MIRA
INFORM REPORT
|
Report Date : |
26.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
SUNSTAR CHEMICAL
[ |
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Registered Office : |
624 Moo 4, Bangpoo Industrial
Estate, Soi 7, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
1993 |
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Com. Reg. No.: |
0115536007326 [Former : SOR POR. 4508] |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Adhesive & Sealant Products Manufacturer, Distributor and Exporter |
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No. of Employees : |
80 |
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 |
|
Maximum Credit Limit : |
US$ 2,000,000 |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Company name
SUNSTAR CHEMICAL
[THAILAND] CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 624
MOO 4, BANGPOO
INDUSTRIAL ESTATE, SOI 7,
SUKHUMVIT ROAD, PRAEKSA, MUANG,
SAMUTPRAKARN 10280,
THAILAND
TELEPHONE : [66] 2709-4531-5
FAX :
[66] 2324-0310
E-MAIL
ADDRESS : sunstarcsc@th.sunstar.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1993
REGISTRATION
NO. : 0115536007326 [Former : SOR
POR. 4508]
CAPITAL REGISTERED : BHT. 25,000,000
CAPITAL PAID-UP : BHT.
25,000,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : MARCH 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
MASAKI UKAI, JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 80
LINES
OF BUSINESS : ADHESIVE &
SEALANT PRODUCTS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on November 24,
1993 as a
private limited company under
the name style
SUNSTAR CHEMICAL [THAILAND]
CO., LTD. by
foreign groups, in order to manufacture, distribute and export of adhesives
and sealant products for automotive and
electronics industries. It
currently employs approximately
80 staff.
Subject
is a wholly
owned subsidiary of
Sunstar Engineering Pte.
Ltd., Singapore.
The
subject’s registered address is
624 Moo 4,
Bangpoo Industrial Estate,
Soi 7, Sukhumvit
Rd., Praeksa, Muang,
Samutprakarn 10280, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Koji Miyataka |
|
Japanese |
53 |
|
Mr. Kuniyoshi Tatara |
|
Japanese |
47 |
|
Mr. Masaki Ukai |
[x] |
Japanese |
47 |
AUTHORIZED PERSON
The mentioned director
[x] can sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Masaki Ukai is
the Managing Director.
He is Japanese
nationality with the
age of 47
years old.
Mr. Masaru Nakatsuka is
the General Manager
& Production Manager.
He is Japanese
nationality.
BUSINESS OPERATIONS
The subject is engaged in
manufacturing, distributing and
exporting adhesives and
sealant products for various
industries such as
automobiles, electronics and
general repair shop
under its own
brands, “SUNSTAR” and
“PENQUIN SEAL”, as
well as providing
contract manufacturing service
under OEM customer’s
brand.
PURCHASE
Most of raw
materials and chemicals
are purchased from
local suppliers, the
remaining is imported
from Singapore, Japan,
and Germany.
SALES
70% of the
products is sold
locally to manufacturers, wholesalers
and end-users, the
remaining 30% is
exported to Malaysia,
Philippines, Japan, Indonesia,
India, Korea, Hong
Kong and Taiwan.
MAJOR CUSTOMERS
Automotive assemblers such as
Toyota, Isuzu, Nissan,
Mitsubishi, Honda, Mazda,
Ford and etc., as
well as electronics
industry and general
repair shops.
RELATED AND
AFFILIATED COMPANY
Sunstar Engineering [Thailand]
Co., Ltd.
Business Type :
Manufacturer and distributor
of automotive parts
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
for 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
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
80 staff.
LOCATION DETAILS
The premise
is owned for administrative
office, factory and
warehouse at the
heading address. Premise
is located in
industrial area.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
2,000,000.
COMMENT
The
subject’s operating performance
as of March 31,
2011 was satisfactory
with an increase in
both sales and
net profit comparing
to the pervious year.
The subject reports an
increase in the number of
orders in the
first quarter of
2012. Moreover, the
subject has emphasized on the
development of the products quality
in response to
the customers’ needs. In
addition, the subject offers
contract manufacturing service in
accordance with customers’
requirement as well.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 25,000,000 divided into
25,000 shares of
Bht. 1,000 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at July 30,
2011]
|
NAME |
HOLDING
|
% |
|
|
|
|
|
Sunstar Engineering Pte.
Ltd. Nationality: Singaporean Address : 10 Science
Park Rd., #04-16/17, The Alpha Singapore, Science Park
II,
Singapore 117684 |
24,994 |
99.98 |
|
Mr. Hitoshi Inama Nationality: Japanese Address : Hyogo,
Japan |
1 |
|
|
Mr. Yutaka Ashita Nationality: Japanese Address : Shiga, Japan |
1 |
|
|
Mr. Masayoshi Fujii Nationality: Japanese Address : Osaka,
Japan |
1 |
= 0.02 |
|
Starlakes Inc. Nationality: Japanese Address : Hyogo,
Japan |
1 |
|
|
Mr. Masakatsu Nagamura Nationality: Japanese Address : Osaka,
Japan |
1 |
|
|
Mr. Hiromu Okamoto Nationality: Japanese Address : Osaka,
Japan |
1 |
|
Total Shareholders : 7
Share Structure [as
at July 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
7 |
25,000 |
100.00 |
|
Total |
7 |
25,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Chupong Surachutikarl No.
4325
BALANCE SHEET [BAHT]
The
latest financial figures
published for March
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
6,050,682 |
6,950,236 |
|
Trade Accounts Receivable |
117,568,331 |
99,384,065 |
|
Inventories |
54,814,052 |
52,646,847 |
|
Value Added Tax Receivable |
2,624,587 |
1,557,936 |
|
Other Current Assets
|
4,029,748 |
1,797,605 |
|
Total Current Assets
|
185,087,400 |
162,336,689 |
|
Investment in Subsidiaries |
202,069,485 |
202,069,485 |
|
Fixed Assets |
120,046,682 |
99,770,175 |
|
Intangible Assets |
1,485,308 |
2,024,878 |
|
Other Assets |
1,729,210 |
2,007,897 |
|
Total Assets |
510,418,085 |
468,209,124 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Short-term Loan from
Financial Institution |
62,000,000 |
135,000,000 |
|
Trade Accounts Payable |
142,724,846 |
113,861,866 |
|
Current Portion of Financial
Lease Contract Liabilities |
4,081,895 |
4,029,710 |
|
Other Payable - Related Company |
23,290,172 |
6,951,764 |
|
Accrued Income Tax |
27,738,025 |
17,708,614 |
|
Accrued Expenses |
15,676,302 |
5,617,487 |
|
Other Current Liabilities |
24,592,240 |
13,298,444 |
|
Total Current Liabilities |
300,103,480 |
296,467,885 |
|
Financial Lease Contract Liabilities, Net of Current Portion |
3,871,384 |
7,953,279 |
|
Total Liabilities |
303,974,864 |
304,421,164 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 25,000 shares |
25,000,000 |
25,000,000 |
|
Capital Paid |
25,000,000 |
25,000,000 |
|
Retained Earning Appropriated - Statutory Reserve |
2,500,000 |
2,500,000 |
|
Unappropriated |
178,943,221 |
136,287,960 |
|
Total Shareholders' Equity |
206,443,221 |
163,787,960 |
|
Total Liabilities & Shareholders' Equity |
510,418,085 |
468,209,124 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
787,600,880 |
591,281,597 |
|
Dividend Income |
- |
9,728,703 |
|
Other Income |
5,407,737 |
3,554,135 |
|
Total Revenues |
793,008,617 |
604,564,435 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
540,521,603 |
407,790,091 |
|
Research & Development Expenses
|
10,444,519 |
11,992,351 |
|
Selling Expenses |
45,697,547 |
36,516,414 |
|
Administrative Expenses |
62,750,405 |
48,879,265 |
|
Amortization on Value Added Tax
Receivable |
- |
10,794,901 |
|
Total Expenses |
659,414,074 |
515,973,022 |
|
Profit before Financial
Cost & Income Tax |
133,594,543 |
88,591,413 |
|
Financial Cost |
[3,943,360] |
[7,439,207] |
|
Profit before Income Tax |
129,651,183 |
81,152,206 |
|
Income Tax |
[39,995,922] |
[23,795,248] |
|
Net Profit / [Loss] |
89,655,261 |
57,356,958 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.62 |
0.55 |
|
QUICK RATIO |
TIMES |
0.40 |
0.35 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.56 |
5.93 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.54 |
1.26 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
37.01 |
47.12 |
|
INVENTORY TURNOVER |
TIMES |
9.86 |
7.75 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
54.49 |
61.35 |
|
RECEIVABLES TURNOVER |
TIMES |
6.70 |
5.95 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
96.38 |
101.91 |
|
CASH CONVERSION CYCLE |
DAYS |
(4.88) |
6.56 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
68.63 |
68.97 |
|
SELLING & ADMINISTRATION |
% |
13.77 |
14.44 |
|
INTEREST |
% |
0.50 |
1.26 |
|
GROSS PROFIT MARGIN |
% |
32.06 |
33.28 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
16.96 |
14.98 |
|
NET PROFIT MARGIN |
% |
11.38 |
9.70 |
|
RETURN ON EQUITY |
% |
43.43 |
35.02 |
|
RETURN ON ASSET |
% |
17.57 |
12.25 |
|
EARNING PER SHARE |
BAHT |
3,586.21 |
2,294.28 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.60 |
0.65 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.47 |
1.86 |
|
TIME INTEREST EARNED |
TIMES |
33.88 |
11.91 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
33.20 |
|
|
OPERATING PROFIT |
% |
50.80 |
|
|
NET PROFIT |
% |
56.31 |
|
|
FIXED ASSETS |
% |
20.32 |
|
|
TOTAL ASSETS |
% |
9.01 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
32.06 |
Impressive |
Industrial
Average |
23.48 |
|
Net Profit Margin |
11.38 |
Impressive |
Industrial
Average |
4.51 |
|
Return on Assets |
17.57 |
Impressive |
Industrial
Average |
7.16 |
|
Return on Equity |
43.43 |
Impressive |
Industrial
Average |
13.78 |
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. Gross Profit Margin is 32.06%. When compared with the industry
average, the ratio of the company was higher. This 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. Net Profit Margin ratio is 11.38%,
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
17.57%, 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 43.43%, 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 Downtrend
LIQUIDITY RATIO
|
Current Ratio |
0.62 |
Risky |
Industrial
Average |
1.52 |
|
Quick Ratio |
0.40 |
|
|
|
|
Cash Conversion Cycle |
(4.88) |
|
|
|
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 0.62 times in 2011, increase from 0.55 times, then the company may not
be efficiently using its current assets. 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 0.4 times in 2011, increase
from 0.35 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 -5 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.60 |
Acceptable |
Industrial
Average |
0.49 |
|
Debt to Equity Ratio |
1.47 |
Risky |
Industrial
Average |
0.99 |
|
Times Interest Earned |
33.88 |
Impressive |
Industrial
Average |
9.83 |
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 33.88 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 0.6 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
6.56 |
Impressive |
Industrial
Average |
4.21 |
|
Total Assets Turnover |
1.54 |
Satisfactory |
Industrial
Average |
1.58 |
|
Inventory Conversion Period |
37.01 |
|
|
|
|
Inventory Turnover |
9.86 |
Impressive |
Industrial
Average |
6.77 |
|
Receivables Conversion Period |
54.49 |
|
|
|
|
Receivables Turnover |
6.70 |
Impressive |
Industrial
Average |
4.43 |
|
Payables Conversion Period |
96.38 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.90 |
|
|
1 |
Rs.80.77 |
|
Euro |
1 |
Rs.67.40 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.