MIRA INFORM REPORT

 

 

Report Date :

22.09.2012

 

 

 

IDENTIFICATION DETAILS

 

Name :

P.T. DIAMOND COLD STORAGE

 

Registered Office :

 

Jalan Pasir Putih  Kav. 1 Ancol Timur Jakarta 14430

 

 

Country :

Indonesia

 

 

Date of Incorporation :

16.10.1970

 

 

Com. Reg. No.:

No. AHU-AH.01.10-05344

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Ice Cream and Soft Drink Industry

 

 

No. of Employees :

290 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 – 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


 

Name of Company

 

P.T. DIAMOND COLD STORAGE

 

 

Address

 

Head Office & Factory

Jalan Pasir Putih  Kav. 1

Ancol Timur

Jakarta 14430

Indonesia

Phones             - (62-21) 6405678 (hunting)

Fax                   - (62-21) 6402861

Email                - dave@diamond.co.id

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

Land Area         - 5,600 sq. meters

Building Space  - 2,800 sq. meters

Region              - Commercial

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

16 October 1970

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Laws and Human Rights

  a.  No. AHU-17479.AH.01.02.Tahun 2008

      Dated 08 April 2008

  b.  No. AHU-AH.01.10-05344

      Dated 21 February 2011

 

Company Status :

Domestic Investment Company (PMDN)

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.002.917.1-046.000

 

The Department of Industry

-     No. 313/DJAI/IUT-1/PMDN/VII/1989

      Dated 12 August 1989

-     No. APIT No. 3583-N

      Dated 19 June 1985

 

The Investment Coordinating Board

-     No. 12/V/PMDN/1981

      Dated 20 November 1981

-     No. 167/II/PMDN/1991

      Dated 10 September 1991

-     No. 187/II/PMDN/1993

     Dated 19 October 1993

-     No. 09/II/PMDN/2006

     Dated 07 February 2006

 

Affiliated/Associated Companies :

a. P.T. SUKANDA DJAYA (Trading and Distribution of Consumer Goods)

b. P.T. DAYACIPTA SEMPURNA (Trading and Importer of Ice Cream Raw Materials)

c. FIRMA HASTA (Trading and Importer of Food, Beef and Juice)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital   - Rp.  604,800,000.-

Issued Capital         - Rp.  604,800,000.-

Paid up Capital       - Rp.  604,800,000.-

 

Shareholders/Owners :

a. Mr. Chen Wa Tek                                             - Rp. 308,448,000.- (51%)

    Address: Jl. Walet No. 1

                   Kel. Bintaro, Kec. Pasanggrahan

                   Jakarta Selatan

b. Mr. Kenneth Chen AKA Chen Tsen Yung         - Rp. 120,960,000.- (20%)

    Address: Jl. Pasir Putih VII/7

                   Kel. Ancol, Kec. Pademangan

                   Jakarta Utara

c. Mr. Norman Chen AKA Chen Tsen Nan            - Rp. 120,960,000.- (20%)

    Address: Jl. Merak No. 8

                   Kel. Bintaro, Kec. Pasanggrahan

                   Jakarta Selatan

d. Ms. Chen Wai Sioe                                          - Rp.  54,432,000.-  (  9%)

    Address: Jl. Walet No. 1

                   Kel. Bintaro, Kec. Pasanggrahan

                   Jakarta Selatan

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Ice Cream and Soft Drink Industry

b. Dry Ice minus 78% C. for:

    - Vapor and Imitation Cloud

    - Engineering Behave

c. Rental of Cold Storage and Refrigerated Truck

d. Investment Holding by controlling 51% shares of P.T. SUKANDA DJAYA

 

Production Capacity :

a. Initial Units

    - Ice Creams                                - 2,400,000 liters p.a.

    - Ice Sticks                                  - 2,700,000 liters p.a.

    - Cold Storages                           -        2,500 cu. meters p.a. 

    - Dry Ice                                      -        1,000 tons p.a.

    - Milk Juice                                  -     420,000 liters p.a.

    - Orange Juice                             -       12,000 liters p.a.

b. Expansion Units

    - Frozen Beef                              - 1,200 tons p.a.

    - Vegetables                               -    200 tons p.a.

    - Frozen Fishes                           - 1,200 tons p.a.

    - Yoghurt                                    - 350,000 liters p.a.

 

Total Investment :

a. Equity Capital            - Rp. 20.0 billion

b. Loan Capital              - Rp. 10.0 billion

c. Total Investment        - Rp. 30.0 billion

 

Started Operation :

January 1974

 

Brand Name :

DIAMOND

 

Technical Assistance :

None

 

Number of Employee :

290 persons                                   

 

Marketing Area :

Local (Domestic)     - 100%

 

Main Customers :

Hotels, Restaurants, Supermarkets, Hypermarket, Mini-markets and others

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. CAMPINA ICE CREAM

b. PT. UNILEVER INDONESIA Tbk

c. PT. INDO VAN HOUTEN

d. PT. INDOFREEZE INDUSTRIAL Ltd

e. PT. ORLANDO ICE CREAM

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

    Ancol Branch

    Jl. Parang Tritis No. 4

    Jakarta Selatan

b. The Hongkong and Shanghai Bank Corp.

    Hayam Wuruk Plaza

    Jl. Hayam Wuruk No. 8

    Jakarta Selatan

 

Auditor :

Internal Auditor

 

Litigation :

On 25 November 2009, PT. Satyamitra Surya Perkasa (PT. SSP) filed bankruptcy lawsuit against PT. DCS, because PT. DCS accused of due debt and payable amounting to Rp 3.56 billion. The bankruptcy petition was filed at Clerk Office of Central Jakarta Commercial Court No. 65/Pailit/2009/PN.Niaga.JKT.PST, dated 12 November 2009.  But on December 20, 2009, the Central Jakarta Commercial Court rejected to liquidate PT. DCS because the company was known has paid off its obligation several days before judge read verdict.

 

 

FINANCIAL FIGURE

 

Total Sales/Revenue (estimated) :

2008 – Rp.   95.0 billion

2009 – Rp. 102.0 billion

2010 – Rp. 114.5 billion

2011 – Rp. 128.0 billion

 

Net Profit (estimated) :

2008 – Rp. 4.7 billion

2009 – Rp. 5.1 billion

2010 – Rp. 5.7 billion

2011 – Rp. 6.3 billion

 

Payment Manner :

Sometime delay

 

Financial Comments :

Fairly

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Chen Wa Tek

Directors                                         - a. Mr. Norman Chen AKA Chen Tsen Nan

                                                        b. Mr. Kenneth Chen AKA Chen Tsen Yung

 

Board of Commissioners :

President Commissioner                  - Mrs. Lioe Mie Jin

Members                                        - a. Mrs. Suzanna Immanuel

                                                        b. Mrs. Astrawati Aluwi

                                                        c. Ms. Chen Wai Sioe

 

Signatories :

President Director (Mr. Chen Wa Tek) or one of the directors (Mr. Norman Chen or Mr. Kenneth Chen) which must be approved by Board of Commissioners (Mrs. Lioe Mie Jin, Mrs. Suzanna Immanuel, Mrs. Astrawati Aluwi and Ms. Chen Wai Sioe)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

OVERALL PERFORMANCE

 

P.T. DIAMOND COLD STORAGE (P.T. DCS) was established in 1970 with an authorized capital of US$ 1,600,000.-, issued and paid up capital of US$ 320,000.- The previous founding shareholders are the BRITISH TOBACCO CO.LTD., of Australia and local partner Mr. Chen Wa Tek, a Chinese-Indonesian businessman. In 1981 the foreign partner pulled out and its shares entirely were taken over by local partner. In 1984 the authorized capital was converted into Rp 604,800,000.-, entirely issued and paid up. The company's notarial act has frequently been amended. In 1998, the three children of Mr. Chen Wa Tek namely Mr. Kenneth Chen AKA Chen Tsen Yung, Mr. Norman Chen AKA Chen Tsen Nan and Miss Chen Wai Sioe joined in as new shareholders.   Based on notary deed of Mrs. Lindasari Bachroem, SH., No. 9 dated 18 January 2011, the shareholders of P.T. DCS are Mr. Chen Wa Tek (51%), his three children Mr. Kenneth Chen AKA Chen Tsen Yung (20%), Mr. Norman Chen AKA Chen Tsen Nan (20%) and Ms. Chen Wai Sioe (9%). The company notary deed was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-05344 dated February 21, 2011. No changes have been effected in term of its shareholding composition and capital structures to date.

 

Mr. Chen Wa Tek and his family members are also the founder and majority business stakes owner of P.T. SUKANDA DJAYA (trading and distribution of consumer goods and warehousing & cold storage), P.T DAYACIPTA SEMPURA (trading and importing of ice-cream basic stuff) and Firma HASTA (trading and importing of food, beef and juice).

 

P.T. DCS has been operating since 1974 in ice-cream and soft drink making industry. Its plant is located at Jalan Pasir Putih Kav.1, Ancol Timur, North Jakarta. The plant produces ice-cream, ice-stick, milk juice, orange juice, dry ice and equipped with cold storage of 2,500 cu.meters capacity. The products are marketed under DIAMOND brand. Presently, P.T. DCS has annual production capacity of 2.4 million liters of ice creams, 2.7 liters of ice sticks, 420 thousand liters of milk juice and 12 thousand liters of orange juices. In 1993, P.T. DCS diversified its business into frozen beef processing with annual production capacity of 1,200 tons of beef, 200 tons of vegetables and 1,200 tons of frozen fish. Total investment of the expanded project reached Rp. 4.7 billion coming from own capital of Rp. 0.5 billion and the rest from loans. The expanded project has been in commercial operation since 1996.  And then, in February 2006, P.T. DCS also diversified its business into yoghurt industry with annual production capacity of 350,000 liters of yoghurt.  Total investment of the expanded project reached Rp 3.27 billion entirely coming from own capital and the project has been in commercial operation since 2008 of which the operation has been running smoothly.  Products of P.T. DCS are marketed by its affiliated company P.T. SUKANDA JAYA, a large sized company in the country.   P.T. DCS or DIAMOND Ice Cream is one of the popular ice creams in the country of which the operation has been growing in the last three years.

 

Besides, P.T. DCS is also active in investment holding by controlling 51% shares of PT. SUKANDA DJAYA  (P.T. SD) is operating in trading, importing and distribution of food products such as ice cream, orange juice, milk, cheese, and soft drinks.  Beside that the company is operating in trading of frozen food such as meat, vegetables, dairy products, and sundries products which generally brought in from France, the USA, Australia and New Zealand.  In 1997 the company's activity was expanded into cold storage industry. The cold storage is located at MM 2100 Industrial Town, Jalan Irian Blok FF-2, Cibitung, Bekasi, West Java, on a land of some 1.5 hectares operating since the end 1999. So far, the company is freezing meat and fish which mostly imported from the USA, Australia, New Zealand and Norway.

 

 

The company’s products are sold to various hotels, restaurants, hypermarkets, supermarkets, mini markets, fast food restaurants, oil companies, meat processors and others. To support its activities, the company opens branch offices in several major cities in the country including Bandung, Yogyakarta, Surabaya, Bali, Pekan Baru, Palembang, Padang, Batam, Balikpapan, Makassar, Menado, Mataram and others.   We observed that P.T. SD is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.

 

Generally, demand for food products like ice cream and soft drink has been increasing by 8% to 10% per annum in the last five years having close relation with the increasing life standard of the publics.  However, the demand for ice cream and soft drink had been decreasing in 2007and 2008 as the impact of the global economic crisis. Then, the demand has started increasing again. However, the competition is very tight on account of lots of similar products being sold in domestic markets under various brands including CAMPINA, WALLS, MEIJI, WOODY, LA REASSA, PESCA, RAGUSA, SWANIE and others. The business position of P.T. DCS is favorable because DIAMOND ice cream very popular in the country. The company also has wide marketing networks in the country.

 

Until this time P.T. DCS has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management is very reclusive and extremely refused to expose its financial condition.  But we estimated the total sales turnover of P.T. DCS in 2009 amounted to Rp 102.0 billion increased to Rp 114.5 billion in 2010 to Rp 128.0 billion in 2011 and estimated it will be higher further by 10% in 2012.   The operation in 2011 yielded an estimated net profit at least Rp 6.3 billion and the company has an estimated total asset at about Rp 80.0 billion.  So far we did not hear that the P.T. DCS has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.

 

The management of P.T. DCS is headed by Mr. Chen Wa Tek (89) as president director, a businessman with more than 45 years experience in ice cream producing industry. In his daily activities, he is assisted by his sons Mr. Norman Chen AKA Chen Tsen Nan (58) and Mr. Kenneth Chen AKA Chen Tsen Yung (60).  The management has a good reputation in ice cream industry. The company is managed by experienced professional managers in the above business. They are widely connected in domestic and foreign private business circles and are also on quite good terms with the government sector. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in business malpractices. P.T. DIAMOND COLD STORAGE is appraised quite feasible for business transaction.




 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.90

UK Pound

1

Rs.87.60

Euro

1

Rs.70.01

 

 

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.