MIRA INFORM REPORT

 

 

Report Date :

26.05.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. KARYA YASANTARA CAKTI

 

 

Formerly Known As :

P.T. KRAMA YUDHA COMMONWEALTH

 

 

Registered Office :

Kawasan Industri Kota Bukit Indah, Blok A II No. 4, Purwakarta 41181, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

05.03.1980

 

 

Com. Reg. No.:

No. AHU-AH.01.10-39269

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Electric Welding Rod manufacturing

 

 

No. of Employees :

320

 

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. KARYA YASANTARA CAKTI

 

 

company Address

 

Head Office & Factory

Kawasan Industri Kota Bukit Indah

Blok A II No. 4, Purwakarta 41181

West Java

Indonesia

Phones             - (62-264) 351178 (Hunting)

Fax                   - (62-264) 351179

Land Area         - 20,800 sq. meters

Building Space  -   9,500 sq. meters

Region              - Industrial Estate

Status               - Rent

 

Singapore Office

38 – Joo Koon Circle, Jurong

Singapore 629063

Singapore

Phones             - (65) 6861 4322

Fax                   - (65) 6861 3195

Email                - sales@esabasia.com

 

 

Date of Incorporation

 

5 March 1980 as P.T. KRAMA YUDHA COMMONWEALTH, changed its name to P.T. KARYA YASANTARA CAKTI on May 22, 1985

 

 

Legal Form

 

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

 

 

Company Reg.  No.

 

The Ministry of Law and Human Rights

  a.  No. AHU-04915.AH.01.02.Tahun 2009

      Dated 19 February 2009

  b.  No. AHU-AH.01.10-39269

      Dated 06 December 2011

 

Company Status

 

Foreign Investment Company (PMA)

 

 

Permit by the Government Department

 

a.  The Department of Finance

      NPWP No. 1.002.224.2-409

 

  b. The President of the Republic of Indonesia

       No. B-1/Pres/I/1980

      Dated 12 January 1980

 

  c.  The Capital Investment Coordinating Board

       - No. 04/I/PMA/1980

        Dated 11 February 1980

      - No. 53/II/PMA/1991

        Dated 16 May 1991

      - No. 179/II/PMA/1996

        Dated 9 September 1996

      - No. 82/II/PMA/1998

        Dated 3 July 1998

      - No. 159/II/PMA/2000

        Dated 17 July 2000

 

Holding Companies :

EXELVIA INTERNATIONAL HOLDINGS B.V., of the Netherlands

 

Affiliated/Associated Companies :

a. EXELVIA HOLDINGS B.V. of the Netherlands (Investment Holding)

b. P.T. ESABINDO PRATAMA (Trading and Distribution of Welding and Cutting Machine)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                - US$. 10,000,000

Issued Capital                      - US$. 10,000,000

Paid up Capital                    - US$. 10,000,000

 

Shareholders/Owners :

a. EXELVIA INTERNATIONAL HOLDINGS B.V.  - US$ 9,754,000 (97.54%)

b. EXELVIA HOLDINGS B.V.                                         - US$    246,000 (  2.46%)

 

BUSINESS ACTIVITIES

 

Lines of Business :

Electric Welding Rod manufacturing

 

Production Capacity :

a. Electric Welding Rods                  - 12,672 tons p.a.

b. Agglomerated Welding Flux          -   5,000 tons p.a.

c. Submerged Are Wire                    -   6,000 tons p.a.

 

Total Investment :

a. Equity Capital                  - US$. 12.0 billion

b. Loan Capital                    - US$.   5.5 billion

c. Total Investment               - US$. 17.5 billion

 

Started Operation :

1982

 

Brand Name :

ESAB

 

Technical Assistance :

ESAB A.B., of Sweden

 

Number of Employee :

320 persons

 

Marketing Area :

a. Domestic       - 30%

b. Export           - 70%

 

Main Customers :

a. PT. Asabindo Pratama (as authorized distributor)

b. Overseas buyer in Singapore, Malaysia, China, Japan, South Africa, USA, Saudi Arabia and

    European countries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Avesta Welding

b. PT. Lincoln Electric Indonesia

c. PT. Intan Pertiwi Industri

d. PT. Super Indoweld Gemilng

e. PT. Matalina Tunggal

f.  PT. Teknokraftindo Asia

 

Business Trend :

Growing

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. Standard Chartered Bank

    Jl. Jend. Sudirman Kav. 33

    Jakarta Selatan

    Indonesia

b. P.T. Bank MANDIRI Tbk

    Purwakarta Main Branch

    West Java

    Indonesia

 

Auditor :

Independent Auditor

 

Litigation :

No litigation record in our database and local courts

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 380.0 billion

2010 – Rp. 420.0 billion

2011 – Rp. 476.0 billion

 

Net Profit (estimated) :

2009 – Rp. 22.8 billion

2010 – Rp. 25.0 billion

2011 – Rp. 28.3 billion

 

Payment Manner :

Almost Promptly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Harald Paul Georg Hespe

Directors                                   - a. Mr. Robert John Wiseman

                                                  b. Mr. Peck Shih Ong (Wang Bishi)

 

Board of Commissioners :

Member                                    - Mr. Kanaka Puradiredja

 

Signatories :

The President Director (Mr. Harald Paul Georg Hespe) or one of Directors (Mr. Robert John Wiseman and Mr. Peck Shih Ong) which must be approved by the Board of Commissioner (Mr. Drs. Kanaka Puradiredja)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Below Average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit :    

Moderate amount

 

 

OVERALL PERFORMANCE

 

Previously named P.T. KRAMA YUDHA COMMONWEALTH, the company was established in March 1980 with an authorized capital of US$ 600,000.- entirely issued and paid up.   The original founding shareholders are P.T. KRAMA YUDHA, a national private company, and COMMONWEALTH GASES LTD., of Australia.  In May 1985, the company was renamed to P.T. KARYA YASANTARA CAKTI (P.T. KYC). In January 1989 its original founders and shareholders pulled-out and replaced by P.T. WISHNU KUSUMA KARYA (a national private company), Mr. Abdulrani Junus (an indigenous businessman) and ESAB A.B., of Sweden.  In January 1998, Mr. Abdulrani Junus pulled-out and his entire shares went over into ESAB A.B. of Sweden.  In January 1999 ESAB A.B., of Sweden withdrew as shareholder and its whole shares were taken over by EXELVIA INTERNATIONAL HOLDINGS B.V., of the Netherlands.   In May 1999 its local partner P.T. WISHNU KUSUMA KARYA pulled out and its entire shares were taken over by EXELVIA HOLDINGS B.V., of the Netherlands.

 

Lastly, on November 2008, the authorized capital was raised to US$ 10,000,000.- entirely was issued and fully paid up.  The shareholders of the company are EXELVIA INTERNATIONAL HOLDINGS B.V., (97.54%) and it sister company EXELVIA HOLDINGS B.V., (2.46%), both are of the Netherlands.  The latest amendment to Articles of Association was approved by the Minister of Law and Human Rights of the Republic of Indonesia by virtue of Decision Letter No. AHU-AH.01.10-39269 dated 06 December 2011. No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. KYC obtained a Foreign Investment (PMA) license issued by BKPM (Investment Coordinating Board) for dealing with electric welding rod manufacturing by managing a plant originally located at Jalan Pulogadung No. 45, Kawasan Industri Pulogadung, East Jakarta operating as from 1982 and expanded in 1993 for increasing its production capacity. P.T. KYC produces electric welding rod and agglomerated welding flux with trade mark ASAB under license and technology from ASAB A.B., of Sweden.   In June 1999, P.T. KYC operated a new plant located in Kawasan Industri Bukit Indah, Purwakarta, West Java standing on 20,800 sq. meters land.   As from that time on, its entire old production machinery was relocated to new location.  Its old plant location was hired from its former local partner P.T. WISHNU KUSUMA KARYA and later sold to P.T. ESABINDO PRATAMA is also sister company of P.T. KYC.

 

At present, P.T. KYC' produces is electric welding rod, agglomerated welding flux and submerged arc wire.  Some 70% of the products are exported to Singapore, Malaysia, China, Japan, South Africa, the USA, Saudi Arabia and European countries.  The marketing of exported products of the company is handled by its marketing office based in Singapore while the marketing of local products is handled by P.T. ESABINDO PRATAMA.

 

In overall we find the demand for electric welding rod, agglomerated welding flux and submerged arc wire had been rising by the average 6% to 8% per year within the last five years in line with the growth of infrastructure sector in the country such as toll road, bridge, office building, apartments and others. But, as from October 2008, the demand growth for food products has kept on dwindling as an impact of global economic crisis as told above.   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 7% per year. Market competition is very tight due to a large number of similar companies operating in the country.


We observed that P.T. KYC's business position is quite good because some 70% of its products is exported and strongly backed by its parent company having established extensive marketing network throughout various countries. We are convinced that P.T. KYC is in position to further maintain its business in the future.

 

Until this time P.T. KYC has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. KYC is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total income/revenue of the company in 2009 amounted to Rp. 380.0 billion increased to Rp. 420.0 billion in 2010 rose again to Rp. 476.0 billion in 2011 and projected to go on rising by at least 12% in 2012. The operation in 2011 yielded an estimated net profit of at least Rp. 28.3 billion and the company has an estimated total net worth of at least Rp. 190.0 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.

 

Since November 2011, P.T. KYC's management is led by Mr. Harald Paul Georg Hespe (58) as President Director, replacing Mr. John Edward Medforth (56).  Mr. Hespe (born in Grundsuna, on December 17, 1954) is a professional manager and former director of Esab (Malaysia) Sdn. Bhd., Malaysia.  In daily activities, he is assisted by two directors namely Mr. Robert John Wiseman (58), the Australian citizen and Mr. Peck Shi Ong AKA Wang Bishi (38), the Singapore citizen.  The management is well-experienced and handled by professional managers having wide relation with home and overseas private businessmen.   So far, we did not hear that the company’s management involved in a business malpractice 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.

 

We believed that P.T. KARYA YASANTARA CAKTI is good 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.55.73

UK Pound

1

Rs.87.26

Euro

1

Rs.69.84

 

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%)

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.