MIRA INFORM REPORT

Report No. :	355280
Report Date :	18.12.2015

IDENTIFICATION DETAILS

Name :	SWTI ENTERPRISE COMPANY LIMITED
Registered Office :	69/3 Moo 6, Bangna-Trad Road [Km. 25.5], T. Bangsaothong, A. Bangsaothong, Samutprakarn 10540
Country :	Thailand
Financials (as on) :	31.12.2014
Date of Incorporation :	23.12.2002
Com. Reg. No.:	0115545010644
Legal Form :	Private Limited Company
Line of Business :	Subject is engaged in importing and distributing various kinds of welding wires such as stainless steel welding wire, steel welding wire, argon welding wire, aluminum welding wire
No. of Employee :	9

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 – 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

Company name

SWTI ENTERPRISE COMPANY LIMITED

SUMMARY

BUSINESS ADDRESS : 69/3 MOO 6, BANGNA-TRAD ROAD [KM. 25.5],

T. BANGSAOTHONG, A. BANGSAOTHONG,

SAMUTPRAKARN 10540, THAILAND

TELEPHONE : [66] 2313-4335

FAX : [66] 2707-0088

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2002

REGISTRATION NO. : 0115545010644

TAX ID NO. : 3030759351

CAPITAL REGISTERED : BHT. 5,000,000

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

SHAREHOLDER’S PROPORTION : THAI : 85.00%

TAIWANESE : 15.00%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. TEWAN LURHATHAIOPATH, THAI

MANAGING DIRECTOR

NO. OF STAFF : 9

LINES OF BUSINESS : WELDING WIRES

IMPORTER 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 December 23, 2002 as a private limited company under the registered name SWTI ENTERPRISE COMPANY LIMITED, by Thai and Taiwanese groups, with the business objective to import and distribute welding wires to domestic market. The subject currently employs 9 staff.

The subject’s registered address is 69/3 Moo 6, Bangna-Trad Road [K.M. 25.5],

T. Bangsaothong, A. Bangsaothong, Samutprakarn 10540, and this is the subject’s

current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mrs. Laksana Lurhathaiopath	Thai	61
Mr. Tewan Lurhathaiopath	Thai	67
Ms. Sutana Lurhathaiopath	Thai	42
Mr. Annop Lurhathaiopath	Thai	64
Mrs. Sumalee Lurhathaiopath	Thai	66

AUTHORIZED PERSON

Any two of the above directors can jointly sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Tewan Lurhathaiopath is the Managing Director.

He is Thai nationality with the age of 67 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing various kinds of welding wires such as stainless steel welding wire, steel welding wire, argon welding wire, aluminum welding wire

MAJOR BRANDS

“KOBE”, “YAWATA”, “GEMINI” and others

PURCHASE

The products are purchased from suppliers both domestic and overseas in Taiwan.

SALES

100% of the products is sold locally to wholesalers, retailers 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 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 T/T.

BANKING

N/A

EMPLOYMENT

The subject currently employs 9 staff.

LOCATION DETAILS

The premise is owned for administrative office and showroom at the heading address. Premise is located in provincial, on the outskirts of Bangkok.

COMMENT

The subject is an importer and distributor of welding wires for industrial users. Its business performance has grown slowly in the past several years. Moreover, slow growth of industrial sector has affected the subject’s business this year.

FINANCIAL INFORMATION

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

each with fully paid.

MAIN SHAREHOLDERS

[as at April 30, 2015]

NAME	HOLDING	%
Mr. Tewan Lurhathaiopath Nationality: Thai Address : 25/6 Sukhapiban 3 Road, Sapansung, Bangkok	9,890	19.78
Mr. Nantapol Lurhathaiopath Nationality: Thai Address : 282/9 Sukhumvit 71 Road, Prakanong, Wattana, Bangkok	6,870	13.74
Mr. Annop Lurhathaiopath Nationality: Thai Address : 12/22 Soi Ramkhamhaeng 164, Minburi, Bangkok	5,870	11.74
Mrs. Laksana Lurhathaiopath Nationality: Thai Address : 21/739 Moo 5, Sukhapiban 1 Road, Klongkum, Bungkum, Bangkok	5,870	11.74
Mr. Chen Min Sung Nationality: Taiwanese Address : Taipei, Taiwan	2,500	5.00
Mr. Kao Tien-Fa Nationality: Taiwanese Address : Taipei, Taiwan	2,500	5.00
Mrs. Sumalee Lurhathaiopath Nationality: Thai Address : 25/6 Sukhapiban 3 Road, Sapansung, Bangkok	2,000	4.00
Others	14,500	29.00

Total Shareholders : 21

Share Structure [as at April 30, 2015]

Nationality	Shareholders	No. of Share	% Shares
Thai	16	42,500	85.00
Foreign - Taiwanese	5	7,500	15.00
Total	21	50,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Sakchai Prajakbunjesada No. 5927

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	360,443.83	723,881.16	325,355.96
Trade Accounts Receivable	5,078,457.70	3,527,583.71	2,924,552.25
Inventories	6,505,766.62	5,533,152.87	3,128,341.57
Other Current Assets	301,639.02	350,550.82	733,712.67
Total Current Assets	12,246,307.17	10,135,168.56	7,111,962.45
Long-term Loan to Person & Related Company	3,250,000.17	3,250,000.17	3,250,000.17
Fixed Assets	312,526.98	778,519.81	1,197,879.78
Other Non-current Assets	41,501.75	81,129.06	103,409.94
Total Assets	15,850,336.07	14,244,817.60	11,663,252.34

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2014	2013	2012
Trade Accounts & Notes Payable	2,863,536.97	2,069,752.41	76,457.92
Related Company Payable	3,265,499.14	1,927,499.14	-
Advance Income	14,107,223.33	13,914,130.67	12,608,003.39
Current Portion of Hire-purchase Payable	123,636.00	123,636.00	123,636.00
Other Current Liabilities	134,823.66	119,582.76	71,729.08
Total Current Liabilities	20,494,719.10	18,154,600.98	12,879,826.39
Hire-purchase Payable	103,030.00	226,666.00	350,302.00
Long-term Loan from Person & Related Company	4,315,976.11	4,315,976.11	5,713,075.25
Total Liabilities	24,913,725.21	22,697,243.09	18,943,203.64
Shareholders' Equity
Share capital : Baht 100 par value Authorized & issued share capital 50,000 shares	5,000,000.00	5,000,000.00	5,000,000.00
Capital Paid	5,000,000.00	5,000,000.00	5,000,000.00
Retained Earning - Unappropriated [Deficit]	[14,063,389.14]	[13,452,425.49]	[12,279,951.30]
Total Shareholders' Equity	[9,063,389.14]	[8,452,425.49]	[7,279,951.30]
Total Liabilities & Shareholders' Equity	15,850,336.07	14,244,817.60	11,663,252.34

PROFIT & LOSS ACCOUNT

Revenue	2014	2013	2012
Sales & Service Income	11,495,731.90	8,772,759.25	8,258,791.24
Other Income	41,154.26	132,166.02	29,288.34
Total Revenues	11,536,886.16	8,904,925.27	8,288,079.58
Expenses
Cost of Service	9,827,706.32	8,338,541.52	7,869,860.61
Selling Expenses	432,627.50	347,534.10	298,811.13
Administrative Expenses	1,870,033.96	1,391,323.84	1,447,219.61
Total Expenses	12,130,367.78	10,077,399.46	9,615,891.35
Profit / [Loss] before Financial Cost & Income Tax	[593,481.62]	[1,172,474.19]	[1,327,811.77]
Financial Cost	[17,482.03]	-	[5,913.55]
Profit / [Loss] before Income Tax	[610,963.65]	[1,172,474.19]	[1,333,725.32]
Income Tax	-	-	-
Net Profit / [Loss]	[610,963.65]	[1,172,474.19]	[1,333,725.32]

FINANCIAL ANALYSIS

ITEM	UNIT	2014	2013	2012
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.60	0.56	0.55
QUICK RATIO	TIMES	0.27	0.23	0.25
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	36.78	11.27	6.89
TOTAL ASSETS TURNOVER	TIMES	0.73	0.62	0.71
INVENTORY CONVERSION PERIOD	DAYS	241.62	242.20	145.09
INVENTORY TURNOVER	TIMES	1.51	1.51	2.52
RECEIVABLES CONVERSION PERIOD	DAYS	161.25	146.77	129.25
RECEIVABLES TURNOVER	TIMES	2.26	2.49	2.82
PAYABLES CONVERSION PERIOD	DAYS	106.35	90.60	3.55
CASH CONVERSION CYCLE	DAYS	296.52	298.37	270.80
PROFITABILITY RATIO
COST OF GOODS SOLD	%	85.49	95.05	95.29
SELLING & ADMINISTRATION	%	20.03	19.82	21.14
INTEREST	%	0.15	-	0.07
GROSS PROFIT MARGIN	%	14.87	6.46	5.06
NET PROFIT MARGIN BEFORE EX. ITEM	%	(5.16)	(13.36)	(16.08)
NET PROFIT MARGIN	%	(5.31)	(13.36)	(16.15)
RETURN ON EQUITY	%	-	-	-
RETURN ON ASSET	%	(3.85)	(8.23)	(11.44)
EARNING PER SHARE	BAHT	(12.22)	(23.45)	(26.67)
LEVERAGE RATIO
DEBT RATIO	TIMES	1.57	1.59	1.62
DEBT TO EQUITY RATIO	TIMES	(2.75)	(2.69)	(2.60)
TIME INTEREST EARNED	TIMES	(33.95)	-	(224.54)
ANNUAL GROWTH
SALES GROWTH	%	31.04	6.22
OPERATING PROFIT	%	(49.38)	(11.70)
NET PROFIT	%	47.89	12.09
FIXED ASSETS	%	(59.86)	(35.01)
TOTAL ASSETS	%	11.27	22.13

ANNUAL GROWTH : SATISFACTORY

An annual sales growth is 31.04%. Turnover has increased from THB 8,772,759.25 in 2013 to THB 11,495,731.90 in 2014. While net profit has increased from THB -1,172,474.19 in 2013 to THB -610,963.65 in 2014. And total assets has increased from THB 14,244,817.60 in 2013 to THB 15,850,336.07 in 2014.

PROFITABILITY : RISKY

PROFITABILITY RATIO

Gross Profit Margin	14.87	Deteriorated	Industrial Average	48.42
Net Profit Margin	(5.31)	Deteriorated	Industrial Average	5.80
Return on Assets	(3.85)	Deteriorated	Industrial Average	7.98
Return on Equity	-		Industrial Average	14.79

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 14.87%. 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 -5.31%. 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 -3.85%.

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	0.60	Risky	Industrial Average	1.72
Quick Ratio	0.27
Cash Conversion Cycle	296.52

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 0.6 times in 2014, increased from 0.56 times, then the company may not be efficiently using its current assets. 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 0.27 times in 2014, increases from 0.23 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 297 days.

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

Current Ratio Uptrend

LEVERAGE : RISKY

LEVERAGE RATIO

Debt Ratio	1.57	Risky	Industrial Average	0.44
Debt to Equity Ratio	(2.75)	Risky	Industrial Average	0.78
Times Interest Earned	(33.95)	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 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 -33.95 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 1.57 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 : ACCEPTABLE

ACTIVITY RATIO

Fixed Assets Turnover	36.78	Impressive	Industrial Average	-
Total Assets Turnover	0.73	Acceptable	Industrial Average	1.38
Inventory Conversion Period	241.62
Inventory Turnover	1.51	Deteriorated	Industrial Average	3.85
Receivables Conversion Period	161.25
Receivables Turnover	2.26	Deteriorated	Industrial Average	5.03
Payables Conversion Period	106.35

The company's Account Receivable Ratio is calculated as 2.26 and 2.49 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 is 242 days at the end of 2013, same number of days as in 2014. And Inventory turnover is 1.51 times in the year 2013, same figure as in 2014.

The company's Total Asset Turnover is calculated as 0.73 times and 0.62 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 Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.65
UK Pound	1	Rs.99.61
Euro	1	Rs.72.33
BHT	1	Rs.1.83

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%)

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