MIRA
INFORM REPORT
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Report Date : |
22.10.2007 |
IDENTIFICATION DETAILS
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Name : |
P.T. INDO BHARAT
RAYON |
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Registered Office : |
Menara Batavia,
16th Floor, Jalan K.H. Mas Mansyur Kav. 126, |
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Country : |
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Date of Incorporation : |
5 September 1980 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Viscose Rayon Staple Fiber and Acrylic
Fiber Industry |
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$ 20,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name of Company
P.T. INDO BHARAT RAYON
Address
Head Office
Menara Batavia, 16th
Floor
Jalan K.H. Mas
Mansyur Kav. 126
Phone -
(62-21) 5722452 (Hunting)
Fax. - (62-21) 5722417
Building Area - 26 storey
Office Space - 250 sq. meters
Region - Commercial
Status - Rent
Factory
Desa Ciroyom,
Cilangkap
Purwakarta,
Phone -
(62-264) 202041-44
Fax. - (62-264) 201349
Land Area - 30.0 hectares
Office Space - 12.5 hectares
Region - Industrial
Zone
Status - Owned
Date of
Incorporation
5 September 1980
Legal Form
P.T. (Perseroan Terbatas)
or Limited Liability Company
Company Reg. No.
The Ministry of Law and Human Rights
No. C-735
HT.01.04.TH.2000
Dated 24 January
2000
Company Status
Foreign Investment (PMA) Company
Permit by the
Government Department
The President of
the
No. B-22/Pres/6/1980
Dated 3 June 1980
The
Capital Investment Coordinating Board
- No. 16/I/PMA/1983
Dated 24 June 1983
- No. 39/II/PMA/1983
Dated 8 December 1983
- No. 415/III/PMA/1991
Dated 1 July 1991
- No. 207/III/PMA/1992
Dated 16 March 1992
- No. 95/II/PMA/1993
Dated 21 September 1993
- No. 227/II/PMA/2002
Dated 22 October 2002
- No. 129/II/PMA/2004
Dated 11 August 2004
- No. 80/II/PM/2005
Dated 31 March 2005
Related Company
The BIRLA INDONESIA
Group Members
a.
P.T. INDO BHARAT RAYON (Viscose Rayon Staple Fiber
Industry)
b.
P.T.
c.
P.T. ELEGANT TEXTILE INDUSTRY (Spinning Mills
Industry)
d.
P.T. INDO RAYA KIMIA (Carbon disulphide
Manufacturing)
e.
P.T. INDO
f.
Etc.
CAPITAL AND
OWNERSHIP
Capital Structure :
Authorized Capital
: US$
13,000,000.-
Issued Capital : US$
10,000,000.-
Paid up Capital : US$
10,000,000.-
Shareholders/Owners :
a. LONDON EUROPEAN
ASSOCIATES Ltd., of
b. HART GLOBAL
Ltd., of
c. GRASIM
INDUSTRIES Ltd., of
d. CHARMNOX Ltd.,
of
e. GRAND ISLAND
Ltd., of
f. MAHASMUTH
INVESTMENT Pte. Ltd., of
BUSINESS ACTIVITIES
Lines of Business:
Viscose Rayon Staple Fiber and Acrylic Fiber
Industry
Production Capacity
a. Viscose Rayon Staple Fibers -
109,000 tons p.a.
b. Anhydrous Sodium Sulphates - 73,720 tons p.a.
c. Carbon Bi-Sulphates - 25,400 tons p.a.
d. Sulphuric Acids - 87,050 tons p.a.
e. Acrylic Fibers - 12,000 tons p.a.
f. Electric Power - 22 MW
Total Investment
a. Equity Capital - US$ 13.0 million
b. Reinvested
Profit -
US$ 37.0 million
c. Loan Capital - US$ 202.3
million
d. Total
Investment - US$ 252.3 million
Started Operation
1982
Brand Name
IBR (Indo Bharat
Rayon)
Technical
Assistance
None
Number of Employee
1,044 persons
Marketing Area
Export - 60%
Domestic - 40%
Main Customer
Buyers in
TEXTILE, P.T. ELEGAN
TEXTILE INDUSTRI
Market Situation
Competitive
Main Competitors
a. P.T. SOUTH
PACIFIC VISCOSE
b. P.T. TOBA PULP
LESTARI Tbk (ex P.T. INTI INDORAYON UTAMA Tbk)
Business Trend
Growing
BANKER, AUDITOR
& LITIGATION
Bankers :
a. P.T. Bank MANDIRI Tbk
Jalan MH. Thamrin No. 5
b. CITIBANK N.A.
Jakarta Branch
Jalan Jend. Sudirman No. 1
c. Hongkong and Shanghai Banking Corp. Ltd.
Jalan Jend. Sudirman Kav.
29-31
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2003 – Rp. 1,180.0
billion
2004 – Rp. 1,230.0
billion
2005 – Rp. 1,300.0
billion
2006 – Rp. 1,460.0
billion
2007 – Rp. 817.0 billion (January – June)
Net Profit (Loss)
:
2003 – Rp. 94.5 billion
2004 – Rp. 108.0 billion
2005 – Rp. 117.0
billion
2006 – Rp. 130.0
billion
2007 – Rp. 73.6 billion (January – June)
Payment Manner :
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of
Management :
President Director - Dr. Prakash Maheswari
Directors -
a. Mr. Ashok Kumar Tyagi
b. Mr. Bhag Chand Jain
c. Mr. Kayur Yogesh Raiji
d. Mr. Ram Kishan Sonthalia
e. Mr. Janardan Das Maru
f. Mr. Halim Setiono
Board of
Commissioners :
President Commissioner -
Mr. Shailendra Kumar Jain
Commissioners - a. Mr. Kumar Mangalam Birla
b. Mr. Kamol Phichit Singh
c. Mr. Rajashree Birla
d. Mr. Neerja Birla
e. Mr. Prakash Kumar Mehta
Signatories
:
President
Director (Dr. Prakash Maheswari) or one of the Directors (Mr. Ashok Kumar
Tyagi, Mr. Bhag Chan Jain, Mr. Kayur Yogesh Raiji, Mr. Ram Kishan Sonthalia,
Mr. Janardan Das Maru or Mr. Halim Setiono) 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$ 20,000,000.- on the 90 days of payments
OVERALL PERFOMANCE
P.T. INDO BHARAT RAYON (P.T. IBR) was incorporated in September 1980
with an authorized capital of US$ 8,422,000.- entirely was issued and paid up.
Initially the founding shareholders of the company were Birla AG of
Switzerland, International Industrial Management and Investment Corporation of Panama,
Mirapa Ltd., of Liechtenstein, Thakral Holdings (HK) Ltd., of Hong Kong, The
Gwalior Rayon Silk Mfg. Co.Ltd., of India, Hong Kong Indonesia Group Inc., of
Hong Kong, Charmnox Ltd., Hong Kong, A.T.E. Maskapai Private Ltd., of Singapore
(all companies are the members of the BIRLA Group based in India) and P.T.
BEKLANI. In 1983, its authorized capital was raised to US$ 32,000,000.- wholly
was issued and paid up. The deed of amendment was made by Mr. Amrul Partomuan
Pohan, SH. LLM, a public notary in
In May 2001 the issued and paid-up capital was decreased to US$
13,000,000.- issued capital of US$ 10,000,000.- entirely paid up and
concurrently entered new shareholders. The latest shareholders are LONDON
EUROPEAN ASSOCIATES Ltd., HART GLOBAL Ltd., GRAND ISLAND Ltd., three are of
British Virgin Island, GRASIM INDUSTRIES Ltd., of India, CHARMNOX Ltd., of
P.T. IBR is a member of the BIRLA INDONESIA Group, a large business
group based in
P.T. IBR is a Foreign Capital Investment (PMA) company, engaged in
viscose rayon staple fibre, acrylic fibre industry and side-product of
chemicals like anhydrous sodium suphates, carbon bi-sulphates and sulphuric
acids. Its plant is located at Desa Ciroyom, Cilangkap, Purwakarta,
The operation of P.T. IBR has been growing in the last five years. The
occurring of the economic crisis and sharp Rupiah depreciation against the US$,
Japanese Yen, Poundsterling, EUR and other hard currencies has positive impact
on P.T. IBR’s operation for some 60% of its products are exported. Meanwhile,
the local TPT (Textile and Textile Products) industries and other factors
causing the declining competitive ability of the national TPT products are the
increasing production costs, high interest rates, expensive customs office
costs, illegal retributions, textile and garment machinery restructuring costs
and the rising prices of production components (oil fuel prices and electric
base tariffs).
Generally, the demand for garment in international market has been
fluctuating in the last five years as evident from figures of Indonesian
garment export. According to the Central Bureau of Statistic (BPS) the
Indonesian garments export in 2000 amounted to 370,300 tons (US$ 4,702.6
million), to 473,800 tons (US$ 4,476.7 million) in 2001, to 333,100 tons (US$
3,887.2 million) in 2002 to 339,000 tons (US$ 4,037.9 million) in 2003 to
327,300 tons (US$ 4,351.9 million) in 2004
to 369,500 tons (US$ 4,967.0 million) in 2005 and to 399,600 tons (US$ 5,608.1 million) in
2006. The Indonesian textile products
export in 2000 amounted 1,365,100 tons (US$ 3,634.1 million), declined to
1,269,500 tons (US$ 3,198.9 million) in 2001, to 1,425,900 tons (US$ 3,075.9
million) in 2002 to 1,307,500 tons (US$ 3,064.6 million) in 2003 to 1,300,400
tons (US$ 3,354.6 million) in 2004 to
1,427,300 tons (US$ 3,704.0 million) in 2005 to 1,477,800 tons (US$ 3,908.6
million) in 2006.
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Year |
Garment |
Textile Products |
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(Thousand Ton) |
(US$ Million) |
(Thousand Ton) |
(US$ Million) |
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2000 2001 2002 2003 2004 2005 2006 |
370.3 473.8 333.1 339.9 327.3 369.5 399.6 |
4,702.6 4,476.7 3,887.2 4,037.9 4,351.9 4,967.0 5,608.1 |
1,365.1 1,269.5 1,425.9 1,307.5 1,300.4 1,427.3 1,477.8 |
3,634.1 3,198.9 3,075.9 3,064.6 3,354.6 3,704.0 3,908.6 |
Source : Central Bureau of Statistic
The step Rupiah depreciation has had a positive effect on P.T. IBR’s finances,
because 60% of the products are exported. But since September 2002 the volume
of the company’s export has fallen sharply as a result of the 11 September
2001, WTC tragedy in
`
Until this time P.T. IBR 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 is Rp. 1,230.0
billion increased to Rp. 1,300.0 billion in 2005 and to Rp. 1,460.0 billion in
2006. The operation in 2006 yielded an estimated net profit at least Rp. 130.0
billion and the company has an estimated total networth at Rp. 220.0 billion. It is projected that P.T. IBR’s total sales
turnover will continue on rising by at least 12% in 2007. We observe that
company is supported by financially strong behind it. So far, we have never
heard of the company having been black listed by the Central Bank (Bank
The management is led By Dr. Prakash Maheswari (52), a professional
manager with 21 years experience in viscose rayon staple fiber and acrylic
fiber manufacturing and distribution. The management is well experienced and
handled by professional managers in the above business. They have wide relation
with home and overseas private businessmen as well as with the government
sectors. So far, we have never heard of
the management of the company being filed to the district court for detrimental
cases or involved in any fraudulent dealings.
PT. INDO BHARAT RAYON is feasible for business transaction. But owing to
the economic condition n the country is in crisis, we recommend to have an
adequate collateral from the shareholders in dealing with any new loans.
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. |
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%)