MIRA INFORM REPORT

 

 

Report Date :

12.09.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. MULTINDO VELVET INDUSTRIES

 

 

Registered Office :

Kawasan Industi Wahyu Sejahtera Blok E 1-2, Jl. Raya Narogong Km. 27, Kec. Klapa Nunggal, Desa Kembang Kuning, Bogor 16820, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.02.2008

 

 

Com. Reg. No.:

No. AHU-AH.01.10-27779

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Velvet, Player Mat and Rug Manufacturing

 

 

No. of Employees :

120 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 :

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 – 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

 

 


Full Name of Company   

 

P.T. MULTINDO VELVET INDUSTRIES

 

 

company Address

 

Head Office & Factory

Kawasan Industi Wahyu Sejahtera Blok E 1-2

Jl. Raya Narogong Km. 27, Kec. Klapa Nunggal

Desa Kembang Kuning

Bogor 16820, West Java

Indonesia

Phones             - (62-21) 8248 2888 (hunting)

Fax                   - (62-21) 8249 4774

Land Area         - 2.5 hectares

Building Area     - 1.0 hectares

Region              - Industrial Estate

Status               - Rent

 

 

Date of Incorporation

 

20 February 2008

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

  a.  No. AHU-20992.AH.01.01.Tahun 2008

      Dated 25 April 2008

 

  b.  No. AHU-29123.AH.01.02.Tahun 2012

      Dated 30 May 2012

 

  c.  No. AHU-AH.01.10-27779

      Dated 27 July 2012

 

Company Status 

 

Domestic Investment Company (PMDN)

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 02.747.686.0-436.000

 

 

Affiliated/Associated Companies

 

a.   P.T. ALTIA CLASSIC AUTOMOTIVE MANUFACTURING (Car Mat Manufacturing)

b.   P.T. Bank SWADESI Tbk (Banking Services)

c.   P.T. CLASSIC EXPORTINDO JAYA (Trading and Exporter of Soap, Detergent, Shampoo

      Products, and Garment Products)

d.   P.T. CLASSIC INTERMARK (Soap and Detergent Manufacturing)

e.   P.T. CLASSIC PRIMA CARPET INDUSTRIES (Carpet Industry and Investment Holding)

f.    P.T. FRONTE CLASSIC INDONESIA (Carpet and Rugs Manufacturing)

g.   P.T. UNIVERSAL CARPET AND RUGS (Carpet and Rugs Manufacturing)

h.   U.D. ISTANA DEKORASI (Trading of Carpet and Textile Design Interior Services)

i.    P.T. KOTOBUKIYA INDO CLASSIC INDUSTRIES (Carpet Manufacturing)

j.    C.V. MULTINDO PERKASA (Importing and Trading of Carpet and Textile)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital             - Rp. 60,000,000,000.-

Issued Capital                   - Rp. 15,000,000,000.-

Paid up Capital                 - Rp. 15,000,000,000.-

 

Shareholders/Owners :

a. Mr. Jivat Hardasmal Khiani            - Rp. 3,750,000,000.-

    Address : Jl. Bubutan No. 25

                     Surabaya, East Java

                     Indonesia

b. Mr. Prakash Hardasmal Khiani      - Rp. 3,750,000,000.-

    Address : Jl. Bubutan No. 25

                     Surabaya, East Java

                     Indonesia

c. Mr. Kishore Kumar Bhagwandas    - Rp. 1,500,000,000.-

    Address : Jl. Cempaka BNo. 2, Kota Bambu Utara

                     Jakarta Barat

                     Indonesia

d. Mr. Dilip Rupo Chugani                  - Rp. 4,500,000,000.-

    Address : Jl. Kuta Raya No. 6, Kelapa Gading

                     Jakarta Utara

                     Indonesia

e. Mr. Narwani Prakash Kotumal       - Rp. 1,500,000,000.-

    Address : Jl. Rungkut Industri 2/39

                     Surabaya, East Java

                     Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Velvet, Player Mat and Rug Manufacturing

 

Production Capacity :

a.   Velvet/Carpets         - 2,000,000 sq. meters p.a.

b.   Player Mats             - 1,600,000 sq. meters p.a.

c.   Rugs                       - 1,200,000 sq. meters p.a.

 

Total Investment :

a.   Equity Capital          - Rp. 15.0 million

b.   Loan Capital            - Rp. 30.0 million

c.   Total Investment       - Rp. 45.0 million

 

Started Operation :

2001

 

Brand Name :

MULTINDO VELVET

 

Technical Assistance :

None

 

Number of Employee :

120 persons                                   

 

Marketing Area :

Domestic    - 40%

Export        - 60%                           

 

Main Customers :

a. Carpet Shops and Retail Shops in Indonesia

b. Other customers in Singapore, Malaysia, Germany, Middle East and others

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. NOBEL INDAH CARPET INDUSTRIES

b. P.T. INDONESIA CARPET MANUFACTURING

c. P.T. HERCULON CARPET

d. P.T. RAINBOW INDAH CARPETS

e. P.T. MULTI WARNA

f.  P.T. FLAMBOO INDONESIA

g. P.T. KOTOBUKI ABADI

h. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   ABN AMRO Bank NV.

      Jalan Ir. H. Juanda No. 23-24

      Jakarta Pusat

      Indonesia

 

b.   P.T. Bank SWADESI

      Jalan Raya Bogor Km. 22

      Ps. Rebo, Jakarta Timur

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 55.0 billion

2010 – Rp. 78.0 billion

2011 – Rp. 92.5 billion

 

Net Profit (estimated) :

2009 – Rp. 4.6 billion

2010 – Rp. 6.5 billion

2011 – Rp. 8.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Prakash Handasmal Khiani

Directors                                         - a. Mr. Jacky Prakash Khiani

                                                        b. Mr. Narwani Prakash Kotumal

 

Board of Commissioners :

President Commissioner                   - Mr. Jivat Hardasmal Khiani

Commissioners                                - a. Mr. Kishore Kumar Bhagwandas

                                                        b. Mr. Dilip Rupo Chugani

 

 

Signatories :

President Director (Mr. Prakash Handasmal Khiani) or one of the Directors (Mr. Jacky Prakash Khiani and Mr. Narwani Prakash Kotumal) which must be approved by president commissioner (Mr. Jivat Hardasmal Khiani) or commissioners (Mr. Kishore Kumar Bhagwandas and Mr. Dilip Rupo Chugani)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. MULTINDO VELVET INDUSTRIES (P.T. MVI) was incorporated in Jakarta on February  20, 2008 with an authorized capital of Rp. 60,000,000,000.- of which Rp. 15,000,000,000.- was issued and fully paid up.  The founding shareholders of the company are Mr. Jivat Hardasmal Khiani (40%), Mr. Prakash Hardasmal Khiani (40%) and Mr. Kishore Kumar Bhagwandas (20%), all three are Indonesian businessmen of Indian descent.  The Articles of Association was made by Drs. Wijanto Suwongso, SH., a notary in Jakarta and it has been approved by the Minister of Law and Human Rights through Decision Letter No. AHU-20992.AH.01.01.Tahun 2008 dated April 25, 2008.

 

The company notary deed had been changed and based on notary deed of Ms. Djurnawati Zainal Amin, SH., No. 4 dated 26 March 2012, Mr. Dilip Rupo Chugani and Mr. Narwani Prakash Kotumal entered into the company as new shareholders.  Since the time, the shareholders of the company are Mr. Jivat Hadasmal Khiani (25%), Mr. Prakash Hardasmal Khiani (25%), Mr. Kishore Kumar Bhagwandas (10%), Mr. Dilip Rupo Chugani (30%) and Mr. Narwani Prakash Kotumal (10%).  The amendment to Articles of Association has been approved by the Minister of Law and Human Rights through Decision Letter No. AHU-29123.AH.01.02.Tahun 2012 dated May 30, 2012 and No. AHU-AH.01.10-27779 dated July 27, 2012. No changes have been effected in term of its shareholding composition and capital structures to date.

 

 

P.T. MVI is a Domestic Capital Investment Company (PMDN) dealing with Velvet, Prayer Mat and Rugs industry.  Its plant is located at Kawasan Industri Wahyu Sejahtera Blok E 1-2, Jl. Raya Narogong Km. 27, Kec. Klapa Nunggal, Desa Kembang Kuning, Bogor, West Java, on a land of some 2.5 hectares.  The plant has annual production capacity of 2.0 million square meters of velvets/carpets, 1.6 square meters of player mats and 1.2 square meters of rugs per annum.  The plant has absorbed an investment of Rp. 45.0 billion come from owned capital of Rp. 15.0 billion and the rest is loans.  The plant has been in operation since October 2008 and their product lines include Prayer mats (Sajadah – Spiegel Quality) and velvet carpets and rugs of various sizes. Mrs. Sriyati, an administrative staff of the company explained that some 40% of the products are marketed locally and the rest of some 60% is exported to Singapore, Malaysia, India, Middle East, Europe and others.  P.T. MVI is classified as a medium sized company of its kind in the country of which the operation has been growing in the last three years.

 

Generally we find the local demand for velvet-carpet, rugs and prayer mats had been rising by 6% to 7% per year within the last five years in line with the rapid growth of hotels, luxury houses, office buildings, apartments and other sectors in that period. But since the global economic crisis and tight money policy being imposed by Bank Indonesia in October 2008 the demand had been fluctuating. However since the early 2009 the demand has been increasing due to the amelioration economic condition in the country. It is estimated the demand will rise again in line with a slight amelioration of economic condition, stability of political and security in the country. Competition is very tight due to a large number of similar companies operating in the country, such as, P.T. NOBEL INDAH CARPET INDUSTRIES, P.T. INDONESIA CARPET MANUFCTURING, P.T. HERCULON CARPET, P.T. RAINBOW INDAH CARPETS, P.T. MULTI WARNA, etc. Business position of P.T. MVI is not so critical for it has maintained a wide business at home and overseas.

 

Until this time P.T. MVI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. MVI 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. 55.0 billion increased to Rp. 78.0 billion in 2010 rose again to Rp. 92.5 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. 8.0 billion and the company has an estimated total networth of at least Rp. 55.0 billion.  We observe that P.T. MVI is supported by businessmen with has financially strong and sound behind it. 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. MVI is headed by Mr. Prakash Handasmal Khiani (60), a businessman with experience for some 39 years in carpet industry and trade.  Daily activity, he is assisted by Mr. Jacky Prakash Khiani AKA Jacky Khiani (33) and Mr. Narwani Prakash Kotumal (55), both are as directors and a number of other professionals also with experience and expertise in the business.  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. MULTINDO VELVET INDUSTRIES is sufficiently fairly good for business transaction.


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.52

UK Pound

1

Rs.88.85

Euro

1

Rs.70.85

 

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.