MIRA INFORM REPORT

Report Date :

06.07.2013

IDENTIFICATION DETAILS

Name :	MATRIX HARD MATERIAL [THAILAND] CO., LTD.
Registered Office :	48/223 Soi Ramkhamhaeng 2, Soi 23 Yaek 9, Ramkhamhaeng Road, Dokmai, Prawet, Bangkok 10250
Country :	Thailand
Financials (as on) :	31.12.2007
Date of Incorporation :	29.04.2002
Com. Reg. No.:	0105545046045 [Former: 10454500739]
Legal Form :	Private Limited Company
Line of Business :	Distributor of grinding wheel products
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	withdrawn by the Commercial Registration Department
Payment Behaviour :	---
Litigation :	---

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 31st 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

MATRIX HARD MATERIAL [THAILAND] CO., LTD.

SUMMARY

REGISTRATION ADDRESS : 48/223 SOI RAMKHAMHAENG 2, SOI 23 YAEK 9,

RAMKHAMHAENG ROAD, DOKMAI,

PRAWET, BANGKOK 10250

ESTABLISHED : 2002

REGISTRATION NO. : 0105545046045 [Former: 10454500739]

CAPITAL REGISTERED : BHT. 2,000,000

CAPITAL PAID-UP : BHT. 2,000,000

SHAREHOLDER’S PROPORTION : THAI : 51%

SINGAPOREAN : 49%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

LINES OF BUSINESS : GRINDING WHEEL PRODUCTS

DISTRIBUTOR

CORPORATE PROFILE

OPERATING TREND : -

PRESENT SITUATION : CEASING COMPLETELY

REPUTATION : -

MANAGEMENT STANDARD : -

HISTORY

The subject was established on April 29, 2002 as a private limited company under the registered name MATRIX HARD MATERIAL [THAILAND] CO., LTD., by Thai and Singaporean groups, with the business objective to distribute grinding wheel to domestic market.

On April 5, 2012, the subject’s value added tax registration has been withdrawn, and the company’s name has also been withdrawn by the Commercial Registration Department according to the Section 1273/3 of the Civil and Commercial Code on December 25, 2012, due to the financial statement has never been submitted for many consecutive years.

The subject’s registered address was initially located at 36 Prompong Mansion Bldg., Sukhumvit 39 Rd., Klongtonnua, Wattana, Bangkok 10110.

On November 7, 2008, its registered address was relocated to 48/223 Soi Ramkhamhaeng 2, Soi 23 Yaek 9, Ramkhamaheng Rd., Dokmai, Prawet, Bangkok 10250.

THE BOARD OF DIRECTOR

[before being withdrawn the name]

Mr. Wong Sien Khuan

AUTHORIZED PERSON

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

COMMENT

As the company’s name has been withdrawn by the Commercial Registration Department, the subject is considered as non-existent company. Any business engagement with the subject should be ceased.

FINANCIAL INFORMATION

The capital was registered at Bht. 2,000,000 divided into 20,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 29, 2008]

NAME	HOLDING	%
Mr. Somchai Choke-oonkij Nationality: Thai Address : 689/18 Songwad Rd., Taladnoi, Samphantawong, Bangkok	10,195	50.95
Mr. Wong Sien Khuan Nationality: Singaporean Address : 36 Sukhumvit 39 Rd., Klongtonnua, Wattana, Bangkok	9,800	49.00
Mrs. Mai Choke-oonkij Nationality: Thai Address : 689/18 Songwad Rd., Taladnoi, Samphantawong, Bangkok	1	0.01
Mr. Surachai Prathanpong Nationality: Thai Address : 2/104 Moo 7, Chaengwattana Rd., Bangpood, Pakkred, Nonthaburi	1	0.01
Mrs. Papimol Prathanpong Nationality: Thai Address : 2/104 Moo 7, Chaengwattana Rd., Bangpood, Pakkred, Nonthaburi	1	0.01
Mr. Puchong Jadsawasdi Nationality: Thai Address : 68 Sutthisarn Rd., Huaykwang, Bangkok	1	0.01
Mr. Wit Choke-oonkij Nationality: Thai Address : 689/18 Songwad Rd., Taladnoi, Samphantawong, Bangkok	1	0.01

Total Shareholders : 7

Shareholders Structure [as at April 29, 2008]

Nationality	Shareholders	No. of Share	% Shares
Thai	6	10,200	51.00
Foreign-Singaporean	1	9,800	49.00
Total	7	20,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mr. Sunetr Chiewpimilporn No. 0888

Note:

The 2008-2012 financial statements were not submitted to the Commercial Registration Department.

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2007, 2006 & 2005 were:

ASSETS

Current Assets	2007	2006	2005
Cash and Cash Equivalents	2,012,063.77	1,978,516.86	1,995,033.38
Trade Accounts Receivable	8,097.76	47,144.20	310,698.64
Inventories	871,827.13	2,227,098.36	3,317,002.57
Other Current Assets	539,448.81	190,994.87	18,324.93
Total Current Assets	3,431,437.47	4,443,754.29	5,641,059.52
Loan to Person and Related Company	4,977,913.41	4,457,613.41	3,782,173.21
Fixed Assets	18,993.47	32,866.18	46,738.89
Deposit	37,005.61	37,005.61	37,005.61
Total Assets	8,465,349.96	8,971,239.49	9,506,977.23

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2007	2006	2005
Trade Accounts Payable-Related Company	7,805,747.08	7,805,747.08	7,805,747.08
Other Current Liabilities
Accrued Expenses	10,000.00	20,000.00	512,220.78
Other	35,679.93	2,850.00	38,185.17
Total Current Liabilities	7,851,427.01	7,828,597.08	8,356,153.03
Total Liabilities	7,851,427.01	7,828,597.08	8,356,153.03
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 20,000 shares	2,000,000.00	2,000,000.00	2,000,000.00
Capital Paid	2,000,000.00	2,000,000.00	2,000,000.00
Retained Earning - Unappropriated	[1,386,077.05]	[857,357.59]	[849,175.80]
Total Shareholders' Equity	613,922.95	1,142,642.41	1,150,824.20
Total Liabilities & Shareholders' Equity	8,465,349.96	8,971,239.49	9,506,977.23

PROFIT & LOSS ACCOUNT

Revenue	2007	2006	2005
Sales & Services	1,533,916.00	1,404,537.05	1,927,018.00
Other Income	348,453.97	178,306.26	3.15
Total Revenues	1,882,369.97	1,582,843.31	1,927,021.15
Expenses
Cost of Goods and Services	1,355,271.23	1,089,904.21	1,297,986.19
Selling and Administrative Expenses	1,055,818.20	501,120.89	1,952,520.56
Total Expenses	2,411,089.43	1,591,025.10	3,250,506.75
Net Profit / [Loss]	[528,719.46]	[8,181.79]	[1,323,485.60]

FINANCIAL ANALYSIS

ITEM	UNIT	2007	2006	2005
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.44	0.57	0.68
QUICK RATIO	TIMES	0.26	0.26	0.28
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	80.76	42.74	41.23
TOTAL ASSETS TURNOVER	TIMES	0.18	0.16	0.20
INVENTORY CONVERSION PERIOD	DAYS	234.80	745.84	932.76
INVENTORY TURNOVER	TIMES	1.55	0.49	0.39
RECEIVABLES CONVERSION PERIOD	DAYS	1.93	12.25	58.85
RECEIVABLES TURNOVER	TIMES	189.42	29.79	6.20
PAYABLES CONVERSION PERIOD	DAYS	-	-	-
CASH CONVERSION CYCLE	DAYS	236.73	758.09	991.61
PROFITABILITY RATIO
COST OF GOODS SOLD	%	88.35	77.60	67.36
SELLING & ADMINISTRATION	%	68.83	35.68	101.32
INTEREST	%	-	-	-
GROSS PROFIT MARGIN	%	34.36	35.10	32.64
NET PROFIT MARGIN BEFORE EX. ITEM	%	(34.47)	(0.58)	(68.68)
NET PROFIT MARGIN	%	(34.47)	(0.58)	(68.68)
RETURN ON EQUITY	%	(86.12)	(0.72)	(115.00)
RETURN ON ASSET	%	(6.25)	(0.09)	(13.92)
EARNING PER SHARE	BAHT	(26.44)	(0.41)	(66.17)
LEVERAGE RATIO
DEBT RATIO	TIMES	0.93	0.87	0.88
DEBT TO EQUITY RATIO	TIMES	12.79	6.85	7.26
TIME INTEREST EARNED	TIMES	-	-	-
ANNUAL GROWTH
SALES GROWTH	%	9.21	(27.11)
OPERATING PROFIT	%	6,362.15	(99.38)
NET PROFIT	%	(6,362.15)	99.38
FIXED ASSETS	%	(42.21)	(29.68)
TOTAL ASSETS	%	(5.64)	(5.64)

ANNUAL GROWTH : ACCEPTABLE

An annual sales growth of 9.21%. Turnover has increased from THB 1,404,537.05 in 2006 to THB 1,533,916.00 in 2007. While net profit has decreased from THB -8,181.79 in 2006 to THB -528,719.46 in 2007. And total assets has decreased from THB 8,971,239.49 in 2006 to THB 8,465,349.96 in 2007.

PROFITABILITY : ACCEPTABLE

PROFITABILITY RATIO

Gross Profit Margin	34.36	Impressive	Industrial Average	31.31
Net Profit Margin	(34.47)	Deteriorated	Industrial Average	3.16
Return on Assets	(6.25)	Deteriorated	Industrial Average	5.81
Return on Equity	(86.12)	Deteriorated	Industrial Average	13.34

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. Gross Profit Margin is 34.36%. 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 -34.47%. 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 -6.25%.

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 -86.12%.

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

Return on Assets Downtrend

Return on Equity Downtrend

LIQUIDITY : RISKY

LIQUIDITY RATIO

Current Ratio	0.44	Risky	Industrial Average	1.69
Quick Ratio	0.26
Cash Conversion Cycle	236.73

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 0.44 times in 2007, decrease from 0.57 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 0.26 times in 2007, same figure as in 2006, 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 237 days.

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

Current Ratio Downtrend

LEVERAGE : RISKY

LEVERAGE RATIO

Debt Ratio	0.93	Acceptable	Industrial Average	0.56
Debt to Equity Ratio	12.79	Risky	Industrial Average	1.30
Times Interest Earned	-		Industrial Average	2.16

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 0.93 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	80.76	Impressive	Industrial Average	4.39
Total Assets Turnover	0.18	Deteriorated	Industrial Average	1.73
Inventory Conversion Period	234.80
Inventory Turnover	1.55	Deteriorated	Industrial Average	3.86
Receivables Conversion Period	1.93
Receivables Turnover	189.42	Impressive	Industrial Average	4.07
Payables Conversion Period	-

The company's Account Receivable Ratio is calculated as 189.42 and 29.79 in 2007 and 2006 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 2007 increased from 2006. 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 746 days at the end of 2006 to 235 days at the end of 2007. This represents a positive trend. And Inventory turnover has increased from 0.49 times in year 2006 to 1.55 times in year 2007.

The company's Total Asset Turnover is calculated as 0.18 times and 0.16 times in 2007 and 2006 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 Downtrend

Inventory Turnover Downtrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.34
UK Pound	1	Rs.90.79
Euro	1	Rs.77.81

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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