MIRA INFORM REPORT

 

 

Report Date :

07.02.2013

 

 

 

Tel. No.:

62 298 525 024

Fax No.:

62 298 525 022

 

IDENTIFICATION DETAILS

 

Name :

P.T. LIFE UTAMA INDUSTRIES AND TRADING

 

 

Registered Office :

Desa Ngimbun RT. 04 RW. 03, Karangjati Kecamatan Bergas, Kabupaten Semarang Semarang, 50522 Central Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

16.12.2000

 

 

Com. Reg. No.:

No. AHU-34576.AH.01.02.TH.2009

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Synthetic & Leather Gloves Manufacturing

 

 

No. of Employees :

170 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. LIFE UTAMA INDUSTRIES AND TRADING

 

 

Address

 

Head Office & Factory

Desa Ngimbun RT. 04 RW. 03, Karangjati

Kecamatan Bergas, Kabupaten Semarang

Semarang, 50522

Central Java

Indonesia

Phones             - (62-298) 525 024 (Hunting)

Fax                   - (62-298) 525 022

E-mail               - pt.luit@gmail.com

Land Area         - 10,000 sq. meters

Office Space      - 6,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

16 December 2000

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-236 HT.01.01.TH.2003

  Dated 25 June 2003

- No. AHU-34576.AH.01.02.TH.2009

  Dated 22 July 2009

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.204.763.3-509.000

 

The Capital Investment Coordinating Board

No. 36/03/I/PMA/2000

Dated 15 December 2000

 

The Department of Industry and Trade

TDP No. 111711900293

Dated 30 April 2004

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 600,000.-

Issued Capital                                  : US$ 150,000.-

Paid up Capital                                : US$ 150,000.-

 

Shareholders/Owners :

a. Mr. Moon Seong Gu                                                     - US$ 90,000.- 

    Address : 80-7 Song Jeng Ri

                    Kuang Ju Gun Kyeng Gi Do

                    Seoul, South Korea

b. Mr. Choi Jae Hyo                                                          - US$ 30,000.-

    Address : 6-206 Woo Yi Green Villa 486-18

                    Sang Moon I Dong, Do Bong Ku

                    Seoul, South Korea

c. Mr. Kang Hee Sung                                                       - US$ 30,000.-

    Address : 188-1 Kang Nam Gu,

                    Poi Dong Seoul City

                    South Korea

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Synthetic & Leather Gloves Manufacturing

 

Production Capacity :

Synthetic & Leather Sport Gloves      - 720,000 pieces p.a.

 

Total Investment :

a.   Equity Capital                            - US$ 150,000.-

b.   Loan Capital                              - US$ 350,000.-

c.   Total Investment                         - US$ 500,000.-

 

Started Operation :

2002

 

Brand Name :

Life Utama Industries and Trading

 

Technical Assistance :

None

 

Number of Employee :

170 persons

 

Marketing Area :

Export      - 100%

 

Main Customer :

Buyers in South Korea and Japan

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ADIRA SEMESTA INDUSTRY

b. P.T. DAYUP INDO

c. P.T. INDOGLOVES JAYA

d. P.T. PANGESTU GUNAGLOVES

e. P.T. SASMITA ABADI GLOVES

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank RABOBANK INTERNATIONAL

      Jalan Padanaran No. 24

      Semarang, Central Java

      Indonesia

b.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Pemuda No. 90-92

      Semarang, Central Java

      Indonesia

c.   P.T. Bank MANDIRI Tbk

      Jalan Pemuda No. 73

      Semarang, Cental Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 25.3 billion

2011 – Rp. 28.0 billion

2012 – Rp. 31.0 billion

 

Net Profit (estimated) :

2010 – Rp. 2.0 billion

2011 – Rp. 2.3 billion

2012 – Rp. 2.5 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Kang Hee Sung

Director                                           - Mr. Choi Jae Hyo

 

Board of Commissioners :

Commissioner                                 - Mr. Moon Seong Gu

 

Signatories :

President Director (Mr. Kang Hee Sung) or the Director (Mr. Choi Jae Hyo) 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

 

P.T. LIFE UTAMA INDUSTRIES AND TRADING (P.T. LUIT) was established in Bergas Semarang Regency, Central Java based on notary deed of Mr. Kiagus Daud, SH., No. 11 dated 16 December 2000 with an authorized capital of US$ 600,000 issued capital of US$ 150,000 fully and paid up. The company was founded by Mr. Moon Seong Gu (60%), Mr. Choi Jae Hyo (20%) and Mr. Kang Hee Sung (20%), they are businessmen of South Korea. The company notary deed was approved by the Ministry of Law and Human Rights in its decision letter No. C-236 HT.01.01.TH.2003 dated June 25, 2003. The company notary deed has been changed and according to the latest revision of notary documents of Mr. Kiagus Daud, SH., No. 21 dated 3 April 2009 the company’s board of director and the board of commissioner reappointed to lead and run of the company’s operation (see profile of this report). The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-34576.AH.01.02.TH.2009 dated July 22, 2009.

 

P.T. LUIT is obtained Foreign Investment (PMA) company facility from Capital Investment Coordinating Board (BKPM) to deal with synthetic and leather gloves manufacturing. The plant is located at Desa Ngimbun RT. 04, RW. 03 Karangjati, Bergas district, Semarang Regency, Central Java, standing on a land of 10,000 sq. meters. The plant has been in operating since 2002 by produces of synthetic & leather sport gloves based on job orders from their buyers. According information the company produces of synthetic and leather sport glove with capacity of 60,000 pieces per month. Most of raw materials like leather is obtained from Central Java and East Java, while the rest is also imported from South Korea and Japan. Previously the company exported and products based on job order as from 2009 to 2011 from buyers in Lost Angeles, USA. Mrs. Ety, Marketing & ADM staff of the company said the whole product is exported based on brand and job orders basis from their buyers in South Korea and Japan. All P.T. LUIT products are comfortable, practical and provide health care worker with a variety of choices and styles from which to choose. From the ever popular leather synthetic glove which offers high tensile strength, no protein, chemical resistant, abrasion resistant. P.T. LUIT products are tested and manufactured under strict guidelines and compliance with state of the art techniques. We observe that P.T. LUIT is a small size company of its kinds with operation has been growing and developing well in the last three years.

 

According to Indonesian Rubber Glove Manufacturing Association (IRGMA) that up to 2005, the world’s demand for rubber gloves amounted to 60.0 billion pairs per annum. Meanwhile, the largest consuming countries in worldwide include the USA reaching 50% of the world’s demand for rubber gloves. According to IRGMA, the national rubber glove production up to end 2003 amounted to 6.9 billion pairs while the rubber products as the basic materials in same period reached 392,127 tons. The export value of the national rubber gloves based on data from the Central Bureau of Statistics (BPS) in 2005 reached to US$ 200 million rose to US$ 250 million in 2006, decrease to US$ 153.6 million in 2007 to US$ 175.9 million in 2008 and to US$ 210 million in 2009. However, the rubber glove products in the country have been facing various obstacles such as the basic materials, the increasing fuel price, gas and tight competition. The business position of P.T. LUIT is favorable in line with its growing operational networks and wide product marketing coverage.

 

Until this time P.T. LUIT has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. LUIT is very reclusive towards outsiders and rejected to disclose its financial condition.

 

 

We observed that total sales turnover of the company in 2010 amounted to Rp. 25.3 billion rose to Rp. 28.0 billion in 2011 increased to Rp. 31.0 billion in 2012 and projected to go on rising by at least 6% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 2.5 billion and the company has an estimated total networth of at least Rp. 15.0 billion. We observe that P.T. LUIT is supported by foreign partner 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. LUIT is led by Mr. Kang Hee Sung (44) a businessman and professional manager of South Korea with experience in synthetic & leather hand gloves manufacturing and trading. Daily activity he is assisted by Mr. Choi Jae Hyo (50) 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. LIFE UTAMA INDUSTRIES AND TRADING is sufficiently fairly good for business transaction.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.08

UK Pound

1

Rs.83.12

Euro

1

Rs.72.02

 

 

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.