MIRA INFORM REPORT

 

 

Report Date :

12.03.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. SINARAN TEKSTIL INDONESIA

 

 

Registered Office :

Jalan Raya Cipatik Soreang RT. 02 RW. 06 Desa Pataruman, Kecamatan Cihampelas Bandung, 40114 West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

21.08. 2009

 

 

Com. Reg. No.:

No. AHU-50670.AH.01.01.TH.2009

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Garment Manufacturing

 

 

No. of Employees :

65 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. SINARAN TEKSTIL INDONESIA

 

 

Address

 

Head Office & Factory

Jalan Raya Cipatik Soreang RT. 02 RW. 06

Desa Pataruman, Kecamatan Cihampelas

Bandung, 40114

West Java

Indonesia

Phone               - (62-22) 8686 2599

Fax                   - (62-22) 8686 2598

Land Area         - 3,500 sq. meters

Building Space  - 2,000 sq. meters

Region              - Industrial Zone

Status               - Rent

 

 

Registration data

 

Date of Incorporation :

21 August 2009

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-50670.AH.01.01.TH.2009

Dated 20 October 2009

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

Not Available

 

Related Company :

P.T. PANCARAN CAHAYA BARAT (Garment Manufacturing)

 

 

 

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

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

Issued Capital                                  : Rp.    250,000,000.-

Paid up Capital                                : Rp.    250,000,000.-

 

Shareholders/Owners :

a. Mr. Dede Kusnadi                                                         - Rp. 125,000,000.-

    Address : Jl. Babakan Jeruk IV No. 18, RT. 002 RW. 001

                    Kelurahan Sukagalih, Kecamatan Sukajadi

                    Bandung, West Java

                    Indonesia

b. Mr. Deden                                                                     - Rp. 125,000,000.- 

    Address : Kampung Babakan Sukanande RT. 007 RW. 002

                    Kelurahan Pageralam, Kecamatan Taraju

                    Tasikmalaya, West Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Garment Manufacturing

 

Production Capacity :

Lady’s Blouse and Men’s Shirts        - 10,000 pieces per month

 

Total Investment :

Owned Capital                                 - Rp. 1.0 billion

 

Started Operation :

October 2009

 

Brand Name :

Sinaran Tekstil Indonesia

 

Technical Assistance :

None

 

Number of Employee :

65 persons

 

Marketing Area :

Export      - 100%

 

Main Customer :

Buyers in Europe Union and the USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. C.V. BERKAT ADIJAYA PROMOSINDO

b. P.T. GOLDEN PUTRA MANDIRI

c. P.T. GRAHANUSA SENI INDAH

d. P.T. PROSPEK SEJAHTERA PRIMAJAYA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

Jalan Raya Asia Afrika No. 142-144

Bandung, West Java

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 6.2 billion

2011 – Rp. 7.4 billion

2012 – Rp. 8.5 billion

 

Net Profit (estimated) :

2010 – Rp. 476 million

2011 – Rp. 490 million

2012 – Rp. 637 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Dede Kusnadi

 

Board of Commissioners :

Commissioner                                 - Mr. Deden

 

Signatories :

Director (Mr. Dede Kusnadi) 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

 

P.T. SINARAN TEKSTIL INDONESIA (P.T. STI) was incorporated in Bandung, West Java based on notary deed of Mrs. Amalia Ratnakomala, SH., No. 06 dated 21 August 2009 with the authorized capital of Rp. 1,000,000,000 issued capital of Rp. 250,000,000 entirely paid up. The founding and shareholders of the company are Mr. Dede Kusnadi and Mr. Deden, both are Indonesian businessmen of Chinese descents. Based on our knowledge up to writing the report the notary documents of the company have not undergone any changes. The company notary deed was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-50670.AH.01.01.TH.2009 dated October 20, 2009.

 

P.T. STI is a private company started to be operating since October 2009 dealing with garment manufacturing. Its plant is located at Jalan Cipatik Soreang RT. 02 RW. 06, Pataruman Village, Cihampelas District, Bandung, West Java on a land 3,500 square meters. The plant produces 10,000 pieces of Lady’s blouses, and Men’s Shirts per month. It is estimated that the construction of the plant has absorbed an investment of Rp. 1.0 billion wholly coming from own capital. The merchandise goods products are T-shirts, jeans, Shirts, Trousers, and other men’s wear 55% cotton and 45% polyester knitted.

 

Whole products of the company are produced based on orders from the buyers such LADA JEANSWEAR INC and BAUHINIA CONNECTION INC., both of the USA by using PRIVATE brand. Mr. Dede Kusnadi, a Director and owner of the company, said that the garment products are produced based on the demand from the buyers concerning the design, fabric type, and brand which largely for export. In producing the garment products, P.T. STI’s operates 5 units of Cutting Table, 50 units of Sewing machine (with NEEDLE), 5 units of Vacuum Table and Steam Iron, 1 Unit of Fusing Machine, 1 Set of Collar and Cuff Turning. The sharp Rupiah depreciation against US$ and other hard foreign currencies has positive impact to P.T. STI’s because a large extent of the products is for export oriented so the sales in Rupiah to increase. On the other hand, the global economic crisis battering the country since October 2010 has also brought bad impact to the company on account of the increase in basic material prices and production cost. We observe that P.T. STI is a small size company of its kinds which operation has been growing slowly in the last three 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.. 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. STI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. STI 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. 6.2 billion rose to Rp. 7.4 billion in 2011 increased to Rp. 8.5 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. 637 million 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. STI is led by Mr. Dede Kusnadi (46) a businessman with experience in garment manufacturing and trading. 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. P.T. SINARAN TEKSTIL INDONESIA is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.81.08

Euro

1

Rs.70.61

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.