MIRA INFORM REPORT

 

 

Report Date :           

04.07.2011

 

IDENTIFICATION DETAILS

 

Name :

P.T. MATAHARI SENTOSA JAYA

 

 

Registered Office :

Jl. Joyodikromo Kampung Hujung Rt.9, Rw.7, Leuwigajah, Cimahi, West Java

 

 

Country :

Turkey

 

 

Date of Incorporation :

19.10.1989

 

 

Com. Reg. No.:

No. AHU-AH.01.10-18359

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Integrated Textile Industry

 

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$ 4,600,000

Status :

Satisfactory

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Indonesia

b1

b1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 Bottom of Form

 

Correct Name of Company

 

P.T. MATAHARI SENTOSA JAYA

 

 

company Address

 

Head Office & Factory I

Jl. Joyodikromo Kampung Hujung Rt.9, Rw.7

Leuwigajah, Cimahi

West Java

Indonesia

Phone               - (62-22) 633 689 (Hunting)

Fax                   - (62-22) 636 689, 6045026

Land Area         - 16,200 sq. meters

Building Space  -   5,800 sq. meters

Region              - Industrial Zone

Status               - Rent

 

Factory II

Jl. Raya Batujajar No. 173

Desa Laksana Mekar

Padalarang, Bandung

West Java

Indonesia

Phone               - (62-21) 572 7301 (Hunting)

Fax                   - (62-21) 572 7302

Land Area         - 12,600 sq. meters

Building Space  -   6,500 sq. meters

Region              - Industrial Zone

Status               - Rent

 

 

Date of Incorporation

 

19 October 1989

 

                                  

Legal Form

 

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

                                                       


Company Reg.No.

 

The Ministry of Law and Human Rights

a. No. AHU-75869.AH.01.02.Tahun 2008

    Dated 20 October 2008

 

b. No. AHU-AH.01.10-18359

    Dated 21 July 2010

 

 

Company Status

 

Domestic Investment Company (PMDN)

           

Permit by the Government Department :

The Department of Finance 

NPWP No. 01.494.479.7-421.000

 

The Department of Industry and Trade

TDP No. 102411700418

 

The Investment Coordinating Board

- No. 71/I/PMDN/1990

  Dated 22 January 1990

- No. 252/II/PMDN/1997

  Dated 15 February 1997

 

Affiliated/Associated Company :

P.T. MATAHARI SENTOSA (Zipper Fastener Manufacturing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                   - Rp. 12,000,000,000.-

Issued Capital                         - Rp. 12,000,000,000.-

Paid up Capital                       - Rp. 12,000,000,000.-

 

Shareholders/Owners :

a. Mr. Sung Chung Yao                   - Rp. 3,900,000,000.- (32.5%)

   Address : Jl. Kamp. Hujung Kidul RT.009, RW.007

                   Cimahi, Bandung, West Java

                   Indonesia                      

b. Mrs. Sheao Yen Shin                   - Rp. 2,100,000,000.- (17.5%)

   Address : Jl. Kamp. Hujung Kidul RT.009, RW.007

                   Cimahi, Bandung, West Java

                   Indonesia                      

c. Mr. Sung Wey Min                       - Rp. 1,200,000,000.- (10.0%)

   Address : Jl. Kamp. Hujung Kidul RT.009, RW.007

                   Cimahi, Bandung, West Java

                   Indonesia                      

d. Mrs. Sung Wen Li Angela            - Rp. 1,200,000,000.- (10.0%)

   Address : Jl. Kamp. Hujung Kidul RT.009, RW.007

                   Cimahi, Bandung, West Java

                   Indonesia                      

e. Mrs. Sheao Hai He                       - Rp. 3,600,000,000.- (30.0%)

   Address : Jl. Kamp. Hujung Kidul RT.009, RW.007

                   Cimahi, Bandung, West Java

                   Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Integrated Textile Industry

 

Production Capacity :

a. Acrylic Yarns                         - 6,600 tons p.a.

b. Socks                                   - 3,650,000 dozens p.a.

c. Hats                                      -    234,000 dozens p.a.

d. Shawls                                  -    150,000 dozens p.a.

e. Gloves                                   -    178,800 dozens p.a.

f.  Yarn Pile Fabrics                   - 1.2 million meters p.a.

g. Sliver Pile Fabrics                  - 1.2 million meters p.a.

h. Yarns                                    - 3,200 tons p.a.

i.  Sweaters                               - 820,000 dozens p.a.

 

Total Investment :

a. Equity Capital                  - Rp. 12.0 billion

b. Loan Capital                    - Rp. 51.2 billion

c. Total Investment               - Rp. 63.2 billion

 

Started Operation :

October 1991

 

Brand Name :

MSJ

 

Technical Assistance :

None

 

Number of Employee :

1,200 persons                                  

 

Marketing Area :

a. Domestic    -   5%

b. Export        - 95%

 

Main Customers :

a. Oversea buyer in Japan, USA, Italy, United Kingdom, France and others

b. Department Stores and Traditional Markets

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BUSANA REMAJA AGRACIPTA

b. P.T. BINTANG ADI BUSANA

c. P.T. MASTERINDO JAYA ABADI

d. P.T. METRO GARMENT

 

e. P.T. UNGARAN SARI GARMENT

f.  P.T. LEADING GARMENT INDUSTRY

g. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. P.T. Bank CENTRAL ASIA Tbk

    Bandung Branch

    Jl. Asia Afrika No. 122-124

    Bandung, West Java

    Indonesia

 

b. P.T. Bank RAKYAT INDONESIA Tbk

    Bandung Branch

    Jl. Braga No. 18-18A

    Bandung, West Java

    Indonesia

 

Auditor :

Internal Auditor

           

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2007 – Rp. 230.0 billion

2008 – Rp. 255.0 billion

2009 – Rp. 280.0 billion

2010 – Rp. 320.0 billion

 

Net Profit (estimated) :

2007 – Rp.   8.0 billion

2008 – Rp.   8.9 billion

2009 – Rp.   9.8 billion

2010 – Rp. 11.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Sung Chung Yao

Directors                                   - a. Mr. Sung Wey Min

                                                  b. Mrs. Sung Wen Li Angela

                                                  c. Mrs. Sheao Hai He

                                                 

Board of Commissioner :

Commissioner                           - Mrs. Sheao Yen Shin

                                                           

Signatories :

President Director (Mr. Sung Chung Yao) or one of the Directors (Mr. Sung Wey Min, Mrs. Sung Wen Li Angela and Mrs. Sheao Hai He) which must be approved by the Board of Commissioner (Mrs. Sheao Yen Shin)

 

 

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$ 4,600,000.- on the 90 days of payments

 

 

OVERALL PERFORMANCE

 

The company was established in October 1989 with an authorized capital of Rp. 20,000,000.-, entirely was issued and paid up. The founding shareholders of P.T. MATAHARI SENTOSA JAYA (P.T. MSJ) are Mr. Sung Chung Yao, his younger brother Mr. Sung Yao Kwok, Mrs. Sheao Yen Shin (wife of Mr. Sung Chung Yao) and Mrs. Sheao Ai Shin (wife of Mr. Sung Yao Kwok), a Taiwan Chinese origins Indonesian business family. In 1992 the authorized capital was raised to Rp. 6,000,000,000.-, issued and paid up capital to Rp 2,100,000,000.-. In December 1998, its authorized capital of Rp. 6,000,000,000.- has been wholly issued and paid-up.   In October 2008, the authorized capital was raised again to Rp. 12,000,000,000.- entirely was issued and fully paid up.  Since that time, shareholders of the company are Mr. Sung Chung Yao (32.5%), Mrs. Sheao Yen Shin (17.5%), Mr. Sung Wey Min (10%), Mrs. Sung Wen Li Anela (10%) and Mrs. Sheao Hai He (30%).  The deed of amendment was approved by the Ministry of Law and Human Right in its Decision Letter No.AHU-75869.AH.01.02.TH.2008, dated October 20, 2008 and No. AHU-AH.01.10-18359 dated July 21, 2010.

 

We observe that Mr. Sung Chung Yao and Mrs. Sheao Yen Shin is also business stakes owner of P.T. MATAHARI SENTOSA engaged in the field of zipper fastener manufacturing which plants located at Jl. Joyodikromo No. 42, Bandung, West Java.

 

P.T. MSJ has been in operation since October1991 dealing with textile industry. Its plant is located at Jalan Joyodikromo No. 42, Kampung Hujung, Cimahi, West Java. The plant has frequently been expanded and until the early 1996 it produced Acrylic Yarns, Socks, Hats, Shawls, Gloves, Yarn Pile Fabrics and Silver Pile Fabrics.  In mid-1996 the company took over P.T. HENINDO's plant located at Jalan Raya Batujajar No. 173, Desa Laksana Mekar, Padalarang, Bandung, West Java.  The plant produces sweater with a production capacity of 120,000 dozens per year.  In December 1997 the company acquired an expansion permit to produce 700,000 dozen sweaters per year.   Some 95% of the products will be exported to Japan, USA, Italy, United Kingdom, Germany, France and other countries, while the rest for local market.  P.T. MSJ is classified as a large sized company of its kind in the country of which the operation has been growing slowly in the last three years.

 

 

Intriguing Issue

In March 2010, Trade Unions of PT. MSJ reported the violation conducted by the company to the Regional Representative Council’s Commission IV Cimahi, Bandung. Robin Panjaitan, Coordinator of Regional Representative Council’s  Commission IV for Labor Cimahi said that the violation was related to Social Security deduction (worker social securyt), joint work labor agreement (PKB), particularly regarding the rights for uniform, and the rights for compensation for 37 employees who resigned. However, the management of PT. MSJ refused to pay severance pay for the 37 workers who resigned in accordance with the PKB, the reason was it did  not have money. The company only agreed to pay 50 percent of the severance pay that should be paid. The amount of severance pay each worker varied between Rp 3 million to $ 8 million, depending on the service period of the workers concerned.

 

 

 

 

 

Deddy Supardi, Head of Industrial Relations Section  at the Population and Manpower  Agency of Cimahi said that the rejection of PT. MJS can not be categorized as a violation, but as a breach of contract in the PKB. This case belonged  to the private domain so its completion can be taken the Industrial Relations Disputes Court (PPHI). Widodo, Chairman of Work Unit Board of PT. MJS regreted  the attitude as it  means the labor who resigned at least should wait for  two years to get that insignificant amount of severance money. That too if PPHI wins workers lawsuit. Since then, this case was never referred.

 

Generally, demand for textile and textile products, including  garment, polyester textured yarn, finished fabrics, textile chemicals and raw materials has been fluctuating in the last five years.  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 to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393,400 tons (US$ 5,735.6 million) in 2009 and rose again to 445,200 tons (US$ 6,598.0 million) in 2010.

 

  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 1,477.800 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 declined to 1,312,200 tons (US$ 4,127.9 million) in 2008 to 1,369,600 tons (US$ 3,602.8 million) in 2009 and rose again to 1,525,900 tons (US$ 4,721.8 million) in 2010.

 

The export volume and value of the national TPT products in 2002 to 2010 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

2010

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

3,887.2

4,037.9

4,351.9

4,967.0

5,608.1

5,712.9

6,092.2

5,735.6

6,598.0

1,425.9

1,307.5

1,300.4

1,427.3

1,477.8

1,473.6

1,312.2

1,369.6

1,525.9

3,075.9

3,064.6

3,354.6

3,704.0

3,908.6

4,178.0

4,127.9

3,602.8

4,721.8

Source:  Central Bureau of Statistic     

 

Until this time P.T.  MSJ has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. P.T. MSJ's management adopts very reclusive attitude towards outsiders and rejected to unveil its financial condition but we estimated that its operation in 2008 posted a total sales turnover of Rp. 255.0 billion increased to Rp. 280.0 billion in 2009 to Rp. 32.0 billion in 2010 and projected to continue on rising by about 8% in 2011. We estimated that P.T. MSJ's operation in 2010 yielded a total net profit of about Rp. 11.2 billion with a total networth of about Rp. 120.0 billion. P.T. MSJ’s financial condition is supported by less strong financially Indonesian businessmen of Taiwan Chinese extraction.

 

P.T. MSJ's management is led by Mr. Sung Chung Yao (74) with 28 years experience in textile manufacturing and trading.  In daily activities, he is assisted by three directors namely Mr. Sung Wey Min (42), Mrs. Sung Wen Li Angela (38), both are son and daughter of Mr. Sung Chung Yo and Mrs. Sheao Hai He (57).  The management is also handled by well-experienced by professional managers in the above business having wide relation with home and overseas private businessmen as well as with government sectors.  As far as business is concerned the management of P.T. MSJ has never involved in any fraudulent dealings.

 

P.T. MATAHARI SENTOSA JAYA is considered good for normal business transaction. Therefore, labor issue in this company has not been good and the risk of mass strike then we recommend to be careful if going to do business cooperation with this company.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.59

UK Pound

1

Rs.71.75

Euro

1

Rs.64.80

 

 

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

----

NB

New Business

----

 

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.