MIRA INFORM REPORT

Report No. :	510041
Report Date :	18.05.2018

IDENTIFICATION DETAILS

Name :	R CUBE (THAILAND) COMPANY LIMITED

Registered Office :	27^th A/1 Amigo Tower, 388 Siphaya Road, Mahapruaram, Bangrak, Bangkok 10500

Country :	Thailand

Financials (as on) :	31.12.2016

Date of Incorporation :	14.07.2015

Com. Reg. No.:	0105558114788

Legal Form :	Private Limited Company

Line of Business :	The subject is engaged in manufacturing, distributing and exporting of aluminum alloy ingots.

No. of Employees :	45

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
C	Medium High Risk	Business dealings permissible preferably on secured basis

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Thailand

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

R CUBE (THAILAND) COMPANY LIMITED

SUMMARY

BUSINESS ADDRESS : 27^th A/1 AMIGO TOWER, 388 SIPHAYA ROAD,

MAHAPRUARAM, BANGRAK, BANGKOK 10500,

THAILAND

TELEPHONE : [66] 2235-4763, 099 426-8222, 088 902-8070,

095 716-9340

FAX : -

E-MAIL ADDRESS : rcubethailand@gmail.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2015

REGISTRATION NO. : 0105558114788

TAX ID NO. : 3037144990

CAPITAL REGISTERED : BHT. 2,000,000

CAPITAL PAID-UP : BHT. 2,000,000

SHAREHOLDER’S PROPORTION : THAI : 90.00%

INDIAN : 10.00%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MS. WARATSAYAPORN PONNAAPHABUNYARAT,

THAI

MANAGING DIRECTOR

NO. OF STAFF : 45

LINES OF BUSINESS : ALUMINIUM ALLOY INGOTS

MANUFACTURER, DISTRIBUTOR AND EXPORTER

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 July 14, 2015 as a private limited company under the registered name R CUBE (THAILAND) COMPANY LIMITED, by Thai and Indian groups, with the business objective to manufacture and distribute aluminium alloy ingots to both domestic and international markets. It currently employs 45 staff.

The subject’s registered address was initially located at Room 30-01 Unit 3049, 30^th Floor, Chartered Square Building, North Sathorn Road, Silom, Bangrak, Bangkok 10500.

On May 16, 2016, its registered address was relocated to 27^th A/1, Amigo Tower, 388 Siphaya Road, Mahaprutaram, Bangrak, Bangkok 10500, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age

Ms. Waratsayaporn Ponnaaphabunyarat	Thai	41

AUTHORIZED PERSON

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

MANAGEMENT

Ms. Waratsayaporn Ponnaaphabunyarat is the Managing Director.

She is Thai nationality with the age of 41 years old.

Mr. Rajesh Kalyan Kumar Dhandapani is the Deputy Managing Director.

He is Indian nationality.

BUSINESS OPERATIONS

The subject is engaged in manufacturing, distributing and exporting of aluminum alloy ingots.

PRODUCTION CAPACITY

1,000 tons per month.

PURCHASE

100% of raw materials and chemicals is purchased from local supplier.

SALES

The products are sold by wholesale to manufacturer and end-users both local and overseas in India, Indonesia and Malaysia.

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.

Exports are against T/T.

BANKING

Kasikornbank Public Company Limited

EMPLOYMENT

The subject currently employs 45 staff.

LOCATION DETAILS

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

Factory and warehouse are located in Samutsakorn province.

COMMENT

Despite an increase in sales or service income in 2016, the subject obtained a net loss the year end. The loss was caused by higher operating expenses which eroded the profit margin. Nevertheless, the subject expects a good business this year from effective market expansion in domestic 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 SHAREHOLDERS LISTED WERE

[as at June 21, 2017]

NAME	HOLDING	%

Ms. Waratsayaporn Ponnaaphabunyarat Nationality: Thai Address : 33/26 Nonsee Road, Chongnonsi, Yannawa, Bangkok	14,000	70.00
Ms. Russarin wiwatanacharoenchai Nationality: Thai Address : 381 Soi Therdthai 21, Bangyeerua, Thonburi, Bangkok	4,000	20.00
Mr. Rajesh Kalyan Kumar Dhandapani Nationality: Indian Address : The Master Sathorn, Krungthonburi Road, Klongtonsai, Klongsan, Bangkok	2,000	10.00

Total Shareholders : 3

Share Structure

[As at June 21, 2017]

Nationality	Shareholders	No. of Share	% Shares

Thai	2	18,000	90.00
Foreign-Indian	1	2,000	10.00
Total	3	20,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Piyawan Chaiwong No. 9171

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2016	2015

Cash and Cash Equivalents	8,069,595.96	1,279,347.10
Trade Accounts and Other Receivable	11,023,084.04	6,187,278.58
Other Current Assets	30,723.06	22,317.76
Total Current Assets	19,123,403.06	7,488,943.44

Long-term Loans	1,500,000.00	1,500,000.00
Property, Plant and Equipment	548,294.33	172,779.07
Other Non-current Assets	308,685.15	74,348.88
Total Assets	21,480,382.54	9,236,071.39

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2016	2015

Bank Overdraft and Short-term Loan From Financial Institutions	478,268.09	-
Trade Accounts and Other Payable	16,024,277.36	6,762,463.14
Other Current Liabilities	4,657,193.95	78,047.54
Total Current Liabilities	21,159,739.40	6,840,510.68

Other Non-current Liabilities	283,514.17	-
Total Liabilities	21,443,253.57	6,840,510.68

Shareholders’ Equity

Share capital : Baht 100 par value authorized, and issued share capital 20,000 shares	2,000,000.00	2,000,000.00
Capital Paid	2,000,000.00	2,000,000.00
Retained Earning -Unappropriated [Deficit]	[1,962,871.03]	395,560.71
Total Shareholders’ Equity	37,128.97	2,395,560.71
Total Liabilities and Shareholders’ Equity	21,480,382.54	9,236,071.39

PROFIT & LOSS ACCOUNT

Revenue	2016	2015

Sales or Services Income	98,117,777.76	21,828,287.32
Other Income	1,587,482.37	357,101.41
Total Revenues	99,705,260.13	22,185,388.73
Expenses

Cost of Goods Sold or Services	89,240,179.00	18,515,090.50
Selling Expenses	8,323,318.00	2,641,151.53
Administrative Expenses	3,995,254.79	619,918.84
Total Expenses	101,558,751.79	21,776,160.87

Profit /[Loss] before Financial Cost and Income Tax	[1,853,491.66]	409,227.86
Financial Cost	[504,940.08]	-

Profit /[Loss] before Income Tax	[2,358,431.74]	409,227.86
Income Tax	-	[13,667.15]
Net Profit / [Loss]	[2,358,431.74]	395,560.71

FINANCIAL ANALYSIS

ITEM	UNIT	2016	2015

LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.90	1.09
QUICK RATIO	TIMES	0.90	1.09

ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	178.95	126.34
TOTAL ASSETS TURNOVER	TIMES	4.57	2.36
INVENTORY CONVERSION PERIOD	DAYS	-	-
INVENTORY TURNOVER	TIMES	-	-
RECEIVABLES CONVERSION PERIOD	DAYS	41.01	103.46
RECEIVABLES TURNOVER	TIMES	8.90	3.53
PAYABLES CONVERSION PERIOD	DAYS	65.54	133.31
CASH CONVERSION CYCLE	DAYS	(24.53)	(29.85)

PROFITABILITY RATIO
COST OF GOODS SOLD	%	90.95	84.82
SELLING & ADMINISTRATION	%	12.55	14.94
INTEREST	%	0.51	-
GROSS PROFIT MARGIN	%	10.67	16.81
NET PROFIT MARGIN BEFORE EX. ITEM	%	(1.89)	1.87
NET PROFIT MARGIN	%	(2.40)	1.81
RETURN ON EQUITY	%	(6,352.00)	16.51
RETURN ON ASSET	%	(10.98)	4.28
EARNING PER SHARE	BAHT	(117.92)	19.78

LEVERAGE RATIO
DEBT RATIO	TIMES	1.00	0.74
DEBT TO EQUITY RATIO	TIMES	577.53	2.86
TIME INTEREST EARNED	TIMES	(3.67)	-

ANNUAL GROWTH
SALES GROWTH	%	349.50	-
OPERATING PROFIT	%	(552.92)	-
NET PROFIT	%	(696.22)	-
FIXED ASSETS	%	217.34	-
TOTAL ASSETS	%	132.57	-

PROFITABILITY : RISKY

PROFITABILITY RATIO

Gross Profit Margin	10.67	Acceptable	Industrial Average	28.85
Net Profit Margin	(2.40)	Deteriorated	Industrial Average	3.63
Return on Assets	(10.98)	Deteriorated	Industrial Average	5.20
Return on Equity	(6,352.00)	Deteriorated	Industrial Average	9.35

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 10.67%. 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. The company's figure is -2.4%. 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 -10.98%.

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 -6352%.

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

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY : ACCEPTABLE

LIQUIDITY RATIO

Current Ratio	0.90	Risky	Industrial Average	1.83
Quick Ratio	0.90
Cash Conversion Cycle	(24.53)

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 0.9 times in 2016, decrease from 1.09 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 0.9 times in 2016, decrease from 1.09 times, by excluding inventory, the company may have problems meeting current liabilities.

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 -25 days.

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

Current Ratio Uptrend

LEVERAGE : RISKY

LEVERAGE RATIO

Debt Ratio	1.00	Acceptable	Industrial Average	0.43
Debt to Equity Ratio	577.53	Risky	Industrial Average	0.76
Times Interest Earned	(3.67)	Risky	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 -3.68 lower than 1, so the company is not generating enough cash from EBIT to meet its interest obligations.

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 1 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 Downtrend

Times Interest Earned Stable

ACTIVITY : EXCELLENT

ACTIVITY RATIO

Fixed Assets Turnover	178.95	Impressive	Industrial Average	-
Total Assets Turnover	4.57	Impressive	Industrial Average	1.43
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	3.46
Receivables Conversion Period	41.01
Receivables Turnover	8.90	Impressive	Industrial Average	4.70
Payables Conversion Period	65.54

The company's Account Receivable Ratio is calculated as 8.90 and 3.53 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 increased from 2015. This would suggest the company had good performance in the management of its debt collections.

The company's Total Asset Turnover is calculated as 4.57 times and 2.36 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 67.72
UK Pound	1	INR 91.65
Euro	1	INR 79.89
Thai Baht	1	INR 2.11

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

INFORMATION DETAILS

Analysis Done by :	VAR

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.