MIRA INFORM REPORT

 

 

Report Date :

02.07.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. KING TRADING

 

 

Registered Office :

Jalan Raya Kerobokan No. IX Kelurahan Banjar Semer Kerobokan, Kecamatan Kuta Utara Badung, 80361, Bali

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.01.1998

 

 

Com. Reg. No.:

No. AHU-31549.AH.01.02.TH.2011

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Garment Manufacturing (Tailored)

 

 

No. of Employees :

11 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

 


BASIC SEARCH

 

Name of Company :

P.T. KING TRADING

 

Address :

Head Office & Workshop

Jalan Raya Kerobokan No. IX

Kelurahan Banjar Semer Kerobokan, Kecamatan Kuta Utara

Badung, 80361

Bali

Indonesia

Phone               - (62-361) 8475577

Fax                   - (62-361) 8475577

Land Area         - 800 sq. meters

Building Space  - 300 sq. meters

Region              - Industrial Zone

Status               - Rent

 

Date of Incorporation :

20 January 1998

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. C-184 HT.01.01.TH.2000

            Dated 5 January 2000

-           No. AHU-31549.AH.01.02.TH.2011

            Dated 23 June 2011

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.835.276.5-906.000

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         : Rp. 1,000,000,000.-

Issued Capital   : Rp.  400,000,000.-

Paid up Capital : Rp.  400,000,000.-

 

Shareholders/Owners :

a. Mr. Stephen Martin Clark                                                      - Rp. 300,000,000.-

    Address : Jl. Canggu Permai Block A No. 5

                    Desa Canggu, Kecamatan Kuta Utara

                    Badung, Bali

                    Indonesia

b. Mrs. Ruth Maria Rentina Simamora                                      - Rp.   50,000,000.- 

    Address : Jl. Kembang III/72, RT. 009 RW. 001

                    Kelurahan Kwitang, Kecamatan Senen

                    Jakarta Pusat

                    Indonesia

c. Mrs. Yosiati                                                                          - Rp.   50,000,000.- 

    Address : Jl. Gunung Soputan/ Puskesmas 19

                    Dusun Abian Timbul, Kecamatan Denpasar

                    Denpasar, Bali

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Garment Manufacturing (Tailored)

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1998

 

Brand Name :

FIRGROUND

 

Technical Assistance :

None

 

Number of Employee :

11 persons

 

Marketing Area :

Export              - 80%

Local                - 20%

 

Main Customer :

Buyers in Australia

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. LAXMI UTAMA

b. P.T. MODA GARMINDO MAS

c. THE BEAUTY TAILOR

d. C.V. WHIDI JAYA

e. Etc.

 

Business Trend :

Declining

 

 

BANKER, AUDITOR & LITIGATION

 

Banker   :

P.T. Bank ANZ INDONESIA

Jalan Teuku Umar No. 10

Badung, Bali

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 5.0 billion

2011 – Rp. 4.2 billion

2012 – Rp. 3.5 billion

 

Net Profit (estimated) :

2010 – Rp. 0.4 billion

2011 – Rp. 0.3 billion

2012 – Rp. 0.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                    - Mr. Stephen Martin Clark

Director            - Mrs. Yosiati

 

Board of Commissioners :

Commissioner   - Mrs. Ruth Maria Rentina Simamora

 

Signatories :

President Director (Mr. Stephen Martin Clark) or the Director (Mrs. Yosiati) 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

 

Based on investigation the correct name of the Subjects is P.T. KING TRADING not KING TRADING as stated in your order Ref. No. 227159 dated 26 June 2013.

 

P.T. KING TRADING (P.T. KT) was established in Badung, Bali on 20 January 1998 with the authorized capital of Rp. 1,000,000,000 issued capital of Rp. 400,000,000 fully and paid up. The founding and shareholders of the company are Mr. Stephen Martin Clark of the United Kingdom (75%), Mrs. Yosiati (12.5%) and Mrs. Ruth Maria Rentina Simamora (12.5%), both are indigenous businesswoman. The company notary deed has been changed a couple of times. Then according to the latest revision of notary documents of Mrs. Martalena, SH., No. 06 dated 18 April 2011 the company board of director and the board of commissioner reappointed to lead and runs of the company’s operation.

 

The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-31549.AH.01.02.TH.2011 dated June 23, 2011.

 

P.T. KT has been operating since 1998 engaged in the field of garment manufacturing/tailored such as uniform, design & manufacture jumpsuits, dresses, knitwear, tops, bottoms etc. The company manages a workshop located at Jalan Raya Kerobokan No. IX, BR. Kerobokan, Kuta Utara, Badung, Bali standing on 800 sq. meters. The company produces various of woman wears with various types based on job orders from buyers in Australia. Most of the raw material is obtained from P.T. WARGA JAYA TEXTILE in Bali and the rest is also imported from United Kingdom, and India. Previously they has 15 person of seamstress (tailor), however since the early of 2009 the company manages 8 persons of seamstress (tailor) because the job orders was dropped drastically. Mrs. Amelia Hutagalung explained some 80% of the company products exported of the products to Australia and the rest 20% marketed locally through boutiques, traders of garments in Bali and surroundings. Mrs. Amelia also added the whole products using FIRGROUND brand. We observe the operation of P.T. KT has been declining in the last five years.  

 

The textile and textile product (TTP) industry is one of the industries that has contrived to with stand the protracted global economic crisis. At a time when the average national industrial utilization rate fell to under 20% in 2008, TTP plants on the other hand were operating at an utilization rate of above 81.6%. This was attributable to the ability of textile and garment producers to maintain the utilization rate of plants at a high level by aggressively stepping up exports. 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 decline to 450,200 tons (US$ (7,304.8 million) in 2012.

 

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 increase to 1,508.5 tons (US$ 5,278.1 million) in 2012.

 

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 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

350.2

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

7,304.8

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

1,508.5

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

5,278.1

 Source: Central Bureau of Statistic     

 

Until this time P.T. KT has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of the company 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. 5.0 billion declined to Rp. 4.2 billion in 2011 dropt to Rp. 3.5 billion in 2012 and projected to go on rising by at least 3% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 0.2 billion and the company has an estimated total networth of at least Rp. 1.0 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. KT is led by Mr. Stephen Martin Clark (54) a businessman and professional manager with garment manufacturing and tailored. Daily activity he is assisted by Mrs. Yosiati (42) 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. Considering P.T. KING TRADING operation declining in the last five years, it is necessary to observe caution in pledging loan for the company without sufficient collateral.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.15

UK Pound

1

Rs.90.05

Euro

1

Rs.77.06

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.