MIRA
INFORM REPORT
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Report Date : |
9th
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
P.T. INDO BHARAT RAYON |
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Registered Office : |
Menara Batavia, 16th Floor Jalan K.H. Mas Mansyur Kav. 126 Jakarta 10220 Indonesia |
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Country : |
Indonesia |
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Date of Incorporation : |
5 September 1980 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged
in the production of Viscose Rayon Staple Fibre and
Acrylic Fibre |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
name of Company
P.T. INDO BHARAT RAYON
A d d r e s s
Head Office
Menara Batavia, 16th Floor
Jalan K.H. Mas Mansyur Kav. 126
Jakarta 10220
Indonesia
Phone - (62-21) 5722452 (Hunting)
Fax. - (62-21) 5722417
Building Area - Office
Office Space - 250 sq. meters
Region - Commercial
Status - Rent
Factory
Desa Ciroyom, Cilangkap
Purwakarta, West Java
Indonesia
Phone - (62-264) 202041-44
Fax. - (62-264) 201349
Building Area - Factory
Office Space - 30 hectares
Region - Commercial
Status - Owned
Date of Incorporation
5 September 1980
Legal Form
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No.
The Ministry of Law and Human Rights
No. C-735 HT.01.04.TH.2000
Dated 24 January 2000
Company Status
Foreign Investment (PMA) Company
Permit by the Government
Department
The President of the Republic of Indonesia
No. B-22/Pres/6/1980
Dated 3 June 1980
The Capital Investment Coordinating Board
- No. 16/I/PMA/1983
Dated 24 June 1983
- No. 39/II/PMA/1983
Dated 8 December 1983
- No. 415/III/PMA/1991
Dated 1 July 1991
- No. 207/III/PMA/1992
Dated 16 March 1992
- No. 95/II/PMA/1993
Dated 21 September 1993
- No. 227/II/PMA/2002
Dated 22 October 2002
- No. 129/II/PMA/2004
Dated 11 August 2004
- No. 80/II/PM/2005
Dated 31 March 2005
Related Company
The BIRLA INDONESIA Group Members
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital : US$ 13,000,000.-
Issued Capital : US$ 10,000,000.-
Paid up Capital : US$ 10,000,000.-
Shareholders/Owners :
a. LONDON EUROPEAN ASSOCIATES Ltd., of Mauritius - US$ 4,500,000.-
b. HART GLOBAL Ltd., of Mauritius - US$ 4,220,000.-
c. GRASIM INDUSTRIES Ltd., of India - US$ 500,000.-
d. CHARMNOX Ltd., of Hong Kong - US$ 380,000.-
e. GRAND ISLAND Ltd., of Mauritius - US$ 300,000.-
f. MAHASMUTH INVESTMENT Pte. Ltd., of Singapore - US$ 100,000.-
BUSINESS ACTIVITIES
Lines of Business:
Viscose Rayon Staple Fibre and Acrylic Fibre Industry
Production Capacity :
a. Viscose Rayon Staple Fibres - 109,000 tons p.a.
b. Anhydrous Sodium Sulphates - 73,720 tons p.a.
c. Carbon Bi-Sulphates - 25,400 tons p.a.
d. Sulphuric Acids - 87,050 tons p.a.
e. Acrylic Fibres - 12,000 tons p.a.
f. Electric Power - 22 MW
Total Investment :
a. Equity Capital - US$ 13.0 million
b. Reinvested Profit - US$ 37.0 million
c. Loan Capital - US$ 202.3 million
d. Total Investment - US$ 252.3 million
Started Operation :
1982
Brand Name :
None
Technical Assistance :
None
Number of Employee :
1,044 persons
Marketing Area :
Export - 60%
Domestic - 40%
Main Customer :
Buyers in India, Srilanka, Bangladesh, P.T. INDO LIBERTY TEXTILE, P.T. SUNRISE BUMI
TEXTILE, P.T. ELEGAN TEXTILE INDUSTRI
Market Situation :
Competitive
Main Competitors :
a. P.T. SOUTH PACIFIC VISCOSE
b. P.T. TOBA PULP LESTARI Tbk (ex P.T. INTI INDORAYON UTAMA Tbk)
Business Trend :
Growing
BANKER, AUDITOR & LITIGATION
B a n k e r s :
a. P.T. Bank MANDIRI Tbk
Jalan MH. Thamrin No. 5
Jakarta Pusat, Indonesia
b. CITIBANK N.A. Jakarta Branch
Landmark Center
Jalan Jend. Sudirman No. 1
Jakarta 12190, Indonesia
c. Hongkong and Shanghai Banking Corp. Ltd.
World Trade Center
Jalan Jend. Sudirman Kav. 29-31
Jakarta Selatan, Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2003 – Rp. 1,180.0 billion
2004 – Rp. 1,230.0 billion
2005 – Rp. 1,300.0 billion
Net Profit (Loss) :
2003 – Rp. 94.5 billion
2004 – Rp. 108.0 billion
2005 – Rp. 117.0 billion
Payment Manner :
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board
of Management :
President
Director - Dr. Prakash Maheswari
Directors - a. Mr. Ashok Kumar
Tyagi
b. Mr. Bhag Chand Jain
c. Mr. Kayur Yogesh Raiji
d. Mr. Ram Kishan Sonthalia
e. Mr. Janardan Das Maru
f. Mr. Halim Setiono
Board
of Commissioners :
President
Commissioner - Mr. Shailendra Kumar Jain
Commissioners - a. Mr. Kumar Mangalam Birla
b. Mr. Kamol Phichit Singh
c. Mr. Rajashree Birla
d. Mr. Neerja Birla
e. Mr. Prakash Kumar Mehta
Signatories
:
President
Director (Dr. Prakash Maheswari) or one of the Directors (Mr. Ashok Kumar
Tyagi, Mr. Bhag Chan Jain, Mr. Kayur Yogesh Raiji, Mr. Ram Kishan Sonthalia,
Mr. Janardan Das Maru or Mr. Halim Setiono) which must be approved by
Supervisory Board.
CAPABILITIES
Management
Capability :
Good
Business
Morality :
Good
Credit
Risk :
Average
Credit
Recommendation :
Credit
should be proceeded with monitor
Proposed Credit Limit :
Small
amount – periodical review
Maximum
Credit Limit :
US$ 3,500,000.- on the 90 days of payments
OVERALL PERFOMANCE
P.T. INDO BHARAT RAYON (P.T. IBR) was incorporated in September 1980 with an authorized capital of US$ 8,422,000.- entirely was issued and paid up. Initially the founding shareholders of the company were Birla AG of Switzerland, International Industrial Management and Investment Corporation of Panama, Mirapa Ltd., of Liechtenstein, Thakral Holdings (HK) Ltd., of Hong Kong, The Gwalior Rayon Silk Mfg. Co.Ltd., of India, Hong Kong Indonesia Group Inc., of Hong Kong, Charmnox Ltd., Hong Kong, A.T.E. Maskapai Private Ltd., of Singapore (all companies are the members of the BIRLA Group based in India) and P.T. BEKLANI. In 1983, its authorized capital was raised to US$ 32,000,000.- wholly was issued and paid up. The deed of amendment was made by Mr. Amrul Partomuan Pohan, SH. LLM, a public notary in Jakarta under Company Registration Number C-735 HT.01.04.TH. 2000, dated January 24, 2000.
In May
2001 the issued and paid-up capital was decreased to US$ 13,000,000.- issued
capital of US$ 10,000,000.- entirely paid up and concurrently entered new
shareholders. The latest shareholders are LONDON EUROPEAN ASSOCIATES Ltd., HART
GLOBAL Ltd., GRAND ISLAND Ltd., three are of British Virgin Island, GRASIM
INDUSTRIES Ltd., of India, CHARMNOX Ltd., of Hong Kong and MAHASMUTH INVESTMENT
Pte. Ltd., of Singapore. But the latest revision of notary deed under still
processing at Department of Justice and Human Right for legalization. The
venture is a member of the BIRLA INDONESIA Group, a large business group based
in India and in Indonesia the Group set up several companies like P.T. SUNRISE
BUMI TEXTILE, P.T. ELEGAN TEXTILE INDUSTRY both engaged in spinning mils and
P.T. INDO LIBERTY TEXTILE in textile yarns manufacturing.
P.T. IBR
is a Foreign Capital Investment (PMA) company, engaged in viscose rayon staple
fibre, acrylic fibre industry and side-product of chemicals like anhydrous
sodium suphates, carbon
bi-sulphates and sulphuric acids. Its plant is located at Desa Ciroyom,
Cilangkap, Purwakarta, West Java, on a land of some 30.0 hectares. Its
operation has kept on expanding and its production capacity has been increasing
for a couple of times. The plant produces some 109,000 tons of viscose rayon
staple fibers, 73,720 tons of anhydrous sodium sulphates, 25,400 tons of carbon
bi-sulphates, 87,050 tons of sulphuric acids and 12,000 tons of acrylic fibers
respectively per years. Besides, P.T. IBR also engaged and manages a steam
power plant with a capacity of 22 MW. The plant has absorbed an investment of
US$ 252.3 million, come from owned capital of US$ 13.0 million, reinvested
profit of US$ 37.0 million and the rest from loans. The company's products are
40% sold locally to P.T. INDO LIBERTY TEXTILE, P.T. SUNRISE TEXTILE, P.T.
ELEGAN TEXTILE INDUSTRI and the rest 60% exported to India, Srilanka,
Bangladesh and other countries.
The operation of P.T. IBR has been growing in the last five years. The occurring of the economic crisis and sharp Rupiah depreciation against the US$, Japanese Yen, Poundsterling, EUR and other hard currencies has positive impact on P.T. IBR’s operation for some 60% of its products are exported. Meanwhile, the local TPT (Textile and Textile Products) industries and other factors causing the declining competitive ability of the national TPT products are the increasing production costs, high interest rates, expensive customs office costs, illegal retributions, textile and garment machinery restructuring costs and the rising prices of production components (oil fuel prices and electric base tariffs).
Generally,
the demand for garment in international market has been fluctuating in the last
five years as evident from figures of Indonesian garment export. According to
the Central Bureau of Statistic (BPS) the Indonesian garments export in 2000
amounted to 370,300 tons (US$ 4,702.6 million), to 473,800 tons (US$ 4,476.7
million) in 2001, to 333,100 tons (US$ 3,887.2 million) in 2002 to 339,000 tons
(US$ 4,037.9 million) in 2003 to 327,300 tons (US$ 4,351.9 million) in 2004 and
to 317,100 tons (US$ 4,244.2 million) in 2005 (January-October). The Indonesian
textile products export in 2000 amounted 1,365.1 tons (US$ 3,634.1 million),
declined to 1,269.5 tons (US$ 3,198.9 million) in 2001, to 1,425.9 tons (US$
3,075.9 million) in 2002 to 1,307.5 tons (US$ 3,064.6 million) in 2003 to
1,300.4 tons (US$ 3,354.6 million) in 2004 and to 1,194.8 tons (US$ 3,109.6
million) in 2005 (January-October). The export volume and value of the national
TPT products in 2002 to 2005 are pictured on the following table.
|
Year |
Garment |
Textile Products |
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(Thousand Ton) |
(US$ Million) |
(Thousand Ton) |
(US$ Million) |
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2000 2001 2002 2003 2004 2005* |
370.3 473.8 333.1 339.9 327.3 317.1 |
4,702.6 4,476.7 3,887.2 4,037.9 4,351.9 4,244.2 |
1,365.1 1,269.5 1,425.9 1,307.5 1,300.4 1,194.8 |
3,634.1 3,198.9 3,075.9 3,064.6 3,354.6 3,109.6 |
*) January – October
Source : Central Bureau of Statistic
The step Rupiah depreciation has had a positive effect on P.T. IBR’s finances, because 60% of the products are exported. But since September 2002 the volume of the company’s export has fallen sharply as a result of the 11 September 2001, WTC tragedy in New York, USA.
Until
this time P.T. IBR has not been registered with Indonesian Stock Exchange, so
that they shall not obliged to announce their financial statement. We observed
that total sales turnover of the company in 2003 is Rp. 1,180.0 billion
increased to Rp. 1,230.0 billion in 2004 and to Rp. 1,300.0 billion in 2005.
The operation in 2005 yielded an estimated net profit at least Rp. 117.0
billion and the company has an estimated total networth at Rp. 213.0 billion.
It is projected that P.T. IBR’s total sales turnover will continue on rising by
at least 8% in 2006. We observe that company is supported by financially strong
behind it. So far, we have never heard of the company having been black listed
by the Central Bank (Bank Indonesia). Besides that, the company usually pays
its debts punctually to suppliers.
The
management is led By Dr. Prakash Maheswari (52), a professional manager with 21
years experience in viscose rayon staple fiber and acrylic fiber manufacturing
and distribution. The management is well experienced and handled by
professional managers in the above business. They have wide relation with home
and overseas private businessmen as well as with the government sectors. So
far, we have never heard of the management of the company being filed to the
district court for detrimental cases. PT. INDO BHARAT RAYON is feasible for
business transaction. But owing to the economic condition n the country is in
crisis, we recommend to have an adequate collateral from the shareholders in
dealing with any new loans.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |