shares	1,000,000.00
Capital Paid	1,000,000.00
Retained Earning - Unappropriated	31,030.37
Total Shareholders' Equity	1,031,030.37
Total Liabilities & Shareholders' Equity	1,343,930.29

PROFIT & LOSS ACCOUNT

Revenue	Aug. 31, 2011 – Dec. 31, 2011
Sales	644,190.00
Services Income	140,650.00
Total Revenues	784,840.00
Expenses
Cost of Goods Sold	520,893.89
Administrative Expenses	231,504.93
Total Expenses	752,398.82
Profit / Loss] before Financial Costs	32,441.18
Financial Costs	[2,100.00]
Profit / [Loss] before Other Income	30,341.18
Other Income : Profit/[Loss] on Exchange Rate	689.19
Net Profit / [Loss]	31,030.37

FINANCIAL ANALYSIS

ITEM	UNIT	2011
LIQUIDITY RATIO
CURRENT RATIO	TIMES	4.02
QUICK RATIO	TIMES	1.43
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	9.18
TOTAL ASSETS TURNOVER	TIMES	0.58
INVENTORY CONVERSION PERIOD	DAYS	239.28
INVENTORY TURNOVER	TIMES	1.53
RECEIVABLES CONVERSION PERIOD	DAYS	-
RECEIVABLES TURNOVER	TIMES	-
PAYABLES CONVERSION PERIOD	DAYS	-
CASH CONVERSION CYCLE	DAYS	239.28
PROFITABILITY RATIO
COST OF GOODS SOLD	%	66.37
SELLING & ADMINISTRATION	%	29.50
INTEREST	%	0.27
GROSS PROFIT MARGIN	%	33.63
NET PROFIT MARGIN BEFORE EX. ITEM	%	4.13
NET PROFIT MARGIN	%	3.95
RETURN ON EQUITY	%	3.01
RETURN ON ASSET	%	2.31
EARNING PER SHARE	BAHT	3.10
LEVERAGE RATIO
DEBT RATIO	TIMES	0.23
DEBT TO EQUITY RATIO	TIMES	0.30
TIME INTEREST EARNED	TIMES	15.45

PROFITABILITY : SATISFACTORY

PROFITABILITY RATIO

Gross Profit Margin	33.63	Impressive	Industrial Average	19.71
Net Profit Margin	3.95	Impressive	Industrial Average	2.12
Return on Assets	2.31	Acceptable	Industrial Average	3.30
Return on Equity	3.01	Deteriorated	Industrial Average	7.27

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 33.63%. When compared with the industry average, the ratio of the company was higher, indicated that company was more profitable than the same industry.

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 3.95%, 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. When compared with the industry average, it was lower, the company's figure is 2.31%.

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 3.01%.

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

Return on Assets Downtrend

Return on Equity Downtrend

LIQUIDITY : ACCEPTABLE

LIQUIDITY RATIO

Current Ratio	4.02	Impressive	Industrial Average	1.73
Quick Ratio	1.43
Cash Conversion Cycle	239.28

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 4.02 times in 2011, increased from 0 time, 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 1.43 times in 2011, increased from 0 time, 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 240 days.

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

Current Ratio Uptrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.23	Impressive	Industrial Average	0.54
Debt to Equity Ratio	0.30	Impressive	Industrial Average	1.22
Times Interest Earned	15.45	Impressive	Industrial Average	4.00

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 15.45 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 0.23 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 : ACCEPTABLE

ACTIVITY RATIO

Fixed Assets Turnover	9.18	Impressive	Industrial Average	6.76
Total Assets Turnover	0.58	Deteriorated	Industrial Average	1.53
Inventory Conversion Period	239.28
Inventory Turnover	1.53	Deteriorated	Industrial Average	3.48
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	4.47
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 is 239 days at the end of 2011. This represents a negative trend. And Inventory turnover is 1.53 times in year 2011.

The company's Total Asset Turnover is calculated as 0.58 times in 2011. 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 Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.94
UK Pound	1	Rs.86.24
Euro	1	Rs.72.20

INFORMATION DETAILS

Report Prepared by :

SDA

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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