MIRA INFORM REPORT

Report No. :	317431
Report Date :	21.04.2015

IDENTIFICATION DETAILS

Name :	SCG ICO POLYMERS CO., LTD.
Registered Office :	1 Siam Cement Road, Bangsue, Bangkok 10800
Country :	Thailand
Financials (as on) :	31.12.2013
Date of Incorporation :	08.11.2013
Com. Reg. No.:	0105556179530
Legal Form :	Private Limited Company
Line of Business :	The subject is engaged in manufacturing and distributing of rotational molding compound using MDPE as base material which is used for production of bulky articles such as water tanks, kayak boats, furniture and others.
No of Employees :	90

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 :	Recently Commenced Operation
Payment Behaviour :	Unknown
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 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Thailand	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	D

THAILAND ECONOMIC OVERVIEW

With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand has had a strong economy due in part to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand 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 both 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. Government approved flood mitigation projects, worth $11.7 billion, were started in 2012 to prevent a repeat. Thai growth slowed in 2013 and has remained low since, as the country faced political uncertainty and a coup in May 2014. The interim government is implementing a special $11 billion short-term stimulus package and has approved a budget of more than $80 billion to aid an economic rebound.

Source : CIA

Company name

SCG ICO POLYMERS CO., LTD.

SUMMARY

BUSINESS ADDRESS : 1 SIAM CEMENT ROAD, BANGSUE,

BANGKOK 10800, THAILAND

TELEPHONE : [66] 2586-3333, 2586-5249

FAX : [66] 2586-5249

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2013

REGISTRATION NO. : 0105556179530

TAX ID NO. : 3036185437

CAPITAL REGISTERED : BHT. 379,970,000

CAPITAL PAID-UP : BHT. 379,970,000

SHAREHOLDER’S PROPORTION : THAI : 87.00%

MALAYSIAN : 13.00%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. YUTTANA JIAMTRAGAN, THAI

MANAGING DIRECTOR

NO. OF STAFF : 90

LINES OF BUSINESS : ROTATIONAL MOLDING COMPOUND

MANUFACTURER AND DISTRIBUTOR

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : -

MANAGEMENT STANDARD : -

HISTORY

The subject was established on November 8, 2013 as a private limited company under the registered name SCG ICO POLYMERS CO., LTD., by Thai and Malaysian groups, with the business objective to manufacture and distribute rotational molding compound for plastic products industry. It currently employs approximately 90 staff.

The subject is also a subsidiary of SCG Chemicals Co., Ltd., which is a member of SCG Group of companies.

The subject’s registered address is 1 Siam Cement Road, Bangsue, Bangkok 10800, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Cholanat Yanaranop	[x]	Thai	56
Mr. Yuttana Jiamtragan	[x]	Thai	52
Mr. Somchai Wangwattanapanich	[x]	Thai	57
Mrs. Panchompoo Vipattipumiprathet	[x]	Thai	50
Mr. Direk Roy Bristow		New Zealander	55

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Yuttana Jiamtragan is the Managing Director.

He is Thai nationality with the age of 52 years old.

Mr. Apichai Charoensuk is the GM./Factory Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing and distributing of rotational molding compound using MDPE as base material which is used for production of bulky articles such as water tanks, kayak boats, furniture and others. The production has been started in the late of 2014.

PURCHASE

Raw materials are purchased from suppliers both domestic and overseas in Malaysia and U.S.A.

MAJOR SUPPLIER

Schulman Plastics [Malaysia] Sdn. Bhd. : Malaysia

SALES

100% of the products is sold locally by wholesale to manufacturers.

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 credits term of 30-60 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 90 staff.

LOCATION DETAILS

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

Factory and warehouse are located at 10 I-1 Road, Mabtaphut Industrial Estate,

T. Mabtaphut, A. Muang, Rayong 21000. Tel. : [66] 38 683-393-7, Fax. : [66] 38 683-398.

COMMENT

The subject was established in 2013 and started its production in 2014. Subject disclosed no income from sales in the year 2013.

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. 100,000,000 on December 20, 2013

Bht. 379,970,000 on January 5, 2015

The latest registered capital was increased to Bht. 379,970,000 divided into 3,799,700 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at January 5, 2015]

NAME	HOLDING	%
SCG Chemicals Co., Ltd. Nationality: Thai Address : 1 Siam Cement Road, Bangsue, Bangkok	3,305,737	87.00
Schulman Plastics [Malaysia] Sdn. Bhd. Nationality: Malaysian Address : Johor, Malaysia	493,961	13.00
Mr. Yuttana Jiamtragan Nationality: Thai Address : 337/31 Nonthaburi Road, T. Thasai, A. Muang, Nonthaburi	2	-

Total Shareholders : 3

Share Structure [as at January 5, 2015]

Nationality	Shareholders	No. of Share	% Shares
Thai	2	3,305,739	87.00
Foreign - Malaysian	1	493,961	13.00
Total	3	3,799,700	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Ms. Sureerat Tongarunsaeng No. 4409

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2013 was :

ASSETS

Current Assets	2013
Cash and Cash Equivalents	25,749,900
Total Current Assets	25,749,900
Total Assets	25,749,900

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2013
Payable Fees	25,000
Total Current Liabilities	25,000
Total Liabilities	25,000
Shareholders' Equity
Share capital : Baht 100 value Authorized & issued share capital 100,000 shares	100,000,000
Capital Paid	25,750,000
Retained Earning - Unappropriated [Deficit]	[25,100]
Total Shareholders' Equity	25,724,900
Total Liabilities & Shareholders' Equity	25,749,900

PROFIT & LOSS ACCOUNT

Revenue	Nov. 8, 2013 - Dec. 31, 2013
Total Revenues	-
Expenses
Professional Fees	25,000
Financial Cost	100
Total Expenses	25,100
Net Profit / [Loss]	[25,100]

FINANCIAL ANALYSIS

ITEM	UNIT	2013
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1,030.00
QUICK RATIO	TIMES	1,030.00
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	-
TOTAL ASSETS TURNOVER	TIMES	-
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	%	-
SELLING & ADMINISTRATION	%	-
INTEREST	%	-
GROSS PROFIT MARGIN	%	-
NET PROFIT MARGIN BEFORE EX. ITEM	%	-
NET PROFIT MARGIN	%	-
RETURN ON EQUITY	%	(0.10)
RETURN ON ASSET	%	(0.10)
EARNING PER SHARE	BAHT	(0.10)
LEVERAGE RATIO
DEBT RATIO	TIMES	0.00
DEBT TO EQUITY RATIO	TIMES	0.00
TIME INTEREST EARNED	TIMES	(251.00)

PROFITABILITY : RISKY

PROFITABILITY RATIO

Gross Profit Margin	-		Industrial Average	28.42
Net Profit Margin	-		Industrial Average	2.27
Return on Assets	(0.10)	Deteriorated	Industrial Average	2.17
Return on Equity	(0.10)	Deteriorated	Industrial Average	4.25

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 -0.1%.

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. When compared with the industry average, it was lower, the company's figure is -0.1%.

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	1,030.00	Impressive	Industrial Average	1.24
Quick Ratio	1,030.00
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 1030 times in 2013, 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 1030 times in 2013, 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 : SATISFACTORY

LEVERAGE RATIO

Debt Ratio	0.00	Impressive	Industrial Average	0.54
Debt to Equity Ratio	0.00	Impressive	Industrial Average	1.18
Times Interest Earned	(251.00)	Risky	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.

Times Interest Earned measuring a company's ability to meet its debt obligations. Ratio is -251 lower than 1, so the company is not generating enough cash from EBIT to meet its interest obligations.

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 0 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 : RISKY

ACTIVITY RATIO

Fixed Assets Turnover	-	Industrial Average	-
Total Assets Turnover	-	Industrial Average	0.95
Inventory Conversion Period	-
Inventory Turnover	-	Industrial Average	6.09
Receivables Conversion Period	-
Receivables Turnover	-	Industrial Average	3.92
Payables Conversion Period	-

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

Key Areas	Score	Weight	Weighted Score
LIQUIDITY RATIO	2.67	25.00	66.75
ACTIVITY RATIO	-	20.00	-
PROFITABILITY RATIO	-	25.00	-
LEVERAGE RATIO	2.67	10.00	26.70
ANNUAL GROWTH	-	20.00	-
Total Weight (excluding - - Score)		100.00
			93.45

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.56
UK Pound	1	Rs. 93.56
Euro	1	Rs. 67.49

INFORMATION DETAILS

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