MIRA INFORM REPORT

 

 

Report Date :

16.05.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. HOME DECOR

 

 

Formerly Known As :

HOME DÉCOR

 

 

Registered Office :

Jl. R.S. Fatmawati No. 5C-D Jakarta Selatan 12140

 

 

Country :

Indonesia

 

 

Year of Establishment :

1994

 

 

Com. Reg. No.:

No. AHU-57726.AH.01.02.Tahun 2009

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading and Distribution of Upholstery, Carpet, Curtain, Wall Paper, Lace Curtain, Rugs, Sofa and other 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 – 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. HOME DECOR

 

 

Address

 

Head Office

Jl. R.S. Fatmawati No. 5C-D

Jakarta Selatan 12140

Indonesia

Phone               - (62-21) 7224729, 7224248, 7224252

Fax                   - (62-21) 7393391

Email                - homedec@dnet.net.id

Building Area     - 4 storey

Office Space      - 320 sq. meters

Region              - Commercial

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

1994 as HOME DÉCOR (a sole proprietorship), changed its name to P.T. HOME DÉCOR (limited liability company) on October 2009.

 

Legal Form :

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

 

Company Reg. No. :

The Department of Law and Human Rights

No. AHU-57726.AH.01.02.Tahun 2009

Dated 25 November 2009

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.184.498.0-019.000

 

Related Company :

Not available

 

 

 

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital    - Rp. 750,000,000.-

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

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

 

Shareholders/Owners :

a. Mr. Vishin Kumar Chellani         - Rp. 150,000,000.- (60%)

    Address : Jl. RS Fatmawati No. 5A

                    South Jakarta

                    Indonesia

b. Mr. Mohan Chellani                   - Rp. 100,000,000.- (40%)

    Address : Komp. Perum Nirwana

                    Sunter Asri THP Blok 1 No. 8

                    North Jakarta

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading and Distribution of Upholstery, Carpet, Curtain, Wall Paper, Lace Curtain, Rugs, Sofa and other products.

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1994 when it was name HOME DECOR

 

Brand Name :

Home Decor

 

Technical Assistance :

None

 

Number of Employee :

12 persons                                     

 

Marketing Area :

Locals    - 100%

 

Main Customers :

a. Hotels, Apartment, Office Building, etc.

b. Corporate and Individuals

c. Etc.

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Bintang Rejeki

b. Toko Antik Indah

c. Toko Kota Jaya

d. Toko Annisa

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank CENTRAL ASIA Tbk

    Jl. RS Fatmawati No. 6-A

    South Jakarta

    Indonesia

b. P.T. Bank MANDIRI Tbk

    Jl. RS Fatmawati No. 8

    South Jakarta

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp .37.6 billion

2010 – Rp. 41.8 billion

2011 – Rp. 46.5 billion

 

Net Profit (estimated) :

2009 – Rp. 1.9 billion

2010 – Rp. 2.1 billion

2011 – Rp. 2.3 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Vishin Kumar Chellani

 

Board of Commissioners :

Commissioner                                 - Mr. Mohan Chellani

 

Signatories :

Director (Mr. Vishin Kumar Chellani) which must be approved by Board of Commissioner (Mr. Mohan Chellani)

 

 

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$ 630,000 on 90 days D/A

 

 

OVERALL PERFORMANCE

 

Originally named HOME DECOR was established in 1994 with the status of a Sole Proprietorship.  The founder owing of the company is Mr. Vishin Kumar Chellani, an Indonesian businessman of Indian descent.  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, in 2009 the company’s name was changed to P.T. HOME DECOR with the legal status a limited liability company, with authorized capital of Rp. 750,000,000.- of which Rp. 250,000,000.- was issued and fully paid up.  Since the time, the shareholders of the company are Mr. Vishin Kumar Chellani (60%) and his younger brother Mr. Mohan Chellani (40%). The Articles of Association was made by Mrs. Sulami Mustafa, SH., a notary in Jakarta and it was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-57726.AH.01.02.Tahun 2009, dated November 25, 2009.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

 

 

 

P.T. HOME DECOR has been in operation since 1994 in selling and distribution of upholstery, carpets, curtain, wall paper, lace curtain, rugs, sofa, chair and other products. Mr. Kamaludin, a sales staff of the company when contacted told us that some of the products are imported from America, India, Korea, Hong Kong, Japan and China, while some of them are local products.  He went on to say that the products are sold by P.T. HOME DECOR to various hotels, apartments, housing complexes, contractor companies and individuals in Jakarta and surroundings. To support its operations, P.T. HOME DECOR also provides interior decorator and designer services, especially for the installation of the above products it is selling. We notice that P.T. HOME DECOR is a classified as a large sized company of its kind in South Jakarta of which the operation has been growing in the last three year.

 

In overall we find the demand for upholstery, carpets, lace curtains, wallpapers, rugs, sofa and chair has been rising by the average 7% to 8% per year within the last five years in line with the growth of hotels, apartments, office buildings, real estate, housing and  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 P.T. HOME DECOR has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. HOME DECOR 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. 37.6 billion increased to Rp. 41.8 billion in 2010 and rose again to Rp. 46.5 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. 2.3 billion and the company has an estimated total networth at Rp. 6.0 billion.  So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of P.T. HOME DECOR is led by Mr. Vishin Kumar Chellani (47) an Indian businessman with more than about 18 years experience in trading and distribution of upholstery carpets, lace curtains, wallpapers, rugs, sofa and chair.  In daily activities he is assisted by his younger brother Mr. Mohan Chellani (40).  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.

 

P.T. HOME DECOR is appraised to be good for business transaction. However, in view of the unstable 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.53.84

UK Pound

1

Rs.86.72

Euro

1

Rs.69.13

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

 

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.