MIRA INFORM REPORT
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Report Date : |
05.10.2012 |
IDENTIFICATION DETAILS
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Name : |
STAR MANUFACTURING CO., LTD. |
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Registered Office : |
179 Moo 3, Suranaree Industrial
Estate Zone, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
29.09.1989 |
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Com. Reg. No.: |
0105532092591 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Exporter and Distributor of Synthetic Fibers |
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No. of Employees : |
130 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
With a well-developed
infrastructure, a free-enterprise economy, generally pro-investment policies,
and strong export industries,
Source : CIA
Company name
STAR
MANUFACTURING CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 179
MOO 3, SURANAREE INDUSTRIAL
ESTATE ZONE,
T.
NONGBUASALA, A. MUANG,
NAKORNRATCHASIMA 30000
TELEPHONE : [66] 44 212-705-7,
44 327-408-9
FAX :
[66] 44 212-708
E-MAIL
ADDRESS : starex99@starmanufacturing.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0105532092591 [Former : 9259/2532]
TAX
ID NO. : 3101760583
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT.
50,000,000
SHAREHOLDER’S PROPORTION : THAI : 9.72%
PAKISTANI :
90.28%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. CHAUDHRY SABAHAT
ELLAHI, PAKISTANI
MANAGING DIRECTOR
NO.
OF STAFF : 130
LINES
OF BUSINESS : SYNTHETIC FIBERS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was established
on September 29,
1989 as a
private limited company under
the name style STAR
MANUFACTURING CO., LTD.,
by Pakistani and
Thai groups, in
order to manufacture
synthetic fibers for
textile industry to both
domestic and international markets.
It currently employs
130 staff.
The subject’s registered address is 179 Moo
3, Suranaree Industrial Estate Zone,
THE BOARD OF
DIRECTORS
|
Name |
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Nationality |
Age |
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Mr. Chaudhry Sabahat Ellahi |
[x] |
Pakistani |
52 |
|
Mrs. Seemee Ilahi |
|
Pakistani |
54 |
AUTHORIZED PERSON
Only the mentioned
director [x] can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Chaudhry Sabahat Ellahi
is the Managing
Director.
He is Pakistani
nationality with the
age of 52
years old.
Ms. Lawan Rungruang
is the General
Manager.
She is Thai
nationality with the
age of 68
years old.
Mrs. Seeme Ilahi is
the Office Manager.
She is Pakistani
nationality with the
age of 54 years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
of synthetic fibers,
especially polypropylene BCT
yarn in the Denier Range
of 1800 up
to 7200, which is
ideally suited for
5/32,1/8,1/10,1/12 high speed
tufting machines.
BRAND NAME
“STAREX”
PRODUCTION CAPACITY
2,000 tons per
year
PURCHASE
Most of raw
materials & yarn are
purchased from local
suppliers, the remaining,
as well as
machinery are imported
from Germany, Japan,
Republic of China,
Taiwan, India and
United States of
America.
EXPORT
80% of the
products is exported
to India, United
Kingdom, Pakistan, Japan,
Malaysia, Indonesia, Australia,
Republic of China
and Taiwan.
SALES [LOCAL]
20% of the
products is sold
and serviced locally
by wholesale to
manufacturers and end-users.
MAJOR CUSTOMER
Star Yarns
RELATED AND AFFILIATED
COMPANIES
Star Synthetic Yarns
Co., Ltd.
Business Type :
Manufacturer of synthetic
yarns.
Star Carpet Co.,
Ltd.
Business Type :
Manufacturer of carpets.
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
L/C at sight
or T/T.
BANKING
TMB Bank Public
Co., Ltd.
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
130 staff.
LOCATION DETAILS
The
premise is owned
for administrative office
and factory at
the heading address.
Premise is located
in industrial area.
Branch
office is located at 178
Moo 3, Suranaree Industrial Estate Zone,
Nakornratchasima-Chokchai
Rd., T. Nongbuasala, A. Muang,
Nakornratchasima 30000.
COMMENT
Consumption slowdown caused by economic uncertainty has resulted
to decline and delay expansion
and new investment of textile industry.
Despite
slowing down of sales
revenue in the
past year, the subject
still maintains its excellent
producing the highest
quality Polypropylene DCF
Yarn to the
Far-East market.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 5,000,000 divided into 50,000
shares of Bht.
100 each.
The
capital was increased
later as following:
Bht. 24,300,000
on December 19,
1989
Bht. 50,000,000
on March 1,
2001
The
latest registered capital
was increased to Bht. 50,000,000 divided
into 500,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
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Mr. Chaudhry Sabahat Ellahi Nationality: Pakistani Address : 53/314
Moo 1, Banklang,
Muang, Pathumthani |
281,400 |
56.28 |
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Mrs. Seemee Ilahi Nationality: Pakistani Address : 53/314
Moo 1, Banklang,
Muang, Pathumthani
|
154,300 |
30.86 |
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Mr. Somsak Someklang Nationality: Thai Address : 151
Moo 3, Pimay-Taladkae Rd.,
Krabuangnai, Muang, Nakornratchasima |
40,000 |
8.00 |
|
Mr. Chaudhry Amjud Idis Nationality: Pakistani Address :
Nakornratchasima |
13,450 |
2.69 |
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Mrs. Rawal Rungrueng Nationality: Thai Address : 1739
Dej-udom Rd., Naimuang,
Muang,
Nakornratchasima |
4,850 |
0.97 |
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Mrs. Wannapa Korngkaew Nationality: Thai Address : 239
Moo 10, Huatalay,
Muang,
Nakornratchasima |
3,750 |
0.75 |
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Mr. Ali Akmal Nationality: Pakistani Address : 179
Ratchasima-Chokechai Rd., Muang,
Nakornratchasima |
2,250 |
0.45 |
Total Shareholders : 7
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
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Thai |
3 |
48,600 |
9.72 |
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Foreign-Pakistani |
4 |
451,400 |
90.28 |
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Total |
7 |
500,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Chavalit Chantornthim No.
3215
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
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Cash and Cash Equivalents |
947,665.10 |
1,084,521.04 |
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Short-term Investment |
8,086,719.71 |
7,888,279.72 |
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Trade Accounts & Other Receivable |
24,933,658.80 |
37,707,407.30 |
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Inventories |
28,526,718.30 |
23,568,999.02 |
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Total Current Assets
|
62,494,761.91 |
70,249,207.08 |
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Investment in Associated Company |
8,691,600.00 |
8,691,600.00 |
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Lending to Person or
Related Company |
14,198,980.76 |
23,639,213.60 |
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Fixed Assets |
29,400,490.75 |
33,125,190.79 |
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Total Assets |
114,785,833.42 |
135,705,211.47 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
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Bank Overdraft & Short-term Loan from Financial Institution
|
15,625,033.05 |
13,775,412.97 |
|
Trade Accounts Payable |
43,033,576.50 |
40,502,141.44 |
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Current Portion of Long-term
Loans |
2,460,203.57 |
2,518,218.58 |
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Total Current Liabilities |
61,118,813.12 |
56,795,772.99 |
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Long-term Loans |
4,052,369.08 |
7,054,856.93 |
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Total Liabilities |
65,171,182.20 |
63,850,629.92 |
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Shareholders' Equity |
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Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 500,000 shares |
50,000,000.00 |
50,000,000.00 |
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Capital Paid |
50,000,000.00 |
50,000,000.00 |
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Retained Earning Appropriated for
Statutory Reserve |
375,000.00 |
375,000.00 |
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Unappropriated |
[760,348.78] |
21,479,581.55 |
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Total Shareholders' Equity |
49,614,651.22 |
71,854,581.55 |
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Total Liabilities & Shareholders' Equity |
114,785,833.42 |
135,705,211.47 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2011 |
2010 |
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Sales |
146,780,918.24 |
161,842,635.71 |
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Other Income |
568,855.70 |
955,350.90 |
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Total Revenues |
147,349,773.94 |
162,797,986.61 |
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Expenses |
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Cost of Goods
Sold |
145,670,782.35 |
144,816,235.39 |
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Selling Expenses |
9,059,421.31 |
13,356,008.83 |
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Administrative Expenses |
13,000,847.77 |
13,979,467.34 |
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Total Expenses |
167,731,051.43 |
172,151,711.56 |
|
Profit / [Loss] before
Financial Cost & Income Tax |
[20,381,277.49] |
[9,353,724.95] |
|
Financial Cost |
[1,858,652.84] |
[1,224,111.35] |
|
Profit / [Loss] before Income
Tax |
[22,239,930.33] |
[10,577,836.30] |
|
Income Tax |
- |
- |
|
Net Profit / [Loss] |
[22,239,930.33] |
[10,577,836.30] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
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LIQUIDITY RATIO |
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CURRENT RATIO |
TIMES |
1.02 |
1.24 |
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QUICK RATIO |
TIMES |
0.56 |
0.82 |
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ACTIVITY RATIO |
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FIXED ASSETS TURNOVER |
TIMES |
4.99 |
4.89 |
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TOTAL ASSETS TURNOVER |
TIMES |
1.28 |
1.19 |
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INVENTORY CONVERSION PERIOD |
DAYS |
71.48 |
59.40 |
|
INVENTORY TURNOVER |
TIMES |
5.11 |
6.14 |
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RECEIVABLES CONVERSION PERIOD |
DAYS |
62.00 |
85.04 |
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RECEIVABLES TURNOVER |
TIMES |
5.89 |
4.29 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
107.83 |
102.08 |
|
CASH CONVERSION CYCLE |
DAYS |
25.65 |
42.36 |
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PROFITABILITY
RATIO |
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COST OF GOODS SOLD |
% |
99.24 |
89.48 |
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SELLING & ADMINISTRATION |
% |
15.03 |
16.89 |
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INTEREST |
% |
1.27 |
0.76 |
|
GROSS PROFIT MARGIN |
% |
1.14 |
11.11 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(13.89) |
(5.78) |
|
NET PROFIT MARGIN |
% |
(15.15) |
(6.54) |
|
RETURN ON EQUITY |
% |
(44.83) |
(14.72) |
|
RETURN ON ASSET |
% |
(19.38) |
(7.79) |
|
EARNING PER SHARE |
BAHT |
(44.48) |
(21.16) |
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LEVERAGE RATIO |
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DEBT RATIO |
TIMES |
0.57 |
0.47 |
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DEBT TO EQUITY RATIO |
TIMES |
1.31 |
0.89 |
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TIME INTEREST EARNED |
TIMES |
(10.97) |
(7.64) |
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ANNUAL GROWTH |
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SALES GROWTH |
% |
(9.31) |
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OPERATING PROFIT |
% |
117.89 |
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NET PROFIT |
% |
(110.25) |
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FIXED ASSETS |
% |
(11.24) |
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TOTAL ASSETS |
% |
(15.42) |
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PROFITABILITY
RATIO
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Gross Profit Margin |
1.14 |
Deteriorated |
Industrial
Average |
8.04 |
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Net Profit Margin |
(15.15) |
Deteriorated |
Industrial
Average |
2.21 |
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Return on Assets |
(19.38) |
Deteriorated |
Industrial
Average |
2.63 |
|
Return on Equity |
(44.83) |
Deteriorated |
Industrial
Average |
6.19 |
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 1.14%. When compared with
the industry average, the ratio of the company was lower, 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 -15.15%.
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. When compared with the
industry average, it was lower, the company's figure is -19.38%.
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 -44.83%.
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 |
1.02 |
Satisfactory |
Industrial
Average |
1.18 |
|
Quick Ratio |
0.56 |
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Cash Conversion Cycle |
25.65 |
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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 1.02 times in 2011, decreased from 1.24 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 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 0.56 times in 2011,
decreased from 0.82 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 26 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.57 |
Impressive |
Industrial
Average |
0.57 |
|
Debt to Equity Ratio |
1.31 |
Risky |
Industrial
Average |
1.28 |
|
Times Interest Earned |
(10.97) |
Risky |
Industrial
Average |
2.97 |
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 -10.97 lower than 1, so the company is not generating
enough cash from EBIT to meet its
interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.57 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.99 |
Impressive |
Industrial
Average |
1.67 |
|
Total Assets Turnover |
1.28 |
Impressive |
Industrial
Average |
1.11 |
|
Inventory Conversion Period |
71.48 |
|
|
|
|
Inventory Turnover |
5.11 |
Satisfactory |
Industrial
Average |
6.34 |
|
Receivables Conversion Period |
62.00 |
|
|
|
|
Receivables Turnover |
5.89 |
Satisfactory |
Industrial
Average |
6.00 |
|
Payables Conversion Period |
107.83 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.97 |
|
|
1 |
Rs.83.67 |
|
Euro |
1 |
Rs.67.19 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.