MIRA INFORM REPORT

 

 

Report Date :

04.09.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. SURABAYA MEKA BOX

 

 

Registered Office :

Jalan Bongkaran No. 66 Atas, Surabaya 60161, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

1976

 

 

Com. Reg. No.:

No. 78293.AH.01.02.TH.2008

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Cardboard, Kraft Paper, Nail and Can Making Industry

 

 

No. of Employees :

1,150

 

 

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 – 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

 

 

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


BASIC SEARCH

 

Name of Company : 

P.T. SURABAYA MEKA BOX

 

A d d r e s s :

Head Office

Jalan Bongkaran No. 66 Atas

Surabaya 60161

East Java

Indonesia

Phones             - (62-31) 3523274 (Hunting), 3524041, 3528953, 3532637

Fax                   - (62-31) 3532582

Building Area     - 4 storey

Office Space      - 620 sq. meters

Region              - Commercial

Status               - Owned

 

Branch

Jalan Jembatan Tiga No. 2-3

Jakarta Barat

East Java

Indonesia

Phones             - (62-21) 6693608 (Hunting)

Fax                   - (62-21) 6690191

Building Area     - 2 storey

Office Space      - 120 sq. meters

Region              - Commercial

Status               - Rent

 

Factory Unit 1 (Can Unit)

Jalan Kemayoran Baru No. 67

Surabaya 60176

East Java

Indonesia

Phones             - (62-31) 3523746 (Hunting)

Fax                   - (62-31) 3523248

Land Area         - 55,000 sq. meters

Building Area     - 35,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory Unit II, III, IV and V (Paper, Carton and Nail Unit)

Jalan Raya Bambe Km. 18

Kecamatan Driyorejo Gresik

East Java

Indonesia

Phones             - (62-31) 7508059, 7507959, 7507941, 7507956

Fax                   - (62-31) 7507266

Land Area         - 220,000 sq. meters

Building Area     - 176,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

01 March 1973

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. W10-HT.01.10-451

  Dated 13 December 2006

- No. 78293.AH.01.02.TH.2008

  Dated 24 October 2008

 

Company Status :

Private National and Domestic Investment (PMDN) Company

 

Permit by the Government Department :

The Department of Industry and Trade

No. 2529/DJ.ANIN/IX/73

Dated 19 March 1973

The Capital Investment Coordinating Board

- No. 757/Sekr.SP.PMDN/73

  Dated 1 May 1973

- No. 157/II/PMDN/1987

  Dated 25 November 1987

- No. 153/II/PMDN/1994

  Dated 2 June 1994

 

Related Companies :

a. C.V. BOSNIK (Import and Trading)

b. P.T. SAMUDRA MAHKOTA BEACH (Hotelry)

c. UD. SINAR BUMI (Building Material Wholesales and Distribution)

d. P.T. SOPANUSA TISSUE & PACKAGING SARANA SUKSES (Tissue Paper Manufacturing)

e. P.T. SURABAYA ACETYLINE (Industrial Chemical Manufacturing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 80,000,000,000.-

Issued Capital                                  : Rp. 40,000,000,000.-

Paid up Capital                                : Rp. 40,000,000,000.-

 

Shareholders/Owners :

a. Mr. Suparsono                           - Rp. 16,000,000,000.-

b. Mr. Suparlan                              - Rp. 10,800,000,000.-

c. Mr. Rudy Sutarso                       - Rp.   7,200,000,000.-

d. Mr. Jimmy Soetarso                   - Rp.   3,000,000,000.-

e. Mr. Yohanes Hartadi                   - Rp.   3,000,000,000.-

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Cardboard, Kraft Paper, Nail and Can Making Industry

 

Production Capacity :

a. Corrugated Papers                       - 57,000 tons p.a.

b. Medium Board and Kraft Papers    - 21,000 tons p.a.

c. Cans                                           -   3,000 tons p.a.

d. Nails                                           -   4,000 tons p.a.

e. P.P. Strapping Bands                   -   1,800 tons p.a.

 

Total Investment :

a. Owned Capital                             - Rp. 40.0 billion

b. Loan Capital                                - Rp. 48.7 billion

c. Total Investment                           - Rp. 88.7 billion

 

Started Operation :

1976

 

Brand Name :

SMB

 

Technical Assistance :

None

 

Number of Employee :

1,150 persons                                 

 

Marketing Area :

Export    - 80%

Local      - 20%

 

Main Customer :

Buyers in Europe Union and the USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. KEDAUNG SETIA CORRUGATED CARTON BOX INDUSTRIAL LTD.

b. P.T. MITRA BOXINDO

c. P.T. PRIMABOX ADIPERKASA

d. P.T. PAKERIN

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank CIMB NIAGA Tbk

    Jalan Tunjungan No. 47-51

    Surabaya, East Java

    Indonesia

b. P.T. Bank MANDIRI Tbk

    Jalan Kembang Jepun No. 168-170

    Surabaya, East Java

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 221.0 billion

2010 – Rp. 231.0 billion

2011 – Rp. 240.0 billion

2012 – Rp. 125.0 billion (January – June)

 

Net Profit (estimated) :

2009 – Rp. 20.5 billion

2010 – Rp. 21.6 billion

2011 – Rp. 23.0 billion

2012 – Rp. 12.6 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

 

 

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Suparsono

Directors                                         -    a. Mr. Rudy Soetarso

                                                           b. Mr. Djoko Andono

 

Board of Commissioners :

President Commissioner                   - Mr. Suparlan

Commissioners                                - a. Mr. Jimmy Soetarso

                                                        b. Mr. Sie Yohanes Hartadi

 

Signatories :

President Director (Mr. Suparsono) or one of the Directors (Mr. Rudy Soetarso or Mr. Djoko Andono) 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 PERFOMANCE

 

P.T. SURABAYA MEKA BOX (P.T. SMB) was established in Surabaya, East Java, in March 1973, with an authorized capital of Rp. 500,000,000 issued and paid capital of Rp. 300,000.000.  The founding shareholders of the company are Mr. Suparsono and his younger brother Mr. Suparlan, Chinese origins Indonesia business family. The company notary deed has frequently been revised. In 1985, the authorized capital was raised to Rp. 3,000,000,000 issued and paid up capital to Rp. 2,500,000,000. By the same time his other younger brother Mr. Rudy Sutarso joined as a new shareholder. In January 1991 the issued capital was raised to Rp. 3,000,000,000 entirely paid up. By the same time Mr. Jimmy Soetarso (younger brother of Mr. Suparsono) and Mr. Yohannes Hartadi joined in as new shareholders. In October 1999 the authorized capital was raised to Rp. 80,000,000,000 issued capital to Rp. 40,000,000,000 fully paid up. The deed of amendment was made by Mrs. Tutik Danakusuma, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. W10-HT.01.10-451, dated December 13, 2006. Then according to the latest revision of notary documents of Mr. Johanes Limardi Soenarjo, SH., No. 05 dated 11 March 2008 the board of director and the board of commissioner had been changed. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-78293.AH.01.02.TH.2008 dated October 24, 2008. 

 

P.T. SMB is in affiliation with a number of companies, such as, P.T. SURABAYA ACETYLENE dealing with industrial chemical manufacturing, P.T. SAMUDRA MAHKOTA BEACH dealing with hotelry, C.V. BOSNIK dealing with importing and trading, P.T. SOPANUSA TISSUE & PACKAGING SARANA SUKSES dealing with tissue paper manufacturing.

 

P.T. SMB used to engage in container tin manufacturing industry with its plant located at Jalan Kemayoran Baru No. 67, Surabaya operating since 1973. It was owned by sister company P.T. JAKARTA SURABAYA INDUSTRY COMPANY (P.T. JASINCO), operating since 1958. The plant has a production capacity of 3,000 tons container tin of various sizes and types. The whole products are marketed locally, especially to cooking oil producers like FILMA, BIMOLI, PALMBOOM, PALMVITA, etc. In 1976 P.T. SMB expanded its business into corrugated paper industry with its plant located at Jalan Raya Bambe Km.18 Driyorejo, Gresik, East Java, on a land of some 22.0 hectares, and in 1979 in nail making industry with a production capacity of 57,000 tons corrugate papers, 21,000 tons medium board and kraft papers, 4,000 tons nail and 1,800 tons P.P. strapping band per year respectively. The development has depleted an estimated investment of Rp. 88.7 billion coming from owned capital of Rp. 40.0 billion and the remainder from loans.

 

In 1997 it planned to increase production capacity of corrugated paper to 50,000 tons per year, but it was delayed due to economic crisis, lack of demand and higher price of basic materials and sales price of the products in 1998. The price of pulp in 1998 was about US$ 373 per ton to US$ 520 per ton in 1999 or 400% increase compared with 1997. According to Mr. Indrawan Teja, production manager of carton unit, production realization of carton box in 1996 to 1997 was only some 2,000 tons per month and marketed at the price of Rp. 1,400 per kg., on the average. It declined by 20% to 25% in 1998 and in 1999. Since 1998 some 60% to 70% of corrugated carton box had been exported to Taiwan, the USA, Singapore, Srilangka and Myanmar and the rest for local market. While some 65% to 70% of medium  and  kraft  paper  are  for  owned  needs  and  the  rest  for  other  carton  box  industries in the  country.

 

Some 25% of basic materials for its paper industry is still imported from the Netherlands, Germany, Hong Kong, Singapore, Brazil, Finland and some 75% is bought from local among others from P.T. TJIWI KIMIA Tbk., P.T. INDAH KIAT & PULP PAPER Tbk., and P.T. TOBA PULP LESTARI Tbk. The payment is made by cash or by L/C for 2 months at the latest. The operation of P.T. SMB had been running and growing well until 1997. But since 1998 total production and sales declined by 15% to 20% mainly its paper industry. The end of February 2000, the carton and paper unit stopped operation for some 10 days because of labor strike. By a hard meeting involving many parties including the Regional House of Representative-I East Java, the operation started again since March 2000. The strike has made the company suffered from loss of some Rp. 4.5 billion. Later since 2009 the operation of P.T. SMB has begun to increasing due to the amelioration of economic condition in the country.

 

Generally, demand for board paper has kept increasing in the last five years in line with the growth of industries using these products including textile industries, paper sheets, electronics, pharmaceuticals and cosmetics, and others. The increase in board paper in the county during the economic crisis in the last several years was attributable to the absorbing power of the users being still growing sufficiently. The prolonged economic crisis and a sharp Rupiah depreciation against US$, EUR, Yen and other hard foreign currencies have brought a bad impact to P.T. SMB because its debts mostly in US$ and other hard foreign currencies. The thick board papers are used for packaging of various industrial products. 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 have plans as follows: Negotiation with main customer regarding increasing selling price. Cost reduction in business trip, pantry needs, technical support cost, etc. Reduction finishing cost and transportation cost with transferring product to customers. I 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.

 

Until this time P.T. SMB has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. SMB 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. 221.0 billion rose to Rp. 231.0 billion in 2010 increased to Rp. 240.0 billion in 2011. As from January to June 2012 the sales turnover has reached at Rp. 125.0 billion with a net profit of Rp. 12.6 billion and projected to go on rising by at least 6% in 2012. The company has an estimated total networth of at least Rp. 70.0 billion. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The payment habit of the company ranging from 1 to 3 months is running smoothly. 

 

The management of P.T. SMB is led by Mr. Suparsono (70) a businessman and professional manager with experience for more than 30 years in can container and corrugated carton box manufacturing and trade. In his daily activities, he is assisted by Mr. Rudy Soetarso (64) and Mr. Djoko Andono (44) respectively as Director. The management is handled by experienced staff in this business, having maintained a wide business relation with private businessmen at home and abroad as well as with government sectors. So far, we did not hear that the company’s management involved in a dirty business practice 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. P.T. SURABAYA MEKA BOX is quite feasible for business transaction.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.45

UK Pound

1

Rs.87.98

Euro

1

Rs.69.69

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.