|
Report Date : |
07.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
C.V. KENCANA HEGAR TEXTILE INDUSTRY |
|
|
|
|
Registered Office : |
Jl. Cibaligo
Km. 1.8, Cimahi, Bandung 40235, West Java |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
23.03.1982 |
|
|
|
|
Com. Reg. No.: |
Not Available |
|
|
|
|
Legal Form : |
Partnership with Sleeping Partner |
|
|
|
|
Line of Business : |
Textile
Industry |
|
|
|
|
No. of Employees : |
1200 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Indonesia - ECONOMIC OVERVIEW
Indonesia, a vast polyglot nation, grew an estimated 6.1% and 6.4% in 2010 and 2011, respectively. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a small current account surplus, a fiscal deficit below 2%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2012 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of rising oil prices.
|
Source : CIA |
C.V. KENCANA HEGAR TEXTILE INDUSTRY
Head Office &
Factory
Jl. Cibaligo Km.
1.8, Cimahi
Bandung 40235, West Java
Indonesia
Phone -
(62-22) 6032422 (hunting)
Fax - (62-22) 6031715
Land Area - 5.0 ha
Building Area - 3.8 ha
Region - Industrial
Zone
Status - Owned
23 March 1982
C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partner
Not Required
Domestic
Investment Company (PMDN
The Capital
Investment Coordinating Board
a.
No.
92/I/PMDN/1986
Dated 13 May 1986
b.
No.
181/II/PMDN/1991
Dated 25 September
1991
c.
No.
89/II/PMDN/1995
Dated 04 April
1995
P.T. LEUWIJAYA
TEXTILE UTAMA (Textile (Weaving) Industry)
Capital
Structure :
Owned Capital - Rp. 65 billion
Owners :
a. Mr. Yogie Tanu AKA Tan Boe Gie (Active Partner)
b. Mrs. Yogie Tanu (Silent Partner)
Lines of
Business :
Textile Industry
Production
Capacity :
a. Shirt Fabrics - 2,800,000 meters p.a.
b. grey Fabrics - 33,000,000 meters p.a.
c. Finished Fabrics - 33,000,000 meters p.a.
Total Investment :
a. Owned Capital - Rp. 65.0 billion
b. Loan Capital - Rp. 88.0 billion
c. Total Investment - Rp. 153.0 billion
Started
Operation :
1987
Brand Name :
KENCANA HEGAR
Technical
Assistance :
None
Number of
Employee :
1,200 persons
Marketing Area
:
a. Local -
60%
b. Export - 40%
Main Customer
:
a. Garment
Industries
b.
Wholesalers/Distributor of Textile Products
c. Overseas buyer
in Middle East, Hong Kong, Singapore, Australia, Canada and others
Market
Situation :
None
Main
Competitors :
a. PT. Fuji
Palapa Textile Industries
b. PT. Sinar Padasuka Textile
c. PT. Bandung Sakura Textiles
d. PT. Marga
Sandang Textile
e. PT. Hakatex,
etc.
Business Trend
:
Growing but
slowly
Bankers :
a. P.T.
Bank CENTRAL ASIA Tbk
Jl. Asia Afrika No. 122-124
Bandung, West Java
Indonesia
b. P.T.
Bank NEGARA INDONESIA Tbk
Jl. Sumbawa No. 7
Bandung, West Java
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation
record in our database
Annual Sales
(estimated) :
2009 – Rp. 430.0
billion
2010 – Rp. 490.0
billion
2011 – Rp. 560.0
billion
2012 – Rp. 296.0
billion (January – June)
Net Profit
(estimated) :
2009 – Rp 20.5 billion
2010 – Rp. 23.4
billion
2011 – Rp. 26.8
billion
2012 – Rp. 14.1
billion (January – June)
Payment Manner
:
Average
Financial
Comments :
Satisfactory
Board of Management :
Director - Mr. Yogie Tanu AKA Tan
Boe Gie
Board of Commissioners :
None -
None
Signatories :
Director (Mr. Yogie Tanu
AKA Tan Boe Gie) is only the authorized person to sign the loan on behalf of
the company.
Management
Capability :
Good
Business Morality
:
Good
C.V. KENCANA HEGAR TEXTILE INDUSTRY (C.V. KENCANA HEGAR) was established in Bandung, West Java in March 1982 with the legal status of C.V. (Commanditaire Vennotschap) or partnership with sleeping partner. The founders and owners of C.V. KHTI are Mr. Yogie Tanu AKA Tan Boe Gie as active partner and his wife Mrs. Yogie Tanu as sleeping partner. As other companies with the legal status of C.V., the capital of the company is not stated in the deed of establishment. We estimated that the capital of C.V. KENCANA HEGAR amounted to Rp. 65.0 billion and it will be growing in the coming years in line with its growing business activities.
We see that C.V. KENCANA HEGAR has close relations with the FUJITEX Group, a big sized business group in the textile industry in Bandung. Mr. Yogie Tanu’s wife is the sister of Mr. Tatang Hermawan, the owner of the FUJITEX Group.
C.V. KENCANA HEGAR obtained a Domestic Capital Investment (PMDN) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with textile industry by managing a plant being located at Jalan Cibalago Km. 1.8 Leuwigajah, Cimindi, Cimahi, Bandung, West Java on a land of 5.0 hectares having been in commercial operation since 1987. The company initially produced only shirting fabrics with annual capacity of 2.8 million meters. In December 1991 and April 1995, the company gained a license issued by the BKPM, to expand its annual production capacity to 33.0 million meters of grey fabrics and 33.0 million meters of finished fabrics. The development of the plant has absorbed an investment of Rp. 153.0 billion coming from own capital of Rp. 65.0 billion and the rest from loans. Some 40% of the company products are exported to several countries including Middle East countries, Hong Kong, Singapore, Australia, Canada and others while the rest is locally marketed through its distributors spreading in big cities in Indonesia. C.V. KENCANA HEGAR is classified as a medium sized company in the country dealing with textile industry.
We learnt that C.V. KENCANA HEGAR's business operation has been fluctuating within the last five years. The global economic crisis and very sharp depreciation of the Rupiah to foreign currencies in October 2008 have adversely affected the company's operations for having caused the raw materials such as textile chemicals and auxiliaries the company is using, which have mostly been imported, to be very high and started increasing since April 2009 in line with the amelioration of the economic condition in the country. The demand is projected to go on rising each year in the next five years. Meanwhile, competition is quite heavy in the textile trade with many companies now doing business in this field in Indonesia. C.V. KENCANA HEGAR's business prospect is still good for it has built extensive marketing networks outside the USA and the European Union which has previously known as the largest Indonesian TPT importing countries.
According to the Central Bureau of Statistics (BPS), the Indonesian 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 to 1,525,900 tons (US$ 4,721.8 million) in 2010 and declined to 1,493,300 tons (US$ 5,563.3 million) in 2011.
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 and to 450,900 tons (US$ 7,801.5 million) in 2011.
The export volume and value of the national TPT products in 2002 to 31 March 2012 are pictured on the following table.
|
Year |
Textile Product Export |
Garment Export |
||
|
(Thousand Ton) |
(US$ Million) |
(Thousand Ton) |
(US$ Million) |
|
|
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* |
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 1,493.3
375.7 |
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 5,563.3 1,318.1 |
333.1 339.9 327.3 369.5 399.6 399.8 417.6 393.4 445.2 450.9 111.7 |
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 7,801.5 1,873.3 |
Source: Central Bureau of Statistic *) January to March 2012
Until this time C.V. KENCANA HEGAR has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of C.V. KENCANA HEGAR 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. 430.0 billion declined to Rp. 490.0 billion in 2010 and rose again to Rp. 560.0 billion in 2011. It is projected to go on rising by at least 5% in 2012. The operation in 2011 yielded an estimated net profit of at least Rp. 26.8 billion and the company has an estimated total networth of at least Rp. 160.0 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.
C.V. KENCANA HEGAR's management is led by Mr. Yogie Tanu AKA tan Boe Gie (55) as Director and prime-mover of the Company He is a businessman with 30 years experience in textile industry and trade. The management reputation in the above business is good and handled by professional managers. The management is considered to be very creative and dynamic. They have wide relation with home and overseas private businessmen particularly Japanese and South Korea businessmen. So far, we did not hear that the company’s management involved in a business malpractices 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.
We consider that C.V. KENCANA HEGAR is good for normal business transaction. Considering the current unstable economic condition surrounding the company we recommend that in issuing any new loan, adequate guarantee from whole shareholders is highly required.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.47 |
|
UK Pound |
1 |
Rs.87.63 |
|
Euro |
1 |
Rs.71.12 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.