MIRA
INFORM REPORT
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Report Date : |
2nd
November 2006 |
IDENTIFICATION
DETAILS
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Name : |
P.T. MUTU GADING TEKSTIL |
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Registered Office : |
Wisma 46 Kota BNI 12th Floor Suite 1208 Jalan Jend. Sudirman Kav. 1 Jakarta Pusat, 10220 Indonesia |
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Country : |
Indonesia |
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Financials (as on) : |
2005 |
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Date of Incorporation : |
4 September 1996 |
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Com. Reg. No.: |
C2-15203.HT.01.04.TH.99 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Integrated Textile Industry |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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Status : |
Poor |
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Payment Behaviour : |
Slow
and delayed |
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Litigation : |
Unknown
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Name of Company
P.T. MUTU GADING TEKSTIL
A d d r e s s
Head Office
Wisma 46 Kota BNI 12th Floor Suite 1208
Jalan Jend. Sudirman Kav. 1
Jakarta Pusat, 10220
Indonesia
Phones - (62-21) 5722110 (Hunting)
Fax. - (62-21) 5722107
Building Area - 32 strorey
Office Space - 350 sq. meters
Region - Commercial Building (Sudirman Central Business District)
Status - Rent
Factory
Jalan Raya Solo Purwodadi Km. 11
Gondangrejo, Karanganyar
Central Java
Indonesia
Phone - (62-271) 853508 (Hunting)
Fax. - (62-271) 853746
Land Area - 30,000 sq. meters
Building Area - 8,500 sq. meters
Region - Industrial Zone
Status - Owned
Date of Incorporation
4 September 1996
Legal Form
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No.
The Ministry of Justice and Human Rights
No. C2-15203.HT.01.04.TH.99
Dated 20 August 1999
Company Status
Private and Domestic Investment (PMDN) Company
Permit by the Government
Department
The Capital Investment Coordinating Board
- No. 662/I/PMDN/1996
Dated 1 October 1996
- No. 9/III/PMDN/1997
Dated 2 January 1997
- No. 56/II/PMDN/2004
Dated 1 October 2004
Related Company
The
TEXMACO Group Members
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital : Rp. 300,000,000,000.-
Issued Capital : Rp. 75,000,000,000.-
Paid up Capital : Rp. 75,000,000,000.-
Shareholders/Owners :
a. Mr. Marimutu Ganesan - Rp. 48,000,000,000.-
b. Mrs. Muthulachmi - Rp. 6,750,000,000.-
c. Mr. Anbalagan - Rp. 4,500,000,000.-
d. Mrs. Padmini - Rp. 4,500,000,000.-
e. Mrs. Ragini - Rp. 4,500,000,000.-
f. Mr. Mahendran - Rp. 4,500,000,000.-
g. Mr. Soewardi - Rp. 4,250,000,000.-
BUSINESS ACTIVITIES
Lines
of Business:
Integrated Textile Industry
Production
Capacity :
A. Initial Plant
a. Finished Fabrics - 18,000,000 meters p.a.
b. Polyester Yarns - 12,960,000 kilograms p.a.
c. Grey Fabrics - 9,000,000 meters p.a.
B. Expansion Plant (Planned)
a. Export of Coals
b. Import of Textile Chemicals (gum resin, conning oil, etc)
Total
Investment :
A. Initial Plant
a. Equity Capital - Rp. 75.0 billion
b. Loan Capital - Rp. 75.0 billion
c. Total Investment - Rp. 150.0 billion
B. Expansion Plant (Planned)
a. Equity Capital - Rp. 4.5 billion
b. Loan Capital - Rp. 69.3 billion
c. Total Investment - Rp. 73.8 billion
Started Operation :
1998
Brand Name :
None
Technical Assistance :
None
Number of Employee :
650 persons
Marketing Area :
Export - 70%
Domestic - 30%
Main Customer :
Buyers in the USA, France, Singapore, Japan
Market Situation :
Very Competitive
Main Competitors :
a. P.T. KONDOBO TEXTINDO
b. P.T. UNILON TEXTILE INDUSTRIES
c. P.T. VONEX INDONESIA
d. P.T. NATATEX PRIMA
Business
Trend :
Growing
BANKER, AUDITOR & LITIGATION
B a n k e r s :
a. P.T.
Bank NEGARA INDONESIA Tbk.
Wisma 46 Kota BNI
Jalan Jend. Sudirman Kav. 1
Jakarta Pusat, 10220
Indonesia
b. P.T.
Bank MANDIRI Tbk.
Jakarta Thamrin Branch Menara BDN
Jalan Kebon Sirih No. 83
Jakarta Pusat 10340
Indonesia
c. P.T.
Bank CENTURY Tbk.
Kompleks Mangga Dua Plaza Block H 1-3
Jalan Mangga Dua Raya
Jakarta 10730, Indonesa
Auditor
:
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Revenue (estimated) :
2003 – Rp. 215.0 billion
2004 – Rp. 225.0 billion
2005 – Rp. 230.0 billion
Net Profit (Loss) :
2003 – Rp. 8.6 billion
2004 – Rp. 9.0 billion
2005 – Rp. 10.0 billion
Payment Manner :
Frequently delay
Financial Comments :
Weak
KEY EXECUTIVES
Board of Management :
Director - Mr.
Marimutu Ganesan
Board of Commissioners :
President Commissioner - Mrs.
Muthulachmi
Commissioner -
Mr. Anbalagan
Signatories :
Director (Mr. Marimutu Ganesan) which must be
approved by Supervisory Board.
CAPABILITIES
Management Capability :
Bad
Business Morality :
Prudent
Credit Risk :
Very High
Credit Recommendation :
Not qualified for credit assessment
Proposed
Credit Limit :
Deposit
of Advance Payments
Maximum Credit Limit :
None
OVERALL PERFOMANCE
P.T. MUTU GADING TEKSTIL (P.T. MGT) was established in September 1996
with an authorized
capital of Rp. 100,000,000,000.-, issued capital of Rp. 25,000,000,000.- and
paid up capital of Rp. 12,500,000,000.-. The founding shareholders are Mr.
Marimutu Ganesan and his children Mrs. Muthulachmi, Mrs. Padmini, Mr.
Mahendran, Miss Ragini, Mr. Anbalagan, they are Indian-ethnic Indonesian
business family. In January 1999 the authorized capital of P.T. MGT was raised
to Rp. 300,000,000,000.-, issued and paid up capital to Rp. 75,000,000,000.-. The
deed of amendment was made by Mrs. Nurul Hidajati Handoko, SH., a public notary
in Jakarta under Company Registration Number C2-15203 HT.01.04.TH. 1999, dated
August 20, 1999. Mr.
Marimutu Ganesan is one of the founding shareholders of the TEXMACO Group, a
business group having a seriously financial difficulties with in five years.
P.T. MGT is a Domestic Capital Investment (PMDN) company licensed by
Capital Investment Coordinating Board (BKPM) to deal with textile industry. Its
plant is located at Jalan Raya Solo, Purwodadi, Km.11, Karanganyar
(Central Java), on a land of some 30
hectares having a capacity to produce finished fabrics of 18,000,000 meters,
polyester yarns of 12,960,000 kilograms and grey fabrics of 9,000,000 meters
per year respectively. The plant had been operating since the early 1998 with
an investment of Rp 150.0 billion. A staff of the company said to our inquiry
that some 70% of the products are exported to Europe, the USA, Japan, France,
Singapore and the other 30% for local consumption. The company also supplied
some of the products to P.T. UNGARAN SARI GARMENT, P.T. BUSANA PERKASA GARMENT,
P.T. CITRA SARI GARMENT. In October 2004, P.T. MGT got permit from the Capital
Investment Coordinating Board to increasing production capacity in export of
coal and import of textile chemicals likes gum resin, acetic acid, conning oil
and spin finish oil. But the expansion plant has yet been operating up to now.
The occurring of the economic crisis and sharp Rupiah depreciation
against the US$ Dollar, Japanese Yen, EUR and other hard currencies has
positive impact on P.T. MGT's operation because some 70% of its products is
exported. Besides, the prolonged economic crisis followed by fast rising local
bank interest rates has also had a negative impact on the company's finances
for having resulted in a swelling of the company’s debts out of control. 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, demand for garment in the international market has been
fluctuating in the last five years as evident from the figures of Indonesian
garment export. According to the Central Bureau of Statistics (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 Indonesia textile products export in 2000
amounted 1,365.1 tons (US$ 3,634.1 million), declined to 1,269.5 (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 2000 to 2005 are pictured on
the following table.
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Year |
Garment |
Textile Product |
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(Thousand Ton) |
(US$ Million) |
(Thousand Ton) |
(US$ Million) |
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2000 |
370.3 |
4,702.6 |
1,365.1 |
3,634.1 |
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2001 |
473.8 |
4,476.7 |
1,269.5 |
3,198.9 |
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2002 |
333.1 |
3.887.2 |
1,425.9 |
3,075.9 |
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2003 |
339.9 |
4,037.9 |
1,307.5 |
3,064.6 |
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2004 |
327.3 |
4,351.9 |
1,300.4 |
3,354.6 |
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2005* |
317.1 |
4,244.2 |
1,194.8 |
3,109.6 |
*) January –
October
Source : Central
Bureau of Statistic
Until this time P.T. MGT has not been registered with Indonesian Stock
Exchange, so that they shall not obliged to announce their financial statement.
We observed that total revenue of the company in 2003 amounted to Rp. 215.0
billion increased to Rp. 225.0 billion in 2004 and to Rp. 230.0 billion in
2005. The operation in 2005 yielded an estimated net profit at least Rp. 10.0
billion and the company has an estimated total net worth at Rp. 123.0 billion.
It is projected that total revenue of the company will be higher by at least 6%
in 2006. Local and foreign debts used for working capital have puffed-up due to
a very high bank interest rate.
The TEXMACO group has also involved in a large amount of debts and under
supervision of P.T. PERUSAHAAN PENGELOLA ASSET (previously IBRA). We have
doubtful to Mr. Marimutu Sinivasan to settle his financial problem for the
company's performance slowed down as the impact of economic crisis. P.T.
PERUSAHAAN PENGELOLA ASSET and the TEXMACO Group signed up Debt Restructuring
Term Sheet on 29 September 2000. The total debt principal of TEXMACO Group as
of 30 June 2000 to be restructured amounts to Rp. 19 trillion.
The debt restructuring of TEXMACO is treated as a group,
which includes the following :
|
No. |
Company |
Total
Principal (in trillion Rp) |
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1. |
P.T.
MULTIKARSA INVESTAMA |
6.167 |
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2. |
P.T. TEXMACO
PERKASA ENGINEERING |
1.051 |
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3. |
TPE
INTERNATIONAL FINANCE |
0.017 |
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4. |
P.T. PERKASA
HEAVYNDO ENGINEERING |
1.023 |
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5. |
P.T. PERKASA
INDOBAJA |
1.888 |
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6. |
P.T. WAHANA
PERKASA AUTO JAYA |
0.524 |
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7. |
P.T. WAHANA
JAYA PERKASA |
0.013 |
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8. |
P.T. PERKASA
INDOSTEEL |
3.289 |
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9. |
P.T. POLYSINDO
EKA PERKASA Tbk |
2.529 |
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10. |
P.T. TEXMACO
JAYA Tbk |
0.289 |
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11. |
P.T. BIMA
PERANAN BUSANA |
0.170 |
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12. |
P.T. SARITEX
JAYA SWASTI |
0.027 |
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13. |
P.T. SUMATEX
SUBUR |
0.062 |
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14. |
P.T. TEXMACO
TAMAN SYSTHETICS |
1.365 |
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15. |
P.T. WISMA
KARYA PRASETYA |
0.087 |
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16. |
P.T. WASTRA
INDAH |
0.528 |
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TOTAL |
19.029 |
Source : P.T. PPA
or IBRA (Indonesian Banking Restructuring Agency)
The management is headed by Mr. Marimutu Ganesan (65), a businessman
with a lot of experience in textile industry, man-made fibre, garment and woven
yarn industry. He is one of the founding shareholders of the TEXMACO Group, a
company group facing serious financial difficulties. The management is handled
by professional managers having wide relation with private businessmen of home
and overseas as well as with the government sectors.
Besides, we heard that one of the family member namely the late Mr.
Marimutu Manimaren (58) committed by
jumping down from the 56th floor of Aston Hotel, Jakarta. Presumably
he did it on account of the TEXMACO Group’ large debts to a number of foreign
and national banks. On account of the above negative sectors and the country’s
unstable economic condition, we recommend to treat prudently in business
transactions and in extending a new loan to the company.
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 |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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