MIRA INFORM REPORT

Report Date :

12.11.2014

IDENTIFICATION DETAILS

Name :	SIAM POONGSAN METAL COMPANY LIMITED
Registered Office :	38/14 Moo 5, Laemchabang Industrial Estate, T. Tungsukla, A. Sriracha, Chonburi 20230
Country :	Thailand
Financials (as on) :	31.12.2013
Date of Incorporation :	12.10.2000
Com. Reg. No.:	0105543096479
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Distributor and Exporter of Rolled Copper and Copper Alloy Products.
No. of Employees :	800

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Thailand	B1	B1

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

THAILAND - ECONOMIC OVERVIEW

With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government in 2013 implemented a nation-wide 300 baht ($10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years. The global economic recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the following seven years. This was expected to lead to an economic upsurge but growth has remained slow, in part due to ongoing political unrest and resulting uncertainties. Spending on infrastructure will require re-approval once a new government is seated.

Source : CIA

Company Name

SIAM POONGSAN METAL COMPANY LIMITED

Summary

BUSINESS ADDRESS : 38/14 MOO 5, LAEMCHABANG INDUSTRIAL ESTATE,

T. THUNGSUKLA, A. SRIRACHA, CHONBURI 20230,

THAILAND

TELEPHONE : [66] 38 400-056-8, 38 401-823-4, 38 401-934-5,

083 199-7470

FAX : [66] 38 490-325, 38 490-328

E-MAIL ADDRESS : info@siam-poongsan.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2000

REGISTRATION NO. : 0105543096479

TAX ID NO. : 3030174666

CAPITAL REGISTERED : BHT. 800,000,000

CAPITAL PAID-UP : BHT. 800,000,000

SHAREHOLDER’S PROPORTION : KOREAN : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. JE WON WOO, KOREAN

MANAGING DIRECTOR

NO. OF STAFF : 800

LINES OF BUSINESS : ROLLED COPPER AND COPPER ALLOY PRODUCTS

MANUFCATURER, 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 October 12, 2000 as a private limited company under the originally registered name “PSMT Co., Ltd.” by Korean groups. On May 2, 2002, the registered name was changed to SIAM POONGSAN METAL COMPANY LIMITED. Its business objective is to manufacture and supply rolled coppers and copper alloy products to various industries both domestic and overseas. It currently employs approximately 800 staff.

The subject is a wholly owned subsidiary of Poongsan Corporation, which is a member of Poongsan Holdings Corporation in Korea.

The subject is also a major supplier of Circulated Coin Blanks and Memorial Coin Blanks on various occasions to the government sector.

The subject’s registered address is 38/14 Moo 5, Laemchabang Industrial Estate,

T. Thungsukla, A. Sriracha, Chonburi 20230, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Hee Choong Kim	Korean	60
Mr. Si Kyoung Ryu	Korean	60
Mr. Je Won Woo	Korean	51

AUTHORIZED PERSON

Anyone of the above directors can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Je Won Woo is the Managing Director.

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

BUSINESS OPERATIONS

The subject is engaged in manufacturing rolled copper and copper alloy products, mainly copper & copper alloy, sheet & strip, circulated & memorial coin blanks, materials for ammunitions. Its products are used in electronics & electrical, automotive, construction, telecommunication and general industries. It also supplies product for ammunitions. The semi-finished products will be further processed to become ammunition cases for military use.

The subject also provides products: copper tubes, rods, bars and wares, stainless steel strips, alloy strips and others from head office in Korea.

PURCHASE

Most of raw materials are purchased from local suppliers, the remaining as well as machinery are imported from Korea, Republic of China, U.S.A. and Taiwan.

MAJOR SUPPLIER

Poongsan Corporation : Korea

SALES

Most of the products are sold locally to wholesalers, manufacturers and end-users both private company and government enterprises, the remaining is exported to Korea, Malaysia, Indonesia and Japan.

MAJOR CUSTOMER

The Treasury Department, Ministry of Finance : Thailand

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

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 800 staff.

LOCATION DETAILS

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

COMMENT

The subject is the only manufacturer of rolled copper and copper alloy products in Southeast Asia. Products manufactured at Siam Poongsan range from sheets and strips and coin blanks to other copper and copper alloy products. It is a major supplier of coin blanks to the Thai Government. With its completely integrated copper and copper alloy production facilities from melting and casting to slitting, the subject has contributed significantly to the development of the Southeast Asian region by providing alternative sources of fabricated products for key industries. As a result, it has become a recognized and reliable supplier of the products not only to Thailand but also to the other nations in the region.

FINANCIAL INFORMATION

The capital was registered at Bht. 300,000,000 divided into 3,000,000 shares of Bht. 100 each with fully paid.

The capital was increased later as follows:

Bht. 435,000,000 on May 2, 2002

Bht. 800,000,000 on February 18, 2008

The latest registered capital was increased to Bht. 800 million, divided into 8,000,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 25, 2014]

NAME	HOLDING	%
Poongsan Corporation Nationality: Korean Address : Poongsan Bldg., 23 Chungjeong-ro, Seodaemun-gu, 120-837 Seoul, Korea	7,999,994	99.99
Mr. Moon Won Lee Nationality: Korean Address : Seoul, Korea	1
Mr. Byung Min Suh Nationality: Korean Address : Seoul, Korea	1
Mr. Chul Houh Nationality: Korean Address : Seoul, Korea	1	= 0.01
Mr. Bong Hun Chang Nationality: Korean Address : Seoul, Korea	1
Mr. Hee Choong Kim Nationality: Korean Address : Seoul, Korea	1
Mr. Si Kyoung Ryu Nationality: Korean Address : Seoul, Korea	1

Total Shareholders : 7

Share Structure [as at April 25, 2014]

Nationality	Shareholders	No. of Share	% Shares
Thai	-	-	-
Foreign-Korean	7	8,000,000	100.00
Total	7	8,000,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mrs. Kesaree Narongdej No. 0076

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2013, 2012 & 2011 were:

ASSETS

Current Assets	2013	2012	2011
Cash and Cash Equivalents	72,879,581.65	14,093,913.63	20,300,571.93
Trade Accounts Receivable - Related Company	282,955,367.28	161,048,380.81	153,472,798.02
- Other Company	402,646,664.61	448,466,361.65	457,917,004.62
Other Receivable	8,695,388.97	1,974,735.40	-
Inventories	1,463,083,109.66	1,211,541,414.90	1,154,565,040.61
Other Current Assets Assets from Forward Metal Contract	-	-	3,101,282.24
Refundable Value Added Tax	100,501,141.34	36,464,541.07	2,084,819.99
Others	11,941,182.15	4,871,343.60	4,149,861.91
Total Current Assets	2,342,702,435.66	1,878,460,691.06	1,795,591,379.32
Fixed Assets	624,345,781.70	655,116,997.81	616,915,398.80
Intangible Assets	2,265,685.86	3,901,304.10	5,660,279.46
Other Assets Advance for purchase of assets	-	-	10,110,187.94
Deferred Income Tax	15,462,701.48	6,026,223.11	36,270,906.99
Prepaid Income Tax	14,751,494.58	15,626,462.38	7,095,181.20
Others	7,015,515.37	7,148,991.19	5,121,935.19
Total Assets	3,006,543,614.65	2,566,280,669.65	2,476,765,268.90

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2013	2012	2011
Short-term Loan from Financial Institution	1,796,757,086.96	1,329,696,587.47	1,439,301,679.54
Trade Accounts Payable - Related Company	112,231,251.52	32,272,384.11	1,829,001.45
- Other Company	109,539,627.85	175,121,859.16	113,881,546.30
Other Payable
Payable for Purchase	-	17,671,995.95	-
Cash Receipts for Goods	39,167,653.37	75,250,870.23	41,928.36
Accrued Expenses	27,561,649.78	21,896,641.62	15,385,138.35
Other Current Liabilities Liabilities from Forward Metal Contract	6,238,845.66	17,500,512.77	-
Liabilities from Forward Foreign Exchange Contract	-	3,269,782.45	-
Others	7,436,975.34	6,771,668.72	5,602,470.31
Total Current Liabilities	2,098,933,090.48	1,679,452,302.48	1,576,041,764.31
Employees’ Benefit Obligation	8,705,717.00	8,529,793.00	7,623,888.00
Total Liabilities	2,107,638,807.48	1,687,982,095.48	1,583,665,652.31
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 8,000,000 shares	800,000,000.00	800,000,000.00	800,000,000.00
Capital Paid	800,000,000.00	800,000,000.00	800,000,000.00
Retained Earning Appropriated for Statutory Reserve	1,300,000.00	1,300,000.00	1,300,000.00
Unappropriated	97,604,807.17	76,998,574.17	91,799,616.59
Total Shareholders' Equity	898,904,807.17	878,298,574.17	893,099,616.59
Total Liabilities & Shareholders' Equity	3,006,543,614.65	2,566,280,669.65	2,476,765,268.90

PROFIT & LOSS ACCOUNT

Revenue	2013	2012	2011
Sales	4,251,069,099.44	3,564,332,121.83	3,706,989,237.08
Other Income Gain on Forward Metal Contract	8,892,511.12	-	10,313,725.51
Gain from Exchange Rate	-	35,997,185.31	-
Gain from Sale of Raw Material	11,090,785.49	2,738,640.18	23,141,381.74
Others	16,379,915.34	11,137,163.65	11,526,959.03
Total Revenues	4,287,432,311.39	3,614,205,110.97	3,751,971,303.36
Expenses
Cost of Goods Sold	4,038,592,794.40	3,379,623,516.94	3,527,438,605.46
Selling Expenses	48,540,489.20	40,217,219.72	44,307,424.40
Administrative Expenses	114,507,657.70	100,482,528.74	100,417,584.09
Other Expenses	42,728,381.76	43,542,776.37	34,634,531.32
Total Expenses	4,244,369,323.06	3,563,866,041.77	3,706,798,145.27
Profit / [Loss] before Financial Cost & Income Tax	43,062,988.33	50,339,069.20	45,173,158.09
Financial Cost	[31,893,233.70]	[34,895,427.74]	[47,528,526.76]
Profit / [Loss] before Income Tax	11,169,754.63	15,443,641.46	[2,355,368.67]
Income Tax / [Income]	9,436,478.37	[30,244,683.88]	9,360,469.23
Net Profit / [Loss]	20,606,233.00	[14,801,042.42]	7,005,100.56

FINANCIAL ANALYSIS

ITEM	UNIT	2013	2012	2011
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.12	1.12	1.14
QUICK RATIO	TIMES	0.37	0.37	0.40
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	6.81	5.44	6.01
TOTAL ASSETS TURNOVER	TIMES	1.41	1.39	1.50
INVENTORY CONVERSION PERIOD	DAYS	132.23	130.85	119.47
INVENTORY TURNOVER	TIMES	2.76	2.79	3.06
RECEIVABLES CONVERSION PERIOD	DAYS	34.57	45.92	45.09
RECEIVABLES TURNOVER	TIMES	10.56	7.95	8.10
PAYABLES CONVERSION PERIOD	DAYS	9.90	18.91	11.78
CASH CONVERSION CYCLE	DAYS	156.90	157.86	152.77
PROFITABILITY RATIO
COST OF GOODS SOLD	%	95.00	94.82	95.16
SELLING & ADMINISTRATION	%	3.84	3.95	3.90
INTEREST	%	0.75	0.98	1.28
GROSS PROFIT MARGIN	%	5.85	6.58	6.06
NET PROFIT MARGIN BEFORE EX. ITEM	%	1.01	1.41	1.22
NET PROFIT MARGIN	%	0.48	(0.42)	0.19
RETURN ON EQUITY	%	2.29	(1.69)	0.78
RETURN ON ASSET	%	0.69	(0.58)	0.28
EARNING PER SHARE	BAHT	2.58	(1.85)	0.88
LEVERAGE RATIO
DEBT RATIO	TIMES	0.70	0.66	0.64
DEBT TO EQUITY RATIO	TIMES	2.34	1.92	1.77
TIME INTEREST EARNED	TIMES	1.35	1.44	0.95
ANNUAL GROWTH
SALES GROWTH	%	19.27	(3.85)
OPERATING PROFIT	%	(14.45)	11.44
NET PROFIT	%	239.22	(311.29)
FIXED ASSETS	%	(4.70)	6.19
TOTAL ASSETS	%	17.16	3.61

ANNUAL GROWTH: SATISFACTORY

An annual sales growth is 19.27%. Turnover has increased from THB 3,564,332,121.83 in 2012 to THB 4,251,069,099.44 in 2013. While net profit has increased from THB -14,801,042.42 in 2012 to THB 20,606,233.00 in 2013. And total assets has increased from THB 2,566,280,669.65 in 2012 to THB 3,006,543,614.65 in 2013.

PROFITABILITY : EXCELLENT

PROFITABILITY RATIO

Gross Profit Margin	5.85	Impressive	Industrial Average	1.58
Net Profit Margin	0.48	Impressive	Industrial Average	0.43
Return on Assets	0.69	Impressive	Industrial Average	0.61
Return on Equity	2.29	Impressive	Industrial Average	1.89

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 5.85%. 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 0.48%, 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 0.69%, 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 2.29%, 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 Uptrend

Return on Equity Uptrend

LIQUIDITY : RISKY

LIQUIDITY RATIO

Current Ratio	1.12	Satisfactory	Industrial Average	1.12
Quick Ratio	0.37
Cash Conversion Cycle	156.90

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 1.12 times in 2013, same figure as 1.12 times in 2012, then it is generally considered to have good short-term financial strength. 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 0.37 times in 2013, same figure as 0.37 times in 2012, 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 157 days.

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

Current Ratio Downtrend

LEVERAGE : ACCEPTABLE

LEVERAGE RATIO

Debt Ratio	0.70	Acceptable	Industrial Average	0.70
Debt to Equity Ratio	2.34	Risky	Industrial Average	2.33
Times Interest Earned	1.35	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 1.36 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 0.7 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: EXCELLENT

ACTIVITY RATIO

Fixed Assets Turnover	6.81	Impressive	Industrial Average	-
Total Assets Turnover	1.41	Impressive	Industrial Average	1.41
Inventory Conversion Period	132.23
Inventory Turnover	2.76	Impressive	Industrial Average	1.52
Receivables Conversion Period	34.57
Receivables Turnover	10.56	Impressive	Industrial Average	3.38
Payables Conversion Period	9.90

The company's Account Receivable Ratio is calculated as 10.56 and 7.95 in 2013 and 2012 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 2013 increased from 2012. 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 increased from 131 days at the end of 2012 to 132 days at the end of 2013. This represents a negative trend. And Inventory turnover has decreased from 2.79 times in year 2012 to 2.76 times in year 2013.

The company's Total Asset Turnover is calculated as 1.41 times and 1.39 times in 2013 and 2012 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	Rs.61.55
UK Pound	1	Rs.97.53
Euro	1	Rs.76.48

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIT

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%)

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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.