MIRA INFORM REPORT

 

 

Report Date :

07.05.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. REX CANNING

 

 

Registered Office :

Jalan Raya Beji Bangil Km. 4 No. 42 Beji, Bangil Pasuruan, 67154 East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

28.08.1991

 

 

Com. Reg. No.:

No. AHU-AH.01.10-03687

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacture and Export of Canned Foods

 

 

No. of Employees :

700 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 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

 

 


 BASIC SEARCH

 

Name of Company :

P.T. REX CANNING

 

Address :

Head Office & Factory

Jalan Raya Beji Bangil Km. 4 No. 42

Beji, Bangil

Pasuruan, 67154

East Java

Indonesia

Phones             - (62-343) 656470-74

Fax                   - (62-343) 656475-76

E-mail               - rexcan@rad.net.id

Land Area         - 252,207sq. meters

Building Space  - 15,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

28 August 1991

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. AHU-22295.AH.01.02.TH.2009

            Dated 20 May 2009

-           No. AHU-AH.01.10-03687

            Dated 8 February 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.083.284.8-651.000

 

The President of the Republic of Indonesia

No. B-253/Pres/7/1991

Dated 31 July 1991

 

The Capital Investment Coordinating Board

-           No. 256/I/PMA/1991

            Dated 13 August 1991

-           No. 611/III/PMA/1998

            Dated 7 May 1998

-           No. 90/II/PMA/1998

            Dated 17 July 1998

 

Related Companies :

a.         CINTA EDAR (M) SDN, BHD., Malaysia (Investment Holding)

b.         REX CANNING CO. SDN, BHD., Malaysia (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          : US$ 3,600,000.-

Issued Capital    : US$ 1,800,000.-

Paid up Capital  : US$ 1,800,000.-

 

Shareholders/Owners :

a. REX CANNING CO. SDN, BHD                                                                       - US$ 1,620,000.-

    Address : 125, Jalan Perindustrian Bukit Minyak 5

                    14100, Simpang Empat

                    Pulau Pinang, Malaysia

b. CINTA EDAR (M) SDN, BHD                                                              - US$    180,000.-

    Address : 125, Jalan Perindustrian Bukit Minyak 5

                    14100, Simpang Empat

                    Pulau Pinang, Malaysia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Manufacture and Export of Canned Foods

 

Production Capacity :

a.         Canned Seafood                        - 5,000 tons p.a.

b.         Frozen Seafood                         - 5,000 tons p.a.

c.         Canned & Frozen Vegetables      - 4,000 tons p.a.

d.         By Products for Feed Meals        -    800 tons p.a.

e.         Cookies                                    - 3,000 tons p.a.*

 

*) has yet been produced

 

Total Investment :

a.         Equity Capital                - US$ 1.8 million

b.         Loan Capital                  - US$ 4.2 million

c.         Total Investment - US$ 6.0 million

 

Started Operation :

June 1992

 

Brand Name :

Rex Canning

 

Technical Assistance :

Rex Canning Co. Sdn, Bhd., of Malaysia

 

Number of Employee :

700 persons

 

Marketing Area :

Export               - 100%

 

Main Customer :

Buyers in Europe Union and the USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BALI MAYA MUNCAR

b. P.T. CANNING INDONESIA PRODUCTS

c. P.T. MEDAN TROPICAL CANNING

d. P.T. PROMEX INTI CORPORATION

e. P.T. SURYAJAYA ABADIPERKASA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.         P.T. Bank CIMB NIAGA Tbk

                        Jalan Raya Pasar Besar Block A/1

                        Mandaranrejo, Bugul Kidul

                        Pasuruan, East Java

                        Indonesia

b.         CITIBANK N.A.

                        Jalan Jend. Basuki Rachmat No. 86

                        Surabaya, East Java

                        Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 158.0 billion

2011 – Rp. 165.0 billion

2012 – Rp. 172.0 billion

 

Net Profit (estimated) :

2010 – Rp. 11.1 billion

2011 – Rp. 13.2 billion

2012 – Rp. 14.1 billion

           

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Lee Chai Seng

Directors                                   - a. Mr. Lee Soo An

                                                  b. Mr. Tan Yak Hock

                                                  c. Mrs. Rita Kunti Siswarini

 

Board of Commissioners :

President Commissioner - Mr. Lee Hee Hong

Commissioners                          - a. Mr. Tan Hung Meng

                                                  b. Mrs. Then Syau Khim

 

Signatories :

President Director (Mr. Lee Chai Seng) or one of the Directors (Mr. Lee Soo An, Mr. Tan Yak Hock or Mrs. Rita Kunti Siswarini) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. REX CANNING (P.T. RC) was established in Pasuruan, East Java on 28 August 1991 with the authorized capital of US$ 2,000,000 of which US$ 1,100,000 was issued and fully paid up. The founding shareholders of the company are Mr. Yulius Usman and Mr. Danny Wijaya, both are Indonesian businessmen of Chinese extraction and REX CANNING CO.SDN., BHD of Malaysia. The articles of association of the company have frequently been revised. In January 1998, the authorized capital of the company was raised to US$ 3,600,000 of which US$ 1,800,000 was issued and fully paid up and concurrently Mr. Yulius Usman and Mr. Danny Wijaya withdrew and into the company entered new shareholders REXCAN IMPORT & EXPORT PTE., LTD of Singapore and Mr. Lee Chai Seng of Malaysia. In June 2006, the shareholders of the company were REX CANNING CO.SDN.BHD (90%) and CINTA EDAR (M) SDN.BHD, (10%) both of Malaysia. Then according to the latest revision of notary documents of Mr. Mochmad Zainal Arifin, SH., No. 09 dated 5 September 2012 the company board of director and board of commissioner had been changed. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-03687 dated February 8, 2013.

 

P.T. RC obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with frozen and canned food and vegetable products by managing a plant located at Jalan Raya Beji-Bagil Km. 4, Pasuruan, East Java on a land of 252,207 square meters having been in commercial operation since 1992. The plant has frequently been expanded to increase its annual production capacity. According to its license, the plant has annual production capacity of 5,000 tons of canned seafood, 5,000 tons frozen seafood, 4,000 tons of canned/frozen vegetables and 800 tons of feed meals. The development of the plant has absorbed an investment of US$ 3.6 million entirely coming from own capital. A staff of the company said that the main business activities are dealing with seafood and vegetable canning such as shrimps, shells, snails, crabs and others. It was further explained that P.T. RC has produced no frozen vegetable and seafood products anymore and focused on canned seafood products. The products of the company are entirely exported to several European countries, the USA and Japan under brands requested by its buyers. P.T. RC is classified as a medium sized company of its kind in the country of which the operation has been running smoothly and growing.

 

In overall views we find the demand for frozen fish, fish meal, fish oil and feather meals had been rising by 5% to 6% per year in the last five years, in line with the growth of animal feed industry in the country. The Indonesian water particularly in Indonesian Economic Zone is still dominated by foreign fishing boats who catching fish illegally. The prolonged economic crisis caused the procurement of fishing boats to impede. The absent of banking support caused Indonesian businessmen to find difficulty to add their fishing boats. The Indonesian fisheries products export including shrimp, tuna and others has yet to make any progress in 2008. The protective law on export of Indonesian fisheries products imposed by developed countries including the United States and the European countries through embargo and or very strict security check (must be carried-out through Singapore) will adversely Indonesian 2005's fisheries business.

 

Beside that the steep hike of fuel prices has also made domestic fisheries industry to bottom. The export volume and value of the national fish fresh/frozen and shrimps frozen products in 2005 to 2011 are pictured on the following table.

 

Year

Fish Fresh (Frozen)

Shrimps Frozen

(Thousand Tons)

(US$ Million)

(Thousand Tons)

(US$ Million)

2005

460.7

480.5

133.2

846.9

2006

478.3

479.8

146.2

980.2

2007

390.9

578.0

134.8

920.5

2008

418.1

703.7

140.8

979.8

2009

413.7

636.1

117.2

790.9

2010

584.6

825.4

114.0

861.9

2011

595.0

647.9

119.8

756.2

 Source: Central Bureau of Statistic (BPS)

 

Until this time P.T. RC has not been registered with Indonesian Stock Exchange, so that they shall 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. 158.0 billion rose to Rp. 165.0 billion in 2011 increased to Rp. 172.0 billion in 2012 and projected to go on rising by at least 6% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 14.1 billion and the company has an estimated total networth of at least Rp. 35.0 billion. We observe that P.T. RC 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. RC is led by Mr. Lee Chai Seng (70) a professional manager of Malaysia with 22 years experience in manufacture and exporter of canned food. In his daily activities, he is assisted by Mr. Lee Soo An (45), Mr. Tan Yak Hock (50) and Mrs. Rita Kunti Siswarini (45) respective 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. P.T. REX CANNING is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.95

UK Pound

1

Rs.84.03

Euro

1

Rs.70.72

 

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.