MIRA
INFORM REPORT
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Report Date : |
17.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
P.T. CLASSIC PRIMA CARPET INDUSTRIES |
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Registered Office : |
Jalan Rungkut Industri II/39, Surabaya Industrial Estate Rungkut, Surabaya, 60292 East Java |
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Country : |
Indonesia |
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Date of Incorporation : |
8 March 1983 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Carpet Manufacturing |
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$
1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name of Company
P.T. CLASSIC PRIMA CARPET INDUSTRIES
Address
Head Office & Factory
Jalan Rungkut Industri II/39
Surabaya Industrial Estate Rungkut
Surabaya, 60292
East Java
Indonesia
Phone - (62-31) 843831 (Hunting)
Fax. - (62-31) 8439085
E-mail - impdept@cpci.co.id
Website - http : //www.cpci.co.id
Land Area - 13,000 sq. meters
Building
Area - 8,500 sq. meters
Region - Industrial Zone
Status - Owned
Branch
Jalan Pintu Air Raya 22/A
Jakarta Pusat, 10710
Indonesia
Phone - (62-21) 3855366, 3855307, 3855366, 365647
Fax. - (62-21) 3844122
Building
Area - 2 storey
Office
Space - 600 sq. meters
Region - Commercial Building
Status - Owned
Date of Incorporation
a. 8 March 1983 as P.T. CROWN CARPET INDUSTRIES
b. 25 August 1983 as P.T. CLASSIC PRIMA CARPET INDUSTRIES
Legal Form
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No.
The Ministry of Justice and Human Rights
No. C-16065 HT.01.04.TH.2004
Dated 25 June 2004
Company Status
Private Company
Permit by the
Government Department
The Department of Industry & Trade
No. 554/DJAI/IUT-III/Non PMA-PMDN/XII/91
Dated 25 January 1991
The Department of Finance
NPWP No. 01.231.841.6-615
Related Company
a. P.T.
Bank SWADESI Tbk (Banking Services)
b. U.D.
ISTANA DEKORASI (Trading of Carpet and Textile Design Interior Services)
c. C.V.
MULTINDO PERKASA (Importing and Trading of Carpet and Textile)
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital : Rp. 100,000,000,000.-
Issued Capital : Rp. 50,000,000,000.-
Paid up Capital : Rp. 50,000,000,000.-
Shareholders/Owners
a. Mrs. Devakabai Bhagwan
Chugani - Rp.
10,000,000,000.-
Address
: Jl. Raya Kertajaya Indah 20-22
Surabaya, East Java
Indonesia
b. Mr. Kamla Rupchand
Chugani - Rp.
10,000,000,000.-
Address : Jl. Raya Kertajaya Indah 20-22
Surabaya, East Java
Indonesia
c. Mr. Prakash Rupchand
Chugani - Rp.
10,000,000,000.-
Address : Jl. Tampak Siring Elok 10
Jakarta Utara
Indonesia
d. Mr. Deepak Rupo Chugani - Rp.
10,000,000,000.-
Address : Jl. Sanur Indah No. 75-77
Jakarta Utara
Indonesia
e. Mr. Deepak Rupo Chugani - Rp.
10,000,000,000.-
Address : Jl. Sanur Indah No. 75-77
Jakarta Utara
Indonesia
BUSINESS ACTIVITIES
Lines
of Business:
Carpet Manufacturing
Production Capacity
a. Carpets (Floor Covering, Automotive
Carpet, Printed Rugs) - 14,400,000 sq. meters p.a.
b. Polypropylene Yarns - 3,600 tons p.a.
Total Investment
a. Owned Capital - Rp. 50.0 billion
b. Loan Capital -
Rp. 20.0 billion
c. Total Investment - Rp. 70.0 billion
Started Operation
May 1984
Brand Name
CLASSIC
Technical Assistance
None
Number of Employee
255 persons
Marketing Area
Export - 70%
Local - 30%
Main Customer
Buyers in the Singapore, Malaysia, Thailand, Taiwan, Hong Kong, Pakistan, India, the Middle East, etc.
Market Situation
Very Competitive
Main Competitors
a. P.T. NOBEL INDAH CARPET INDUSTRIES
b. P.T. INDONESIA CARPET MANUFACTURING
c. P.T. HERCULON CARPET
d. P.T. RAINBOW INDAH CARPETS
Business Trend
Growing
BANKER, AUDITOR &
LITIGATION
Bankers :
a. ABN-AMRO Bank
Jalan Pemuda No. 54
Surabaya, East Java
Indonesia
b. P.T.
Bank SWADESI Tbk
Jalan Tunjungan No. 32
Surabaya, East Java
Indonesia
Auditor
:
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2004 – Rp. 100.0 billion
2005 – Rp. 110.0 billion
2006 – Rp. 120.0 billion
Net Profit (Loss) :
2004 – Rp. 7.0 billion
2005 – Rp. 7.7 billion
2006 – Rp. 8.4 billion
Payment Manner :
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of Management :
President Director - Mr.
Deepak Rupo Chugani
Directors -
a. Mr. Dilip Rupo Chugani
b. Mr. Narwani Prakash Kotumal
c. Mrs. Imelda Lyzawati Sutanto
Board of Commissioners :
President Commissioner - Mrs. Rupo
Narindas Chugani
Commissioners -
a. Mrs. Devakabai Bhagwan Chugani
b. Mr. Kamla Rupchand Chugani
c. Mr. Prakash Rupchand Chugani
Signatories :
President Director (Mr. Deepak Rupo Chugani) or one
of the Directors (Mr. Dilip Rupo Chugani, Mr. Narwani Prakash Kotumal or Mrs.
Imelda Lyzawati Sutanto) 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$
1,500,000.- on the 90 days of payments
OVERALL PERFOMANCE
Initially named P.T. CROWN CARPET INDUSTRIES, the company was established in Surabaya, East Java, in March 1983 with an authorized capital of Rp. 500,000,000.-, issued and paid up capital of Rp. 100,000,000.-. The original founding shareholders were the late Mr. Bhagwan Naraindas Chugani, Mr. Jivat Hardasmal Khiani, both are Indian ethnic Indonesian businessmen, and Mr. Soejadi, a native businessman. The notarial act has frequently been revised. In August 1983 the company was renamed P.T. CLASSIC PRIMA CARPET INDUSTRIES (P.T. CPCI), and in August 1990 the authorized capital was raised to Rp. 15,000,000,000.-, issued and paid up capital to Rp. 4,000,000,000.-. The shareholders are Mr. Jivat Hardasmal Khiani, Mr. Prakas Hardasmal Khiani and Mrs. Devakabai Bhagwan Chugani. Lastly in 1996 that Mr. Jivat Hardasmal Khiani pulled out and his shares had been taken over by his older brother Mr. Prakas Hardasmal Khiani. The latest in June 2004, the authorized capital was raised to Rp. 100,000,000,000.- issued capital of Rp. 50,000,000,000.- entirely issued and paid up. On the same occasion, Mr. Prakas Hardasmal Khiani and Mr. Jivat Hardasmal Khiani pulled out and replaced by Mr. Kamla Rupchand Chugani, Mr. Prakash Rupchand Chugani, Mr. Deepak Rupo Chugani and Mr. Dilip Rupo Chugani, all of them are Indian ethnic Indonesian business family.
The Deed of amendment was made by Mr. Jusuf Patrianto Tjahjono, SH., a public notary in Surabaya under Company Registration Number C-16065.HT.01.04.TH. 2004, dated June 25, 2004. We see that majority business stakes is controlled by Mr. Prakash Rupchand Chugani and family members. Mr. Prakash Rupchand Chugai is also majority business stakes owner of P.T. Bank SWADESI Tbk engaged in banking services, UD. ISTANA DEKORASI in trading and distribution of carpet and C.V. MULTINDO PERKASA in importing and trading and trading of carpet and textile.
P.T. CPCI is engaged in carpet and polypropylene yarn industry with its plant located at Jalan Rungkut Industri II/39 Surabaya on a land of some 1.6 hectares and building space of 1.3 hectares, operating since 1984. The plant has frequently been expanded to increase production capacity. It operates 7 units of machines made in USA, UK and Belgium, with production capacity of 14,400,000 sq. meters carpet, consisting of floor-covering, automotive carpet and printed rugs. Particular printed rug had newly been producing in March 1997. The company is also producing polypropylene yarns (PP) as basic material of carpet with a production capacity of 3,600 tons per year, while PP basic materials partly imported from South Korea, and polypropylene nylon is imported from Europe mainly Belgium. The development of the plant has absorbed an investment of Rp. 70.0 billion.
Mr. Chaotjun, S.S., a senior marketing staff, pointed out the main product is floor covering with a production of some 14.4 million sq. meters per year. Some 70% of them are exported to many countries including Saudi Arabia, Arab Emirate Union, Bahrain, Kuwait, Malaysia, Singapore, Thailand, Taiwan, Hong Kong, Pakistan, India, etc. under CLASSIC brand, and the other 30% for local market of the same brand and distributed by sister company U.D. ISTANA DEKORASI, while some 80% of automotive carpets are exported to Japan.
Generally we find the local demand for carpet had been rising by 6% to 7% per year within the last five years until 1997 in line with the rapid growth of hotels, luxury houses, office buildings, apartments and other sectors in that period. But since the prolonged economic crisis and tight money policy being imposed by Bank Indonesia in mid-1997 the demand had been fluctuating in the last five years from 1997 to 2001. It is estimated the demand will rise again in line with a slight amelioration of economic condition, stability of political and security in the country. Competition is very tight due to a large number of similar companies operating in the country, such as, P.T. NOBEL INDAH CARPET INDUSTRIES, P.T. INDONESIA CARPET MANUFCTURING, P.T. HERCULON CARPET, P.T. RAINBOW INDAH CARPETS, P.T. MULTI WARNA, etc. Business position of P.T. CPCI is not so critical for it has maintained a wide business at home and overseas.
Until this time P.T. CPCI 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. 100.0 billion increased to Rp. 110.0 billion in 2005 and to Rp. 120.0 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 8.4 billion and the company has an estimated total net worth at Rp. 87.0 billion. It is projected that total sales turnover of the company will be higher by at least 8% in 2007. We observe that P.T. CPCI 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 disclosed that the company usually pays its debts punctually to suppliers.
The management is headed by Mr. Deepak Rupo Chugani (35), a professional
manager with experience for more than 5 years in carpet manufacturing. But, the
primemover of the company his father Mr. Kamla Rupchand Chugani (56). We
observed that management’s reputation in said business is fairly good. The
management is also supported by a team of professional managers having
maintained a wide business relation among private businessmen at home and
abroad as well as among government sectors. So far, we have never heard of the
management of the company being filed to the district court for detrimental
cases. P.T. CLASSIC PRIMA CARPET INDUSTRIES is considered to be good for normal
business transaction. But, considering unstable economic condition in the
country, we recommend to treat prudently in extending 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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