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Report Date : |
29.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
P.T. JINDAL STAINLESS |
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Registered Office : |
Kawasan Industri Maspion V Jalan Alpha, Desa Sukomulyo – |
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Country : |
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Date of Incorporation : |
06.08.2004 |
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Com. Reg. No.: |
No. AHU-AH.01.10-15501 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Stainless Steel Cold Rolling Milling |
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No. of Employees : |
370 persons |
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 |
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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) |
|
Indonesia |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
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
P.T.
JINDAL STAINLESS INDONESIA
Head Office & Factory
Kawasan Industri Maspion V
Jalan Alpha, Desa Sukomulyo - Manyar
Gresik, 61151
East Java
Indonesia
Phone -
(62-31) 395-9565 (Hunting), 395-9588
Fax - (62-31) 395-9566
E-mail - info.indonesia@jindalsteel.com
Land Area - 10.75 hectares
Building Area - 8,500 sq. meters
Region - Industrial
Estate
Status - Owned
Date
of Incorporation :
6 August 2004
Legal
Form :
P.T. (Perseroan Terbatas) or Limited Liability
Company
Company
Reg. No. :
The Ministry
of Law and Human Rights
- No.
C-22990.HT.01.01.TH.2004
Dated 14
September 2004
- No. C-28482
HT.01.04.TH.2004
Dated 22
November 2004
- No.
C-UM.02.01.1191
Dated 24
January 2006
- No.
AHU-80477.AH.01.02.TH.2008
Dated 31
October 2008
- No.
AHU-AH.01.10-15501
Dated 23 May
2011
Company
Status :
Foreign Investment (PMA) Company
Permit
by the Government Department :
The
Department of Finance
NPWP No. 01.869.622.9-055.000
The Capital
Investment Coordinating Board
- No. 513/I/PMA/2004
Dated 3
August 2004
- No. 1018/III/PMA/2004
Dated 14
October 2004
- No.
412/II/PMA/2006
Dated 26
December 2006
Related
Company :
P.T. JINDAL OVERSEAS (Trading and Export of Coal)
Capital
Structure :
Authorized
Capital : US$
25,000,000.-
Issued
Capital :
US$ 12,500,000.-
Paid
up Capital :
US$ 12,500,000.-
Shareholders/Owners
:
a. JINDAL STAINLESS LMITED - US$
12,499,900.-
Address : Jindal Centre
12 Bhikaiji Cama Palace, New Delhi, 110066
India
b. JINDAL STRIPS LIMITED -
US$ 100.-
Address :
Jindal Centre
12 Bhikaiji Cama Palace, New Delhi, 110066
India
Lines
of Business :
Stainless
Steel Cold Rolling Milling
Production
Capacity :
a. Stainless Steel Cold Rolling - 50,000 tons p.a.
b. Stainless Steel Sheets Coils - 90,000 tons p.a.
Total
Investment :
a.
Equity Capital - US$ 12.5 million
b.
Loan Capital - US$ 55.5 million
c.
Total Investment -
US$ 68.0 million
Started
Operation :
December
2004
Brand
Name :
Jindal
Stainless Indonesia
Technical
Assistance :
Jindal
Stainless Limited, India
Number
of Employee :
370
persons
Marketing
Area :
Local - 55%
Export - 45%
Main
Customer :
Buyers
in Singapore, Malaysia, Thailand, India, China, South Korea, Australia, and
local distributors
Market
Situation :
Very
Competitive
Main
Competitors :
a.
P.T. ESSAR INDONESIA
b. P.T. KRAKATAU STEEL Tbk
c.
P.T. NAR STAINLESS STEEL
d.
P.T. TETRAPACK STAINLESS EQUIPMENT
e.
Etc.
Business
Trend :
Growing
B
a n k e r s :
a.
STANDARD CHARTERED Bank
Wisma
Standard Chartered Bank
Jalan
Basuki Rachmat No. 83-85
Surabaya,
East Java
Indonesia
b. P.T. Bank SBI INDONESIA
Jalan H.R. Muhamad No. 33 D
Surabaya, East Java
Indonesia
c.
Export Import Bank of India
India
d.
State Bank of India
India
Auditor
:
Internal
Auditor
Litigation
:
No
litigation record in our database
Annual
Sales (estimated) :
2009
– Rp. 285.0 billion
2010
– Rp. 298.0 billion
2011
– Rp. 312.0 billion
2012
– Rp. 162.5 billion (January – June)
Net
Profit (estimated) :
2009
– Rp. 25.6 billion
2010
– Rp. 26.8 billion
2011
– Rp. 28.1 billion
2012
– Rp. 16.0 billion (January – June)
Payment
Manner :
Average
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Rajesh Khosla
Director -
Mr. Umendra Pratap Singh
Board of Commissioners :
Commissioner - Mr. Arvind Parakh
Signatories :
President
Director (Mr. Rajesh Khosla) or the Director (Mr. Umendra Pratap Singh) which
must be approved by Board of Commissioner
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded with monitor
Proposed
Credit Limit :
Small
amount – periodical review
Based on
investigation the correct name of Subject is P.T. JINDAL STAINLESS INDONESIA
not P.T. JINDAL STAINLESS as state in your order ref. no. 205458 dated 27
December 2012.
P.T. JINDAL
STAINLESS INDONESIA (P.T. JSI) was established in Surabaya, East Java based on
notary deed of Mr. Achmad Abid, SH., No. 4 dated 6 August 2004 with an
authorized capital of US$ 10,000,000 issued capital of US$ 6,750,000 of which
paid up. The founding shareholders are JINDAL STAINLESS Ltd., and JINDAL STRIPS
Ltd., both are of India. The notary deed has been changed, and in November
2004, the issued capital was raised to US$ 7,500,000 entirely paid up. The deed
of amendment was made by Mrs. Sitaresmi Puspadewi Subianto, SH, a public notary
in Surabaya under Company Registration Number C-28482 HT.01.04.TH. 2004, dated
November 22, 2004. The latest based on notary deed of Mrs. Siti Nurul Yuliami,
SH., M.Kn., No. 41 dated 22 February 2011 the authorized capital was increased
to US$ 25,000,000 issued capital to US$ 12,500,000 fully and paid up. With this
development the composition of its shareholders has been changed to become
JINDAL STAINLESS LIMITED (99.99%) and JINDAL STRIPS LIMITED (0.01%). The latest
revision of notary documents was approved by the Ministry of Law and Human
Rights in its decision letter No. AHU-AH.01.10-15501 dated February 22, 2011.
P.T.
JSI is a foreign capital investment (PMA) company dealing with stainless steel
cold rolling milling by taking over factory, machinery and factory employee of
P.T. MASPION STAINLESS STEEL INDONESIA. P.T. JSI completed the acquisition of
stainless steel cold rolling plant with capacity of 50,000 tons per year from
P.T. MASPION STAINLESS STEEL INDONESIA now know as P.T. JINDAL STAINLESS
INDONESIA (P.T. JSI). The plant located at Kawasan Industri Maspion V, jalan
Alpha, Sukomulyo – Manyar, Gresik, East Java, where it stands on a some 10.75
hectares landsite. After the acquisition, the plant has been operating since
December 2004 and produced stainless steel cold rolling sheet of 50,000 tons
per annum. Then in December 2006 P.T. JSI obtained permit to increasing
production capacity to produce of stainless steel sheet in coil of 90,000 tons
per year. The plant has absorbed an investment of US$ 68.0 million, come from
owned capital of US$ 12.5 million and the rest come from loans. The plants
originally used technology of SUMITOMO METAL INDUSTRIES Ltd., of Japan. The
products are stainless steel for household, building material and fabrication industry
like tank, pipe, utensil, and containers. The supplies of basic material in the
form of hot band, steel in coil, steel shoot are mostly imported from India.
P.T.
JSI is a globally recognized producer of stainless steel flat products in
Austenitic, Ferritic, Martensitic and Duplex grades. The product range includes
Ferro Alloys, Stainless Steel Slabs & Blooms, Hot Rolled Coils, Plates,
Cold Rolled Coils and specialty products such as razor blade steel, precision
strips and coin blanks. P.T. Jindal Stainless Indonesia (JSI) has established
its foothold in the South East Asian & Oceania market with acquisition of a
Stainless Steel Cold Rolling plant from Maspion Stainless Steel, Indonesia. The
plant has a capacity of 150,000 tons per annum. With its expert technical
personnel and modern facilities to produce quality products, P.T. Jindal
Stainless Indonesia is leaving its mark in the markets. This plant produces all
grades of Stainless Steel including 200, 300 and 400 series and is well
prepared to supply customized requirements.
Some
of 55% of its products is marketed locally to electronic and household
appliances industry, fabrication industry, steel pipe industry and the rest 45%
is exported to Thailand, Singapore, Malaysia, China, India, South Korea,
Australia and other Asian countries. P.T. JSI is still classified as a
medium-sized company in Indonesia and its business operation has been growing
in the last three years.
We
have generally observed the demand for steel products had still been rising by
5% to 7% in the last five years. But the burden of the steel industry in the
country is constrained due to the falling raw material scrap. Besides, the
increased cost of production due to rising gas prices and the higher gas prices
and the higher cost of imported raw materials.
Starting in the second semester 2008, many markets in various parts of
the world experienced adverse economic condition. This condition was triggered
by, amongst others, the housing and mortgage loans crisis in the United States
of America (US) that spread to securities, structures products and commodity
markets. The volatility in the US markets coupled with the sharp appreciation
in the US Dollars and a series of corporate bankruptcies and takeovers enabled
the crisis to spread to other parts of the world. The impact of the global
economic crisis has also been felt in Indonesia as the Indonesian Rupiah
weakened, demand decrease, commodity prices decreased, securities market
declines, interest rate increased, followed by decreases, tightened liquidity
conditions, and increased credit risks. Up to this time, the Company has not
significantly suffered from the economic crisis. In response to these economic
events, during 2010 the Company has plans as follows: Negotiation with main
customer regarding increasing selling price. Cost reduction in business trip,
pantry needs, technical support cost from India, etc. Stop production of
products which do not reach profit target. In spite of the adverse economic
conditions, management believes that the Company will be able to continue
operating as going concern for the foreseeable future.
Indonesia’s Steel Production and Consumption, 2008 – 2011
|
Year |
Production (Million Ton) |
Consumption (Million Ton) |
|
2008 |
5.29 |
7.79 |
|
2009 |
3.71 |
5.65 |
|
2010 |
5.23 |
7.48 |
|
2011 |
6.01 |
8.6 |
|
2012* |
7.02 |
9.5 |
Source: Ministry of Industry,
Processed by ICB
*) Projected
Until
this time P.T. JSI has not been registered with Indonesian Stock Exchange, so
that they shall not obliged to announce their financial statement. The
management of P.T. JSI 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. 285.0 billion rose to Rp. 298.0 billion in 2010
increased to Rp. 312.0 billion in 2011. As from January to June 2012 the sales
turnover has reached at least Rp. 162.5 billion with a net profit of Rp. 16. 0
billion and sales it’s projected to go on rising by at least 5% in 2013. The
company has an estimated total net worth of at least Rp. 235.0 billion. We
observe that P.T. JSI 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. JSI is led by Mr. Rajesh Khosla (52) a professional manager
of India who experienced for more than 15 years in the field of stainless steel
cold rolling milling. He graduated from Punjab Engineering College and reached
(BE) Bachelor Engineering in Metallurgy, 1986-1990. Daily activity he is
assisted by Mr. Umendra Pratap Singh (56) as Director. We observed that
management’s reputation in said business is fairly good. The management of the
company is handled by experienced professional manager having wide relation
with private businessmen of home and overseas as well as with the government
sectors. 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. JINDAL STAINLESS
INDONESIA is sufficiently fairly good for business transaction.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.85 |
|
|
1 |
Rs.88.39 |
|
Euro |
1 |
Rs.72.63 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.