MIRA INFORM REPORT

Report Date :

15.03.2013

IDENTIFICATION DETAILS

Name :	C.U.S. INTERNATIONAL CO., LTD.
Registered Office :	199/14-15 Lumpoo Road, Watsamphraya, Phranakorn, Bangkok 10200
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	15.08.2002
Com. Reg. No.:	0105545083960
Legal Form :	Private Limited Company
Line of Business :	Importer and Distributor of Hand Carried Bags and Cases
No. of Employees :	10

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

C.U.S. INTERNATIONAL CO., LTD.

SUMMARY

BUSINESS ADDRESS : 199/14-15 LUMPOO ROAD, WATSAMPHRAYA,

PHRANAKORN, BANGKOK 10200

TELEPHONE : [66] 2888-6967-9, 089 124-8671

FAX : [66] 2281-3602

E-MAIL ADDRESS : cus2545@gmail.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2002

REGISTRATION NO. : 0105545083960

TAX ID NO. : 3030636744

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. SAENGCHAI NILCHIARASAKUL, THAI

MANAGING DIRECTOR

NO. OF STAFF : 10

LINES OF BUSINESS : HAND CARRIED BAGS AND CASES

IMPORTER AND DISTRIBUTOR

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 August 15, 2002 as a private limited company under the registered name C.U.S. INTERNATIONAL CO., LTD., by Thai groups, with the business objective to import and distribute wide range of hand carried bags and cases to domestic market. It currently employs 10 staff.

The subject’s registered address is 199/14-15 Lumpoo Road, Watsamphraya, Phranakorn, Bangkok 10200, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Saengchai Nilchiarasakul	Thai	49
Mr. Chanachai Nilchiarasakul	Thai	60

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Saengchai Nilchiarasakul is the Managing Director.

He is Thai nationality with the age of 49 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing wide range of handy bags and cases. The products and brands are as follows:

· Hand carries bags and cases, such as Ipad cases, tablet cases, laptop cases,

Macbook cases, CD/ DVD albums, CD/ DVD cases, camera bags, trolley bags,

portable electronics cases, under the brand name “CASE LOGIC”.

· Sport bags under the brand name “ VAUDE”.

· Accessories

The products are made from leather, PVC and Vinyl.

PURCHASE

90% of the products is imported from Germany and U.S.A., the remaining 10% is purchased from local suppliers.

MAJOR SUPPLIERS

Vaude Sport GmbH & Co. KG. : Germany

Case Logic Inc. : U.S.A.

SALES

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

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.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject currently employs approximately 10 staff.

LOCATION DETAILS

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

COMMENT

The subject’s operating performance in 2011 was satisfactory with moderate sales. The subject reported a sale increased in the past two years from an expansion of the market in relation to strong consumption. Its business has grown considerably.

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. Saengchai Nilchairasakul Nationality: Thai Address : 195 Chakrapong Rd., Chanasongkram, Phranakorn, Bangkok	7,600	76.00
Mr. Paibul Tangtrongkij Nationality: Thai Address : 537/144 Sathupradit Rd., Chongnonsi, Yannawa, Bangkok	500	5.00
Mr. Chanachai Nilchiarasakul Nationality: Thai Address : 195 Chakrapong Rd., Chanasongkram, Phranakorn, Bangkok	500	5.00
Mr. Manachai Nilchiarasakul Nationality: Thai Address : 199/14-15 Lumpoo Rd., Watsamphraya, Phranakorn, Bangkok	500	5.00
Mrs. Bamphen Taothong Nationality: Thai Address : 7 Soi 22/13 Premruthai Village, Thasai, Muang, Nonthaburi	500	5.00
Mr. Somchai Prathanasanti Nationality: Thai Address : 327 Thadindaeng Rd., Somdejchaopraya, Klongsan, Bangkok	200	2.00
Ms. Sureerat Nilchiarasakul Nationality: Thai Address : 195 Chakrapong Rd., Chanasongkram, Phranakorn, Bangkok	200	2.00

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. :

Ms. Natenuch Kanchanalekha No. 9410

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	2,133,309.74	437,071.12	128,041.83
Trade Accounts & Other Receivable	24,580,505.42	26,845,355.68	26,363,795.00
Inventories	79,943.07	-	82,580.51
Other Current Assets	18,386.94	19,162.49	444,285.22
Total Current Assets	26,812,145.17	27,301,589.29	27,018,702.56
Fixed Assets	2,033,794.59	1,564,360.26	1,174,805.57
Total Assets	28,845,939.76	28,865,949.55	28,193,508.13

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2011	2010	2009
Trade Accounts & Other Payable	4,352,117.66	6,511,532.20	7,957,882.85
Accrued Income Tax	697,609.44	922,478.65	-
Other Current Liabilities	4,100.00	4,100.00	1,730,277.97
Total Current Liabilities	5,053,827.10	7,438,110.85	9,688,160.82
Total Liabilities	5,053,827.10	7,438,110.85	9,688,160.82
Shareholders' Equity
Share capital : Baht 100 par 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	22,792,112.66	20,427,838.70	17,505,347.31
Total Shareholders' Equity	23,792,112.66	21,427,838.70	18,505,347.31
Total Liabilities & Shareholders' Equity	28,845,939.76	28,865,949.55	28,193,508.13

PROFIT & LOSS ACCOUNT

Revenue	2011	2010	2009
Sales Income	46,333,867.11	39,509,248.00	37,696,310.47
Other Income	201,280.85	7,003.35	6,850.07
Total Revenues	46,535,147.96	39,516,251.35	37,703,160.54
Expenses
Cost of Goods Sold	40,375,906.98	31,675,149.79	31,272,130.97
Administrative Expenses	3,097,357.58	3,996,131.52	2,814,287.68
Total Expenses	43,473,264.56	35,671,281.31	34,086,418.65
Profit / [Loss] before Income Tax	3,061,883.40	3,844,970.04	3,616,741.89
Income Tax	[697,609.44]	[922,478.65]	[851,139.55]
Net Profit / [Loss]	2,364,273.96	2,922,491.39	2,765,602.34

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	5.31	3.67	2.79
QUICK RATIO	TIMES	5.29	3.67	2.73
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	22.78	25.26	32.09
TOTAL ASSETS TURNOVER	TIMES	1.61	1.37	1.34
INVENTORY CONVERSION PERIOD	DAYS	0.72	-	0.96
INVENTORY TURNOVER	TIMES	505.06	-	378.69
RECEIVABLES CONVERSION PERIOD	DAYS	193.64	248.01	255.27
RECEIVABLES TURNOVER	TIMES	1.88	1.47	1.43
PAYABLES CONVERSION PERIOD	DAYS	39.34	75.03	92.88
CASH CONVERSION CYCLE	DAYS	155.01	172.97	163.35
PROFITABILITY RATIO
COST OF GOODS SOLD	%	87.14	80.17	82.96
SELLING & ADMINISTRATION	%	6.68	10.11	7.47
INTEREST	%	-	-	-
GROSS PROFIT MARGIN	%	13.29	19.85	17.06
NET PROFIT MARGIN BEFORE EX. ITEM	%	6.61	9.73	9.59
NET PROFIT MARGIN	%	5.10	7.40	7.34
RETURN ON EQUITY	%	9.94	13.64	14.94
RETURN ON ASSET	%	8.20	10.12	9.81
EARNING PER SHARE	BAHT	236.43	292.25	276.56
LEVERAGE RATIO
DEBT RATIO	TIMES	0.18	0.26	0.34
DEBT TO EQUITY RATIO	TIMES	0.21	0.35	0.52
TIME INTEREST EARNED	TIMES	-	-	-
ANNUAL GROWTH
SALES GROWTH	%	17.27	4.81
OPERATING PROFIT	%	(20.37)	6.31
NET PROFIT	%	(19.10)	5.67
FIXED ASSETS	%	30.01	33.16
TOTAL ASSETS	%	(0.07)	2.39

ANNUAL GROWTH : ACCEPTABLE

An annual sales growth is 17.27%. Turnover has increased from THB 39,509,248.00 in 2010 to THB 46,333,867.11 in 2011. While net profit has decreased from THB 2,922,491.39 in 2010 to THB 2,364,273.96 in 2011. And total assets has decreased from THB 28,865,949.55 in 2010 to THB 28,845,939.76 in 2011.

PROFITABILITY : IMPRESSIVE

PROFITABILITY RATIO

Gross Profit Margin	13.29	Deteriorated	Industrial Average	41.00
Net Profit Margin	5.10	Impressive	Industrial Average	1.31
Return on Assets	8.20	Impressive	Industrial Average	1.05
Return on Equity	9.94	Impressive	Industrial Average	3.55

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 13.29%. 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 5.1%, 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 8.2%, 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. Return on Equity ratio is 9.94%, 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.

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

Return on Assets Downtrend

Return on Equity Downtrend

LIQUIDITY : SATISFACTORY

LIQUIDITY RATIO

Current Ratio	5.31	Impressive	Industrial Average	1.62
Quick Ratio	5.29
Cash Conversion Cycle	155.01

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 5.31 times in 2011, increased from 3.67 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 5.29 times in 2011, increased from 3.67 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 156 days.

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

Current Ratio Uptrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.18	Impressive	Industrial Average	1.06
Debt to Equity Ratio	0.21	Impressive	Industrial Average	3.22
Times Interest Earned	-		Industrial Average	0.88

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 0.18 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 Uptrend

Times Interest Earned Downtrend

ACTIVITY : IMPRESSIVE

ACTIVITY RATIO

Fixed Assets Turnover	22.78	Impressive	Industrial Average	3.39
Total Assets Turnover	1.61	Impressive	Industrial Average	1.25
Inventory Conversion Period	0.72
Inventory Turnover	505.06	Impressive	Industrial Average	3.20
Receivables Conversion Period	193.64
Receivables Turnover	1.88	Deteriorated	Industrial Average	4.22
Payables Conversion Period	39.34

The company's Account Receivable Ratio is calculated as 1.88 and 1.47 in 2011 and 2010 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 2011 increased from 2010. 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 increased from 0 day at the end of 2010 to 1 day at the end of 2011. This represents a negative trend. And Inventory turnover has increased from 0 times in year 2010 to 505.06 times in year 2011.

The company's Total Asset Turnover is calculated as 1.61 times and 1.37 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 Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.44
UK Pound	1	Rs.81.33
Euro	1	Rs.70.50

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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