MIRA INFORM REPORT

 

 

Report Date :

19.02.2011

 

IDENTIFICATION DETAILS

 

Name :

P.T. DAEHAN GLOBAL

 

 

Registered Office :

Jalan Mayor Oking No. 112 B, Cibinong, Bogor 16918, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

12.03.1999

 

 

Com. Reg. No.:

No. AHU-36777.AH.01.02.TH.2008

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Garment Manufacturing

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

US$ 3,900,000

 

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Indonesia

b1

b1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Name of Company

 

P.T. DAEHAN GLOBAL

 

 

company Address

 

Head Office & Factory

Jalan Mayor Oking No. 112 B

Cibinong, Bogor 16918

West Java

Indonesia

Phones             - (62-21) 875 3626, 875 3627

Fax                   - (62-21) 875 3708

E-mail               - info@daehan.co.id

Website            - http://www.daehanglobal.com

Land Area         - 15,000 sq. meters

Building Space  - 12,500 sq. meters

Region              - Commercial Building

Status               - Rent

 

 

Date of Incorporation

 

12 March 1999

                                  

 

Legal Form

 

P.T. (Perseroan Terbatas) or Limited Liability Company

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. C-44 HT.01.01.TH.2000

  Dated 3 January 2000

- No. AHU-36777.AH.01.02.TH.2008

  Dated 30 June 2008

 

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.882.519.0-057.000

 

The Capital Investment Coordinating Board

No. 826/III/PMA/2008

Dated 21 May 2008

 

 

Related Company

 

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 3,960,000.-

Issued Capital                                  : US$ 3,960,000.-

Paid up Capital                                : US$ 3,960,000.-

 

Shareholders/Owners :

a. Mr. Boo Hyung Lee                                            - US$ 3,762,000.-

    Address :

                    South Korea      

b. Mrs. Mi Hyun Lee                                               - US$    198,000.-

    Address :

South Korea

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Garment Manufacturing

 

Production Capacity :

Garments (Jackets, Trousers, Shirts,

Skirts, Pants)                                       -320,000 dozens p.a.  

 

Total Investment :

a.   Equity Capital                            - US$   4.0 million

b.   Loan Capital                              - US$   6.0 million

c.   Total Investment                         - US$ 10.0 million

 

Started Operation :

2,000

 

Brand Name :

Daehan Global

 

Technical Assistance :

None

 

Number of Employee :

2,500 persons                                 

 

Marketing Area :

Export    - 100%

 

Main Customer :

Buyers in the USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. AARTI JAYA

b. P.T. GRAHA NUSA SENI INDAH

c. P.T. MASTERINDO JAYA ABADI

d. P.T. METRO EXIM INDONUSA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank KEB INDONESIA

      Wisma GKBI

      Jalan Jend. Sudirman Kav. 28

      Jakarta Pusat

      Indonesia

b.   P.T. Bank WOORI INDONESIA

      Indonesia Stock Exchange

      Jalan Jend. Sudirman Kav. 52-53

      Jakarta Selatan

      Indonesia

 

Auditor :

Internal Auditor

           

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2008 – Rp. 250.0 billion

2009 – Rp. 270.0 billion

2010 – Rp. 300.0 billion

 

Net Profit (estimated) :

2008 – Rp. 17.5 billion

2009 – Rp. 19.0 billion

2010 – Rp. 22.5 billion

           

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Boo Hyung Lee

Director                                           - Mrs. Mi Hyun Lee

                                                                                                           

Board of Commissioners :

Commissioner                                 - Mrs. Na Ok Lee Han

                                                                                                           

Signatories :

President Director (Mr. Boo Hyung Lee) or the Director (Mrs. Mi Hyun Lee) which must be approved by Board of Commissioner

 

 

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$ 3,900,000 on 90 days D/A

 

 

OVERALL PERFORMANCE

 

P.T. DAEHAN GLOBAL (P.T. DG) was incorporated in Bogor, West Java on March 12, 1999 with the authorized capital of US$ 600,000 issued capital of US$ 100,000 entirely paid up. The company was founded by Mr. Boo Hyung Lee and his wife Mrs. Mi Hyun Lee, both are of South Korea as foreign partners. The company notary deed had been changed frequently. In March 2001 the issued capital was raised to US$ 600,000 entirely paid up. The latest in May 2008 the authorized capital was increased to US$ 3,960,000 wholly issued and paid up. With this development the composition of its shareholders has been changed to become Mr. Boo Hyung Lee (95%) and his wife Mrs. Mi Hyun Lee (5%). The latest revision of notary deed was made by Mr. Syahrial, SH., a public notary in South Jakarta and approved by the Ministry of Law and Human Rights in its decision letter No. AHU-36777.AH.01.02.TH.2008 dated June 30, 2008.

 

P.T. DG was established in the frame works of Foreign Investment (PMA) company facility issued by the Capital Investment Coordinating Board (BKPM) to deal with garment manufacturing. The plant has been operating since 2000 by manages a plant unit being located at Jalan Mayor Oking No. 112 B, Cibinong, Bogor, West Java standing on a land of 15,000 square meters. The plant has annual production capacity of 320,000 dozens of garments (jackets, trousers, shirts, skirts, pants) per annum. The development of the plant has absorbed an investment of US$ 10.0 million coming from own capital of US$ 4.0 million and the rest from loan. A staff of the company said that the products of the company are wholly exported to several European countries, South Korea, the USA and others countries based on the buyers’ orders. However, currently the whole products exported to the USA based on job orders. The whole garment produces with various brands such as GAP, AMERICAN EAGLE, ABERCOROMBIE & FITCH, ZARA, OLD NAVY, AEO, etc. We see that P.T. DG' operation has been running smoothly and growing in the last three years. 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).

 

The demand for textile chemicals tended to be fluctuating within the last five years in line with the fluctuating of Indonesian textile industry in general. The country’s garment industry is facing serious marketing problem not only in the country but also abroad. According to the Central Bureau of Statistics (BPS) the Indonesian garments export in 2002 amounted to 333,100 tons (US$ 3,887.2 million) 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 to 399,600 tons (US$ 5,608.1 million) in 2006, to 399,800 tons (US$ 5,712.9 million) in 2007 and to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393.400 tons (US$ 5,735.6 million) in 2009. The Indonesia textile products export in 2002 amounted to 1,425.9 tons (US$ 3,075.9 million) to 1,307.5 tons (US$ 3,064.6 million) in 2003 to 1,300.4 tons (US$ 3,354.6 million) in 2004 to 1,427.3 tons (US$ 3,704.0 million) in 2005 to 1,477.8 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 and to 1,312.2 tons (US$ 4,127.9 million) in 2008 rose to 1,369.6 tons (US$ 3,602.8 million) in 2009.

 

The domestic textile producers are pessimism the textile export in 2009 could match the export numbers in 2008. The blow of the global economic crisis is resulted in the reduced of demand from the export destination countries like the United States (U.S.), Japan, and European Union region. The Export Textiles and the Textile Products (TPT) in 2009 is predicted to fall to 10.2 percent compared to the last year. In the year 2008 the export value reached 10.8 billion US dollars. While this year’s the exports expected fall into US$ 9.7 billion. The Chairman of the Indonesian Textile Association (API), Mr. Benny Soetrisno said that the decline in global purchasing power caused of the demand in the Indonesian textile products could not be able to grow as tight as 2008. The export volume and value of the national TPT products in 2002 to 2009 are pictured on the following table.

 

      Year

Garment

Textile Products

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

3,887.2

4,037.9

4,351.9

4,967.0

5,608.1

5,712.9

6,092.2

5,735.6

1,425.9

1,307.5

1,300.4

1,427.3

1,477.8

1,473.6

1,312.2

1,369.6

3,075.9

3,064.6

3,354.6

3,704.0

3,908.6

4,178.0

4,127.9

3,602.8

Source: Central Bureau of Statistic     

 

Until this time P.T. DG has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. DGI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2008 amounted to Rp. 250.0 billion rose to Rp. 270.0 billion in 2009 increased to Rp. 300.0 billion in 2010 and projected to go on rising by at least 5% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 22.5 billion and the company has an estimated total networth of at least Rp. 15.0 billion. So far, we did not heard 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 P.T. DG is led by Mr. Boo Hyung Lee (54) a businessman and professional manager of South Korea with experience in garment manufacturing. Daily activity he is assisted by his wife Mrs. Mi Hyun Lee (52) as director. The company's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. DAEHAN GLOBAL is sufficiently fairly good for business transaction.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.18

UK Pound

1

Rs.73.04

Euro

1

Rs.61.43

 

 

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

Capability to overcome financial difficulties seems comparatively below average.

 

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

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.