MIRA INFORM REPORT

Report Date :

22.02.2014

IDENTIFICATION DETAILS

Name :	GOOD LINE INTERTRADE COMPANY LIMITED
Registered Office :	31 Soi Nakniwat 15, Nakniwat Road, Kwaeng Ladprao, Khet Ladprao, Bangkok 10230
Country :	Thailand
Financials (as on) :	31.12.2012
Date of Incorporation :	09.03.2011
Com. Reg. No.:	0105554034224
Legal Form :	Private Limited Company
Line of Business :	Subject is engaged in importing and distributing various kinds of fresh vegetable and fruits, as well as frozen chicken and pork entrails for foods and food processing industry.
No of Employees :	3

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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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 crisis 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

GOOD LINE INTERTRADE COMPANY LIMITED

SUMMARY

BUSINESS ADDRESS : 31 SOI NAKNIWAT 15, NAKNIWAT ROAD,

KWAENG LADPRAO, KHET LADPRAO,

BANGKOK 10230, THAILAND

TELEPHONE : [66] 089 477-2233

FAX : [66] 2542-4431

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2011

REGISTRATION NO. : 0105554034224

TAX ID NO. : -

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. THAWAL LAPROM, THAI

MANAGING DIRECTOR

NO. OF STAFF : 3

LINES OF BUSINESS : FRESH AND FROZEN FOODS

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 March 9, 2011 as a private limited company under the registered name GOOD LINE INTERTRADE COMPANY LIMITED by Thai groups. Its business objective is to import and distribute fresh and frozen foods to domestic market. It currently employs 3 staff.

The subject’s registered address was initially located at 36 Soi Nakniwat 48, Yaek 10, Nakniwat Rd., Kwaeng Ladprao, Khet Ladprao, Bangkok 10230.

In 2012, its registered address was relocated to 31 Soi Narkniwat 15, Narkniwat Road, Kwaeng Ladprao, Khet Ladprao, Bangkok 10230, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Thawal Laprom	Thai	36
Mr. Danai Saengpho	Thai	37

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Thawal Laprom is the Managing Director.

He is Thai nationality with the age of 36 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing various kinds of fresh vegetable and fruits, as well as frozen chicken and pork entrails for foods and food processing industry.

PURCHASE

Most of the products are purchased from local suppliers, and the rest is imported from India.

SALES

100% of the products is sold locally by wholesale 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 subject according to for the past two years.

CREDIT

Sales are by cash or on the credit term of 30 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 3 staff.

LOCATION DETAILS

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

COMMENT

Subject’s business is a distributor of fresh fruits and vegetable including frozen chicken and pork entrails. The products have been served to food industries. Subject reported moderate sales in 2012. Despite economy slowdown, its business has grown viable from local steady demand.

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, 2013]

NAME	HOLDING	%
Mr. Thawal Laprom Nationality: Thai Address : 10/68 Soi Lasalle 10, Kwaeng Bangna, Khet Bangna, Bangkok	4,000	40.00
Mr. Danai Saengpho Nationality: Thai Address : 36 Soi Nakniwat 48 Yaek 10, Nakniwat Rd., Kwaeng Ladprao, Khet Ladprao, Bangkok	4,000	40.00
Ms. Roong Saetang Nationality: Thai Address : 31 Soi Nakniwat 15, Nakniwat Rd., Kwaeng Ladprao, Khet Ladprao, Bangkok	2,000	20.00

Total Shareholders : 3

Share Structure [as at April 30, 2013]

Nationality	Shareholders	No. of Share	% Shares
Thai	3	10,000	100.00
Foreign	-	-	-
Total	3	10,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Ms. Kanarat Kijthanapoprung No. 5939

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2012 & 2011 were:

ASSETS

Current Assets	2012	2011
Cash in Hand	53,278.36	17,426.10
Short-term Loan to Related Person	4,000,000.00	1,000,000.00
Other Current Assets	416,552.19	13,333.33
Total Current Assets	4,469,830.55	1,030,759.43
Total Assets	4,469,830.55	1,030,759.43

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2012	2011
Trade Account & Other Payable	1,942,844.46	-
Accrued Income Tax	243,509.73	-
Other Current Liabilities	21,988.71	8,000.00
Total Current Liabilities	2,208,342.90	8,000.00
Total Liabilities	2,208,342.90	8,000.00
Shareholders' Equity
Share capital : Baht 100 value authorized, issued and fully paid share capital 10,000 shares	1,000,000.00	1,000,000.00
Capital Paid	1,000,000.00	1,000,000.00
Retained Earning - Unappropriated	1,261,487.65	22,759.43
Total Shareholders' Equity	2,261,487.65	1,022,759.43
Total Liabilities & Shareholders' Equity	4,469,830.55	1,030,759.43

PROFIT & LOSS ACCOUNT

Revenue	2012	2011
Sales Income	56,809,029.60	672,000.00
Other Income	3,781.59	13,333.33
Total Revenues	56,812,811.19	685,333.33
Expenses
Cost of Goods Sold	54,670,972.18	647,223.90
Administrative Expenses	533,101.06	15,350.00
Total Expenses	55,204,073.24	662,573.90
Profit / [Loss] before Income Tax	1,608,737.95	22,759.43
Income Tax	[370,009.73]	-
Net Profit / [Loss]	1,238,728.22	22,759.43

FINANCIAL ANALYSIS

ITEM	UNIT	2012	2011
LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.02	128.84
QUICK RATIO	TIMES	1.84	127.18
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	-	-
TOTAL ASSETS TURNOVER	TIMES	12.71	0.65
INVENTORY CONVERSION PERIOD	DAYS	-	-
INVENTORY TURNOVER	TIMES	-	-
RECEIVABLES CONVERSION PERIOD	DAYS	-	-
RECEIVABLES TURNOVER	TIMES	-	-
PAYABLES CONVERSION PERIOD	DAYS	12.97	-
CASH CONVERSION CYCLE	DAYS	(12.97)	-
PROFITABILITY RATIO
COST OF GOODS SOLD	%	96.24	96.31
SELLING & ADMINISTRATION	%	0.94	2.28
INTEREST	%	-	-
GROSS PROFIT MARGIN	%	3.77	5.67
NET PROFIT MARGIN BEFORE EX. ITEM	%	2.83	3.39
NET PROFIT MARGIN	%	2.18	3.39
RETURN ON EQUITY	%	54.77	2.23
RETURN ON ASSET	%	27.71	2.21
EARNING PER SHARE	BAHT	123.87	2.28
LEVERAGE RATIO
DEBT RATIO	TIMES	0.49	0.01
DEBT TO EQUITY RATIO	TIMES	0.98	0.01
TIME INTEREST EARNED	TIMES	-	-
ANNUAL GROWTH
SALES GROWTH	%	8,353.72	-
OPERATING PROFIT	%	6,968.45	-
NET PROFIT	%	5,342.70	-
FIXED ASSETS	%	-	-
TOTAL ASSETS	%	333.64	-

PROFITABILITY : IMPRESSIVE

PROFITABILITY RATIO

Gross Profit Margin	3.77	Deteriorated	Industrial Average	20.20
Net Profit Margin	2.18	Impressive	Industrial Average	1.66
Return on Assets	27.71	Impressive	Industrial Average	5.48
Return on Equity	54.77	Impressive	Industrial Average	16.29

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 3.77%. 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 2.18%, 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 27.71%, 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 54.77%, 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 Uptrend

Return on Equity Uptrend

LIQUIDITY : IMPRESSIVE

LIQUIDITY RATIO

Current Ratio	2.02	Impressive	Industrial Average	1.17
Quick Ratio	1.84
Cash Conversion Cycle	(12.97)

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 2.02 times in 2012, decreased from 128.84 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 1.84 times in 2012, decreased from 127.18 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 -13 days.

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

Current Ratio Uptrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.49	Impressive	Industrial Average	0.65
Debt to Equity Ratio	0.98	Impressive	Industrial Average	1.84
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 0.49 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 : EXCELLENT

ACTIVITY RATIO

Fixed Assets Turnover	-		Industrial Average	-
Total Assets Turnover	12.71	Impressive	Industrial Average	3.30
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	9.66
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	6.43
Payables Conversion Period	12.97

The company's Total Asset Turnover is calculated as 12.71 times and 0.65 times in 2012 and 2011 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

Key Areas	Score	Weight	Weighted Score
LIQUIDITY RATIO	3.56	25.00	89.00
ACTIVITY RATIO	4.00	20.00	80.00
PROFITABILITY RATIO	3.00	25.00	75.00
LEVERAGE RATIO	4.00	10.00	40.00
ANNUAL GROWTH	3.20	20.00	64.00
Total Weight (excluding - - Score)		100.00
			348.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.16
UK Pound	1	Rs. 103.44
Euro	1	Rs. 85.26

INFORMATION DETAILS

Report Prepared by :

DPT

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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