MIRA
INFORM REPORT
|
Report Date : |
16.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
P.T. INDO PAK TRADING CORPORATION |
|
|
|
|
Registered Office : |
Jalan Mangga Dua Raya, Ruko Grand Boutique Block E/19, Jakarta Utara, 14430 |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Date of Incorporation : |
22 June 1998 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Trading and Export of Garment, Textile Products, Furniture and Agricultural Products |
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$ 125,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
Name of Company
P.T. INDO PAK TRADING CORPORATION
Address
Head Office
Jalan Mangga Dua Raya
Ruko Grand Boutique Block E/19
Jakarta Utara, 14430
Indonesia
Phone - (62-21) 6120228, 6120029
Fax. - (62-21) 6120027
Building Area - 3 storey
Office Space - 360 sq. meters
Region - Commercial Building
Status - Rent
Date of Incorporation
22 June 1998
Legal Form
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No.
Not Available
Company Status
Foreign Investment (PMA) Company
Permit by the Government Department
The Capital Investment Coordinating Board
No. 415/I/PMA/1998
Dated 22 July 1998
Related Company
None
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital : US$ 250,000.-
Issued Capital : US$ 250,000.-
Paid up Capital : US$ 250,000.-
Shareholders/Owners
a. Mr. Muhammad Ashraf Paracha - US$ 150,000.-
Address : D-107,
Block B, North Nazimabad
Karachi
Pakistan
b. Mr. Sohail Shahzad Butt - US$ 100,000.-
Address : House
No. 20.A, Street No. 5
Pak Nagar, Akram Road
Lahore, Pakistan
BUSINESS ACTIVITIES
Lines of Business:
Trading and Export of Garment, Textile Products, Furniture and Agricultural Products
Production Capacity
None
Total Investment
a. Equity Capital - US$ 250,000.-
b. Loan Capital - US$ None
c. Total Investment - US$ 250,000.-
Started Operation
1999
Brand Name
None
Technical Assistance
None
Number of Employee
21 persons
Marketing Area
Export - 100%
Main Customer
Buyers in Pakistan
Market Situation
Very Competitive
Main Competitors
a. P.T. INDOPAK TRADING
b. P.T. INDO MAJAHID IMPEX
c. P.T. SAFRAN TRADING INDONESIA
d. P.T. SHAZAB SALWAINDO TRADING
e. P.T. SHEMSY POLAINDAH INDONESIA
f. Etc.,
Business Trend
Growing
BANKER, AUDITOR &
LITIGATION
Bankers :
a. The Hongkong and Shanghai Banking Corp. Ltd.
World Trade Center
Jalan Jend. Sudirman Kav. 29-31
Jakarta Selatan, 12930
Indonesia
b. P.T. Bank
MANDIRI Tbk
Jalan Mangga Dua Raya
Jakarta Utara
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2004 – Rp. 8.5 billion
2005 – Rp. 9.0 billion
2006 – Rp. 9.5 billion
Net Profit (Loss) :
2004 – Rp. 0.6 billion
2005 – Rp. 0.7 billion
2006 – Rp. 0.8 billion
Payment Manner :
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of Management :
Director - Mr. Muhammad Ashraf Paracha
Board of Commissioners :
Member - Mr. Sohail Shahzad Butt
Signatories :
Director (Mr. Muhammad Ashraf Paracha) 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$ 125,000.- on
the 90 days of payments
OVERALL PERFOMANCE
P.T. INDO PAK TRADING CORPORATION (P.T. IPTC) is a joint venture enterprise established in June 1998 in Jakarta with an authorized capital of US$ 250,000.- entirely issued and paid up. The founding shareholder of the company are Mr. Muhammad Ashraf Paracha and Mr. Sohail Shahad Butt, both are of Pakistan. But the company’s notarial deed has yet been reported and registered at Department of Justice and Human Right. Besides that, the management of the company has very closed to expose of its notarial deed.
P.T. IPTC operates under the framework of Foreign Investment (PMA) facilities in trading and export of textile, garment, shoes, home industries and sundries goods, furniture and agricultural products. The agricultural products are tea, areca nuts, resin (damar) and others. The products like shoes, sundries goods, garment and textile products bought from textile and garment industries, shoes industries in Tangerang, Bandung, West Java, furniture from Jakarta, Cirebon (West Java) and Central Java. Meanwhile the agricultural product bought from farmer in Java, Sumatera, Sulawesi, Java and others island of Indonesia. Then, the whole products is exported to Pakistan. We observed that the company’s operation has been growing in the last three years.
We have noticed that the demand for agricultural products had increased some 10% to 11% per annum in the last five years in line with the growth of industrial manufacturing in the country and international market. In the coming years, the growth rate of demand is estimated at about 6% to 7% per annum. The present market situation for agricultural products is very competitive for a large number of similar companies operating in the country. Meanwhile, competition is quite heavy in the export import of agricultural products with many companies now doing business in this field in Indonesia. Besides, the demand for wooden and rattan furniture had been rising by 10% to 12% within the last five years in line with the growth of industrial manufacturing in the country and international market. In the coming years, the growth rate of demand is estimated at about 7% to 8% per annum. The present market situation for furniture products is very competitive for a large number of similar companies operating in the country. We consider P.T. IPTC to be in a quite favorable position for having already got hold of a steady clientele in the country and abroad.
Until this time P.T. IPTC 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. 8.5 billion increased to Rp. 9.0 billion in 2005 and to Rp. 9.5 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 0.8 billion and the company has an estimated total networth at Rp. 1.5 billion. It is projected that total sales turnover of the company will increase at least 7% in 2007. We observe that P.T. IPTC 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. IPTC is led by Mr. Muhammad Ashraf Paracha, a professional manager of Pakistan with 9 years of experience in trading and export of garment, textile products, furniture, shoes, home industries and sundries and agricultural products. 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. INDO PAK TRADING CORPORATION 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
|
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/normal. |
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%)