MIRA INFORM REPORT

 

 

Report Date :           

18.10.2011

 

IDENTIFICATION DETAILS

 

Name :

P.T. VELVET TEKSTIL INDONESIA

 

 

Registered Office :

Jalan Raya Laswi No. 22, Desa Padaulun, Majalaya, Bandung, West Java

 

 

Country :

Indonesia

 

 

Year of Establishment :

2006

 

 

Com. Reg. No.:

No. AHU-08717.AH.01.02.Tahun 2009

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Praying Carpet (Sajadah) 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$ 210,000

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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. VELVET TEKSTIL INDONESIA

 

 

company Address

 

Head Office & Factory

Jalan Raya Laswi No. 22

Desa Padaulun, Majalaya

Bandung

West Java

Indonesia

Phones             - (62-22) 5956347, 5957347

Fax                   - (62-22) 5956387

E-mail               - shamsony@hotmail.com

Land Area         - 8,700 sq. meters

Building Area     - 6,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

2006

 

                                  

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

a. No. AHU-AH.01.10-23019

    Dated 4 November 2008

b. No. AHU-08717.AH.01.02.Tahun 2009

    Dated 20 March 2009

Company Status

 

Private National Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 02.544.676.6-421.000

 

 

Affiliated/Associated Companies

 

a. PT. AARTI JAYA (Garment, Gift and Hajj Equipment Manufacturing)

b. BURSA SAJADAH SHOP (Trading of Hajj Equipment and Accessories)

c. AROPAH SHOP (Trading and Retail of Gifts)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - Rp. 5,000,000,000.-

Issued Capital                                  - Rp. 5,000,000,000.-

Paid up Capital                                - Rp. 5,000,000,000.-

 

Shareholders/Owners :

a. Mr. Syahir Karim Vasandani                              - Rp. 2,750,000,000.- (55.00%)

    Address : Jl. Leuwi Sari Raya No. 34

                    Kebon Lega, Bandung

                    West Java

                    Indonesia

b. Mr. Sham Sony Syahir Karim Vasandani          - Rp. 1,584,000,000.- (31.68%)

    Address : Address : Jl. Leuwi Sari Raya No. 34

                    Kebon Lega, Bandung

                    West Java

                    Indonesia

c. Mr. Heera Syahir Karim                                     - Rp.    666,000,000.- (13.32%)

    Address : Address : Jl. Leuwi Sari Raya No. 34

                    Kebon Lega, Bandung

                    West Java

                    Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business:

Praying Carpet (Sajadah) Manufacturing

 

Production Capacity :

Praying Carpets                               - 26,000 dozen per month

 

Total Investment :

Owned Capital                                 - Rp. 5.0 billion

 

Started Operation :

2006

 

Brand Name :

VELTEKSA

 

Technical Assistance :

None

 

Number of Employee :

132 persons

 

Marketing Area :

Local     - 100%

 

Main Customer :

Traditional Market

 

Market Situation :

Very Competitive

 

Main Competitors :

Home Industries

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Banker :

P.T. Bank MANDIRI Tbk

Jalan Asia Afrika No. 127

Bandung, West Java

Indonesia

 

Auditor :

Internal Auditor

           

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2008 – Rp. 32.0 billion

2009 – Rp. 41.0 billion

2010 – Rp. 48.0 billion

2011 – Rp. 27.5 billion (January – June)

 

Net Profit (estimated) :

2008 – Rp. 1.5 billion

2009 – Rp. 2.0 billion

2010 – Rp. 2.4 billion

2011 – Rp. 1.3 billion (January – June)

           

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Sham Sony Syahir Karim Vasandani

 

Board of Commissioners :

Commissioner                                 - Mr. Syahir Karim Vasandani

 

Signatories :

Director (Mr. Sham Sony Syahir Karim Vasandani) 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$ 210,000 on 90 days D/A

 

 

OVERALL PERFORMANCE

 

P.T. VELVET TEKSTIL INDONESIA (P.T. VTI) was established in Bandung, West Java, in 2006 with the authorized capital of Rp. 1,200,000,000 issued capital of Rp. 200,000,000 fully and paid up. The founding shareholders of the company are Mr. Syahir Karim Vasandani with his sons Mr. Sham Sony Syahir Karim Vasandani and Mr. Heera Syahir Karim, they are Indonesian business family of Indian origins. The company notary deed has been changed and in March 2008 the issued capital was raised to Rp. 300,000,000 fully and paid up. The deed of amendment was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-23019, dated November 4, 2008.   Latest, in December 2008, the authorized capital was raised again to Rp. 5,000,000,000.- entirely was issued and fully paid up.  The latest deed of amendment was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-08717.AH.01.02.Tahun 2009 dated March 20, 2009.  No changes have been effected in term of its shareholding composition and capital structures to date.

           

P.T. VTI started with operating since 2006 to deal with praying carpet (sajadah) manufacturing by manages a plant located at Jalan Raya Laswi No. 22, Padaulun, Majalaya, Bandung, West Java standing on a land of 8,700 sq. meters.  The construction of the plant has absorbed an investment of Rp. 5.0 billion originally come from owned capital.  At present, the plant produces of praying carpet (sajadah) of 26,000 dozen per month. The whole products marketed in the country to various traditional markets through out Indonesia by using VELTEKSA brand.  Most of raw material like yarns and fabrics uses local products. Mrs. Lita, the company staff production explained that the company also produces praying carpet under job orders from their buyers in the country and also from it affiliated company Bursa Sajadah Shop and various Moslem textile shops and Mosque in the country.  We observed that P.T. VTI is classified as a small sized company of its kind in the country of which the operation has been growing in the last three years.

 

Generally, demand for textile and textile product, including velvet, georgette, denim, praying carpet and garments has been fluctuating in the last five years.  According to the Central Bureau of Statistics (BPS) that 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. VTI 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 2008 amounted to Rp. 32.0 billion increased to Rp. 41.0 billion in 2009 rose again to Rp. 48.0 billion in 2010 and projected to go on rising by at least 10% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 2.4 billion and the company has an estimated total networth of at least Rp. 16.0 billion. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of P.T. VTI is led by Mr. Sham Sony Syahir Karim Vasandani (28) a young businessman with experience for 5 years in praying carpet (sajadah) manufacturing.  But, we believed that the prime-mover of the company is Mr. Syahir Karim Vasandani (62), a businessman with more than 20 years experience in praying carpet and velvet manufacturing and trading. The management is handled by experienced staff in this business, having maintained a wide business relation with private businessmen at home and abroad as well as with government sectors. 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.

 

P.T. VELVET TEKSTIL INDONESIA is sufficiently fairly good for business transaction.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.89

UK Pound

1

Rs.77.31

Euro

1

Rs.67.79

 

 

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%)

 

 

 

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