MIRA INFORM REPORT
|
Report Date : |
07.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
P.T. INDORAMA SYNTHETICS Tbk |
|
|
|
|
Formerly Known As : |
P.T. INDO-RAMA
SYNTHETICS |
|
|
|
|
Registered Office : |
Desa Kembang Kuning, Ubrug, Jatiluhur, Purwakarta 41101,
West Java |
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|
|
|
Country : |
Indonesia |
|
|
|
|
Financials (as on) : |
30.09.2011 |
|
|
|
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Date of Incorporation : |
03.04.1974 |
|
|
|
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Com. Reg. No.: |
No. AHU-AH.01.10-16680 |
|
|
|
|
Legal Form : |
Public Listed
Company |
|
|
|
|
Line of Business : |
Integrated
textile Industry |
|
|
|
|
No. of Employees
: |
6,526 |
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$ 36,800,000 |
|
|
|
|
Status : |
Good |
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|
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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 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 |
P.T. INDORAMA SYNTHETICS Tbk
Head Office and Factory I (Integrated Spinning Unit)
Desa Kembang Kuning, Ubrug
Jatiluhur, Purwakarta 41101
West Java
Indonesia
Phones -
(62-264) 200235, 200845, 202311
Fax - (62-264) 200068
Land Area - 18.5 hectares
Building Area - 15,500 sq.
meters
Region - Industrial
Zone
Status - Owned
Factory II (Weaving Unit)
Jalan Raya
Batujajar Km. 5.5
Batujajar,
Bandung
West Java
Indonesia
Phones -
(62-22) 6866611 (Hunting)
Fax - (62-22) 6866911
Land Area - 30,000 sq.
meters
Building Area - 25,500 sq.
meters
Region - Industrial
Zone
Status - Owned
Factory III
Jalan Raya Subang
Km. 6
Cikumpay, Campaka
Purwakarta 41181
West Java
Indonesia
Phones -
(62-264) 210214, 210520
Fax - (62-264) 210514
Land Area - 400,000 sq.
meters
Building Area - 25,000 sq.
meters
Region - Industrial
Zone
Status - Owned
Corporate Office
Graha Irama, 17th
Floor
Jalan H.R. Rasuna
Said X-1 Kav. 1 & 2
Jakarta Selatan,
12950
Indonesia
Phones -
(62-21) 5261555 (Hunting)
Fax - (62-21) 5261501, 5261502
Building Area - 26 storey
Office Space - 2,500 sq.
meters
Region - Commercial
Status - Owned
a. 3 April 1974
as P.T. INDO-RAMA SYNTHETICS
b. 2 July 1997 as
P.T. INDO-RAMA SYNTHETICS Tbk
P.T. Tbk
(Perseroan Terbatas Terbuka) or Public Listed Company
The Ministry of Law and Human Rights
- No. Y.A.5/2/14
Dated 3 January 1975
- No. AHU-17302.AH.01.02.TH.2008
Dated 8 April 2008
- No. AHU-AH.01.10-16680
Dated 2 October 2009
Foreign
Investment (PMA) Company
The Department of Finance
No.
SI.116/SHM/MK.10/1990
Dated 12 June
1990
The President of the Republic of Indonesia
No.
B-22/Pres/2/1974
Dated 21 February
1974
The Capital Investment Coordinating Board
- No.
13/II/PMA/1981
Dated 14 May 1981
- No.
21/II/PMA/1987
Dated 22 April 1987
- No.
34/II/PMA/1987
Dated 20 June 1987
- No.
130/II/PMA/1993
Dated 12 November 2003
- No.
715/III/PMA/2003
Dated 30 June 2003
A Member Company
of the INDORAMA Group (see attachment)
Capital
Structure :
Authorized
Capital : US$
244,849,324.-
Issued Capital : US$
160,217,573.-
Paid up Capital : US$
160,217,753.-
Shareholders/Owners
:
a. P.T. IRAMA INVESTAMA of Indonesia -
US$ 78,507,263.-
b. HSBC FUNDS SERVICES CLIENTS -
US$ 13,819,663.-
c. HSBC PRIVATE BANK (SUISSE) -
US$ 13,819,663.-
d. INDORAMA HOLDINGS (I) PTE, LTD., Singapore - US$ 3,204,273.-
e. Publics -
US$ 50,866,711.-
Lines of
Business :
a. Integrated
textile Industry
b. Investment
Holding
Production
Capacity :
Ubrug Factory
a. Polyester Cotton & Rayon Yarns
(92,000 unit
spindels) - 22,000 tons p.a.
b. Polyester Staple Fibre Chip
and Filament
Yams - 64,000 tons p.a.
c. Grey Fabrics -
12,000,000 mtrs p.a.
d. Nitrogen Gas - 5,616,000
cu.meter p.a.
e. PET Resins - 78,840
tons p.a.
f. Polyester and
Spun Yarn - 84,000 tons p.a.
g. Woven Yarns - 26,560 tons p.a.
h. Dyeing Yarns - 6,000 tons p.a.
i. Spinning Yarns - 4,250 tons p.a.
j. Finished
Fabrics -
52,056,000 meters p.a.
k. Special Yarns - 7,800 tons p.a.
Campaka Factory
a. Spun Yarns
(P/C/R/AC) - 26,100 tons p.a.
b. Polyester
Staple Fibre - 10,800 tons p.a.
c. Polyester
Filaments - 36,100 tons p.a.
Bandung Factory
a. Yarns
- 8,160 tons p.a
b. Grey Fabrics
-
40,000,000 meters p.a.
c. Textile Fabrics -
39,556,000 meters p.a.
Total
Investment :
a. Equity Capital - US$ 32.0 million
b. Reinvested
Profit - US$ 54.1 million
c. Loan Capital - US$ 547.7
million
d. Total
Investment - US$
634.6 million
Started
Operation :
1976
Brand Name :
Indo-Rama
Technical Assistance
:
None
Number of
Employee :
6,526 persons
Marketing Area
:
Domestic (Local) - 65%
Export - 35%
Main Customers
:
a. Industrial
Textiles
b. Buyers in
Singapore, Japan, Australia, Europe Union, the USA, Middle East etc.
Market
Situation :
Very Competitive
Main
Competitors :
a. P.T. INDONESIA
TORAY SYNTHETICS
b. P.T. INDORAMA
POLYSTER INDUSTRY INDONESIA
c. P.T. INDORAMA
VENTURE INDONESIA
d. P.T. TEIJIN INDONESIA FIBER Tbk, Etc.
Business Trend
:
Growing
Bankers :
a. P.T. Bank PAN INDONESIA Tbk
Jalan
Jend. Sudirman Kav. 55
Jakarta Selatan
Indonesia
b. P.T. Bank
INTERNATIONAL INDONESIA Tbk
Plaza BII,
Jalan M.H. Thamrin No. 55
Jakarta Pusat
Indonesia
c. BANGKOK Bank
Jalam M.H.
Thamrin No. 3
Jakarta Pusat
Indonesia
d. AMERICAN
EXPRESS Bank
Jalan H.R. Rasuna Said Kav. X-5
Jakarta Selatan
Indonesia
Auditor :
Osman Ramli
Satrio & Partner
Litigation :
No litigation
record in our database
Annual Sales :
2009 – US$ 489.9
million
2010 – US$ 616.9
million
2011 – US$ 594.4
million (as per 30 September)
Net Profit :
2009 – US$ 11.4
million
2010 – US$ 25.9
million
2011 – US$ 19.0
million (as per 30 September)
Payment Manner
:
Average
Financial Comments :
Satisfactory
Board of
Management :
President Director - Mr. Amit Lohia
Directors -
a. Mr. Vishnu Swaroop Baldwa
b. Mr. Arun Taneja
Board of
Commissioner :
President Commissioner -
Mr. Sri Prakash Lohia
Vice President Commissioner -
Mrs. Seema Lohia
Commissioners -
a. Mrs. Aarti Lohia
b. Mr. Ir. Imam Sucipto Umar
Signatories :
President Director (Mr. Amit Lohia) or one of the Directors (Mr. Vishnu
Swaroop Baldwa or Mr. Arun Taneja) which must be approved by Board of
Commissioners
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$ 36,800,000 on 90 days D/A
P.T. INDORAMA
SYNTHETICS Tbk (P.T. IRST) was established in April 1974 in Purwakarta (West
Java) with an authorized capital of US$ 2,000,000 and an issued capital of US$
400,000 of which US$ 40,000 was paid up. The founders and original shareholders
of the company were Mr. Lekhoomal Pahoomal Tolani (an Indonesian businessman of
Indian descent), Mr. Budiantoro Hartono (an indigenous businessman) and RAMATEX
Ltd. of Hong Kong. In 1988 the two local partners withdrew and were replaced by
P.T. IRAMA UNGGUL, a national private company. In early 1990 the original
foreign partner pulled out and was replaced by BROOKGRANGE INTERNATIONAL
FINANCE Ltd. of the United Kingdom. In June 1990 P.T. IRST went public selling
23% of its shares on the Indonesian Stock Exchange (IEJ). In July 1997, the
company’s authorized capital was increased to US$ 244,849,324 with the issued
and paid up capital amounting to US$ 160,217,573 and concurently behind its name
the words Tbk (listed company) is added to comply with regulation.
In June 2003, one
of sister companies of P.T. IRST namely P.T. INDORAMA TECHNOLOGIES merged into
P.T. INDO-RAMA SYNTHETICS Tbk (surviving company). The deed of amended
was made by Mr. Sutjipto, SH, a public notary in Jakarta, was approved by the
Ministry of Law and Human Right in its Decision Letter No.
AHU-17302.AH.01.02.TH.2008, dated April 04, 2008. The latest according to the
latest revision of notary deed of Mrs. Fathiah Helmi, SH., No. 26 dated 28
August 2009 the board of directors and the board of commissioners reappointed
to lead and run of the company’s operation. The latest revision of notary
documents was approved by the Ministry of Law and Human Rights in its decision
letter No. AHU-AH.01.10-16680 dated October 2, 2009. As per 30 September 2011 the company latest shareholders are P.T.
IRAMA INVESTAMA (49.00%), HSBC FUND SERVICES CLIENTS (8.18%) HHSBC PRIVATE BANK
SUISSE (5.05%), INDORAMA HOLDINGS (I) PTE, LTD (2.00%) and Publics (35.77%).
We note that P.T.
IRST is a member of the INDORAMA Group based in India with its business network
extending to South Asia, Asean and Europe. P.T. IRST operates under Foreign
Invesment (PMA) facilities issued by Capital Investment Coordinating Board
(BKPM) to deal with integrated spinning industry with its mill located on an
18.5 hectare landsite in Purwakarta. In operation since 1976. Initially, the
company just managed two plant located in Kembang Kuning Village, Ubrug,
Jatiluhur, Purwakarta, West Java on a land of 18.5 hectares and at Jalan Raya
Batujajar Km. 5.5, Batujajar, Bandung, West Java. However, since the end 2003
by the merging of its sister company P.T. INDORAMA TECHNOLOGIES, the company
has managed three plants in which one of which is located at Jalan Raya Subang
Km. 6, Cikumpay, Campaka, Purwakarta, West Java. The three plants has been
expanded several times to icnrease their annual production capacities. The
above plants has absorbed an investment of US$ 634.6 million coming from owned
capital of US$ 32.8 million, reinvested profit of US$ 54.1 million and the rest
from loans. Some 65% of the company products is marketed locally and the rest
is for export to the USA, Canada, the UK, Germany, Belgium, Italy, Australia
and other Asian countries.
Besides, P.T.
IRST controls 100% shares of ISIN INTERNATIONAL PTE. LTD., based in Singapore
dealing with general trading, 100% shares of INDORAMA INTERNATIONAL LTD., based
in Cayman Island dealing with investment, 99.999% shares of P.T. INDORAMA
INDUSTRI in Purwakarta, West Java dealing with plantation and mineral mining.
P.T. INDORAMA INDUSTRI has yet to be in commercial operation. P.T. IRST is
classified as a large size company in the country dealing with textile industry
of which the operation has been running smoothly in the last three years.
Generally, the demand for polyester cotton & rayon yarns, polyester staple fiber and others tended to be fluctuating within the last five years in line with the fluctuating of Indonesian textile industry in general. There are eleven domestic dyestuff producers which are still active with a combined production capacity of 45,620 tons per annum. The country’s garment 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
According to the financial statement of P.T. IRST audited by a public
accountant, total sales turnover of the company in 2009 amounted US$ 489.9
million with a net profit of US$ 11.4 million increased to US$ 616.9 million
with a net profit of US$ 25.9 million in 2010. As per 30 September 2011 the
sales turnover amounted at US$ 594.4 million with a net profit of US$ 19.0
million and projected to go on rising by at least 5% in 2012. The payment habit
of 1 to 3 months is running smoothly. The company has never been black listed
by Central Bank (Bank Indonesia) and registered at the count for determines
cases. We observe that P.T. IRST is supported by the INDORAMA Group, a
developing business group 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 condense financial statement is shown.
(Thousand US$)
|
Descriptions |
30September 2011 |
31 December |
|
|
2010 |
2009 |
||
|
A. ASSETS |
|
|
|
|
a. Current Assets |
317,088 |
246,267 |
215,921 |
|
b. Non Current Assets |
359,730 |
319,400 |
329,107 |
|
c. Other Assets |
- |
- |
- |
|
TOTAL ASSETS = TOTAL LIABILITIES & EQUITY |
676,818 |
565,667 |
545,028 |
|
B. LIABILITIES
&STOCKHOLDERS EQUITY |
|
|
|
|
a. Current Liabilities |
298,997 |
226,325 |
193,106 |
|
b. Non Current Liabilities |
72,784 |
50,767 |
96,672 |
|
c. Stockholders Equity : -
Paid Up Capital -
Additional Paid Up Capital -
Retained Earnings Total Stock holders Equity |
160,217 917 132,562 300,424 |
160,217 917 120,004 285,344 |
160,217 917 94,079 255,250 |
|
C. INCOME STATEMENT |
|
|
|
|
a. Sales Net |
594,373 |
616,938 |
489,948 |
|
b. Operating Profit |
18,844 |
26,976 |
4,108 |
|
c. Net Profit (loss) |
19,008 |
25,925 |
11,361 |
Notes: 31
December 2009, and 2010 Audited by Osman Bing Satrio & 30 September 2011 un
audited
The management of P.T. IRST is led by Mr. Amit Lohia (38), an Indian
businessman with broad experienced in the above business. He has a bachelor
degree in economics and finance from the prestigious Wharton School of Business
at the University of Pennsylvania in 1995. He has been a senior executive in
the company since 1996 and worked in various roles. In his daily activities, he
is assisted by Mr. Vishnu Swarop Baldwa and Mr. Arun Taneja as directors.
However the primemover is Mr. Sri Prakash Lohia (60), an Indian businessman
with broad experienced in the above business. Mr. S. P. Lohia has a Bachelor of
Commerce degree from the University of Delhi in 1971. He founded P.T. Indorama
Synthetics along with his father, Mr. M.L. Lohia, in 1976. He has 35 years of
experience in the industry and sits on the boards of various companies of the
Indorama Group. We observed that management’s reputation in said business is
sufficiently fairly good. The company has had wide relation in the realm of the
private businessmen within and outside the country. So far, we did not hear
that the company’s management involved in a dirty business practice 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. INDORAMA SYNTHETICS Tbk is sufficiently fairly good for business
transaction.
Attachment:
List of the
INDORAMA Group Members
1.
ASHOK
TEXTILE Industries, Ltd., Nepal (Textile Industry)
2.
AUTUM
INVESTMENT Ltd., Hong Kong (Holding Company)
3.
BANGADUA
PETROLEUM, P.T. (Oil & Natural Gas Exploration)
4.
BROOKGRANGE
INTERNATIONAL FINANCE LTD., The U.K. (Financing Service)
5.
INDOMULIA
MITRAJAYA, P.T. (Shrimp Culture)
6. INDORAMA CHEMICALS (Thailand) Ltd.,
Thailand (Chemicals Manufacturing)
7. INDORAMA NETHERLANDS BV.,
(Investment Holding)
8. INDORAMA NETHERLANDS COOPERATIEF
U.A. (Investment Holding)
9. INDORAMA POLYESTER INDUSTRIES INDONESIA,
P.T. (Polyester Filament Yarn Industry)
10. INDORAMA PROJECTS AND SERVICES Ltd.,
India (Consulting and Investment Holding)
11. INDORAMA SYNTHETICS (India) Ltd.,
India (Chemicals Manufacturing)
12. INDORAMA SYNTHETICS Tbk, P.T.
(Spinning Mills)
13. INDORAMA VENTURES INDONESIA, P.T.
(Polyester Filament Yarn and Polyester Resin Industry)
14. INDORAMA VENTURES PUBLIC LISTED
LTD,. Thailand (Polyester Filament Yarn Industry)
16.
IRAMA
DINAMIKA LATEX, P.T. (Latex Goods Manufacturing)
17.
IRAMA
UNGGUL, P.T. (Trading and Investment Holding)
18.
ISPAT
INDO, P.T. (Steel Goods Making)
19.
ISPAT
STEEL, P.T. (Sponge Steel Manufacturing)
20.
JAKARTA
MAJU PUSAKA, P.T. (Trading and Suppliers)
21.
LOHIA
INDUSTRIES PVT.,LTD., India (Investment Holding)
22.
MITRABANGUN
GRIYA, P.T. (Office Block Rental Management)
23.
RAMATEX
Ltd., (Hong Kong), (Investment Holding)
24.
SK
WAHANA INTERNATIONAL, P.T. (Textile Industry)
25.
THONBURI
LACE Co. ,Ltd., Thailand (Investment Holding)
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.03 |
|
UK Pound |
1 |
Rs.79.32 |
|
Euro |
1 |
Rs.66.02 |
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.