MIRA INFORM REPORT

Report No. :	497549
Report Date :	19.03.2018

IDENTIFICATION DETAILS

Name :	ORCHID HOLIDAY (THAILAND) CO., LTD.
Registered Office :	Room D, 7th Floor, Phayathai Plaza Building, 128/72 Phayathai Road, Thung Phayathai, Ratchathewi, Bangkok 10400
Country :	Thailand
Financials (as on) :	31.03.2017
Date of Incorporation :	17.05.2013
Com. Reg. No.:	0105556079705
Legal Form :	Private Limited Company
Line of Business :	The subject is engaged in travel business to provide hotel accommodation, air booking, group tour service according to clients’ requirements, sightseeing and transfer services worldwide.
No. of Employees :	10

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 :	Satisfactory
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
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

ORCHID HOLIDAY (THAILAND) CO., LTD.

SUMMARY

BUSINESS ADDRESS : ROOM D, 7^th FLOOR, PHAYATHAI PLAZA BUILDING,

128/72 PHAYATHAI ROAD, THUNG PHAYATHAI,

RATCHATHEWI, BANGKOK 10400, THAILAND

TELEPHONE : [66] 2129-3248, 2129-3250,

081 636-5053, 089 147-1353, 087 713-4445

FAX : [66] 2612-0616

E-MAIL ADDRESS : thailand@orchiddmc.net

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2013

REGISTRATION NO. : 0105556079705

TAX ID NO. : 3035831182

CAPITAL REGISTERED : BHT. 6,000,000

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

SHAREHOLDER’S PROPORTION : THAI : 51.00%

INDIAN : 49.00%

FISCAL YEAR CLOSING DATE : MARCH 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. NATTAWAT CHIEWCHANWICH, THAI

MANAGING DIRECTOR

NO. OF STAFF : 10

LINES OF BUSINESS : TRAVEL AGENCY

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 May 17, 2013 as a private limited company under the registered name ORCHID HOLIDAY (THAILAND) CO., LTD., by Thai and Indian groups, with the business objective to provide a wide range of travel services. It currently employs 10 staff.

The subject is a member of Orchid Global group, which is a worldwide supplier of hotel accommodation, sightseeing and transfer services to their partners across India and the globe. The system connects to over 200,000 hotels, more than 50,000 sightseeing attractions and transfers in over 1,000 cities.

The subject’s registered address is Room D, 7^th Floor, Phayathai Plaza Building, 128/72 Phayathai Road, Thung Phayathai, Ratchathewi, Bangkok 10400, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Nattawat Chiewchanwich	Thai	47

AUTHORIZED PERSON

The above director signs on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Nattawat Chiewchanwich is the Managing Director.

He is Thai nationality with the age of 47 years old.

BUSINESS OPERATIONS

The subject is engaged in travel business to provide hotel accommodation, air booking, group tour service according to clients’ requirements, sightseeing and transfer services worldwide.

PURCHASE

100% of purchasing is from local suppliers.

SALES/ SERVICES

Its service is served to tour and travel operators worldwide.

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 / services 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.

BANKING

N/A

EMPLOYMENT

The subject currently employs 10 staff.

LOCATION DETAILS

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

COMMENT

The subject’s operating performance as of March 31, 2017 has seen an improvement with an increase in sales or service income but a decrease in net profit comparing to the previous year, caused by higher expenses relatively. Nevertheless, its business is promising and growing in line with an increase in number of tourists and travel service yearly.

FINANCIAL INFORMATION

The capital was registered at Bht. 4,000,000 divided into 40,000 shares of Bht. 100

each with fully paid.

On January 3, 2018, the 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 December 28, 2017]

NAME	HOLDING	%
Mr. Nattawat Chiewchanwich Nationality: Thai Address : 222/5 Soi Ladprao 93 [Chokechai 3], Klongchaokhunsing, Wangthonglang, Bangkok	30,600	51.00
Mr. Manoj Kumar Mishra Nationality: Indian Address : New Delhi, India	14,700	24.50
Mr. Amitava Biswas Nationality: Indian Address : Kolkata, India	14,700	24.50

Total Shareholders : 3

Share Structure [as at December 28, 2017]

Nationality	Shareholders	No. of Share	% Shares
Thai	1	30,600	51.00
Foreign - Indian	2	29,400	49.00
Total	3	60,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Ms. Thanchanit Tantanasiriwong No. 10693

financial

BALANCE SHEET [BAHT]

The latest financial figures published for March 31, 2017, 2016 and 2015 were:

ASSETS

Current Assets	2017	2016	2015
Cash and Cash Equivalents	1,948,725.38	319,298.78	761,443.78
Short-term Investment	624,571.70	-	1,452,305.00
Trade Accounts and Other Receivable	8,208,278.50	616,161.22	-
Other Current Assets	1,068,382.58	320,588.78	59,343.73
Total Current Assets	11,849,958.16	1,256,048.78	2,273,092.51
Long-term Loans	-	1,570,496.35	1,570,496.35
Property, Plant and Equipment	9,447,983.19	6,161,392.72	1,224,760.07
Total Assets	21,297,941.35	8,987,937.85	5,068,348.93

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2017	2016	2015
Trade Accounts and Other Payable	1,792,024.44	1,116,664.44	201,774.96
Accrued Income Tax	148,842.02	70,892.43	-
Other Current Liabilities	637,140.18	122,128.47	126,708.73
Total Current Liabilities	2,578,006.64	1,309,685.34	328,483.69
Long-term Loan	10,400,000.00	-	-
Other Non-current Liabilities	3,023,358.62	2,564,183.51	504,437.56
Total Liabilities	16,001,365.26	3,873,868.85	832,921.25
Shareholders’ Equity
Share capital : Baht 100 par value authorized, and issued share capital 40,000 shares	4,000,000.00	4,000,000.00	4,000,000.00
Capital Paid	4,000,000.00	4,000,000.00	4,000,000.00
Retained Earning -Unappropriated [Deficit]	1,296,576.09	1,114,069.00	235,427.68
Total Shareholders’ Equity	5,296,576.09	5,114,069.00	4,235,427.68
Total Liabilities and Shareholders’ Equity	21,297,941.35	8,987,937.85	5,068,348.93

PROFIT & LOSS ACCOUNT

Revenue	2017	2016	2015
Sales or Services Income	37,321,162.90	22,262,358.58	18,766,955.76
Other Income	1,389,519.66	80,299.73	26,063.52
Total Revenues	38,710,682.56	22,342,658.31	18,793,019.28
Expenses
Cost of Goods Sold or Services	32,152,510.71	16,852,328.20	15,603,507.32
Selling Expenses	819,035.23	50,079.46	144,269.77
Administrative Expenses	5,109,985.72	4,376,187.62	2,833,191.16
Total Expenses	38,081,531.66	21,278,595.28	18,580,968.25
Profit /[Loss] before Financial Cost and Income Tax	629,150.90	1,064,063.03	212,051.03
Financial Cost	[265,919.16]	[113,529.05]	[16,142.52]
Profit /[Loss] before Income Tax	363,231.74	950,533.98	195,908.51
Income Tax	[180,724.65]	[71,892.66]	-
Net Profit / [Loss]	182,507.09	878,641.32	195,908.51

FINANCIAL ANALYSIS

ITEM	UNIT	2017	2016	2015
LIQUIDITY RATIO
CURRENT RATIO	TIMES	4.60	0.96	6.92
QUICK RATIO	TIMES	4.18	0.71	6.74
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	3.95	3.61	15.32
TOTAL ASSETS TURNOVER	TIMES	1.75	2.48	3.70
INVENTORY CONVERSION PERIOD	DAYS	-	-	-
INVENTORY TURNOVER	TIMES	-	-	-
RECEIVABLES CONVERSION PERIOD	DAYS	80.28	10.10	-
RECEIVABLES TURNOVER	TIMES	4.55	36.13	-
PAYABLES CONVERSION PERIOD	DAYS	20.34	24.19	4.72
CASH CONVERSION CYCLE	DAYS	59.93	(14.08)	(4.72)
PROFITABILITY RATIO
COST OF GOODS SOLD	%	86.15	75.70	83.14
SELLING & ADMINISTRATION	%	15.89	19.88	15.87
INTEREST	%	0.71	0.51	0.09
GROSS PROFIT MARGIN	%	17.57	24.66	17.00
NET PROFIT MARGIN BEFORE EX. ITEM	%	1.69	4.78	1.13
NET PROFIT MARGIN	%	0.49	3.95	1.04
RETURN ON EQUITY	%	3.45	17.18	4.63
RETURN ON ASSET	%	0.86	9.78	3.87
EARNING PER SHARE	BAHT	4.56	21.97	4.90
LEVERAGE RATIO
DEBT RATIO	TIMES	0.75	0.43	0.16
DEBT TO EQUITY RATIO	TIMES	3.02	0.76	0.20
TIME INTEREST EARNED	TIMES	2.37	9.37	13.14
ANNUAL GROWTH
SALES GROWTH	%	67.64	18.63
OPERATING PROFIT	%	(40.87)	401.80
NET PROFIT	%	(79.23)	348.50
FIXED ASSETS	%	53.34	403.07
TOTAL ASSETS	%	136.96	77.33

ANNUAL GROWTH : SATISFACTORY

An annual sales growth is 67.64%. Turnover has increased from THB 22,262,358.58 in 2016 to THB 37,321,162.90 in 2017. While net profit has decreased from THB 878,641.32 in 2016 to THB 182,507.09 in 2017. And total assets has increased from THB 8,987,937.85 in 2016 to THB 21,297,941.35 in 2017.

PROFITABILITY : ACCEPTABLE

PROFITABILITY RATIO

Gross Profit Margin	17.57	Impressive	Industrial Average	17.36
Net Profit Margin	0.49	Acceptable	Industrial Average	1.14
Return on Assets	0.86	Deteriorated	Industrial Average	4.90
Return on Equity	3.45	Deteriorated	Industrial Average	16.85

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. Gross Profit Margin is 17.57%. 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 0.49%. 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 0.86%.

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 3.45%.

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

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY : IMPRESSIVE

LIQUIDITY RATIO

Current Ratio	4.60	Impressive	Industrial Average	1.23
Quick Ratio	4.18
Cash Conversion Cycle	59.93

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 4.6 times in 2017, increase from 0.96 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 4.18 times in 2017, increase from 0.71 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 60 days.

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

Current Ratio Downtrend

LEVERAGE : IMPRESSIVE

LEVERAGE RATIO

Debt Ratio	0.75	Impressive	Industrial Average	0.76
Debt to Equity Ratio	3.02	Acceptable	Industrial Average	3.19
Times Interest Earned	2.37	Impressive	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 2.37 higher than 1, so the company can pay interest expenses on outstanding debt.

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 0.75 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 Uptrend

Times Interest Earned Stable

ACTIVITY : SATISFACTORY

ACTIVITY RATIO

Fixed Assets Turnover	3.95	Impressive	Industrial Average	-
Total Assets Turnover	1.75	Acceptable	Industrial Average	4.28
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	49.03
Receivables Conversion Period	80.28
Receivables Turnover	4.55	Satisfactory	Industrial Average	9.08
Payables Conversion Period	20.34

The company's Account Receivable Ratio is calculated as 4.55 and 36.13 in 2017 and 2016 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 2017 decreased from 2016. This would suggest the company had deteriorated in the management of its debt collections.

The company's Total Asset Turnover is calculated as 1.75 times and 2.48 times in 2017 and 2016 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 64.87
UK Pound	1	INR 90.49
Euro	1	INR 79.91
THB	1	INR 2.09

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

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TRU

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.