Part 3

Financial status and operation result

13. Important financial data

A) Independent Auditor’s Report

To the Shareholders of Siam Food Products Public Company Limited

Opinion

I have audited the consolidated and separate financial statements of
Siam Food Products Public Company Limited and its subsidiaries (the
“Group”) and of Siam Food Products Public Company Limited (the
“Company”), respectively, which comprise the consolidated and separate
statements of financial position as at 30 September 2018, the
consolidated and separate statements of comprehensive income, changes in
equity and cash flows for the year then ended, and notes, comprising a
summary of significant accounting policies and other explanatory
information.

In my opinion, the accompanying consolidated and separate financial
statements present fairly, in all material respects, the financial
position of the Group and the Company, respectively, as at 30 September
2018 and their financial performance and cash flows for the year then
ended in accordance with Thai Financial Reporting Standards (TFRSs).

Basis for Opinion

I conducted my audit in accordance with Thai Standards on Auditing
(TSAs). My responsibilities under those standards are further described
in the Auditor’s Responsibilities for the Audit of the Consolidated and
Separate Financial Statements section of my report. I am independent of
the Group and the Company in accordance with the Code of Ethics for
Professional Accountants issued by the Federation of Accounting
Professions that is relevant to my audit of the consolidated and
separate financial statements, and I have fulfilled my other ethical
responsibilities in accordance with these requirements. I believe that
the audit evidence I have obtained is sufficient and appropriate to
provide a basis for my opinion.

Key Audit Matters

Key audit matters are those matters that, in my professional judgment,
were of most significance in my audit of the consolidated and separate
financial statement of the current period. These matters were addressed
in the context of my audit of the consolidated and separate financial
statements as a whole, and in forming my opinion thereon, and I do not
provide a separate opinion on these matters.

+----------------------------------+-----------------------------------+
| Recognition of deferred tax      |                                   |
| assets                           |                                   |
+----------------------------------+-----------------------------------+
| Refer to notes 3 (t) and 14 to   |                                   |
| the financial statements         |                                   |
+----------------------------------+-----------------------------------+
| The key audit matter             | How the matter was addressed in   |
|                                  | the audit                         |
+----------------------------------+-----------------------------------+
| The Group and the Company have   | My audit procedures included:     |
| recognised deferred tax assets   |                                   |
| arising from unutilised tax      | -   understanding the basis of    |
| losses carried forward. The      |     forecasting future taxable    |
| recoverability of the deferred   |     profit;                       |
| tax asset is dependent on future |                                   |
| taxable profits and the ability  | -   assessing the reasonableness  |
| to utilise those losses in the   |     of the key assumptions use by |
| future prior to the expiry of    |     management in the forecast of |
| tax losses. Because the          |     future taxable profit by      |
| consideration of the forecast of |     considering with the internal |
| future taxable profits and       |     and external sources of       |
| assessing the ability to utilise |     information, and considering  |
| those tax losses involved a      |     the operation plan approved   |
| significant level of judgment in |     by management by comparing to |
| determining the key assumptions  |     the actual and the historical |
| of management. This area was     |     operating results and         |
| focused on my audit accordingly. |     assessed the sensitivity of   |
|                                  |     the outcomes to reasonably    |
|                                  |     possible changes in           |
|                                  |     assumptions, including of     |
|                                  |     calculation testing the       |
|                                  |     future taxable profits;       |
|                                  |                                   |
|                                  | -   evaluating the adequacy of    |
|                                  |     the disclosure in accordance  |
|                                  |     with Thai Financial Reporting |
|                                  |     Standards.                    |
+----------------------------------+-----------------------------------+

+----------------------------------+-----------------------------------+
| Valuation of investments in      |                                   |
| subsidiaries and property, plant |                                   |
| and equipment of the             |                                   |
| subsidiaries                     |                                   |
+----------------------------------+-----------------------------------+
| Refer to notes 3 (h), 3 (j), 11  |                                   |
| and 13 to the financial          |                                   |
| statements                       |                                   |
+----------------------------------+-----------------------------------+
| The key audit matter             | How the matter was addressed in   |
|                                  | the audit                         |
+----------------------------------+-----------------------------------+
| The subsidiaries have the        | My audit procedures included:     |
| operating loss and deficits.     |                                   |
| This indicate that investments   | -   understanding the process of  |
| in subsidiaries and property,    |     identifying and considering   |
| plant and equipment of those     |     the assessment of impairment  |
| subsidiaries may be impair. The  |     on investments in             |
| management considers the         |     subsidiaries and property,    |
| impairment at the reporting      |     plant and equipment;          |
| period by the estimated          |                                   |
| recoverable amount was based on  | -   assessing the reasonableness  |
| its value in use, determined by  |     of the key assumptions use by |
| discounting future cash flows    |     management in the forecast of |
| from its operations.             |     future profit and cash flows  |
|                                  |     projection by considering     |
| Because the projection of cash   |     with the internal and         |
| flows involved a significant     |     external sources of           |
| level of judgment in determining |     information and considering   |
| the key assumptions of           |     the operation plan approved   |
| management. This area was        |     by management by comparing to |
| focused on my audit accordingly. |     the actual and the historical |
|                                  |     operating results, also       |
|                                  |     consulted with valuation      |
|                                  |     specialist relating to        |
|                                  |     financial methodologies used  |
|                                  |     in the calculating the        |
|                                  |     estimates and discount rate;  |
|                                  |                                   |
|                                  | -   evaluating the sensitivity of |
|                                  |     key assumptions used in       |
|                                  |     future cash flows projection  |
|                                  |     which affect to the           |
|                                  |     recoverable amount of         |
|                                  |     cash-generating unit;         |
|                                  |                                   |
|                                  | -   evaluating the adequacy of    |
|                                  |     the disclosure in accordance  |
|                                  |     with Thai Financial Reporting |
|                                  |     Standards.                    |
+----------------------------------+-----------------------------------+

Other Information

Management is responsible for the other information. The other
information comprises the information included in the annual report, but
does not include the consolidated and separate financial statements and
my auditor’s report thereon. The annual report is expected to be made
available to me after the date of this auditor's report.

My opinion on the consolidated and separate financial statements does
not cover the other information and
I will not express any form of assurance conclusion thereon.

In connection with my audit of the consolidated and separate financial
statements, my responsibility is to read the other information
identified above when it becomes available and, in doing so, consider
whether the other information is materially inconsistent with the
consolidated and separate financial statements or my knowledge obtained
in the audit, or otherwise appears to be materially misstated.

Responsibilities of Management and Those Charged with Governance for the
Consolidated and Separate Financial Statements

Management is responsible for the preparation and fair presentation of
the consolidated and separate financial statements in accordance with
TFRSs, and for such internal control as management determines is
necessary to enable the preparation of consolidated and separate
financial statements that are free from material misstatement, whether
due to fraud or error.

In preparing the consolidated and separate financial statements,
management is responsible for assessing the Group’s and the Company’s
ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Group and
the Company or to cease operations, or has no realistic alternative but
to do so.

Those charged with governance are responsible for overseeing the Group’s
and the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated and
Separate Financial Statements

My objectives are to obtain reasonable assurance about whether the
consolidated and separate financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes my opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted
in accordance with TSAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated and separate financial
statements.

As part of an audit in accordance with TSAs, I exercise professional
judgment and maintain professional skepticism throughout the audit. I
also:

-   Identify and assess the risks of material misstatement of the
    consolidated and separate financial statements, whether due to fraud
    or error, design and perform audit procedures responsive to those
    risks, and obtain audit evidence that is sufficient and appropriate
    to provide a basis for my opinion. The risk of not detecting a
    material misstatement resulting from fraud is higher than for one
    resulting from error, as fraud may involve collusion, forgery,
    intentional omissions, misrepresentations, or the override of
    internal control.

-   Obtain an understanding of internal control relevant to the audit in
    order to design audit procedures that are appropriate in the
    circumstances, but not for the purpose of expressing an opinion on
    the effectiveness of the Group’s and the Company’s internal control.

-   Evaluate the appropriateness of accounting policies used and the
    reasonableness of accounting estimates and related disclosures made
    by management.

-   Conclude on the appropriateness of management’s use of the going
    concern basis of accounting and, based on the audit evidence
    obtained, whether a material uncertainty exists related to events or
    conditions that may cast significant doubt on the Group’s and the
    Company’s ability to continue as a going concern. If I conclude that
    a material uncertainty exists, I am required to draw attention in my
    auditor’s report to the related disclosures in the consolidated and
    separate financial statements or, if such disclosures are
    inadequate, to modify my opinion. My conclusions are based on the
    audit evidence obtained up to the date of my auditor’s report.
    However, future events or conditions may cause the Group and the
    Company to cease to continue as a going concern.

-   Evaluate the overall presentation, structure and content of the
    consolidated and separate financial statements, including the
    disclosures, and whether the consolidated and separate financial
    statements represent the underlying transactions and events in a
    manner that achieves fair presentation.

-   Obtain sufficient appropriate audit evidence regarding the financial
    information of the entities or business activities within the Group
    to express an opinion on the consolidated financial statements. I am
    responsible for the direction, supervision and performance of the
    group audit. I remain solely responsible for my audit opinion.

I communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control
that I identify during my audit.

I also provide those charged with governance with a statement that I
have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that
may reasonably be thought to bear on my independence, and where
applicable, related safeguards.

From the matters communicated with those charged with governance, I
determine those matters that were of most significance in the audit of
the consolidated and separate financial statements of the current period
and are therefore the key audit matters. I describe these matters in my
auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, I determine
that a matter should not be communicated in my report because the
adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.

(Ekkasit Chuthamsatid)

Certified Public Accountant

Registration No. 4195

KPMG Phoomchai Audit Ltd.

Bangkok

27 November 2018

B) Schedule of financial statement summary (Consolidated financial
statement)

(Unit : 1,000 Baht)

  ----------------- -------------- ------- ----------- ------- ----------- -------
                    Consolidated                                           
                    Financial                                              
                    Statements                                             

                    2018 (12               2017 (12            2016 (9     
                    months)                months)             months)     

                    Amount         %       Amount      %       Amount      %

  Total Assets      2,766,354      100     2,815,110   100     2,791,850   100

  Total Liabilities 386,480        13.97   390,908     13.89   326,435     11.69

  Shareholders’     2,379,874      86.03   2,424,202   86.11   2,465,415   88.31
  Equity                                                                   

  Total Revenues    2,430,762      100     3,586,182   100     3,201,598   100

  Revenues from     2,376,064      97.75   3,510,528   97.89   3,077,433   96.12
  sale                                                                     

  Gross Profit      166,258        7       462,135     13.16   196,988     6.40
  (loss)                                                                   

  Net Profit (loss) 168,977        6.95    384,550     10.72   191,035     5.97

  Net cash from     (10,432)               501,443             540,410     
  (used in)                                                                
  operating                                                                
  activities                                                               

  Net cash from     (110,826)              246,656             (115,240)   
  (used in)                                                                
  investing                                                                
  activities                                                               

  Net cash from     (111,078)              (325,588)           (50,084)    
  (used in)                                                                
  financing                                                                
  activities                                                               

  Net increase      (232,334)              422,511             375,086     
  (decrease) in                                                            
  cash and cash                                                            
  equivalents                                                              
  ----------------- -------------- ------- ----------- ------- ----------- -------

C) The important financial ratio reflects the financial status and
operation result.

+------------------------------+-------+---------+---------+---------+
|                              |       | Conso   |         |         |
|                              |       | lidated |         |         |
|                              |       | Fi      |         |         |
|                              |       | nancial |         |         |
|                              |       | Sta     |         |         |
|                              |       | tements |         |         |
+------------------------------+-------+---------+---------+---------+
| Financial Ratio              | Unit  | 2018    | 2017    | 2016    |
|                              |       |         |         |         |
|                              |       |         | (12     | (9      |
|                              |       |         | months) | months) |
+------------------------------+-------+---------+---------+---------+
|                              |       | (12     |         |         |
|                              |       | months) |         |         |
+------------------------------+-------+---------+---------+---------+
| Liquidity Ratios             |       |         |         |         |
+------------------------------+-------+---------+---------+---------+
| Current Ratio                | Times | 5.11    | 4.95    | 4.49    |
+------------------------------+-------+---------+---------+---------+
| Quick Ratio                  | Times | 3.40    | 3.61    | 2.69    |
+------------------------------+-------+---------+---------+---------+
| Avg.Collection Period        | Days  | 24.68   | 17.42   | 29.90   |
+------------------------------+-------+---------+---------+---------+
| Avg.No.Days Inventory In     | Days  | 70.36   | 44.03   | 53.25   |
| Stock                        |       |         |         |         |
+------------------------------+-------+---------+---------+---------+
| Profitability Ratios         |       |         |         |         |
+------------------------------+-------+---------+---------+---------+
| Gross Profit Margin          | %     | 7.00    | 13.16   | 6.40    |
+------------------------------+-------+---------+---------+---------+
| Net Profit Margin            | %     | 6.95    | 10.72   | 5.97    |
+------------------------------+-------+---------+---------+---------+
| Earning (Per)Share           | Baht  | 8.05    | 18.31   | 9.10    |
+------------------------------+-------+---------+---------+---------+
| Price earnings Ratio         | Times | 23.86   | 12.23   | 23.08   |
+------------------------------+-------+---------+---------+---------+
| Assets Management Ratios     |       |         |         |         |
+------------------------------+-------+---------+---------+---------+
| Return On Equity (ROE)       | %     | 7.10    | 15.86   | 7.75    |
+------------------------------+-------+---------+---------+---------+
| Return On Total Asset (ROA)  | %     | 6.11    | 13.66   | 6.84    |
+------------------------------+-------+---------+---------+---------+
| Return On Total Fixed Asset  | %     | 28.13   | 60.13   | 27.37   |
+------------------------------+-------+---------+---------+---------+
| Total Assets Turnover        | Times | 0.85    | 1.25    | 1.10    |
+------------------------------+-------+---------+---------+---------+
| Leverage Ratios              |       |         |         |         |
+------------------------------+-------+---------+---------+---------+
| Debt To Total Assets         | Times | 0.14    | 0.14    | 0.12    |
+------------------------------+-------+---------+---------+---------+
| Debt To Equity (D/E)         | Times | 0.16    | 0.16    | 0.13    |
+------------------------------+-------+---------+---------+---------+

14. ANALYSIS OF FINANCIAL STATUS AND OPERATING PERFORMANCE

Business Overview

The consolidated Income Statements for the year ended September 30,2018,
the company earned the total income of Baht 2,430.76 million, net loss
from the operation in amount of Baht 36.57 million. Upon combination
with the profit share from the associated company in amount of Baht
205.55 million, the company earned the net profit of total Baht 168.98
million, while in the same period ended September 30, 2017, the company
earned the total income of Baht 3,586.18 million, net profit from the
operation in amount of Baht 209.07 million, upon combination with the
profit share from the associated company in amount of Baht 175.48
million, the company earned the net profit of total Baht 384.55 million,
change in net profit decreasing by Baht 215.57 million or 56.06%.

Analysis of Income Statements for the year ended September 30,2018 (The
audited Consolidated Financial Statements)

1)  Revenue from sale amount of Baht 2,376.06 million, a decreased by
    Baht 1,134.47 million or 32.32% from the same period of the previous
    year. Because selling price decreased due to Thailand climate come
    to normal its effect to fruit was not short as Indonesia and
    Philippine and it had high competition in selling price. Thai Baht
    had been stronger from the previous year about 7% against the US
    dollar.

Ratio of cost of goods sold and sales for the year 2018 was 93% while
the same period of the previous year equal to 87%. because selling price
of world market decreased more than price of fresh pineapple.

2) The company had loss on changes in fair value of biological assets of
Baht 63.28 million in the year 2018 which effected from the company has
adopted TAS 41: Agriculture start from 1 January 2016 because fruit cost
from farmers as at September 30, 2018 has decreased which was lower than
our plantation cost. While the same period of the previous year the
company had loss on changes in fair value of biological assets of Baht
8.16 million.

3) Idle capacity cost of subsidiary company decreased by Baht 23.59
million due to subsidiary company has fresh pineapple increasing.

4) About the operation result of the associated company for the year
2018; Eastern Seaboard Industrial (Rayong) Co., Ltd., the company
recognized profit sharing according to the equity method in Statement of
Income in amount of Baht 205.55 million, increasing from the same period
of previous year Baht 30.07 million or 17.14% due to the associated
company had revenue from sale of real estated increased.

As at 30 September 2018, the consolidated statement of financial
position had a Debt to Equity Ratio at 0.16 equal to as at 30 September
2017.

Financial Status

As at 30 September 2018, the company’s statements of financial position
presents total assets of Baht 2,766.35 million, decreased of Baht 48.76
million from balance as at 30 September 2017 or 1.73%. The details of
changes in assets and liabilities are as follows.

Assets

-Cash and cash equivalents an decreased Baht 232.33 million.

-Account receivable decreased Baht 38.77 million.

-Property, plant and equipment decreased Baht 38.92 million.

- Non-current biological assets decreased Baht 28.67 million.

- Investment in an associate decreased Baht 10.06 million.

- Current investment increased Baht 177.47 million.

-Inventories increased Baht 79.39 million.

- Deferred tax assets increased Baht 23.66 million.

- Other current assets increased Baht 12.56 million.

- Current biological assets increased Baht 7.05 million.

Liabilities The company’s total liabilities were Baht 386.48 million, an
decreased by Baht 4.43 as at 30 September 2017 million from the previous
year or 1.13%. The main transactions were decreased in Account payable
decreased Baht 55.17 million, other Account payable decreased Baht 23.82
million, Advances received from sale of goods decreased Bath 43.01
million, short-term loan from associate increased Baht 100 million,
other current liabilities increased Baht 13.45 million, employee benefit
increased Baht 2.44 million and other non- current liabilities increased
Baht 1.68 million.

The Shareholders’ Equity In 2018, the balance was Baht 2,379.87 million,
decreased by Baht 44.33 million from balance as at 30 September 2017 or
1.83%, Dividends paid Baht 210 million, increased in net profit from
operating for period nine months of the year 2018 amount Baht 168.98
million and decreased in other comprehensive income Baht 3.31 million.

Statement of Cash Flow

The statement of cash flow for nine-month period ended 30 September 2018
shows that the company had cash and cash equivalents decreased from
balance as at September 30, 2017 by Baht 232.33 million. The cash flow
was separated from each activity as the following :

1. Net cash flow used in operating activities in the amount of Baht
(10.43) million, there were main activities as the following :

  -------------------------------------------------- ---------- ------------
  - Cash received form operation.                    204.88     Million Baht

  - Cash received from trade accounts receivable.    37.09      Million Baht

  - Cash received from creditors of other current    12.27      Million Baht
  liabilities                                                   

  - Cash used in inventories.                        (121.42)   Million Baht

  - Cash used in creditors' trade accounts payable.  (55.17)    Million Baht

  - Cash received in advances of goods decreased.    (43.01)    Million Baht

  - Cash used in other payable.                      (22.48)    Million Baht

  - Cash used in other assets                        (12.53)    Million Baht

  - Cash used in employee benefit.                   (5.24)     Million Baht

  - Cash used in other non-current assets            (4.50)     Million Baht
  -------------------------------------------------- ---------- ------------

2. Net cash flow used in investing activities in the amount of Baht
(110.82) million, there were main activities as the following :

  --------------------------------------------------- ---------- -----------
  - Cash received from dividend from associated       227.40     Million
  company.                                                       Baht

  - Cash received from Interest .                     11.88      Million
                                                                 Baht

  - Cash used in purchases of other debt securities   (177.70)   Million
                                                                 Baht

  - Cash used for increasing crop of biological       (137.38)   Million
  assets.                                                        Baht

  - Cash used in purchases of property, plant and     (35.69)    Million
  equipment.                                                     Baht
  --------------------------------------------------- ---------- -----------

3. Net cash flow used in financing activities in the amount of Baht
(111.08) million ,there were main activities as the following :

  --------------------------------------------------- ---------- -----------
  - Dividend paid.                                    (210.00)   Million
                                                                 Baht

  - Cash received from short-term loan from           100.00     Million
  associate.                                                     Baht
  --------------------------------------------------- ---------- -----------