MIRA INFORM REPORT

 

 

Report Date :           

28.03.2011

 

IDENTIFICATION DETAILS

 

Name :

NIRMALA COLLECTION

 

 

Registered Office :

Pasar Tanah Abang Ruko Block F No. 20, Pasar Tanah, Jakarta Pusat

 

 

Country :

Indonesia

 

 

Year of Establishment :

1998

 

 

Com. Reg. No.:

Not Available

 

 

Legal Form :

Sole Proprietary Concern

 

 

Line of Business :

Trading of Garment and Textile Products

 

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$ 48,500

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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

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

 

NIRMALA COLLECTION

 

concern Address

 

Head Office

Pasar Tanah Abang Ruko Block F No. 20

Pasar Tanah

Jakarta Pusat

Indonesia

Phone               - (62-21) 3148719

Mobile Phone    - 0815 9319499 (Mr. Dino, Marketing)

Building Area     - 2 storey

Office Space      - 20 sq. meters

Region              - Pasar Tanah Abang Business District

Status               - Rent

 

 

Date of Incorporation

 

1998’s                                                                   

     

 

Legal Form

 

Sole Proprietary Concern 

 

 

Concern Reg. No.

 

Not Required

 

 

Concern Status 

 

Private National Company

 

 

Permit by the Government Department

 

Not Available

 

Related Concern

 

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 - Rp. 450 million

 

Owners :

Mr. Rachmat                                   - 100%

   

 

BUSINESS ACTIVITIES

                             

Lines of Business:                         

Trading of Garment and Textile Products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1998’s

 

Brand Name :

None

 

Technical Assistance :

None

 

Number of Employee :

3 persons                                       

 

Marketing Area :

Local    - 100%

 

Main Customers :

End users, traditional market etc,

 

Market Situation :

Very Competitive

Main Competitors :

a. INDAH JAYA Toko

b. IRA BUSANA

c. ISTANA BUSANA

d. JB COLLECTION

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Banker  :

P.T. Bank CENTRAL ASIA Tbk

Pasar Tanah Abang

Jakarta Pusat

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2008 – Rp. 4.8 billion

2009 – Rp. 5.2 billion

2010 – Rp. 5.4 billion

 

Net Profit (estimated) :

2008 – Rp. 0.8 billion

2009 – Rp. 0.8 billion

2010 – Rp. 0.9 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Rachmat

 

Board of Commissioners :

None

                                                               

Signatories :

Director (Mr. Rachmat) in only the authorized person to sign the loan on behalf of the company

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Above Average

 

Credit Recommendation :

Credit should be extended under guarantee

 

Proposed Credit Limit  :

C.O.D. To small amount

 

Maximum Credit Limit :

US$ 48,500 on the 90 days of payments

 

 

OVERALL PERFORMANCE

 

NIRMALA COLLECTION (NC) was established in Jakarta in 1998’s with a status of Sole Proprietary Company. Founder and owner of the concern is Mr. Rachmat, an indigenous businessman. Being as Sole Proprietary Company, the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, the concern has own capital of about Rp. 450 million and it will be rising in line with the progress of its business operation.

NIRMALA COLLECTION (NC) has been in operation since 1998’s in trading and distribution garment and textile products of domestic and import made. Mr. Rachmat the owner of NC disclosed that the above merchandising goods are imported from India, Italy, United Kingdom, Spain and others. He also disclosed that wool imported from Italy with DORMIN, GUCCI, Lee Contee and other brands. Besides, they also purchased from various textile manufacturing plants in Jakarta and Bandung, West Java. He went on to say that the above merchandising goods like shirts and pants are marketed through various garment and textile shops, and other individuals in Jakarta and its surroundings. The operation of NC has been growing slowly in the last three years.

 

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. 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 NC has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of NC is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the concern in 2008 amounted to Rp. 4.8 billion rose to Rp. 5.2 billion in 2009 increased to Rp. 5.4 billion in 2010 and projected to go on rising by at least 4% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 0.9 billion and the concern has an estimated total networth of at least Rp. 1.0 billion. So far, we did not heard that the concern having been black listed by the Central Bank (Bank Indonesia). The concern usually pays its debts punctually to suppliers.  

 

The concern is led out by Mr. Rachmat (48), a businessman who experienced for more than 15 years in the field of trading, garment and textile products. 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 concern 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. NIRMALA COLLECTION is sufficiently fairly good for business transaction.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.65

UK Pound

1

Rs.71.91

Euro

1

Rs.63.28

 

 

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.