MIRA INFORM REPORT

Report No. :	341492
Report Date :	22.09.2015

IDENTIFICATION DETAILS

Name :	FULL SOLAR CO., LTD.
Registered Office :	101 Soi Songprapha 24, Songprapha Road, Sikan, Donmuang, Bangkok 10210
Country :	Thailand
Financials (as on) :	31.12.2014
Date of Incorporation :	30.03.2012
Com. Reg. No.:	0105555050002
Legal Form :	Private Limited Company
Line of Business :	Subject is engaged in manufacturing, distributing and exporting solar cell panel and related equipments such as mono-crystalline solar PV module, poly-crystalline solar PV module, solar LED street light, LED lamp head
No. of Employee :	75

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 :	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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Thailand	B1	A2

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, and generally pro-investment policies Thailand has historically had a strong economy due in part to competitive industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. The economy experienced slow growth and declining exports in 2014, in part due to domestic political turmoil and sluggish global demand. With full employment, Thailand attracts an estimated 2-4 million migrant workers from neighboring countries, and faces labor shortages. Following the May 2014 coup d’�tat, tourism decreased 6-7% but is beginning to recover. The household debt to GDP ratio is over 80%. 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 baht has remained stable.

Source : CIA

Company name

FULL SOLAR CO., LTD.

SUMMARY

BUSINESS ADDRESS : 101 SOI SONGPRAPHA 24, SONGPRAPHA ROAD,

SIKAN, DONMUANG, BANGKOK 10210, THAILAND

TELEPHONE : [66] 2566-3851-4

FAX : [66] 2928-9978

E-MAIL ADDRESS : fullsolarmarketing@gmail.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2012

REGISTRATION NO. : 0105555050002

TAX ID NO. : 3035020784

CAPITAL REGISTERED : BHT. 10,000,000

CAPITAL PAID-UP : BHT. 10,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. SOMBOON SAECHAN, THAI

MANAGING DIRECTOR

NO. OF STAFF : 75

LINES OF BUSINESS : SOLAR CELL PANEL AND RELATED EQUIPMENT

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 March 30, 2012 as a private limited company under the registered name FULL SOLAR CO., LTD., by Thai group, with the business objective to manufacture and distribute solar cell panel and related equipment to both domestic and international markets. It currently employs 75 staff.

The subject’s registered address is 101 Soi Songprapha 24, Songprapha Road, Sikan, Donmuang, Bangkok 10210, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Somboon Saechan	Thai	52

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Somboon Saechan is the Managing Director.

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

BUSINESS OPERATIONS

The subject is engaged in manufacturing, distributing and exporting solar cell panel and related equipments such as mono-crystalline solar PV module, poly-crystalline solar PV module, solar LED street light, LED lamp head and etc.

BRAND NAME

“FULL SOLAR”

PURCHASE

Raw materials and components are purchased from suppliers both domestic and overseas in Republic of China, Japan and U.S.A.

SALES

The products are sold to customers both local and overseas in Germany, Spain, Italy, Japan 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.

Imports are by T/T.

Exports are against T/T.

BANKING

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject currently employs 75 staff.

LOCATION DETAILS

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

Factory and warehouse are located at 430/4 Moo 9, T. Nongkham, A. Sriracha,

Chonburi 20230.

COMMENT

There has been an increasing demand of utilizing solar energy as a clean alternative for individual homes, factories and etc. Favorable market sentiment had led to strong demand from consumer sector, and this had caused to increase consumption of the products in the previous year.

FINANCIAL INFORMATION

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

THE SHAREHOLDERS LISTED WERE

[as at April 30, 2015]

NAME	HOLDING	%
Mr. Somboon Saechan Nationality: Thai Address : 1961/5 Rama 4 Road, Lumpini, Pathumwan, Bangkok	60,000	60.00
Mr. Somnuek Chantarungroj Nationality: Thai Address : 187/126 Soi Songprapha 24, Songprapha Road, Sikan, Donmuang, Bangkok	20,000	20.00
Mr. Somphap Saechan Nationality: Thai Address : 739/1 Soi Kingchan, Bangklo, Bangkorlaem, Bangkok	20,000	20.00

Total Shareholders : 3

Share Structure [as at April 30, 2015]

Nationality	Shareholders	No. of Share	% Shares
Thai	3	100,000	100.00
Foreign	-	-	-
Total	3	100,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Suchart Sasiwimolwit No. 11123

BALANCE SHEET [BAHT]

The latest financial figures published as at December 31, 2014, 2013 & 2012 were:

ASSETS

Current Assets	2014	2013	2012
Cash and Cash Equivalents	231,953.63	61,863.61	27,860.97
Trade Accounts & Other Receivable	1,101,620.75	232,229.61	-
Inventories	6,911,764.96	13,578,085.92	4,702,762.89
Other Current Assets	117,904.43	1,786,017.24	610,523.07
Total Current Assets	8,363,243.77	15,658,196.38	5,341,146.93
Fixed Assets	7,246,653.31	8,076,478.27	4,569,751.87
Total Assets	15,609,897.08	23,734,674.65	9,910,898.80

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2014	2013	2012
Trade Accounts & Other Payable	1,091,754.72	-	-
Short-term Loans	2,859,250.00	6,766,750.00	36,000.00
Current Portion of Long-term Liabilities	-	843,934.20	-
Other Current Liabilities	2,337,538.31	11,819,598.24	227,941.12
Total Current Liabilities	6,288,543.03	19,430,282.44	263,941.12
Long-term Loans	4,263,513.39	2,632,413.76	-
Total Liabilities	10,552,056.42	22,062,696.20	263,941.12
Shareholders' Equity
Share capital : Baht 100 par value authorized and issued share capital 100,000 shares	10,000,000.00	10,000,000.00	10,000,000.00
Capital Paid	10,000,000.00	10,000,000.00	10,000,000.00
Retained Earning - Unappropriated	[4,942,159.34]	[8,328,021.55]	[353,042.32]
Total Shareholders' Equity	5,057,840.66	1,671,978.45	9,646,957.68
Total Liabilities & Shareholders' Equity	15,609,897.08	23,734,674.65	9,910,898.80

PROFIT & LOSS ACCOUNT

Revenue	2014	2013	2012
Sales Income	42,166,086.01	11,674,171.54	582,814.96
Other Income	375,055.39	31,940.00	3,263.19
Total Revenues	42,541,141.40	11,706,111.54	586,078.15
Expenses
Cost of Goods Sold	33,774,794.38	10,978,441.31	334,523.86
Selling Expenses	709,154.26	4,716,858.33	224,298.10
Administrative Expenses	3,986,402.83	3,676,919.88	351,057.70
Other Expenses	-	-	29,240.81
Total Expenses	38,470,351.47	19,372,219.52	939,120.47
Profit / [Loss] before Financial Cost	4,070,789.93	[7,666,107.98]	[353,042.32]
Financial Cost	[684,927.72]	[308,871.25]	-
Net Profit / [Loss]	3,385,862.21	[7,974,979.23]	[353,042.32]

FINANCIAL ANALYSIS

ITEM	UNIT	2014	2013	2012
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.33	0.81	20.24
QUICK RATIO	TIMES	0.21	0.02	0.11
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	5.82	1.45	0.13
TOTAL ASSETS TURNOVER	TIMES	2.70	0.49	0.06
INVENTORY CONVERSION PERIOD	DAYS	74.69	451.43	5,131.20
INVENTORY TURNOVER	TIMES	4.89	0.81	0.07
RECEIVABLES CONVERSION PERIOD	DAYS	9.54	7.26	-
RECEIVABLES TURNOVER	TIMES	38.28	50.27	-
PAYABLES CONVERSION PERIOD	DAYS	11.80	-	-
CASH CONVERSION CYCLE	DAYS	72.43	458.69	5,131.20
PROFITABILITY RATIO
COST OF GOODS SOLD	%	80.10	94.04	57.40
SELLING & ADMINISTRATION	%	11.14	71.90	98.72
INTEREST	%	1.62	2.65	-
GROSS PROFIT MARGIN	%	20.79	6.23	43.16
NET PROFIT MARGIN BEFORE EX. ITEM	%	9.65	(65.67)	(60.58)
NET PROFIT MARGIN	%	8.03	(68.31)	(60.58)
RETURN ON EQUITY	%	66.94	(476.98)	(3.66)
RETURN ON ASSET	%	21.69	(33.60)	(3.56)
EARNING PER SHARE	BAHT	33.86	(79.75)	(3.53)
LEVERAGE RATIO
DEBT RATIO	TIMES	0.68	0.93	0.03
DEBT TO EQUITY RATIO	TIMES	2.09	13.20	0.03
TIME INTEREST EARNED	TIMES	5.94	(24.82)	-
ANNUAL GROWTH
SALES GROWTH	%	261.19	1,903.07
OPERATING PROFIT	%	(153.10)	2,071.44
NET PROFIT	%	142.46	(2,158.93)
FIXED ASSETS	%	(10.27)	76.74
TOTAL ASSETS	%	(34.23)	139.48

ANNUAL GROWTH : ACCEPTABLE

An annual sales growth is 261.19%. Turnover has increased from THB 11,674,171.54 in 2013 to THB 42,166,086.01 in 2014. While net profit has increased from THB -7,974,979.23 in 2013 to THB 3,385,862.21 in 2014. And total assets has decreased from THB 23,734,674.65 in 2013 to THB 15,609,897.08 in 2014.

PROFITABILITY : IMPRESSIVE

PROFITABILITY RATIO

Gross Profit Margin	20.79	Deteriorated	Industrial Average	67.49
Net Profit Margin	8.03	Impressive	Industrial Average	(16.41)
Return on Assets	21.69	Impressive	Industrial Average	0.84
Return on Equity	66.94	Impressive	Industrial Average	22.57

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 20.79%. 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 8.03%, 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 21.69%, 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 66.94%, 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 Uptrend

LIQUIDITY : ACCEPTABLE

LIQUIDITY RATIO

Current Ratio	1.33	Impressive	Industrial Average	1.24
Quick Ratio	0.21
Cash Conversion Cycle	72.43

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 1.33 times in 2014, increased from 0.81 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 0.21 times in 2014, increased from 0.02 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 73 days.

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

Current Ratio Downtrend

LEVERAGE : IMPRESSIVE

LEVERAGE RATIO

Debt Ratio	0.68	Acceptable	Industrial Average	(0.52)
Debt to Equity Ratio	2.09	Impressive	Industrial Average	8.26
Times Interest Earned	5.94	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 5.95 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 0.68 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	5.82	Impressive	Industrial Average	-
Total Assets Turnover	2.70	Impressive	Industrial Average	0.88
Inventory Conversion Period	74.69
Inventory Turnover	4.89	Impressive	Industrial Average	4.59
Receivables Conversion Period	9.54
Receivables Turnover	38.28	Impressive	Industrial Average	5.02
Payables Conversion Period	11.80

The company's Account Receivable Ratio is calculated as 38.28 and 50.27 in 2014 and 2013 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 2014 decreased from 2013. 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 451 days at the end of 2013 to 75 days at the end of 2014. This represents a positive trend. And Inventory turnover has increased from 0.81 times in year 2013 to 4.89 times in year 2014.

The company's Total Asset Turnover is calculated as 2.7 times and 0.49 times in 2014 and 2013 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.65.75
UK Pound	1	Rs.102.17
Euro	1	Rs.74.38

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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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