MIRA
INFORM REPORT
|
Report Date : |
09.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
P.T. JINDAL STAINLESS INDONESIA |
|
|
|
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Registered Office : |
Kawasan Industri Maspion V Jalan Alpha, Desa Sukomulyo – Manyar Gresik, 61151 East Java |
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|
|
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Country : |
Indonesia |
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|
|
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Date of Incorporation : |
06.08.2004 |
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|
|
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Com. Reg. No.: |
No. AHU-AH.01.10-15501 |
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|
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Legal Form : |
Limited Liability Company |
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|
|
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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 : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
US$ 3,500,000 |
|
Status : |
Good |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Indonesia |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Name of Company
P.T. JINDAL
STAINLESS INDONESIA
Address
Head Office
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
Registration data
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 AND OWNERSHIP
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
BUSINESS ACTIVITIES
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
BANKER, AUDITOR & LITIGATION
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
FINANCIAL FIGURE
Annual Sales (estimated)
:
2009 – Rp. 285.0
billion
2010 – Rp. 298.0
billion
2011 – Rp. 312.0
billion
Net Profit
(estimated) :
2009 – Rp. 25.6
billion
2010 – Rp. 26.8
billion
2011 – Rp. 28.1
billion
Payment Manner
:
Average
Financial
Comments :
Satisfactory
KEY EXECUTIVES
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
CAPABILITIES
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded with monitor
Proposed Credit
Limit :
Small amount –
periodical review
Maximum Credit Limit :
US$ 3,500,000 on
90 days D/A
OVERALL PERFORMANCE
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 has
acquired Stainless Steel Cold Rolling plant in Indonesia from P.T. Maspion
Stainless Steel. Jindal Stainless 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 since then the demand dropped drastically due to
economic crisis occurred in the country. A large number of property and
construction projects totally discontinued due to financial difficulties.
Besides, a sharp Rupiah depreciation and higher rate of bank interest have
worsened the property and construction business causing the demand for building
materials including steel products plunged as well.
The global
economic crisis has made the local market demand for steel billet and
reinforcement bars to drop drastically. A sharp Rupiah depreciation against
US$, EURO, Yen and other hard foreign currencies has made the price of basic
materials to hike in Rupiah causing the production cost very expensive. While
the export of steel to ASEAN countries to face hard competition from China and
India, and over supply is found in the international market. The sharp
competition invited unfair competition as reflected in many dumping cases
occurred, so far. A number of steel factories are now considering to laid off
part of their workers as the steel industry has been jolted by the commodity
price fall in international market and rampant illegal imports disrupting
stability of the domestic market. The capacity utilization of the country’s steel
industry has plunged to only 25%-50% in the past six months.
Iron and Steel
Production, 2000 – 2009*
|
Year |
Production (Ton) |
||||
|
Light Profile Iron |
Billet |
Wire Rod |
Slab |
Sponge Iron |
|
|
2000 |
195,599 |
1,817,411 |
594,180 |
1,431,895 |
1,469,814 |
|
2001 |
232,446 |
2,420,836 |
660,208 |
1,217,271 |
1,486,859 |
|
2002 |
260,775 |
2,268,218 |
675,250 |
1,193,638 |
1,446,300 |
|
2003 |
250,246 |
2,042,191 |
628,356 |
1,000,042 |
1,170,984 |
|
2004 |
382,223 |
2,168,727 |
780,002 |
1,213,138 |
1,435,895 |
|
2005 |
380,521 |
2,038,720 |
701,895 |
1,266,714 |
1,267,679 |
|
2006 |
416,755 |
2,031,201 |
716,985 |
1,625,890 |
1,198,300 |
|
2007 |
445,928 |
2,071,825 |
731,305 |
1,739,715 |
1,200,666 |
|
2008 |
477,143 |
2,113,261 |
753,244 |
1,774,509 |
1,230,683 |
|
2009 |
510,543 |
2,155,526 |
770,569 |
1,809,999 |
1,268,989 |
Source: Central
Bureau of Statistic and Processes by ICB
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 and projected to go on rising by at least 5% in 2012.
The operation in 2011 yielded an estimated net profit of at least Rp. 28.1
billion and 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.49.07 |
|
|
1 |
Rs.78.09 |
|
Euro |
1 |
Rs.65.15 |
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.