|
Report Date : |
06.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
P.T. INDO-BHARAT RAYON |
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|
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|
Registered Office : |
Menara Batavia, 16th Floor Jalan K.H. Mas Mansyur Kav. 126 Jakarta 10220 |
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Country : |
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Date of Incorporation : |
05.09.1980 |
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|
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Com. Reg. No.: |
No. AHU-AH.01.10-23948 |
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|
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Legal Form : |
Limited Liability Company |
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|
|
|
Line of Business : |
Viscose Rayon Staple Fibre and Acrylic Fibre Industry |
|
|
|
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No. of Employees : |
1,230 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 : |
Good |
|
Payment Behaviour : |
Regular |
|
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 |
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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
P.T.
INDO-BHARAT RAYON
Head Office
Menara Batavia,
16th Floor
Jalan K.H. Mas Mansyur Kav. 126
Jakarta 10220
Indonesia
Phones -
(62-21) 5722452 (Hunting)
Fax - (62-21) 5722417
E-mail - jktoff@adityabirla.com
Building Area - 25 storey
Office Space - 230 sq. meters
Region - Commercial
Status - Rent
Factory
Desa Cilangkap
Purwakarta
West Java
Indonesia
Phones -
(62-22) 202041-44
Fax - (62-22) 201349
E-mail - arun.khosla@adityabirla.com
Land Area - 600,000 sq.
meters
Building Area - 230,000 sq.
meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation :
5 September 1980
Legal Form :
P.T. (Perseroan
Terbatas) or Limited Liability Company
Company Reg.
No. :
The Ministry of Law and Human Rights
- No. AHU-AH.01.10-12520
Dated 7 August 2009
- No. AHU-AH.01.10-19117
Dated 28 July 2010
- No.
AHU-AH.01.10-23948
Dated
26 July 2011
Company Status :
Foreign Investment (PMA) Company
Permit by the Government Department
:
a. The
President of the Republic of Indonesia
No. B-22/Pres/6/1980
Dated
3 June 1980
b. The
Capital Investment Coordinating Board
-
No. 16/I/PMA/1983
Dated
24 June 1983
-
No.
39/II/PMA/1983
Dated
8 December 1983
-
No. 415/III/PMA/1991
Dated
1 July 1991
-
No. 207/III/PMA/1992
Dated
16 March 1992
-
No. 95/II/PMA/1993
Dated
21 September 1993
- No. 227/II/PMA/2002
Dated
22 October 2002
- No. 129/II/PMA/2004
Dated
11 August 2004
- No. 80/II/PMA/2005
Dated 31 March 2005
- No. 25/II/PMA/2007
Dated
25 January 2007
c. The
Department of Industry
No. 427/Sk/X/1977
Dated
24 October 1977
d. The
Department of Finance (Directorate General of Tax)
NPWP
No. 01.002.087.3-092.000
Related Company :
A Member Company of the ADITYA BIRLA
Group (see attachment)
Capital
Structure :
Authorized
Capital : US$
13,000,000
Issued
Capital : US$ 10,000,000
Paid up
Capital : US$ 10,000,000
Shareholders/Owners
:
a. LONDON EUROPEAN
ASSOCIATES Ltd., of Mauritius -
US$ 4,500,000.-
b. HART GLOBAL Ltd.,
of Mauritius -
US$ 4,220,000.-
c. GRASIM INDUSTRIES
Ltd. of India -
US$ 500,000.-
d. CHARMNOX Ltd., of
Hong Kong -
US$ 380,000.-
e. GRAND ISLAND Ltd.,
of Mauritius -
US$ 300,000.-
f. MAHASMUTH
INVESTMENT Pte., Ltd., Singapore -
US 100,000.-
Lines of Business :
a. Viscose Rayon Staple Fibre and
Acrylic Fibre Industry
b. Investment Holding
Production Capacity :
a. Viscose Rayon Staple Fibres - 150,000 tons p.a.
b. Anhydrous Sodium Sulphates -
100,720 tons p.a.
c. Carbon Bi-Sulphates - 25,400 tons p.a.
d. Sulphuric Acids - 87,050 tons p.a.
e. Acrylic Fibres - 12,000 tons p.a.
f.
Electric Power -
28 MW
g. Export Import of Viscose Staple
Fiber and others
Total Investment :
a. Equity Capital -
US$ 10.0 million
b. Reinvested Profit - US$ 38.0 million
c. Loan Capital -
US$ 267.3 million
d. Total Investment -
US$ 315.3 million
Started Operation :
1982
Brand Name :
IBR
Technical Assistance :
ADITYA BIRLA of India
Number of Employee :
1,230 persons
Marketing Area :
Export - 80%
Local - 20%
Main Customer :
Buyers in Srilanka, India,
Bangladesh, Australia, South Korea, Japan etc.
Market Situation :
Very Competitive
Main Competitors :
a. P.T. INDONESIA TORAY SYNTHETICS
b. P.T. SOUTH PACIFIC VISCOSE
c. P.T. SUSILA INDAH SYNTHETIC FIBERS
d. P.T. POLYSINDO EKA PERKASA Tbk
Business Trend :
Growing
B a n k e r s :
a. P.T. Bank MANDIRI Tbk
Jalan M.H.
Thamrin No. 5
Jakarta Pusat
Indonesia
b. CITIBANK, Jakarta Branch
Landmark Building
Jalan Jend. Sudirman No. 1
Jakarta 12910
Indonesia
c. Hongkong and Shanghai Banking Corp., Ltd.
World Trade Center, 3rd Floor
Jalan
Jend. Sudirman Kav. 29-31
Jakarta Selatan
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation
record in our database
Annual Sales
(estimated) :
2010 – Rp.
3,500.0 billion
2011 – Rp.
3,585.0 billion
2012 – Rp.
3.612.0 billion
Net Profit
(estimated) :
2010 – Rp. 371.0
billion
2011 – Rp. 378.0
billion
2012 – Rp. 382.0
billion
Payment Manner
:
Almost Promptly
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr.
Sudhir Venkatesh Kulkarni
Directors - a. Mr. Halim Setiono
b.
Mr. Ajay Kumar Gupta
c.
Mr. Vishnu Prakash Sharma
d.
Mr. Chaplendu Kumar Dutta
e.
Mr. Arun Khosla
f.
Mr. Ashok Saboo
g.
Mr. Subhas Kumar Sharma
Board of Commissioners :
President Commissioner -
Mr. Krishna Kishore
Maheshwari
Vice President
Director - Mr. Chandru
Hassaram Mahtani
Commissioners - a. Mr.
Shailendra Kumar Jain
b. Mr. Kumar Mangalam Birla
c. Mr. Rajashree Birla
d. Mr. Neerja Birla
e. Mr. Askaran Agarwala
Signatories :
President Director (Mr. Sudhir Venkatesh Kulkarni) or one of
Directors (Mr. Halim Setiono, Mr. Ajay Kumar Gupta, Mr. Vishnu Prakash Sharma,
Mr. Chaplendu Kumar Dutta, Mr. Arun Khosla, Mr. Ashok Saboo or Mr. Subhas Kumar
Sharma) which must be approved by Board of Commissioners.
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded with monitor
Proposed
Credit Limit :
Small amount –
periodical review
P.T. INDO-BHARAT
RAYON (P.T. IBR) was incorporated in September 1980 with an authorized capital
of US$ 8,422,000 entirely was issued and paid up. Initially the founding
shareholders of the company were Birla AG of Switzerland, International
Industrial Management and Investment Corporation of Panama, Mirapa Ltd., of
Liechtenstein, Thakral Holdings (HK) Ltd., of Hong Kong, The Gwalior Rayon Silk
Mfg. Co. Ltd., of India, Hong Kong Indonesia Group Inc., of Hong Kong, Charmnox
Ltd., Hong Kong, A.T.E. Maskapai Private Ltd., of Singapore (all companies are
the members of the BIRLA Group based in India) and P.T. BEKLANI. In 1983, its
authorized capital was raised to US$ 32,000,000 wholly was issued and paid up.
In May 2001 the authorized capital was decreased to US$ 13,000,000 issued
capital of US$ 10,000,000 entirely paid up. The latest shareholders of the
company are LONDON EUROPEAN ASSOCIATES Ltd., of Mauritius (45%), HART GLOBAL
Ltd., of Mauritius (42.2%), GRASIM INDUSTRIES Ltd., of India (5%), CHARMNOX
Ltd., of Hong Kong (3.8%), GRAND ISLAND Ltd., of Mauritius (3%) and MAHASMUTH
INVESTMENT Pte., Ltd., Singapore (1%).
The deed of amendment was
made by DR. A. Partomuan Pohan, SH, LLM, (a public notary in Jakarta) was
approved by the Ministry of Law and Human Right in its Decision Letter No.
AHU-48195.AH.01.02.TH.2008, dated August 6, 2008. Then in July 2009, the board
of directors of the company has been changed. The revision of notary deed was
approved by the Ministry of Law and Human Rights in its Decision Letter No.
AHU-AH.01.10-12520, dated August 07, 2009. Later in July 2010 the board of
directors and the board of commissioners had been changed. The deed of
amendment was made by DR. A. Partomuan Pohan, SH., LLM., a public notary in
Jakarta and was approved by the Ministry of Law and Human Rights in its
decision letter No. AHU-AH.01.10-19117 Dated July 28, 2010. Then according to
the latest revision of notary deed of DR. A. Partomuan Pohan, SH., LLM., No. 31
dated 18 July 2011 the 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-AH.01.10-23948 dated July 26, 2011.
P.T IBR is a member
of the BIRLA INDONESIA Group, a large business group based in India, and in
Indonesia the Group set up several companies like P.T. SUNRISE BUMI TEXTILES,
P.T. ELEGANT TEXTILE INDUSTRY both engaged in spinning mills, P.T. INDO-BHARAT
RAYON in viscose rayon fiber and acrylic fiber industry and P.T. INDO RAYA
KIMIA in carbon disulfhide manufacturing.
P.T. IBR is a
Foreign Capital Investment (PMA) company, engaged in viscose rayon staple
fibre, acrylic fibre industry and side-product of chemicals like anhydrous
sodium suphates, carbon
bi-sulphates and sulphuric acids. Its plant is located at Desa
Cilangkap, Purwakarta, West Java, on a land of some 60.0 hectares. The plant
commenced production in 1982 and its operation has kept on expanding and its
production capacity has been increasing for a couple of times. The plant
produces some 150,000 tons of viscose rayon staple fibers, 10,720 tons of
anhydrous sodium sulphates, 25,400 tons of carbon bi-sulphates, 87,050 tons of
sulphuric acids and 12,000 tons of acrylic fibers respectively per annum.
Besides, the company also owned and manages a power plant by producing 28 MW of
power plant. The plant has absorbed a total investment of US$ 315.3 million,
coming from own capital of US$ 10.0 million, reinvested profit of US$ 36.5
million and rest from loans.
At present P.T.
IBR has production capacity of 192,000 tons of viscose staple fibre per
annum. Mostly of basic material like
pulp supplied through its subsidiary ADITYA BIRLA which operates in Canada and
South Africa. Meanwhile, carbon di-sulphide supplied by sister company P.T.
INDO RAYA KIMIA. P.T. IBR pioneered and has become the leading manufacture of
viscose rayon staple fibre in Indonesia. Employing state of the art machinery
and technology, rayon fibre production has stead increased from the initial
annual capacity of 16,500 metric tons to 89,500 metric tons per days. In
addition, it’s produce Sulphuric Acid and Carbon di-Sulphide for captive use in
the rayon fibre production process. This chemical production is vital to
safeguarding consistency in both quality and production from supply
fluctuation.
P.T. IBR Rayon
Fibre Uses:
§
Apparel
(accessories, blouses, dresses, jackets, lingeric, linings, millinery, etc)
§
Home
Furnishing (bedspreads, blankets, curtains, draperies, sheets, slipcovers,
tablecloths, upholstery)
§
Industrial
Uses (industrial products, medical surgical products, non woven products, tire
cords)
§
Other
Uses (feminine hygiene products)
The company's
products are 20% sold locally to P.T. INDO LIBERTY TEXTILE, P.T. SUNRISE BUMI
TEXTILE, and P.T. ELEGAN TEXTILE INDUSTRI. Besides, the products is also
supplied to paper industries and detergent industries and also distributed
through distributor P.T. AKR CORPINDO Tbk. Some 80% exported to India, China,
Pakistan, Srilanka, Bangladesh, Australia, South Korea, Philippine, Iran, New
Zealand, Japan, Singapore and other countries. Besides, P.T. IBR also engaged
in investment holding by controlling some 40% shares of P.T. INDO RAYA KIMIA engaged
in carbon disulphide manufacturing. We see that P.T. IBR operation has been
growing in the last five years.
The demand for
textile viscose rayon staple fiber and anhydrous sodium sulphate tended to be
fluctuating within the last five years in line with the fluctuating of
Indonesian textile industry in general. The pattern of growth in the viscose
fibre industry during the past twenty years outlined above took place against a
background of strengthening demand for almost all other fibre types. Thus, viscose
staple was out of step in the context of other mainstream fibres because whilst
production of all fibres, including wool and cotton, rose by an average annual
rate of almost 3.3 % during the final decade of the 20th century, global output
of viscose staple fibre declined at an average rate of - 1.4 % per annum.
According to the
Department of Industry, the Indonesian viscose rayon staple fiber production in
2006 amounted to 835,904 tons increased to 976,000 tons in 2007 and rose again
to 1,008,106 tons in 2008. Meanwhile production viscose rayon in 2009 dropt to
600,000 tons and higher to 640,000 tons in 2010 to 680,000 tons in 2011 and
increased to 712,00 tons in 2012. It is projected the production of viscose
rayon will be increase in 2013 due to amelioration of the economic in the
country. The capacity, production and utility of the national viscose rayon
staple fiber are picture on the following table.
|
Description |
2008 |
2009 |
2010 |
20011 |
2012 |
|
Capacity (tons) |
1,218,765 |
1,218,765 |
1,218,765 |
1,218,765 |
1,218,765 |
|
Production (tons) |
1,008,106 |
600,000 |
640,000 |
680,000 |
712,000 |
|
Utility (%) |
82.71 |
49.23 |
52.51 |
55.79 |
58.42 |
Source: Depperin, processed
Until this time P.T.
IBR has not been registered with Indonesian Stock Exchange, so that they had
not obliged to announce their financial statement. The management of P.T. IBR
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. 3,500.0 billion rose to Rp. 3,585.0 billion in 2011 increased
to Rp. 3,612.0 billion in 2012 and projected to go on rising by at least 5% in
2013. The operation in 2012 yielded an estimated net profit of at least Rp.
382.0 billion and the company has an estimated total networth of at least Rp.
495.0 billion. We observe that P.T. IBR 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. IBR is led by Mr. Sudhir Venkatesh Kulkarni (62), a professional
manager with 28 years experience in viscose rayon staple fiber and acrylic
fiber manufacturing and distribution. In daily activities he is assisted by
seven directors namely Mr. Halim Setiono (58), Mr. Ajay Kumar Gupta (47), Mr.
Vishnu Prakash Sharma (38), Mr. Chaplendu Kumar Dutta (46), Mr. Arun Khosla
(52), Mr. Ashok Saboo (58) and Mr. Subhas Kumar Sharma (45) as Directors. The
management is well experienced and handled by professional managers in the
above business. They have wide relation with home and overseas private
businessmen as well as with the government sector. 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 fraudulent dealings. We observed that management’s
reputation in said business is sufficiently fairly good. P.T. INDO-BHARAT RAYON
is sufficiently fairly good for business transaction.
Attachment:
List
of the BIRLA INDONESIA Group Members
1.
ELEGANT
TEXTILE INDUSTRY, P.T. (Spinning Mills)
2.
INDO-BHARAT
RAYON, P.T. (Viscose Rayon Staple Fiber and Acrylic Fiber Industry and
Investment Holding)
3.
INDO
LIBERTY TEXTILE, P.T. (Spinning Mills)
4.
INDO
RAYA KIMIA, P.T. (Specialty Chemical Manufacturing)
5.
SUNRISE
BUMI TEXTILE, P.T. (Spinning Mills)
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.42 |
|
|
1 |
Rs.86.54 |
|
Euro |
1 |
Rs.73.86 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.