MIRA INFORM REPORT

 

Report Date :

04.05.2012

 

IDENTIFICATION DETAILS

 

Name :

K. LILARAM JAYA

 

 

Registered Office :

Jl. Slompretan No. 111-113, Surabaya 60161, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

1990

 

 

Legal Form :

Sole Proprietary Company

 

 

Line of Business :

Trading and Distribution of Textile Products

 

 

No. of Employees :

12 persons

 

 

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 – September 30, 2011

 

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

 

K. LILARAM JAYA

 

 

Address

 

Head Office

Jl. Slompretan No. 111-113

Surabaya 60161

East Java

Indonesia

Phone               - (62-31) 3552484, 3521358, 3523482, 3528531

Fax                   - (62-31) 3534470

Building Area     - 3 storey

Office Space      - 240 sq. meters

Region              - Commercial

Status               - Owned

 

Date of Incorporation :

1990’s

 

Legal Form :

Sole Proprietary Company

 

Company Reg. No. :

Not Required

 

Company Status :

Private Company

 

Permit by the Government Department :

The Department of Finance

Not available

 

Related Company :

Not available

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital   - Rp. 1.5 billion

 

Owner :

Mr. Kishinchand Lilaram         - 100%

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading and Distribution of Textile Products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1990

 

Brand Name :

K. Lilaram Jaya

 

Technical Assistance :

None

 

Number of Employee :

12 persons       

 

Marketing Area :

Locals    - 100%

 

Main Customers :

a. Corporate and Individuals

b. Textile Shops in Surabaya and its surroundings

c. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. Toko Kain Anugerah

b. Toko Timor Jaya

c. Toko Citra Busana

d. Toko Indah Serasi

e. Toko Sutra Lestari

f.  Toko Cantik Nian

g. Etc.

 

Business Trend :

Growing

 

 

 

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. P.T. Bank CENTRAL ASIA Tbk

    Jl. Veteran No. 18-24

    Surabaya, East Java

    Indonesia

b. P.T. Bank MANDIRI Tbk

    Jl. Basuki Rachmat No. 129-131

    Surabaya, East Java

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp .29.0 billion

2010 – Rp. 32.3 billion

2011 – Rp. 36.5 billion

 

Net Profit (estimated) :

2009 – Rp. 1.4 billion

2010 – Rp. 1.6 billion

2011 – Rp. 1.8 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                         - Mr. K. Lilaram

Sales Manager  - Mr. Prakash

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. K. Lilaram) 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

 

 

OVERALL PERFORMANCE

 

K. LILARAM JAYA or Toko K. LILARAM JAYA was incorporated in Surabaya, East Java in 1990’s with the status of Sole Proprietary Company. The company was founded by Mr. Kishinchand Lilaram AKA K. Lilaram, an Indonesian businessman of Indian origin.   As in common in cases of companies with Sole Proprietorship status, there is no mention in the company’s notary act of its capital structure.  But going by the company’s conditions, we estimate its capital at some Rp. 1.5 billion.  But we have strong reason to believe that the capital invested in the company is now much bigger.

 

K. LILARAM JAYA is a private company dealing with trading and distribution of textile products. Mr. Prakash, a sales manager of the company explained that K. LILARAM JAYA sells various textile products such as silk, cotton, 100% polyester fabric for ladies wear, cotton carded, rayon, cotton combed, TC combed and others.  The products are imported from Singapore, China, Japan, Hong Kong and others. The whole product are sold and supplied to corporate and individuals and textile shops and dealers in Surabaya (East Java) and it surroundings.  We notice that K. LILARAM JAYA is a classified as a large sized company of its kind in the country of which the operation has been growing in the last three year.

 

In overall we find the demand for textile products has been rising by the average 7% to 8% per year within the last five years in line with the growth of supermarkets, hypermarkets and Indonesian people’s purchasing power.  But since the global economic crisis and tight money policy being imposed by Bank Indonesia in October 2008 the demand was decreased within due to a poor economic condition, decreasing income per capita and a weak in public purchasing power. The demand was increasing in the early 2009 due to economic condition was gradually recovery in the country. The growth rate is now estimated at 5% to 6% per year. Market competition is very tight due to a large number of similar companies operating in the country.

 

 

 

Until this time K. LILARAM JAYA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of K. LILARAM JAYA is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated that total sales turnover of the company in 2009 amounted to Rp. 29.0 billion increased to Rp. 32.3 billion in 2010 and rose again to Rp. 36.5 billion in 2011 and  projected to go on rising by at least 8% in 2012.  The operation in 2011 yielded an estimated net profit at least Rp. 1.8 billion and the company has an estimated total networth at Rp. 5.0 billion.  So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of K. LILARAM JAYA is led by Mr. K. Lilaram (53) a businessman with more than about 20 years experience in trading and distribution of textile products especially silk, cotton and 100% polyester fabrics for ladies.  In daily activities he is assisted by Mr. Prakash (35) as marketing manger.  The company's management is also handled by professional staffs 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.

 

K. LILARAM JAYA is appraised to be good for business transaction. However, in view of the unstable political and economic condition in the country we recommend to treat prudently in extending a loan to the company.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.23

UK Pound

1

Rs.86.14

Euro

1

Rs.69.98

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.