MIRA INFORM REPORT

 

 

Report Date :           

25.01.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. ELEGANT TEXTILE INDUSTRY

 

 

Registered Office :

Menara Batavia, 16th Floor, Jl. K.H. Mas Mansyur Kav. 126, Jakarta 10220

 

 

Country :

Indonesia

 

 

Date of Incorporation :

15.09.1973

 

 

Com. Reg. No.:

No. AHU-34772.AH.01.02.Tahun 2008

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Textile (Spinning Mills) Industry

 

 

No. of Employees :

2200

 

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$ 22.0 million

Status :

Good

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 – September 30th, 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

Restricted

 

C2

Off-credit

 

D

 

Name of Company

 

P.T. ELEGANT TEXTILE INDUSTRY

 

 

company Address

 

Head Office 

Menara Batavia, 16th Floor

Jl. K.H. Mas Mansyur Kav. 126

Jakarta 10220

Indonesia

Phones             - (62-21) 572 2442 (hunting)

Fax                   - (62-21) 572 7177

Email                - jkt.pte.@adityabirla.com

Building Area     - 32 storey

Office Space      - 240 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Desa Ubrug, Jatiluhur

Purwakarta, West Java

Indonesia

Phones             - (62-264) 202151 (hunting)

Fax                   - (62-264) 201047

Land Area         - 11.0 hectares

Building Space  -   1.2 hectares

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

15 September 1973

 

 

Legal Form

 

P.T. (Perseroan Terbatas) or Limited Liability Company

 

Company Reg.No.

 

The Ministry of Law and Human Rights

No. AHU-34772.AH.01.02.Tahun 2008

Dated 20 June 2008

 

 

Company Status

 

Foreign Investment Company (PMA)

 

 

Permit by the Government Department

 

a. The Department of Finance

    NPWP No. 01.001.773.9-057.000

 

b. The President of the Republic of Indonesia

    No. B-64/Pres/7/1972

    Dated 15 July 1972

 

c. The Department of Finance

    - No. 337/A/BKPM/III/1974

     Dated 30 March 1974

-  No. 620/III/PMA/2001

  Dated 22 May 2001

 

 

Affiliated/Associated Company

 

A member of the ADITYA BIRLA Group

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - US$. 3,150,000

Issued Capital                                  - US$. 1,100,000

Paid up Capital                                - US$. 1,100,000 

 

Shareholders/Owners :

a. P.T. BEKTI INDUSTRIAL DEVELOPMENT of Indonesia - US$. 246,950 (22.45%)

b. BIRLA GROUP HOLDING PTE. LTD., of India                           - US$.   63,000 (  5.73%)

c. WHOLTON COMPANY LTD., of British Virginia                        - US$. 265,000 (24.09%)

d. SALAKO LIMITED of British Virginia                                        - US$. 187,240 (17.02%)

e. EVERLON INTERNATIONAL Holdings Ltd., of British Virginia    - US$. 184.210 (16.75%)

f.  THE PEARL FOUNDATION of Switzerland                               - US$.   38,400 (  3.49%)

g. TRADE KNOT INVESTORS Inc., of Panama                             - US$.   76,800 (  6.98%)

h. THE GOLD FOUNDATION of Switzerland                                 - US$.   38,400 (  3.49%)           

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Textile (Spinning Mills) Industry

 

Production Capacity :

a. Rayon, Polyester Viscose

    Blended and Acrylic Yarns      - 136,500 bales p.a.

b. Spun Yarns                           -   21,600 bales p.a.

 

Total Investment :

a. Equity Capital            - US$.   3.2 million

b. Reinvestment Profit    - US$    5.0 million

c. Loan Capital              - US$. 80.1 million

d. Total Investment         - US$. 88.3 million

 

Started Operation :

1975

 

Brand Name :

ELEGANT TEXTILE

 

Technical Assistance :

None

 

Number of Employee :

2,200 persons

 

Marketing Area :

a. Local       - 20%

b. Export     - 80%

 

Main Customers :

a. Textile and Garment Manufacturing Industries

b. Overseas buyer in Japan, Korea, Belgium, Greece, Italy, Spain, turkey and the USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. South Pacific Viscose

b. PT. Indo Bharat Rayon

c. PT. Sunrise Bumi Textile

d. PT. Indorama Syntetic Tbk.

e. PT. Sinar Padasuka Textile

f.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. P.T. Bank MANDIRI Tbk

    Imam Bonjol Branch

    Jl. Imam Bonjol No. 61

    Jakarta Pusat

    Indonesia

 

b. The Hongkong and Shanghai Banking Corp. Ltd.

    World Trade Center, 3rd Floor

    Jl. Jend. Sudirman Kav. 29-31

    Jakarta Selatan

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Total Income/Revenue (estimated) :

2009 – Rp. 1,280.0 billion

2010 – Rp. 1,430.0 billion

2011 – Rp. 1,620.0 billion

 

Net Profit (estimated) :

2009 – Rp. 58.0 billion

2010 – Rp. 65.0 billion

2011 – Rp. 73.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Chand Ratan Dugar

Director s                                  - a. Mr. Mahaveer Prasad Jain

                                                  b. Mr. Saji Mathew George

                                                  c. Mr. Arvind Gupta

                                                  d. Mr. Satish Chand

                                                  e. Mr. Resdinal, SE.

                                                  f.  Mr. Lingam Nattamai

                                                  g. Mr. Dipak Kumar Bose

 

Board of Commissioner :

President Commissioner    - Mr. Shyam Sunder Mahansaria

Commissioners                          - a. Mr. Kumar Mangalam Birla

                                                  b. Mrs. Rajashree Birla

                                                  c. Mrs. Neerja Birla

                                                  d. Mr. Vijay Kumar Kirtilal Mehta

                                                  e. Mr. Chandur Hassaram mahtani

                                                  f.  Mr. Vikash Chandur Mahtani

 

Signatories :

President Director (Mr. Chand Ratan Dugar) or one of the Directors (Mr. Mahaveer Prasad Jain, Mr. Saji Mathew George, Mr. Arvind gupta, Mr. Satish Chand, Mr. resdinal, Mr. Lingam Nattamai and Mr. Dipak Kumar Bose) which must be approved by Board of Commissioners

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be processed with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

Maximum Credit Limit :

US$ 22.0 million on 90 days D/A

 

OVERALL PERFORMANCE

 

P.T. ELEGANT TEXTILE INDUSTRY was established in 1973 with an authorized capital of US$ 3,150,000.- and an issued capital of US$ 1,100,000.- wholly paid up. The company was founded by P.T. BEKTI INDUSTRIAL DEVELOPMENT of Indonesia and the CENTURY SPINNING & MANUFACTURING COMPANY Ltd., of Hong Kong as the original shareholders.  The Article of Association was made by DR. Amrul Partomuan Pohan, SH., notary public in Jakarta  and it was approved by the Minister of Law and Human Rights through Decision Letter No. Y.A. 5/115/13 dated April 11, 1974. 

 

The company’s Articles of Association have frequently been changed.  Pursuant to the latest amendment to Articles of Association on June 2, 2008 the company’s shareholders are PT. Bekti Industrial Development of Indonesia (22.45%), Birla Group Holdings Pte. Ltd., of India (5.73%), Wholton Company Ltd., of British Virginia (24.09%), Salako Limited of British Virginia (17.02%), Everlon International Holdings Ltd., of British Virginia (16.75%), The Pearl Foundation of Switzerland (3.49%), Trade Knot Investors Inc., of Panama (6.98%) and The gold Foundation of Switzerland (3.49%). The latest amendment to Articles of Association was made by Ms. Grace Parulian Hutagalung, SH., a notary public in Jakarta based on natarial deed No. 05, was approved by the Minister of Law and Human Rights through Decision Letter No. AHU-34772.AH.01.02.Tahun 2008 dated June 20, 2008. No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. ELEGANT TEXTILE INDUSTRY (P.T. ETI) operates under Foreign Investment (PMA) facilities issued by the Investment Coordinating Board (BKPM) in the spinning industry. The company has been in commercial operation since 1975 with its plant located on a some 11.0 hectare landsite in Desa Ubrug, Jatiluhur, Purwakarta (West Java). The plant has been expanded several times, and as of June 1994 its production capacity amounted to 136,500 bales of rayon, polyester viscose blended, acrylic and spun yarns per year.  In July 1996 the plant was to be expanded again to produce 21,600 bales of spun yarns per year.

 

Initially, the company started operation with 14,080 spindles.  Today, they have over 144,000 spindles producing one of the best synthetic ring-spun yarns in the world.  The company’s commodity products are 100% Spun Viscose Rayon Yarn Bright, 100% Spun Viscose Rayon Yarn Semi-Dull, 100% Spun Polyester Yarn and Polyester/Viscose (Semi-Dull/Bright) Blend (65/35, 52/48).  Beside, the company produces specialty products such as Polyester/Viscose (Semi-Dull/Semi-Dull) Blend (65/35), Viscose/Polyester (Bright/Semi-Dull) Blend (30/70), Micro Polyester Semi-Dull, Micro Viscose Bright (Micro Rayon), High – Twist Yarn (Crepe – Twist Yarn), etc.  Some 80% of the company's production is exported to Japan, Korea, Belgium, Greece, Italy, Spain, Turkey and the USA, with the remaining 20% being supplied to local textile industries.  P.T. ETI is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.

 

The management is very reclusive and unlikely to expose its financial condition to outsider. But we estimate the total sales turnover of the company in 2009 amounted to Rp 1,280.0 billion increased to Rp 1,430.0 billion in 2010 rose again to Rp 1,620.0 billion in 2011 and projected it will be higher by 7% to 8% in 2012. The operation in 2011 yielded an estimated net profit at Rp. 73.0 billion and the company has a total networth of Rp 950.0 billion. Based on information obtained from some customers, the payment habit of the company is smooth ranging from 1 to 3 months. We did not hear that the company has been black listed by Central Bank (Bank Indonesia) or having detrimental cases being settled in the courts.

 

The management is headed by Mr. Chand Ratan Dugar (59), a well-experienced professional manager of India in spinning mill and spurn yarn industry and trade. In daily operation he is assisted by 7 directors namely Mr. Mahaveer Prasad Jain (44), Mr. Saji Mathew George (55), Mr. Arvind Gupta (46), Mr. Satish Chand (61), Mr. Resdinal, SE (49), Mr. Lingam Nattamai (57) and Mr.  dipak Kumar Bose (50).  The management is handled by professional managers, locals and expatriates, with know-how in the above business. They are widely connected in domestic and foreign private business circles and also have good relations with the government sector.

 

So far, we did not hear that the company’s management involved in the 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.  P.T. ELEGANT TEXTILE INDUSTRY is appraised quite good for normal business transactions.

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.97

UK Pound

1

Rs.77.74

Euro

1

Rs.65.09

 

 

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.