MIRA INFORM REPORT

 

 

Report Date :

17.10.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. KUALA PANGAN

 

 

Formerly Known As :

C.V. KUALAN PANGAN

 

Registered Office :

 

Jalan Depan Terminal No. 23-25 Citeureup, Bogor, 16810 West Java

 

 

Country :

Indonesia

 

 

Year of Establishment :

1954

 

 

Com. Reg. No.:

No. Y.A. 5/339/15

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Dried Noodle Processing

 

 

No. of Employees :

200 persons    

 

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 :

Satisfactory

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 – 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

 

P.T. KUALA PANGAN

 

 

Address

 

Head Office & Factory

Jalan Depan Terminal No. 23-25

Citeureup, Bogor, 16810

West Java

Indonesia

Phones   - (62-21) 8752467, 8752494

Fax                   - (62-21) 8751013, 8753636

E-mail               - kupang@indo.net.id

Land Area         - 2,500 sq. meters

Building Space  - 1,200 sq. meters

Region              - Industrial Zone

Status               - Rent

 

 

Registration data

 

Date of Incorporation :

a.   1954 as KUALA PANGAN         

b.   23 March 1972 as C.V. KUALAN PANGAN

c.   1 June 1974

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

No. Y.A. 5/339/15

Dated 24 May 1982

 

Company Status :

Private National and Domestic Investment (PMDN) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.105.435.0-431.000

 

The Capital Investment Coordinating Board

No. 114/VI/PMDN/1982

Dated 23 April 1982

 

 

The Department of Industry

No. 236/DJIHPK/D.2/Perluasan/VIII/1998

Dated 28 August 1998

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 31,000,000.-

Issued Capital                                 : Rp. 31,000,000.-

Paid up Capital                               : Rp. 31,000,000.-

 

Shareholders/Owners :

a. The heirs Mr. Sugih Arno                                              - Rp. 8,500,000.-

    Address : Jl. Pajajaran Indah II No. 11

                    Bogor, West Java

                    Indonesia

b. Mr. Suherdy Arno                                                         - Rp. 6,000,000.- 

    Address : Jl. Pajajaran Indah II No. 11

                    Bogor, West Java

                    Indonesia

c. Mr. Suherto Arno                                                          - Rp. 6,000,000.-

    Address : Jl. Cincau No. 9, RT. 02 RW. 02

                    Kelurahan Pakuan, Kecamatan Bogor

                    Bogor, West Java

                    Indonesia

d. Mr. Suherry Arno                                                          - Rp. 6,000,000.-  

    Address : Jl. Pajajaran Indah II No. 11

                    Bogor, West Java

                    Indonesia

e. Mrs. Tuty Sumijati                                                        - Rp. 4,500,000.-

    Address : Jl. Pajajaran Indah II No. 11

                    Bogor, West Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Dried Noodle Processing

 

Production Capacity :

a.   Dried Noodles                           - 546 tons p.a.

b.   Vermicelli                                  - 546 tons p.a.

 

 

Total Investment :

a.   Equity Capital                           - Rp.   31.0 million

b.   Loan Capital                              - Rp. 500.0 million

c.   Total Investment                        - Rp. 531.0 million

 

Started Operation :

1954 when it was Kuala Pangan

 

Brand Name :

Kuala Pangan

 

Technical Assistance :

None

 

Number of Employee :

200 persons                                   

 

Marketing Area :

Local       - 100%

 

Main Customer :

Distributors and Food Traders

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ABC PRESIDENT INDONESIA

b. P.T. INDOFOOD CBP SUKSES MAKMUR Tbk

c. P.T. KARUNIA ALAM SEGAR

d. P.T. NESTLE INDONESIA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank MANDIRI Tbk

      Jalan Raya Pajajaran No. 88 Block 1&3

      Bogor, West Java

      Indonesia

b.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Raya Pajajaran No. 5

      Bogor, West Java

      Indonesia

 

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 11.5 billion

2010 – Rp. 12.8 billion

2011 – Rp. 13.6 billion

2012 – Rp.   7.5 billion (January – June)

 

Net Profit (estimated) :

2009 – Rp. 0.8 billion

2010 – Rp. 0.9 billion

2011 – Rp. 1.1 billion

2012 – Rp. 0.6 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mrs. Tuty Sumijati

                                                        AKA Tjia Lee Tjoe

Director                                          - Mr. Suherto Arno

 

Board of Commissioners :

President Commissioner                  - Mr. Suherdy Arno

Commissioner                                 - Mr. Suherry Arno

 

Signatories :

President Director (Mrs. Tuty Sumijati AKA Tjia Lee Tjoe) or the Director (Mr. Suherto Arno) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

Originally the company named KUALA PANGAN was incorporated in Bogor, West Java in 1954 with the status of Sole Proprietary Company. Later in March 1972 the company legal status was changed into C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partner with founded by the late Mr. Sugih Arno AKA Gouw Ie Tjong and his wife Mrs. Tuty Sumijati AKA Tjia Lee Tjoe, both are Indonesian business family of Chinese extraction. Then on 1 June 1974 the company status was converted into P.T. (Perseroan Terbatas) or Limited Liability Company with the name of P.T. KUALA PANGAN (P.T. KP) with the authorized capital of Rp. 31,000,000 wholly issued and paid up. On the same occasion the composition of its shareholders has been changed to become the late Mr. Sugih Arno (27.42%) his sons Mr. Suherto Arno (19.35%), Mr. Suherdy Arno (19.35%, Mr. Suherry Arno (19.35%) and his mother Mrs. Tuty Sumijati AKA Tjia Lee Tjoe (14.52%). The company notary deed has been approved by the Ministry of Law and Human Rights in its decision letter No. Y.A. 5/339/15 dated May 24, 1982. Based on 3 March 2011 Mr. Sugih Arno was died and the whole shares taken over by his family members. However the revision of notary act has yet been made in the notary public.  

 

P.T. KP is a private national company dealing with dried noodles and vermicelli processing which manages a plant located at jalan Depan Terminal No. 23-25, Citeureup, Bogor, West Java standing on 2,500 sq. meters land. P.T. KP is a company engaged in food processing industry with the main products of dried noodles, vermicelli and seasoning. In early 1954, the process of the company is still using the sun’s heat for the drying process. This led the company does not produce optimally because given the location of the company in a high rainfall area. In 1965, P.T. KP expansion by establishing the location is different and vermicelli factory in Cireureup, Bogor. Machines are used simple technology and domestically. The increasing demand and expansion of marketing to encourage company to expanded their business to improve the quality of its production. Currently P.T. KP produces 3,000 kg of dry noodles and vermicelli by a machine of modern technology machinery from Taiwan, Japan, Germany, United Kingdom and machinery in the country. Roll press is a production machine that consists of 3 pieces of pressing unit (milling), slitter and steaning conveyor unit. The basic material in the form of wheat flour is bought from P.T. BOGASARI FLOUR MILLS and other companies and the rest raw materials imported from overseas. The whole products like dry noodles and vermicelli use SUPER BIHUN brand and mostly marketed locally in Java island, Sumatera and other cities in the country. We observe that P.T. KP is a small size company of its kinds with operation has been growing in the last three years.

 

Generally we find that food industries in the country had been growing by 10% to 12% per year within the last five years until 2012 in line with the increasing income of the people and rising demand for export. The long-term prospect of snack food, biscuit product, health drink is favorable. However, the competition is very tight on account of many similar companies operating in the country. The company has competitors not only from the local products but also the imported ones. The long-term prospect of the company is favorable once unstable economic condition starts recovery. Business position of P.T. KUALA PANGAN remains quite well for it has controlled a wide export network and the products have been widely known in the country.

 

Production Growth of Instant Noodles, Wet Noodles and Dry Noodles

In Indonesia, 2005 – 2012*

 

Year

Instant Noodles (Ton)

Wet Noodles

(Ton)

Dry Noodles

(Ton)

2005

1,357,630

382,046

85,481

2006

1,392,956

392,742

89,156

2007

1,455,427

412,560

91,757

2008

1,500,000

400,921

89,134

2009

1,800,000

452,255

96,044

2010

1,940,000

488,435

103,727

2011

2,056,400

517,741

109,951

 2012*

2,179,784

548,805

116,539

                                      Source: Central Bureau of Statistics (BPS) processed by ICB

                                      *) Projected

 

Until this time P.T. KP has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. KP 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. 11.5 billion rose to Rp. 12.8 billion in 2010 increased to Rp. 13.6 billion in 2011. As from January to June 2012 the sales turnover has reached at least Rp. 7.5 billion with a net profit of Rp. 0.6 billion and projected to go on rising by at least 5% in 2013. The company has an estimated total networth of at least Rp. 4.0 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 management of P.T. KP is led by Mrs. Tuty Sumijati AKA Tjia Lee Tjoe (75) a businesswoman with experience in dried noodles processing industry. Due to the old age she is assisted by her son Mr. Suherto Arno (47) as Director. 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. P.T. KUALA PANGAN is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.82

UK Pound

1

Rs.84.96

Euro

1

Rs.68.61

 

 

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%)

 

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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.