MIRA INFORM REPORT

 

 

Report Date :

19.02.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. BITRATEX INDUSTRIES

 

 

Formerly Known As :

P.T. BITRATEX INDUSTRIAL CORPORATION

 

 

Registered Office :

JL. Brigjend Sudiarto Km. 11 Semarang 50193 Central Java

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

01.10.1979

 

 

Com. Reg. No.:

No. AHU-AH.01.10-31677

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Integrated Textile Industry

 

 

No. of Employees :

2,012 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


Correct Name of Company

 

P.T. BITRATEX INDUSTRIES

 

 

Address

 

Head Office & Factory

JL. Brigjend Sudiarto Km. 11

Semarang 50193

Central Java

Indonesia

Phones             - (62-24) 6713585 (hunting)

Fax                   - (62-24) 6713588

PO Box             - 1190 Semarang 50193

Email                - bitrasmg@bitratex.com

Land Area         - 12.5 hectares

Building Area     -   8.0 hectares

Region              - Industrial Zone

Status               - Owned

 

Jakarta Office

Menara Kadin Indonesia, 12th Floor

Jl. H.R. Rasuna Said Blok. X-5 Kav. 2&3

Jakarta 12050

Indonesia

Phones             - (62-21) 57903640  (hunting)

Fax                   - (62-21) 57903641

Email                - bitrajkt@bitratex.com

Website            - http://www.bitratex.com

Building Area     - 36 storey

Office Space      - 150 sq. meters

Region              - Commercial

Status               - Rent

 

 

Registration data

 

Date of Incorporation :

01 October 1979 as P.T. BITRATEX INDUSTRIAL CORPORATION, changed its name to P.T. BITRATEX INDUSTRIES on March 8, 1999

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a.  No. Y.A. 5/323/1

      Dated 30 April 1982

  b.  No. AHU-59580.AH.01.02.Tahun 2008

      Dated 05 September 2008

  c.  No. AHU-AH.01.10-31677

      Dated 31 August 2012

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.705.597.1-526.000

 

Related/Affiliated Companies :

a. ASEAN INTERESTS LIMITED of Hong Kong

b. BLESSED ELYSIAN LIMITED of Mauritius

c. SOHANS ENTERPRISE (HK) LIMITED of Hong Kong

d. ONE SOVEREIGN INVESTMENTS PTE. LTD., of Singapore

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - US$. 35,600,000.-

Issued Capital                                  - US$. 35,600,000.-

Paid up Capital                                - US$. 35,600,000.-

 

Shareholders/Owners :                 

  a. ASEAN INTERESTS Ltd.,                               - US$.   9,800,000.- (27.53%)

     Address: Room 1212 Wing Lung bank Centre

                    636 Nathan Road

                    Hong Kong

  b. BLESSED ELYSIAN Ltd.                                - US$. 14,085,000.- (39.56%)

     Address: 6 Floor, Newton Tower

                    Sir William Newton Street

                    Mauritius

  c. SOHANS ENTERPRISE (HK) Ltd.                    - US$.   1,715,000.- (  4.82%)

     Address: Hong Kong

  d. ONE SOVEREIGN INVESTMENTS Pte. Ltd.    - US$. 10,000,000.- (28.09%)

     Address: Singapore

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Integrated Textile Industry

 

Production Capacity :

a. Industrial Yarns                            - 9,000,000 kgs. p.a.

b. Weaving Yarns                             - 3,600,000 kgs. p.a.

c. Polyester/Cottons Yarns               - 7,100,000 kgs. p.a.

d. Raschel Laces                             - 1,600,000 yards p.a.

e. Embroidery                                  - 3,660,000 yards p.a.

f. Jacquard Laces                             - 1,200,000 yards p.a.  

 

Total Investment :

a. Owned Capital           - US$. 35,600,000

b. Loan Capital              - US$. 62,800,000

c. Total Investment         - US$. 98,400,000

 

Started Operation :

1 9 8 2

 

Brand Name :

Bitratex Industries

 

Number of Employee :

2,012 persons

 

Marketing Area :

a. Local    - 22%

b. Export  - 78%

 

Main Customers :

a. Garment Industries

b. Foreign buyers in Australia, South Korea, Belgium, the UK, Italy, France, Brazil, etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Fuji Palapa Textile

b. PT. Sri Rejeki Isman

c. PT. Gunawantex

d. PT. Sinar Padasuka Textile

e. PT. Badjatex, etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s  :

a. P.T. Bank CIMB NIAGA Tbk.

    Semarang Branch

    Jl. Pemuda No 21B

    Semarang, Central Java

b. The Hongkong and Shanghai Banking Corp.

    Semarang Branch

    Jl. Gajah Mada No. 135

    Semarang, Central java

 

Auditor :

Hadori Sugiarto Adi & Rekan, Certified Public Accountants

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Total Sales/Income :

2010 – US$. 110.3 million

2011 – US$. 123.3 million

2012 – US$. 137.5 million (estimated)

 

Net Profit (Loss) :

2010 – US$. 4.6 million

2011 – US$. 3.7 million

2012 – US$. 4.1 million (estimated)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Krishna Kumar Agrawal

Directors                                         - a. Mr. Devendra Singh Chatha

                                                        b. Mr. Arvind Kumar Shankerlal Ladha

                                                        c. Mr. Rajesh Kumar Jain

                                                        d. Mr. Abhay Kumar Agarwal

                                                        e. Mr. Aninrudha Atmaram Dhongade

                                                        f.  Mr. Sunil Kumar

                                                        g. Mr. Shailendra Kumar

 

 

 

Board of Commissioners :

President Commissioner                   - Mr. Kartar Singh Thakral

Commissioners                                - a. Mr. Karan Singh Thakral

                                                        b. Mr. Gurmukh Singh Thakral

                                                        c. Mrs. Lusilawati Surya

                                                        d. Mr. Sajen Ghanshamdas Aswani

                                                        e. Mr. Rikhipal Singh Thakral

                                                        f.  Mr. Mohan K. Vaswani

 

Signatories :

President Director (Mr. Khrishna Kumar Agrawal) or one of the Director (Mr. Devendra Singh Chatha, Mr. Arvind Kumar Shankerlal ladha, Mr. Rajesh Kumar Jain, Mr. Abhay Kumar Agarwal, Mr. Anirudha Atmaram Dhongade, Mr. Sunil Kumar, Mr. Shailendra Kumar) which must be approved by Board of Commissioners

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit should be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

 

Originally named P.T. BITRATEX INDUSTRIAL CORPORATION, the company was established in Semarang, Central Java on October 1, 1979  with an authorized capital of  US$.  6,000,000.-  of  which US$. 120,000.-  was issued and  paid up.  The founding shareholders of the company are THE THAKRAL BROTHERS Ltd., of Hong Kong and Mr. Lekhomal Ponoomal Tolani, an Indonesian businessman of Indian origin.  The Deed of establishment has been approved by the Minister of Justice of the Republic of Indonesia through Decision Letter No. Y.A.5/323/1 dated April 30, 1982. The company's notarial act was since revised a number of times.   On March 8, 1999 the company's name was changed to P.T. BITRATEX INDUSTRIES (P.T. BI).  In November 2000, the authorized capital was raised to US$ 35,600,000.- entirely was issued and fully paid up.  Concurrently, the company’s shares were controlled by ASEAN INTEREST Ltd., THAKRAL HONGDING (HK) Ltd., SOHANS ENTERPRSE Ltd. , the three are from Hong Kong and THAKRAL BROTHERS Pte. Ltd., of Singapore.

 

Later according to the latest revision of notary documents of Tri Firdaus Akbarsyah, SH., No. 05 dated 11 April 2012 the company’s shareholders had been changed, THAKRAL HONGDING (HK) Ltd., and THAKRAL BROTHERS Pte. Ltd., pulled out and the whole shares are sold to BLESSED ELYSIAN Ltd., of Mauritius and ONE SOVERIGN INVESTS Pte. Ltd., of Singapore.  Since at the time, the shareholders of the Company are ASEAN INTEREST Ltd., of Hong Kong (27.53%), BLESSED ELYSIAN Ltd. of Mauritius (39.5%), SOHANS ENTERPRISE (HK) Ltd. of Hong Kong (4.82%) and ONE SOVEREIGN INVESTMENTS Pte. Ltd., of Singapore (28.09%). The amendment to notarial Deed has been approved by the Minister of Law and Human Rights through Decision Letter No. AHU-AH.01.10-31677 dated August 31, 2012.

 

P.T. BI obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with textile industry. Its plant is located at J. Brigjen Sudiarto Km. 11, Semarang, Central Java.  The plant has been operating since 1982 and it was frequently expanded.  In 1991 the company was granted Domestic Capital Investment (PMDN) facilities by the Capital Investment Coordinating Board (BKPM).  Currently, the Company has a capacity to produce 9 million tons of industrial yarns, 3,600 tons of weaving yarns, 7,100 tons of polyester/cotton yarns, 1,600,000 yarns of raschel laces, 3,660,000 yards of embroidery and 1,200,000 yards of jacquard laces, with an investment of US$. 98.4 million comprising owned capital of US$ 35.6 million and the rest from loans.  Basic materials like rayon and polyester are largely obtained at home while raw cotton imported from Australia, the USA and Russia.  Some 78% of the company products are exported to various countries including Australia, South Korea, Belgium, United Kingdom, Italy, France, Brazil and others.  We observed that P.T. BI 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 the demand for textile and textile products including polyester textured yarn, finished fabrics, garment, textile chemicals and raw materials has been fluctuating in the last five years.  According to the Central Bureau of Statistics (BPS) the Indonesian garments export in 2005 amounted to 369,500 tons (US$ 4,967.0 million) to 399,600 tons (US$ 5,608.1 million) in 2006, to 399,800 tons (US$ 5,712.9 million) in 2007 to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393,400 tons (US$ 5,735.6 million) in 2009 and rose again to 445,200 tons (US$ 6,598.0 million) in 2010 and to 450,900 tons (US$ 7,801.5 million) in 2011.

 

 

The Indonesia textile products export in 2005 amounted to 1,427.3 tons (US$ 3,704.0 million) to 1,477.800 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 declined to 1,312,200 tons (US$ 4,127.9 million) in 2008 to 1,369,600 tons (US$ 3,602.8 million) in 2009 to 1,525,900 tons (US$ 4,721.8 million) in 2010 and declined to 1,493,3000 tons (US$ 5,563.3 million) in 2011.   The export volume and value of the national TPT products in 2005 to 31 March 2012 are pictured on the following table.

 

      Year

Garment

Textile Products

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012*

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

111.7

3,887.2

4,037.9

4,351.9

4,967.0

5,608.1

5,712.9

6,092.2

5,735.6

6,598.0

7,801.5

1,873.3

1,425.9

1,307.5

1,300.4

1,427.3

1,477.8

1,473.6

1,312.2

1,369.6

1,525.9

1,493.3

   375.7

3,075.9

3,064.6

3,354.6

3,704.0

3,908.6

4,178.0

4,127.9

3,602.8

4,721.8

5,563.3

1,318.1

Source:  Central Bureau of Statistic       *) January to March 2012

 

      According to financial report audited by Hadori Sugiarto Adi & Rekan, Certified Public Accountant the total income/revenues of P.T. BI in 2010 amounted to US$. 110.3 million with a net profit of US$. 4.6 million, increased to US$. 123.3 million with a net profit of US$. 3.7 million in 2011.  Up to present, we have yet to gain the statement of income of the company in fiscal 2012.  However, we estimated that total income/revenues of the company in 2012 rose again to US$. 137.5 million with a net profit of US$. 4.1 million. The Company’s Financial Statement as of 31 December 2010 and 2011 are attached.  So far we did not hear that P.T. BI has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.

 

P.T. BI's management is headed by Mr. Krishna Kumar Agrawal (73), a professional manager with more than 40 years of experience in textile industry and trading.  In daily activities, he is assisted by seven directors namely Mr. Devendra Singh Chatha (67), Mr. Arvind Kumar Shankerlal Ladha (52), Mr. Rajesh Kumar Jain (52), Mr. Abhay Kumar Agarwal (41), Mr. Aninrudha Atmaram Dhongade (55), Mr. Sunil Kumar (46) and Mr. Shailendra Kumar (40). The company's management has a quite good reputation in textile industry. They have wide relations with many local companies operating in the textile and garment manufacturing.  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. BITRATEX INDUSTRIES is sufficiently fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

 

 

 

Attachment:

 

PT. BITRATEX INDUSTRIES

STATEMENT OF COMPREHENSIVE INCOME

For the Years Ended on December 2010 and 2011

 

                                                                                                                                              (Expressed in US Dollar)

DESCRIPTION

31 December

2011

2010

ASSETS

 

 

a. Current Assets

 

 

    - Cash and cash equivalent

320,115

213,097

    - Trade receivables

11,877,340

13,204,826

    - Inventories

12,163,863

11,362,509

    - Prepaid taxes

895,656

--

    - Other current assets

2,147,600

232,408

   Total Current Assets

27,404,575

25,012,840

b. Non Current Assets

 

 

    - Property, plant and equipment - net

44,178,125

48,610,484

    - Other Non-current assets

3,485,624

3,497,457

    Total Non Current Assets

47,663,749

52,107,941

TOTAL ASSETS = TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY

75,068,323

77,120,781

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

a. Current Liabilities

 

 

    - Trade payables

6,513,209

7,825,412

    - Other payables and accrued liabilities

2,217,901

2,316,350

    - Taxes payable

583,220

1,976,082

    - Short-term loans

4,684,440

3,498,071

    - Current portion of long-term loans

1,858,750

1,402,506

   Total Current Liabilities

15,857,520

17,018,421

 

 

 

b. Non Current Liabilities

 

 

    - Lon-term loans

3,448,630

6,079,133

    - Other long-term liabilities

697,001

636,920

    - Deferred tax liability -net

4,868,433

4,769,068

   Total Non Current Liabilities

9,014,064

11,485,121

 

 

 

c. Shareholders’ Equity

 

 

    - Share capital

35,600,000

35,600,000

    - Retained earnings:

 

 

   * Appropriated

1,780,000

--

       * Un-appropriated

12,816,739

13,017,239

   Total Shareholders’ Equity

50,196,739

48,617,239

INCOME STATEMENT

 

 

Net Sales

123,327,260

110,342,635

Cost of Goods Sold

(108,927,376)

(95,214,397)

Gross Profit

14,399,884

15,128,238

Operating Expenses

(9,022,017)

(9,257,657)

Operating Profit

5,377,867

5,870,581

Other (Expenses) Income

(416,935)

(1,338,848)

Profit Before Income Tax

4,960,934

4,531,733

Income Taxes

 

 

Net profit

3,715,501

4,596,713

Notes: Audited by Hadori Sugiarto Adi & Rekan (Certified Public Accountants)


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.84.09

Euro

1

Rs.72.44

 

 

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.