MIRA
INFORM REPORT
|
Report Date : |
21.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
P. T. ISPAT INDO |
|
|
|
|
Registered Office : |
Desa Kedung Turim, Taman, Sidoarjo, Surabaya 60010, East
Java |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Date of Incorporation : |
1978 |
|
|
|
|
Com. Reg. No.: |
C-16968.HT.01.04.TH.99 |
|
|
|
|
Legal Form : |
Limited Liability Company or Perseroan Terbatas |
|
|
|
|
Line of Business : |
Steel Making Industry |
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 Limit : |
US$ 30.8 million |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
Name of Company
P.T. ISPAT INDO
A d d r e s s
Head Office &
Factory
Desa Kedung Turi
Taman, Sidoarjo, Surabaya 60010
East Java, Indonesia
Phones - (031) 7887000 (hunting), 7882915 (hunting)
Fax. -
(031) 7882917, 7881924, 7887500
P.O. Box - 1083 SURABAYA
E-mail - ispatindo@indo.net.id
Land Area - 175,000 sq.
meters
Building Space - 86,000 sq. meters
Region - Industrial
Zone
Status - Owned
Branches
a. Permata Hijau, Blok C/25
Grogol Utara
Kebayoran Lama
Jakarta 12210
Phones - (021) 5494731, 5493543
Fax - (021) 5325176
b. ISPAT Group
Park Plaza
71 Park Street
Calcutta 700016
Phones - (33) 293914/4314/4395
Fax. - (33) 297396
c. Berkeley Square House, 7th Floor
Berkeley Square, London W1X
5PN
United Kingdom
Phone - (44) 171 6297988
Fax. - (44) 171 6297993
Representative
101 Cecil Street, 18-08 Tong Eng Building
Singapore 0106
Phones - (65) 2211403, 2257244
Fax. -
(65) 2247216
Date of Incorporation
a. 17 November 1975 as P.T. ANDHARA STEEL
INDONESIA
b. 1978 as P.T. ISPAT INDO
Legal Form
P.T. (Perseroan Terbatas)
or Limited Liability Company
Company Reg.No.
The Ministry of
Justice and Human Rights
No.
C-16968.HT.01.04.TH.99
Dated 28 September
1999
Company Status
Foreign Investment (PMA) Company
Permit by the
Government Department
The Capital
Investment Coordinating Board
a. No.
B-102/Pres/11/1974
Dated 4 November 1974
b. No. 24/II/PMA/1983
Dated 23 August 1983
c. No. 33/II/PMA/1988
Dated 1 August 1988
d. No. 59/II A/PMA/1990
Dated 15 April 1990
e. No. 35/II/PMA/1995
Dated 14 February 1995
The Department of Industry and Trade
TDP. No. 131712700104
Dated 12 December 2000
The Department of Finance
NPWP. No. 1.000.231.9-603
Related Companies
A Member of the MITAL or ISPAT Group
(see attachment)
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital
: US$. 52,350,000.-
Issued Capital : US$. 52,350,000.-
Paid up Capital : US$. 52,350,000.-
Shareholders/Owners :
a. ISPAT PROJECTS Ltd., India -
US$ 1,887,000.-
b. AMALGAMATED TRADING Ltd., Isle of Man -
US$ 49,604,900.-
c. MUDRA VINIYOG Ltd., India - US$ 858,000.-
d. Mr. Bintarto Triatmodjo of Indonesia - US$. 100.-
BUSINESS ACTIVITIES
Lines of Business:
Steel Making Industry
Production
Capacity :
a. Steel Billets - 700,000 tons p.a.
b. Steel Round Bars Flats, Shape - 200,000 tons p.a.
c. Steel Wire Rods - 650,000 tons p.a.
d. Hot Strips/Sheets - 200,000 tons p.a.
e. Wires/Wire Products - 50,000 tons p.a.
f. Oxygen’s - 2,016,000 m3 p.a.
Total Investment :
a. Equity Capital - US$ 52.4 million
b. Reinvested Profit -
US$ 12.5 million
c. Loan Capital - US$ 181.6 million
d. Total Investment - US$ 246.5 million
Started Operation
1978
Brand Name
ISPAT INDO
Technical
Assistance
None
Number of Employee
1,820 persons
Marketing Area
Domestic - 70%
Export - 30%
Main Customer
a. General Contracting Companies such as P.T. WIJAYA KARYA, P.T. ADHI
KARYA, P.T.
PEMBANGUNAN PERUMAHAN, P.T. WASKITA KARYA, etc.
b. Export to
Singapore, Bangladesh, PNG, Hong Kong,
India, etc.
Market Situation
Very Competitive
Main Competitors
a. P.T. JAKARTA
CAKRATUNGGAL STEEL
b. P.T. JAYA PARI
STEEL
c. P.T. GUNAWAN
DIANJAYA STEL
d. P.T. RADJIN
STEEL
e. Etc.,
Business Trend
Growing
BANKER, AUDITOR &
LITIGATION
B a n k e r
s :
a. P.T. Bank
MANDIRI Tbk.
Jalan Kembang Jepun No. 168-170
Surabaya, East Java
b. P.T. Bank DANAMON Tbk.
Jalan Kembang Jepun No. 132
Surabaya, East Java
c. The Hongkong and Shanghai Banking Corp.Ltd.
Jalan Jenderal Basuki Rachmat 106-128
Surabaya, East Java
Auditor
Internal Auditor
Litigation
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2004 – Rp. 1,880.0
billion
2005 – Rp. 1,970.0
billion
2006 – Rp. 2,180.0
billion
2007 – Rp. 2,290.0
billion
Net Profit
(estimated) :
2004 – Rp. 97.0 billion
2005 – Rp. 105.0 billion
2006 – Rp. 120.0 billion
2007 – Rp. 145.0 billion
Payment Manner
Average
Financial Comments
Satisfactory
KEY EXECUTIVES
Board of Management :
President Director - Mrs. Usha Mittal
Managing Director - Mr. Baldeo Prasad Banka
Director s -
a. Mrs. Megha Mittal
b. Mr. Amit Bhatia
c. Mr. Satish Taparia
d. Mr. Bintarto Triatmodjo, SH.
Board of Commissioners :
President Commissioner - Mr. Mohan Lal Mittal
Commissioners - a.
Mrs. Vanisha Mittal
b. Mrs. Hj. Kanaty Erman
Signatories :
President Director (Mrs. Usha Mittal)
or Managing Director (Mr. Baldeo Prasad Banka) or one of the Directors (Mrs. Megha Mittal, Mr. Amit Bhatia, Mr.
Satish Taparia or Mr. Bintarto Triatmodjo, SH) which must be approved by the
Board of Commissioners.
CAPABILITIES
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Below Average
Credit Recommendation :
Credit should be proceeded normally
Proposed Credit Limit :
Moderate amount
Maximum Credit Limit :
US$ 30.8 million on the 90 days of payments
OVERALL PERFOMANCE
Originally named P.T. ANDHARA STEEL INDONESIA, the company was
established in November 1975 in
Surabaya (East Java) with an authorized capital of US$ 2,750,000 of which US$
550,000 was issued and paid up. The company was founded by ASC ENGINEERING
& CONSULTANTS LTD., AUTUMN INVESTMENT LTD. (both of Hong Kong), TOR ISTEG
STEEL CORP. of Luxembourg, P.T. TEKNIK UMUM (a national private company), the
late Mr. Haji Eddy Kowara, Mr. Haji Erma Erman (both indigenous businessmen)
and Mr. Budianto Hartono (an Indonesian businessman of Chinese extraction) as
the original shareholders. In 1978 the company's name was changed to P.T. ISPAT
INDO. In November 1989 the company's authorized capital was increased to US$
52,350,000 entirely issued and paid up. Lastly of July 1998 the shareholders of
the company are consisting of The ISPAT PROJECTS Ltd., India, AMALGAMATED
TRADING Ltd., of the Isle of Man, MUDRA
VINIYOG, Ltd., India (formerly named MITCO FABRICATION CONSULTANTS PRIVATE
Ltd.) and Mr. Bintarto Triatmodjo, SH., of Indonesia. The deed of amendment was made by Mr. Benny Kristianto, SH., a
public notary in Jakarta under Company Registration Number C-16968 HT.01.04.TH.99,
dated September 28, 1999.
P.T. ISPAT INDO is a member of the MITTAL Group or the ISPAT Group, a large sized company group of
which the operation based in London, the USA being led by Mr. Mohan Lal Mittal,
an International businessman of Indian extraction. The MITTAL Group is dealing with integrated iron steel processing
industry of which the operational networks covering India, Hong Kong, Mexico,
Thailand, the UK, Trinidad, Indonesia and several other companies.
P.T. ISPAT INDO operates in the steel making industry under Foreign
Capital Investment (PMA) facilities with its plant located in Desa Kedung Turi,
Taman, Sidoarjo (East Java) where it stands on a some 17.5 hectare land area.
The plant, which went into operation in 1978, has been expanded several times. In September 1997 P.T. ISPAT INDO planned
to merge with its sister company P.T. ISPAT STEEL (the then P.T. ISPAT SPONGE),
a foreign capital investment (PMA) planning to engage in steel building
materials manufacturing. P.T. ISPAT STEEL previously planned to manage a plant
in Desa Sukamulyo, Manyar district, Gresik, East Java, but such merger has no
indication to be realized imminent, and P.T. ISPAT STEEL has yet been operating
to date. The company operation had kept on running until early 1997 with production
reached 80% to 85% of installed production capacity. But since end 1997 the
operation had been dropping and within the last one year the production was
only 35% of its installed production capacity. Since 1998 the company operation
started to rise again and its utility reached 50% to 55% in the last one
year.
On 28 September 2004, the plant of P.T. ISPAT INDO located in Kedung
Turi Village, Taman, Sidoarjo, East Java exploded causing an employee died and
another one seriously wounded on his face on account of being smashed by a
broken gas pipe filter. The explosion being heard within the radius of 300
meters was estimated to come from the control pipe of gas incineration line in
Valop Control Gas Unit. Although the accident caused an employee died and
injured another one, the activities of the employees are normally running. This
was the second explosion experienced by P.T. ISPAT INDO during 2004, the first
one was occurred on 3 March 2004 causing 14 employees wounded and some 22
public houses damaged.
Since early 2005, the operation of P.T. ISPAT INDO has been running
normally and smoothly. In its inItial
operation in 1976, P.T. ISPAT INDO’s
annual production capacity reached 60,000 tons of steel billets. However the annual production of the company
at present reaches 700,000 tons of steel billets with types of low and high
carbon grades of billets, wire rods and bars.
Some 70% of P.T. ISPAT INDO’s products are marketed locally and 30% of
which are exported to Asian Pacific’s markets such as Singapore, Hongkong,
India, Bangladesh, Papua New Guinea and others.
Besides, P.T. ISPAT INDO is also dealing with investment holding by
controlling 100% shares of P.T. ISPAT WIRE PRODUCTS dealing with nail making,
wire drawing, straight bars, etc. Its
plant is located in Kedungturi Village, Taman Sidoarjo, East Java with annual
production capacity of 36,000 tons of wire drawing and nail making, 75,000 tons
of straight bars. Some 20% of the
company’s products is exported to the USA, South Africa, Australia, New
Zealand, Papua New Guinea, Thailand and others.
The economic crisis in the country in 1997 has brought bad impact to
P.T. ISPAT INDO but since 2000 the local demand for steel products and steel
building materials has started increasing in line with the amelioration of the
economic condition in the country. We
believed that demand for steel products and steel building materials will be
increasing rapidly in line with the growing development of infrastructures with
outside the country. The business
position of P.T. ISPAT INDO is favorable for being supported by the MITTAL
Group, a large sized company group dealing with steel products and steel
building materials.
Until this time P.T. ISPAT INDO
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 2004 amounted to Rp. 1,880.0 billion, increased to
Rp. 1,970.0 billion in 2005 to Rp. 2,180.0 billion in 2006. We estimated the company’s total sales
turnover in 2007 amounted to Rp. 2,290.0 billion with a net profit of Rp. 145.0
billion. It is estimated the company
has an estimated total networth at least Rp. 1,320.0 billion. It is projected that total sales turnover of
the company will increase at least 10% in 2008. We observe that P.T. ISPAT INDO is supported by financially
strong behind it. So far, we did not hear that 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. II is headed by Mrs. Usha Mittal, with 32 years
experience in steel making and trading.
But daily operation in Indonesia is handled by Mr. Baldeo Prasad Banka
as the managing director and three directors namely Mrs. Megha Mital, Mr. G.
Renz and Mr. Bintarto Triatmodjo. Mr.
Baldeo Prasad Banka is also a
top-executive of the MITTAL Group or the ISPAT Group. Mr. Banka, managing director of P.T. ISPAT INDO has been with the
Group since 1981. The company has an experienced management further made up of
professional managers in the steel products industry and trade. They have wide
relations with government authorities and in private business circles within
and outside the country. So far, we did
not hear that the company’s management having been involved in business
malpractices.
We believed that P.T. ISPAT INDO is good for normal business
transaction.
Attachment :
List of the MITTAL Group or the ISPAT Group Members
1.
ADITYA
INVESTMENT LTD., Indonesia (Investment Holding)
2.
ASHOK
TEXTILE INDUSTRIES Pte. Ltd., Nepal (Textile Mills)
3.
AUTUMN
INVESTMENT Ltd., Hong Kong (Investment Holding)
4.
AMALGAMATED
TRADING Ltd. Isle of Man (Steel Trading and Investment Holding)
5.
CARIBBEAN
ISPAT Ltd., Trinidad (Steel Making)
6.
CMBJ
PENA COLORADA, S.A., Mexico (Iron Ore Pellets Making)
7.
DIERA
TRADING Ltd., Barduba (Steel Product Trading and Investment Holding)
8.
DOMINION
TRADING Ltd., England (Steel Trading and Investment Holding)
9.
GONTERMANN
PEIPERS Ltd., India (Iron and Steel Making)
10. INDO RAMA CHEMICALS Ltd. Thailand
(Chemical Processing)
11. INDO RAMA SYNTHETIC Ltd. India
(Textile Mills)
12. INLAND STEEL COMPANY, the USA (Steel
Making)
13. ISPAT ALLOYS Ltd., India (Alloys
Manufacturing)
14. ISPAT HAMBURGER STAHLWERKE GmbH,
Germany (Steel Products Making)
15. ISPAT INDO, P.T. Indonesia (Steel
Making Industry
16. ISPAT INTERNATIONAL (UK) LTD., the
U.K. (Trading)
17. ISPAT KARMET, Kazakhstan (Steel
Making)
18. ISPAT MEXICANA SA., Mexico (Steel
Making)
19. ISPAT PROFILES INDIA Ltd.
(Investment Holding)
20. ISPAT STEEL, P.T. Indonesia (Steel
Sponges and Steel Products Making)
21. ISPAT WIRE PRODUCT, P.T. (Wire
Products Making)
22. KHRISNA INDOGAS TAMA, P.T.
(Industrial Gases Processing)
23. KWL KENT WIRE LTD., the UK. (Wire
Products Making)
24. MUDRA VINIYOG, Ltd., of India
(Engineering Consulting and Investment Holding)
25. NIPPON DENRO ISPAT Ltd., India
(Steel Making and Investment Holding)
26. RAMATEX Ltd., Hong Kong (Investment
Holding_
27. SIDBEC DOSCO (ISPAT) INC., Canada
(Steel Products Making)
28. SERSIIN S.A. Mexico (Contracting)
29. THONBURI LACE Co., Ltd. Thailand
(Textile Mills)
30.
WALKER
WIRE (ISPAT) INC., the USA (Wire Making)
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)