MIRA INFORM REPORT

Report No. :	348204
Report Date :	06.11.2015

IDENTIFICATION DETAILS

Name :	REWE FAR EAST LIMITED
Registered Office :	12th Floor, Thai Wah Tower 1, 21/33 South Sathorn Road
Country :	Thailand
Financials (as on) :	31.12.2014
Date of Incorporation :	27.08.2012
Com. Reg. No.:	0100555000779
Legal Form :	International Company [Bangkok Branch]
Line of Business :	Subject is engaged in trading business, to import, distribute and export wide range of products such as foods, apparels, home textiles and
No. of Employees :	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

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

REWE FAR EAST LIMITED

[BANGKOK REPRESENTATIVE OFFICE]

SUMMARY

BUSINESS ADDRESS : 12^th FLOOR, THAI WAH TOWER 1,

21/33 SOUTH SATHORN ROAD, THUNGMAHAMEK,

SATHORN, BANGKOK 10120, THAILAND

TELEPHONE : [66] 2697-3100

FAX : [66] 2677-3322

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2012

REGISTRATION NO. : 0100555000779

TAX ID NO. : -

CAPITAL : BHT. 57,431,780

SHAREHOLDER’S PROPORTION : -

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : INTERNATIONAL COMPANY [BANGKOK BRANCH]

EXECUTIVE : MR. MARC ANTOINE SOLESSE, DEUTSCHE

GENERAL MANAGER

NO. OF STAFF : 9

LINES OF BUSINESS : TRADING COMPANY

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 August 27 2012 as a Bangkok representative of international investment company under the registered name REWE FAR EAST LIMITED, where headquarter is in Hong Kong, in order to engage in trading business of foods and consumer products. It currently employs 9 staff.

The subject’s registered address is 12^th Floor, Thai Wah Tower 1, 21/33 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, and this is the subject’s current operation address.

BOARD OF DIRECTOR

Mr. Marc Antoine Solesse

AUTHORIZED PERSON

Mr. Marc Antoine Solesse signs on behalf of the subject with seal affixed.

MANAGEMENT

Mr. Marc Antoine Solesse is the General Manager.

He is Deutsche nationality.

BUSINESS OPERATIONS

The subject is engaged in trading business, to import, distribute and export wide range of products such as foods, apparels, home textiles.

PURCHASE

The products are purchased from both domestic and overseas suppliers in Hong Kong, Republic of China, India, Germany and New Zealand.

SALES

The products are sold by wholesale to both local and overseas traders and end-users in Hong Kong, Republic of China, India and Turkey.

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 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.

Exports are against T/T.

BANKING

N/A

EMPLOYMENT

The subject currently employs 9 staff.

LOCATION DETAILS

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

COMMENT

Since the subject was established in 2012, it reported no sales income. Subject seems to have no activity by the time being. Any business engagement should be on secured basis only.

FINANCIAL INFORMATION

N/A

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mr. Chaisiri Ruangritchai No. 4526

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	1,632,459	2,341,885	1,006,558
Prepaid Expenses	13,965	191,312	51,300
Total Current Assets	1,646,424	2,533,197	1,057,858
Equipment	3,422,295	4,276,655	5,107,964
Deposit	368,150	368,150	423,150
Total Assets	5,436,869	7,178,002	6,588,972

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2014	2013	2012
Other Payable	1,831,533	1,310,634	1,069,518
Other Current Liabilities	8,521	12,797	59,791
Total Current Liabilities	1,840,054	1,323,431	1,129,309
Accrued Rental	-	16,682	-
Estimated Liabilities from Employee Benefits	28,898	7,139	245,620
Total Liabilities	1,868,952	1,347,252	1,374,929
Shareholders' Equity
Head Office’s Portion Capital	57,431,780	38,395,456	11,774,301
Retained Earning - Unappropriated [Deficit]	[53,863,863]	[32,564,706]	[6,560,258]
Total Head Office’s Portion	3,567,917	5,830,750	5,214,043
Total Liabilities & Head Office’s Portion	5,436,869	7,178,002	6,588,972

PROFIT & LOSS ACCOUNT

Revenue	2014	2013	Aug. 27, 2012 - Dec. 31, 2012
Revenue	-	-	-
Total Revenues	-	-	-
Expenses
Employee Expenses	13,925,674	17,874,320	3,858,325
Transportation & Allowances	2,245,791	2,728,668	412,419
Depreciation	1,187,907	1,127,605	316,194
Other Expenses	3,939,785	4,273,855	1,973,320
Total Expenses	21,299,157	26,004,448	6,560,258
Net Profit / [Loss]	[21,299,157]	[26,004,448]	[6,560,258]

FINANCIAL ANALYSIS

ITEM	UNIT	2014	2013	2012
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.89	1.91	0.94
QUICK RATIO	TIMES	0.89	1.91	0.94
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	%	(596.96)	(445.99)	(125.82)
RETURN ON ASSET	%	(391.75)	(362.28)	(99.56)
EARNING PER SHARE	BAHT	-	-	-
LEVERAGE RATIO
DEBT RATIO	TIMES	0.34	0.19	0.21
DEBT TO EQUITY RATIO	TIMES	0.52	0.23	0.26
TIME INTEREST EARNED	TIMES	-	-	-
ANNUAL GROWTH
SALES GROWTH	%	-	-
OPERATING PROFIT	%	(18.09)	296.39
NET PROFIT	%	18.09	(296.39)
FIXED ASSETS	%	(19.98)	(16.27)
TOTAL ASSETS	%	(24.26)	8.94

ANNUAL GROWTH : RISKY

Net profit has increased from THB -26,004,448.00 in 2013 to THB -21,299,157.00 in 2014. And total assets has decreased from THB 7,178,002.00 in 2013 to THB 5,436,869.00 in 2014.

PROFITABILITY : RISKY

PROFITABILITY RATIO

Gross Profit Margin	-		Industrial Average	25.04
Net Profit Margin	-		Industrial Average	11.89
Return on Assets	(391.75)	Deteriorated	Industrial Average	19.58
Return on Equity	(596.96)	Deteriorated	Industrial Average	36.57

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 -391.75%.

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 -596.96%.

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

Return on Assets Downtrend

Return on Equity Downtrend

LIQUIDITY : RISKY

LIQUIDITY RATIO

Current Ratio	0.89	Risky	Industrial Average	1.74
Quick Ratio	0.89
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 0.89 times in 2014, decrease from 1.91 times, then the company may have problems meeting its short-term obligations. 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 0.89 times in 2014, decrease from 1.91 times, by excluding inventory, the company may have problems meeting current liabilities.

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

Current Ratio Uptrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.34	Impressive	Industrial Average	0.47
Debt to Equity Ratio	0.52	Impressive	Industrial Average	0.88
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 0.34 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 Downtrend

Times Interest Earned Stable

ACTIVITY : RISKY

ACTIVITY RATIO

Fixed Assets Turnover	-	Industrial Average	-
Total Assets Turnover	-	Industrial Average	1.65
Inventory Conversion Period	-
Inventory Turnover	-	Industrial Average	3.98
Receivables Conversion Period	-
Receivables Turnover	-	Industrial Average	3.82
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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.68
UK Pound	1	Rs.101.02
Euro	1	Rs.71.35

INFORMATION DETAILS

Analysis Done by :	HNA
Report Prepared by :	TRU

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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