|
Report Date : |
08.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
P.T. ERATEX DJAJA TBK. |
|
|
|
|
Formerly Known As : |
P.T. ERATEX DJAJA Ltd. |
|
|
|
|
Registered Office : |
Jl. Raya Bukit Darmo No. 6 Surabaya 60189, East Java |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
12.10.1972 |
|
|
|
|
Com. Reg. No.: |
No. AHU-38149.AH.01.02.Tahun 2012 |
|
|
|
|
Legal Form : |
Public Listed Company |
|
|
|
|
Line of Business : |
Textile and Garment Manufacturing |
|
|
|
|
No. of Employees : |
4,370 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 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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 |
P.T. ERATEX DJAJA
Tbk.
Head Office
Jl. Raya Bukit Darmo No. 6
Surabaya 60189, East Java
Indonesia
Phone -
(62-31) 732 1992 (hunting)
Fax -
(62-31) 732 1827
Email - info@eratexco.com
Website - http://www.eratexco.com
Land Area - 2,500 sq.
meters
Building Space - 1,200 sq. meters
Region - Commercial
Status - Owned
Branches
a. Graha Arda, 2nd Floor, Unit 2A-2
Jl. HR
Rasuna Said Kav. B6
Jakarta
Selatan 12910
Indonesia
Phone
- (62-21) 522 0310
Fax - (62-21) 522 0313
b. Unit D, 4th Floor, Effort Indo.
Building
2-8
Kung Yip Street, Kwai Chung, N.T.
Hong
Kong
Phone -
(852) 2545 3318
Fax -
(852) 2810 1712
Factory
Jl. Soekarno Hatta No. 23
Probolinggo, East Java
Indonesia
Phone -
(62-335) 421 866
Fax -
(62-335) 423 148
Email - info@eratexco.com
Website - http://www.eratexco.com
Date of
Incorporation :
a. 12 October 1972 as P.T. ERATEX DJAJA Ltd.
b. 06 June 1997 as P.T. ERATEX DJAJA Tbk.
Legal Form :
P.T. Tbk.
(Perseroan Terbatas Terbuka) or Public Listed Company
Company Reg. No. :
The Ministry of
Laws and Human Rights
a. No. C-21010.HT.01.04.TH.2004
Dated 20 August 2004
b. No.
AHU-0046846.AH.01.09.Th.2009
Dated 28 July 2009
c. No.
AHU-38149.AH.01.02.Tahun 2012
Dated 16 July 2012
Company Status :
Foreign Investment Company (PMA)
Permit by the Government Department :
a. The Department
of Finance
NPWP No. 01.002.170.7-054.000
b. The President
of the Republic of Indonesia
No. B-54/Pre/5/72
Dated 02 June 1972
c. The Capital
Investment Coordinating Board
- No. 41/VI/PMA/1981
Dated 14 May 1981
- No. 136/VI/PMA/81
Dated 17 November 1981
- No. 86/III/PMA/86
Dated 12 April 1986
- No. 54/II/PMA/89
Dated 14 November 1989
- No. 595/III/PMA/91
Dated 09 September 1991
- No. 606/III/PMA/92
Dated 25 August 1992
SOUTH INDONESIAN
HOLDINGS, Ltd., of Hong Kong
Affiliated Company :
A member of SOUTH
INDONESIAN HOLDINGS Group of Companies
Capital Structure :
Authorized Capital
- Rp. 196,472,000,000.-
Issued Capital - Rp. 73,156,237,000.-
Paid up Capital - Rp. 73,156,237,000.-
Shareholders/Owners :
a. SOUTH INDONESIAN HOLDINGS, Ltd., -
Rp. 11,051,550,000.- (15.11%)
b. PUBLICS -
Rp. 62,104,687,000.- (84.89%)
Lines of Business
:
a. Textile and Garment Manufacturing
b. Investment Holding
Production
Capacity :
a. Spinning Yarns -
64,000 bales p.a.
b. Woven Fabrics -
35.0 million meters p.a.
c. Garments -
11.4 million pieces p.a.
Total Investment :
a. Equity Capital - Rp. 73.2 billion
b. Re-invested
Profit - Rp. 140.0 billion
c. Total
Investment - Rp. 213.2 billion
Started Operation :
1 9 7 4
Brand Name :
ERATEX DJAJA
Technical Assistance :
None
Number of Employee :
4,370 persons
Marketing Area :
Domestic - 5%
Export -
95%
Market Situation :
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, Etc.
e. P.T. UNGARAN SARI GARMENT
Business Trend :
Fluctuating
B a n k e r s :
The Hong Kong and Shanghai Banking Corp. (HSBC)
a. World Trade Center
Jl. Jend. Sudirman Kav. 29-31
Jakarta Selatan
b. Surabaya Branch
Jl. Diponegoro No. 8
Surabaya, East Java
Auditor :
Paul Hadiwinata, Hidayat, Arsono, Ade Fatma & Rekan
Litigation :
No litigation record in our database
Net Sales/Income :
2008 – Rp. 440.0
billion
2009 – Rp. 248.2
billion
2010 – Rp. 233.1
billion
2011 – Rp. 259.4
billion
Net Profit (Loss)
:
2008 – (Rp. 110.3
billion)
2009 – (Rp. 25.4 billion)
2010 – (Rp. 48.5 billion)
2011 – Rp.
84.6 billion
Payment Manner :
Sometime delay
Financial Comments :
Weak
Board of
Management :
President Director - Mr. Raj Kumar
Directors -
a. Mr. Surojit Ghosh
b. Mr. Frankie Ma Ngon
Board of
Commissioners :
President Commissioner -
Mr. Maniwanen
Commissioners - a. Mr. Julian Wong Wai Chua
b. Mr. Ferenz Cendrawasih
Signatories
:
President Director
(Mr. Raj Kumar) or one of the Directors (Mr. Surojit Ghosh and Mr. Frankie Ma
Ngon) which must be approved by Board of Commissioners
Management
Capability :
Good
Business Morality
:
Good
Credit Risk :
Above average
Credit Recommendation
:
Credit should be extended under guarantee
Proposed Credit Limit :
C.O.D. To small
amount
Originally named P.T. ERATEX DJAJA Ltd.,
the company was established in 1972 with an authorized capital of US$
6,000,000.- and an issued capital of US$ 2,500,000.- of which US$ 250,000.- was
paid up. The founding shareholders of the company are EASTERN COTTON MILLS of
Hong Kong and P.T. RODA MAS of Indonesia. The company's notarial act was since
revised a couple of times. In 1990 the authorized capital was increased and
converted to Rp 50,000,000,000.- and the issued capital to Rp 24,559,000,000.-
entirely paid up. Concurrently the company went public, selling 25% of its
shares through the Jakarta Stock Exchange and the Surabaya Stock Exchange. In
mid-1994 the issued and paid up capital was stepped up to Rp 49,118,000,000.-.
Since mid-1997 the company's name was modified to P.T. ERATEX DJAJA Tbk. (P.T.
EDT) as a public listed company.
The latest amendment was based on Natarial Deed No.
105 dated April 23, 2012 of Aryanti Artisari, SH., a notary in Jakarta, the
authorized capital was raised to Rp. 196,472,000,000.- of which Rp.
73,156,237,000.- was issued and fully paid up.
Since then, the shareholders of the copany are SOUTH INDONESIAN HOLDINGS
Ltd., of Hong Kong (15.11%) and Publics (84.89%). The amendment to Articles of
Assocation has been approved by the Minister of Law and Human Rights of the
Republic of Indonesia through Decree No. AHU-38149.AH.01.02.Tahun 2012 dated
July 16, 2012. No changes have been effected in
term of its shareholding composition and capital structures to date.
P.T.
EDT obtained a foreign capital investment (PMA) facility issued by Investment
Coordinating Board (BKPM) for dealing with integrated textile industry whose
plant located at Jl. Soekarno-Hatta No. 23, Probolinggo, East Java, 100
km from Surabaya, with a built-up area of 5000 sq. meters on a 17 hectares site
with a work force of over 4,000 employees.
The plant has been in operation since 1972 in started with Spinning, and
in 1974, Weaving operation was added. In
1980, garment operation was added, and since then, the division has expanded
rapidly to become a large-size garment manufacturer in Indonesia. Currently, there are 43 sewing lines of pants,
6 lines of shirts and 4 lines jackets with over 2300 sewing machines in their 2
garment factories. Monthly combined
capacity is 21 million SMV or equivalent to 950,000 pieces of 5 pocket jeans. This represents an increase of 200% over the
last 30 months. Compatible washing and
finishing facilities are in place. Some
95% of the garment products are exported to USA, Japan and European countries,
and the rest of some 5% are marketed locally. The products are long & short
trousers for men and women, blouses and jackets.
Ms. Juliarti
Pudji, corporate secretary of PT. EDT said that operations of the company in
the last consecutive three years until 2010 suffered loss. But in 2011, through
cleaning up action (efficiency measures in all sectors), PT EDT successfully
reduced deficit amounting to Rp 171 billion. As of the end of 2011 P.T. EDT
began generating profit. Ms. Juliarti added that the operations P.T. EDT once
slumped in 2009/2010 due to capital problems and laid off as many as 400 employees. But with the
financial support in the form of loan capital from HSBC, operations of PT EDT
were managed to bounce back.
So far P.T. EDT is
noted for its denim products. Some foreign brands that became its customers are
brands such as Levi’s, Esprit, Banana Republic, Timberland, Quicksilver, GAP
and others. Currently P.T. EDT newly had 10 production lines of garment.
According to the plan by late 2012, P.T. EDT has increased again about 45
production lines for pants, shirts, jackets and other textile products. Other
expansion plan was rejuvenation of production machinery, in order to increase
production capacity. Ms. Juliarti hoped the rejuvenation of these factory
machineries could boost the production capacity of approximately 45% and in
2012 this P.T. EDT targeted to produce as many as 425.000 pieces of clothing
per day. This figure increased by 41.6% from last year's production of 300,000
per day.
Besides, P.T. EDT is also active in
investment holding by controlling 95.15% shares of P.T. ASIATEX GARMINDO (integrated
garment manufacturing), 100% shares of ERATEX (HK) Ltd., in Hong Kong (general
trading) and 99% shares of P.T. ERATEX GARMENT (integrated garment
manufacturing). P.T. EDT is classified
as a large sized company of its kind in the country. However, since 2007 up to 2010 the operation
of the company had been suffering from a loss.
Generally,
demand for textile and textile products, including polyester textured yarn,
finished fabrics, garment, textile chemicals and raw materials have 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
According to
financial report of P.T. EDT, its sales turnover has been fluctuating in the
last four years. In 2008, P.T. EDT’s
sales turnover reached Rp. 440.0 billion with a net loss of Rp. 110.3 billion
rose to Rp. 248.2 billon with a net loss of Rp. 25.4 billion in 2009 declined
to Rp. 233.1 billion with a net loss of Rp. 48.5 billion in 2010 and rose again
to Rp. 259.4 billion with a net profit of Rp. 84.6 billion in 2011. Financial Highlights as of 31 December 2008,
2009, 2010 and 2011 are below:
(in Rp million)
|
DESCRIPTION |
31 December |
|||
|
2011 |
2010 |
2009 |
2008 |
|
|
STATEMENT OF
INCOME |
|
|
|
|
|
- Net Sales/Revenues |
259,371 |
233,110 |
248,200 |
439,977 |
|
- Gross Income (Loss) |
32,566 |
(13,243) |
14,684 |
(1,999) |
|
- Operating Income (Loss) |
(1,092) |
(47,546) |
(32,985) |
(59,815) |
|
- Depreciation and
Amortization |
3,146 |
3,216 |
2,827 |
6,023 |
|
- Financing Cost |
13,438 |
16,110 |
19,625 |
19,282 |
|
- EBITDA |
2,054 |
(44,330) |
(30,158) |
(53,792) |
|
- Net Profit (Loss) |
84,586 |
(48,501) |
(25,372) |
(110,336) |
|
- Number of Shares (in
thousands) |
146,312 |
98,236 |
98,236 |
98,236 |
|
- Earning per Share (in
Rupiah) |
715 |
(494) |
(258) |
(1,123) |
|
BALANCE SHEET |
|
|
|
|
|
- Current Assets |
128,728 |
71,537 |
48,332 |
88,886 |
|
- Non Current Assets |
43,142 |
43,791 |
49,444 |
80,370 |
|
- Total Assets |
171,870 |
115,536 |
97,776 |
169,256 |
|
- Current Liabilities |
129,502 |
169,940 |
114,847 |
240,559 |
|
- Non Current Liabilities |
140,103 |
151,815 |
141,265 |
63,336 |
|
- Total Liabilities |
269,605 |
321,755 |
256,112 |
303,895 |
|
- Minority Interest |
209 |
-- |
9 |
9 |
|
- Total Equity |
(97,944) |
(206,427) |
(158,345) |
(134,648) |
|
FINANCIAL RATIO |
|
|
|
|
|
- Current ratio |
0.99 |
0.42 |
0.42 |
0.37 |
|
- Total Liabilities to Assets |
1.57 |
2.79 |
2.62 |
1.80 |
|
- Total Liabilities to Total
Equity |
-2.75 |
-1.56 |
-1.62 |
-2.26 |
|
- Gross Profit Margin (%) |
13% |
-6% |
6% |
0% |
|
- Operating Profit Margin (%) |
0% |
-20% |
-135 |
-14% |
|
- Net Profit Margin (%) |
33% |
-21% |
-10% |
-25% |
|
- Return On Equity (%) |
-86% |
23% |
16% |
82% |
|
- Return On Assets (%) |
49% |
-42% |
-26% |
-65% |
Remarks: Audited by Paul Hadiwinata, Hidayat, Arsono,
Ade Fatma & Rekan
The management
of P.T. EDT is led by Mr. Raj Kumar (38) as president director, a professional
manager of Indian descent with has experienced for more than 10 years in
textile and garment manufacturing. In daily activities, he is assisted by Mr.
Surojit Ghosh (51) of India and Mr. Frankie Ma Ngon (62) of Hong Kong, both are
as director. We observed that
management’s reputation in said business is sufficiently fairly good. The
company has had wide relation in the realm of the private businessmen within
and outside the country. 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. ERATEX
DJAJA is sufficiently fairly good for business transaction. However, considering the operation of the
company declined and loss in 2007 to 2010, we recommend to treat prudently in
extending any new loan to the company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.49 |
|
|
1 |
Rs.86.39 |
|
Euro |
1 |
Rs.68.69 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.