MIRA
INFORM REPORT
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Report Date : |
13.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
P.T. GOKAK
INDONESIA |
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Registered Office : |
Kodel House 8th Floor, Jalan H.R. Rasuna Said Kav. B-4,
Jakarta 12920 |
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Country : |
Indonesia |
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Date of Incorporation : |
06 August 1979 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Spinning Mills |
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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Maximum Credit Limit : |
US$ 4,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name of Company
P.T. GOKAK
INDONESIA
Address
Head Office
Kodel House 8th
Floor
Jalan H.R. Rasuna
Said Kav. B-4
Jakarta 12920
Indonesia
Phone - (62-21) 522
1458, 552 1488, 522 1459
Fax. - (62-21) 522 1515
Building Area - 18th
Floor
Office Space - 600 sq. meters
Region - Commercial
Building
Status - Rent
Factory
Kampung Muhara,
Citeurup
Cibinong, Bogor
West Java
Indonesia
Phone - (62-21) 875
2687, 875 2672
Fax. - (62-21) 875 2673
Land Area - 10,000 sq.
meters
Factory Space - 6,600 sq. meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation
06 August 1979
Legal Form
P.T. (Perseroan
Terbatas) or Limited Liability Company
Company Reg. No.
The Ministry of Justice and Human Rights
No.
W7-HT.01.10-3605
Dated 17 November
2006
Company Status
Foreign Investment (PMA) Company
Permit by the
Government Department
The President of the Republic of Indonesia
No. B-27/Pres/9/1978
Dated 29 June 1978
The
Capital Investment Coordinating Board
- No. 94/VI/PMA/1982
Dated 8 October 1982
- No. 61/III/PMA/1984
Dated 6 December 1984
- No. 28/II/PMA/1987
Dated 25 May 1987
- No. 143/II/PMA/2003
Dated 17 June 2003
The
Department of Finance
NPWP No. 1.002.076.6-052
Related Company
P.T. MULTIBIS PRIMA AGUNG (Investment Holding)
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital
: US$
6,250,000.-
Issued Capital : US$
6,250,000.-
Paid up Capital : US$
6,250,000.-
Shareholders/Owners :
a. FORBES GOKAK
Ltd., of India - US$
1,375,000.-
b. EURO ASEAN
MANAGERS Ltd. - US$
1,250,000.-
c. FORBES CAMPBELL
HOLDINGS Ltd. - US$ 688,000.-
d. WARRIOR
INVESTMENT Co. Ltd., of India -
US$ 687,000.-
e. THAKRAL BROTHERS
Inc., of India - US$
1,000,000.-
f. P.T. MULTIBIS
PRIMA AGUNG of Indonesia - US$
1,000,000.-
g. Mr. Humphrey
Rithan Djemat, SH, LLM
of Indonesia - US$ 250,000.-
BUSINESS ACTIVITIES
Lines of Business:
Spinning Mills
Production Capacity
a. Polyester/Cotton Yarns -
16,583 bales p.a.
c. Cotton Yarns -
3,600 tons p.a.
Total Investment
a. Equity Capital - US$ 6.2 million
b. Loan Capital - US$ 26.4
million
c. Total
Investment - US$ 32.6 million
Started Operation
August 1980
Brand Name
Gokak
Technical Assistance
Gokak of India
Number of Employee
900 persons
Marketing Area
Domestic - 40%
Export - 60%
Main Customer
Industrial textile
such as P.T. KAHATEX, P.T. MALAKASARI etc.,
Market Situation
Very Competitive
Main Competitors
a. P.T. GOLDEN
TATEX INDONESIA
b. P.T. GRAND
PINTALAN TEXTILE INDUSTRIES
c. P.T. GLORINDO
FILATEX
d. P.T. GISTEX
CHEWON SYNTHETICS
e. Etc.,
Business Trend
Growing
BANKER, AUDITOR &
LITIGATION
Bankers :
a. P.T. Bank DANAMON INDONESIA Tbk
Jalan Prof. Dr. Satrio Kav. E-IV /6
Jakarta Selatan, 12930
Indonesia
b. DEUTSCHE Bank AG
Wisma Deutsche Bank
Jalan Imam Bonjol 85
Jakarta Pusat
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2004 – Rp. 320.0
billion
2005 – Rp. 345.0
billion
2006 – Rp. 360.0
billion
Net Profit (Loss)
:
2004 – Rp. 22.4 billion
2005 – Rp. 24.0 billion
2006 – Rp. 25.2
billion
Payment Manner
Average
Financial Comments
Satisfactory
KEY EXECUTIVES
Board of Management :
President Director - Mr. Brijlal Ghevarchand Jain
Directors - Mr. Mangesh Kanago
Board of Commissioners :
President Commissioner - Mr. Kamlesh Chander Mehra
Commissioner -
Mr. Chandrakant Girdharial Shah
Signatories :
President Director (Mr. Brijlal Ghevarchand
Jain) or the Director (Mr. Mangesh Kanago) 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$ 4,000,000.- on the 90 days of payments
OVERALL PERFOMANCE
P.T. GOKAK INDONESIA (P.T. GI) was established in August 1979 in Bogor, West Java with an authorized capital of US$ 2,300,000.- issued capital of US$ 460,000.- entirely paid up. The founding shareholders of the company are FORBES GOKAK Ltd., of India, EURO ASEAN MANAGERS Ltd., FORBES CAMPBELL HOLDINGS Ltd., WARRIOR INVESTMENT Co. Ltd., of India, THAKRAL BROTHERS Inc., of India, P.T. MULTIBIS PRIMA AGUNG of Indonesia and Mr. Humphrey Rithan Djemat, SH, LLM., of Indonesia. The notary deed has been changed frequently. The latest in February 2001, the authorized capital was raised to US$ 6,250,000.- entirely issued and paid up. The deed of amendment was made by Mr. Misahardi Wilamarta, SH., a public notary in Jakarta under Company Registration Number W7-HT.01.10-3605, dated November 17, 2006.
P.T. GI is a Foreign Investment (PMA) company licensed by Capital Investment Coordinating Board (BKPM) to deal with spinning mills. Its plant is located at Kampung Muhara, Citeurup, Cibinong, Bogor, West Java on a land of some 1.0 hectares. The plant had been operating since 1980 by produce polyester/cotton yarns of 16,583 bales and cotton yarns of 3,600 tons respectively per annum. The company is the leading spinner with 33,000 spindle capacity and 600 rotors. Products include polyester viscose and polyester cotton blended yarn and 100% cotton combed yarn both single and founded for knitting and weaving end use. The plant had absorbed an investment of US$ 32.6 million come from owned capital of US$ 6.2 million and the rest from loans. Mr. Wahid, general affairs manager of the company said to our inquiry that some 60% of the products are exported to Europe Union, Middle East, Vietnam, Philippine, Bangladesh, Thailand and other Asian countries and the other 40% for local consumption with using GOKAK brand. The company also supplied some of the products to P.T. KAHATEX, P.T. MALAKATEX and other textile industries operating in Bandung (West Java), Solo (Central Java), Semarang and Tangerang (Banten Province).
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. GI's operation because some 60% 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 to 369.500 tons (US$ 4,967.0 million) in 2005 and to 89,900 tons (US$ 1,296.2 million) in 2006 (January-March). 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 to 1,427.3 tons (US$ 3,704.0 million) in 2005 and to 362.3 (US$ 940.2 million) in 2006 (January-March). The export volume and value of the national TPT products in 2000 to 2005 are pictured on the following table.
|
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 |
369.5 |
4,967.0 |
1,427.3 |
3,704.0 |
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2006* |
89.9 |
1,296.2 |
362.3 |
940.2 |
*) January –
March
Source : Central
Bureau of Statistic
Until this time P.T. GI has not been registered with Indonesian Stock Exchange, so that they shall not oblige to announce their financial statement. We observed that total revenue of the company in 2004 amounted to Rp. 320.0 billion increased to Rp. 345.0 billion in 2005 and to Rp. 360.0 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 25.2 billion and the company has an estimated total net worth at least Rp. 127.0 billion. It is projected that total revenue of the company will be higher by at least 6% in 2007. We observe that P.T. GI is supported by financially fairly strong behind it. So far, we have never heard of the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.
The management of P.T. GI is led by Mr. Brijlal Ghevarchand Jain (65) with 25 years of experience in spinning mills and trade. The management of the company is handled by professional managers having wide relation with private businessmen within and outside the country and with the government sectors as well. We observed that management’s reputation in said business is fairly good. So far, we have never heard that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.
PT. GOKAK INDONESIA is fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a 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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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%)