MIRA
INFORM REPORT
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Report Date : |
26.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
P.T. KSW BATAM |
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Registered Office : |
Latrade Industrial Park Block G Lot 1-4, Jalan Sei Binti
Tanjung Uncang, Sagulung, Kepulauan Riau, Batam 29432 |
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Country : |
Indonesia |
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Date of Incorporation : |
08 December 2004 |
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Com. Reg. No.: |
C2-03496.HT.01.01.TH.2005 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Safety Shoe 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$ 2,300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
Name of Company
P.T. KSW BATAM
Address
Head Office & Factory
Latrade Industrial
Park Block G Lot 1-4
Jalan Sei Binti
Tanjung Uncang
Sagulung,
Kepulauan Riau
Batam 29432
Indonesia
Phone - (62-778) 392777
(hunting)
Fax. - (62-778) 393777
Email - kswbatam@kingsafetywear.com
Website - http://www.kingsafetywear.com
Land Area - 30,000 sq.
meters
Office Space - 12,500 sq.
meters
Region - Industrial
Estate
Status - Rent
Date of Incorporation
08 December 2004
Legal Form
P.T. (Perseroan Terbatas)
or Limited Liability Company
Company Reg. No.
No.
C2-03496.HT.01.01.TH.2005
Dated 16 February
2005
Company Status
Foreign Investment Company (PMA)
Permit by the
Government Department
a. The Capital Investment Coordinating Board
No.
828/I/PMA/2004
Dated 23 November 2004
b. The Department of Finance
NPWP No.02.437.167.6-215.000
TDP No. 041011903559
Related Company
The KING’S SAFETY WEAR Group Member
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital -
US$. 4,000,000.-
Issued Capital - US$. 1,000,000.-
Paid Up Capital - US$. 1,000,000.-
Shareholders/Owners :
a. KING’S SAFETY
WEAR INDONESIA Pte. Ltd. - US$.
999,000.- (99.9%)
Address : 22 Defu Lane 1,
Defu Industrial
Estate
Singapore
539493
b. Mr. Chan Sian
Lek -
US$ 1,000.- ( 0.1%)
Address : 70 Sommerville Road
Singapore
358301
Passport No.
S 1456029 G
BUSINESS ACTIVITIES
Lines of Business:
Safety Shoe
Manufacturing
Production Capacity
Safety Shoes – 1,250,000 pairs p.a.
Total Investment
a. Equity Capital - US$. 4.0 million
b. Loan Capital - US$. 4.0 million
c. Total Investment -
US$. 8.0 million
Started Operation
February 2005
Brand Name
KING’S SAFETY
SHOES
Technical Assistance
KING’S SAFETYWEAR INDONESIA Pte.
Ltd.
Number of Employee
514 persons
Marketing Area
a. Export -
90%
b. Local - 10%
Main Customer
Buyers in Asia,
Europe and USA
Market Situation
Very Competitive
Main Competitors
a. P.T. OSHA ASIA
b. P.T. HENGTRACO
PROTECSINDO
c. P.T. GRAND SHOE
INDUSTRY
d. P.T. MITRA
GABATA DINAMIKA
e. Etc.
Business Trend
Growing
BANKER, AUDITOR &
LITIGATION
Bankers :
a. P.T. Bank UOB
INDONESIA
Batam Branch
Batam 29432
b. P.T. Bank MANDIRI Tbk.
Batam Branch
Batam 29432
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2005 – Rp 125.0 billion
2006 – Rp. 170.0
billion
Net Profit (Loss)
:
2005 – Rp 8.0 billion
2006 – Rp. 15.5 billion
Payment Manner :
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of Management :
Director - Mr. Chan Sen
Meng
Board of Commissioners :
Commissioner - Mr. Teo Mui Kwang
Signatories :
The Directors (Mr. Teo Mui Kwang) which
must be approved by the Commissioner (Mr. Teo Mui Kwang).
CAPABILITIES
Management Capability :
Fairly Good
Business Morality
Fairly Good
Credit Risk
Average
Credit Recommendation
Credit should be proceeded with monitor
Proposed Credit
Limit
Small amount – periodical review
Maximum Credit Limit
US$ 2,300,000.- on the 90 days
of payments
OVERALL PERFOMANCE
P.T. KSW BATAM was established in Batam (Kepulauan Riau) on 8 December 2004 with the authorized capital of US$ 4,000,000.- of which US$ 1,000,000.- was issud and fully paid up. The founding shareholders of the company are KING’S SAFETYWEAR INDONESIA Pte., Ltd., of Singapore (99.9%) and Mr. Chan Sian Lek, a businessman of Singapore. We have since never heard of any changes having occurred in its capital structures and shareholders composition. The deed of amendment was made by Mr. Soehendro Gautama, SH., a public notary in Batam under Company Registration Number C-03946.HT.01.01.TH. 2005, dated February 16, 2005.
KING’S SAFETYWEAR INDONESIA Pte., Ltd., a member of the KING’S SAFETYWEAR
Group, a company group mainly dealing with industry and trading of safety
shoes, based in 22 Defu Lane 1, Defu Industrial Estate, Singapore 539493.
P.T. KSW BATAM has been in operation since early 2005 dealing with
safety shoe manufacturing by managing a plant doubling as its head office
located in Latrade Industrial park Block G Lot 1-4, Jalan Sei Binti, Tanjung
Uncang, Sagulung, Batam. The plant has
annual production of 1,250,000 pairs of safety shoes. The plant has obsorbed an
investment of US$ 4.0 million come from company capital of US$. 1.0 million and
the balance from loans. Miss Irawati, a
senior staff of P.T. KSW BATAM said that a large extent of the company’s
products are exported to its subsidiary companies of the KING’S SAFETYWEAR Group
spreading in overseas under King’s brand.
The operation of the company has been increasing since its operation in
early 2005 and estimated to be growing in the coming years. However, the company’s products have to
compete tightly with similar products being sold in domestic and international
markets. P.T. KSW BATAM is classified
as a medium sized company in the country dealing with safety shoe industry.
Generally, demand for safety shoes has been increasing by 5% to 6% the
last five years in which it had drastically been decreasing s the impact of the
economic crisis in the country in 1997.
However, the competition is very tight on account of lots of similar
companies dealing with safety shoe manufacturing such as P.T. OSHA ASIA, P.T.
HENGTRACO PROTECSINDO, P.T. GRAND SHOE INDUSTRY, P.T. MITRA GABATA DINAMIKA and
others. Beside in domestic markets, the
safety shoes of the company are also exported to Asia, Europe and the USA. The business position of P.T. KSW BATAM is
favorable for having established wide marketing networks within and outside the
country. Besides, he company is backed
up by its holding company KING’S SAFETYWEAR INDONESIA Pte., Ltd., based in
Singapore.
The company is neither public listed nor bond issued company. We estimated that total sales turnover of
P.T. KSW BATAM in 2005 amounted to Rp. 125.0 billion rose to Rp. 170.0 billion
in 2006 and projected to be rising by at least 20% in 2007. The operation of the company in 2006 is
estimated to have gained a net profit of Rp. 15.5 billion with a total net
worth of Rp. 80.0 billion. So far we
did not hear that P.T. KSW BATAM has been black listed by Bank Indonesia
(Central Bank) or having detrimental cases being settled in local district
court.
The management of the company is headed by Mr. Chan Sen Meng (50), a
businessman of Singapore. He is also
one of top-figure of KING’S SAFETYWEAR INDONESIA Pte., Ltd. The management is handled by experienced
professional managers from Singapore and Indonesia having wide relation with
private businessmen of hoe and overseas as well as with the government
sectors. So far, we did not hear that
P.T. KSW BATAM has been involved in business malpractices.
P.T. KSW BATAM is appraised to be good for normal 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%)