MIRA INFORM REPORT

 

 

Report Date :

27.07.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. LAWE ADYAPRIMA SPINNING MILLS

 

 

Registered Office :

Wisma Argo Manunggal, 17th Floor, Jl. Gatot Subroto Kav. 22, Jakarta 12930

 

 

Country :

Indonesia

 

 

Date of Incorporation :

18.07.1990

 

 

Com. Reg. No.:

No. AHU-AH.01.10-01508

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Spinning Mills Industry

 

 

No. of Employees :

620

 

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. LAWE ADYAPRIMA SPINNING MILLS

 

 

Company Address

 

Head Office

Wisma Argo Manunggal, 17th Floor

Jl. Gatot Subroto Kav. 22

Jakarta 12930

Indonesia

Phones             - (62-21) 2520069 (hunting)

Fax                   - (62-21) 2521551

Email                - laweadyaprima@argo.co.id

Building Area     - 22 storey

Office Space      - 450 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Jl. Rumah Sakit No. 112

Ujung Berung, Bandung 40612

West Java, Indonesia

Phones             - (62-22) 7800448

Fax                   - (62-22) 7800174

Land Area         - 9.5 hectares

Building Space  - 8,200 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

18 July 1990

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

  a.  No. AHU-33417.AH.01.02.Tahun 2008

      Dated 16 June 2008

  b.  No. AHU-AH.01.10-00165

      Dated 06 January 2010

  c.  No. AHU-AH.01.10-01508

      Dated 16 January 2012

 

 

Company Status

 

Domestic Investment Company (PMDN)

 

           

Permit by the Government Department

 

The Department of Finance

  NPWP No. 01.356.594.0-062.000

 

The Capital Investment Coordinating Board

     - No. 341/I/PMDN/1993

       Dated 5 November 1993

     - No. 244/T/INDUSTRI/1998

       Dated 10 June 1998

 

 

Related/Affiliated Company

 

A member of the ARGO MANUNGGAL Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp. 50,000,000,000.-

Issued Capital                - Rp. 25,000,000,000.-

Paid up Capital              - Rp. 25,000,000,000.-

 

Shareholders/Owners :

a. PT. TUNAS KORALINDO             - Rp. 8,541,675,000.- (34.17%)

    Address : Wisma Argo Manunggal

                    Jl. Gatot Subroto Kav. 22

                    Jakarta 12930

                    Indonesia

b. Mr. The Nicholas                        - Rp. 8,437,500,000.- (33.75%)

    Address : Jl. Terusan Hanglekir II Kav. W No. 43

                    Jakarta Selatan

                    Indonesia 

c. Mr. Hungkang Sutedja               - Rp. 8,020,825,000.- (32.08%)

    Address : Jl. Terusan Hanglekir II Kav. WG No. 6

                    Jakarta Selatan

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Spinning Mills Industry

 

Production Capacity :

Textile Yarns     -  134,600 bales p.a.

 

Total Investment :

  a. Equity Capital           - Rp.   30.0 billion

  b. Loan Capital             - Rp. 142.0 billion

  c. Total Investment       - Rp. 167.0 billion

 

Started Operation :

1994

 

Brand Name :

None

 

Technical Assistance :

None

 

Number of Employee :

620 persons

 

Marketing Area :

Local                                                   - 80%

Export   - 20%

 

Main Customers :

a. A member of the ARGO MANUNGGAL Group

b. Overseas buyers in Belgium, Germany, Philippine, etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Ade Textile Indutry

b. PT. Apac Inti Corpora

c. PT. Budi Texindo Prakarsa

d. PT. Industri Sandang Nusantara

e. PT. Marga Sandang

f.  PT. Natatex Prima Corp.

g. PT. Panasia Indosyntec Tbk.

h. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank MANDIRI Tbk

      Jalan Gatot Subroto Kav. 36-38

      Jakarta 12190

      Indonesia

b.   P.T. Bank CIMB NIAGA Tbk

      Jalan Jend. Sudirman Kav. 58

      Jakarta 12190

      Indonesia

 

c.   CITIBANK N.A.

      Jalan Jend. Sudirman Kav. 54-55

      Jakarta 12190

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 660.0 billion

2010 – Rp. 695.0 billion

2011 – Rp. 720.0 billion

2012 – Rp. 770.0 billion

 

Net Profit (estimated) :

2009 – Rp. 26.0 billion

2010 – Rp. 27.4 billion

2011 – Rp. 28.5 billion

2012 – Rp. 30.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. The Nicholas

Director                                           - Mr. Hong Jung Kwang

 

Board of Commissioners :

President Commissioner                   - Mr. Hungkang Sutedja

Commissioner                                 - Mr. Otjeng Sutedja

 

Signatories :

President Director (Mr. The Nicholas) or the Director (Mr. Hong Jung Kwang) which must be approved by Board of Commissioners

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

OVERALL PERFORMANCE

 

P.T. LAWE ADYAPRIMA SPINNING MILLS (P.T. LASM) was established in July 1990 with the authorized capital of Rp. 6,000,000,000.- issued capital of Rp. 1,200,000,000.- wholly paid-up. Founders and original shareholders are Mr. Musa (an indigenous businessman), Mr. Otjeng Sutedja, Mr. Hartono Hasan, Mrs. Lie Ang Sioe Nio and Mr. Karman Widjaja, all are Indonesian businessmen/woman of Chinese extraction. The articles of association of the company have frequently been changed for a couple of times. In December 1997 the authorized capital was increased to Rp. 50,000,000,000.-  issued capital to Rp. 25,000,000,000.-  entirely paid-up.  On the same occasion, its shares haven been entirely taken over by P.T. TUNAS KORALINDO, Mr. Haji Syamsudin Matalatta and Mr. Harry Harsanto.

 

The latest April 2007, Mr. Haji Syamsudin Matalatta and Mr. Harry Harsanto pulled out and whole shares are sold to Mr. The Nicholas and Mr. Hungkang Sutedja, both are Indonesian businessmen of Chinese Extraction.  The composition shareholders of the company are P.T. TUNAS KORALINDO (34.17%), Mr.The Nicholas (33.75%) and Mr. Hungkang Sutedja (32.08%).  Since then, no further changes have been in its shareholding composition and capital structure to date. This latest amendment to Articles of Association was approved by the Minister of Law and Human Rights of the Republic of Indonesia by virtue of Decision Letter No. AHU-AH.01.10-01508 dated 16 January 2012.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

We observe that P.T. TUNAS KORALINDO is a member company of the ARGO MANUNGGAL Group, a big sized company group headed by Mr. The Ning (Nien) King and his family member such as Mr. The Nicholas and Mr. Hungkang Sutedja.

 

P.T. LASM obtained a Domestic Investment (PMDN) facility dealing with spinning mills operating as from May 1994. Basically, P.T. LASM took over the assets and operation of P.T. PATAL DHARMA KALIMAS operating as from 1990 whose plant located at Jalan Rumah Sakit No. 112, Ujung Berung, Bandung, West Java standing on 9.5 hectares. The plant has a production capacity of 134,600 bales spurn yarn per annum. The raw materials (cotton) to produce the above products are mostly obtained from the USA, Australia, Pakistan and India. Mr. Chowdhry, a marketing staff of the company explained that main product of the company are cotton yarn, 85% cotton and fiber synthetic yarn. He added that around 80% of products is marketed locally while the rest 20% is exported to European countries such as Belgium, Germany and Asia such as Philippine and Brunei.  P.T. LASM is still classified as a medium sized company of its kind in Indonesia and its business operation has kept on growing slowly in the last five years.

 

Generally, demand for textile and textile product including cotton yarn, 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 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 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 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 1,477.800 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 2002 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

 

Until this time P.T.  LASM 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. LASM’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover of the company in 2010 amounted to Rp. 695.0 billion increased to Rp. 720.0 billion in 2011 and rose again to Rp. 770.0 billion in 2012.  The operation in 2012 yielded a net profit at least Rp. 30.0 billion and the company has a total net worth of Rp. 380.0 billion.  It is projected that total sales turnover of the company will increase at least 5% in 2013.    So far we did not hear that P.T. LASM has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court. The company usually pays its debts punctually to suppliers.  

 

P.T. LASM’s management is led by Mr. The Nicholas (46) as President Director.  He is also a top executive of the ARGO MANUNGGAL Group, with more than 18 years experience in textile and textile products trading and manufacturing. In his day-to-day activities, he is assisted by Mr. Hong Jung Kwang (60) as Director. 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 a  business malpractice 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. LASM is appraised to be good for business transaction.  However, in view of the economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

Attachment:

 

List of the ARGO MANUNGGAL Group Members

1.       ACRYL TEXTILE MILLS, P.T. (Acrylic Spun Yarn Manufacturing Industry)

2.       ADHIHUTAMA MANUNGGAL, P.T. (Trading)

3.       ALFA GOLDLAND REALTY, P.T. (Housing Development)

4.       ARGA FAJAR TEXTILE INDUSTRY, P.T. (Integrated Textile Industry)

5.       ARGO BENI MANUNGGAL, P.T. (Integrated Textile Industry)

6.       ARGO BEKTI MANUNGGAL, P.T. (Integrated Textile Industry)

7.       ARGO MANUNGGAL INTERNATIONAL, P.T. (Investment Holding)

8.       ARGO PANTES, P.T. (Integrated Textile Mills)

9.       BEKASI FAJAR INDUSTRIAL ESTATE, P.T. (Industrial Estate Management)

10.   BENINDO SARANA, P.T. (Trading)

11.   BIMA BISALLOY, P.T. (Trading and Importing of Steel Plates)

12.   BINA SATWA, P.T. (Poultry Formula Feed Manufacturing Industry)

13.   BISMA NARENDRA, P.T. (Metal Coated Processing)

14.   BUDI DHARMA JAKARTA, P.T. (Steel Melting and Rolling Industry)

15.   CANDRA SARI CHEMICAL, P.T. (Chemical Industry)

16.   CERAT BINA TEXTILE INDONESIA, P.T. (Trading)

17.   CITRA MANUNGGAL FEEDMILL, P.T. (Poultry Feed Milling)

18.   DAYA MANUNGGAL TEXTILE, P.T. (Integrated Textile Industry and Investment Holding)

19.   DAYA SAKTI PERDIKA, P.T. (Rental Office Block Management and Investment Holding)

20.   DEVISI MULTI SEJAHTERA, P.T. (Investment Holding)

21.   DHARMA KALIMAS, P.T. Patal (Spinning and Weaving)

22.   DHARMA MANUNGGAL TEXTILE, P.T. (Integrated Textile Industry and Investment Holding)

23.   DHARMA MARUWA GARMENT INDUSTRY, P.T. (Garment Manufacturing)

24.   DHARMA VALMODE, P.T. (Garment Manufacturing)

25.   GAYA PERSAKTI SYNTHETIC, P.T. (Spinning Mills)

26.   GRAND PERINTIS INDUSTRY, P.T. (Integrated Textile Industry)

27.   GRAND TEXTILE INDUSTRY, P.T. (Weaving, Finishing and Printing Industry)

28.   GRIYA BEKASI ESTETIKA, P.T. (Real Estate Management)

29.   INDONESIAN SYNTHETICS TEXTILE MILLS, P.T. (Synthetic Textile Manufacturing)

30.   INTI MANUNGGAL MULTI DEVELOPMENT, P.T. (Real Estate Development)

31.   JAKARTA TRIAPPAREL, P.T. (Garment Manufacturing)

32.   KAMALTEX, P.T. (Spinning Mills)

33.   KRAWANG UTAMA TEXTILE INDUSTRIES, P.T. (Integrated Textile Industry)

34.   KUKUH MANUNGGAL FIBER INDUSTRIES, P.T. (Synthetic Staple Fibre Manufacturing and Investment Holding)

35.   KURABO MANUNGGAL TEXTILE INDUSTRIES, P.T. (Integrated Textile Industry)

36.   LAWE ADYAPRIMA SPINNING MILLS, P.T. (Spinning)

37.   MALIGI SPINNING MILL LTD., P.T. (Spinning Mills)

38.   MANGGIS, P.T. Peternakan Ayam (Poultry)

39.   MANUNGGAL GENERAL INSURANCE, P.T. (Marine and Fire Insurance Services)

40.   MANUNGGAL OTOMOTIF, P.T. (Motorcycle Manufacturing)

41.   MANUNGGAL PRIME DEVELOPMENT, P.T. (Real Estate & Property Management)

42.   MANUNGGAL MULTI FINANCE, P.T.(Financing)

43.   MATAHARI DIPTANUSA, P.T. (Investment Holding)

44.   MEGAPUTRA MANUNGGAL, P.T. (Insurance brokerage Services)

45.   MEGAPOLIS MANUNGGAL INDUSTRIAL ESTATE, P.T. (Industrial Estate Management)

46.   MENTENG GRIYALESTARI, P.T. (Real Estate & Apartment Management)

47.   METROPOLITAN MANUNGGAL DEVELOPMENT, P.T. (Real Estate Management)

48.   MULTI SWEET INDUSTRIES, P.T. (Confectionery Manufacturing)

49.   PERINTIS TEXTILE INDUSTRY, P.T. (Textile Industry and Investment Holding)

50.   POLA SEJATI SPINNING MILLS, P.T. (Spinning Mills)

51.   POLLUX INDONESIA TEXTILES INDUSTRY, P.T. (Textile Manufacturing)

52.   PRALON CORPORATION, P.T. (PVC Pipes & Fitting, PVC Corrugated Sheets and PVC Compound Manufacturing Industry)

53.   PRESIDENT FEED INDONESIA, P.T. (Cattle food Manufacturing)

54.   RAGAM LOGAM, P.T. (Trading and Investment Holding)

55.   SAJIAN NARENDRA, P.T. (Investment Holding)

56.   SEGORO ADIDAYA STEEL, P.T. (Concrete Bar Manufacturing)

57.   SOUTH GRAND TEXTILE MILLS, P.T. (yarn Spinning and Dyeing)

58.   SUMBER BAJA MAKMUR, P.T. Pabrik Kawat (Barbed Wires and G.I. Wires Manufacturing)

59.   SUMBER SEJAHTERA JAKARTA, P.T. (Cement Industry and Investment Holding)

60.   SUMERA TRADING, P.T. (Trading Company)

61.   SUTRATEX CITRA SEJATI, P.T. (Textile Industry and Investment Holding)

62.   TASINDO TASSA, P.T. (Travelling and Sport Bag Manufacturing)

63.   TATA RUBBERINDO INDUSTRIES, P.T. (Rubber Glove Manufacturing)

64.   THE FAST CHANNEL INDONESIA ELECTRONICS, P.T. (Computer Component Manufacturing)

65.   TIGA MANUNGGAL SYNTHETIC INDUSTRIES, P.T. (Integrated Textile Industry)

66.   TOPTONE ELECTRONIC INDUSTRIES, P.T. (Electronic Component Manufacturing)

67.   TOYO ASAHI BICYCLE INDUSTIES, P.T. (Bicycle Manufacturing)

68.   TRILINK CYCLEINDO INDUSTRIES, P.T. (Bicycle/Tricycle and Toy's Spare Part and Component Manufacturing)

69.   TRISTATE GENERAL CORPORATION, P.T.  (Trading and Supplier)

70.   TRISTATE HOVERCRAFT INDUSTRIES, P.T. (Hovercraft Assembling)

71.   TRISTATE TEXTILE LTD., P.T.  (Spinning Mills)

72.   TUNAS KORALINDO, P.T. (Investment Holding)

73.   WORLD YAMATEX LTD., P.T. (Weaving)

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.91

UK Pound

1

Rs.90.68

Euro

1

Rs.78.22

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.