MIRA INFORM REPORT

Report No. :	510053
Report Date :	23.05.2018

IDENTIFICATION DETAILS

Name :	BARBE (THAILAND) LTD.
Registered Office :	64/71 Moo 4, Esie 16 Eastern Seaboard Industrial Estate T Pluakdaeng A Pluakdaeng Rayong 21140
Country :	Thailand
Financials (as on) :	31.12.2016
Date of Incorporation :	15.12.2000
Com. Reg. No.:	0105543114663
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Distributor and Exporter of Industrial Chemicals.
No. of Employees :	80

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 :	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 (30.09.2017)	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 AND ADDRESS

BARBE (THAILAND) LTD.

SUMMARY

BUSINESS ADDRESS : 64/71 MOO 4, EASTERN SEABOARD INDUSTRIAL

ESTATE, ESIE 16 ROAD, T. PLUAKDAENG,

A. PLUAKDAENG, RAYONG 21140, THAILAND

TELEPHONE : [66] 38 919-189, 38 955-580

FAX : [66] 38 955-582

E-MAIL ADDRESS : info@barbe.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2000

REGISTRATION NO. : 0105543114663 [Former : 1758/2543]

TAX ID NO. : 3030226136

CAPITAL REGISTERED : BHT. 40,000,000

CAPITAL PAID-UP : BHT. 40,000,000

SHAREHOLDER’S PROPORTION : THAI : 0.25%

GERMAN : 99.75%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. CHRISTIAN BARBE, GERMAN

MANAGING DIRECTOR

NO. OF STAFF : 80

LINES OF BUSINESS : INDUSTRIAL CHEMICALS

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 December 15, 2000 as a private limited company under the registered name BARBE (THAILAND) LTD. by Thai and German groups. Its business objective is a manufacturer of industrial chemicals with BOI promotion to both domestic and international markets. It currently employs approximately 80 staff.

Subject is a subsidiary of Barbe Beteiligungen GmbH, Germany.

The subject’s registered address is 64/71 Moo 4, Eastern Seaboard Industrial Estate, ESIE 16 Rd., T. Pluakdaeng, A. Pluakdaeng, Rayong 21140, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Thomas Barbe	[x]	German	71
Mr. Christian Barbe	[x]	German	40
Mr. Sumet Mingmongkolmitr		Thai	50
Mr. Rungchai Hongtong	[-]	Thai	62

AUTHORIZED PERSON

1. Any one of the mentioned directors [x] can sign on behalf of the subject with company’s affixed.

2. The director [-] can sign on behalf of the subject with company’s affixed except for (1) any transactions over Bht. 300,000;

(2) any agreement over Bht. 200,000 or agreement period exceeding 2 years;

(3) In case of employment contract over Bht. 1,000,000 per year, the mentioned director [-] can jointly sign with one of the rest directors on behalf of the subject with company’s affixed.

3. In case of contact to government sector, any one of the above directors can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Christian Barbe is the Managing Director.

He is German nationality with the age of 40 years old.

Mr. Sumet Mingmongkolmitr is the General Manager.

He is Thai nationality with the age of 50 years old.

Mr. Rungchai Hongtong is the Plant Manager.

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

BUSINESS OPERATIONS

The subject is engaged in manufacturing, distributing and exporting industrial chemicals, the main raw material for polymer, rubber and auto tire industries.

PRODUCTION CAPACITY

5,000 tons per annum

MAJOR BRAND

“BARBE”

PURCHASE

Most of raw materials and chemicals are purchased from local suppliers, the remaining are imported from Germany, Taiwan, Japan, Singapore and Republic of China.

MAJOR SUPPLIERS

Barbe Beteiligungen GmbH : Germany

BASF (Thai) Ltd. : Thailand

SALES

60% of the products is exported to Germany, Indonesia, India, Republic of China, Korea, Taiwan, Malaysia, Vietnam and Japan, the remaining 40% is sold locally.

MAJOR CUSTOMERS

Michelin Siam Group : Thailand

Deestone Co., Ltd. : Thailand

Goodyear (Thailand) Public Company Limited : Thailand

Goodyear South Asia Tyres Pvt. Ltd. : India

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 L/C at sight or T/T.

Exports are against T/T.

BANKING

Deutsche Bank AG.

[Bangkok Office, 208 Wireless Rd., Lumpini, Pathumwan, Bangkok]

Kasikornbank Public Company Limited

EMPLOYMENT

The subject employs approximately 80 staff.

LOCATION DETAILS

The premise is owned for administrative office and factory at the heading address. Premise is located in industrial area.

COMMENT

The subject’s business 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.

Improvement and recovery in some industries have been seen gradually which is a good sign. Generally, its business remains strong.

FINANCIAL INFORMATION

The capital was registered at Bht. 20,000,000 divided into 200 shares of Bht. 100,000 each with fully paid.

On November 19, 2002, the capital was increased to Bht. 40,000,000 divided into 400 shares of Bht. 100,000 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[As at April 28, 2017]

NAME	HOLDING	%
Barbe Beteiligungen GmbH Nationality: German Address : Alte Schmelze 2, D-65090 Wiesbaden, Germany	397	99.25
Mr. Christian Barbe Nationality: German Address : Postfach 13 03 64 D-65091, Wiesbaden, Germany	2	0.50
Mr. Sumet Mingmongkolmitr Nationality: Thai Address : 10/20 Isaraphap Rd., Banchanglor, Bangkoknoi, Bangkok	1	0.25

Total Shareholders: 3

Share Structure

[As at April 28, 2017]

Nationality	Shareholders	No. of Share	% Shares
Thai	1	1	0.25
Foreign-German	2	399	99.75
Total	3	400	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Nawarat Nitikeatipong No. 7789

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	69,998,440	58,034,241	47,171,264
Short-term Investment	4,022,902	-	-
Trade Accounts and Other Receivable	40,853,961	36,418,779	37,234,714
Inventories	39,200,995	42,200,508	57,413,763
Other Current Assets	1,500,203	891,591	5,666,550
Total Current Assets	155,576,501	137,545,119	147,486,291
Property, Plant and Equipment	113,824,203	120,953,832	127,525,674
Intangible Assets	4,757,998	2,909,932	1,142,934
Other Non-current Assets	1,147,704	239,210	239,210
Total Assets	275,306,406	261,648,093	276,394,109

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2016	2015	2014
Trade Accounts and Other Payable	18,740,208	27,029,788	35,854,409
Current Portion of Long-term Liabilities	-	10,000,000	15,452,828
Short-term Loans	-	-	20,177,600
Accrued Income Tax	3,510,156	2,297,232	1,300,906
Other Current Liabilities	542,426	449,129	7,075,016
Total Current Liabilities	22,792,790	39,776,149	79,860,759
Long-term Loans	20,000,000	20,000,000	30,000,000
Provision for Employee Benefits	2,462,730	2,315,607	1,336,015
Total Liabilities	45,255,520	62,091,756	111,196,774
Shareholders’ Equity
Share capital : Baht 100,000 par value authorized, and issued share capital 400 shares	40,000,000	40,000,000	40,000,000
Capital Paid	40,000,000	40,000,000	40,000,000
Retained Earning [Deficit]
Appropriated statutory reserve	1,000,000	1,000,000	1,000,000
Unappropriated	189,050,886	158,556,337	124,197,335
Total Shareholders’ Equity	230,050,886	199,556,337	165,197,335
Total Liabilities and Shareholders’ Equity	275,306,406	261,648,093	276,394,109

PROFIT & LOSS ACCOUNT

Revenue	2016	2015	2014
Sales or Services Income	224,789,306	218,232,137	248,033,526
Other Income	260,067	5,501,565	1,373,735
Total Revenues	225,049,373	223,733,702	249,407,261
Expenses
Cost of Goods Sold or Services	147,969,997	142,829,404	168,594,555
Selling Expenses	20,929,916	21,417,500	26,343,831
Administrative Expenses	17,958,435	18,952,490	20,066,542
Other Expenses	18,064	-	-
Total Expenses	186,876,412	183,199,394	215,004,928
Profit /[Loss] before Financial Cost and Income Tax	38,172,961	40,534,308	34,402,333
Financial Cost	[998,907]	[2,172,706]	[2,458,866]
Profit /[Loss] before Income Tax	37,174,054	38,361,602	31,943,467
Income Tax	[6,679,505]	[4,002,600]	[3,388,835]
Net Profit / [Loss]	30,494,549	34,359,002	28,554,632

FINANCIAL ANALYSIS

ITEM	UNIT	2016	2015	2014
LIQUIDITY RATIO
CURRENT RATIO	TIMES	6.83	3.46	1.85
QUICK RATIO	TIMES	5.04	2.37	1.06
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	1.97	1.80	1.94
TOTAL ASSETS TURNOVER	TIMES	0.82	0.83	0.90
INVENTORY CONVERSION PERIOD	DAYS	96.70	107.84	124.30
INVENTORY TURNOVER	TIMES	3.77	3.38	2.94
RECEIVABLES CONVERSION PERIOD	DAYS	66.34	60.91	54.79
RECEIVABLES TURNOVER	TIMES	5.50	5.99	6.66
PAYABLES CONVERSION PERIOD	DAYS	46.23	69.07	77.62
CASH CONVERSION CYCLE	DAYS	116.81	99.68	101.47
PROFITABILITY RATIO
COST OF GOODS SOLD	%	65.83	65.45	67.97
SELLING & ADMINISTRATION	%	17.30	18.50	18.71
INTEREST	%	0.44	1.00	0.99
GROSS PROFIT MARGIN	%	34.29	37.07	32.58
NET PROFIT MARGIN BEFORE EX. ITEM	%	16.98	18.57	13.87
NET PROFIT MARGIN	%	13.57	15.74	11.51
RETURN ON EQUITY	%	13.26	17.22	17.29
RETURN ON ASSET	%	11.08	13.13	10.33
EARNING PER SHARE	BAHT	76,236.37	85,897.51	71,386.58
LEVERAGE RATIO
DEBT RATIO	TIMES	0.16	0.24	0.40
DEBT TO EQUITY RATIO	TIMES	0.20	0.31	0.67
TIME INTEREST EARNED	TIMES	38.21	18.66	13.99
ANNUAL GROWTH
SALES GROWTH	%	3.00	(12.02)
OPERATING PROFIT	%	(5.83)	17.82
NET PROFIT	%	(11.25)	20.33
FIXED ASSETS	%	(5.89)	(5.15)
TOTAL ASSETS	%	5.22	(5.34)

ANNUAL GROWTH: ACCEPTABLE

An annual sales growth is 3%. Turnover has increased from THB 218,232,137.00 in 2015 to THB 224,789,306.00 in 2016. While net profit has decreased from THB 34,359,002.00 in 2015 to THB 30,494,549.00 in 2016. And total assets has increased from THB 261,648,093.00 in 2015 to THB 275,306,406.00 in 2016.

PROFITABILITY : EXCELLENT

PROFITABILITY RATIO

Gross Profit Margin	34.29	Impressive	Industrial Average	2.12
Net Profit Margin	13.57	Impressive	Industrial Average	4.31
Return on Assets	11.08	Impressive	Industrial Average	4.91
Return on Equity	13.26	Impressive	Industrial Average	8.63

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 34.29%. 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 13.57%, 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 11.08%, 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.

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 13.26%, 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	6.83	Impressive	Industrial Average	1.44
Quick Ratio	5.04
Cash Conversion Cycle	116.81

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 6.83 times in 2016, increase from 3.46 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 5.04 times in 2016, increase from 2.37 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 117 days.

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

Current Ratio Uptrend

LEVERAGE: EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.16	Impressive	Industrial Average	0.42
Debt to Equity Ratio	0.20	Impressive	Industrial Average	0.72
Times Interest Earned	38.21	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 lower the percentage means that the company is using less leverage and has a stronger equity position.

Times Interest Earned measuring a company's ability to meet its debt obligations. Ratio is 38.22 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 0.16 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	1.97	Impressive	Industrial Average	-
Total Assets Turnover	0.82	Satisfactory	Industrial Average	1.14
Inventory Conversion Period	96.70
Inventory Turnover	3.77	Satisfactory	Industrial Average	4.86
Receivables Conversion Period	66.34
Receivables Turnover	5.50	Satisfactory	Industrial Average	5.95
Payables Conversion Period	46.23

The company's Account Receivable Ratio is calculated as 5.50 and 5.99 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 108 days at the end of 2015 to 97 days at the end of 2016. This represents a positive trend. And Inventory turnover has increased from 3.38 times in year 2015 to 3.77 times in year 2016.

The company's Total Asset Turnover is calculated as 0.82 times and 0.83 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 68.02
UK Pound	1	INR 91.25
Euro	1	INR 80.07
Thai Baht	1	INR 2.13

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

INFORMATION DETAILS

Analysis Done by :	DIV
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)

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.