MIRA INFORM REPORT

 

 

Report Date :

05.01.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. SINAR PANGJAYA MULIA TEXTILE INDUSTRY

 

 

Formerly Known As :

P.T. PANG JAYA TEXTILE

 

 

Registered Office :

Jalan Mahar Marta Negara No. 151 (Jalan Leuwigajah No. 151) Cimahi, Bandung, 40533 West Java

 

 

Country :

Indonesia

 

 

Year of Incorporation :

1980

 

 

Com. Reg. No.:

No. AHU-41986.AH.01.02.TH.2010

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Textile Industry

 

 

No. of Employees :

455 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. SINAR PANGJAYA MULIA TEXTILE INDUSTRY

 

 

Address

 

Head Office & Factory

Jalan Mahar Marta Negara No. 151

(Jalan Leuwigajah No. 151)

Cimahi, Bandung, 40533

West Java

Indonesia

Phones             - (62-22) 6038757 (Hunting), 6038723, 6072245

Fax                   - (62-22) 6037447

E-mail               - yantiop1@bdg.uterim.net.id

Website            -           http://www.pangjaya.com 

Land Area         - 20,000 sq. meters

Building Space  - 13,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

a.   1980 as C.V. PANG JAYA

b.   11 April 1984 as P.T. PANG JAYA TEXTILE

c.   2 February 1985 as P.T. SINAR PANGJAYA MULIA TEXTILE INDUSTRY

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-1947.HT.01.01.TH.99

  Dated 26 January 1999

- No. AHU-41986.AH.01.02.TH.2010

  Dated 25 August 2010

 

Company Status :

National Private and Domestic Investment (PMDN) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.224.590.8-441.000

 

 

The Capital Investment Coordinating Board

- No. 333/I/PMDN/1987

  Dated 25 August 1987

- No. 71/II/PMDN/1990

  Dated 21 February 1990

 

Related Company :

P.T. OPELON GARMENT INDONESIA (Garment Manufacturing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

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

Issued Capital                                  : Rp. 60,000,000,000.-

Paid up Capital                                : Rp. 60,000,000,000.-

 

Shareholders/Owners :

a. Mrs. Kwee Fei Ling                                             - Rp. 48,000,000,000.-

    Address : Jl. Menjangan No. 5

                    Bandung, West Java

                    Indonesia

b. Mr. Yanto Sukandar                                           - Rp. 12,000,000,000.-

    Address : Jl. Menjangan No. 5

                    Bandung, West Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Textile Industry

 

Production Capacity :

Knitted Fabrics                                - 11,250,000 meters p.a.

 

Total Investment :

a.   Equity Capital                            - Rp. 60.0 billion

b.   Loan Capital                              - None

c.   Total Investment                         - Rp. 60.0 billion

 

Started Operation :

1980

 

Brand Name :

Sinar Pangjaya Mulia Textile Industry

 

Technical Assistance :

None

Number of Employee :

455 persons

 

Marketing Area :

Local    - 100%

 

Main Customer :

Garment Manufacturing

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. APAC INTI CORPORA

b. P.T. ARGO PANTES Tbk

c. P.T. GUNAWANTEX

d. P.T. INDORAMA SYNTHETICS Tbk

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank UOB INDONESIA Tbk

      Jalan Jend. Sudirman No. 55 A

      Bandung, West Java

      Indonesia

b.   P.T. Bank NEGARA INDONESIA Tbk

      Jalan Jend. Sudirman No. 331

      Bandung, West Java

      Indonesia

c.   Hongkong and Shanghai Banking Corp. Ltd.

      Jalan Asia Afrika No. 141-147

      Bandung, West Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 


FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 108.0 billion

2011 – Rp. 115.0 billion

2012 – Rp. 123.0 billion

 

Net Profit (estimated) :

2010 – Rp.   8.6 billion

2011 – Rp.   9.2 billion

2012 – Rp. 10.1 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Yong Dedy Sukandar

Director                                           - Mrs. Yanti Sukandra

 

Board of Commissioners :

President Commissioner                   - Mrs. Kwee Fei Ling

Commissioner                                 - Mr. Yanto Sukandar

 

Signatories :

President Director (Mr. Yong Dedy Sukandar) or the Director (Mrs. Yanti Sukandar) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

Originally named C.V. PANG JAYA set up in 1980 in Bandung, West Java with a legal status of partnership with sleeping partners. The founders are Mr. Yong Dedy Sukandar as active partner and his wife Mrs. Kwee Fei Ling as silent partner. They are Indonesian business persons of Chinese extraction. In April 1984, the company renamed to P.T PANG JAYA TEXTILE with a legal status of Limited Liability Company. The authorized capital was set up at Rp. 200,000,000 issued capital at Rp. 40,000,000 entirely paid up. Its shareholders are Mr. Yong Dedy Sukandar, his wife Mrs. Kwee Fe Ling and Mrs. Kwee Hong Ing. In February 1985, the company was renamed to P.T. SINAR PANGJAYA MULIA TEXTILE INDUSTRY (P.T. SPMTI). In October 1998 the authorized capital was raised to Rp. 600,000,000 issued and paid up capital to Rp. 200,000,000. Later in January 2000 the authorized capital will be raised again to Rp. 6,000,000,000 entirely issued and paid up. The latest in June 2010 the authorized capital was raised again to Rp. 60,000,000,000 wholly issued and paid up. On the same occasion Mr. Yong Dedy Sukandar and Mrs. Kwee Hong Ing pulled out and the whole shares sold to Mr. Yanto Sukandar as new shareholder. With this time the composition of its shareholders has been changed to become Mrs. Kwee Fei Ling (80%) and her son Mr. Yanto Sukandar (20%). The deed of amendment was made by Mrs. Dewi Sepriawati, SH., a public notary in Bandung and was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-41986.AH.01.02.TH.2010 dated August 25, 2010.

 

We observe that majority share is controlled by Mrs. Kwee Fei Ling and her son Mr. Yanto Sukandar. They are also founders and business stakes owners of P.T. OPELON GARMENT INDONESIA, a private national company engaged in the field of garment manufacturing.

 

P.T. SPMTI was established as a domestic capital investment (PMDN) company dealing with textile and garment manufacturing. Its plant is located at Jalan Mahar Marta Negara No. 151 (Jalan Leuwigajah No.151), Cimahi, Bandung, West Java, on a land of some 2.0 hectares. The plant had been operating since 1980 and being expanded in 1987 and 1990. Specializing in elastic fabric products in circular and warp knit, P.T. SPMTI is one of the biggest knitting company in Indonesia. It has been more than 25 years that the company manages to keep its operation, producing high quality knitting products either exclusively designed by the company or in accordance with consumer's need. P.T. SPMTI was in fact the first company which specialized itself in producing elastic fabric in Indonesia. It is due to this reason that they have better experience and know-how. All of the production process is readily covered within our installation, right from the beginning of the designing, knitting, drying, and finishing of all of the products. All stages are supported by experts in their respective fields, making the company to be on the leading edge of elastic fabric products. P.T. SPMTI is in side by side with its sister company namely P.T. OPELON GARMENT INDONESIA, producing garments based on elastic fabrics.

 

Currently it has a production capacity of 11,250,000 meters knitted fabrics per annum. Using Europe standard machines, P.T. SPMTI is implementing about 100 machines with 24 hours operational capacity. Apart from custom products, P.T. SPMTI already has a vast library of design as many as 5000 items. Based on elastic fabric or spandex, P.T. SPMTI products are; casual wear, sport wear, under garment, upholsteries for automotive, velour for baby related products, and polar fleece.

 

Mrs. Yanti Sukandar, the director of P.T. SPMTI said that large portion of knitted fabrics production is used for owned needs and the rest is sold locally thorough textile shops and distributors in Jakarta (Tanah Abang Textile Centre), Bandung, Semarang, Surabaya, and Bali. She went on to say that global economic crisis occurred since October 2008 brought a negative impact on its business due to lack of local demand. The operation growth of P.T. SPMTI has been fluctuating in the last five years on account of very tight competition from China, South Korea and Vietnam. The local markets are also flooded by the Chinese and South Korean textile products.

 

      The demand for textile chemicals tended to be fluctuating within the last five years in line with the fluctuating of Indonesian textile industry in general. According to the Central Bureau of Statistics (BPS) the Indonesian garments export in 2002 amounted to 333,100 tons (US$ 3,887.2 million) to 339,000 tons (US$ 4,037.9 million) in 2003 to 327.300 tons (US$ 4,351.9 million) in 2004 to 369.500 tons (US$ 4,967.0 million) in 2005 to 399,600 tons (US$ 5,608.1 million) in 2006, to 399,800 tons (US$ 5,712.9 million) in 2007 rose to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393.400 tons (US$ 5,735.6 million) in 2009 and 445,200 tons (US$ 6,598.0 million) in 2010 rose to 450.9 ton (7,801.5 million) in 2011.. The Indonesia textile products export in 2002 amounted to 1,425.9 tons (US$ 3,075.9 million) to 1,307.5 tons (US$ 3,064.6 million) in 2003 to 1,300.4 tons (US$ 3,354.6 million) in 2004 to 1,427.3 tons (US$ 3,704.0 million) in 2005 to 1,477.8 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 decrease to 1,312.2 tons (US$ 4,127.9 million) in 2008 rose to 1,369.6 tons (US$ 3,602.8 million) in 2009 and to 1,525.9 tons (US$ 4,721.8 million) in 2010 decreased to 1,493.3 tons (5,563.3 million) in 2011.

 

The domestic textile producers are pessimism the textile export in 2009 could match the export numbers in 2008. The blow of the global economic crisis is resulted in the reduced of demand from the export destination countries like the United States (U.S.), Japan, and European Union region. While this year’s the exports expected fall into US$ 9.7 billion. The Chairman of the Indonesian Textile Association (API), Mr. Benny Soetrisno said that the decline in global purchasing power caused of the demand in the Indonesian textile products could not be able to grow as tight as 2008. The export volume and value of the national TPT products in 2002 to 2011 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

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

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

1,425.9

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

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

Source: Central Bureau of Statistic     

 

Until this time P.T. SPMTI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. SPMTI 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. 108.0 billion rose to Rp. 115.0 billion in 2011 increased to Rp. 123.0 billion in 2012 and projected to go on rising by at least 4% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 10.1 billion and the company has an estimated total networth of at least Rp. 80.0 billion. 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. SPMTI is led by Mr. Yong Dedy Sukandar (74) a businessman and with experience in textile and garment manufacturing. Daily operation he is assisted by his daughter Mrs. Yanti Sukandar (37) as director who is considered quite creative and dynamic. The management has maintained a wide business relation among textile industries in Bandung and surroundings and a wide marketing network within and outside the country. Good relation with government sectors has also been maintained properly. 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. SINAR PANGJAYA MULIA TEXTILE INDUSTRY is sufficiently fairly good for business transaction.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.84

UK Pound

1

Rs.88.16

Euro

1

Rs.71.54

 

 

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.