MIRA INFORM REPORT

 

 

Report Date :

22.08.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. SURYA SUKMANA LEATHER

 

 

Registered Office :

Jalan Raya Purwosari Km. 1.4 Desa Martopuro, Puntir Purwosari, Pasuruan 67162 East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.07.2000

 

 

Com. Reg. No.:

No. AHU-AH.01.10-00228

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Leather Tanning Industry

 

 

No. of Employees :

260 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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 more than 6% annually in 2010-12. 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 fiscal deficit below 3%, 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 2013 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 high oil prices.

Source : CIA


Name of Company

 

P.T. SURYA SUKMANA LEATHER

 

 

Address

 

Head Office & Factory

Jalan Raya Purwosari Km. 1.4

Desa Martopuro, Puntir

Purwosari, Pasuruan 67162

East Java

Phones             - (0343) 611170, 611753, 612706, 612707

Fax                   - (0343) 611197, 614900

Email                - sslmlg@telkom.net
Land Area         - 10,200 sq. meters

Office Space      -   6,500 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

20 July 2000

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a.  No. C-1035.HT.01.01.TH.2001

      Dated 02 February 2001

  b.  No. C-21881.HT.01.04.TH.2005

      Dated 08 August 2005

  c.  No. AHU-94333.AH.01.02.Tahun 2008

      Dated 09 December 2008

  d.  No. AHU-34718.AH.01.02.Tahun 2010

      Dated 09 July 2010

  e.  No. AHU-AH.01.10-00228

      Dated 03 January 2013

 

Company Status :

Domestic Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.456.488.4-651.000

Related Company :

Not Available

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp. 25,000,000,000.-

Issued Capital    - Rp. 10,000,000,000.-

Paid up Capital  - Rp. 10,000,000,000.-

 

Shareholders/Owners :

a. Mr. Tjandra Surya                            - Rp. 9,910,000,000.- (99.1%)

   Address : Jl. Wilis Indah B No. 20

                   Gading Kasri, Malang

                   East Java. Indonesia

b. Mr. Haji Sahawi Syafi’i                     - Rp.      90,000,000.- (  0.9%)

   Address : Jl. Asmoro RT.04/03

                   Malang, East Java

                   Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Leather Tanning Industry

 

Production Capacity :

Finished Leathers          - 18.0 million sq. feet p.a.

 

Total Investment :

a. Equity Capital            - Rp.  10.0 billion

b. Loan Capital  - Rp.    8.0 billion

c. Total Investment         - Rp.  18.0 billion

 

Started Operation :

2000

 

Brand Name :

SSL (Surya Sukmana Leather)

 

Technical Assistance :

None

 

Number of Employee :

260 persons

 

Marketing Area :

Domestic          - 20%

Export               - 80%

 

Main Customers :

a. Garment Industries (Leather Jacket Industries)

b. Leather Shoe Manufacturing

c. Other leather Product Industry

d. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. LEATHER PALACE INDONESIA

b. P.T. MASTROTO LEATHER INDUSTRY

c. P.T. RASINDO INDAH

d. P.T. MASINDO NITYAJAYA

e. P.T. RACHBINI LEATHER, etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank NEGARA INDONESIA Tbk

    Pasuruan Branch

    East Java

    Indonesia

b. P.T. Bank MANDIRI Tbk

    Jl. Merdeka Selatan No.1

    Malang, East Java, Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 155.0 billion

2010 – Rp. 174.0 billion

2011 – Rp. 195.0 billion

2012 – Rp. 220.0 billion

 

 

Net Profit (Loss) :

2009 – Rp.  7.6 billion

2010 – Rp.  8.5 billion

2011 – Ro.  9.2 billion

2012 – Rp.10.3 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                     - Mr. Tjandra Surya

 

Board of Commissioners :

President Commissioner - Mr. Haji Sahawi Syafi’i

 

Signatories :

Director (Mr. Tjandra Surya) which must be approved by president commissioner (Mr. Haji Sahawi Syafi’i)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Below Average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 


OVERALL PERFORMANCE

 

      P.T. SURYA SUKMANA LEATHER (P.T. SSL) was established in Pasuruan based on notarial Deed No. 110 dated 20 July 2000 of public notary Darma Sanjata Sudagung, SH., with the authorized capital of Rp. 1,000,000,000 of which Rp. 300,000,000 was issued and fully paid up. The founding shareholders are Mr. Tjandra Surya (40%), Mr. Arief Rachman (10%), both are Indonesian businessmen of Chinese extraction, Mr. Haji Sahawi Syafi’i (30%) and Mr. Machfud (20%), both are indigenous businessmen.  The Deed of established was approved by the Minister of Law and Human Rights through its Decision Letter No.C-1035.HT.01.01.TH.2001, dated February 2, 2001.  The articles of association of the company have frequently been revised. In 2005, the authorized capital was raised to Rp. 25,000,000,000 of which Rp. 10,000,000,000 was issued and fully paid up. The amendment to the Articles of Association was approved by the Ministry of Law and Human Rights in its decision letter No. C-21881.HT.01.04.TH.2005 dated August 8, 2005.   In November 2008, Mr. Machfud pulled out and the whole shares are sold to Mr. Tjandra Surya.  Since the time, the shareholders of the company are Mr. Tjandra Surya (98.8%), Mr. Haji Sahawi Syafi’i (0.9%) and Mr. Arief Rachman (0.3%). The amendment to the Articles of Association was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-94333.AH.01.02.Tahun 2008 dated December 9, 2008.

 

      Most recently by notarial deed of Edhi Susanto, SH., No. 43 dated November 23, 2012 Mr. Arief Rachman pulled out and his shares are sold to Mr. Tjandra Surya. Since at the time, the shareholders of the company are Mr. Tjandra Surya (99.1%) and Mr. Haji Sahawi Syafi’i (0.9%). The amendment to notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-00228 dated January 03, 2013.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. SSL has been in operation since 2000 dealing with leather tanning industry. Basically, the operation of the company is to continue the activities of Perusahaan Dagang (P.D) SURYA SUKMANA LEATHER having been in operation since 1991. Its plant is located at Jalan Purwosari Km. 1.4, Desa Martopuro, Puntir, Purwosari, Pasuruan, East Java on a land of 1.0 hectare. Mrs. Lulu, a staff of the company, said that the plant being managed by the company has annual production capacity of 18.0 million sq feet of finished leather with an investment of Rp. 18.0 billion. The basic materials in the form of raw cows’ leather come from collectors in big cities in Java. She went on to say that some 80% of the products are exported to various countries including Europe, Hong Kong and Taiwan and the rest of 20% is locally marketed.   P.T. SSL 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, demand for leather sheets and leather goods had been increasing by 8% to 10% per year in the last five years in the line with the growth of leather goods such as garment or jackets, shoes, bags, belts, wallets and other accessories industry using leather as basic material. According to the Central Bureau of Statistics (BPS) the Indonesian leather and leather goods export in 2005 amounted to US$ 130.4 million increased US$ 177.6 million in 2006 to US$ 226.9 million in 2007 to US$ 226.8 million in 2008 and declined to US$ 174.7 million in 2009.  In 2010 the Indonesian leather good export rose again to US$ 207.0 rose to US$ 230.1 million in 2011 and decline again to US$ 214.8 million in 2012.   The demand is estimated to be fluctuating in the coming three years. The competition is very tight on account of lots of original and synthetic leather products being sold in international and domestic markets.   The long business prospect of the company is favorable once the unstable economic condition starts recovery.

 

      Until this time P.T.  SSL has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. Therefore, the company has no obligation to publish financial statement publicly. We have checked to Department of Trade and Industry and found that no financial statement has been reported. P.T. SSL’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover in 2010 amounted to Rp. 174.0 billion increased to Rp. 195.0 billion in 2011 to Rp. 220.0 billion in 2012 and estimated it will be higher by at least 10% in 2013. The operation in 2012 yielded a net profit at least Rp. 10.3 billion and the company has a total net worth of Rp. 110.0 billion.   So far, we have never heard of the company having been black listed by the Central Bank (Bank Indonesia). Besides, the company usually pays its debts punctually to suppliers.

 

      The management of P.T. SSL is headed by Mr. Tjandra Surya (57) as director, a businessman with more than 23 years of experience in trading and industry of leather sheet and leather goods.  In his daily activities, he is assisted by his business partner Mr. Haji Sahawi Syafi’i (54) as commissioner. The management is also handled by a number of professional staff, having maintained a wide business relation with private businessmen at home and abroad as well as with government sector. So far, we did not hear that the company’s management involved in the business malpractices 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. SSL is appraised quite feasible for business transaction.  But owing to economic condition in the country to remain unstable, we recommend to treat prudently in extending any new loans to the company.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.46

UK Pound

1

Rs.99.42

Euro

1

Rs.85.12

 

 

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%)

 

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.