MIRA INFORM REPORT

Report No. :	489104
Report Date :	02.02.2018

IDENTIFICATION DETAILS

Name :	PONPOONSIN CO., LTD.
Registered Office :	80 Maesod-Maetao Road, T. Maesod, A. Maesod, TAK 63110
Country :	Thailand
Financials (as on) :	31.12.2016
Date of Incorporation :	24.04.2009
Com. Reg. No.:	0635552000174
Legal Form :	Private Limited Company
Line of Business :	Distributor of Agricultural Products e.g. Rice, Bean, Dry Red Chilly, Red Onions, Pearl Onions, Garlic, Ginger, Corn.
No. of Employees :	8

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	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
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

PONPOONSIN CO., LTD.

SUMMARY

BUSINESS ADDRESS : 80 MAESOD-MAETAO ROAD, T. MAESOD,

A. MAESOD, TAK 63110, THAILAND

TELEPHONE : [66] 55 536-238, 089 636-6554

FAX : [66] 55 536-238

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2009

REGISTRATION NO. : 0635552000174

TAX ID NO. : 3033449365

CAPITAL REGISTERED : BHT. 3,000,000

CAPITAL PAID-UP : BHT. 3,000,000

SHAREHOLDER’S PROPORTION : THAI : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. PRAVIT CHAIDEE, THAI

MANAGING DIRECTOR

NO. OF STAFF : 8

LINES OF BUSINESS : AGRICULTURAL PRODUCTS

DISTRIBUTOR

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : FAIR WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH GOOD PERFORMENCE

HISTORY

The subject was established on April 24, 2009 as a private limited company under the registered name PONPOONSIN CO., LTD., by Thai groups, with the business objective to distribute various kinds of agricultural products to domestic market. It currently employs 8 staff.

The subject’s registered address is 80 Maesod-Maetao Rd., T. Maesod, A. Maesod, Tak 63110, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mr. Pravit Chaidee	Thai	40
Ms. Ravinant Kongsinsukadul	Thai	38

AUTHORIZED PERSON

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

MANAGEMENT

Mr. Pravit Chaidee is the Managing Director.

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

Ms. Ravinant Kongsinsukadul is the Assistant Managing Director.

She is Thai nationality with the age of 38 years old.

BUSINESS OPERATIONS

The subject’s activity is a distributor various kinds of agricultural products e.g. rice, bean, dry red chilly, red onions, pearl onions, garlic, ginger, corn and etc.

PURCHASE

100% of the products is purchased from local suppliers.

SALES [LOCAL]

100% of the products is also sold locally by wholesale to dealers and end-users.

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 credit term of 30 days.

Local bills are paid by cash or on the credit term of 30 days.

BANKING

The Siam Commercial Bank Public Company Limited

EMPLOYMENT

The subject employs 8 staff. [office and sales staff]

LOCATION DETAILS

The premise is owned for administrative office at the heading address. Premise is located in provincial, in the northern region.

Branch office is located at 699/4 Moo 4, T. Praeksa, A. Muang, Samutprakarn 10280.

COMMENT

The subject was formed in 2009 as a distributor of agricultural products. Demand of products remains strong. Subject has moderate sales in the past several years. The products are mainly supplied to multi-levels of users, including restaurant, food processing and general consumers. The products have widened into many areas and business sectors.

Generally, the subject’s business remains strong and profitable.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 1,000,000 divided into 10,000 shares of Bht. 100 each.

On March 25, 2010, the capital was increased to Bht. 3,000,000 divided into 30,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[As at April 30, 2017]

NAME	HOLDING	%
Mr. Pravit Chaidee Nationality: Thai Address : 468 Moo 5, T. Kereeraj, A. Pobphra, Tak	10,000	33.34
Ms. Ravinant Kongsinsukadul Nationality: Thai Address : 104/2 Moo 11, T. Pangmhoo, A. Muang, Maehongsorn	10,000	33.33
Ms. Thitiporn Laosinsakulwanich Nationality: Thai Address : 352 Moo 5, T. Kereeraj, A. Pobphra, Tak	10,000	33.33

Total Shareholders : 3

Share Structure

[as at April 30, 2017]

Nationality	Shareholders	No. of Share	% Shares
Thai	3	30,000	100.00
Foreign	-	-	-
Total	3	30,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Nakorn Asawapratuengkul No. 6829

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 Equivalent	1,017,966.61	544,423.20	693,846.58
Trade Account and Other Receivable	25,890.41	51,331.51	117,424.66
Short-term Lending to Related Person	5,500,000.00	5,500,000.00	5,000,000.00
Other Current Assets	3,388.29	3,402.85	3,402.85
Total Current Assets	6,547,245.31	6,099,157.56	5,814,674.09
Total Assets	6,547,245.31	6,099,157.56	5,814,674.09

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2016	2015	2014
Trade Account and Other Payable	32,000.00	32,000.00	27,000.00
Accrued Income Tax	60,236.24	53,076.76	90,548.45
Accrued Expenses	60.00	60.00	15,460.35
Total Current Liabilities	92,296.24	85,136.76	133,008.80
Total Liabilities	92,296.24	85,136.76	133,008.80
Shareholders’ Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 30,000 shares	3,000,000.00	3,000,000.00	3,000,000.00
Capital Paid	3,000,000.00	3,000,000.00	3,000,000.00
Retained Earning- Unappropriated	3,454,949.07	3,014,020.80	2,681,665.29
Total Shareholders' Equity	6,454,949.07	6,014,020.80	5,681,665.29
Total Liabilities & Shareholders' Equity	6,547,245.31	6,099,157.56	5,814,674.09

PROFIT & LOSS ACCOUNT

Revenue	2016	2015	2014
Sales or Services Income	61,038,602.36	22,355,687.10	92,525,416.56
Other Income	242,124.34	52,787.70	57,424.66
Total Revenues	61,280,726.70	22,408,474.80	92,582,841.22
Expenses
Cost of Goods Sold or Services	59,688,492.04	21,368,744.22	89,996,643.97
Selling Expenses	353,388.00	258,249.00	1,064,055.00
Administrative Expenses	628,165.98	366,034.75	471,530.86
Total Expenses	60,670,046.02	21,993,027.97	91,532,229.83
Profit / [Loss] before Financial Cost & Income Tax	610,680.68	415,446.83	1,050,611.39
Financial Cost	[59,464.60]	-	-
Profit / [Loss] before Income Tax	551,216.08	415,446.83	1,050,611.39
Expenses [Income] Income Tax	[110,287.81]	[83,091.32]	[210,548.45]
Net Profit / [Loss]	440,928.27	332,355.51	840,062.94

FINANCIAL ANALYSIS

ITEM	UNIT	2016	2015	2014
LIQUIDITY RATIO
CURRENT RATIO	TIMES	70.94	71.64	43.72
QUICK RATIO	TIMES	70.90	71.60	43.69
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	-	-	-
TOTAL ASSETS TURNOVER	TIMES	9.32	3.67	15.91
INVENTORY CONVERSION PERIOD	DAYS	-	-	-
INVENTORY TURNOVER	TIMES	-	-	-
RECEIVABLES CONVERSION PERIOD	DAYS	0.15	0.84	0.46
RECEIVABLES TURNOVER	TIMES	2,357.58	435.52	787.96
PAYABLES CONVERSION PERIOD	DAYS	0.20	0.55	0.11
CASH CONVERSION CYCLE	DAYS	(0.04)	0.29	0.35
PROFITABILITY RATIO
COST OF GOODS SOLD	%	97.79	95.59	97.27
SELLING & ADMINISTRATION	%	1.61	2.79	1.66
INTEREST	%	0.10	-	-
GROSS PROFIT MARGIN	%	2.61	4.65	2.80
NET PROFIT MARGIN BEFORE EX. ITEM	%	1.00	1.86	1.14
NET PROFIT MARGIN	%	0.72	1.49	0.91
RETURN ON EQUITY	%	6.83	5.53	14.79
RETURN ON ASSET	%	6.73	5.45	14.45
EARNING PER SHARE	BAHT	14.70	11.08	28.00
LEVERAGE RATIO
DEBT RATIO	TIMES	0.01	0.01	0.02
DEBT TO EQUITY RATIO	TIMES	0.01	0.01	0.02
TIME INTEREST EARNED	TIMES	10.27	-	-
ANNUAL GROWTH
SALES GROWTH	%	173.03	(75.84)
OPERATING PROFIT	%	46.99	(60.46)
NET PROFIT	%	32.67	(60.44)
FIXED ASSETS	%	-	-
TOTAL ASSETS	%	7.35	4.89

ANNUAL GROWTH: IMPRESSIVE

An annual sales growth is 173.03%. Turnover has increased from THB 22,355,687.10 in 2015 to THB 61,038,602.36 in 2016. While net profit has increased from THB 332,355.51 in 2015 to THB 440,928.27 in 2016. And total assets has increased from THB 6,099,157.56 in 2015 to THB 6,547,245.31 in 2016.

PROFITABILITY : ACCEPTABLE

PROFITABILITY RATIO

Gross Profit Margin	2.61	Deteriorated	Industrial Average	26.47
Net Profit Margin	0.72	Deteriorated	Industrial Average	3.06
Return on Assets	6.73	Impressive	Industrial Average	5.95
Return on Equity	6.83	Acceptable	Industrial Average	15.82

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 2.61%. 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 0.72%. 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. Return on Assets ratio is 6.73%, 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. When compared with the industry average, it was lower, the company's figure is 6.83%.

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

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY : EXCELLENT

LIQUIDITY RATIO

Current Ratio	70.94	Impressive	Industrial Average	1.58
Quick Ratio	70.90
Cash Conversion Cycle	(0.04)

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 70.94 times in 2016, decrease from 71.64 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 70.9 times in 2016, decrease from 71.6 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 -1 day.

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

Current Ratio Uptrend

LEVERAGE: EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.01	Impressive	Industrial Average	0.62
Debt to Equity Ratio	0.01	Impressive	Industrial Average	1.62
Times Interest Earned	10.27	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 10.27 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 0.01 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 : EXCELLENT

ACTIVITY RATIO

Fixed Assets Turnover	-		Industrial Average	-
Total Assets Turnover	9.32	Impressive	Industrial Average	1.94
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	6.94
Receivables Conversion Period	0.15
Receivables Turnover	2,357.58	Impressive	Industrial Average	4.03
Payables Conversion Period	0.20

The company's Account Receivable Ratio is calculated as 2,357.58 and 435.52 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 increased from 2015. This would suggest the company had good performance in the management of its debt collections.

The company's Total Asset Turnover is calculated as 9.32 times and 3.67 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 Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.61
UK Pound	1	INR 90.18
Euro	1	INR 78.95
Thai Baht	1	INR 2.04

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)

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