MIRA INFORM REPORT

 

 

Report Date :

11.07.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. EMBROITEX JAYA

 

 

Registered Office :

Jalan Raya Driyorejo 173 A, Driyorejo, Gresik, 61177, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

07.11.2000

 

 

Com. Reg. No.:

No. AHU-37929.AH.01.02.TH.2008

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Embroidery Manufacturing

 

 

No. of Employees :

127 employees

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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. EMBROITEX JAYA

 

 

company Address

 

Head Office & Factory

Jalan Raya Driyorejo 173 A

Driyorejo, Gresik, 61177

East Java

Indonesia

Phones             - (62-31) 7507076 (Hunting) 

Fax                   - (62-31) 7507230

E-mail               - sgalvankar@yahoo.com

Land Area         - 7,000 sq. meters

Building Space  - 4,500 sq. meters

Region              - Industrial Zone

Status               - Rent

 

 

Date of Incorporation

 

7 November 2000

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. C-11061 HT.01.01.TH.2001

  Dated 9 October 2001

- No. AHU-37929.AH.01.02.TH.2008

  Dated 3 July 2008

 

 

Company Status

 

Private National Company

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 02.010.743.9-612.000

 

The Department of Industry and Trade

TDP No. 130211700469

Dated 20 January 2006

 

 

Related Company

 

P.T. EMBROTAMA INDOTEX (Laces Manufacturing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 5,000,000,000.-

Issued Capital                                  : Rp. 1,250,000,000.-

Paid up Capital                                : Rp. 1,250,000,000.-

 

Shareholders/Owners :

a. Mr. Galvankar Dattaram Keshavrao                             - Rp. 1,062,500,000.-

    Address : Jl. Gayung Kebonsari 06/02, RT. 001 RW. 005

                    Kelurahan Ketintang, Kecamatan Gayungan

                    Surabaya, East Java

                    Indonesia

b. Mr. Siddharth Dattaram Galvankar                                 - Rp.      62,500,000.-

    Address : Jl. Gayung Kebonsari 06/02, RT. 001 RW. 005

                    Kelurahan Ketintang, Kecamatan Gayungan

                    Surabaya, East Java

                    Indonesia

c. Mrs. Suhasini Dattaram Galvankar                               - Rp.      62,500,000.-

    Address : Jl. Gayung Kebonsari 06/02, RT. 001 RW. 005

                    Kelurahan Ketintang, Kecamatan Gayungan

                    Surabaya, East Java

                    Indonesia

d. Mrs. Galvankar Tejal Dattaram                                    - Rp.      62,500,000.-

    Address : Jl. Gayung Kebonsari 06/02, RT. 001 RW. 005

                    Kelurahan Ketintang, Kecamatan Gayungan

                    Surabaya, East Java

                    Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Embroidery Manufacturing

 

Production Capacity :

a.   Embroidery Fabrics                    - 1,200,000 meters p.a.

b.   Tricot Fabrics                            -    300,000 meters p.a.

 

Total Investment :

Owned Capital                                 - Rp. 5.0 billion

 

Started Operation :

2001

 

Brand Name :

Embroitex Jaya

 

Technical Assistance :

None

 

Number of Employee :

127 persons

 

Marketing Area :

Export      - 70%

Local       - 30%

 

Main Customer :

Buyers in Middle East, Africa, India, China and others

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BITRATEX INDUSTRIES

b. P.T. JASA MULIA EMBROIDERY

c. P.T. ORIENTAL EMBROIDERY

d. P.T. YULIA INDAH TEX

e. Etc.

 

Business Trend :

Growing

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank PANIN Tbk

      Jalan R.A. Kartini No. 218

      Gresik, East Java

      Indonesia

b.   P.T. Bank SBI INDONESIA

      Jalan Rajawali No. 51 C

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 23.0 billion

2010 – Rp. 24.3 billion

2011 – Rp. 25.8 billion

 

Net Profit (estimated) :

2009 – Rp. 1.8 billion

2010 – Rp. 2.0 billion

2011 – Rp. 2.3 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Galvankar Dattaram Keshavrao

 

Board of Commissioners :

President Commissioner                   - Mr. Siddhart Dattaram Galvankar

Commissioner                                 - Mrs. Galvankar Tejal Dattaram

Signatories :

Director (Mr. Galvankar Dattaram Keshavrao) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

P.T. EMBROITEX JAYA (P.T. EJ) was incorporated in Gresik, East Java, Indonesia based on notary deed of Mrs. Shinta Ameliawaty, SH., No. 25 dated 7 November 2000 with the authorized capital of Rp. 5,000,000,000 issued capital of Rp. 1,250,000,000 entirely paid up. The founding shareholders of the company are Mr. Galvankar Dattaram Keshavrao, his wife Mrs. Suhasini Dattaram Galvankar and Mr. Siddharth Dattaram Galvankar, they are Indonesian businessmen of India citizenship. The company deed has been changed a couple of times and according to the latest revision of notary documents of Mrs. Julia Seloadji, SH., No. 126 dated 28 May 2008, his daughter Mrs. Galvankar Tejal Dattaram entered into the company as new shareholder. With this time the composition of its shareholders has been changed to become Mr. Galvankar Dattaram Keshavrao (85%), Mrs. Suhasini Dattaram Galvankar (5%), Mr. Diddharth Dattaram Galvankar (5%) and Mr. Galvankar Tejal Dattaram (5%). The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-37929.AH.01.02.TH.2008 dated July 3, 2008.

 

P.T. EJ is a private national company which operating since 2001 to be engaged in the field of embroidery manufacturing by managing a plant located at Jalan Raya Driyorejo No. 173 A, Driyorejo, Gresik, East West Java on a land of 7,000 sq. meters. The plant produced embroidery fabrics of 1,200,000 meters and tricot fabrics of 300,000 meters respectively per annum. Some 70% of products is exported based on order from buyers in the Middle East, Africa, India, China and others. Previously they also exported some of the product to Singapore, Bangladesh, Chittagong, Pakistan, but since the end of 2009 the product exported to the Middle East, Africa, India, and China. Some of the basic materials bought from locals and the rest imported from India and China. The sharp Rupiah depreciation against in US$ has brought good impact to the company because 70% of the product is exported. Meanwhile, the local TPT (textile and Textile Products) industries and other factors causing the declining competitive ability of the national TPT products are the increasing production costs, high interest rates, expensive customs office costs, illegal retribution, textile and garment machinery restructuring cost and the rising prices of production components (oil fuel prices and electric base tariffs). We see the operation of P.T. EJ has been declining in the last three years. 

 

The country’s garment and textile industry is facing serious marketing problem not only in the country but also abroad. According to the Central Bureau of Statistics (BPS) 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 rose to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393.400 tons (US$ 5,735.6 million) in 2009 and 445,200 tons (US$ 6,598.0 million) in 2010. The Indonesia 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 1,477.8 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 decrease to 1,312.2 tons (US$ 4,127.9 million) in 2008 rose to 1,369.6 tons (US$ 3,602.8 million) in 2009 and to 1,525.9 tons (US$ 4,721.8 million) in 2010.

 

The domestic textile producers are pessimism the textile export in 2009 could match the export numbers in 2008. The blow of the global economic crisis is resulted in the reduced of demand from the export destination countries like the United States (U.S.), Japan, and European Union region. The Export Textiles and the Textile Products (TPT) in 2009 is predicted to fall to 10.2 percent compared to the last year. In the year 2008 the export value reached 10.8 billion US dollars. While this year’s the exports expected fall into US$ 9.7 billion. The Chairman of the Indonesian Textile Association (API), Mr. Benny Soetrisno said that the decline in global purchasing power caused of the demand in the Indonesian textile products could not be able to grow as tight as 2008. The export volume and value of the national TPT products in 2002 to 2010 are pictured on the following table.

 

      Year

Garment

Textile Products

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

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

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

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

Source: Central Bureau of Statistic     

 

Until this time P.T. EJ has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. EJ 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. 23.0 billion rose to Rp. 24.3 billion in 2010 increased to Rp. 25.8 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. 2.3 billion and the company has an estimated total networth of at least Rp. 5.0 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.  

 

The management of P.T. EJ is led by Mr. Galvankar Dattaram Keshavrao (64) a businessman and professional manager of India with experience in embroidery manufacturing and trading. The company's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. 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. EMBROITEX JAYA is sufficiently fairly good for business transaction.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.81

UK Pound

1

Rs.86.53

Euro

1

Rs.68.58

 

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%)

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