MIRA INFORM REPORT

Report Date :

05.09.2014

IDENTIFICATION DETAILS

Name :	99 NETWORK COMPANY LIMITED
Registered Office :	725/303 Ngamcharoen Village 6, Anamai-Ngamcharoen Road, Thakam, Bang-Khun-Tien, Bangkok 10150,
Country :	Thailand
Financials (as on) :	31.12.2013
Date of Incorporation :	19.05.1999
Com. Reg. No.:	0105542035522
Legal Form :	Private Limited Company
Line of Business :	Subject is engaged in commissioning agent to export and distribute various kinds of foods and beverages, such as fruit juice, canned fruit [lychee/rambutan/longan], canned vegetable [bamboo shoot], coconut products [milk/cream], corn [sweet kernel corn], dehydrated and fruit chips [mango/guava/papaya/babana/coconut], glass jarred fruit & vegetable, frozen fruits & vegetable [pineapple/babana/papaya/guava/rambutan], rice, seafood
No of Employees :	8

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 :	Slow but correct
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 01, 2014

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

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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

99 NETWORK COMPANY LIMITED

SUMMARY

BUSINESS ADDRESS : 725/303 NGAMCHAROEN VILLAGE 6,

ANAMAI-NGAMCHAROEN ROAD, THAKAM,

BANG-KHUN-TIEN, BANGKOK 10150,

THAILAND

TELEPHONE : [66] 2405-7455, 081 622-1755

FAX : [66] 2405-7377

E-MAIL ADDRESS : info@99network.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1999

REGISTRATION NO. : 0105542035522

TAX ID NO. : 3021012243

CAPITAL REGISTERED : BHT. 1,000,000

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

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. JIPANU SAEHOU, THAI

MANAGING DIRECTOR

NO. OF STAFF : 8

LINES OF BUSINESS : FOODS AND BEVERAGES

COMMISSION AGENCY

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : FAIR WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH GOOD PERFORMANCE

HISTORY

The subject was established on May 19, 1999 as a private limited company under the registered name 99 NETWORK COMPANY LIMITED, by Thai groups, with the business objective to provide commission agent for various kinds of foods and beverages to customers both domestic and international markets. It currently employs 8 staff.

The subject’s registered address was initially at 116/9 Moo 7, Soi Tahkam 9, Rama 2 Road, Sa-Mae-Dham, Bang-Khun-Tien, Bangkok 10150.

On September 28, 2011, the subject’s registered address was changed to 725/303 Ngamcharoen Village 6, Anamai-Ngamcharoen Road, Thakam, Bang-Khun-Tien, Bangkok 10150, by the Bangkhunthien District Office, which actually are the same location, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Jipanu Saehou	Thai	46

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Jipanu Saehou is the Managing Director.

He is Thai nationality with the age of 46 years old.

BUSINESS OPERATIONS

The subject is engaged in commissioning agent to export and distribute various kinds of foods and beverages, such as fruit juice, canned fruit [lychee/rambutan/longan], canned vegetable [bamboo shoot], coconut products [milk/cream], corn [sweet kernel corn], dehydrated and fruit chips [mango/guava/papaya/babana/coconut], glass jarred fruit & vegetable, frozen fruits & vegetable [pineapple/babana/papaya/guava/rambutan], rice, seafood

PURCHASE

100% of the products is purchased from local suppliers.

SALES

95% of the products is exported to Republic of China, Taiwan, Hong Kong, Japan, Korea, Singapore, Australia and many countries in Europe and Middle East, the remaining is sold locally.

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 IRICO’S DATABASE for the past two years.

CREDIT

Services 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

The banker’s name was not disclosed.

EMPLOYMENT

The subject currently employs 8 staff.

LOCATION DETAILS

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

COMMENT

Subject reported moderate sales in the year 2013. It business is continued expanding.

FINANCIAL INFORMATION

The capital was registered at Bht. 100,000 divided into 1,000 shares of Bht. 100 each with fully paid.

On October 16, 2003, the registered capital was increased to Bht. 1,000,000 divided into 10,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[As at April 30, 2014]

NAME	HOLDING	%
Mr. Jipanu Saehou Nationality: Thai Address : 725/303 Anamai-Ngamcharoen Road, Thakam, Bang-Khun-Tien, Bangkok	9,899	98.99
Mrs. Supanee Permtaweechokchai Nationality: Thai Address : 11 Soi Thakam 9, Rama 2 Road, Sa-Mae-Dham, Bang-Khun-Tien, Bangkok	20	0.20
Mrs. Hataithip Permtaweechokchai Nationality: Thai Address : 514/337 Moo 6, Bangpakok, Rajburana, Bangkok	20	0.20
Mr. Pongnares Watthanawong Nationality: Thai Address : 11 Soi Thakam 9, Rama 2 Road, Sa-Mae-Dham, Bang-Khun-Tien, Bangkok	20	0.20
Ms. Tassana Saehou Nationality: Thai Address : 11 Soi Thakam 9, Rama 2 Road, Sa-Mae-Dham, Bang-Khun-Tien, Bangkok	20	0.20
Mr. Pakorn Chatnumchaijaroen Nationality: Thai Address : 11 Soi Thakam 9, Rama 2 Road, Sa-Mae-Dham, Bang-Khun-Tien, Bangkok	20	0.20
Mr. Pongnarin Saehou Nationality: Thai Address : 11 Soi Thakam 9, Rama 2 Road, Sa-Mae-Dham, Bang-Khun-Tien, Bangkok	1	0.01

Total Shareholders : 7

Share Structure [as at April 30, 2014]

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

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO

Mr. Pawut Attapemo No. 7838

99 NETWORK COMPANY LIMITED

BALANCE SHEET [BAHT]

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

ASSETS

Current Assets	2013	2012	2011
Cash and Cash Equivalents	171,474.83	259,074.09	264,468.71
Other Receivable	1,260,000.00	403,000.00	8,848,602.12
Other Current Assets	292,057.80	59,443.67	33,255.50
Total Current Assets	1,723,532.63	721,517.76	9,146,326.33
Fixed Assets	1,793,826.05	1,889,355.33	1,689,534.98
Other Non - current Assets	2,000.00	2,000.00	2,000.00
Total Assets	3,519,358.68	2,612,873.09	10,837,861.31

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2013	2012	2011
Other Payable	750,000.00	-	-
Accrued Income Tax	-	21,237.68	16,945.87
Other Current Liabilities	65,685.11	77,951.25	2,709,662.75
Total Current Liabilities	815,685.11	99,188.93	2,726,608.62
Long-term Loan	-	-	5,970,000.00
Total Liabilities	815,685.11	99,188.93	8,696,608.62
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 10,000 shares	1,000,000.00	1,000,000.00	1,000,000.00
Capital Paid	1,000,000.00	1,000,000.00	1,000,000.00
Retained Earning Unappropriated [Deficit]	1,703,673.57	1,513,684.16	1,141,252.69
Total Shareholders' Equity	2,703,673.57	2,513,684.16	2,141,252.69
Total Liabilities & Shareholders' Equity	3,519,358.68	2,612,873.09	10,837,861.31

PROFIT & LOSS ACCOUNT

Revenue	2013	2012	2011
Sales & Services Income	9,457,976.60	4,395,803.82	4,037,359.45
Other Income	6,899.03	44,462.21	63,483.99
Total Revenues	9,464,875.63	4,440,266.03	4,100,843.44
Expenses
Cost of Goods Sold & Service	4,501,711.22	2,750,746.13	2,543,321.39
Administrative Expenses	4,745,211.75	1,217,274.24	917,968.97
Total Expenses	9,246,922.97	3,968,020.37	3,461,290.36
Profit / [Loss] before Financial Cost & Income Tax	217,952.66	472,245.66	639,553.08
Financial Costs	-	-	[20,329.43]
Profit / [Loss] before Income Tax	217,952.66	472,245.66	619,223.65
Income Tax	[27,963.25]	[99,814.19]	[96,214.97]
Net Profit / [Loss]	189,989.41	372,431.47	523,008.68

99 NETWORK COMPANY LIMITED

FINANCIAL ANALYSIS

ITEM	UNIT	2013	2012	2011
LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.11	7.27	3.35
QUICK RATIO	TIMES	1.75	6.67	3.34
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	5.27	2.33	2.39
TOTAL ASSETS TURNOVER	TIMES	2.69	1.68	0.37
INVENTORY CONVERSION PERIOD	DAYS	-	-	-
INVENTORY TURNOVER	TIMES	-	-	-
RECEIVABLES CONVERSION PERIOD	DAYS	-	-	-
RECEIVABLES TURNOVER	TIMES	-	-	-
PAYABLES CONVERSION PERIOD	DAYS	-	-	-
CASH CONVERSION CYCLE	DAYS	-	-	-
PROFITABILITY RATIO
COST OF GOODS SOLD	%	47.60	62.58	62.99
SELLING & ADMINISTRATION	%	50.17	27.69	22.74
INTEREST	%	-	-	0.50
GROSS PROFIT MARGIN	%	52.48	38.43	38.58
NET PROFIT MARGIN BEFORE EX. ITEM	%	2.30	10.74	15.84
NET PROFIT MARGIN	%	2.01	8.47	12.95
RETURN ON EQUITY	%	7.03	14.82	24.43
RETURN ON ASSET	%	5.40	14.25	4.83
EARNING PER SHARE	BAHT	19.00	37.24	52.30
LEVERAGE RATIO
DEBT RATIO	TIMES	0.23	0.04	0.80
DEBT TO EQUITY RATIO	TIMES	0.30	0.04	4.06
TIME INTEREST EARNED	TIMES	-	-	31.46
ANNUAL GROWTH
SALES GROWTH	%	115.16	8.88
OPERATING PROFIT	%	(53.85)	(26.16)
NET PROFIT	%	(48.99)	(28.79)
FIXED ASSETS	%	(5.06)	11.83
TOTAL ASSETS	%	34.69	(75.89)

ANNUAL GROWTH : ACCEPTABLE

An annual sales growth is 115.16%. Turnover has increased from THB 4,395,803.82 in 2012 to THB 9,457,976.60 in 2013. While net profit has decreased from THB 372,431.47 in 2012 to THB 189,989.41 in 2013. And total assets has increased from THB 2,612,873.09 in 2012 to THB 3,519,358.68 in 2013.

PROFITABILITY : SATISFACTORY

PROFITABILITY RATIO

Gross Profit Margin	52.48	Impressive	Industrial Average	6.78
Net Profit Margin	2.01	Satisfactory	Industrial Average	2.11
Return on Assets	5.40	Satisfactory	Industrial Average	5.65
Return on Equity	7.03	Deteriorated	Industrial Average	17.26

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 52.48%. 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 2.01%. 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 5.4%.

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 7.03%.

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	2.11	Impressive	Industrial Average	1.24
Quick Ratio	1.75
Cash Conversion Cycle	-

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 2.11 times in 2013, decreased from 7.27 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 1.75 times in 2013, decreased from 6.67 times, although excluding inventory so the company still have good short-term financial strength.

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

Current Ratio Downtrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.23	Impressive	Industrial Average	0.77
Debt to Equity Ratio	0.30	Impressive	Industrial Average	3.53
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 0.23 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 Uptrend

Times Interest Earned Stable

ACTIVITY: EXCELLENT

ACTIVITY RATIO

Fixed Assets Turnover	5.27	Impressive	Industrial Average	-
Total Assets Turnover	2.69	Impressive	Industrial Average	2.67
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	7.72
Receivables Conversion Period	-
Receivables Turnover	-		Industrial Average	4.09
Payables Conversion Period	-

The company's Total Asset Turnover is calculated as 2.69 times and 1.68 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 Uptrend

Inventory Turnover Uptrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.45
UK Pound	1	Rs.99.45
Euro	1	Rs.79.46

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

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.