MIRA INFORM REPORT

Report No. :	500621
Report Date :	30.03.2018

IDENTIFICATION DETAILS

Name :	DARAMIC (THAILAND) LIMITED
Registered Office :	227 Moo 7, 304 Industrial Park, T. Thatoom, A. Srimahaphote, Prachinburi 25140
Country :	Thailand
Financials (as on) :	31.03.2017
Date of Incorporation :	21.01.1997
Com. Reg. No.:	0105540007581
Legal Form :	Private Limited Company
Line of Business :	The subject is engaged in manufacturing, distributing and exporting plastic sheets for automobile battery inner separation. Its products are Polyethylene Separators, Plastic Separator and etc., as well as providing manufacturing service of the products according to customer’s requirement.
No. of Employees :	490

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+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
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

DARAMIC (THAILAND) LIMITED

SUMMARY

BUSINESS ADDRESS : 227 MOO 7, 304 INDUSTRIAL PARK,

T. THATOOM, A. SRIMAHAPHOTE,

PRACHINBURI 25140, THAILAND

TELEPHONE : [66] 38 270-800

FAX : [66] 38 270-888, 37 270-889

E-MAIL ADDRESS : tnwangwan@daramic.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1997

REGISTRATION NO. : 0105540007581

TAX ID NO. : 3011809228

CAPITAL REGISTERED : BHT. 936,000,000

CAPITAL PAID-UP : BHT. 936,000,000

SHAREHOLDER’S PROPORTION : FOREIGN : 100%

FISCAL YEAR CLOSING DATE : MARCH 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. SANG SAELAO, THAI

MANAGING DIRECTOR

NO. OF STAFF : 490

LINES OF BUSINESS : PLASTIC SHEETS FOR BATTERY INNER

SEPARATION

MANUFACTURER, DISTRIBUTOR AND EXPORTER

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 January 21, 1997 as a private limited company under the registered name DARAMIC (THAILAND) LIMITED by foreign groups, with the business objective to manufacture plastic sheets for automobile battery inner separation to both domestic and overseas markets. The subject has been granted a promotional privilege by the Board of Investment [BOI]. It currently employs approximately 490 staff.

Presently, subject is a wholly owned subsidiary of Polypore Europe Services GmbH & Co. KG, Germany.

The subject’s registered address is 227 Moo 7, 304 Industrial Park, T. Thatoom,

A. Srimahaphote, Prachinburi 25140, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Shigeki Takayama		Japanese	62
Mr. Bryan Keith Moorehead		American	51
Mrs. Sheryl Lynn Smith		American	48
Mr. Sang Saelao	[x]	Thai	45

AUTHORIZED PERSON

1. Any two of the above directors can jointly sign on behalf of the subject with company’s affixed.
2. In case of contact to the government sector, the mentioned director [x] signs on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Sang Saelao is the Managing Director.

He is Thai nationality with the age of 45 years old.

Mr. Shigeki Takayama is the Deputy Managing Director and Factory Manager.

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

Mr. Bryan Keith Moorehead is the Deputy Managing Director / Sales &

Marketing Manager.

He is American nationality with the age of 51 years old.

BUSINESS OPERATIONS

The subject is engaged in manufacturing, distributing and exporting plastic sheets for automobile battery inner separation. Its products are Polyethylene Separators, Plastic Separator and etc., as well as providing manufacturing service of the products according to customer’s requirement.

PRODUCTION CAPACITY

Approximately 90,000,000 square meters per annum

BRAND NAMES

“DARAMIC” and “DARAK”

PURCHASE

Most of raw materials mainly PVC resins [PE] are purchased from local suppliers, and the remaining is imported from Germany, U.S.A., Republic of China, Singapore, Malaysia, Taiwan, India and Japan.

MAJOR SUPPLIERS

IRPC Public Company Limited : Thailand

Polypore International Inc. : U.S.A.

Daramic Inc. : U.S.A.

Asahi Kasei Corporation : Japan

Inabata Thai Co., Ltd. : Thailand

SALES

80% of the products is exported to Australia, U.S.A., Republic of China, Taiwan, Malaysia, India, Indonesia, Japan, Korea, Singapore, Vietnam, Brazil and countries in Europe, and the remaining 20% is sold and serviced locally.

MAJOR CUSTOMERS

Sorfin Yoshimura Tokyo Ltd. : Japan

Daramic Inc. : U.S.A.

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 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 L/C at sight or T/T.

Exports are against T/T.

BANKING

The Siam Commercial Bank Public Company Limited

EMPLOYMENT

The subject employs approximately 490 office staff and factory workers.

LOCATION DETAILS

The premise is owned for administrative office, factory and warehouse on 624,000 square meters of land at the heading address. Premise is located in industrial area.

Branches :

- 108 Moo 1, T. Ladtakian, A. Kabinburi, Prachinburi 25110

- 719/4 Moo 1, T. Nongkam, A. Sriracha, Chonburi 20280

- 1/1 Moo 2, T. Khaohinsorn, A. Panomsarakam, Chachoengsao 24120

COMMENT

The company manufactures plastic sheets for battery inner separation for automobile industry. Its products are Polyethylene Separators, Plastic Separator and etc. The products and technologies are used in primary segments such as energy storage. The energy storage segment is lithium batteries and lead-acid batteries. Lithium batteries are the power source in a wide variety of electronics applications ranging from notebook computers and mobile phones to cordless power tools, and are emerging in applications such as electric drive vehicle ("EDV") and electricity grid storage.

The subject’s operating performance as of March 31, 2017 was impressive with an increase in both sales or service income and a net profit comparing to the previous year. The subject’s business is solid and growing significantly.

FINANCIAL INFORMATION

The capital was registered at Bht. 1,000,000 divided into 200,000 shares of Bht. 5 each.

The capital was increased later as following:

Bht. 736,000,000 on January 6, 1998

Bht. 936,000,000 on October 18, 2005

The latest registered capital was increased to Bht. 936,000,000 divided into 187,200,000 shares of Bht. 5 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at August 31, 2017]

NAME	HOLDING	%
Polypore Europe Services GmbH & Co. KG Nationality: German Address : Erlengang 31, 22844 Norderstedt, Germany	187,199,996	100.00
Daramic Inc. Nationality: American Address : 20 Burlington Mall Road, Suite 325 Burlington M.A. 01803, U.S.A.	1	-
Mr. Bryan Keith Moorehead Nationality: American Address : 739 Lingfield Lane, Waxhow, North Carolina 28173-9852, U.S.A.	1	-
Mr. Puvanath Wiputhanuphongs Nationality: Thai Address : 71/549 Moo 4, T. Lakhok, A. Muang, Pathumthani	1	-
Mrs. Sheryl Lynn Smith Nationality: American Address : 6504 Lynn Avn., Charlotte, North Carolina 28226, U.S.A.	1	-

Total Shareholders : 5

SHARE STRUCTURE [AS AT AUGUST 31, 2017]

Nationality	Shareholders	No. of Share	% Shares
Thai	1	1	-
Foreign	4	187,199,999	100.00
Total	5	187,200,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mrs. Anutai Poomsurakul No. 3873

FINANCIALS

DARAMIC (THAILAND) LIMITED

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2017	2016	2015
Cash and Cash Equivalents	859,109,622	759,302,646	706,748,073
Trade Accounts and Other Receivable	801,528,216	757,833,069	669,779,899
Inventories	185,177,260	185,776,329	192,921,539
Other Current Assets	10,874,366	12,544,477	10,570,530
Total Current Assets	1,856,689,464	1,715,456,521	1,580,020,041
Long-term Loan	398,231,600	433,371,552	428,294,880
Property, Plant and Equipment	677,676,136	641,317,996	640,002,241
Intangible Assets	38,466,644	-	-
Other Non-current Assets	3,279,735	3,279,735	3,279,735
Total Assets	2,974,343,579	2,793,425,804	2,651,596,897

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2017	2016	2015
Trade Accounts and Other Payable	279,794,646	196,894,864	165,272,621
Accrued Income Tax	23,809,639	34,095,740	22,024,262
Other Current Liabilities	5,049,918	47,714,737	38,778,385
Total Current Liabilities	308,654,203	278,705,341	226,075,268
Provision for Employee Benefits	16,409,318	15,135,599	14,394,586
Total Liabilities	325,063,521	293,840,940	240,469,854
Shareholders' Equity
Share capital : Baht 5 par value authorized, issued and fully paid share capital 187,200,000 shares	936,000,000	936,000,000	936,000,000
Capital Paid	936,000,000	936,000,000	936,000,000
Retained Earnings: Appropriated for Statutory Reserve	86,848,119	72,303,466	70,993,066
Unappropriated	1,626,431,939	1,491,281,398	1,404,133,977
Total Shareholders' Equity	2,649,280,058	2,499,584,864	2,411,127,043
Total Liabilities and Shareholders' Equity	2,974,343,579	2,793,425,804	2,651,596,897

PROFIT & LOSS ACCOUNT

Revenue	2017	2016	2015
Sales or Services Income	2,008,117,259	552,992,337	1,931,431,885
Other Income	18,297,579	4,303,833	57,446,519
Total Revenues	2,026,414,838	557,296,170	1,988,878,404
Expenses
Cost of Goods Sold or Services	1,236,542,581	324,044,497	1,253,281,958
Selling Expenses	96,616,690	22,819,929	87,266,282
Administrative Expenses	163,032,092	62,487,464	168,924,545
Other Expenses	58,368,594	21,206,982	-
Total Expenses	1,554,559,957	430,558,872	1,509,472,785
Profit / [Loss] before Income Tax	471,854,881	126,737,298	479,405,619
Income Tax	[45,811,282]	[12,071,478]	[35,736,799]
Net Profit / [Loss]	426,043,599	114,665,820	443,668,820

DARAMIC (THAILAND) LIMITED

FINANCIAL ANALYSIS

ITEM	UNIT	2017	2016	2015
LIQUIDITY RATIO
CURRENT RATIO	TIMES	6.02	6.16	6.99
QUICK RATIO	TIMES	5.38	5.44	6.09
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	2.96	0.86	3.02
TOTAL ASSETS TURNOVER	TIMES	0.68	0.20	0.73
INVENTORY CONVERSION PERIOD	DAYS	54.66	209.26	56.19
INVENTORY TURNOVER	TIMES	6.68	1.74	6.50
RECEIVABLES CONVERSION PERIOD	DAYS	145.69	500.20	126.57
RECEIVABLES TURNOVER	TIMES	2.51	0.73	2.88
PAYABLES CONVERSION PERIOD	DAYS	82.59	221.78	48.13
CASH CONVERSION CYCLE	DAYS	117.76	487.68	134.63
PROFITABILITY RATIO
COST OF GOODS SOLD	%	61.58	58.60	64.89
SELLING & ADMINISTRATION	%	12.93	15.43	13.26
INTEREST	%	-	-	-
GROSS PROFIT MARGIN	%	39.33	42.18	38.09
NET PROFIT MARGIN BEFORE EX. ITEM	%	23.50	22.92	24.82
NET PROFIT MARGIN	%	21.22	20.74	22.97
RETURN ON EQUITY	%	16.08	4.59	18.40
RETURN ON ASSET	%	14.32	4.10	16.73
EARNING PER SHARE	BAHT	2.28	0.61	2.37
LEVERAGE RATIO
DEBT RATIO	TIMES	0.11	0.11	0.09
DEBT TO EQUITY RATIO	TIMES	0.12	0.12	0.10
TIME INTEREST EARNED	TIMES	-	-	-
ANNUAL GROWTH
SALES GROWTH	%	263.14	(71.37)
OPERATING PROFIT	%	272.31	(73.56)
NET PROFIT	%	271.55	(74.16)
FIXED ASSETS	%	5.67	0.21
TOTAL ASSETS	%	6.48	5.35

ANNUAL GROWTH : EXCELLENT

An annual sales growth is 263.14%. Turnover has increased from THB 552,992,337.00 in 2016 to THB 2,008,117,259.00 in 2017. While net profit has increased from THB 114,665,820.00 in 2016 to THB 426,043,599.00 in 2017. And total assets has increased from THB 2,793,425,804.00 in 2016 to THB 2,974,343,579.00 in 2017.

PROFITABILITY : EXCELLENT

PROFITABILITY RATIO

Gross Profit Margin	39.33	Impressive	Industrial Average	21.91
Net Profit Margin	21.22	Impressive	Industrial Average	8.45
Return on Assets	14.32	Impressive	Industrial Average	6.69
Return on Equity	16.08	Impressive	Industrial Average	9.91

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 39.33%. 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. Net Profit Margin ratio is 21.22%, 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 14.32%, 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. Return on Equity ratio is 16.08%, 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.

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	6.02	Impressive	Industrial Average	2.23
Quick Ratio	5.38
Cash Conversion Cycle	117.76

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 6.02 times in 2017, decrease from 6.16 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 5.38 times in 2017, decrease from 5.44 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 118 days.

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

Current Ratio Uptrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.11	Impressive	Industrial Average	0.31
Debt to Equity Ratio	0.12	Impressive	Industrial Average	0.44
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 0.11 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	2.96	Impressive	Industrial Average	-
Total Assets Turnover	0.68	Satisfactory	Industrial Average	0.79
Inventory Conversion Period	54.66
Inventory Turnover	6.68	Impressive	Industrial Average	4.42
Receivables Conversion Period	145.69
Receivables Turnover	2.51	Satisfactory	Industrial Average	4.15
Payables Conversion Period	82.59

The company's Account Receivable Ratio is calculated as 2.51 and 0.73 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 increased from 2016. This would suggest the company had good performance 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 209 days at the end of 2016 to 55 days at the end of 2017. This represents a positive trend. And Inventory turnover has increased from 1.74 times in year 2016 to 6.68 times in year 2017.

The company's Total Asset Turnover is calculated as 0.68 times and 0.2 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 Downtrend

Inventory Turnover Downtrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.04
UK Pound	1	INR 92.28
Euro	1	INR 80.62
Thai baht	1	INR 2.08

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

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	SYL

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)

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.