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Report Date : |
22.12.2012 |
IDENTIFICATION DETAILS
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Name : |
C.V. LENGTAT TANGERANG LEATHER |
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Registered Office : |
Jalan Pembangunan No. 3 RT. 01/05 Mekarsari, Batu Ceper Tangerang 15129 Banten Province |
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Country : |
Indonesia |
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Date of Incorporation : |
1988 |
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Legal Form : |
Partnership with Sleeping Partner |
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Line of Business : |
Leather Tanning Manufacturing |
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No. of Employees : |
420 Persons |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
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.
LENGTAT TANGERANG LEATHER
Head Office & Factory
Jalan
Pembangunan No. 3 RT. 01/05
Mekarsari,
Batu Ceper
Tangerang
15129
Banten
Province
Indonesia
Phones - (62-21) 5521859, 5521845
Mobile Phone - 85511072
Fax - (62-21) 5521839, 5589536
E-mail - lengtat@cbn.net.id
Website - http://www.lengtat.co.id
Land Area - 8,000 sq.
meters
Building Space - 5,000 sq. meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation :
1988’s
Legal
Form :
C.V.
(Commanditaire Vennootschap) or Partnership with Sleeping Partner
Company
Reg. No. :
Not
Required
Company
Status :
National
Private Company
Permit
by the Government Department :
The Department of Finance
NPWP
No. 01.455.540.3-402.000
Related
Company :
None
Capital
Structure :
Authorized
Capital : Rp.
1.0 billion
Owners
:
a. Mr. Alex Kadarwin AKA Kadarwin
Liong (Active Partner)
b. Mrs. Yennywati Ng (Silent Partner)
Lines
of Business :
Leather
Tanning Manufacturing
Production
Capacity :
Finished
Leather -
12,000,000 sq. foot per annum
Total
Investment :
a.
Owned Capital -
Rp. 1.0 billion
b.
Loan Capital -
Rp. 3.5 billion
c.
Total Investment -
Rp. 4.5 billion
Started
Operation :
1988
Brand
Name :
Lengtat
Tangerang Leather
Technical
Assistance :
None
Number
of Employee :
420
persons
Marketing
Area :
Export - 80%
Local - 20%
Main
Customer :
Buyers
in Italy, UK, South Korea, China, India
Market
Situation :
Very
Competitive
Main
Competitors :
a.
C.V. CISARUA
b.
P.T. ECCO TANNERY INDONESIA
c. P.T. ELCO INDONESIA SEJAHTERA
d.
P.T. KULITMURNI ASIATENGGARA
Business
Trend :
Growing
B a n k e r s :
a. P.T. Bank
NEGARA INDONESIA Tbk
Jalan Roa Malaka Selatan No. 23-25
Jakarta Barat
Indonesia
b. P.T. Bank CENTRAL ASIA Tbk
Jalan Raya Batu Ceper
Tangerang, Banten Province
Indonesia
Auditor
:
Internal
Auditor
Litigation
:
No
litigation record in our database
Annual
Sales (estimated) :
2009
– Rp. 35.0 billion
2010
– Rp. 36.5 billion
2011
– Rp. 37.6 billion
2012
– Rp. 19.0 billion (January – June)
Net
Profit (estimated) :
2009
– Rp. 3.0 billion
2010
– Rp. 3.1 billion
2011
– Rp. 3.3 billion
2012
– Rp. 1.6 billion (January – June)
Payment
Manner :
Average
Financial
Comments :
Satisfactory
Board of Management :
Director -
Mr. Alex Kadarwin AKA Kadarwing Liong
Manager -
Mr. Bino Liong
Board of Commissioners :
Commissioner - Mrs. Yennywati Ng
Signatories :
Director
(Mr. Alex Kadarwin AKA Kadarwin Liong) is only the authorized person to sing
the loan on behalf of the company.
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded with monitor
Proposed
Credit Limit :
Small
amount – periodical review
C.V.
LENGTAT TANGERANG LEATHER (C.V. LTL) was established in Tangerang, Banten
Province in 1988’s with the legal status of C.V. (Commanditaire Vennootschap)
or Partnership with Sleeping Partner. The founding and owners of the company
are Mr. Alex Kadarwin AKA Kadarwin Liong as active partner and his wife Mrs.
Yennywati Ng as silent partner. As in common in cases of companies with C.V.
status, there is no mention in the company’s notarial act of its capital
structure. But going by the company’s conditions, we estimate its capital at
some Rp. 1.0 billion.
C.V.
LTL has been operating since 1989 dealing with leather tanning manufacturing by
manages a plant located at Jalan Pembangunan No. 3, Mekarsari, Batu Ceper,
Tangerang, Banten Province standing on a land of 8,000 sq. meters. Raw
materials like wet salted sheep skin and salted goat skin using from locals
from West Java and others. Meanwhile some of the raw materials like picklead
goat skin, picklead sheep skin import from Ethiopia and others. The plant
produces of finished leather of 12.0 million sq. foot per annum. The kinds of
production are golf glove leather, batting glove leather and shoe leather. The
construction of the plant has absorbed an investment of Rp. 4.5 billion come
from owned capital of Rp. 1.0 billion and the balance from loans. Mr. Alex
Kadarwin AKA Kadarwin Liong, Director of the company explained, some 80% of the
products is exported to Italy, United Kingdom, South Korea, India, China and
other countries. Meanwhile the rest 20% marketed locally to various industries
such as shoe industries, furniture industries, bag industries and others. In
the period between 1970 and 1995, the leather tannery industry underwent a
rapid shift to technologies that convert raw hide and wet blue into finished leather,
which in turn is used in leather products such as shoes, bags, gloves, garments
etc. Economic benefits accrue to downstream actors as value added from hide and
skin processing is high.
This
has been proven by constant annual growth in exports of leather and leather
products. In the wake of the 1997/1998 economic crisis, the tannery industry
experienced a difficult period as seen in decreased production and manpower.
Many tannery companies were even forced to close. The tannery industry has
suffered further because post-crisis government policy failed to support the
sector and in such a situation companies preferred to export wet blue leather.
To guarantee domestic supply the government needs to encourage the leather
tannery industry to improve quality in line with standards set by domestic
consumers and increase production capacity and volume. It also needs to draw up
a primary and secondary industry development strategy through synergy and the
cluster approach and review various regulations on leather importation which
have been hindering the secondary sector industry. We observe the operation of
C.V. LTL has been growing and developing well in the last five years.
In
overall we find the demand for leather sheets had been fluctuating within the
last five years in line with the growth of local and international market
demand. It is estimated that it will remains fluctuated within the coming
two-three years. Leather production is a complex task, encompassing 23 distinct
steps, starting with the flaying of raw hides or skins and finishing with
embossing, which presses a chosen grain into the surface of the finished hide.
During the past five years, domestic production of finished leather has
significantly varied. For example, from 2004 to 2006, leather production for
footwear increased 49% from 45 million square feet in 2002 to 67 million in
2004. However, in the past two years, production levels have decreased by 15%,
from 67 million in 2004 to 57 million square feet in 2006. The level of
domestic leather produced has not been enough to satisfy consumption. In 2006,
domestic finished leather for footwear consumption was estimated to be 69
million square feet, while domestic leather production was only 57 million
square feet. Of the 57 million square feet produced, 12 million was exported to
foreign-owned footwear manufacturers, creating a deficit of 24 million square
feet. This deficit was addressed through the import of finished leather,
primarily from firms in India, Italy, Bangladesh and China.
C.V.
LTL 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 2009 amounted to Rp. 35.0 billion rose to Rp. 36.5
billion in 2010 increased to Rp. 37.6 billion in 2011. As from January to June
2012 the sales has reached at least Rp. 19.0 billion with a net profit of Rp.
1.6 billion and the sales revenue it’s projected to go on rising by at least 5%
in 2013. The company has an estimated total networth of at least Rp. 8.6
billion. So far, we did not heard that the company having been black listed by
the Central Bank (Bank Indonesia). The payment habit of the company has been
running smoothly ranging from 1 to 3 months.
The
management of C.V. LTL is headed by Mr. Alex Kadarwin AKA Kadarwin Liong (52) a
businessman and professional manager with experience in leather tanning
manufacturing. 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 business malpractice 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 are convinced C.V.
LENGTAT TANGERANG LEATHER is sufficiently fairly good for business transaction.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.08 |
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|
1 |
Rs.89.53 |
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Euro |
1 |
Rs.72.77 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<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.