MIRA INFORM REPORT

Report Date :

27.10.2014

IDENTIFICATION DETAILS

Name :	TU TAWEE SEAFOOD CO., LTD.
Registered Office :	43/183 Moo 4, T. Kokkarm, A. Muang, Samutsakorn 74000
Country :	Thailand
Financials (as on) :	31.12.2013
Date of Incorporation :	03.08.2005
Com. Reg. No.:	0745548002833
Legal Form :	Private Limited Company
Line of Business :	Subject is engaged in importing and distributing of frozen seafood, such as Fishes, Squid, Indian Mackerel, Pacific Mackerel, Jelly Fish and etc., as well as exporting of frozen Thai seafood, such as fish, shrimp, crab, sea shell.
No of Employees :	5

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 :	Slow but correct
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)

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

TU TAWEE SEAFOOD CO., LTD.

SUMMARY

BUSINESS ADDRESS : 43/183 MOO 4, T. KOKKARM, A. MUANG,

SAMUTSAKORN 74000, THAILAND

TELEPHONE : [66] 34 841-051

FAX : [66] 34 841-052

E-MAIL ADDRESS : tutaweeseafood999@hotmail.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2005

REGISTRATION NO. : 0745548002833 [Former: 074354802836]

TAX ID NO. : 3031918832

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. JARAT KOSITKUNAKORN, THAI

MANAGING DIRECTOR

NO. OF STAFF : 5

LINES OF BUSINESS : 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 FAIR PERFORMANCE

HISTORY

The subject was established on August 3, 2005 as a private limited company under the name style TU TAWEE SEAFOOD CO., LTD., by Thai groups, in order to distribute various kinds of frozen seafood for domestic and international markets. It currently employs 5 staff.

The subject’s registered address is 43/183 Moo 4, T. Kokkarm, A. Muang, Samutsakorn 74000, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Mr. Jarat Kositkunakorn

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Jarat Kositkunakorn is the Managing Director.

He is Thai nationality with the age of 48 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing of frozen seafood, such as Fishes, Squid, Indian Mackerel, Pacific Mackerel, Jelly Fish and etc., as well as exporting of frozen Thai seafood, such as fish, shrimp, crab, sea shell to overseas markets.

PURCHASE

The products are purchased from local suppliers and fishermen.

IMPORT

The products are also imported from India, Pakistan, Republic of China, Myanmar and European countries.

SALES [LOCAL]

The products are sold locally by wholesale to traders and end-users.

EXPORT

The Thai products are exported to Hong Kong, Taiwan, Singapore, Japan and 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 to 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

Kasikornbank Public Co., Ltd.

[Sethakij Branch : 90/264 Moo 7, Sethakij 1 Rd., Thasai, Muang, Samutsakorn]

EMPLOYMENT

The subject currently employs 5 staff.

LOCATION DETAILS

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

COMMENT

Seafood exports will probably drop by 20% this year as the decline continues for the third consecutive year. The subject forecasted as the value of seafood exports in the first five months of this year at 22% decline year-on-year due to higher cost of raw materials and labor.

The fall happened in all main markets such as the United States, Japan, Europe and Southeast Asia. However, exports increased in some markets - Germany, Hong Kong and South Korea.

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, 2014]

NAME	HOLDING	%
Mr. Jarat Kositkunakorn Nationality: Thai Address : 43/183 Moo 4, Kokkarm, Muang, Samutsakorn	5,000	50.00
Master Puntakarn Kositkunakorn Nationality: Thai Address : 43/183 Moo 4, Kokkarm, Muang, Samutsakorn	2,000	20.00
Master Kornkarn Kositkunakorn Nationality: Thai Address : 43/183 Moo 4, Kokkarm, Muang, Samutsakorn	2,000	20.00
Mr. Chavengsak Prasertkunakorn Nationality: Thai Address : 43/342 Moo 4, Kokkarm, Muang, Samutsakorn	1,000	10.00

Total Shareholders : 4

Share Structure [as at April 30, 2014]

Nationality	Shareholders	No. of Share	% Shares
Thai	4	10,000	100.00
Foreign	-	-	-
Total	4	10,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO :

Ms. Kanittha Huangsaithong No. 5470

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2013	2012	2011
Cash and Cash Equivalents	122,244.45	127,885.82	149,272.18
Deposit	-	-	2,020,952.08
Other Current Assets	176,100.00	58,966.66	6,833.00
Total Current Assets	298,344.45	186,852.48	2,177,057.26
Loan to Director	4,540,000.00	4,490,000.00	2,050,000.00
Total Assets	4,838,344.45	4,676,852.48	4,227,057.26

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2013	2012	2011
Accrued Income Tax	20,250.64	88,559.04	28,212.66
Other Current Liabilities	34,470.00	40,470.00	64,940.00
Total Current Liabilities	54,720.64	129,029.04	93,152.66
Total Liabilities	54,720.64	129,029.04	93,152.66
Shareholders' Equity
Share capital : Baht 100 par value Authorized & issued share capital 10,000 shares	1,000,000.00	1,000,000.00	1,000,000.00
Capital Paid	1,000,000.00	1,000,000.00	1,000,000.00
Retained Earning - Unappropriated [Deficit]	3,783,623.81	3,547,823.44	3,133,904.60
Total Shareholders' Equity	4,783,623.81	4,547,823.44	4,133,904.60
Total Liabilities & Shareholders' Equity	4,838,344.45	4,676,852.48	4,227,057.26

PROFIT & LOSS ACCOUNT

Revenue	2013	2012	2011
Sales	28,712,670.00	52,845,390.00	64,521,340.00
Other Income	264,972.70	150,287.33	705,289.79
Total Revenues	28,977,642.70	52,995,677.33	65,226,629.79
Expenses
Cost of Goods Sold	28,143,788.18	51,816,396.00	63,864,424.44
Administrative Expenses	534,463.51	640,693.45	767,817.58
Total Expenses	28,678,251.69	52,457,089.45	64,632,242.02
Profit / [Loss] before Income Tax	299,391.01	538,587.88	594,387.77
Income Tax	[63,590.64]	[124,669.04]	[40,263.36]
Net Profit / [Loss]	235,800.37	413,918.84	554,124.41

FINANCIAL ANALYSIS

ITEM	UNIT	2013	2012	2011
LIQUIDITY RATIO
CURRENT RATIO	TIMES	5.45	1.45	23.37
QUICK RATIO	TIMES	2.23	0.99	23.30
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	-	-	-
TOTAL ASSETS TURNOVER	TIMES	5.93	11.30	15.26
INVENTORY CONVERSION PERIOD	DAYS	-	-	-
INVENTORY TURNOVER	TIMES	-	-	-
RECEIVABLES CONVERSION PERIOD	DAYS	-	-	-
RECEIVABLES TURNOVER	TIMES	-	-	-
PAYABLES CONVERSION PERIOD	DAYS	-	-	-
CASH CONVERSION CYCLE	DAYS	-	-	-
PROFITABILITY RATIO
COST OF GOODS SOLD	%	98.02	98.05	98.98
SELLING & ADMINISTRATION	%	1.86	1.21	1.19
INTEREST	%	-	-	-
GROSS PROFIT MARGIN	%	2.90	2.23	2.11
NET PROFIT MARGIN BEFORE EX. ITEM	%	1.04	1.02	0.92
NET PROFIT MARGIN	%	0.82	0.78	0.86
RETURN ON EQUITY	%	4.93	9.10	13.40
RETURN ON ASSET	%	4.87	8.85	13.11
EARNING PER SHARE	BAHT	23.58	41.39	55.41
LEVERAGE RATIO
DEBT RATIO	TIMES	0.01	0.03	0.02
DEBT TO EQUITY RATIO	TIMES	0.01	0.03	0.02
TIME INTEREST EARNED	TIMES	-	-	-
ANNUAL GROWTH
SALES GROWTH	%	(45.67)	(18.10)
OPERATING PROFIT	%	(44.41)	(9.39)
NET PROFIT	%	(43.03)	(25.30)
FIXED ASSETS	%	-	-
TOTAL ASSETS	%	3.45	10.64

ANNUAL GROWTH : RISKY

An annual sales growth is -45.67%. Turnover has decreased from THB 52,845,390.00 in 2012 to THB 28,712,670.00 in 2013. While net profit has decreased from THB 413,918.84 in 2012 to THB 235,800.37 in 2013. And total assets has increased from THB 4,676,852.48 in 2012 to THB 4,838,344.45 in 2013.

PROFITABILITY : IMPRESSIVE

PROFITABILITY RATIO

Gross Profit Margin	2.90	Deteriorated	Industrial Average	52.62
Net Profit Margin	0.82	Impressive	Industrial Average	(0.29)
Return on Assets	4.87	Impressive	Industrial Average	(1.16)
Return on Equity	4.93	Impressive	Industrial Average	(4.97)

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 2.9%. 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 0.82%, 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 4.87%, 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 4.93%, 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 : SATISFACTORY

LIQUIDITY RATIO

Current Ratio	5.45	Impressive	Industrial Average	1.17
Quick Ratio	2.23
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 5.45 times in 2013, increased from 1.45 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 2.23 times in 2013, increased from 0.99 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	0.01	Impressive	Industrial Average	0.83
Debt to Equity Ratio	0.01	Impressive	Industrial Average	4.90
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 0.01 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	5.93	Impressive	Industrial Average	4.06
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	9.29
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	5.10
Payables Conversion Period	-

The company's Total Asset Turnover is calculated as 5.93 times and 11.3 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 Downtrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.23
UK Pound	1	Rs.98.67
Euro	1	Rs.77.97

INFORMATION DETAILS

Analysis Done by :	DIV
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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