MIRA INFORM REPORT

Report Date :

23.08.2014

IDENTIFICATION DETAILS

Name :	SHIPPING EXPRESS CO., LTD.
Formerly Known As :	SHIPPING EXPRESS LIMITED PARTNERSHIP
Registered Office :	44/335 Moo 4, T. Takientia, A. Banglamung, Chonburi 20150,
Country :	Thailand
Financials (as on) :	31.12.2013
Date of Incorporation :	20.05.2008
Com. Reg. No.:	0205555004638
Legal Form :	Private Limited Company
Line of Business :	subject is engaged in providing complete range of air/sea freight forwarding services, including custom broker, import & export transportation, packing, logistics and business consulting.
No of Employees :	04

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 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Thailand	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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. 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 in 2013 implemented a nation-wide 300 baht ($10) per day minimum wage policy and deployed 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 recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government 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 following seven years. This was expected to lead to an economic upsurge but growth has remained slow, in part due to ongoing political unrest and resulting uncertainties. Spending on infrastructure will require re-approval once a new government is seated.

Source : CIA

Company name

SHIPPING EXPRESS CO., LTD.

[FORMER: SHIPPING EXPRESS LIMITED PARTNERSHIP]

SUMMARY

BUSINESS ADDRESS : 44/335 MOO 4, T. TAKIENTIA, A. BANGLAMUNG,

CHONBURI 20150, THAILAND

TELEPHONE : [66] 38 493-399

FAX : [66] 38 493-399

E-MAIL ADDRESS : info@imptrans.in.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2008

REGISTRATION NO. : 0205555004638 [Former: 0203551003406]

TAX ID NO. : 3033070293

CAPITAL REGISTERED : BHT. 2,000,000

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

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MS. SASIPIMOL KAWILA, THAI

MANAGING DIRECTOR

NO. OF STAFF : 4

LINES OF BUSINESS : FREIGHT FORWARDING AGENT

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 initially established on May 20, 2008 as a limited partnership under the registered name “IMP Transport Limited Partnership” [Reg. no. 0203551003406] by Thai partners. On December 29, 2011, its registered name was changed to “Shipping Express Limited Partnership”. On February 10, 2012, its status was converted to a private limited company, named SHIPPING EXPRESS CO., LTD. Its business objective is to provide complete range of air/sea freight forwarding services. Subject currently employs 4 staff.

The subject’s registered address is 44/335 Moo 4, T. Takientia, A. Banglamung,

Chonburi 20150, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Ms. Sasipimol Kawila	Thai	-

AUTHORIZED PERSON

Only Ms. Sasipimol Kawila can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Ms. Sasipimol Kawila is the Managing Director.

She is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in providing complete range of air/sea freight forwarding services, including custom broker, import & export transportation, packing, logistics and business consulting.

PURCHASE

100% of purchasing is from local suppliers.

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 the past two years.

CREDIT

Sales & services are by cash or on the credits term of 30-60 days.

Local bills are paid by cash or on the credit term of 30 days.

BANKING

The banker’s name was not disclosed.

EMPLOYMENT

The subject employs 4 staff.

LOCATION DETAILS

The premise is owned for administrative office at the heading address. Premise is located in provincial.

REMARK

MAXIMUM CREDIT SHOULD BE GRANTED AT US$ 100,000.

COMMENT

The subject is considered a small operator in freight forwarding services. Sales were reported at low level, as well as growth and expansion remains still.

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 May 14, 2014]

NAME	HOLDING	%
Ms. Sasipimol Kawila Nationality: Thai Address : 44/335 Moo 4, T. Takientia, A. Banglamung, Chonburi	17,000	85.00
Ms. Narannath Srikaew Nationality: Thai Address : 37 Moo 8, T. Bueng, A. Sriracha, Chonburi	1,000	5.00
Pol. Sgt. Maj. Boontham Srikaew Nationality: Thai Address : 177 Moo 9, T. Nongkan, A. Phuluang, Loei	1,000	5.00
Mrs. Thansayakamol Srichotitakorn Nationality: Thai Address : 3 Nawamin 74 Rd., Kannayao, Bangkok	1,000	5.00

Total Shareholders : 4

Share Structure [as at May 14, 2014]

Nationality	Shareholders	No. of Share	% Shares
Thai	4	20,000	100.00
Foreign	-	-	-
Total	4	20,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mr. Nawat Horwattananan No. 9305

SHIPPING EXPRESS CO., LTD.

BALANCE SHEET [BAHT]

The latest financial figures published as at December 31, 2013, 2012 & 2011 were:

ASSETS

Current Assets	2013	2012	2011
Cash and Cash Equivalents	42,927.47	11,170.02	11,555.18
Short-term Loan	3,150,000.00	3,500,000.00	2,850,000.00
Other Current Assets	676,382.16	257,599.02	309,726.44
Total Current Assets	3,869,309.63	3,768,769.04	3,171,281.62
Fixed Assets	1,397,302.42	1,381,741.14	1,604,183.02
Total Assets	5,266,612.05	5,150,510.18	4,775,464.64

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2013	2012	2011
Trade Accounts & Other Payable	-	-	32,752.12
Current Portion of Hire-purchase Payable	132,291.81	384,180.00	317,499.96
Current Portion of Long-term Loans	187,768.44	187,768.44	178,866.57
Accrued Income Tax	56,238.95	118,800.06	11,804.26
Other Current Liabilities	84,137.57	85,829.94	-
Total Current Liabilities	460,436.77	776,578.44	540,922.91
Hire-purchase Payable - Net	-	65,611.77	449,791.77
Long-term Loans - Net	108,735.49	296,503.93	520,387.53
Total Liabilities	569,172.26	1,138,694.14	1,511,102.21
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 [Deficit]	2,697,439.79	2,011,816.04	1,264,362.43
Total Shareholders' Equity	4,697,439.79	4,011,816.04	3,264,362.43
Total Liabilities & Shareholders' Equity	5,266,612.05	5,150,510.18	4,775,464.64

PROFIT & LOSS ACCOUNT

Revenue	2013	2012	2011
Service Income	7,198,286.28	6,342,047.26	3,322,863.44
Other Income	82,370.00	72,825.00	52,668.74
Total Revenues	7,280,656.28	6,414,872.26	3,375,532.18
Expenses
Cost of Service	5,159,476.64	4,597,984.88	2,558,554.38
Selling and Administrative Expenses	1,282,636.90	857,196.24	363,494.92
Total Expenses	6,442,113.54	5,455,181.12	2,922,049.30
Profit / [Loss] before Financial Cost & Income Tax	838,542.74	959,691.14	453,482.88
Financial Costs	[66,680.04]	[91,813.47]	[30,161.02]
Profit / [Loss] before Income Tax	771,862.70	867,877.67	423,321.86
Income Tax	[86,238.95]	[120,424.06]	[41,663.08]
Net Profit / [Loss]	685,623.75	747,453.61	381,658.78

SHIPPING EXPRESS CO., LTD.

FINANCIAL ANALYSIS

ITEM	UNIT	2013	2012	2011
LIQUIDITY RATIO
CURRENT RATIO	TIMES	8.40	4.85	5.86
QUICK RATIO	TIMES	6.93	4.52	5.29
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	5.15	4.59	2.07
TOTAL ASSETS TURNOVER	TIMES	1.37	1.23	0.70
INVENTORY CONVERSION PERIOD	DAYS	-	-	-
INVENTORY TURNOVER	TIMES	-	-	-
RECEIVABLES CONVERSION PERIOD	DAYS	-	-	-
RECEIVABLES TURNOVER	TIMES	-	-	-
PAYABLES CONVERSION PERIOD	DAYS	-	-	4.67
CASH CONVERSION CYCLE	DAYS	-	-	(4.67)
PROFITABILITY RATIO
COST OF GOODS SOLD	%	71.68	72.50	77.00
SELLING & ADMINISTRATION	%	17.82	13.52	10.94
INTEREST	%	0.93	1.45	0.91
GROSS PROFIT MARGIN	%	29.47	28.65	24.59
NET PROFIT MARGIN BEFORE EX. ITEM	%	11.65	15.13	13.65
NET PROFIT MARGIN	%	9.52	11.79	11.49
RETURN ON EQUITY	%	14.60	18.63	11.69
RETURN ON ASSET	%	13.02	14.51	7.99
EARNING PER SHARE	BAHT	34.28	37.37	19.08
LEVERAGE RATIO
DEBT RATIO	TIMES	0.11	0.22	0.32
DEBT TO EQUITY RATIO	TIMES	0.12	0.28	0.46
TIME INTEREST EARNED	TIMES	12.58	10.45	15.04
ANNUAL GROWTH
SALES GROWTH	%	13.50	90.86
OPERATING PROFIT	%	(12.62)	111.63
NET PROFIT	%	(8.27)	95.84
FIXED ASSETS	%	1.13	(13.87)
TOTAL ASSETS	%	2.25	7.85

ANNUAL GROWTH : SATISFACTORY

An annual sales growth is 13.5%. Turnover has increased from THB 6,342,047.26 in 2012 to THB 7,198,286.28 in 2013. While net profit has decreased from THB 747,453.61 in 2012 to THB 685,623.75 in 2013. And total assets has increased from THB 5,150,510.18 in 2012 to THB 5,266,612.05 in 2013.

PROFITABILITY : SATISFACTORY

PROFITABILITY RATIO

Gross Profit Margin	29.47	Deteriorated	Industrial Average	66.66
Net Profit Margin	9.52	Impressive	Industrial Average	5.06
Return on Assets	13.02	Impressive	Industrial Average	9.58
Return on Equity	14.60	Acceptable	Industrial Average	19.96

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 29.47%. 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 9.52%, 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 13.02%, 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 14.6%.

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

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY : SATISFACTORY

LIQUIDITY RATIO

Current Ratio	8.40	Impressive	Industrial Average	1.82
Quick Ratio	6.93
Cash Conversion Cycle	-

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 8.4 times in 2013, increased from 4.85 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 6.93 times in 2013, increased from 4.52 times, although excluding inventory so the company still have good short-term financial strength.

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

Current Ratio Uptrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.11	Impressive	Industrial Average	0.49
Debt to Equity Ratio	0.12	Impressive	Industrial Average	0.96
Times Interest Earned	12.58	Impressive	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.

Times Interest Earned measuring a company's ability to meet its debt obligations. Ratio is 12.58 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 0.11 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 Stable

ACTIVITY : SATISFACTORY

ACTIVITY RATIO

Fixed Assets Turnover	5.15	Impressive	Industrial Average	-
Total Assets Turnover	1.37	Acceptable	Industrial Average	1.89
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	20.26
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	3.22
Payables Conversion Period	-

The company's Total Asset Turnover is calculated as 1.37 times and 1.23 times in 2013 and 2012 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 Stable

Total Assets Turnover Uptrend

Inventory Turnover Uptrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.77
UK Pound	1	Rs.100.72
Euro	1	Rs.80.55

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	TPT

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