MIRA
INFORM REPORT
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Report Date : |
07.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
C.V. FORTUNE SHOES |
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Registered Office : |
Jalan Sriwijaya No. 3/1-B, Bandung 40255, West Java |
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Country : |
Indonesia |
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Date of Incorporation : |
1982 |
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Legal Form : |
Partnership with Sleeping Partner |
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Line of Business : |
Leather 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$ 1.8 million |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name of company
C.V.
FORTUNE SHOES
A d d r e s s
Head Office & Factory
Jalan Sriwijaya
No. 3/1-B
Bandung 40255
West Java
Indonesia
Phones - (62-22) 5200123,
5202300
Fax. - (62-22) 5201616
Land Area - 3,500 sq.
meters
Building Space - 2,200 sq. meters
Region - Industrial
Zone
Status - Owned
Branch
and Warehouse
Jalan Soekartno
Hatta No. 495
Bandung 40286
West Java
Indonesia
Phone - (62-22) 7312050
Fax. - (62-22) 7310282
Land Area - 2,200 sq.
meters
Building Space - 1,600 sq. meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation
1982
Legal Form
C.V.
(Commanditaire Vennootschap) or Partnership with sleeping partner
Company Reg. No.
The Ministry of
Law and Human Rights
Not Required
Company Status
National Private Company
Permit by the Government
Department :
The Department of Finance
NPWP No. 01.555.232.6-424.000
Related Company
:
Not Available
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized
Capital (estimated) - Rp. 12.0 billion
Shareholders/Owners :
a. Mr. Dede
Chandra as Active Parnter -
70%
Address : Jl. Soekarno Hatta No. 495
Bandung, West Java
Indonesia
b. Mrs. Feleria
Herdani Widjaja as Silent Partner -
30%
Address : Jl. Soekarno Hatta NO. 495
Bandung, West Java
Indonesia
BUSINESS ACTIVITIES
Lines of Business:
Leather Shoe Manufacturing
Production
Capacity :
Men Leather Shoes - 720,000
pairs p.a.
Total Investment :
Owned Capital -
Rp. 40.0 billion
Started Operation :
1982
Brand Name :
GEORGE ARMANI,
ANDRW VALLENTINO and Others
Technical Assistance :
None
Number of Employee :
610 persons
Marketing Area :
Domestic
(Local) - 25 %
Export - 75%
Main Customers :
a. Overseas buyer in Singapore, Italy, Germany, etc.
b. Shoe wholesaler in Jakarta, Surabaya and Medan
Market Situation :
Very Competitive
Main Competitors :
a. P.T. PAKALOLO
SHOES INDUSTRY
b. P.T. PABRIK
SEPATU BATA
c. P.T. HENGTRACO
PROTECSINDO
d. C.V. GRAND SHOE
INDUSTRY
Business Trend :
Growing Slowly
BANKER, AUDITOR & LITIGATION
B a n k e r
:
P.T. Bank CENTRAL
ASIA Tbk
Jalan Asia Afrika No. 112-114
Bandung, West Java
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2005 – Rp. 120.0
billion
2006 – Rp. 130.0
billion
2007 – Rp. 142.0
billion
2008 – Rp. 77.0 billion (as of 30 June)
Net Profit
(estimated) :
2005 – Rp. 9.6 billion
2006 – Rp. 10.5
billion
2007 – Rp. 11.8
billion
2008 – Rp. 6.2 billion (as of 30 June)
Payment Manner :
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of
Management :
Director
- Mr. Dede Chandra
Board of
Commissioner :
Commissioner - Mrs. Feleria Herdani Widjaja
Signatories
:
Director (Mr.
Dede Chandra) which must be approved by the Board of Commissioner (Mrs. Feleria
Herdani Widjaja)
CAPABILITIES
Management
Capability :
G o o d
Business Morality
:
G o o d
Credit Risk :
Below average
Credit
Recommendation :
Credit can be proceeded normally
Proposed Credit Limit :
Moderate amount
Maximum Credit
Limit :
US$ 1.8 million on 90 days D/A
OVERALL PERFOMANCE
C.V. FORTUNE SHOES (C.V. FS) was established in Bandung, West Java in
1982’s with the legal status C.V. (Commanditaire Vennootschap) or partnership
with sleeping partner. The founder and
owners of the company are Mr. Dede Chandra as active partner and his wife Mrs.
Feleria Herdani Widjaja as sleeping partner.
As other companies with the legal status C.V., the capital of the
company is not stated in the deed of establishment. However, in line with its growing business activities were
estimated that the capital of C.V. FS at present amounted to at least Rp. 12.0
billion. So far, we did not hear that
the founders and owners of C.V. FS have other business within and outside the
business.
C.V. FS is engaged in leather shoe manufacturing industry operating as
from 1982 by managing and developing a plant located at Jalan Sriwijaya No.
3/1B, Bandung, West Java – Indonesia.
The plant is at present producing men leather shoes with production
capacity of 720,000 pairs per annum.
Some 75% of the shoes produced by the company is ordered by customers in
Singapore, Italy, Germany and others under brands of GEORGE ARMANI, ANDREW
VALLENTINO and others.
The foreign customers provide brands, types and models of their ordered
shoes. A part of basic materials is
imported from several counties and the rest is covered by local products. We observe that the operation of C.V. FS has
been growing slowly in the last five years in line with the lack of basic
materials in the country. The
government policy in industrial sectors supporting shoe basic materials seems
to burden shoe producers. This
condition is in line with the tightening of imported raw leathers and the
eagerness of raw leathers producer to export their products. Besides, the increasing fuel price has
brought bad impact to various industrial sectors particularly shoe industry in
the country.
According to data from the Indonesian Shoe Association that the export
value of national shoe products had been fluctuating in the last five years up
to end 2007. In 2007, the shoes
association projected that the export value of national shoes product amounted
to US$ 1,637.96 million. Today, there
is lustrous distribution of imported shoes from China illegally entering the
domestic markets. The lustrous
distribution of imported shoes above seems to burden shoes producers and
retailers because the sales of imported shoes products are cheaper than local
shoes products. The local shoes
industries is estimated to be fluctuating at least up to next year. Many products and similar companies
operation in the country have elicited tight competition in shoes business
sector. However, the business position
of C.V. FS is favorable in line with the growing operation networks and wide
product marketing coverage.
Until this time C.V. FS 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 2005 amounted to Rp.
120.0 billion increased to Rp. 130.0 billion in 2006 and rose again to Rp.
142.0 billion in 2007. The operation of
the company in 2007 is estimated to have gained a profit of at least Rp. 11.8
billion with an total networth Rp. 60.0 billion It is projected that total sales turnover of the company will
increase at least 8% until 2008.
We observe that C.V. FS is supported by financially fairly strong behind
it. So far, we did not hear that the
company having been black listed by the Central Bank (Bank Indonesia). The
company usually pays its debts punctually to suppliers.
The management of C.V. FS is headed by Mr. Dede Chandra (58), a
businessman with more than 25 years of experience in leather shoes
manufacturing. 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 did not hear 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.
We believed that C.V. FORTUNE SHOES 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.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.46 |
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UK Pound |
1 |
Rs.83.37 |
|
Euro |
1 |
Rs.64.46 |
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%)