MIRA INFORM REPORT

 

 

Report Date :

14.04.2012

 

IDENTIFICATION DETAILS

 

Name :

PD. SHANKAR PM

 

 

Registered Office :

Pusat Grosir Tekstil Mangga Dua Block E 4 No. 20 Jalan Arteri Mangga Dua Jakarta Utara, 14430

 

 

Country :

Indonesia

 

 

Year of Establishment :

1995’s

 

 

Legal Form :

Sole Proprietary Company

 

 

Line of Business :

Trading, Import and Distribution of Textile Products

 

 

No. of Employees :

18 persons

 

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$ 190,700

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

 

PD. SHANKAR PM

 

 

Address

 

Head Office 

Pusat Grosir Tekstil Mangga Dua Block E 4 No. 20

Jalan Arteri Mangga Dua

Jakarta Utara, 14430

Indonesia

Phones             - (62-21) 6011786, 6120341, 6009932

Fax                   - (62-21) 6009930

Building Area     - 2 storey

Office Space      - 130 sq. meters

Region              - Commercial

Status               - Rent

 

 

Registration data

 

Date of Incorporation :

1995’s

 

Legal Form :

Sole Proprietary Company

 

Company Reg. No. :

Not Required

 

Company Status :

Private National Company

 

Permit by the Government Department :

The Department of Finance

Not Available

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 1.0 billion

 

Owners :

Mr. Shankar Mulani

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Import and Distribution of Textile Products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1995’s

 

Brand Name :

Shankar PM

 

Technical Assistance :

None

 

Number of Employee :

18 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Trader and Retail Shop, Individual and Tailor

 

Market Situation :

Very Competitive

 

Main Competitors :

a. CV. ADE BUSANA COLLECTION

b. DULLAH TEXTILE

c. DULLAH TEXTILE

d. EVERY DECORATION, Etc

 

Business Trend :

Growing

 


BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CENTRAL ASIA Tbk

      Mangga Dua Plaza Block 12 A

      Jalan Raya Mangga Dua

      Jakarta Utara

      Indonesia

 

b.   P.T. Bank MANDIRI Tbk

      Arkade Dusit Mangga Dua Bo. 5

      Jalan Arteri Mangga Dua

      Jakarta Utara

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 12.7 billion

2010 – Rp. 13.6 billion

2011 – Rp. 14.5 billion

 

Net Profit (estimated) :

2009 – Rp. 1.1 billion

2010 – Rp. 1.3 billion

2011 – Rp. 1.5 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Shankar Mulani

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. Shankar Mulani) is only the authorized person to sign the loan on behalf of the company.

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

Maximum Credit Limit :

US$ 190,700 on 90 days D/A

 

 

OVERALL PERFORMANCE

 

PD. SHANKAR PM is a sole proprietary company which established in Jakarta in 1995’s by Mr. Shankar Mulani an Indonesia businesswoman of Indian descent. The company’s authorized capital is not announced in it’s of establishment. In general, the company with status of sole proprietary company shall increase its capital continuously together with its business development. We estimated that MR TEXTILE (AL MAYA) has capital about Rp. 1.0 billion.

 

PD. SHANKAR PM started to be operating since 1995’s to deal with trading, import and distribution of textile products. According information the company sells of various textile products for woman, lady’s and man’s with various types among others are machine embroidery fabrics, embroider fabrics, special jacquard fabrics, gicha jacquard fabric, damask jacquard fabric, plain dyed fabric, shirting fabric, organic pigment cotton fabric, silk cotton fabric, polyester cotton fabric, cotton poly blend shirting fabric, cotton yarn poly fabric, poly cotton fabric, linen fabric, fine plain dyed fabric and others. The whole products imports through MAHATEX EXPORTS of India. Mr. Shankar Mulani, Director and owner of the company went on to say some of the textile products mostly import from India and the rest for locals. The whole products sold through trader and textile shop, tailor made, and others in Jakarta and surroundings. We observe that PD. SHANKAR PM is a small size company of its kinds which its operation has been growing and developing well in the last three years.

 

Generally, the demand for polyester cotton & rayon yarns, polyester staple fiber and others tended to be fluctuating within the last five years in line with the fluctuating of Indonesian textile industry in general. There are eleven domestic dyestuff producers which are still active with a combined production capacity of 45,620 tons per annum. 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 rose to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393.400 tons (US$ 5,735.6 million) in 2009 and 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 1,477.8 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 decrease 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 and to 1,525.9 tons (US$ 4,721.8 million) in 2010.

 

 

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 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 PD. SHANKAR PM has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of the company is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2009 amounted to Rp. 12.7 billion rose to Rp. 13.6 billion in 2010 increased to Rp. 14.5 billion in 2011 and projected to go on rising by at least 4% in 2012. The operation in 2011 yielded an estimated net profit of at least Rp. 1.5 million and the company has an estimated total net worth of at least Rp. 3.0 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 PD. SHANKAR PM is led by Mr. Shankar Mulani (52) a businessman with experience in trading, import and distribution of 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 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. We are sure PD. SHANKAR PM is sufficiently fairly good for business transaction.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.42

UK Pound

1

Rs.81.93

Euro

1

Rs.67.67

 

 

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.