MIRA INFORM REPORT

 

 

Report Date :           

09.03.2012

 

IDENTIFICATION DETAILS

 

Name :

C.V. BADJATEX

 

 

Registered Office :

Jalan Citepus No. 5, Moh. Toha Km. 6.5, Deyeuhkolot, Cisirung, Bandung 40256, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

27.06.1975

 

 

Com. Reg. No.:

Not Available

 

 

Legal Form :

Partnership with Sleeping Partner

 

 

Line of Business :

Textile (Weaving) Industry

 

 

No. of Employees :

960

 

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

 

Maximum Credit Limit :

US$ 12.9 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

 

C.V. BADJATEX

 

 

company Address

 

Head Office & Factory

Jalan Citepus No. 5

Moh. Toha Km. 6.5

Deyeuhkolot, Cisirung

Bandung 40256

West Java

Phones             - (022) 5203033 (hunting)

Fax                   - (022) 5203040

E-mail               - badjabdg@badjatex.com

Land Area         - 30,000 sq. meters

Building             - 18,500 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

27 June 1975

 

 

Legal Form

 

C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partner

 

 

Company Reg. No.

 

Not Required

 

 

Company Status

 

Domestic Investment Company (PMDN)

 


Permit by the Government Department

 

The Investment Coordinating Board

  a. No. B-103/A/Sp.01/BKPM/XII/1975

      Dated 29 December 1975

  b.  No. 133/II/PMDN/1989

Dated 31 August 1989

  c.  No. 227/II/PMDN/1994

Dated 22 August 1994

 

Related Company :

PT. MALAKASARI (Spinning Mills)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 220 billion

 

Owners :

a. Mr. Rustandi Jusuf AKA Jong Tjoeng Hoa  (active partner)

b. Mr. Thomas Jusuf AKA Jong Tjoeng Kik  (inactive partner)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Textile (Weaving) Industry

 

Production Capacity :

  A.  Initial plant

      a. Denim (Jeans)                        -  6,000,000 yards p.a.

      b. Suiting Cottons                      -  4,000,000 yards p.a.

      c. Rayon Yarns                          - 10,000,000 mtrs. p.a.

      d. T/C Yarns                              -   5,200,000 mtrs. p.a

 

  B. Expansion plant (1989)

      a. Rayon Fabrics                       - 10,800,000 mtrs. p.a.

      b. T/C Fabrics                            -   5,200,000 mtrs. p.a.

 

  C. Expansion Plant (1994)

      a. Finishing Fabrics                    - 20,000,000 mtrs. p.a.

      b. Grey Fabrics                          - 20,000,000 mtrs. p.a.

 

Total Investment :

  A. Initial plant

      Owned Capital                           - 190.0 billion              

 

  B. Expansion plant (1989)            

      a. Reinvested Profit                    - Rp   0.3 billion

      b. Loan Capital                          - Rp 31.7 billion

      c. Total Investment                     - Rp 32.0 billion

 

C. Expansion plant (1994)

      a. Reinvested Profit                    - Rp  0.8 billion

      b. Loan Capital                          - Rp 66.3 billion

      c. Total Investment                     - Rp 67.1 billion

 

Started Operation :

1975

 

Brand Name :

BADJATEX

 

Technical Assistance :

None

 

Number of Employee :

960 persons                                   

 

Marketing Area :

a. Local   - 70%

b. Export  - 30%

 

Main Customers :

a. P.T. BALIWIG GARMENT

b. P.T. INDO PANCA GARMENTS

c. P.T. BLATINDO GARMENT

d. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. TRISULATEX

b. P.T. SIPUTEX

c. P.T. GUNAWANTEX

d. P.T. BINTANG TERANG TEXTILE

e. Etc.

 

Business Trend :

Growing

 

 


BANKER, AUDITOR & LITIGATION

 

Bankers :

  a.  P.T. Bank MANDIRI Tbk

      Bandung Branch

      West Java

      Indonesia

  b. P.T. Bank NEGARA INDONESIA Tbk

      Bandung Branch

      West Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 820.0 billion

2010 – Rp. 880.0 billion

2011 – Rp. 940.0 billion

 

Net Profit (estimated) :

2009 – Rp. 36.0 million

2008 – Rp. 39.0 million

2009 – Rp. 42.5 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Tedja Kusuma

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. Tedja Kusuma) is only the authorized person to sign the loan on behalf of the company

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :    

Small amount – periodical review

 

Maximum Credit Limit :

US$ 12.9 million on 90 days D/A

 

 

OVERALL PERFORMANCE

 

C.V. BANDUNG DJAYA TEXTILE MILLS (C.V. BADJATEX) was established in 1975 with the legal status of C.V. (Commanditaire Vennootschap) or partnership by Mr. Rustandi Jusuf AKA (also known as) Jong Tjoeng Hoa and his younger brother Mr. Thomas Jusuf AKA Jong Tjong Kik. They are an Indonesian business family of Chinese extraction.  As partnership status company, C.V. BADJATEX capital was not mentioned in its deed of establishment but we estimated that the company capital at present is about Rp 220.0 billion. C.V. BADJATEX is affiliated with P.T. MALAKASARI, operating in the spinning industry.

 

C.V. BADJATEX has been in operation since 1977 in textile industry by initially producing polyester suiting and voile. The company manages a plant located at Jalan Citepus No. 5, Moh. Toha, Km. 6.5, Deyeuhkolot, Cisirung, Bandung, West Java on a land of 30,000 square meters. Initially, the plant had annual production capacity of just 6.0 million yards of Denim (Jeans), 4.0 million yards of Suiting Cottons, 10.0 million mtrs of Rayon Yarns and 5.2 million mtrs of T/C Yarns. In August 1989, C.V. BADJATEX gained a permit from BKPM to expand its plant to increase its annual production capacity to 10.8 million mtrs of Rayon Yarns and 5.2 million mtrs of T/C Yarns. The expansion of its new plant has absorbed an investment of Rp. 32.0 billion coming from reinvested profit of Rp. 0.3 billion and the rest from loans. In August 1994, C.V. BADJATEX obtained a license from BKPM to expand its plant to increase its annual production capacity to 20.0 million mtrs of finished fabrics and 20.0 million mtrs of grey fabrics of 20.0 million meters per year respectively. The development has absorbed an investment of Rp 67.1 billion coming from reinvested profit of Rp 0.8 billion and the remainder from loans. Mrs. Bea marketing manager disclosed that her company has regular customers in garment companies among others are P.T. BALIWIG GARMENT, P.T. INDO PANCA GARMANETS, P.T. BLATINDO GARMENT, Perusahaan Koperasi GARUDA MAS and others. The company diversified its business in 1989 to rayon and T/C fabrics with 10.8 million meters of raven fabrics and 5.2 million meters of T/C fabrics respectively. C.V. BADJATEX has also succeeded in exporting 30% of its products to several European countries and the USA.  We observed that C.V. BADJATEX 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.

 

Generally, demand for textile and textile products, including polyester textured yarn, finished fabrics, garment, textile chemicals and raw materials have been fluctuating in the last five years.  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 to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393,400 tons (US$ 5,735.6 million) in 2009 and rose again to 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 1,477.800 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 declined to 1,312,200 tons (US$ 4,127.9 million) in 2008 to 1,369,600 tons (US$ 3,602.8 million) in 2009 and rose again to 1,525,900 tons (US$ 4,721.8 million) in 2010.

 

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 C.V. BADJATEX has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of C.V. BADJATEX 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. 820.0 billion increased to Rp. 880.0 billion in 2010 rose again to Rp. 940.0 billion in 2011 and projected to go on rising by at least 6% in 2012. The operation in 2011 yielded an estimated net profit of at least Rp. 42.5 billion and the company has an estimated total net worth of at least Rp. 220.0 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 company's management is headed by Mr. Rustandi Jusuf AKA Jong Tjoeng Hoe (65) and his younger brother Mr. Thomas Jusuf AKA Jong Tjong Kik (64), both with more than 34 years of experience in the textile industry. The management is known to have shown ability to maintain operations in the lately very tightly competitive market situation. They get back-up from many home and expatriate expert managers. They are also widely connected in private business circles at home and overseas, while maintaining 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.

 

C.V. BADJATEX is appraised a good enough for business transaction. But owing to economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.57

UK Pound

1

Rs.79.57

Euro

1

Rs.66.50

 

 

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.