MIRA
INFORM REPORT
|
Report Date : |
21.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
STAR CARPET
CO., LTD. |
|
|
|
|
Registered Office : |
179 Moo
3, Suranaree Industrial
Estate, T. Nongbuasala, A.
Muang, Nakornratchasima 30000 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
14.12.1994 |
|
|
|
|
Com. Reg. No.: |
0305537002237 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer,
Exporter and Distributor of Carpet. |
|
|
|
|
No. of Employees : |
36 |
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 Limited |
US$ 1,000,000 |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Thailand |
B1 |
B1 |
|
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, generally pro-investment policies, and strong export industries, Thailand enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.
|
Source : CIA |
Company name
STAR
CARPET CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 179
MOO 3, SURANAREE
INDUSTRIAL ESTATE,
T. NONGBUASALA,
A. MUANG,
NAKORNRATCHASIMA 30000
TELEPHONE : [66] 44 212-705-6, 081
924-7757
FAX :
[66] 44
212-708
E-MAIL
ADDRESS : starex@starmanufacturing.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1994
REGISTRATION
NO. : 0305537002237 [Former : NOR MOR. 1186]
TAX
ID NO. : 3301013151
CAPITAL REGISTERED : BHT. 30,000,000
CAPITAL PAID-UP : BHT.
30,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
FOREIGN : 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. CHAUDHRY SABAHAT
ELLAHI, PAKISTANI
MANAGING DIRECTOR & FACTORY
MANAGER
NO.
OF STAFF : 36
LINES
OF BUSINESS : CARPET
MANUFACTURER,
EXPORTER AND DISTRIBUTOR
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 December 14, 1994
as a private
limited company, under
the originally registered
name “Happidea Carpet
Co., Ltd.,” by
Thai and Pakistani
groups. On March 8,
2000, subject’s name was
changed to STAR
CARPET CO., LTD.
Its business objective
is to manufacture,
distribute and export wide
range of carpets
and related products
to both domestic
and international markets,
with the promotional
privilege granted by
the Board Of
Investment [BOI]. It currently
employs 36 staff.
Currently
Star Carpet Co., Ltd. has a
number of Woven
Interlock Carpet Products
tested in accordance and approved with IMO Resolution AS. 1530.1989 to
allow for their
use in schools,
hospital and ships.
The subject’s registered address
is 179 Moo 3, Suranaree
Industrial Estate, T. Nongbuasala, A. Muang, Nakornratchasima 30000,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chaudhry Sabahat Ellahi |
[x] |
Pakistani |
52 |
|
Mr. Jewed Chaudhry |
|
Pakistani |
63 |
|
Mr. Suracha Sirichotekunakorn |
|
Thai |
55 |
|
Mrs. Seeme Ellahi |
|
Pakistani |
54 |
AUTHORIZED PERSON
The mentioned director
[x] can sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Chaudhry Sabahat Ellahi
is the Managing
Director & Factory Manager.
He is Pakistani
nationality with the
age of 52
years old.
Ms. Rawan Rungruang is
the Assistant Managing
Director, Sales & Marketing Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and distributing wide
range of carpets,
rugs and related
products, including PVC
carpet, door mats,
car mats and
etc., under the
brand name “STAREX”,
as well as
manufacturing service of
mats and rugs with
variety collections to
OEM customers.
PRODUCTION CAPACITY
6,000,000 square meters
per annum
PURCHASE
Most of raw
materials and accessories
are purchased from
local suppliers, and
the remaining as well as
synthetic yarn are
imported from Germany,
Italy, Japan, Taiwan
and Republic of
China.
MAJOR SUPPLIER
Star Manufacturing Co.,
Ltd. : Thailand
EXPORT [COUNTRIES]
90%
of the products
is exported to
Singapore, Japan, Vietnam,
Taiwan, U.S.A., and
the countries in
South America, Europe
and Asia.
SALES [LOCAL]
10% of the
products is sold
locally by wholesale
to dealers and
end-users.
MAJOR CUSTOMERS
TRS Marketing [Thailand] Co.,
Ltd. : Thailand
Star Manufacturing Co.,
Ltd. : Thailand
RELATED AND AFFILIATED
COMPANIES
Star Manufacturing Co.,
Ltd.
Business Type :
Manufacturer and distributor of
Polypropylene BCF Yarn.
Star Synthetic Yarns
Co., Ltd.
Business Type :
Manufacturer and distributor of
Synthetic Yarns.
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 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
Bangkok Bank Public
Co., Ltd.
TMB Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 36
staff.
LOCATION
DETAILS
The premise is
rented for administrative office
and factory at
the heading address.
Premise is located
in provincial.
Branches:
- 53/314
Moo 1, Pathumthani-Rangsit Rd.,
T. Banklang, A. Muang,
Pathumthani 12000.
Tel.
: [66] 2567-6439, Fax. : [66] 2567-6483.
- 178
Moo 3, Suranaree Industrial Estate,
T. Nongbuasala, A. Muang, Nakornratchasima
30000
REMARK
Maximum
Credit Should Be
Granted At US$ 1,000,000.
COMMENT
The
subject is the
Thailand’s only manufacturer of premium Woven
Interlock and synthetic carpets
for both the
commercial and residential markets,
including hospitality,
government, education or
corporate business. The
subject reported its slow
sales in 2011
compared to the
previous year. Its
sales has been
dropped from sluggish exported markets
in the past
few years. However,
domestic consumption remains
moderate and current
business outlook is
positive.
FINANCIAL INFORMATION
The capital was
registered at Bht.
10,000,000 divided into
1,000,000 shares of
Bht. 10 each.
The
capital was increased
later as follows:
Bht. 20,000,000
on August 24,
2001
Bht. 30,000,000
on January 19,
2010
The
latest registered capital
was increased to
Bht. 30,000,000 divided into
3,000,000 shares of
Bht. 10 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
August 20, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Suracha Sirichotekunakorn Nationality: Thai Address : 104
Ladprao 80 Rd.,
Wangthonglang, Bangkok |
855,000 |
28.50 |
|
Mr. Chaudhry Sabahat Ellahi Nationality: Pakistani Address : 75-77
Winkim Rd., Central
Hong Kong |
600,000 |
20.00 |
|
Mr. Meea Sajjad Halil Nationality: American Address : 6123
Woodland Street, Dallas,
U.S.A. |
400,000 |
13.33 |
|
Mrs. Vipa Sirichotekunakorn Nationality: Thai Address : 104
Ladprao 80 Rd.,
Wangthonglang, Bangkok |
355,000 |
11.83 |
|
Mrs. Roida Halil Nationality: American Address : 6123
Woodland Street, Dallas,
U.S.A. |
350,000 |
11.67 |
|
Mrs. Rawal Rungruang Nationality: Thai Address : 1739 Dej-udom Rd.,
T. Naimaung, A. Muang,
Nakornratchasima |
311,000 |
10.37 |
|
Mrs. Seeme Ellahi Nationality: Pakistani Address : 75-77
Winkim Rd., Central
Hong Kong |
111,000 |
3.70 |
|
Mr. Chatmongkol Munsucharit Nationality: Thai Address : 205/2
Moo 16, T. Naimuang, A. Pimai,
Nakornratchasima |
9,000 |
0.3 |
|
Mr. Jewed Chaudhry Nationality: Pakistani Address : 75-77
Winkim Rd., Central
Hong Kong |
9,000 |
0.3 |
Total Shareholders : 9
Share Structure [as
at August 20,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
1,530,000 |
51.00 |
|
Foreign |
5 |
1,470,000 |
49.00 |
|
Total |
9 |
3,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Chavalit Chanthim No. 3215
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash at Bank
|
606,013.06 |
615,096.14 |
|
Short-term Investment |
191,080.98 |
188,558.95 |
|
Trade Accounts &
Other Receivable |
31,580,269.76 |
29,882,135.45 |
|
Inventories |
21,108,120.51 |
25,181,421.36 |
|
|
|
|
|
Total Current Assets
|
53,485,484.31 |
55,867,211.90 |
|
Fixed Assets |
29,374,609.00 |
30,898,436.80 |
|
Total Assets |
82,860,093.31 |
86,765,648.70 |
LIABILITIES & SHAREHOLDERS’ EQUITY
[BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts &
Other Payable |
19,005,204.62 |
42,092,299.13 |
|
|
|
|
|
Total Current Liabilities |
19,005,204.62 |
42,092,299.13 |
|
Long-term Loan from Related Person |
10,950,907.95 |
3,347,382.65 |
|
Total Liabilities |
29,956,112.57 |
45,439,681.78 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 3,000,000 shares |
30,000,000.00 |
30,000,000.00 |
|
|
|
|
|
Capital Paid |
30,000,000.00 |
30,000,000.00 |
|
Retained Earnings |
22,903,980.74 |
11,325,966.92 |
|
Total Shareholders' Equity |
52,903,980.74 |
41,325,966.92 |
|
Total Liabilities &
Shareholders' Equity |
82,860,093.31 |
86,765,648.70 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
117,919,093.32 |
147,338,762.27 |
|
Other Income |
348,611.58 |
3,983,852.05 |
|
Total Revenues |
118,267,704.90 |
151,322,614.32 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
90,850,464.66 |
109,869,249.70 |
|
Selling Expenses |
10,167,961.85 |
18,755,235.89 |
|
Administrative Expenses |
5,663,884.10 |
6,842,622.29 |
|
Total Expenses |
106,682,310.61 |
135,467,107.88 |
|
|
|
|
|
Profit / [Loss] before Financial Cost |
11,585,394.29 |
15,855,506.44 |
|
Financial Cost |
[7,380.47] |
[20,119.85] |
|
|
|
|
|
Net Profit / [Loss] |
11,578,013.82 |
15,835,386.59 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
2.81 |
1.33 |
|
QUICK RATIO |
TIMES |
1.70 |
0.73 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.01 |
4.77 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.42 |
1.70 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
84.80 |
83.66 |
|
INVENTORY TURNOVER |
TIMES |
4.30 |
4.36 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
97.75 |
74.03 |
|
RECEIVABLES TURNOVER |
TIMES |
3.73 |
4.93 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
76.36 |
139.84 |
|
CASH CONVERSION CYCLE |
DAYS |
106.20 |
17.85 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
77.04 |
74.57 |
|
SELLING & ADMINISTRATION |
% |
13.43 |
17.37 |
|
INTEREST |
% |
0.01 |
0.01 |
|
GROSS PROFIT MARGIN |
% |
23.25 |
28.13 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
9.82 |
10.76 |
|
NET PROFIT MARGIN |
% |
9.82 |
10.75 |
|
RETURN ON EQUITY |
% |
21.88 |
38.32 |
|
RETURN ON ASSET |
% |
13.97 |
18.25 |
|
EARNING PER SHARE |
BAHT |
3.86 |
5.28 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.36 |
0.52 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.57 |
1.10 |
|
TIME INTEREST EARNED |
TIMES |
1,569.74 |
788.05 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(19.97) |
|
|
OPERATING PROFIT |
% |
(26.93) |
|
|
NET PROFIT |
% |
(26.89) |
|
|
FIXED ASSETS |
% |
(4.93) |
|
|
TOTAL ASSETS |
% |
(4.50) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
23.25 |
Acceptable |
Industrial
Average |
32.24 |
|
Net Profit Margin |
9.82 |
Impressive |
Industrial
Average |
5.44 |
|
Return on Assets |
13.97 |
Impressive |
Industrial
Average |
5.99 |
|
Return on Equity |
21.88 |
Impressive |
Industrial
Average |
10.24 |
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 23.25%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company was originated from the 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 9.82%,
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 13.97%, 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 21.88%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
2.81 |
Impressive |
Industrial
Average |
1.88 |
|
Quick Ratio |
1.70 |
|
|
|
|
Cash Conversion Cycle |
106.20 |
|
|
|
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 2.81 times in 2011, increased from 1.33 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 1.7 times in 2011,
increased from 0.73 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 107 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.36 |
Impressive |
Industrial
Average |
0.36 |
|
Debt to Equity Ratio |
0.57 |
Impressive |
Industrial
Average |
0.58 |
|
Times Interest Earned |
1,569.74 |
Impressive |
Industrial
Average |
5.71 |
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 1569.74 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 0.36 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.01 |
Impressive |
Industrial
Average |
1.99 |
|
Total Assets Turnover |
1.42 |
Impressive |
Industrial
Average |
1.01 |
|
Inventory Conversion Period |
84.80 |
|
|
|
|
Inventory Turnover |
4.30 |
Impressive |
Industrial
Average |
3.12 |
|
Receivables Conversion Period |
97.75 |
|
|
|
|
Receivables Turnover |
3.73 |
Acceptable |
Industrial
Average |
5.12 |
|
Payables Conversion Period |
76.36 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.91 |
|
|
1 |
Rs.87.38 |
|
Euro |
1 |
Rs.70.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.