MIRA INFORM REPORT

Report No. :	353611
Report Date :	15.12.2015

IDENTIFICATION DETAILS

Name :	INTERHIDES PUBLIC COMPANY LIMITED [IHL]
Registered Office :	678 Moo 2, Soi T.J.C., Sukhumvit Road, Bangpoomai, Muang, Samutprakarn 10280
Country :	Thailand
Financials (as on) :	31.12.2014
Date of Incorporation :	25.09.1992
Com. Reg. No.:	0107548000595
Legal Form :	Private Limited Company
Line of Business :	Subject is engaged in manufacturing and distributing of leather covering for car seat and other related products, including finished leather for other products, such as steering wheel and gear knob, cut part, and trim covers for covering car seats. The subject also provides spray and tanning services for the finishing process, as well as by-products including lime split and scrap leather. In addition, the subject offers bleaching, dyeing and finishing services to serve producers of car seat leather and interior leather parts for car accessories
No. of Employee :	1,102

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Thailand	B1	A2

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, and generally pro-investment policies Thailand has historically had a strong economy due in part to competitive industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. The economy experienced slow growth and declining exports in 2014, in part due to domestic political turmoil and sluggish global demand. With full employment, Thailand attracts an estimated 2-4 million migrant workers from neighboring countries, and faces labor shortages. Following the May 2014 coup d'etat, tourism decreased 6-7% but is beginning to recover. The household debt to GDP ratio is over 80%. 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 baht has remained stable.

Source : CIA

Company name

INTERHIDES PUBLIC COMPANY LIMITED [IHL]

SUMMARY

BUSINESS ADDRESS : 678 MOO 2, SOI T.J.C., SUKHUMVIT ROAD,

BANGPOOMAI, MUANG,

SAMUTPRAKARN 10280, THAILAND

TELEPHONE : [66] 2323-2754-5, 2709-5512-4,

2709-6288-9, 2710-6244-5

FAX : [66] 2709-5516, 2323-2749

E-MAIL ADDRESS : alex@interhides.com

sales@interhides.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1992

REGISTRATION NO. : 0107548000595 [Former : 0115535007152]

TAX ID NO. : 3271045169

CAPITAL REGISTERED : BHT. 419,999,076

CAPITAL PAID-UP : BHT. 419,998,782

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PUBLIC LIMITED COMPANY

EXECUTIVE : MR. ONGART THUMRONGSAKUNVONG, THAI

MANAGING DIRECTOR

NO. OF STAFF : 1,102

LINES OF BUSINESS : FINISHED LEATHER AND OTHER RELATED

PRODUCTS

MANUFACTURER, 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 September 25, 1992, originally as a private limited company under the registered name “Inter-Hide Leather Co., Ltd.,” by Thai groups, with the business objective to provide made-to-order of finished leather covering auto-seat and other related products, with BOI promoted to both domestic and overseas markets.

On August 24, 2005, the subject registered for a conversion of its status to a public limited company, named INTERHIDES PUBLIC COMPANY LIMITED. On December 22, 2005, it was listed on the Stock Exchange of Thailand [SET] under symbol name “IHL”. It currently employs 1,102 staff.

It achieved the international standard ISO/TS 16949: 2002 certificate by TUV Rheinland Group of Germany.

The subject’s registered address is 678 Moo 2, Soi T.J.C., Sukhumvit Rd., Bangpoomai, Muang, Samutprakarn 10280, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Thira Wipuchanin		Thai	66
Mr. Ongart Thumrongsakunvong	[x]	Thai	57
Mr. Chor Nun Petpaisit		Thai	63
Mr. Somyot Akapaiboon		Thai	65
Mr. Thaksa Busayapoka		Thai	65
Mr. Ouychai Matitanaviroon		Thai	56
Ms. Chutima Busayapoka	[x]	Thai	54
Mr. Niti Nerngchamnong		Thai	34
Mr. Somchart Limpanuphap		Thai	63

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Ongart Thumrongsakunvong is the Managing Director.

He is Thai nationality with the age of 57 years old.

Ms. Chutima Busayapoka is the Deputy Managing Director [Operation]/Operation Department, General Manager/Marketing Department, General Manager/Quality Assurance Department, General Manager/Deputy Managing Director [Administration], General Manager/Finance and Account Department.

She is Thai nationality with the age of 54 years old.

BUSINESS OPERATIONS

The subject is engaged in manufacturing and distributing of leather covering for car seat and other related products, including finished leather for other products, such as steering wheel and gear knob, cut part, and trim covers for covering car seats. The subject also provides spray and tanning services for the finishing process, as well as by-products including lime split and scrap leather. In addition, the subject offers bleaching, dyeing and finishing services to serve producers of car seat leather and interior leather parts for car accessories, with customer’s design and requirement.

The products and services are divided into 7 major groups as follows:

· Cut part - tanned leather will be cut in shape of the tailor-made drawing as ordered by customer.

· Trim cover - for leather car seats and other leather accessories.

· Steering wheel and gear knobs - sewing service for steering wheel and gear knobs.

· Finished leather - for producing car seat and decoration accessories, such as steering wheel cover, gear knob cover and etc.

· Spray service - to provide paint spraying service according to customer’s order.

· Tannery service - suppliers provide all materials related to production in tannery process. The company will produce the tannery product according to customer’s order.

· Others [by-products] such as lime split from tanning process and scrap leather from cutting process.

PRODUCTION

Production Line Production Capacity [Real Capacity] [%]

Tanning Production 56,571,429 [29,036,000] square feet/annum 51

Dyed Production 60,104,348 [22,968,687] square feet/annum 38

Spraying Production 45,991,800 [33,458,273] square feet/annum 72

Cut Part [Auto Seat] 19,601,799 [15,701,003] square feet/annum 80

Sewing [Auto Seat] 118,200 [73,160] units/annum 62

Cut Part [Steering Wheel] 168,000 [100,340] units/annum 60

Sewing [Steering Wheel] 108,000 [27,906] units/annum 26

PURCHASE

64% of raw materials mainly raw hide [cow & buffalo] and tanning bleached/dyed chemicals are imported from U.S.A., Africa, Germany, Australia, Singapore, Japan, India, Brazil, Vietnam, Malaysia, Republic of China and France, while the remaining 36% is purchased from local suppliers.

SALES/SERVICES

The products have been served mainly to first Tier Original Equipment Manufacturers [Tier OEM], for car seat cover to well-known automobile assemblers both local and overseas, such as “NISSAN”, “TOYOTA”, “MITSUBISHI”, “MAZDA”, “FORD”, “ISUZU”, and “CHEVROLET”. 77% of the products is sold and serviced locally by wholesale to manufacturers and end-users, the remaining 23% is exported to the Philippines, Indonesia, Malaysia, Vietnam, India, Pakistan, Japan, Australia and U.S.A.

REVENUE STRUCTURE

[Company and subsidiary]

[unit : million baht]

	2014		2013
Product/Service/by	Amount	Amount	Amount	%
Cut Parts -by IHL	708	38	805	45
Trim Cover -by IHL	560	30	486	27
Steering Wheel and Gear Knobs -by ISC	39	2	44	2
Fabric Seat-by ISC	89	5	34	2
Finished Leather -by IHL	46	3	26	1
Crust and Wet Blue -by IHL	19	1	68	4
Finishing Service -by IHL	257	14	264	15
Other Products -by IHL	134	7	61	4
Total	1,852	100.00	1,788	100.00

RELATED AND AFFILIATED COMPANY

Inter Seat Cover Co., Ltd. [ISC]

Business Type : Manufacturer and distributor of leather covering for car seat

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

Bangkok Bank Public Co., Ltd.

The Siam Commercial Bank Public Co., Ltd.

Kasikornbank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 1,102 office staff and factory workers.

LOCATION DETAILS

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

Factories are located at the followings:

· Factory I : 192 Moo 2, Sukhumvit Rd., Bangpoomai, Muang, Samutprakarn 10280. [on 5,000 square meters of area]

· Factory II : 678 Soi T.J.C., Sukhumvit Rd., Bangpoomai, Muang, Samutprakarn 10280.

[on 8,000 square meters of area]

· Factory III & IV : 999 Soi T.J.C., Sukhumvit Rd., Bangpoomai, Muang, Samutprakarn 10280.

[on 11,200 and 16,000 square meters of area]

· Factory V : 55/5 Soi T.J.C., Sukhumvit Rd., Bangpoomai, Muang, Samutprakarn 10280.

[on 6,400 square meters of area]

· Factory VI : 1111 Moo 2, Soi Foknang, Sukhumvit Rd., Bangpoomai, Muang, Samutprakarn 10280. [on 27,000 square meters of area]

· Factory VII : 775 Bangpu Industrial Estate, Moo 2, Soi 4, Bangpoomai, Muang, Samutprakarn 10280. [on 41,000 square meters of area].

COMMENT

The subject was formed in 1992 as a manufacture of leather for car seat and accessories for automobile industry. The products are served to industrial sector especially automotive industry both local and overseas. The sluggish economy in the country in 2013 and continuing into 2014 has an impact the pace of related industrial growth. The Thai automotive sector in 2015 is expected to expand appropriately according to increasing exports.

FINANCIAL INFORMATION

The capital was registered at Bht. 300,000,000 divided into 60,000,000 shares of

Bht. 5 each.

The capital was increased and decreased later as follows:

Bht. 350,000,000 on May 8, 2012 [increased]

Bht. 349,999,230 on May 9, 2013 [decreased]

Bht. 419,999,076 on May 10, 2013 [increased]

The latest registered capital was increased to Bht. 419,999,076 divided into 419,999,076 shares of Bht. 1 each, with current capital paid up at Bht. 419,998,782.

THE SHAREHOLDERS LISTED WERE

[as at September 2, 2015] at Bht. 419,998,782 of capitalization

NAME	HOLDING	%
Mr. Ongart Thumrongsakunvong	136,661,898	32.54
Ms. Chutima Busayapoka	88,401,147	21.05
Mr. Sorat Vanichwarakij	28,638,859	6.82
Mr. Yothin Vanichwarakij	20,860,300	4.97
Mr. Wasin Thumrongsakunvong	20,000,000	4.76
Mr. Warit Thumrongsakunvong	20,000,000	4.76
Ms. Wanvisa Thumrongsakunvong	20,000,000	4.76
Modernform Group Public Company Limited	19,200,000	4.57
Mr. Surasak Laosaichua	8,049,100	1.92
Mr. Lamphun Pleanthiengtham	4,479,999	1.07
Mr. Pichai Vijakphan	3,048,000	0.73
Mr. Chaiyaporn Wongsaeng-anant	2,958,100	0.70
Others	47,701,379	11.35

Total Shareholders : 1,313

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Varaporn Prapasirikul No. 4579

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2014, 2013 & 2012 were:

ASSETS

Current Assets	2014	2013	2012
Cash and cash equivalents	3,650,493	39,682,496	14,011,438
Trade accounts and other receivable	309,380,118	220,761,438	262,569,782
Inventories	548,446,145	530,654,556	685,194,038
Advance payments for purchase of raw material and spare parts	3,199,769	13,494,183	1,251,549
Other Current Assets	5,771,918	3,640,283	3,354,826
Total Current Assets	870,448,443	808,232,956	966,381,633
Non-Current Assets
Restricted bank deposits	-	5,525,000	-
Investment in a subsidiary	19,999,800	19,999,800	19,999,800
Property, plant and equipment	1,082,566,283	1,176,582,953	1,195,091,718
Intangible assets	2,273,345	2,183,280	1,464,058
Deferred tax assets	25,150,245	25,031,444	25,963,254
Other non-current assets	2,534,004	2,518,004	2,857,074
Total Assets	2,002,972,120	2,040,073,437	2,211,757,537

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2014	2013	2012
Short-term loans from financial institution	185,393,936	337,679,706	574,989,009
Trust receipts	233,671,563	142,371,670	171,715,940
Trade accounts and other payable	140,918,579	90,388,801	167,371,924
Current portion of liabilities under financial lease agreements	18,462,754	21,393,815	12,472,472
Current portion of long-term loans	116,255,801	103,247,422	78,540,007
Income tax payable	3,248,884	6,987,718	18,104,577
Other Current Liabilities	7,382,395	3,094,201	4,758,063
Total Current Liabilities	705,333,912	705,163,333	1,027,951,992
Liabilities under hire purchase agreements, net of current portion	18,301,943	36,202,143	30,278,011
Long-term loans, net of current portion	169,745,000	228,606,515	161,868,932
Provision for long-term employee benefit	12,799,099	10,327,762	8,701,529
Provision for contingent loss on allegation	105,000,000	105,000,000	105,000,000
Total Liabilities	1,011,179,954	1,085,299,753	1,333,800,464
Shareholders' Equity
Share capital
Registered
419,999,076 ordinary shares of Baht 1 each	419,999,076	419,999,076	-
350,000,000 ordinary shares of Baht 1 each	-	-	350,000,000
Issued and fully paid
419,998,782 ordinary shares of Baht 1 each	419,998,782	419,998,782	-
349,999,230 ordinary shares of Baht 1 each ]	-	-	349,999,230
Share premium	211,584,110	211,584,110	211,584,110
Retained earning
Appropriated-statutory reserve	42,000,000	42,000,000	35,000,000
Unappropriated	318,209,274	281,190,792	281,373,733
Total Shareholders' Equity	991,792,166	954,773,684	877,957,073
Total Liabilities & Shareholders' Equity	2,002,972,120	2,040,073,437	2,211,757,537

PROFIT & LOSS ACCOUNT

Revenue	2014	2013	2012
Sales and services	1,453,329,010	1,564,502,946	1,609,939,189
Other Income
Gains on exchange	4,956,431	-	16,116,309
Dividend income	119,998,800	39,999,600	59,999,400
Others	27,530,757	33,605,914	27,272,779
Total Revenues	1,605,814,998	1,638,108,460	1,713,327,677
Expenses
Cost of sales and services	1,269,001,102	1,314,818,624	1,298,915,868
Selling expenses	18,303,882	17,132,788	19,369,347
Administrative expenses	92,699,589	92,243,303	84,095,967
Total Expenses	1,380,004,573	1,424,194,715	1,402,381,182
Profit before Finance Costs and Corporate Income Tax	225,810,425	213,913,745	310,946,495
Finance Costs	[34,678,228]	[40,476,609]	[48,109,480]
Profit before Corporate Income Tax	191,132,197	173,437,136	262,837,015
Corporate Income Tax	[5,790,327]	[25,509,572]	[44,552,398]
Net Income Loss] for the Year	185,341,870	147,927,564	218,284,617

BALANCE SHEET [BAHT]

The nine-month financial figures published for September 30, 2015 was : [Unaudited]

ASSETS

[Thousand Baht]

Current Assets	2015
Cash and cash equivalents	19,053
Trade accounts and other receivable	237,590
Inventories	749,914
Advance payments for purchase of raw material and spare parts	8,613
Other Current Assets	24,991
Total Current Assets	1,040,161
Non-Current Assets
Investment in a subsidiary	20,000
Property, plant and equipment	1,505,024
Intangible assets	2,566
Advance payments for purchase of machinery	12,950
Deferred tax assets	25,564
Other non-current assets	2,360
Total non-current assets	1,568,464
Total Assets	2,608,625

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

[Thousand Baht]

Current Liabilities	2015
Short-term loans from financial institution	428,457
Trust receipts	577,264
Trade accounts and other payable	157,451
Current portion of liabilities under financial lease agreements	10,619
Current portion of long-term loans	141,818
Other Current Liabilities	8,926
Total Current Liabilities	1,324,535
Liabilities under hire purchase agreements, net of current portion	12,549
Long-term loans, net of current portion	243,620
Provision for long-term employee benefit	13,633
Interest rate swap contract	3,290
Provision for contingent loss on allegation	105,000
Total Liabilities	1,702,627
Shareholders' Equity
Share capital
Registered
419,999,076 ordinary shares of Baht 1 each	419,999
Issued and fully paid
419,998,782 ordinary shares of Baht 1 each	419,999
Share premium	211,584
Retained earning
Appropriated-statutory reserve	42,000
Unappropriated	232,415
Total Shareholders' Equity	905,998
Total Liabilities & Shareholders' Equity	2,608,625

Note: The subject did not submit Profit and Loss Account as at September 30, 2015.

FINANCIAL ANALYSIS

ITEM	UNIT	2014	2013	2012
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.23	1.15	0.94
QUICK RATIO	TIMES	0.44	0.37	0.27
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	1.34	1.33	1.35
TOTAL ASSETS TURNOVER	TIMES	0.73	0.77	0.73
INVENTORY CONVERSION PERIOD	DAYS	158.67	151.06	192.89
INVENTORY TURNOVER	TIMES	2.30	2.42	1.89
RECEIVABLES CONVERSION PERIOD	DAYS	77.70	51.50	59.53
RECEIVABLES TURNOVER	TIMES	4.70	7.09	6.13
PAYABLES CONVERSION PERIOD	DAYS	40.53	25.09	47.03
CASH CONVERSION CYCLE	DAYS	195.84	177.47	205.39
PROFITABILITY RATIO
COST OF GOODS SOLD	%	87.32	84.04	80.68
SELLING & ADMINISTRATION	%	7.64	6.99	6.43
INTEREST	%	2.39	2.59	2.99
GROSS PROFIT MARGIN	%	23.18	20.66	25.74
NET PROFIT MARGIN BEFORE EX. ITEM	%	15.54	13.67	19.31
NET PROFIT MARGIN	%	12.75	9.46	13.56
RETURN ON EQUITY	%	18.69	15.49	24.86
RETURN ON ASSET	%	9.25	7.25	9.87
EARNING PER SHARE	BAHT	0.44	0.35	0.62
LEVERAGE RATIO
DEBT RATIO	TIMES	0.50	0.53	0.60
DEBT TO EQUITY RATIO	TIMES	1.02	1.14	1.52
TIME INTEREST EARNED	TIMES	6.51	5.28	6.46
ANNUAL GROWTH
SALES GROWTH	%	(7.11)	(2.82)
OPERATING PROFIT	%	5.56	(31.21)
NET PROFIT	%	25.29	(32.23)
FIXED ASSETS	%	(7.99)	(1.55)
TOTAL ASSETS	%	(1.82)	(7.76)

ANNUAL GROWTH : ACCEPTABLE

An annual sales growth is -7.11%. Turnover has decreased from THB 1,564,502,946.00 in 2013 to THB 1,453,329,010.00 in 2014. While net profit has increased from THB 147,927,564.00 in 2013 to THB 185,341,870.00 in 2014. And total assets has decreased from THB 2,040,073,437.00 in 2013 to THB 2,002,972,120.00 in 2014.

PROFITABILITY : ACCEPTABLE

PROFITABILITY RATIO

Gross Profit Margin	23.18	Deteriorated	Industrial Average	185.05
Net Profit Margin	12.75	Impressive	Industrial Average	10.04
Return on Assets	9.25	Deteriorated	Industrial Average	19.43
Return on Equity	18.69	Deteriorated	Industrial Average	49.88

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 23.18%. 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 12.75%, 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. When compared with the industry average, it was lower, the company's figure is 9.25%.

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 18.69%.

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

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY : RISKY

LIQUIDITY RATIO

Current Ratio	1.23	Satisfactory	Industrial Average	1.45
Quick Ratio	0.44
Cash Conversion Cycle	195.84

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 1.23 times in 2014, increased from 1.15 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 lower.

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 0.44 times in 2014, increased from 0.37 times, then the company has not enough current assets that presumably can be quickly converted to cash for pay financial obligations.

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 196 days.

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

Current Ratio Uptrend

LEVERAGE : ACCEPTABLE

LEVERAGE RATIO

Debt Ratio	0.50	Acceptable	Industrial Average	0.50
Debt to Equity Ratio	1.02	Risky	Industrial Average	0.83
Times Interest Earned	6.51	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 6.52 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 0.5, 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 : ACCEPTABLE

ACTIVITY RATIO

Fixed Assets Turnover	1.34	Impressive	Industrial Average	-
Total Assets Turnover	0.73	Deteriorated	Industrial Average	2.44
Inventory Conversion Period	158.67
Inventory Turnover	2.30	Deteriorated	Industrial Average	11.13
Receivables Conversion Period	77.70
Receivables Turnover	4.70	Satisfactory	Industrial Average	5.74
Payables Conversion Period	40.53

The company's Account Receivable Ratio is calculated as 4.70 and 7.09 in 2014 and 2013 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 2014 decreased from 2013. This would suggest the company had deteriorated 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 increased from 151 days at the end of 2013 to 159 days at the end of 2014. This represents a negative trend. And Inventory turnover has decreased from 2.42 times in year 2013 to 2.3 times in year 2014.

The company's Total Asset Turnover is calculated as 0.73 times and 0.77 times in 2014 and 2013 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.66.99
UK Pound	1	Rs.101.778
Euro	1	Rs.73.47
BHT	1	Rs.1.86

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	KIN
Report Prepared by :	ANK

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.