MIRA INFORM REPORT

Report Date :

28.02.2012

IDENTIFICATION DETAILS

Name :	CHOKCHAIPIBUL CO., LTD.
Registered Office :	2156 New Petchburi Road, Bangkapi, Huaykwang, Bangkok 10310
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	29.12.1988
Com. Reg. No.:	0105531102053
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Distributor and Exporter of Instant Noodles
No. of Employees :	180

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Thailand	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

CHOKCHAIPIBUL CO., LTD.

[THE DECENT NOODLES FACTORY]

SUMMARY

BUSINESS ADDRESS : 2156 NEW PETCHBURI ROAD, BANGKAPI,

HUAYKWANG, BANGKOK 10310

TELEPHONE : [66] 2318-0062

FAX : [66] 2716-6156, 2319-1678

E-MAIL ADDRESS : export@decentnoodles.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1988

REGISTRATION NO. : 0105531102053

CAPITAL REGISTERED : BHT. 1,020,000,000

CAPITAL PAID-UP : BHT. 1,020,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. BOON-AKE CHOKEWATTANA, THAI

PRESIDENT

NO. OF STAFF : 180

LINES OF BUSINESS : INSTANT NOODLES

MANUFACTURER, DISTRIBUTOR AND EXPORTER

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : GOOD WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH FAIR PERFORMANCE

HISTORY

The subject was established on December 29, 1988 as a private limited company under the registered name CHOKCHAIPIBUL CO., LTD. by Thai groups. Its business objective is to provide manufacturing service of instant noodle products in various styles to both domestic and international markets, under the name “The Decent Noodles Factory”. The subject is certified various international standards, e.g. GMP, HACCP, HALAL and ISO 9001 certificate. It currently employs approximate 180 staff.

The subject is also a wholly owned subsidiary of Saha Pathanapibul Public Company Limited, the Thailand’s leading consumer goods manufacturers.

The subject’s registered address is 2156 New Petchburi Rd., Bangkapi, Huaykwang, Bangkok 10310, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Boon-ake Chokewatana	Thai	79
Mr. Sombat Sangrangsan	Thai	67
Mr. Chalermpol Kamnerdsirikul	Thai	55
Mr. Prinya Sitthidamrong	Thai	52
Mrs. Siriporn Lekayavijit	Thai	62
Mrs. Isaraporn Atthachinda	Thai	53
Mrs. Siriwan Wongariyakavee	Thai	47

AUTHORIZED PERSON

Any two of the above directors can jointly sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Boon-ake Chokewatana is the President.

He is Thai nationality with the age of 79 years old.

Mr. Sombat Sangrangsan is the Managing Director.

He is Thai nationality with the age of 67 years old.

Mr. Prinya Sitthidamrong is the Production Manager.

He is Thai nationality with the age of 52 year old.

Mrs. Isaraporn Atthachinda is the Human Resources Manager.

She is Thai nationality with the age of 53 years old.

BUSINESS OPERATIONS

The subject is engaged in manufacturing service of instant noodles in various styles of packaging, under the brand “I-MEE” and variety OEM brands.

PURCHASE

100% of its raw materials is purchased from local supplier.

MAJOR SUPPLIER

Saha Pathanapibul Public Company Limited.

SALES/SERVICES

The products are sold and serviced to both local and overseas customers in many countries in Asia, Europe, Middle East and U.S.A.

PARENT COMPANY

Saha Pathanapibul Public Company Limited.

Address : 2156 New Petchburi Rd., Bangkapi, Huaykwang, Bangkok 10310

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 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.

Exports are against T/T.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 180 staff.

LOCATION DETAILS

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

Factory and warehouse are located at 255 Moo 5, Suwannasorn Rd., T. Nontri,

A. Kabinburi, Prachinburi 25100. Tel.: [66] 37 205-840-2, Fax. : [66] 37 205-839

REMARK

MAXIMUM CREDIT SHOULD BE GRANTED AT US$ 500,000.

COMMENT

Instant noodles have become a popular food in many parts of the world, undergoing changes in flavor to fit local tastes. Subject is one among various companies to produce instant noodles for international markets. Sales were increased significantly in the past years. It is also an economic indicator in which the theory was that the increase in sales of instant noodles, which are usually cheap, occurred because people could not afford more expensive foods.

FINANCIAL INFORMATION

The capital was registered at Bht. 10,000,000 divided into 100,000 shares of Bht. 100 each with fully paid.

The capital was increased later as follows:

Bht. 20,000,000 on October 30, 1991

Bht. 1,020,000,000 on December 3, 1999

The latest registered capital was increased to Bht. 1,020,000,000 divided into 10,200,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 29, 2011]

NAME	HOLDING	%
Saha Pathanapibul Public Company Limited Nationality: Thai Address : 2156 New Petchburi Rd., Bangkapi, Huaykwang, Bangkok 10310	10,199,994	100.00
Mr. Boonchai Chokewatana Nationality: Thai Address : 2/1 Sukhumvit Rd., Prakanong, Bangkok	1	-
Mr. Vethit Chokewatana Nationality: Thai Address : 99/75/2 Soi Pruksachart, Sapansung, Bangkok	1	-
Mr. Sombat Sangrangsan Nationality: Thai Address : 115 Pattanakarn 52 Rd., Suanluang, Bangkok	1	-
Mr. Prinya Sitthidamrong Nationality: Thai Address : 136/17 Nonsee Rd., Chongnonsi, Yannawa, Bangkok	1	-
Mrs. Phennapa Dhanasarnsilp Nationality: Thai Address : 1631/43 Chan Rd., Thungwatdon, Bangkok	1	-
Mr. Chalermpol Kamnerdsirikul Nationality: Thai Address : 67/2 Soi Sutthiporn, Dindaeng, Bangkok	1	-

Total Shareholders : 7

Share Structure [as at April 29, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	10,200,000	100.00
Foreign	-	-	-
Total	7	10,200,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mrs. Suvimol Kritayakian No. 2982

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2010 & 2009 were:

ASSETS

Current Assets	2010	2009
Cash and Cash Equivalent	3,173,778.44	8,192,048.55
Trade Accounts Receivable	11,438,260.19	108,878.58
Inventories	16,806,254.33	-
Other Current Assets	319,080.22	906,098.39
Total Current Assets	31,737,373.18	9,207,025.52
Investment in Fixed Assets	489,946,700.00	489,946,700.00
Fixed Assets	190,894.81	-
Intangible Assets	17,500.90	-
Other Assets	4,699,437.36	1,215,743.54
Total Assets	526,591,906.25	500,369,469.06

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2010	2009
Trade Accounts Payable	30,989,185.28	-
Accrued Value Added Tax	821,083.06	640,414.14
Accrued Expenses	4,590,689.59	2,665,108.61
Other Current Liabilities	448,990.73	235,514.01
Total Current Liabilities	36,849,948.66	3,541,036.76
Total Liabilities	36,849,948.66	3,541,036.76
Shareholders’ Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 10,200,000 shares	1,020,000,000.00	1,020,000,000.00
Capital Paid	1,020,000,000.00	1,020,000,000.00
Retained Earning Unappropriated	[530,258,042.41]	[523,171,567.70]
Total Shareholders' Equity	489,741,957.59	496,828,432.30
Total Liabilities & Shareholders' Equity	526,591,906.25	500,369,469.06

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Services Income	124,357,835.32	94,882,186.84
Sales Income	95,009,435.81	-
Other Income	92,987.37	10,911.88
Total Revenues	219,460,258.50	94,893,098.72
Expenses
Cost of Services	112,200,454.54	85,292,210.77
Cost of Goods Sold	109,560,625.84	-
Administrative Expenses	4,785,652.83	3,997,352.03
Total Expenses	226,546,733.21	89,289,562.80
Profit before Income Tax	[7,086,474.71]	5,603,535.92
Income Tax	-	[1,758,990.03]
Net Profit / [Loss]	[7,086,474.71]	3,844,545.89

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.86	2.60
QUICK RATIO	TIMES	0.40	2.34
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	1,149.15	-
TOTAL ASSETS TURNOVER	TIMES	0.42	0.19
INVENTORY CONVERSION PERIOD	DAYS	27.66	-
INVENTORY TURNOVER	TIMES	13.20	-
RECEIVABLES CONVERSION PERIOD	DAYS	19.03	0.42
RECEIVABLES TURNOVER	TIMES	19.18	871.45
PAYABLES CONVERSION PERIOD	DAYS	51.01	-
CASH CONVERSION CYCLE	DAYS	(4.31)	0.42
PROFITABILITY RATIO
COST OF GOODS SOLD	%	101.09	89.89
SELLING & ADMINISTRATION	%	2.18	4.21
INTEREST	%	-	-
GROSS PROFIT MARGIN	%	(1.05)	10.12
NET PROFIT MARGIN BEFORE EX. ITEM	%	(3.23)	5.91
NET PROFIT MARGIN	%	(3.23)	4.05
RETURN ON EQUITY	%	(1.45)	0.77
RETURN ON ASSET	%	(1.35)	0.77
EARNING PER SHARE	BAHT	(0.69)	0.38
LEVERAGE RATIO
DEBT RATIO	TIMES	0.07	0.01
DEBT TO EQUITY RATIO	TIMES	0.08	0.01
TIME INTEREST EARNED	TIMES	-	-
ANNUAL GROWTH
SALES GROWTH	%	131.20
OPERATING PROFIT	%	(226.46)
NET PROFIT	%	(284.33)
FIXED ASSETS	%	-
TOTAL ASSETS	%	5.24

PROFITABILITY RATIO

Gross Profit Margin	(1.05)	Deteriorated	Industrial Average	18.76
Net Profit Margin	(3.23)	Deteriorated	Industrial Average	5.80
Return on Assets	(1.35)	Deteriorated	Industrial Average	9.86
Return on Equity	(1.45)	Deteriorated	Industrial Average	16.56

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 -1.05%. When compared with the industry average, the ratio of the company was lower, indicated that company was originated from the 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 -3.23%. 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 -1.35%.

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 -1.45%.

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

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY RATIO

Current Ratio	0.86	Risky	Industrial Average	1.59
Quick Ratio	0.40
Cash Conversion Cycle	(4.31)

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 0.86 times in 2010, decreased from 2.6 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 0.4 times in 2010, decreased from 2.34 times, then the company has not enough current assets that presumably can be quickly converted to cash for pay financial obligations.

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 -5 days.

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

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.07	Impressive	Industrial Average	0.38
Debt to Equity Ratio	0.08	Impressive	Industrial Average	0.61
Times Interest Earned	-		Industrial Average	8.65

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 0.07 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 Uptrend

ACTIVITY RATIO

Fixed Assets Turnover	1,149.15	Impressive	Industrial Average	2.92
Total Assets Turnover	0.42	Deteriorated	Industrial Average	1.70
Inventory Conversion Period	27.66
Inventory Turnover	13.20	Impressive	Industrial Average	4.19
Receivables Conversion Period	19.03
Receivables Turnover	19.18	Impressive	Industrial Average	5.46
Payables Conversion Period	51.01

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

Fixed Assets Turnover Uptrend

Total Assets Turnover Uptrend

Inventory Turnover Downtrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.05
UK Pound	1	Rs.77.78
Euro	1	Rs.65.89

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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.