MIRA INFORM REPORT

Report Date :

22.01.2014

IDENTIFICATION DETAILS

Name :	PHUTTHABAHT MARBLE AND GRANITE CO., LTD.
Registered Office :	43/1 Moo 9, Phaholyothin Road, T. Phukhamjan, A. Phraphutthabaht,Saraburi 18120
Country :	Thailand
Financials (as on) :	31.12.2012
Date of Incorporation :	1991
Com. Reg. No.:	0195534000090
Legal Form :	Private Limited Company
Line of Business :	Manufacturer and Distributor of Marble and Granite
No. of Employees :	20

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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 & address

PHUTTHABAHT MARBLE AND GRANITE CO., LTD.

SUMMARY

BUSINESS ADDRESS : 43/1 MOO 9, PHAHOLYOTHIN ROAD,

T. PHUKHAMJAN, A. PHRAPHUTTHABAHT,

SARABURI 18120, THAILAND

TELEPHONE : [66] 36 323-556-7, 089 900-8845

FAX : [66] 36 268-863

E-MAIL ADDRESS : phutthabaht@hotmail.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1991

REGISTRATION NO. : 0195534000090

TAX ID NO. : 3171001654

CAPITAL REGISTERED : BHT. 16,000,000

CAPITAL PAID-UP : BHT. 16,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : DR. KAMPEE SURIYASASIN, THAI

MANAGING DIRECTOR

NO. OF STAFF : 20

LINES OF BUSINESS : MARBLE AND GRANITE

MANUFACTURER AND DISTRIBUTOR

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : FAIR WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH LOW PERFORMANCE

HISTORY

The subject was established on March 11, 1991 as a private limited company under the registered name PHUTTHABAHT MARBLE AND GRANITE CO., LTD. by Thai group, with the business objective to manufacture and distribute marbles and granites to domestic market. It currently employs approximately 20 staff.

The subject’s registered address is 43/1 Moo 9 Phaholyothin Road, T. Phukhamjan,

A. Phraphutthabaht, Saraburi 18120, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Dr. Kampee Suriyasasin	[x]	Thai	-
Mr. Muk Suriyasasin		Thai	-
Ms. Peeraya Suriyasasin		Thai	-

AUTHORIZED PERSON

Only the mentioned director [x] signs or both of the rest directors can jointly sign on behalf of the subject with company’s affixed.

MANAGEMENT

Dr. Kampee Suriyasasin is the Managing Director.

He is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing and distributing marbles and granites.

PURCHASE

100% of raw material and related equipment are purchased from local suppliers.

SALES

100% of the products is sold locally to wholesalers 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 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.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject currently employs approximately 20 staff.

LOCATION DETAILS

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

COMMENT

The subject is a manufacturer and distributor of marbles and granites. The subject’s operating performance in 2012 was depressive with a drastic decrease in its sales revenue comparing to the same period of the previous year. Marbles and granites are natural stones which are more expensive than those artificial stones. The products are for high-end customers due to higher price so they are not popular among general customers. Its business outlook seems to be sluggish.

Moreover, the subject has large amount of deficit retained earning, therefore the maximum credit is not recommended.

FINANCIAL INFORMATION

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

On April 7, 2004, the registered capital was increased to Bht. 16,000,000 divided into 160,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at April 30, 2013]

NAME	HOLDING	%
Dr. Kampee Suriyasasin Nationality: Thai Address : 2 Ramkhamhaeng Road, Sapansung, Bangkok	159,940	99.96
Mrs. Srisamorn Suriyasasin Nationality: Thai Address : 2 Ramkhamhaeng Road, Sapansung, Bangkok	10
Mr. Muk Suriyasasin Nationality: Thai Address : 2 Ramkhamhaeng Road, Sapansung, Bangkok	10
Ms. Peeraya Suriyasasin Nationality: Thai Address : 2 Ramkhamhaeng Road, Sapansung, Bangkok	10	= 0.04
Mr. Pongchai Suriyasasin Nationality: Thai Address : 2 Ramkhamhaeng Road, Sapansung, Bangkok	10
Mrs. Benjarong Jiracharan Nationality: Thai Address : 2 Ramkhamhaeng Road, Sapansung, Bangkok	10
Mr. Amnart Suriyasasin Nationality: Thai Address : 2 Ramkhamhaeng Road, Sapansung, Bangkok	10

Total Shareholders : 7

Share Structure [as at April 30, 2013]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	160,000	100.00
Foreign	-	-	-
Total	7	160,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Amarin Soponthavornkul No. 7414

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	293,038.58	248,736.09	258,597.02
Other Receivable	-	82,500.00	271,203.78
Inventories	6,435,011.27	6,795,444.82	6,757,352.36
Other Current Assets	-	-	19,316.93
Total Current Assets	6,728,049.85	7,126,680.91	7,306,470.09
Building Equipment and Vehicle	490,107.38	1,000,164.96	1,598,437.61
Total Assets	7,218,157.23	8,126,845.87	8,904,907.70

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2012	2011	2010
Other Payable	8,692.00	64,837.37	11,760.00
Accrued Income Tax	13,717.66	51,183.60	45,616.21
Other Current Liabilities	5,315.88	67,628.66	72,594.28
Total Current Liabilities	27,725.54	183,649.63	129,970.49
Long-term Loan from Related Person	32,000,000.00	32,500,000.00	33,500,000.00
Total Liabilities	32,027,725.54	32,683,649.63	33,629,970.49
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 160,000 shares	16,000,000.00	16,000,000.00	16,000,000.00
Capital Paid	16,000,000.00	16,000,000.00	16,000,000.00
Retained Earning Unappropriated [Deficit]	[40,809,568.31]	[40,556,803.76]	[40,725,062.79]
Total Shareholders' Equity	[27,809,568.31]	[24,556,803.76]	[24,725,062.79]
Total Liabilities & Shareholders' Equity	7,218,157.23	8,126,845.87	8,904,907.70

PROFIT & LOSS ACCOUNT

Revenue	2012	2011	2010
Sales Income	4,351,417.66	9,070,507.85	7,370,882.47
Total Revenues	4,351,417.66	9,070,507.85	7,370,882.47
Expenses
Cost of Goods Sold & Service	3,571,070.50	7,443,258.74	6,048,699.86
Selling Expenses	95,408.90	104,114.70	103,343.35
Administrative Expenses	894,200.15	1,254,116.78	1,115,009.10
Total Expenses	4,560,679.55	8,801,490.22	7,267,052.31
Profit / [Loss] before Financial Cost & Income Tax	[209,261.89]	269,017.63	103,830.16
Financial Cost	-	-	[4,570.33]
Income Tax	[43,502.66]	[100,758.60]	[77,116.21]
Net Profit / [Loss]	[252,764.55]	168,259.03	22,143.62

FINANCIAL ANALYSIS

ITEM	UNIT	2012	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	242.67	38.81	56.22
QUICK RATIO	TIMES	10.57	1.80	4.08
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	8.88	9.07	4.61
TOTAL ASSETS TURNOVER	TIMES	0.60	1.12	0.83
INVENTORY CONVERSION PERIOD	DAYS	657.72	333.23	407.76
INVENTORY TURNOVER	TIMES	0.55	1.10	0.90
RECEIVABLES CONVERSION PERIOD	DAYS	-	-	-
RECEIVABLES TURNOVER	TIMES	-	-	-
PAYABLES CONVERSION PERIOD	DAYS	-	-	-
CASH CONVERSION CYCLE	DAYS	657.72	333.23	407.76
PROFITABILITY RATIO
COST OF GOODS SOLD	%	82.07	82.06	82.06
SELLING & ADMINISTRATION	%	22.74	14.97	16.53
INTEREST	%	-	-	0.06
GROSS PROFIT MARGIN	%	17.93	17.94	17.94
NET PROFIT MARGIN BEFORE EX. ITEM	%	(4.81)	2.97	1.41
NET PROFIT MARGIN	%	(5.81)	1.86	0.30
RETURN ON EQUITY	%	-	-	-
RETURN ON ASSET	%	(3.50)	2.07	0.25
EARNING PER SHARE	BAHT	(1.58)	1.05	0.14
LEVERAGE RATIO
DEBT RATIO	TIMES	4.44	4.02	3.78
DEBT TO EQUITY RATIO	TIMES	(1.15)	(1.33)	(1.36)
TIME INTEREST EARNED	TIMES	-	-	22.72
ANNUAL GROWTH
SALES GROWTH	%	(52.03)	23.06
OPERATING PROFIT	%	(177.79)	159.09
NET PROFIT	%	(250.22)	659.85
FIXED ASSETS	%	(51.00)	(37.43)
TOTAL ASSETS	%	(11.18)	(8.74)

ANNUAL GROWTH : RISKY

An annual sales growth is -52.03%. Turnover has decreased from THB 9,070,507.85 in 2011 to THB 4,351,417.66 in 2012. While net profit has decreased from THB 168,259.03 in 2011 to THB -252,764.55 in 2012. And total assets has decreased from THB 8,126,845.87 in 2011 to THB 7,218,157.23 in 2012.

PROFITABILITY : ACCEPTABLE

PROFITABILITY RATIO

Gross Profit Margin	17.93	Impressive	Industrial Average	0.42
Net Profit Margin	(5.81)	Deteriorated	Industrial Average	3.94
Return on Assets	(3.50)	Deteriorated	Industrial Average	4.19
Return on Equity	-		Industrial Average	165.43

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. Gross Profit Margin is 17.93%. 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 -5.81%. When compared with the industry average, the ratio of the company was lower.

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. When compared with the industry average, it was lower, the company's figure is -3.5%.

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	242.67	Impressive	Industrial Average	1.72
Quick Ratio	10.57
Cash Conversion Cycle	657.72

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 242.67 times in 2012, increase from 38.81 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 10.57 times in 2012, increase from 1.8 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 658 days.

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

Current Ratio Uptrend

LEVERAGE : SATISFACTORY

LEVERAGE RATIO

Debt Ratio	4.44	Risky	Industrial Average	0.89
Debt to Equity Ratio	(1.15)	Impressive	Industrial Average	7.75
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 4.44 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 : ACCEPTABLE

ACTIVITY RATIO

Fixed Assets Turnover	8.88	Impressive	Industrial Average	-
Total Assets Turnover	0.60	Acceptable	Industrial Average	1.06
Inventory Conversion Period	657.72
Inventory Turnover	0.55	Deteriorated	Industrial Average	2.82
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	5.40
Payables Conversion Period	-

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 333 days at the end of 2011 to 658 days at the end of 2012. This represents a negative trend. And Inventory turnover has decreased from 1.1 times in year 2011 to 0.55 times in year 2012.

The company's Total Asset Turnover is calculated as 0.6 times and 1.12 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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.54
UK Pound	1	Rs.101.08
Euro	1	Rs.83.38

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%)

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