MIRA INFORM REPORT

 

 

Report Date :

23.11.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. VOKSEL ELECTRIC TBK

 

 

Formerly Known As :

P.T. VOKSEL ELECTRIC

 

 

Registered Office :

Jalan Raya Narogong Km. 16, Desa Limusnunggal, Cieungsi, Bogor, 16820, West Java

 

 

Country :

Indonesia

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

19.04.1971

 

 

Com. Reg. No.:

No. AHU-88902.AH.01.02.Tahun 2008

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

Electric and Telecommunication Cable Manufacturing

 

 

No. of Employees :

967 employees

 

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Indonesia - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, grew an estimated 6.1% and 6.4% in 2010 and 2011, respectively. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a small current account surplus, a fiscal deficit below 2%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2012 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of rising oil prices.

 

Source : CIA

 


name of Company

 

P.T. VOKSEL ELECTRIC Tbk

 

 

company Address

 

Head Office & Factory 1

Jalan Raya Narogong Km. 16

Desa Limusnunggal, Cieungsi

Bogor, 16820

West Java

Indonesia

Phones             - (62-21) 8230525 (3 lines), 8230143

Fax                   - (62-21) 8230177

E-mail               - ve@voksel.co.id

Website            - http://www.voksel.co.id

Land Area         - 16 hectares

Building Space  - 2.2 hectares

Region              - Industrial Zone

Status               - Owned

 

Factory II

Jalan Tipar Cakung Cilincing Km. 3.3

Jakarta Utara, 14140

Indonesia

Phone               - (62-21) 4401330 (lines), 4401344, 4403145

Fax                   - (62-21) 4403035

Land Area         - 4.3 hectares

Building Area     - 1.4 hectares

Region              - Industrial Zone

Status               - Owned

 

Executive Office

Menara Karya, 3rd Floor Unit D

Jalan H.R. Rasuna Said Block X-5 Kav. 1&2

Jakarta Selatan, 12950

Indonesia

Phones             - (62-21) 5794 4622 (Hunting)

Fax                   - (62-21) 5794 4649

Building Area     - 36 storey

Office Space      - 100 sq. meters

Region              - Commercial

Status               - Rent

 

 


Date of Incorporation

 

a. 19 April 1971 as P.T. VOKSEL ELECTRIC

b. 12 June 1997 as P.T. VOKSEL ELECTRIC Tbk

 

 

Legal Form

 

P.T. Tbk. (Perseroan Terbatas Terbatas) or Public Listed Company

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. J A 5/219/17

  Dated 24 December 1971

- No. AHU-88902.AH.01.02.Tahun 2008

  Dated 21 November 2008

 

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

The President of the Republic of Indonesia

No. B-187/Pres/9/1989

Dated 25 December 1989

 

The Capital Investment Coordinating Board

- No. 11/V/PMA/1989

  Dated 5 October 1989

- No. 87/II/PMA/1990

  Dated 28 May 1990

- No. 683/III/PMA/1993

  Dated 15 November 1993

- No. 76/II/PMA/1994

  Dated 9 May 1994

 

 


Related Companies

 

a. P.T. ALCARINDO PRIMA (Continuous Casting and Rolling Aluminum Rod Manufacturing)

b. P.T. ALCAS DHARMA PRATAMA (Steel Casting Manufacturing)

c. P.T. KAWAT MAS PRAKASA (Electrical and Telecommunication Cable Manufacturing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - Rp. 1,000,000,000,000.-

Issued Capital                                  - Rp.    415,560,259,500.-

Paid up Capital                                - Rp.    415,560,259,500.-

 

Shareholders/Owners :

a. STANDARD CHARTERED Bank, Hong Kong                    - Rp. 115,070,656,000.-

b. TRIWISE Group Limited                                                  - Rp.   45,466,848,500.-

c. SWCC SHOWA CABLE SYSTEM CO. LTD., Japan          - Rp.   41,651,016,500.-

d. The Publics                                                                    - Rp. 213,371,738,500.-

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a.   Electric and Telecommunication Cable Manufacturing

b.   Investment Holding

 

Production Capacity :

A.  Cakung Factory

      a. BC Draad/Bolts                                           -       1,800 tons p.a.

     b. BC Wires                                                   -       3,000 tons p.a.

      c. Enamelled Copper Wires                             -          450 tons p.a.

      d. Aluminum Conductors                                 -        4,800 tons p.a.

      f.  Twisted Cables                                           -        6,600 tons p.a.

      g. Electrical Cables                                         -        3,300 tons p.a.

      h. Telecommunication Cables                          - 2,130,000 sckm p.a.

      i.  Medium Voltage for Underground Cables       -           500 sckm p.a.

 

B.  Cileungsi Factory

      a.  BC Draads                                                 -           360 tons p.a.

      b.  BC Wires                                                  -           600 tons p.a.

      c.  Enamelled Copper Wires                            -        1,000 tons p.a.

      d.  Rectangular Copper Wires                          -           800 tons p.a.

      e.  Copper Wire Rods                                      -        9,600 tons p.a.

      f.   Aluminum Conductors                                -        3,000 tons p.a.

      g.  Twisted Cables                                          -        5,100 tons p.a.

      h.  Electrical Cables                                        -        1,000 tons p.a.

      i.  Medium Voltage for Underground Cables       -        9,000 sckm p.a.

 

Total Investment :

a.   Equity Capital                            - Rp.   63.0 billion

b.   Loan Capital                              - Rp. 120.4 billion

c.   Total Investment                         - Rp. 183.4 billion

 

Started Operation :

1972

 

Brand Name :

Voksel Electric

 

Technical Assistance :

SHOWA ELECTRIC WIRE & CABLE CO., Japan

 

Number of Employee :

967 persons

 

Marketing Area :

Local       - 65%

Export      - 35%

 

Main Customers :

a. P.T. PERUSAHAAN LISTRIK NEGARA Tbk (P.T. PLN)

b. Electric equipment stores in major cities in the country and overseas market in Japan

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. TRANKA KABEL

b. P.T. KABELINDO MURNI

c. P.T. SUPREME CABLE MANUFACTURING

d. P.T. CITRA MAHASURYA INDUSTRIES

e. Etc.

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank MANDIRI Tbk

      Jalan Pintu Besar Utara No. 5

      Jakarta Barat

      Indonesia

b.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Asemka No. 24-27

      Jakarta Barat

      Indonesia

 

Auditor :

Aryanto, Jusuf Mawar & Saptoto, a public accountant

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales  :

2009 – Rp. 1,729.1 billion

2010 – Rp. 1,309.6 billion

2011 – Rp. 2,014.6 billion

2012 – Rp. 1,152.2 billion (as of 30 June)

 

Net Profit  :

2009 – Rp.   53.7 billion

2010 – Rp.   10.1 billion

2011 – Rp. 110.6 billion

2012 – Rp.   54.8 billion (as of 30 June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Heru Gondokusumo

Directors                                         - a. Mrs. Linda Lius

                                                        b. Mr. Fumiaki Nakajima

                                                        c. Mr. Muliany Anwar

                                                        d. Mr. Tan Yong Han

 

Board of Commissioners :

President Commissioner                   - Mr. Kumhal Djamil

Commissioners                                - a. Mr. Michael Tjandrawinata

                                                        b. Mr. Akihisa Takizawa

                                                        c. Mr. Hardi Sasmita

 

Signatories :

President Director (Mr. Heru Gondokusumo) or one of the Directors (Mrs. Linda Lius, Mr. Fumiaki Nakajima, Mr. Muliany Anwar or Mr. Tan Yong Han)  which  must   be approved by Board of Commissioners.

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Initially the company was established by the virtue of a Domestic Investment (PMDN) facility in April 1971 with an authorized capital of Rp. 200,000,000 and Rp. 40,000,000 of which was issued and paid up. The original  founding shareholders  of P.T. VOKSEL ELECTRIC were Mr. Agus Gunawan AKA Tan Foek Goan, his  wife Mrs. Singowati Widjaja AKA Wong Se Ngo, his younger brother Mr. Sugih Tjandrawinata AKA Tan Soei Tjong and his younger sister in-law Mrs. Muljati Widjaja AKA Wong Liem Fong (Mrs. Sugih Tjandrawinata). The company's notarial deed has frequently been amended. In June 1989 it was converted into a Foreign Investment (PMA) coinciding with the entry of foreign partner SHOWA ELECTRIC WIRE & CABLE CO., of Japan. In July 1990 the authorized capital was raised to Rp. 25,000,000,000 issued and paid up capital to Rp. 20,000,000,000. P.T. VE is a public listed company of the Jakarta Stock Exchange  (BEJ) by selling its 15.40% shares to the public. In July 1997, the authorized capital was increased to Rp. 250,000,000,000 issued and paid  up capital  to Rp. 63,000,000,000. Then in June 1997, the word Tbk. (Terbuka) was added behind the name to comply with the law on public listed company to become P.T. VOKSEL ELECTRIC Tbk., (P.T. VE). 

 

The latest in November 2008, the authorized capital was raised to Rp. 1,000,000,000,000 of which Rp. 415,560,259,500 was issued and fully paid up. The notary deed of amendment was made by a public notary in Jakarta under Company Registration Number AHU-88902.AH.01.02.Tahun 2008, dated 21 November 2008. Then according to Financial Statement as per 30 June 2012 the composition of its shareholders has been changed to become STANDARD CHARTERED Bank Hong Kong (27.69%), TWISE GROUP LTD., (10.94%), SWCC SHOWA CABLE SYSTEM CO, LTD., Japan (10.02%) and Publics less than 5% (51.35%).

 

P.T. VE is in affiliation with some other companies, such as, P.T. ALCARINDO PRIMA, engaged in continues casting and aluminum rod industry, P.T. ALCAS DHARMA PRATAMA in steel casting industry and P.T. KAWAT MAS PRAKARSA in electrical and telecommunication cable manufacturing.

 

As stated above that P.T. VE originally obtained a Domestic Investment (PMDN) facility in cable manufacturing. Its style however has changed to a Foreign Investment (PMA) facility after a Japanese participant joined the company in 1990.  P.T. VE initially operated a plant located on Jalan Perintis Kemerdekaan, Pulogadung, East Jakarta - over 1.0 hectare wide land started-up with commercial operation in 1972 by producing low voltage electric cable and copper wires. Later in 1982, the company expanded and concurrently relocated its plant to new location on Jalan Tipar, Cakung, East Jakarta over 4.3 hectares wide land. The company had also in 1992 developed another new factory unit in Cileungsi, Bogor, West Java over 16 hectares wide land. In the middle of 1995, its expansion in Cakung, East Jakarta and in Cileungsi, Bogor, West Java started operation in the middle of 1995. Through its continuous pursuit for quality excellence, the Company was awarded numerous international quality certificates, such as ISO 9002:1994 year 1995, ISO 9001:1994 year 1999 and ISO 9001:2000 year 2003 and ISO 9001:2008 year 2009 from SGS Yarsley International Certification Services, Ltd.  In 2008, the Company obtained KEMA Certificate from KEMA Nederland B.V. The Company is highly committed to prevent environmental pollution and enhance the safety and health in the working environment. In line with this commitment, the Company has obtained ISO - 14001 and OHSAS - 18001 in January 2010.

P.T. VE markets its products both domestically and internationally. For domestic market, majority sales stems from P.T. Perusahaan Listrik Negara ("PLN') and P.T. Telekomunikasi Indonesia Tbk ("Telkom'). In addition, the Company also supplies free market cables to contractors and distributors. For export sales, the Company markets to various countries such as: Brunei, Philippines, Singapore, Malaysia, Thailand, Cambodia, Vietnam, Srilanka, Myanmar, Hong Kong, India, Bangladesh, Japan, Nepal, Korea, UAE, Yemen, Fiji Island, Australia, Eqypt, Cyprus, Brazil, Pakistan etc.

P.T. VE Product Range:

Ř      Bare Copper: Round wire, rectangular wire, stranded wire.

Ř       Bare Aluminum: Aluminum wire, stranded wire, aluminum conductor steel reinforced.

Ř       Power Cable: Cross linked polyethylene insulated cable low voltage and medium voltage, polyethylene insulated cable, polyvinyl insulated cable.

Ř       Communication Cable: Indoor cable, coaxial cable, jumper wire, burial, drop wire, aerial cable, direct buried cable, duct (conduit) cable.

Ř       Optical Fiber Cable: Loose tube type of silica glass optical fiber cable for indoor, aerial, direct buried, All Dielectric Self Supporting (ADSS) and duct installation.

 

Besides that, P.T. VE is also engaged in investment holding by controlling 90% shares of P.T. ANUGRAH BAKTI NUSA in general trading and distribution; 98% shares of P.T. BANGUN PRIMA SEMESTA in general contracting and trading; 99% shares of P.T. CENDEKIA GLOBAL SOLUSI in general trading and distribution and 99% shares of P.T. PRIMA MITRA ELEKTRINDO in general trading, development and services. We observe that P.T. VE operation has been fluctuating in the last five years.

 

In overall we find that cable industry in the country had been rising by 6% to 7% per year within the last five years. The competition is very tight on account of many similar companies producing optics cables in the country including P.T. KMI WIRE & CABLE Tbk, P.T. SUCACO Tbk, P.T. TEMBAGA MULIA SEMANAN Tbk, P.T. VOKSEL ELECTRIC Tbk, P.T. JEMBO CABLE COMPANY Tbk, P.T PRYSMIAN CABLE INDONESIA and P.T. COMMUNICATION CABLE SYSTEMS INDONESIA. Apart from abundant electric and telecommunication cables in the country, also lots of imported cables are being offered which caused competition to be hard. Besides, starting in the second semester 2008, many markets in various parts of the world experienced adverse economic condition. This condition was triggered by, amongst others, the housing and mortgage loans crisis in the United States of America (US) that spread to securities, structures products and commodity markets. The volatility in the US markets coupled with the sharp appreciation in the US Dollars and a series of corporate bankruptcies and takeovers enabled the crisis to spread to other parts of the world. The impact of the global economic crisis has also been felt in Indonesia as the Indonesian Rupiah weakened, demand decrease, commodity prices decreased, securities market declines, interest rate increased, followed by decreases, tightened liquidity conditions, and increased credit risks. Up to this time, the Company has not significantly suffered from the economic crisis. In response to these economic events, during 2010 the Company has plans as follows: Negotiation with main customer regarding increasing selling price. Cost reduction in business trip, pantry needs, etc. Stop production of products which do not reach profit target. In spite of the adverse economic conditions, management believes that the Company will be able to continue operating as going concern for the foreseeable future.

 

According to financial statement of P.T. VE that total sales turnover of the company in 2009 amounted at Rp. 1,729.1 billion with a net profit of Rp. 53.7 billion declined to Rp. 1,309.6 billion with a net profit of Rp. 10.1 billion in 2010 increased to Rp. 2,014.6 billion with a net profit of Rp. 110.6 billion in 2011. As per 30 June 2012 the sales turnover reached at least Rp. 1,152.2 billion with a net profit of Rp. 54.8 billion and projected the sales turnover will be higher by at least 6% in 2013. 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 financial highlight as per 31 December 2009, 2010, 2011 and per 30 June 2012 is attached.  

 

                                                                                                                           (In Million Rupiah)

DECCRIPTION

30 June

2012

           31 December

2011

2010

2009

A. Operating Result

 

 

 

 

     - Net Sales

1,152,231

2,014,609

1,309,570

1,729,113

     - Gross Profit

182,778

303,541

153,228

197,884

     - Operating Income (loss)

68,841

175,309

47,287

82,477

     - Net Income (loss)

54,847

110,621

10,262

53,563

B. Financial Position

 

 

 

 

     - Current Assets

1,496,632

1,357,377

904,218

969,269

     - Fixed Assets Nets

207,445

193,405

211,047

212,644

     - Deferred Tax Asset

7,293

7,668

6,572

6,635

     - Other Assets

40,989

18,004

14,337

54,272

     - Total Assets

1,734,707

1,573,039

1,126,481

1,237,958

     - Short-term Liabilities

1,196,572

1,054,553

719,232

843,454

     - Total Liabilities

1,219,380

1,076,394

740,456

862,504

     - Equity

515,328

496,645

386,024

375,454

C. Stockholders Equity  

 

 

 

 

     - Share Capital 

415,560

415,560

415,560

415,560

     - Additional Paid-up Capital  

940

940

940

940

Notes: 31 December 2009, 2010, 2011audited by Aryanto, Amir Jusuf, Mawar & Saptoto,

           30 June 2012 un audited

 

The management of P.T. VE is headed by Mr. Heru Gondokusumo (54), a businessman with experience for some 20 years in this business. Mr. Heru Gondokusumo has been President Director of PT Voksel Electric Tbk since June 30, 2011. He joined the Company in 1988 and started his career as the Chief of Maintenance Department. He was appointed as Maintenance Manager in 1992, Production Manager in 1994 and Plant Manager in 1998 in Cileungsi factory. He was the General Manager in Commercial Division from 2006 to 2008 and Commercial Director from June 5, 2008 to June 30, 2011. It is also handled by a number of professional managers with experience and expertise in cable products industry and trade especially from Japan. 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. VOKSEL ELECTRIC Tbk is sufficiently fairly good for business transaction.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.16

UK Pound

1

Rs.88.03

Euro

1

Rs.70.86

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.