MIRA INFORM REPORT

Report Date :

12.06.2013

IDENTIFICATION DETAILS

Name :	STONE TRADE CO., LTD.
Registered Office :	35/45 Moo 3, Pattanakarn Road, Taweewattana, Bangkok 10700
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	26.06.2003
Com. Reg. No.:	0105546073852
Legal Form :	Private Limited Company
Line of Business :	The subject is engaged in importing and distributing wide range of decoration stones, including granite, marble and others
No. of Employees :	5

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 – March, 31^st, 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

STONE TRADE CO., LTD.

SUMMARY

BUSINESS ADDRESS : 35/45 MOO 3, PATTANAKARN ROAD,

TAWEEWATTANA, BANGKOK 10700

TELEPHONE : [66] 2889-1601-3, 081 870-1730

FAX : [66] 2889-1607

E-MAIL ADDRESS : jain@jaingranite.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2003

REGISTRATION NO. : 0105546073852

TAX ID NO. : 3031013339

CAPITAL REGISTERED : BHT. 5,000,000

CAPITAL PAID-UP : BHT. 5,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. RACHEN JAIN, THAI

MANAGING DIRECTOR

NO. OF STAFF : 5

LINES OF BUSINESS : STONES

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 June 26, 2003 as a private limited company under the name style STONE TRADE CO., LTD., by Thai groups, with the business objective to import and distribute decoration stone to domestic market. It currently employs 5 staff.

The subject’s registered address is 35/45 Moo 3, Pattanakarn Rd., Taweewattana, Bangkok 10700, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Mr. Rachen Jain

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Rachen Jain is the Managing Director.

He is Thai nationality with the age of 54 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing wide range of decoration stones, including granite, marble and others.

PURCHASE

Most of the products are imported from India, Republic of China, Brazil and Vietnam, the remaining is purchased from local suppliers.

SALES

100% of the products is sold locally by wholesale and retail to traders 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 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

TMB Bank Public Co., Ltd.

EMPLOYMENT

The subject currently employs 5 staff.

LOCATION DETAILS

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

COMMENT

Subject reported slow sales in the past several years. Even though the construction industry has seen improvement, but demand of decoration stone has grown slowly compared to other construction materials. Subject’s business is fair but growth is at slow pace.

FINANCIAL INFORMATION

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

On September 23, 2004, the capital was increased to Bht. 5,000,000 divided into 50,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at April 30, 2012]

NAME	HOLDING	%
Mr. Rachen Jain Nationality: Thai Address : 605/153 Moo 10, Nongprue, Banglamung, Chonburi	20,000	40.00
Capt. R.N. Sukhon Ratanasewee Nationality: Thai Address : 90/261 Moo 9, Krathumlom, Sampran, Nakornpathom	17,500	35.00
Ms. Malinee Jain Nationality: Thai Address : 35/45 Moo 3, Taweewattana, Bangkok	10,000	20.00
Mrs. Sukanya Siripanich Nationality: Thai Address : 692/89 Petchburi Rd., Thanon Petchburi, Rajthevee, Bangkok	2,500	5.00

Total Shareholders : 4

Share Structure

[as at April 30, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	4	50,000	100.00
Foreign	-	-	-
Total	4	50,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Sutham Lertvitchuhat No. 5173

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2011	2010	2009
Cash and Cash Equivalents	79,813.93	75,777.88	108,334.53
Short-term Lending to Related Person	-	-	500,000.00
Inventories	7,242,910.00	6,410,580.00	5,098,270.00
Other Current Assets	-	7,357.40	4,320.68
Total Current Assets	7,322,723.93	6,493,715.28	5,710,925.21
Fixed Assets	37,243.41	35,661.10	10,887.56
Total Assets	7,359,967.34	6,529,376.38	5,721,812.77

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2011	2010	2009
Trade Accounts and Other Payable	7,000.00	7,000.00	-
Short-term Loan	1,200,000.00	600,000.00	-
Accrued Income Tax	11,852.53	9,792.53	-
Other Current Liabilities	13,441.86	2,076.00	16,796.01
Total Current Liabilities	1,232,294.39	618,868.53	16,796.01
Total Liabilities	1,232,294.39	618,868.53	16,796.01
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 50,000 shares	5,000,000.00	5,000,000.00	5,000,000.00
Capital Paid	5,000,000.00	5,000,000.00	5,000,000.00
Retained Earning Unappropriated	1,127,672.96	910,507.85	705,016.76
Total Shareholders' Equity	6,127,672.96	5,910,507.85	5,705,016.76
Total Liabilities & Shareholders' Equity	7,359,967.34	6,529,376.38	5,721,812.77

PROFIT & LOSS ACCOUNT

Revenue	2011	2010	2009
Sales Income	4,372,321.05	3,544,302.99	4,510,269.23
Other Income	14.59	3.43	641.50
Total Revenues	4,372,335.64	3,544,306.42	4,510,910.73
Expenses
Cost of Goods Sold	3,436,956.76	2,483,368.51	3,586,814.49
Selling Expenses	173,047.75	281,912.73	294,898.49
Administrative Expenses	533,313.36	563,741.54	424,799.70
Total Expenses	4,143,317.87	3,329,022.78	4,306,512.68
Profit before Income Tax	229,017.77	215,283.64	204,398.05
Income Tax	[11,852.67]	[9,792.55]	[8,159.71]
Net Profit / [Loss]	217,165.10	205,491.09	196,238.34

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	5.94	10.49	340.02
QUICK RATIO	TIMES	0.06	0.12	36.22
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	117.40	99.39	414.26
TOTAL ASSETS TURNOVER	TIMES	0.59	0.54	0.79
INVENTORY CONVERSION PERIOD	DAYS	769.19	942.21	518.81
INVENTORY TURNOVER	TIMES	0.47	0.39	0.70
RECEIVABLES CONVERSION PERIOD	DAYS	-	-	-
RECEIVABLES TURNOVER	TIMES	-	-	-
PAYABLES CONVERSION PERIOD	DAYS	0.74	1.03	-
CASH CONVERSION CYCLE	DAYS	768.44	941.18	518.81
PROFITABILITY RATIO
COST OF GOODS SOLD	%	78.61	70.07	79.53
SELLING & ADMINISTRATION	%	16.16	23.86	15.96
INTEREST	%	-	-	-
GROSS PROFIT MARGIN	%	21.39	29.93	20.49
NET PROFIT MARGIN BEFORE EX. ITEM	%	5.24	6.07	4.53
NET PROFIT MARGIN	%	4.97	5.80	4.35
RETURN ON EQUITY	%	3.54	3.48	3.44
RETURN ON ASSET	%	2.95	3.15	3.43
EARNING PER SHARE	BAHT	4.34	4.11	3.92
LEVERAGE RATIO
DEBT RATIO	TIMES	0.17	0.09	0.00
DEBT TO EQUITY RATIO	TIMES	0.20	0.10	0.00
TIME INTEREST EARNED	TIMES	-	-	-
ANNUAL GROWTH
SALES GROWTH	%	23.36	(21.42)
OPERATING PROFIT	%	6.38	5.33
NET PROFIT	%	5.68	4.72
FIXED ASSETS	%	4.44	227.54
TOTAL ASSETS	%	12.72	14.11

ANNUAL GROWTH : EXCELLENT

An annual sales growth is 23.36%. Turnover has increased from THB 3,544,302.99 in 2010 to THB 4,372,321.05 in 2011. While net profit has increased from THB 205,491.09 in 2010 to THB 217,165.10 in 2011. And total assets has increased from THB 6,529,376.38 in 2010 to THB 7,359,967.34 in 2011.

PROFITABILITY : IMPRESSIVE

PROFITABILITY RATIO

Gross Profit Margin	21.39	Impressive	Industrial Average	19.91
Net Profit Margin	4.97	Impressive	Industrial Average	1.27
Return on Assets	2.95	Impressive	Industrial Average	2.56
Return on Equity	3.54	Acceptable	Industrial Average	6.35

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 21.39%. 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 4.97%, 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 2.95%, 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 3.54%.

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

Return on Assets Uptrend

Return on Equity Downtrend

LIQUIDITY : ACCEPTABLE

LIQUIDITY RATIO

Current Ratio	5.94	Impressive	Industrial Average	1.49
Quick Ratio	0.06
Cash Conversion Cycle	768.44

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 5.94 times in 2011, decreased from 10.49 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 0.06 times in 2011, decreased from 0.12 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 769 days.

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

Current Ratio Downtrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.17	Impressive	Industrial Average	0.60
Debt to Equity Ratio	0.20	Impressive	Industrial Average	1.53
Times Interest Earned	-		Industrial Average	-

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 0.17 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 : ACCEPTABLE

ACTIVITY RATIO

Fixed Assets Turnover	117.40	Impressive	Industrial Average	-
Total Assets Turnover	0.59	Deteriorated	Industrial Average	2.01
Inventory Conversion Period	769.19
Inventory Turnover	0.47	Deteriorated	Industrial Average	4.66
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	3.37
Payables Conversion Period	0.74

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 942 days at the end of 2010 to 769 days at the end of 2011. This represents a positive trend. And Inventory turnover has increased from 0.39 times in year 2010 to 0.47 times in year 2011.

The company's Total Asset Turnover is calculated as 0.59 times and 0.54 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 Downtrend

Total Assets Turnover Downtrend

Inventory Turnover Downtrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.58.92
UK Pound	1	Rs.91.80
Euro	1	Rs.78.18

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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