MIRA INFORM REPORT

Report No. :	491139
Report Date :	12.02.2018

IDENTIFICATION DETAILS

Name :	CHATILA (BANGKOK) CO., LTD.
Formerly Known As :	EPOQUE (BANGKOK) CO., LTD.
Registered Office :	4^th Floor, Room No.8, Manaphan Building, 308 Silom Road, Suriyawongse, Bangrak, Bangkok 10500
Country :	Thailand
Financials (as on) :	31.12.2016
Date of Incorporation :	13.02.1995
Com. Reg. No.:	0105538018732
Legal Form :	Private Limited Company
Line of Business :	Importer and Distributor of Diamonds, Gemstones and Jewelry Products.
No. of Employees :	6

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Thailand	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

THAILAND - ECONOMIC OVERVIEW

With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.

Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.

Thailand’s economy is recovering from slow growth during the years since the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.

Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.

Source : CIA

Company name

CHATILA (BANGKOK) CO., LTD.

[FORMER: EPOQUE (BANGKOK) CO., LTD.]

SUMMARY

BUSINESS ADDRESS : 4^th FLOOR, ROOM NO. 8, MANAPHAN BUILDING,

308 SILOM ROAD, SURIYAWONGSE,

BANGRAK, BANGKOK 10500, THAILAND

TELEPHONE : [66] 2233-8693, 2234-2792

FAX : [66] 2237-8824

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1995

REGISTRATION NO. : 0105538018732

TAX ID NO. : 3011537947

CAPITAL REGISTERED : BHT. 6,000,000

CAPITAL PAID-UP : BHT. 6,000,000

SHAREHOLDER’S PROPORTION : THAI : 51.00%

SWISS : 49.00%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. ANTOINE BONJA, FRENCH

MANAGING DIRECTOR

NO. OF STAFF : 6

LINES OF BUSINESS : DIAMONDS, GEMSTONES AND

JEWELRY PRODUCTS

IMPORTER AND DISTRIBUTOR

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 February 13, 1995 as a private limited company under the originally registered name “Epoque (Bangkok) Co., Ltd.” by Thai and Swiss groups. On August 28, 1999, its registered name was changed to CHATILA (BANGKOK) CO., LTD. Its business objective is to import and distribute diamonds, gemstones and jewelry products. It currently employs 6 staff.

The subject’s registered address is 4^th Floor, Room No. 8, Manaphan Building, 308 Silom Road, Suriyawongse, Bangrak, Bangkok 10500, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Chatila Nicolas	Swiss	80
Mr. Antoine Bonja	French	62

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Antoine Bonja is the Managing Director.

He is French nationality with the age of 62 years old.

Ms. Supaporn Sangboonrueng is the Assistant Managing Director.

She is Thai nationality.

BUSINESS OPERATIONS

The subject is engaged in importing, distributing and re-exporting various kinds of diamonds, gemstones and jewelry products such as ring, earrings, necklace, bracelet, pendant, etc., as well as exporting of the local jewelry products.

PURCHASE

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

SALES [LOCAL]

The products are sold locally to traders, manufacturers and end-users.

EXPORT

The products are exported and re-exported to India, Republic of China, Hong Kong and Japan.

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

Bangkok Bank Public Company Limited

EMPLOYMENT

The subject currently employs 6 staff.

LOCATION DETAILS

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

Branch office is located at 3^rd Floor, Room No. 6, Manaphan Building, 308 Silom Road, Suriyawongse, Bangrak, Bangkok 10500.

COMMENT

The subject’s operating performance in 2016 was satisfactory with an increase in sales or service income, but a slightly decrease in net profit comparing to the previous year. The subject’s business remains strong and profitable in line with a regular demand of the products from both local and overseas markets.

FINANCIAL INFORMATION

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

The capital was increased later as follows:

Bht. 5,000,000 on October 30, 1998

Bht. 6,000,000 on June 11, 2014

The latest registered capital was increased to Bht. 6,000,000 divided into 60,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[As at June 5, 2014]

NAME	HOLDING	%
Chatila (Bangkok) Jewelry Holding Co., Ltd. Nationality: Thai Address : 308 Silom Road, Suriyawongse, Bangrak, Bangkok	30,595	50.99
Mr. Chatila Nicolas Nationality: Swiss Address : Geneva, Switzerland	29,400	49.00
Mr. Anuparp Disyatat Nationality: Thai Address : 195 South Sathorn Road, Yannawa, Sathorn, Bangkok	1
Mr. Ukrit Dechsiri Nationality: Thai Address : 195 South Sathorn Road, Yannawa, Sathorn, Bangkok	1
Ms. Voravinyoo Champongsanti Nationality: Thai Address : 548/92 Chan Road, Bangklo, Bangkorlaem, Bangkok	1	= 0.01
Mr. . Eakkaraj Macharoen Nationality: Thai Address : 63/2468 Moo 7, Sapansung, Bangkok	1
Ms. Chureeporn Khampojjanapol Nationality: Thai Address : 745/4 Chan Road, Bangklo, Bangkorlaem, Bangkok	1

Total Shareholders : 7

Share Structure

[as at June 5, 2014]

Nationality	Shareholders	No. of Share	% Shares
Thai	6	30,600	51.00
Foreign-Swiss	1	29,400	49.00
Total	7	60,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Pradermsak Jaipetch No. 5496

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2016, 2015 and 2014 were:

ASSETS

Current Assets	2016	2015	2014
Cash and Cash Equivalents	4,284,609.89	3,620,751.91	395,785.28
Trade Accounts and Other Receivable	70,574,590.90	50,794,652.94	53,625,858.70
Short-term Loans	-	-	1,246,196.64
Inventories	20,929,369.27	21,865,867.23	18,089,735.00
Total Current Assets	95,788,570.06	76,281,272.08	73,357,575.62
Property, Plant and Equipment	1,800,663.52	1,413,973.88	2,698,097.41
Intangible Assets	331,015.81	197,241.50	271,340.71
Other Non-current Assets	231,359.79	231,359.79	231,359.79
Total Assets	98,151,609.18	78,123,847.25	76,558,373.53

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2016	2015	2014
Trade Accounts and Other Payable	31,085,108.27	13,611,260.77	14,707,513.71
Accrued Income Tax	363,405.34	360,199.15	588,339.54
Total Current Liabilities	31,448,513.61	13,971,459.92	15,295,853.25
Total Liabilities	31,448,513.61	13,971,459.92	15,295,853.25
Shareholders’ Equity
Share capital : Baht 100 par value authorized, and issued share capital 60,000 shares	6,000,000.00	6,000,000.00	6,000,000.00
Capital Paid	6,000,000.00	6,000,000.00	6,000,000.00
Retained Earning -Unappropriated [Deficit]	60,703,095.57	58,152,387.33	55,262,520.28
Total Shareholders’ Equity	66,703,095.57	64,152,387.33	61,262,520.28
Total Liabilities and Shareholders’ Equity	98,151,609.18	78,123,847.25	76,558,373.53

PROFIT & LOSS ACCOUNT

Revenue	2016	2015	2014
Sales or Services Income	105,528,344.45	103,136,845.60	107,169,540.85
Other Income	1,693,909.71	883,704.32	835,171.22
Total Revenues	107,222,254.16	104,020,549.92	108,004,712.07
Expenses
Cost of Goods Sold or Services	91,798,628.86	85,980,953.35	92,694,925.84
Selling Expenses	1,368,729.59	1,353,306.87	1,940,458.73
Administrative Expenses	10,740,782.13	13,036,223.50	9,492,512.57
Total Expenses	103,908,140.58	100,370,483.72	104,127,897.14
Profit /[Loss] before Income Tax	3,314,113.58	3,650,066.20	3,876,814.93
Income Tax	[763,405.34]	[760,199.15]	[968,339.54]
Net Profit / [Loss]	2,550,708.24	2,889,867.05	2,908,475.39

FINANCIAL ANALYSIS

ITEM	UNIT	2016	2015	2014
LIQUIDITY RATIO
CURRENT RATIO	TIMES	3.05	5.46	4.80
QUICK RATIO	TIMES	2.38	3.89	3.61
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	58.61	72.94	39.72
TOTAL ASSETS TURNOVER	TIMES	1.08	1.32	1.40
INVENTORY CONVERSION PERIOD	DAYS	83.22	92.82	71.23
INVENTORY TURNOVER	TIMES	4.39	3.93	5.12
RECEIVABLES CONVERSION PERIOD	DAYS	244.10	179.76	182.64
RECEIVABLES TURNOVER	TIMES	1.50	2.03	2.00
PAYABLES CONVERSION PERIOD	DAYS	123.60	57.78	57.91
CASH CONVERSION CYCLE	DAYS	203.72	214.80	195.96
PROFITABILITY RATIO
COST OF GOODS SOLD	%	86.99	83.37	86.49
SELLING & ADMINISTRATION	%	11.48	13.95	10.67
INTEREST	%	-	-	-
GROSS PROFIT MARGIN	%	14.62	17.49	14.29
NET PROFIT MARGIN BEFORE EX. ITEM	%	3.14	3.54	3.62
NET PROFIT MARGIN	%	2.42	2.80	2.71
RETURN ON EQUITY	%	3.82	4.50	4.75
RETURN ON ASSET	%	2.60	3.70	3.80
EARNING PER SHARE	BAHT	42.51	48.16	48.47
LEVERAGE RATIO
DEBT RATIO	TIMES	0.32	0.18	0.20
DEBT TO EQUITY RATIO	TIMES	0.47	0.22	0.25
TIME INTEREST EARNED	TIMES	-	-	-
ANNUAL GROWTH
SALES GROWTH	%	2.32	(3.76)
OPERATING PROFIT	%	(9.20)	(5.85)
NET PROFIT	%	(11.74)	(0.64)
FIXED ASSETS	%	27.35	(47.59)
TOTAL ASSETS	%	25.64	2.04

ANNUAL GROWTH: SATISFACTORY

An annual sales growth is 2.32%. Turnover has increased from THB 103,136,845.60 in 2015 to THB 105,528,344.45 in 2016. While net profit has decreased from THB 2,889,867.05 in 2015 to THB 2,550,708.24 in 2016. And total assets has increased from THB 78,123,847.25 in 2015 to THB 98,151,609.18 in 2016.

PROFITABILITY : IMPRESSIVE

PROFITABILITY RATIO

Gross Profit Margin	14.62	Acceptable	Industrial Average	37.64
Net Profit Margin	2.42	Impressive	Industrial Average	1.34
Return on Assets	2.60	Impressive	Industrial Average	2.12
Return on Equity	3.82	Satisfactory	Industrial Average	5.40

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 14.62%. 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. Net Profit Margin ratio is 2.42%, 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 2.6%, 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 3.82%.

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

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY : SATISFACTORY

LIQUIDITY RATIO

Current Ratio	3.05	Impressive	Industrial Average	1.84
Quick Ratio	2.38
Cash Conversion Cycle	203.72

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 3.05 times in 2016, decrease from 5.46 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 2.38 times in 2016, decrease from 3.89 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 204 days.

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

Current Ratio Uptrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.32	Impressive	Industrial Average	0.60
Debt to Equity Ratio	0.47	Impressive	Industrial Average	1.51
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 0.32 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 : IMPRESSIVE

ACTIVITY RATIO

Fixed Assets Turnover	58.61	Impressive	Industrial Average	-
Total Assets Turnover	1.08	Satisfactory	Industrial Average	1.59
Inventory Conversion Period	83.22
Inventory Turnover	4.39	Impressive	Industrial Average	2.75
Receivables Conversion Period	244.10
Receivables Turnover	1.50	Acceptable	Industrial Average	4.00
Payables Conversion Period	123.60

The company's Account Receivable Ratio is calculated as 1.50 and 2.03 in 2016 and 2015 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 2016 decreased from 2015. 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 93 days at the end of 2015 to 83 days at the end of 2016. This represents a positive trend. And Inventory turnover has increased from 3.93 times in year 2015 to 4.39 times in year 2016.

The company's Total Asset Turnover is calculated as 1.08 times and 1.32 times in 2016 and 2015 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	INR 64.37
UK Pound	1	INR 89.71
Euro	1	INR 78.89
Thai Baht	1	INR 2.03

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

INFORMATION DETAILS

Analysis Done by :	PRI
Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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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.