MIRA
INFORM REPORT
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Report Date : |
10th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
P.T. DAN LIRIS INDUSTRIAL & TRADING COMPANY |
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Registered Office : |
Desa Banaran, Grogol, Sukoharjo, Solo, Central Java, Indonesia |
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Country : |
Indonesia |
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Date of Incorporation : |
25.04.1974 |
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Com. Reg. No.: |
C2-2198.HT.01.04.TH.99 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
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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$ 12.0 million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Correct Name of Company
P.T. DAN LIRIS INDUSTRIAL & TRADING COMPANY
Address
Head Office & Factory
Desa Banaran, Grogol
Sukoharjo, Solo
Central Java
Indonesia
Phone - (62-271) 714400 (hunting)
Fax. - (62-271) 717178, 717182
Land Area - 22.0 hectares
Building Space - 5.8 hectares
Region - Industrial Zone
Status - Owned
Jakarta Branch
Panin Center Building, 7th Floor
Jl. Jenderal Sudirman 1
Jakarta Selatan
Indonesia
Phone - (62-21) 7262365 (hunting)
Fax. - (62-21) 7245323
Building Area - Office Building
Office Space - 500 sq. meters
Region - Commercial
Status - Rent
Date of Incorporation
25 April 1974
Legal Form
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No.
The Ministry of Justice and Human Rights
No. C2-2198.HT.01.04.TH.99
Dated 01 February 1999
Company Status
Private and Domestic Investment (PMDN)Company
Permit by the Government
Department
The Capital Investment Coordinating Board
a. No. 263/SK/BKPM/VI/74/PMDN
Dated 5 June 1974
b. No. 311/III/PMDN/1986
Dated 9 August 1986
c. No. 29/II/PMDN/1995
Dated 27 January 1995
Related Company
The BATIK KERSIS
Group Members
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital : Rp. 250,000,000,000.-
Issued Capital : Rp. 128,000,000,000.-
Paid up Capital : Rp. 128,000,000,000.-
Shareholders/Owners :
a. P.T. KERIS KONDANG - Rp. 30,633,518,000.-
b. P.T. KONDANG EKATAMA INDONESIA - Rp. 36,137,748,000.-
c. P.T. KONDANG PERTIWI - Rp. 22,754,560,000.-
d. P.T. CATUR JANTRA - Rp. 32,820,513,000.-
e. P.T. ASA INDONESIA - Rp. 942,277,000.-
f. P.T. EKLESIA INDAH - Rp. 2,355,692,000.-
g. P.T. WAHANASWAKARYA NUSA LESTARI - Rp. 2,355,692,000.-
BUSINESS ACTIVITIES
Lines of Business:
- Integrated Textile Industry
- Investment Holding
Production Capacity
1.
Initial plant
a. Textile Yarns -
45,000 bales p.a.
b. Voiles Fabbrics -
80,000,000 yards p.a.
c. Yerseys/Knittings -
1,000,000 yards p.a.
d. Garments -
300,000 dozens p.a.
2. Expansion plant (1995)
a. Textile Yarns -
146,500 bales p.a
b. Voiles Fabrics (Pemissima) – 15,000,000
yards p.a.
b. Grey Fabrics - 29,500,000 mtrs. p.a.
c. Garments -
700,000 dozens p.a.
Total Investment
1.
Initial plant
a. Owned Capital - Rp 58.0 billion
b. Loan Capital -
Rp 22.4 billion
c. Total Investment -
Rp 80.4 billion
2. Expansion plant (1995)
a. Equity Capital -
Rp 108.5 billion
b. Loan Capital -
Rp 425.1 billion
c. Total Investment -
Rp 533.6 billion
Started Operation
1978
Brand Name
DAN LIRIS
Technical Assistance
None
Number of Employee
15 persons
Marketing Area
a. Domestic (Local Market) - 20%
b. Export (Overseas Market) - 80%
Main Customers
a. The BATIK KERIS Group members
b. Wholesalers of textile product in Indonesia
c. Overseas (the USA, Singapore, Middles-East, etc)
Market Situation
Very Competitive
Main Competitors
a. P.T. ARGO PANTES Tbk.
b. P.T. CANDRATEX SEJATI
c. P.T. TRISULATEX
d. P.T. PANASIA INDOSYNTEX Tbk.
e. P.T. PUJI PALAPA TEXTLE (PUJITEX)
f. Etc.
Business Trend
Declining
BANKER, AUDITOR & LITIGATION
Bankers :
a. P.T. LIPPON Bank Tbk.
Jl. Gatot Subroto Kav 35-36
Jakarta Selatan
Indonesia
b. P.T. Bank NIAGA
Tbk.
Jl. Brigjen Slamet Riyadi No. 8
Solo, Central Java
Indonesia
c. P.T. PANIN Bank
Tbk.
Jl. Mayjen Kusmanto
Solo, Central Java
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2003 – Rp. 1,150.0 billion
2004 – Rp. 1,048.0.0 billion
2005 – Rp. 960.0 billion
2006 – Rp. 820.0 billion
Net Profit (Loss) :
2003 – Rp. 42.0 billion
2004 – Rp. 38.0 billion
2005 – Rp. 32.0 billion
2006 – Rp. 24.0 billion
Payment Manner :
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of Management :
President Director -
Mr. Handianto Tjokrosaputro AKA Kwee Han Gwan
Vice President Director -
Mr. Denis Coktro Saputra
Managing Director -
Mr. Djoko Santosa
Directors - a. Mr. Haryanto Setyawan
b. Mrs. Ninuk Setyawati AKA Jio Lin Tjhing
Board of Commissioners :
President Commissioner - Mr.
Handiman Tjokrosaputra AKA Kwee Han Liem
Commissioners - a. Mrs. Gaitini AKA Ong Gee
Tie Nio
b. Mr. Irawan Tjandra
Signatories :
President Director (Mr. Handianto Tjokrosaputro) or Vice President Director (Mr. Denis Cokro
Saputra) or Management Director (Mr. Djoko Santosa) or one of the Directors
(Mr. Haryanto Setyawan and Mrs. Ninuk Setyawati) which must be approved by the
Board of Commissioners
CAPABILITIES
Management Capability :
Good
Business Morality
Fairly Good
Credit Risk
Above Average
Credit Recommendation
Credit should be extended under guarantee
Proposed Credit Limit
C.O.D. To small
amount
Maximum Credit Limit
US$ 12.0 million on
the 90 days of payments
OVERALL PERFOMANCE
P.T.
DAN LIRIS INDUSTRIAL & TRADING COMPANY abbreviated P.T. DAN LIRIS at once
as its trading style was established in 1974 with an authorized capital of Rp 6,000,000,000.-, issued and paid up
capital of Rp 1,500,000,000.- The original
founding shareholders are Mrs.
Caitini AKA Ong Gee Tie Nio (wife of the
late Mr. Kasom Tjokrosaputro AKA Kwee Som Tjiok) and her
two sons Mr. Handiman
Tjokrosaputro AKA Kwee Han Liem and Mr.
Hardianto Tjokrosaputro AKA Kwee Han
Tiong. Its articles of association were
made by Mrs. Maria Theresia Budisantoso, SH, notary public under number 87
dated 25 April 1974. In 1994 the
authorized capital was raised to Rp
250,000,000,000.-, issued and
paid up capital to Rp 58,000,000,000.- In 1998 the issued capital was
raised to Rp 128,000,000,000.-
entirely paid up. The majority
shares of P.T. DAN LIRIS is
controlled by the Tjokrosaputro
family, who is also the majority business stakes owner of the
BATIK KERIS Group, a large
business group in textile industry in the country.
P.T. DAN LIRIS has been operating since 1978 as a
Domestic Investment (PMDN) company engaged
in integrated textile industry. Its plant is located at
Desa Banaran Grogol, Sukoharjo, Solo,
Central Java. The plant had frequently been
expanded in 1991 and 1995. Mr.
Djoko Santoso, personnel manager of the
company, said the 1995 expansion
had yet been taken due to a unit of the plant burnt out in medio
1995. Renovation of fired unit completed and
started for operation in the
early 1997. He said further that 100% of cotton (basic stuff) are imported from
the USA by letter of credit (L/C) system for 60 days period. Some 80% of the products are exported to
Singapore, the USA, Middle-East and
other countries. While
garments are all exported
to Singapore, the
USA, Middle-East and other countries.
P.T. DAN LIRIS is also engaged in the investment
holding, it controls 49% shares of P.T. KERIS INOUE NISSHO INDONESIA (garment
manufacturing), a joint ventured with two companies of Japan namely INOUE SEI
INC. (33%) and NISSHO IWAI CORP. (18%).
On 22 September 2005, thousands of employees of P.T. DAN LIRIS were on
strike to protest the massive laying off being carried out by the company.
Consequently, the activities of the company were totally paralyzed. The strike
action was conducted after P.T. DAN LIRIS has laid off some 400 employees in
mid September 2005. This is the fourth laying off of P.T. DAN LIRIS in 2005.
The employees demanded the stoppage of massive lying off policy and the cash
payment of separation pay for those being laid off. The management of P.T. DAN
LIRIS said that the laying off has been carried out as an efficiency step
following the increasing oil fuel prices. The company promised to pay the separation pay in installment due
to lack of cash flow.
The competition is very tight on account of many similar companies
operating in the country. The business position of P.T. DAN LIRIS is less
favorable because in September 2005 thousands of its employees were on strike
due to mass laying off causing the company activities to be totally paralyzed
temporarily.
The management of P.T. DAN LIRIS is very reclusive towards outsiders and
rejected to disclose its financial condition. However, we estimated that total
sales turnover of the company in 2004 amounted to Rp. 1,048.0 billion declined
to Rp. 960.0 billion in 2005 to Rp.
820.0 billion in 2006 and projected to be declining by 12% in 2007. due to
employees’ being on strike causing the company activities to be totally
paralyzed. The operation of the company in 2006 is estimated to have gained a
profit of Rp. 24.0 billion with an estimated networth of Rp. 780.0 billion.
A very sharp Rupiah depreciation against foreign currencies in mid-1997
made the company's foreign debts sharply increased. Initially P.T DAN LIRIS was recorded as bad-debtor of
Rp 146.8 billion on the Indonesian Bank Restructuring Agency (IBRA) and reportedly
part of the company's assets had been auctioned by IBRA in April 2002 and it
was interested by local and foreign investors, but the management has no
comment about it. However, based on the list of IBRA issued in February 2003,
the name of P.T. DAN LIRIS has disappeared. Its payment to suppliers is still
running punctually. We did not hear that the company has been black listed by
Central Bank (Bank Indonesia) and having detrimental cases being settled in the
court.
The management of P.T. DAN LIRIS is headed
by Mr. Hadianto Tjokrosaputro AKA Kwee Han Gwan (46), a top figure of the BATIK
KERIS Group with experience for some 15 years in many business activities. The
management is handled by professional managers in integrated textile industry. Business relation with private businessmen
at home and abroad has been maintained properly. So far, we have never yet heard of the company’s management
having been involved in business malpractices.
Based on our investigation result,
it can be concluded that operation of the company is declining in the last five
years. Therefore We suggest being careful in giving new loan to them or credit
is not recommended.
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%)