MIRA INFORM REPORT
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Report Date : |
09.09.2011 |
IDENTIFICATION DETAILS
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Name : |
P.T. EAGLE GLOVE INDONESIA |
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Formerly Known As : |
P.T. KENNY JAYA GLOVE |
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Registered Office : |
Desa Bayen,
Purwomartani, Kalasan, Sleman, 55571, Yogyakarta |
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Country : |
Indonesia |
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Date of Incorporation : |
03.03.1994 |
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Com. Reg. No.: |
No. C-22073
HT.01.04.TH.2003 |
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Legal Form : |
Limited
Liability Company |
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Line of Business : |
Hand Gloved
Manufacturing |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 407,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Usually Correct |
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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
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Indonesia |
b1 |
b1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Name of Company
P.T. EAGLE GLOVE INDONESIA
company Address
Head Office &
Factory
Desa Bayen,
Purwomartani
Kalasan, Sleman,
55571
Yogyakarta
Indonesia
Phones -
(62-274) 498411, 498412, 498413, 491645, 491646, 491647
Fax - (62-274) 497263
E-mail - kimds@eagleyk.com
Website - http://www.eagleyk.com
Land Area - 5,804 sq.
meters
Building Space - 2,408 sq. meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation
a. 3 March 1994 as P.T. SEUNGIL BINTANG MITRA
b. 2 September 1996 as P.T. KENNY JAYA GLOVE
c. 18 October 2001 as P.T. EAGLE GLOVE INDONESIA
Legal Form
P.T. (Perseroan
Terbatas) or Limited Liability Company
Company Reg. No.
The Ministry of Law and Human Rights
- No. C2-9867.HT.01.01.TH.95
Dated 8 August 1995
- No. C-22073 HT.01.04.TH.2003
Dated 16 September 2003
Company Status
Foreign
Investment (PMA) Company
Permit by the Government
Department
The Department of Finance
NPWP No.
01.653.572.6-541.001
The Department of Industry and Trade
- TDP No. 120211900605
Dated 3 November 2003
- No. 462/T/Industri/1998
Dated 18 September 1998
The Capital Investment Coordinating Board
- No. 67/V/PMA/1996
Dated 14 August 1996
- No. 945/III/PMA/2001
Dated 19 July 2001
Related Company
None
CAPITAL AND OWNERSHIP
Capital
Structure :
Authorized
Capital : Rp.
2,550,000,000.-
Issued Capital : Rp.
2,550,000,000.-
Paid up Capital : Rp.
2,550,000,000.-
Shareholders/Owners
:
a. GOLDEN BALI INVEST LIMITED -
Rp. 1,275,000,000.-
Address : Daewoo Heang
Shin-Dong
Tuckyang-Ku,
Koyang Shi, Seoul
South Korea
b. Mr. Kim Dong Sun -
Rp. 1,155,000,000.-
Address : Jl. Demangan Baru No. 14
Yogyakarta
Indonesia
c. Mr. Kim Young Woo -
Rp. 120,000,000.-
Address : Daewoo Heang
Shin-Dong
Tuckyang-Ku,
Koyang Shi, Seoul
South Korea
BUSINESS ACTIVITIES
Lines of
Business :
Hand Gloved
Manufacturing
Production
Capacity :
Hand Gloves - 5,500,000
pieces p.a.
Total
Investment :
a. Equity Capital - Rp. 2.5 billion
b. Loan Capital -
Rp. 2.0 billion
c. Total Investment - Rp. 4.5 billion
Started
Operation :
1995
Brand Name :
Eagle Glove
Indonesia
Technical
Assistance :
Golden Bali
Invest Limited, South Korea
Number of
Employee :
367 persons
Marketing Area
:
Export - 100%
Main Customer
:
Buyers in Europe Union
and the USA
Market
Situation :
Very Competitive
Main
Competitors :
a. P.T. ARISTA LATINDO INDUSTRIAL LTD.
b. P.T. DUNIA SAFTINDO
c. P.T. LAXINDO UTAMA
d. P.T. WRP BUANA MULTICORPORA
e. Etc.
Business Trend
:
Growing
BANKER, AUDITOR & LITIGATION
Bankers :
a. P.T. Bank WOORI INDONESIA
Jakarta Stock Exchange Building 16th
Floor
Jalan Jend. Sudirman Kav. 52-53
Jakarta
Selatan
Indonesia
b. P.T. Bank KEB INDONESIA
Wisma GKBI
Jalan Jend.
Sudirman No. 28
Jakarta Pusat
c. P.T. Bank DANAMON INDONESIA Tbk
Yogyakarta Main Branch
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation
record in our database
FINANCIAL FIGURE
Annual Sales
(estimated) :
2008 – Rp. 27.0
billion
2009 – Rp. 29.0
billion
2010 – Rp. 31.0
billion
Net Profit
(estimated) :
2008 – Rp. 1.9
billion
2009 – Rp. 2.2
billion
2010 – Rp. 2.5
billion
Payment Manner
:
Average
Financial
Comments :
Satisfactory
KEY EXECUTIVES
Board of Management :
President Director - Mr. Kim Dong Sun
Directors -
a. Mr. Kim Young Woo
b. Mr. Lee Choong Ryul
c. Mr. Song Jang Euy
General Manager -
Mr. Min Joon Peter Kim
Board of Commissioners :
President Commissioner -
Mrs. Seok Myeong Ja
Commissioner -
Mr. Kim Hee Young
Signatories :
President Director (Mr.
Kim Dong Sun) or one of the Directors (Mr. Kim Young Woo, Mr. Lee Choong Ryul
or Mr. Song Jang Euy) 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$ 407,000 on 90
days D/A
OVERALL PERFORMANCE
Originally the company named P.T. SEUNGIL BINTANG MITRA was established in Yogyakarta in March 1994 with the authorized capital of Rp. 500,000,000 issued capital of Rp. 300,000,000 entirely paid up. The founding shareholders of the company are Mr. Kim Dong Sun and Mr. Kim Young Woo, both are of South Korea. The company notary deed had been changed a couple of times and in September 1996 the company was changed to P.T. KENNY JAYA GLOVE. On the same occasion KENNY CO, LTD., of South Korea entered into the company as new shareholder. Later in October 2001 the company was changed again to P.T. EAGLE GLOVE INDONESIA (P.T. EGI). The latest in April 2003 the authorized capital was raised to Rp. 2,550,000,000 wholly issued and paid up. On the same occasion KENNY CO, LTD., pulled out and replaced by GOLDEN BALI INVEST LIMITED of South Korea as new shareholder. With this development the composition of its shareholders has been changed to become GOLDEN BALI INVEST LIMITED (50%), Mr. Kim Dong Sun (45.29%) and Mr. Kim Young Woo (4.71%). The company notary act was made by Mrs. Tri Hendri Ana, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. C-22073 HT.01.04.TH.2003, dated September 16, 2003.
P.T. EGI obtained a Foreign Investment (PMA) facility for dealing with the manufacturing of hand glove whose plant located at Desa Bayen, Purwomartani, Kalasan, Sleman, Yogyakarta standing on 5,804 square meters land. Its plant started with operating in 1995 with production capacity of 5.5 million pieces of hand gloves per annum. The plant produces the Golf gloves (Callaway, Adidas, Taylormade, Bridgestone, Puma, and Dunlop); Batting gloves (Adidas, Rawlings); Football gloves (Adidas); Horse Riding gloves (Roeckl) and Dress gloves (Sun Ace, Lanvin, Charles Jordan, Benetton, Lancetti). Most of the supported materials like rubber are obtained from the domestic market. The whole products are exported to Singapore, the European countries, the USA manufactured on the job order basis from overseas buyers. Sharp Rupiah depreciation against US$, EUR, Yen and other hard foreign currencies have a positive impact to the company's financial because the whole products are exported. But the prolonged economic crisis has a bad impact to the company's operation due to the increasing cost of production. We observe the operation of P.T. EGI has been growing and developing well in the last three years.
Indonesia is the second largest producer of natural rubber (NR) in the world and has the highest acreage under rubber cultivation. Over 84% of cultivation is in smallholdings. However, low productivity levels have kept rubber cultivation vulnerable to over exploitation, when prices are high, and abandonment, when prices are low. In 2005 the average yield was 862 kg per ha per annum compared to 1,875 kg in Thailand; 1,727 kg in India; 1,483kg in Vietnam; and 1,330 kg in Malaysia. Although prima facie it appears that the main cause for low national rubber productivity is the high percentage of smallholders this is also the case for other countries with higher productivity experiences. Rubber is grown on smallholder lines in Thailand, 90% of the extent; and India, 89% of the extent and 91% of total production. What is seen in contrast is the careful management of smallholder cultivation by the State - recognizing and providing for appropriate institutional support to help smallholders.
Smallholder support focuses on help to obtain the right planting material; continuously educating and monitoring smallholders in correct planting, maintenance and tapping practices; and creating support for marketing activities.
According to Indonesian Rubber Glove Manufacture Association (IRGMA) that Indonesia is the second producer of natural rubber. IRGMA informs that the largest consuming countries in worldwide include the USA reaching 50% of the world’s demand for rubber gloves. There are still opportunities to increase the production of rubber glove products. However, the rubber glove products in the country have been facing various obstacles such as the basic materials, the increasing fuel price, gas and tight competition. The business position of P.T. EGI is favorable in line with its growing operational networks and wide product marketing coverage. According to Natural Rubber comprised 42.4% and synthetic rubber 57.6% of total world rubber production in 2010. Total world rubber production increased to 24.3 million tonnes in 2010, a rise of 11.9% from 21.7 million tonnes in 2009.
World Rubber Production,
Consumption and Exports ('000 Tonnes) 2005 – 2010
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2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
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Natural Rubber |
||||||
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Production |
8,882 |
9,680 |
9,685 |
9,877 |
9,617 |
10,291 |
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Consumption |
9,082 |
9,216 |
10,230 |
10,088 |
9,390 |
10,671 |
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Balance |
-200 |
464 |
-545 |
-211 |
227 |
-380 |
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Exports |
6,392 |
7,019 |
6,945 |
6,838 |
6,415 |
7,083 |
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Synthetic
Rubber |
||||||
|
Production |
12,155 |
12,762 |
13,434 |
12,813 |
12,087 |
14,002 |
|
Consumption |
11,895 |
12,446 |
13,284 |
12,586 |
11,754 |
13,751 |
|
Balance |
260 |
316 |
150 |
227 |
333 |
251 |
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Exports |
7,173 |
7,451 |
7,682 |
7,271 |
6,978 |
8,012 |
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Total Rubber |
||||||
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Production |
21,037 |
22,442 |
22,995 |
22,690 |
21,704 |
24,293 |
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Consumption |
20,977 |
21,662 |
23,514 |
22,674 |
21,144 |
24,422 |
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Balance |
60 |
780 |
-519 |
16 |
560 |
-129 |
|
Exports |
13,565 |
14,470 |
14,627 |
14,109 |
13,393 |
15,095 |
|
Source: |
International Rubber Study Group (IRSG) |
Until this time P.T. EGI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. EGI 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. 27.0 billion rose to Rp. 29.0 billion in 2009 increased to Rp. 31.0 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. 2.5 billion and the company has an estimated total networth of at least Rp. 7.0 billion. We observe that P.T. EGI is supported by foreign partner with has financially strong and sound behind it.
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. EGI is led by Mr. Kim Dong Sun (66) a
businessman and professional manager of South Korea with experience in hand
gloves manufacturing. 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. EAGLE GLOVE INDONESIA is sufficiently fairly good for business
transaction.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.18 |
|
UK Pound |
1 |
Rs.73.65 |
|
Euro |
1 |
Rs.64.95 |
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 |
|
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 |
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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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.