MIRA INFORM REPORT

 

 

Report Date :

06.11.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. CINDERELLA VILA INDONESIA

 

 

Registered Office :

Jalan Tanjungsari No. 20, Tandes, Surabaya, 60187, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

29.01.1990

 

 

Com. Reg. No.:

No. AHU-384.AH.01.02.TH.2008

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Shoes Industry

 

 

No. of Employees :

1,500

 

 

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. CINDERELLA VILA INDONESIA

 

A d d r e s s :

Head Office & Factory

Jalan Tanjungsari No. 20

Tandes

Surabaya, 60187

East Java

Indonesia

Phones             - (62-31) 7492520, 7492522-24

Fax                   - (62-31) 7492528

E-mail               - chiangcc@indo.net.id

                          chiangcc@indosat.net.id

Land Area         - 23,000 sq. meters

Building Space  - 17,000 sq. meters

Region              - Industrial Zone

Status               - Rent

 

Date of Incorporation :

29 January 1990

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-19668.HT.01.04.TH.98

  Dated 13 October 1998

- No. AHU-384.AH.01.02.TH.2008

  Dated 7 July 2008

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.061.973.2-057.000

 

The President of the Republic of Indonesia

No. B-342/Pres/12/1989

Dated 26 December 1989

 

The Capital Investment Coordinating Board

- No. 3/I/PMA/1989

  Dated 6 January 1989

- No. 534/III/PMA/1990

  Dated 19 November 1990

- No. 530/III/PMA/1991

  Dated 19 August 1991

 

The Department of Industry

No. 284/T/Industri/1995

Dated 2 June 1995

 

Related Company :

P.T. VICTORY LONG AGE INDONESIA (Sport Shoes Manufacturing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 2,750,000.-

Issued Capital                                  : US$ 2,750,000.-

Paid up Capital                                : US$ 2,750,000.-

 

Shareholders/Owners :

a. CINDERELLA ENETERPISE CO. LTD.                            - US$ 1,375,000.-

    Address : 10 Lane 805

                    Erhsi Road Sec 2, Fangyuan Hsiang

                    China

b. Mr. Sumadji Widjaja                                                     - US$    688,000.-

    Address : Jl. Raya Arjuno 51, 53

                    Surabaya, East Java

                    Indonesia

c. Mr. Kong Hsien Mou                                                     - US$    687,000.-

    Address : Jl. Tanjungsari No. 24

                    Tandes, Surabaya

                    East Java, Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Shoes Industry

 

Production Capacity :

Lady’s Shoes                                  - 4,000,000 pairs p.a.

 

Total Investment :

a.   Equity Capital                            - US$ 2.7 million

b.   Loan Capital                              - US$ 6.7 million

c.   Total Investment                         - US$ 9.4 million

 

Started Operation :

1993

 

Brand Name :

WORTMANN, DEICHMANN

 

Technical Assistance :

Cinderella Enterprise Co., Ltd., China

 

Number of Employee :

1,500 persons

 

Marketing Area :

Export      - 100%

 

Main Customer :

Buyers in Europe Union

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. GRAND KUPA

b. P.T. HARDAYA ANEKA SHOES INDUSTRI

c. P.T. KMK GLOBAL SPORT

d. P.T. PANARUB INDUSTRY

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank MANDIRI Tbk

      Jalan Jend. Basuki Rachmat No. 129-137

      Surabaya, East Java

      Indonesia

b.   The Hongkong and Shanghai Banking Corp. Ltd

      Hyatt Graha Bumi Modern 1F

      Jalan Jend. Basuki Rachmat 106-128

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 147.0 billion

2011 – Rp. 152.0 billion

2012 – Rp. 161.0 billion

2013 – Rp.   84.0 billion (January – June)

 

Net Profit (estimated) :

2010 – Rp. 5.9 billion

2011 – Rp. 6.8 billion

2012 – Rp. 7.2 billion

2013 – Rp. 3.8 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Lukman Widjaja

Directors                                         - a. Mr. Chiang Chi Chien AKA Charles Chiang

                                                        b. Mr. Suwiro Widjojo

                                                        c. Mr. Kong Hsien Mou

 

Board of Commissioners :

President Commissioner                   - Mr. Suwadji Widjaja

Commissioners                                - a. Mr. Chiang Chi Hsiung

                                                        b. Mrs. Monica

                                                        c. Mrs. Tresye Pangkiey

                                                        d. Mr. Kong Ching Chu

 

Signatories :

President Director (Mr. Lukman Widjaja) or one of the Directors (Mr. Chiang Chi Chien AKA Charles Chiang, Mr. Suwro Widjojo or Mr. Kong Hsien Mou) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Good

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

The correct name of the Subject is P.T. CINDERELLA VILA INDONESIA not P.T. CINDERELLA VILA as stated in your order ref. no. 240835 dated 22 October 2013.

 

P.T. CINDERELLA VILA INDONESIA (P.T. CVI) was established in January 1990 with the authorized capital of US$ 2,000,000 of which US$ 1,500,000 was issued and fully paid up. The founding shareholders are Mr. Suwadji Widjaja, an indigenous businessman, P.T. VICTORY LONG AGE INDONESIA and CINDERELLA ENTERPRISE Co, Ltd., of Taiwan. The articles of association of the company have frequently been revised. In September 1998, the authorized capital was raised to US$ 2,750,000 entirely issued and paid up. In May 2008, P.T. VICTORY LAONG AGE INDONESIA pulled out and the whole share is controlled by CINDERELLA ENTERPRISE Co., Ltd, of Taiwan (50.00%), Mr. Suwadji Widjaja (25.02%) and Mr. Kong Hsien Mou of Taiwan (24.98%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-38483.AH.01.02.TH.2008 dated July 7, 2008.

 

P.T. CVI obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with shoe industry. Its plant is located at Jalan Tanjungsari No. 20, Tandes, Surabaya, East Java on a land of 2.3 hectares having been in operation since 1993. According to its license, the company has annual production capacity of 4,000,000 pairs of woman’s shoes. Mrs. Dila, a staff of the company, said that the woman’s shoe products being produced by the company are shoes made of leather, imitation leather and fabrics. Some 85% of the basic materials in the form of leathers and sole is local products and the rest of 15% is imported from Taiwan and other countries. The presence of PT. CVI in the segment of high-end fashion not only enrich the creativity and imagination of Indonesian fashion world, but also helped preserve and introduce Indonesia's footwear products to the international community. She went on to say that whole woman’s products are produced based on foreign buyers’ orders in European countries by using WORTMANN, DEICHMANN and other brands. P.T. CVI is classified as a medium sized company of its kind in the country of which the operation has been fluctuating in the last five years.

 

In general, we observed that before the economic crisis striking  Indonesia, the existing shoe manufacturing companies in Indonesia already encountered many problems like an over investment and low knowledge skill in the industry which caused many shoes manufacturing companies to stop operation before the economic crisis striking Indonesia. Besides that, Indonesian shoes producers also got strong competition from Vietnam, the new comer which may appear as the quite heavy competitor apart from the People's Republic of China.

 

If Indonesian shoes export value in 2005 reached US$ 1,428 million, rose to US$ 1,599 million in 2006 and rose again to US$ 1,637 million in 2007 to US$ 1,885 million in 2008, dropped to US$ 1,734 million in 2009 and increase to US$ 2,000 million in 2010. Footwear export in 2012 was encouraging about 10%. According Indonesian Footwear Association (Asprindo), shoes exports in 2011 reached US$ 3.1 billion. This figure is up 25% from last year's U.S. $ 2.5 billion. Eddy Widjanarko, ASI Chairman, explained that the increase in exports was driven ability of local manufacturers to meet demand, both producer large and small brands. However, the value of these export do not fit the previous set target of US$ 3.2 billion. Because, had some time bookings decreased approximately 10% -20% compared to the months typically. European fears of uncertain conditions make export demand was restrained. While footwear sales in the domestic market reached Rp. 24 trillion to Rp. 25 trillion. This figure is up 10% from 2010's Rp. 22 trillion. Footwear manufacturers still rely on moments of this year's New School Year and other religious holidays to boost sales.

 

It’s projected the Indonesian shoes export value will be increase in the next two years. P.T. CVI is doing quite well in the above business, because whole of its production has been exported. The national shoes production and export value, as shown on the table below:

 

National Shoes Production and Exports Value 2005-2012

 

Year

Production (Million Pairs)

Million US$

2005

820,870

1,428

2006

822,624

1,599

2007

797,945

1,637

2008

771,144

1,885

2009

759,577

1,734

2010

779,500

2,500

2011

1,013,350

3,300

2012

1,189,000

3,500

                            

 

Until this time P.T. CVI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. CVI 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. 147.0 billion rose to Rp. 152.0 billion in 2011 increased to Rp. 161.0 billion in 2012. As from January to June 2013 the sales turnover amounted at Rp. 84.0 billion with a net profit of Rp. 3.8 billion. It is projected the sales will be rising by at least 6% in 2014. We observe that P.T. CVI 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. CVI is led by Mr. Lukman Widjaja (68) a businessman and professional manager with experience in shoes industry. In his daily activity he is assisted by Mr. Kong Hsien Mou (50), Mr. Chiang Chi Chen AKA Charles Chiang (58), Mr. Suwiro Widjojo (64) 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. CINDERELLA VILA INDONESIA is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.78

UK Pound

1

Rs.98.65

Euro

1

Rs.83.41

 

 

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%)

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.