MIRA INFORM REPORT

Report Date :

18.01.2014

Tel. No.:

+6628631134

IDENTIFICATION DETAILS

Name :	RAYMOND INTERNATIONAL CO., LTD.
Registered Office :	437/13 Thadindaeng Road, Somdejchaopraya, Klongsan, Bangkok 10600
Country :	Thailand
Financials (as on) :	31.12.2012
Date of Incorporation :	2010
Com. Reg. No.:	0105553082713
Legal Form :	Private Limited Company
Line of Business :	Importer, Distributor and Exporter of Textiles and Fabric Products
No. of Employees :	6

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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

RAYMOND INTERNATIONAL CO., LTD.

SUMMARY

BUSINESS ADDRESS : 437/13 THADINDAENG ROAD, SOMDEJCHAOPRAYA,

KLONGSAN, BANGKOK 10600, THAILAND

TELEPHONE : [66] 2863-1134-5

FAX : [66] 2863-1136

E-MAIL ADDRESS : anmolm@truemail.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2010

REGISTRATION NO. : 0105553082713

TAX ID NO. : 3033998610

CAPITAL REGISTERED : BHT. 11,000,000

CAPITAL PAID-UP : BHT. 11,000,000

SHAREHOLDER’S PROPORTION : THAI : 70.00%

INDIAN : 30.00%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. ANMOL MALHOTRA, INDIAN

MANAGING DIRECTOR

NO. OF STAFF : 6

LINES OF BUSINESS : TEXTILES AND FABRIC PRODUCTS

IMPORTER, DISTRIBUTOR AND EXPORTER

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 11, 2010 as a private limited company under the name style RAYMOND INTERNATIONAL CO., LTD., by Thai-Indian groups, with the objective to engage in textiles trading business. It currently employs 6 staff.

The subject’s registered address is 437/13 Thadindaeng Rd., Somdejchaopraya, Klongsan, Bangkok 10600, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Nirinth Sachdev	Thai	74
Mr. Pratheep Sachatrakul	Thai	74
Mr. Anmol Malhotra	Indian	51

AUTHORIZED PERSON

Any two of the above directors can jointly sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Anmol Malhotra is the Managing Director.

He is Indian nationality with the age of 51 years old.

BUSINESS OPERATIONS

The subject is engaged in fabric trading comprising importing and distributing various kinds of textiles, e.g. cotton, nylon, polyester, printed fabric, silk, linen and etc., as well as exporting of the products according to customer’s order.

PURCHASE

The products are purchased from both domestic and overseas suppliers, mainly India, Republic of China and Europe.

SALES

The products are sold locally to wholesalers, manufacturers and end-users.

EXPORT

The local products are exported to Hong Kong, Japan, Singapore, U.S.A., and the countries in Europe.

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 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.

Exports are against T/T.

BANKING

Bank of Ayudhya Public Co., Ltd.

EMPLOYMENT

The subject currently employs 6 staff.

LOCATION DETAILS

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

COMMENT

Subject was formed in August 2010. Its business is an importer, distributor and exporter various kinds of fabrics. Its business were posted at moderate level with increasing revenue each year.

However, growth is contracted due to shrinking domestic consumption resulted by economy slowdown and current political turmoil.

FINANCIAL INFORMATION

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

The capital was increased later as follows:

Bht. 3,000,000 on August 27, 2010

Bht. 5,000,000 on August 17, 2011

Bht. 11,000,000 on April 5, 2012

The latest registered capital was increased to Bht. 11,000,000 divided into 110,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at April 22, 2013]

NAME	HOLDING	%
Mr. Nirinth Sachdev Nationality: Thai Address : 40 Sukhumvit Rd., Klongtoeynua, Wattana, Bangkok	38,500	35.00
Mr. Pratheep Sachatrakul Nationality: Thai Address : 40 Sukhumvit Rd., Klongtoeynua, Wattana, Bangkok	38,500	35.00
Mr. Anmol Malhotra Nationality: Indian Address : 40 Sukhumvit Rd., Klongtoeynua, Wattana, Bangkok	33,000	30.00

Total Shareholders : 3

Share Structure [as at April 22, 2013]

Nationality	Shareholders	No. of Share	% Shares
Thai	2	77,000	70.00
Foreign - Indian	1	33,000	30.00
Total	3	110,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Thanapop Archanai No. 8982

BALANCE SHEET [BAHT]

The latest financial figures published as at December 31, 2012, 2011 & 2010 were:

ASSETS

Current Assets	2012	2011	2010
Cash and Cash Equivalents	911,715.49	781,213.26	2,848,727.52
Trade Accounts & Other Receivable	7,231,419.93	7,248,608.48	5,938,770.32
Inventories	16,496,610.59	19,968,487.89	5,387,731.10
Other Current Assets	-	-	649,092.45
Total Current Assets	24,639,746.01	27,998,309.63	14,824,321.39
Fixed Assets	364,013.71	237,244.53	293,989.87
Other Non-current Assets	66,600.00	66,600.00	66,600.00
Total Assets	25,070,359.72	28,302,154.16	15,184,911.26

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2012	2011	2010
Trade Accounts & Other Payable	9,498,708.44	19,234,724.90	10,033,742.31
Short-term Loan from Person or Related Company	-	1,000,000.00	653,900.00
Accrued Income Tax	177,376.00	150,462.29	-
Other Current Liabilities	-	-	298,109.41
Total Current Liabilities	9,676,084.44	20,385,187.19	10,985,751.72
Employee Benefits Obligation	75,154.60	39,092.87	-
Total Liabilities	9,751,239.04	20,424,280.06	10,985,751.72
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 110,000 shares in 2012; 50,000 shares in 2011 & 30,000 shares in 2010	11,000,000.00	5,000,000.00	3,000,000.00
Capital Paid	11,000,000.00	5,000,000.00	3,000,000.00
Retained Earning Unappropriated [Deficit]	4,319,120.68	2,877,874.10	1,199,159.54
Total Shareholders' Equity	15,319,120.68	7,877,874.10	4,199,159.54
Total Liabilities & Shareholders' Equity	25,070,359.72	28,302,154.16	15,184,911.26

PROFIT & LOSS ACCOUNT

Revenue	2012	2011	July 8, 2010 – Dec. 31, 2010
Sales Income	72,170,406.98	54,724,596.06	19,530,510.31
Other Income	635,881.45	874,194.51	259,980.86
Total Revenues	72,806,288.43	55,598,790.57	19,790,491.17
Expenses
Cost of Goods Sold	66,705,159.38	49,852,169.09	17,601,124.38
Selling Expenses	82,701.82	115,559.20	284,718.68
Administrative Expenses	4,135,906.74	3,533,459.26	469,069.85
Total Expenses	70,923,767.94	53,501,187.55	18,354,912.91
Profit / [Loss] before Income Tax	1,882,520.49	2,097,603.02	1,435,578.26
Income Tax	[441,273.91]	[409,269.14]	[236,418.72]
Net Profit / [Loss]	1,441,246.58	1,688,333.88	1,199,159.54

FINANCIAL ANALYSIS

ITEM	UNIT	2012	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.55	1.37	1.35
QUICK RATIO	TIMES	0.84	0.39	0.80
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	198.26	230.67	66.43
TOTAL ASSETS TURNOVER	TIMES	2.88	1.93	1.29
INVENTORY CONVERSION PERIOD	DAYS	90.27	146.20	111.73
INVENTORY TURNOVER	TIMES	4.04	2.50	3.27
RECEIVABLES CONVERSION PERIOD	DAYS	36.57	48.35	110.99
RECEIVABLES TURNOVER	TIMES	9.98	7.55	3.29
PAYABLES CONVERSION PERIOD	DAYS	51.98	140.83	208.07
CASH CONVERSION CYCLE	DAYS	74.86	53.72	14.64
PROFITABILITY RATIO
COST OF GOODS SOLD	%	92.43	91.10	90.12
SELLING & ADMINISTRATION	%	5.85	6.67	3.86
INTEREST	%	-	-	-
GROSS PROFIT MARGIN	%	8.45	10.50	11.21
NET PROFIT MARGIN BEFORE EX. ITEM	%	2.61	3.83	7.35
NET PROFIT MARGIN	%	2.00	3.09	6.14
RETURN ON EQUITY	%	9.41	21.43	28.56
RETURN ON ASSET	%	5.75	5.97	7.90
EARNING PER SHARE	BAHT	13.10	33.77	39.97
LEVERAGE RATIO
DEBT RATIO	TIMES	0.39	0.72	0.72
DEBT TO EQUITY RATIO	TIMES	0.64	2.59	2.62
TIME INTEREST EARNED	TIMES	-	-	-
ANNUAL GROWTH
SALES GROWTH	%	31.88	180.20
OPERATING PROFIT	%	(10.25)	46.12
NET PROFIT	%	(14.63)	40.79
FIXED ASSETS	%	53.43	(19.30)
TOTAL ASSETS	%	(11.42)	86.38

ANNUAL GROWTH : ACCEPTABLE

An annual sales growth is 31.88%. Turnover has increased from THB 54,724,596.06 in 2011 to THB 72,170,406.98 in 2012. While net profit has decreased from THB 1,688,333.88 in 2011 to THB 1,441,246.58 in 2012. And total assets has decreased from THB 28,302,154.16 in 2011 to THB 25,070,359.72 in 2012.

PROFITABILITY : IMPRESSIVE

PROFITABILITY RATIO

Gross Profit Margin	8.45	Satisfactory	Industrial Average	9.17
Net Profit Margin	2.00	Impressive	Industrial Average	0.67
Return on Assets	5.75	Impressive	Industrial Average	1.12
Return on Equity	9.41	Impressive	Industrial Average	3.91

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 8.45%. 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. Net Profit Margin ratio is 2%, 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 5.75%, 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 9.41%, 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 : ACCEPTABLE

LIQUIDITY RATIO

Current Ratio	2.55	Impressive	Industrial Average	1.42
Quick Ratio	0.84
Cash Conversion Cycle	74.86

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 2.55 times in 2012, increase from 1.37 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 0.84 times in 2012, decrease from 0.39 times, by excluding inventory, the company may have problems meeting current liabilities.

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 75 days.

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

Current Ratio Downtrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.39	Impressive	Industrial Average	0.72
Debt to Equity Ratio	0.64	Impressive	Industrial Average	2.59
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 0.39 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	198.26	Impressive	Industrial Average	-
Total Assets Turnover	2.88	Impressive	Industrial Average	1.67
Inventory Conversion Period	90.27
Inventory Turnover	4.04	Satisfactory	Industrial Average	4.68
Receivables Conversion Period	36.57
Receivables Turnover	9.98	Impressive	Industrial Average	2.33
Payables Conversion Period	51.98

The company's Account Receivable Ratio is calculated as 9.98 and 7.55 in 2012 and 2011 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 2012 increased from 2011. 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 146 days at the end of 2011 to 90 days at the end of 2012. This represents a positive trend. And Inventory turnover has increased from 2.5 times in year 2011 to 4.04 times in year 2012.

The company's Total Asset Turnover is calculated as 2.88 times and 1.93 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 Downtrend

Total Assets Turnover Downtrend

Inventory Turnover Downtrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.35
UK Pound	1	Rs.100.21
Euro	1	Rs.83.52

INFORMATION DETAILS

Report Prepared by :

NNA

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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