MIRA INFORM REPORT

Report No. :	351475
Report Date :	27.11.2015

IDENTIFICATION DETAILS

Name :	TREASURE ART GALLERY CO., LTD.
Registered Office :	56 Lagoon Road, T. Cherngtalay, A. Thalang, Phuket 83110,
Country :	Thailand
Financials (as on) :	31.12.2014
Date of Incorporation :	09.08.2012
Com. Reg. No.:	0835555009634
Legal Form :	Private Limited Company
Line of Business :	Subject is engaged in importing and distributing various kinds of handmade products and gift items such as souvenirs, cotton & silk fabric, silk carpet, shawls
No. of Employee :	2

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 :	Small Company
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

TREASURE ART GALLERY CO., LTD.

SUMMARY

BUSINESS ADDRESS : 56 LAGOON ROAD, T. CHERNGTALAY,

A. THALANG, PHUKET 83110, THAILAND

TELEPHONE : [66] 76 604-173, 76 324-313

FAX : [66] 76 604-173

E-MAIL ADDRESS : treasureworld1977@gmail.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2012

REGISTRATION NO. : 0835555009634

TAX ID NO. : -

CAPITAL REGISTERED : BHT. 4,000,000

CAPITAL PAID-UP : BHT. 4,000,000

SHAREHOLDER’S PROPORTION : THAI : 51.00%

INDIAN : 49.00%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. SAMI-ULLAH PIR, INDIAN

MANAGING DIRECTOR

NO. OF STAFF : 2

LINES OF BUSINESS : HANDMADE PRODUCTS AND GIFT ITEMS

IMPORTER AND DISTRIBUTOR

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : FAIR WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH FAIR PERFORMANCE

HISTORY

The subject was established on August 9, 2012 as a private limited company under the registered name TREASURE ART GALLERY CO., LTD., by Thai and Indian groups, with the business objective to import and distribute various handmade products and gift items to domestic market. It currently employs 2 staff.

The subject’s registered address is 56 Lagoon Road, T. Cherngtalay, A. Thalang,

Phuket 83110, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Sami-Ullah Pir	Indian	38
Ms. Patcharin Utsaha	Thai	47

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Sami-Ullah Pir is the Managing Director.

He is Indian nationality with the age of 38 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing various kinds of handmade products and gift items such as souvenirs, cotton & silk fabric, silk carpet, shawls.

PURCHASE

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

SALES

100% of the products is sold locally by retail 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 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 2 staff.

LOCATION DETAILS

The premise is rented for administrative office and store at the heading address. Premise is located in provincial.

COMMENT

Since established in 2012, the subject’s business has slowly grown. In 2015 economy sluggish and shrinking purchasing power, its business is growing at slow pace.

FINANCIAL INFORMATION

The capital was registered at Bht. 2,000,000 divided into 20,000 shares of Bht. 100 each with fully paid.

On September 25, 2013, the registered capital was increased to Bht. 4,000,000 divided into 40,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at April 29, 2015]

NAME	HOLDING	%
Mr. Sami-Ullah Pir Nationality: Indian Address : 56 Lagoon Road, T. Cherngtalay, A. Thalang, Phuket	19,600	49.00
Ms. Patcharin Utsaha Nationality: Thai Address : 9/3 Sakdidej Road, T. Taladnua, A. Muang, Phuket	18,400	46.00
Mrs. Chutirat Bamrungchua Nationality: Thai Address : 101/176 Moo 5, T. Rasada, A. Muang, Phuket	2,000	5.00

Total Shareholders : 3

Share Structure [as at April 29, 2015]

Nationality	Shareholders	No. of Share	% Shares
Thai	2	20,400	51.00
Foreign - Indian	1	19,600	49.00
Total	3	40,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Aree Vilaiwan No. 0863

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	173,480.00	37,201.00	48,857.00
Inventories	666,603.92	763,422.69	-
Short-term Loans to Related Person	-	-	1,900,000.00
Other Current Assets	243,000.00	150,000.00	57,000.00
Total Current Assets	1,083,083.92	950,623.69	2,005,857.00
Long-term Loans	3,100,000.00	3,100,000.00	-
Fixed Assets	66,724.72	48,308.82	-
Total Assets	4,249,808.64	4,098,932.51	2,005,857.00

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2014	2013	2012
Trade Accounts & Other Payable	49,400.00	20,960.00	-
Other Current Liabilities	4,500.00	1,500.00	15,160.00
Total Current Liabilities	53,900.00	22,460.00	15,160.00
Total Liabilities	53,900.00	22,460.00	15,160.00
Shareholders' Equity
Share capital : Baht 100 value authorized and issued share capital 40,000 shares in 2014 & 2013 20,000 shares in 2012	4,000,000.00	4,000,000.00	2,000,000.00
Capital Paid	4,000,000.00	4,000,000.00	2,000,000.00
Retained Earning - Unappropriated [Deficit]	195,908.64	76,472.51	[9,303.00]
Total Shareholders' Equity	4,195,908.64	4,076,472.51	1,990,697.00
Total Liabilities & Shareholders' Equity	4,249,808.64	4,098,932.51	2,005,857.00

PROFIT & LOSS ACCOUNT

Revenue	2014	2013	2012
Sales & Services Income	1,603,938.00	1,660,033.00	-
Other Income	93,000.00	93,000.00	57,000.00
Total Revenues	1,696,938.00	1,753,033.00	57,000.00
Expenses
Cost of Goods Sold & Services	624,795.84	959,805.10	-
Administrative Expenses	952,706.03	707,452.39	66,303.00
Total Expenses	1,577,501.87	1,667,257.49	66,303.00
Profit /[Loss] before Income Tax	119,436.13	85,775.51	[9,303.00]
Income Tax	-	-	-
Net Profit / [Loss]	119,436.13	85,775.51	[9,303.00]

FINANCIAL ANALYSIS

ITEM	UNIT	2014	2013	2012
LIQUIDITY RATIO
CURRENT RATIO	TIMES	20.09	42.33	132.31
QUICK RATIO	TIMES	3.22	1.66	128.55
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	24.04	34.36	-
TOTAL ASSETS TURNOVER	TIMES	0.38	0.40	-
INVENTORY CONVERSION PERIOD	DAYS	389.42	290.32	-
INVENTORY TURNOVER	TIMES	0.94	1.26	-
RECEIVABLES CONVERSION PERIOD	DAYS	-	-	-
RECEIVABLES TURNOVER	TIMES	-	-	-
PAYABLES CONVERSION PERIOD	DAYS	28.86	7.97	-
CASH CONVERSION CYCLE	DAYS	360.56	282.35	-
PROFITABILITY RATIO
COST OF GOODS SOLD	%	38.95	57.82	-
SELLING & ADMINISTRATION	%	59.40	42.62	-
INTEREST	%	-	-	-
GROSS PROFIT MARGIN	%	66.84	47.78	-
NET PROFIT MARGIN BEFORE EX. ITEM	%	7.45	5.17	-
NET PROFIT MARGIN	%	7.45	5.17	-
RETURN ON EQUITY	%	2.85	2.10	(0.47)
RETURN ON ASSET	%	2.81	2.09	(0.46)
EARNING PER SHARE	BAHT	2.99	2.14	(0.47)
LEVERAGE RATIO
DEBT RATIO	TIMES	0.01	0.01	0.01
DEBT TO EQUITY RATIO	TIMES	0.01	0.01	0.01
TIME INTEREST EARNED	TIMES	-	-	-
ANNUAL GROWTH
SALES GROWTH	%	(3.38)	-
OPERATING PROFIT	%	39.24	(1,022.02)
NET PROFIT	%	39.24	1,022.02
FIXED ASSETS	%	38.12	-
TOTAL ASSETS	%	3.68	104.35

ANNUAL GROWTH : IMPRESSIVE

An annual sales growth is -3.38%. Turnover has decreased from THB 1,660,033.00 in 2013 to THB 1,603,938.00 in 2014. While net profit has increased from THB 85,775.51 in 2013 to THB 119,436.13 in 2014. And total assets has increased from THB 4,098,932.51 in 2013 to THB 4,249,808.64 in 2014.

PROFITABILITY : IMPRESSIVE

PROFITABILITY RATIO

Gross Profit Margin	66.84	Impressive	Industrial Average	8.33
Net Profit Margin	7.45	Impressive	Industrial Average	2.75
Return on Assets	2.81	Impressive	Industrial Average	2.44
Return on Equity	2.85	Acceptable	Industrial Average	4.25

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 66.84%. When compared with the industry average, the ratio of the company was higher, indicated that company was more profitable than the same industry.

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 7.45%, 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. Return on Assets ratio is 2.81%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit in a dominant position within its industry.

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 2.85%.

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	20.09	Impressive	Industrial Average	1.67
Quick Ratio	3.22
Cash Conversion Cycle	360.56

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 20.09 times in 2014, decreased from 42.33 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 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 3.22 times in 2014, increased from 1.66 times, although excluding inventory so the company still have good short-term financial strength.

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 361 days.

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

Current Ratio Downtrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.01	Impressive	Industrial Average	0.43
Debt to Equity Ratio	0.01	Impressive	Industrial Average	0.75
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 0.01 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 : ACCEPTABLE

ACTIVITY RATIO

Fixed Assets Turnover	24.04	Impressive	Industrial Average	-
Total Assets Turnover	0.38	Deteriorated	Industrial Average	0.89
Inventory Conversion Period	389.42
Inventory Turnover	0.94	Deteriorated	Industrial Average	2.12
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	1.88
Payables Conversion Period	28.86

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 290 days at the end of 2013 to 389 days at the end of 2014. This represents a negative trend. And Inventory turnover has decreased from 1.26 times in year 2013 to 0.94 times in year 2014.

The company's Total Asset Turnover is calculated as 0.38 times and 0.4 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.66.55
UK Pound	1	Rs.100.64
Euro	1	Rs.70.70
THB	1	Rs.1.86

INFORMATION DETAILS

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