MIRA INFORM REPORT

Report Date :

01.10.2014

IDENTIFICATION DETAILS

Name :	THAI SEAFOODPROCESSING CO., LTD.
Registered Office :	2/158 Moo 8, T. Krathumlom, A. Sampran, Nakhon Pathom 73220
Country :	Thailand
Financials (as on) :	31.12.2013
Date of Incorporation :	10.10.2012
Com. Reg. No.:	0735555004633
Legal Form :	Private Limited Company
Line of Business :	Importer, Distributor and Exporter of Fresh And Frozen Seafood
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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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. 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

THAI SEAFOODPROCESSING CO., LTD.

SUMMARY

BUSINESS ADDRESS : 2/158 MOO 8, T. KRATHUMLOM, A. SAMPRAN,

NAKHON PATHOM 73220, THAILAND

TELEPHONE : [66] 2404-2269, 081 850-9007

FAX : [66] 2404-2268

E-MAIL ADDRESS : info@thaiseafood.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2012

REGISTRATION NO. : 0735555004633

TAX ID NO. : 3035377970

CAPITAL REGISTERED : BHT. 5,000,000

CAPITAL PAID-UP : BHT. 5,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. AKHTAR JAMIL AWAN, THAI

MANAGING DIRECTOR

NO. OF STAFF : 10

LINES OF BUSINESS : FRESH AND FROZEN SEAFOOD

IMPORTER, DISTRIBUTOR AND EXPORTER

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : FAIR WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH GOOD PERFORMANCE

HISTORY

The subject was established on October 10, 2012 as a private limited company under the registered name THAI SEAFOOD PROCESSING CO., LTD., by Thai groups, with the objective to engage in importing, distributing, exporting and processing of fresh and frozen seafood and fresh water fishes. The products have been supplied to customers under GMP and HACCP control systems. It employs 10 staff.

The subject’s registered address is 2/158 Moo 8, T. Krathumlom, A. Sampran, Nakhon

Pathom 73220, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Akhtar Jamil Awan	Thai	46

AUTHORIZED PERSON

The above director signs on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Akhtar Jamil Awan is the Managing Director.

He is Thai nationality with the age of 46 years old.

BUSINESS OPERATIONS

The subject is engaged in importing, distributing, exporting and processing of fresh seafood, frozen seafood, and fresh water products such as Indian Mackerel, Leather Jacket, Reef Cod, Reef Cod Red Belly, Ribbon Fish, Sardine, Seer Fish, Loligo squid, White Snapper, Yellow Fin Tuna, Jelly Fish, Top Shell, Razor Clam, Mud Crabs, Blue Swimming Crabs and etc.

PURCHASE

The products are purchased through global sourcing from over 20 coastal regions both in domestic and overseas, in India, Japan and Indonesia.

SALES

The products are sold to local customers by wholesale and retail.

EXPORT

The products are also exported to Middle East, Japan and Hong Kong.

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

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

The subject was not disclosed its banker’s name.

EMPLOYMENT

The subject currently employs 10 staff.

LOCATION DETAILS

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

Branch and cold storage are located at 55/237 Moo 6, Suchai Road, T. Tasai, A. Muang, Samutsakorn 74000. Tel. : [66] 34 406-285, Fax. : [66] 34 406-286.

COMMENT

The subject is responsible to provide good quality seafood that is safe to the customer. The GMP & HACCP systems have formed the core control system, which is implemented and monitored by qualified professionals.

Subject reported moderate sales in 2013, meanwhile its current business outlook is promising.

FINANCIAL INFORMATION

The capital was registered at Bht. 5,000,000 divided into 50,000 shares of Bht. 100

each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 30, 2014]

NAME	HOLDING	%
Mr. Akhtar Jamil Awan Nationality: Thai Address : 2/158 Moo 8, T. Krathumlom, A. Sampran, Nakhon Pathom	20,000	40.00
Mr. Fahad Awan Nationality: Thai Address : 2/158 Moo 8, T. Krathumlom, A. Sampran, Nakhon Pathom	10,000	20.00
Ms. Iresha Awan Nationality: Thai Address : 2/158 Moo 8, T. Krathumlom, A. Sampran, Nakhon Pathom	10,000	20.00
Ms. Sara Awan Nationality: Thai Address : 2/158 Moo 8, T. Krathumlom, A. Sampran, Nakhon Pathom	10,000	20.00

Total Shareholders : 4

Share Structure [as at April 30, 2014]

Nationality	Shareholders	No. of Share	% Shares
Thai	4	50,000	100.00
Foreign	-	-	-
Total	4	50,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.:

Mr. Vinai Niyamosot No. 2492

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2013 & 2012 were :

ASSETS

Current Assets	2013	2012
Cash and Cash Equivalents	652,907.58	40,435.33
Trade Account & Other Receivable	-	2,100,977.92
Inventories	11,473,808.00	1,766,718.00
Other Current Assets	289,199.88	59,252.49
Total Current Assets	12,415,915.46	3,967,383.74
Long-term Loan	-	3,675,500.00
Fixed Assets	2,435,295.13	6,243.56
Other Non-current Assets	90,000.00	54,000.00
Total Assets	14,941,210.59	7,703,127.30

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2013	2012
Trade Account & Other Payable	174,508.50	2,409,464.61
Current Portion of Liabilities	454,932.00	-
Accrued Income Tax	54,846.67	19,731.93
Other Current Liabilities	12,975.76	12,573.80
Total Current Liabilities	697,262.93	2,441,770.34
Long-term Loans	8,256,917.00	-
Total Liabilities	8,954,179.93	2,441,770.34
Shareholders' Equity
Share capital : Baht 100 value authorized, issued and fully paid share capital 50,000 shares	5,000,000.00	5,000,000.00
Capital Paid	5,000,000.00	5,000,000.00
Retained Earning -Unappropriated [Deficit]	987,030.66	261,356.96
Total Shareholders' Equity	5,987,030.66	5,261,356.96
Total Liabilities & Shareholders' Equity	14,941,210.59	7,703,127.30

PROFIT & LOSS ACCOUNT

Revenue	2013	2012
Sales	28,421,263.29	2,849,152.26
Other Income	593,975.01	169,998.61
Total Revenues	29,015,238.30	3,019,150.87
Expenses
Cost of Goods Sold	23,479,029.62	2,440,495.43
Selling Expenses	3,817,185.98	210,655.00
Administrative Expenses	877,083.56	86,911.55
Total Expenses	28,173,299.16	2,738,061.98
Profit / [Loss] before Financial Cost & Income Tax	841,939.14	281,088.89
Financial Cost	[16,418.77]	-
Profit / [Loss] before Income Tax	825,520.37	281,088.89
Income Tax	[99,846.67]	[19,731.93]
Net Profit / [Loss]	725,673.70	261,356.96

FINANCIAL ANALYSIS

ITEM	UNIT	2013	2012
LIQUIDITY RATIO
CURRENT RATIO	TIMES	17.81	1.62
QUICK RATIO	TIMES	0.94	0.88
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	11.67	456.33
TOTAL ASSETS TURNOVER	TIMES	1.90	0.37
INVENTORY CONVERSION PERIOD	DAYS	178.37	264.23
INVENTORY TURNOVER	TIMES	2.05	1.38
RECEIVABLES CONVERSION PERIOD	DAYS	-	269.15
RECEIVABLES TURNOVER	TIMES	-	1.36
PAYABLES CONVERSION PERIOD	DAYS	2.71	360.36
CASH CONVERSION CYCLE	DAYS	175.66	173.02
PROFITABILITY RATIO
COST OF GOODS SOLD	%	82.61	85.66
SELLING & ADMINISTRATION	%	16.52	10.44
INTEREST	%	0.06	-
GROSS PROFIT MARGIN	%	19.48	20.31
NET PROFIT MARGIN BEFORE EX. ITEM	%	2.96	9.87
NET PROFIT MARGIN	%	2.55	9.17
RETURN ON EQUITY	%	12.12	4.97
RETURN ON ASSET	%	4.86	3.39
EARNING PER SHARE	BAHT	14.51	5.23
LEVERAGE RATIO
DEBT RATIO	TIMES	0.60	0.32
DEBT TO EQUITY RATIO	TIMES	1.50	0.46
TIME INTEREST EARNED	TIMES	51.28	-
ANNUAL GROWTH
SALES GROWTH	%	897.53	-
OPERATING PROFIT	%	199.53	-
NET PROFIT	%	177.66	-
FIXED ASSETS	%	38,904.91	-
TOTAL ASSETS	%	93.96	-

PROFITABILITY : EXCELLENT

PROFITABILITY RATIO

Gross Profit Margin	19.48	Impressive	Industrial Average	6.49
Net Profit Margin	2.55	Impressive	Industrial Average	(0.58)
Return on Assets	4.86	Impressive	Industrial Average	(1.37)
Return on Equity	12.12	Impressive	Industrial Average	(5.87)

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 19.48%. 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. Net Profit Margin ratio is 2.55%, 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 4.86%, 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 12.12%, 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	17.81	Impressive	Industrial Average	1.04
Quick Ratio	0.94
Cash Conversion Cycle	175.66

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 17.81 times in 2013, increased from 1.62 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 0.94 times in 2013, increased from 0.88 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 176 days.

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

Current Ratio Uptrend

LEVERAGE : IMPRESSIVE

LEVERAGE RATIO

Debt Ratio	0.60	Impressive	Industrial Average	0.74
Debt to Equity Ratio	1.50	Satisfactory	Industrial Average	2.83
Times Interest Earned	51.28	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 higher the percentage means that the company is using less equity and has stronger leverage position.

Times Interest Earned measuring a company's ability to meet its debt obligations. Ratio is 51.28 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 0.6 greater than 0.5, most of the company's assets are financed through debt.

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

Debt Ratio Downtrend

Times Interest Earned Stable

ACTIVITY : SATISFACTORY

ACTIVITY RATIO

Fixed Assets Turnover	11.67	Impressive	Industrial Average	-
Total Assets Turnover	1.90	Satisfactory	Industrial Average	2.36
Inventory Conversion Period	178.37
Inventory Turnover	2.05	Acceptable	Industrial Average	3.81
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	4.41
Payables Conversion Period	2.71

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 264 days at the end of 2012 to 178 days at the end of 2013. This represents a positive trend. And Inventory turnover has increased from 1.38 times in year 2012 to 2.05 times in year 2013.

The company's Total Asset Turnover is calculated as 1.9 times and 0.37 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 Downtrend

Inventory Turnover Downtrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.61
UK Pound	1	Rs.100.27
Euro	1	Rs.78.21

INFORMATION DETAILS

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%)

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.