MIRA INFORM REPORT

 

 

Report Date :

29.11.2012

 

IDENTIFICATION DETAILS

 

Name :

PD. CITRA BUSANA

 

 

Registered Office :

Jalan Mangga Dua Raya, Ruko Tekstil Mangga Dua Block D-2/33, Jakarta Barat, 17033

 

 

Country :

Indonesia

 

 

Date of Incorporation :

1994

 

 

Legal Form :

Sole Proprietary Company

 

 

Line of Business :

Trading of Textile Products (Cloth Croton)

 

 

No. of Employees :

13 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 :

Slow but Correct

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

(31.03.2011)

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

 

PD. CITRA BUSANA

 

 

Address

 

Head Office

Jalan Mangga Dua Raya

Ruko Tekstil Mangga Dua Block D-2/33

Jakarta Barat, 17033

Indonesia

Phone               - (62-21) 6128319, 6128320-21

Fax                   - (62-21) 6128087

Building Area     - 4 storey

Office Space      - 200 sq. meters

Region              - Commercial Building

Status               - Rent

 

Date of Incorporation :

1994’s

 

Legal Form :

Sole Proprietary Company

 

Company Reg. No. :    

Not Required

 

Company Status :

Private National Company

 

Permit by the Government Department :

Not Available

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital   : Rp. 650 million

 

Owner :

Mr. Gobindram Pitoomal         - 100%

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading of Textile Products (Cloth Croton)

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1994’s

 

Brand Name :

None

 

Technical Assistance :

None

 

Number of Employee :

13 persons       

 

Marketing Area :

Local    - 100%

 

Main Customer :

End users, traditional market etc,

 

Market Situation :

Very Competitive

 

Main Competitors :

a. INDAH JAYA Toko

b. IRA BUSANA

c. ISTANA BUSANA

d. JB COLLECTION

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

P.T. Bank CENTRAL ASIA Tbk

Jalan Mangga Dua Raya

Jakarta Barat

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 7.6 billion

2010 – Rp. 8.0 billion

2011 – Rp. 8.5 billion

2012 – Rp. 4.5 billion (January – June)

 

Net Profit (estimated) :

2009 – Rp. 0.7 billion

2010 – Rp. 0.8 billion

2011 – Rp. 0.9 billion

2012 – Rp. 0.5 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director  - Mr. Gobindram Pitoomal

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. Gobindram Pitoomal) in only the authorized person to sign the loan on behalf of the company

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Above Average

 

Credit Recommendation :

Credit should be extended under guarantee

 

Proposed Credit Limit :

C.O.D To small amount

 

 

OVERALL PERFORMANCE

 

PD. CITRA BUSANA (PD. CB) was established in Jakarta in 1994’s with the status of Sole Proprietary Company. Founder and owner of the company is Mr. Gobindram Pitoomal, an Indonesian businessman of Indian descent. Being as Sole Proprietary Company, the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, the company has own capital of about Rp. 650 million and it will be rising in line with the progress of its business operation.

 

PD. CB has been in operation since 1994’s in trading and distribution textile products (cloth croton) of domestic and import made. Cloth croton usually used for part of batik clothing, shirts, jackets etc.

 

Mr. Gobindram Pitoomal the owner of PD. CB disclosed that the above merchandising goods are imported from Singapore, India, China and Japan. Besides, they also purchased from various textile manufacturing plants in Jakarta and Bandung, West Java. Croton fabric (lining) is the fabric used as a coating that is located within and directly touch the skin. Croton cloth serves as a cover seam on a dress. Croton euros using the same color fabric with main fabric. Croton fabric can also be used as a coating that is located inside as well as coatings for souvenirs. He went on to say that the above merchandising goods are marketed through various garment and textile shops, and other individuals in Jakarta and its surrounding areas. We observe the operation of PD. CB has been growing slowly in the last three years.

 

The country’s garment industry is facing serious marketing problem not only in the country but also abroad. 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 rose to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393.400 tons (US$ 5,735.6 million) in 2009 and 445,200 tons (US$ 6,598.0 million) in 2010 rose to 450.9 ton (7,801.5 million) in 2011.. 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 1,477.8 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 decrease to 1,312.2 tons (US$ 4,127.9 million) in 2008 rose to 1,369.6 tons (US$ 3,602.8 million) in 2009 and to 1,525.9 tons (US$ 4,721.8 million) in 2010 decreased to 1,493.3 tons (5,563.3 million) in 2011.

 

The domestic textile producers are pessimism the textile export in 2009 could match the export numbers in 2008. The blow of the global economic crisis is resulted in the reduced of demand from the export destination countries like the United States (U.S.), Japan, and European Union region. While this year’s the exports expected fall into US$ 9.7 billion. The Chairman of the Indonesian Textile Association (API), Mr. Benny Soetrisno said that the decline in global purchasing power caused of the demand in the Indonesian textile products could not be able to grow as tight as 2008. The export volume and value of the national TPT products in 2002 to 2011 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

2011

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

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

7,801.5

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

1,493.3

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

5,563.3

Source: Central Bureau of Statistic     

 

Until this time PD. CB has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of PD. CB 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. 7.6 billion rose to Rp. 8.0 billion in 2010 increased to Rp. 8.5 billion in 2011. As from January to June 2012 the sales turnover has reached at least Rp. 4.5 billion with a net profit of Rp. 0.5 billion and the sales its projected to go on rising by at least 4% in 2013. The company has an estimated total networth of at least Rp. 2.0 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 is led out by Mr. Gobindram Pitoomal, a businessman who experienced for more than 19 years in the field of trading, textile products. The company's management is handled by professional staff 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. PD. CITRA BUSANA is sufficiently fairly good for business transaction.

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.70

UK Pound

1

Rs.89.34

Euro

1

Rs.72.35

 

 

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%)

 

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