MIRA INFORM REPORT

Report No. :	324886
Report Date :	30.05.2015

IDENTIFICATION DETAILS

Name :	A. J. PLAST PUBLIC COMPANY LIMITED
Registered Office :	95 Thakarm Road, Samaedam, Bangkhunthien, Bangkok 10150
Country :	Thailand
Financials (as on) :	31.12.2014
Date of Incorporation :	25.03.1987
Com. Reg. No.:	0107537001285
Legal Form :	Public Limited Company
Line of Business :	The subject is engaged in manufacturing of flexible packaging materials, mainly as film products, consists of BOPP [Biaxially Oriented Polypropylene] film, BOPET [Biaxially Oriented Polyester] film, BOPA [Oriented Polyamide] film, as well as MPP [Metallized Biaxially Oriented Polypropylene] film, MPT [Metallized Biaxially Oriented Polyester] film and MPA [Metallized Oriented Polyamide] film for various types of packaging and other industries.
No of Employees :	690

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – 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

A. J. PLAST PUBLIC COMPANY LIMITED

SUMMARY

BUSINESS ADDRESS : 95 THAKARM ROAD, SAMAEDAM,

BANGKHUNTHIEN, BANGKOK 10150, THAILAND

TELEPHONE : [66] 2415-0035

FAX : [66] 2415-3795

E-MAIL ADDRESS : export@ajplast.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1987

REGISTRATION NO. : 0107537001285 [BOR MOR JOR. 375]

TAX ID NO. : 3101436198

CAPITAL REGISTERED : BHT. 399,444,945

CAPITAL PAID-UP : BHT. 399,439,227

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PUBLIC LIMITED COMPANY

EXECUTIVE : MR. KITTIPHAT SUTHISAMPHAT, THAI

MANAGING DIRECTOR

NO. OF STAFF : 690

LINES OF BUSINESS : BOPP FILM AND RELATED PRODUCTS

MANUFACTURER, DISTRIBUTOR & EXPORTER

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : GOOD FOR NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH FAIR PERFORMANCE

HISTORY

The subject was established on March 25, 1987 as a private limited company under the registered name A. J. PLAST CO., LTD., by Thai group, Suthisamphat family, with the purpose of manufacturing BOPP film and related products for packaging industries with the promotional privilege granted by the Board of Investment, Thailand.

On May 3, 1994, the subject’s status was converted to a public limited company under the name A. J. PLAST PUBLIC COMPANY LIMITED. On December 7, 1999, it was listed on the Stock Exchange of Thailand. It currently employs 690 staff.

The subject received the ISO 9001:2000, ISO 9001 : 2008 Certification for Quality

Management System of the products.

The subject’s registered address was 19/111 Moo 7, Thakarm Rd., Samaedam,

Bangkhunthien, Bangkok 10150.

In 2011, the subject’s registered address was changed from “19/111 Moo 7” to “95” by the Government district office, actually both are the same location. This is also the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Narong Suthisamphat	: [x] Chairman	Thai	73
Mr. Supote Tonurat		Thai	79
Mr. Ninnat Olanvoravuth		Thai	69
Mr. Thien Ratitamkul		Thai	75
Mrs. Napaporn Suthipongchai	: [x] Vice Chairman	Thai	71
Mr. Kittiphat Suthisamphat	: [x] Vice Chairman	Thai	44
Mrs. Chavida Srisangnam		Thai	71
Mr. Surasak Kosiyachinda		Thai	72

AUTHORIZED PERSON

One of the above directors [x] can sign or any two of the rest directors can jointly sign on behalf of the subject with the company’s affixed.

MANAGEMENT

Mr. Kittiphat Suthisamphat is the Managing Director and Acting General Manager for BOPA Line.

He is Thai nationality with the age of 44 years old.

Mr. Thosapol Chinandech is the Deputy Managing Director.

He is Thai nationality.

Dr. Vouravis Veerakachen is the Assistant Vice President and Acting Financial Manager.

He is Thai nationality.

Mr. Peter Barnes is the General Manager Metallized Line.

He is Taiwanese nationality with the age of 66 years old. He has been worked on this position since 2000.

Mr. Alano Lopez Matias is the General Manager for BOPP Line.

He is American nationality.

Mr. Rajeev Parashar is the General Manager BOPET Line.

He is Thai nationality with the age of 76 years old. He has been working in this position since 1989.

Mr. Fritz Friedrich Schanzer is the General Manager of Consultant.

He is American nationality.

Mr. Pongnet Mundudananda is the Marketing Manager.

He is Thai nationality. He has been worked on this position since 1989.

Ms. Varaporn Posakabutr is the Purchasing Manager.

She is Thai nationality.

Mr. Pradit Boonkanphai is the Computer Manager.

He is Thai nationality. He has started worked on this position since 1999.

Mr. Sophon Maneerat is the Personnel Manager.

He is Thai nationality. He has started worked on this position since 1994.

Ms. Pacharaporn Suebsantiwong is the Planning Manager.

She is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing of flexible packaging materials, mainly as film products, consists of BOPP [Biaxially Oriented Polypropylene] film, BOPET [Biaxially Oriented Polyester] film, BOPA [Oriented Polyamide] film, as well as MPP [Metallized Biaxially Oriented Polypropylene] film, MPT [Metallized Biaxially Oriented Polyester] film and MPA [Metallized Oriented Polyamide] film for various types of packaging and other industries.

The products and application used are as follows:

• BOPP Film :

BOPP cigarette wrapping, BOPP Co-ex printing & lamination, BOPP Co-ex film one side heat seal, BOPP-Co-ex matt, BOPP pearlized film, BOPP opaque white film, BOPP plain printing * lamination, BOPP for paper lamination, BOPP plain brown film, BOPP plain adhesive tape and etc.

Application Used :

Printing and lamination, adhesive tape, side seal bag, flower wraps and

flower sheet and paper lamination

• BOPET Film :

BOPET hot stamping polyester film, BOPET high haze polyester film, BOPET pancake polyester film, BOPET plain polyester film, BOPET plain polyester isotropic film, BOPET ultra clear BOPET film, BOPET plain polyester film for lamination and candy wrapping, BOPET metallic yarn film and etc.

Application Used :

used for printing and lamination from high speed wrapping machine, cable

and electrical application and hot stamping

• Metallized Film :

M-BOPP Co-ex metallized polypropylene film, M-BOPET metallized pancake film, M-BOPET metallized polyester film, M-BOPET metallized isotropic polyester film, M-BOPET metallized polyester film for candy and paper lamination, M-BOPET metallizes polyester yarn film and etc.

Application Used :

used for barrier film for snack food and confectionery in printing and

lamination

• BOPA Film :

Nylon and nylon polyamide base film for metallizing

Application Used :

used for retort foods, packaging for frozen foods and liquid foods, precooked

foods, ham and sausage, jam and preserves, rice pack, vegetable pack,

seasoning and metallized balloons

PRODUCTION CAPACITY

BOPP film 5 lines : 142,000 tons per year

BOPET film 2 lines : 62,000 tons per year

Metallized Film 3 lines : 16,800 tons per year

BOPA 2 lines : 18,000 tons per year

BRAND NAME

“AJ PLAST” and etc.

PURCHASE

80% of the raw materials such as polypropylene, polyester and other chemicals are purchased from local suppliers, the remaining 20% such as specialized and special chemicals are imported from United States of America, Japan, Republic of China, India, Malaysia, Germany, Singapore and Hong Kong.

MAJOR SUPPLIERS

HMC Polymer Co., Ltd. : Thailand

Indo Poly [Thailand] Ltd. : Thailand

IRPC Public Company Limited : Thailand

SALES

64% of the products is exported to manufacturers and agents in Singapore, Hong Kong, Taiwan, Japan, Malaysia, Indonesia, Vietnam, Philippines, Australia, India, Switzerland and Italy, the remaining 36% is sold locally.

Revenue Structure:

Products	2014		2013
	Thousand Baht	%	Thousand Baht	%
Local
- BOPP film	1,392,864	21.70	1,172,571	21.7
- BOPET film	619,479	9.65	515,329	9.54
- Metallized film	109,478	1.71	168,123	3.11
- BOPA [Nylon] film	210,636	3.28	216,164	4.00
Total	2,332,457	36.34	2,072,187	38.35
Overseas
- BOPP film	2,400,649	37.40	1,948,980	36.07
- BOPET film	863,594	13.45	629,897	11.66
- Metallized film	229,732	3.58	183,856	3.40
- BOPA [Nylon] film	592,007	9.23	568,832	10.52
Total	4,085,982	63.66	3,331565	61.65
Total Revenue	6,418,439	100.00	5,403,752	100.00

MAJOR CUSTOMERS

The subject’s major customers are as follows:

- Printing house, side seal packaging factory for consumer, food & confectionery industries.

- Adhesive Tape Factory

- Electronic Industry

SUBSIDIARIES & AFFILIATED COMPANY

The subject is not found to have any subsidiaries or affiliated companies 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 for the past two years.

CREDIT

Sales are by cash or on the credit terms 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.

[Head Office : 333 Silom Rd., Bangrak, Bangkok 10500]

[Plabplachai Branch : 9 Suepa Rd., Plabplachai, Bangkok]

Kasikornbank Public Co., Ltd.

[Head Office : 1 Kasikorn Lane, Rajburana Rd., Rajburana, Bangkok 10140]

[Plabplachai Branch : 334 Mahachai Rd., Plabplachai, Bangkok]

The Siam Commercial Bank Public Co., Ltd.

[Charoennakorn Branch : 1492/1 Charoennakorn Rd., Klongsan, Bangkok]

EMPLOYMENT

The subject currently employs 690 staff [office, sales staff and factory workers].

LOCATION DETAILS

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

Factory and warehouse are located at 38/11 Moo 5, Laemchabang Industrial Estate, Tungsukhla, Sriracha, Chonburi 20230.

Tel.: [66] 38 490-330-5 Fax : [66] 38 490-337.

COMMENT

The company was formed in 1987 as a manufacturer of Bopp Film and related products. Its products are for industrial users. The company has ensured a continuous growth and stability in its operation. It has acquired a strong support from the government as well as trust from both domestic and overseas customers, which allows the company to be highly successful in high efficiency and standard manufacturing and to be able to expand the market globally.

The company is implemented business plans to preserve the domestic market share and to increase export volume. From the previous year, the company had sufficient capacity of BOPP film, BOPET film, BOPA film and METALLIZED film to supply customers, this resulted from continuous expansion which a bled the company to expand market bases both of domestic and export in order to accommodate future market growth.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 1,000,000 divided into 10,000 shares of

Bht. 100 each.

The capital was increased later as follows:

Bht. 40,000,000 on January 29, 1988

Bht. 80,000,000 on December 28, 1989

Bht. 120,000,000 on November 1, 1990

Bht. 300,000,000 on July 28, 1991

Bht. 600,000,000 in 1995

The latest registered capital was decreased to Bht. 399,444,945 divided into 399,444,945 shares of Bht. 1 each, with the current capital paid-up at Bht. 399,439,227.

MAIN SHAREHOLDERS : [as at March 16, 2015] at Bht. 399,439,227 of

capitalization.

NAME	HOLDING	%
Mr. Narong Suthisamphat	76,295,555	19.10
Mr. Kittiphat Suthisamphat	55,737,842	13.95
Mrs. Suleemas Suthisamphat	52,622,222	13.17
Ms. Ajala Suthisamphat	26,106,900	6.54
HSBC [Singapore] Nominees Pte. Ltd.	9,772,600	2.45
Mr. Chanyuth Chatpiriyaphan	7,200,000	1.80
Mr. Paiwan Chartpitak	6,750,000	1.69
Mrs. Nongnipa Suthisamphat	5,600,000	1.40
Mrs. Prinya Khancharoensuk	4,544,444	1.14
Mr. Songchai Ajchariyahiranchai	3,919,900	0.98
Ms. Daranee Chatpiriyaphan	3,000,000	0.75
Thai NVDR Co., Ltd.	2,708,712	0.68
Others	145,181,052	36.35

Total Shareholders : 5,215

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Dr. Virach Aphimeteetamrong No. 1378

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	1,772,344	11,541,343	2,375,061
Trade and Other Receivables	866,363,639	706,699,354	664,439,902
Inventories	1,129,091,453	950,965,315	862,609,162
Other Current Assets Refundable value added tax	77,010,359	83,354,086	50,120,868
Prepaid spare parts	2,227,337	6,860,547	37,135
Receivables from buying and selling forward exchange contracts	15,082,812	-	31,743,652
Assets under buying forward exchange contracts	-	-	365,459
Others	701,606	303,405	467
Total Other Current Assets	95,022,114	90,518,038	82,267,581
Total Current Assets	2,092,249,550	1,759,724,050	1,611,691,706
Long-term Investments
Investments in related party	23,952,000	23,952,000	23,952,000
Property, Plant and Equipment	6,070,406,313	5,644,804,375	4,307,664,215
Intangible Assets Deferred computer software	2,190,304	185,646	593,500
Other Assets Prepaid machineries and accessories	29,690,058	92,488,522	145,670,261
Guarantee for leasing assets	8,461,054	8,461,054	7,057,204
Accounts Receivable - Customs department	14,802,666	10,753,266	9,225,964
Others	1,256,315	1,411,535	1,942,575
Total Non-current Assets	54,210,093	113,114,377	163,896,004
Total Assets	8,243,008,260	7,541,780,448	6,107,797,425

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2014	2013	2012
Bank Overdraft and Short-term Loan from Financial Institutions	1,192,602,936	622,409,995	1,059,548,779
Trade and Other Payables	1,451,975,791	1,273,424,747	1,051,955,902
Current Portion of Long-term Liabilities Liabilities under long-term leases	975,195	2,545,292	14,882,051
Long-term loans	118,250,000	70,000,000	-
Current Portion of Deferred Surplus on Sale & Lease Back	-	-	171,786
Assets Acquisition Payable	176,520,889	110,455,267	163,512,375
Accrued Interest	799,208	676,223	394,998
Other Current Liabilities
Payables from buying and selling forward exchange contracts	-	19,720,050	-
Commitment from purchasing of machinery	-	-	365,459
Others	11,843,917	2,653,884	3,261,151
Total Current Liabilities	2,952,967,936	2,101,885,458	2,294,092,501
Liabilities under Long-term Leases- net	1,062,575	1,228,224	3,771,316
Long-term Loans - net	2,101,750,000	2,004,636,866	221,120,000
Provision for Long-term Employee Benefits	37,674,466	33,674,886	30,565,809
Total Liabilities	5,093,454,977	4,141,425,434	2,549,549,626
Shareholders' Equity
Share capital
Authorized share capital 399,444,945 common stocks at of Baht 1 par	399,444,945	399,444,945	399,444,945
Issued and paid-up share capital
399,444,945 common stocks at of Baht 1 par	399,439,227	399,439,227	399,439,227
Premium on Share Capital	876,616,300	876,616,300	876,616,300
Retained Earnings Appropriated Legal Reserve	60,000,000	60,000,000	60,000,000
Unappropriated	1,813,497,756	2,064,299,487	2,222,192,272
Total Shareholders' Equity	3,149,553,283	3,400,355,014	3,558,247,799
Total Liabilities & Shareholders' Equity	8,243,008,260	7,541,780,448	6,107,797,425

PROFIT & LOSS ACCOUNT

Revenue	2014	2013	2012
Sales	6,418,439,947	5,403,751,489	5,148,791,323
Other Income Scrap sales	5,071,843	9,501,512	10,222,266
Gain on exchange rates	88,597,959	-	82,995,895
Gain on equipment disposal	226,538	-	-
Tax cards income	23,486,635	18,678,155	19,066,323
Others	9,730,859	20,428,330	25,517,404
Total Revenues	6,545,553,781	5,452,359,486	5,286,593,211
Expenses
Cost of Sales	6,296,041,265	5,097,604,593	4,733,501,943
Selling Expenses	202,094,895	165,329,034	147,589,329
Administrative Expenses	215,137,211	186,679,732	162,330,245
Loss on Exchange Rate	-	41,105,824	-
Loss on Machineries and Accessories Disposal	-	7,285,580	2,878,471
Loss on Sale of Spare Parts	-	-	15,893,766
Directors’ Remuneration	3,510,000	3,690,000	3,520,000
Total Expenses	6,716,783,371	5,501,694,763	5,065,713,754
Loss before Finance Costs	[171,229,590]	[49,335,277]	220,879,457
Financial Costs	[76,626,533]	[48,641,774]	[30,872,756]
Loss for the Years	[247,856,123]	[97,977,051]	190,006,701
Other Comprehensive Loss for the Years Actuarial losses form employee benefit plan	[2,945,608]	-	-
Total Comprehensive Loss for the Year	[250,801,731]	[97,977,051]	190,006,701

FINANCIAL ANALYSIS

ITEM	UNIT	2014	2013	2012
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.71	0.84	0.70
QUICK RATIO	TIMES	0.29	0.34	0.29
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	1.06	0.96	1.20
TOTAL ASSETS TURNOVER	TIMES	0.78	0.72	0.84
INVENTORY CONVERSION PERIOD	DAYS	65.46	68.09	66.52
INVENTORY TURNOVER	TIMES	5.58	5.36	5.49
RECEIVABLES CONVERSION PERIOD	DAYS	49.27	47.73	47.10
RECEIVABLES TURNOVER	TIMES	7.41	7.65	7.75
PAYABLES CONVERSION PERIOD	DAYS	84.18	91.18	81.12
CASH CONVERSION CYCLE	DAYS	30.55	24.65	32.50
PROFITABILITY RATIO
COST OF GOODS SOLD	%	98.09	94.33	91.93
SELLING & ADMINISTRATION	%	6.50	6.51	6.02
INTEREST	%	1.19	0.90	0.60
GROSS PROFIT MARGIN	%	3.89	6.56	10.74
NET PROFIT MARGIN BEFORE EX. ITEM	%	(2.67)	(0.91)	4.29
NET PROFIT MARGIN	%	(3.86)	(1.81)	3.69
RETURN ON EQUITY	%	(7.87)	(2.88)	5.34
RETURN ON ASSET	%	(3.01)	(1.30)	3.11
EARNING PER SHARE	BAHT	(0.62)	(0.25)	0.48
LEVERAGE RATIO
DEBT RATIO	TIMES	0.62	0.55	0.42
DEBT TO EQUITY RATIO	TIMES	1.62	1.22	0.72
TIME INTEREST EARNED	TIMES	(2.23)	(1.01)	7.15
ANNUAL GROWTH
SALES GROWTH	%	18.78	4.95
OPERATING PROFIT	%	247.07	(122.34)
NET PROFIT	%	(152.97)	(151.57)
FIXED ASSETS	%	7.54	31.04
TOTAL ASSETS	%	9.30	23.48

ANNUAL GROWTH : IMPRESSIVE

An annual sales growth is 18.78%. Turnover has increased from THB 5,403,751,489.00 in 2013 to THB 6,418,439,947.00 in 2014. While net profit has decreased from THB -97,977,051.00 in 2013 to THB -247,856,123.00 in 2014. And total assets has increased from THB 7,541,780,448.00 in 2013 to THB 8,243,008,260.00 in 2014.

PROFITABILITY : RISKY

PROFITABILITY RATIO

Gross Profit Margin	3.89	Deteriorated	Industrial Average	23.82
Net Profit Margin	(3.86)	Deteriorated	Industrial Average	6.36
Return on Assets	(3.01)	Deteriorated	Industrial Average	6.42
Return on Equity	(7.87)	Deteriorated	Industrial Average	11.64

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 3.89%. 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 -3.86%. 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 -3.01%.

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 -7.87%.

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	0.71	Risky	Industrial Average	1.64
Quick Ratio	0.29
Cash Conversion Cycle	30.55

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 0.71 times in 2014, decreased from 0.84 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 0.29 times in 2014, decreased from 0.34 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 31 days.

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

Current Ratio Uptrend

LEVERAGE : RISKY

LEVERAGE RATIO

Debt Ratio	0.62	Acceptable	Industrial Average	0.38
Debt to Equity Ratio	1.62	Risky	Industrial Average	0.58
Times Interest Earned	(2.23)	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 -2.24 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 0.62 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 : IMPRESSIVE

ACTIVITY RATIO

Fixed Assets Turnover	1.06	Impressive	Industrial Average	-
Total Assets Turnover	0.78	Satisfactory	Industrial Average	0.99
Inventory Conversion Period	65.46
Inventory Turnover	5.58	Impressive	Industrial Average	3.78
Receivables Conversion Period	49.27
Receivables Turnover	7.41	Impressive	Industrial Average	3.41
Payables Conversion Period	84.18

The company's Account Receivable Ratio is calculated as 7.41 and 7.65 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 decreased from 68 days at the end of 2013 to 65 days at the end of 2014. This represents a positive trend. And Inventory turnover has increased from 5.36 times in year 2013 to 5.58 times in year 2014.

The company's Total Asset Turnover is calculated as 0.78 times and 0.72 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 Downtrend

Inventory Turnover Downtrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.76
UK Pound	1	Rs. 97.79
Euro	1	Rs. 69.90

INFORMATION DETAILS

Analysis Done by :	RSM
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%)

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.