MIRA INFORM REPORT

 

 

Report Date :

09.10.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. BIPORIN AGUNG

 

 

Registered Office :

Jalan Pusat No. 88 Desa Cikupa Rt. 003/01 Tangerang, 15710  Banten Province

 

 

Country :

Indonesia

 

 

Date of Incorporation :

05.08.1981

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in organic pigment & dyestuff and textile chemical industry 

 

 

No. of Employees :

200

 

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


 

Company and address

 

P.T. BIPORIN AGUNG

 

Head Office & Factory

Jalan Pusat No. 88 Desa Cikupa Rt. 003/01 Tangerang, 15710  Banten Province Indonesia

Phone               - (62-21) 5960915, 5960916

Fax                   - (62-21) 5960925

E-mail               - bipo@centrin.net.id

                          biporin@biporin.com

                          biofactory@cbn.net.id

Website            - http://www.biporin.com

Land Area         - 15,000 sq. meters

Building Space  - 4,600 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Representative Office

The City Tower (TCT) 29th Floor unit 29-01 Jalan M.H. Thamrin No. 81 Jakarta Pusat, 10310 Indonesia

Phone               - (62-21) 3199 6222 (Hunting)

Fax                   - (62-21) 3199 6288, 3199 6289

Building Area    - 30 storey

Building Space  - 100 sq. meters

Region              - Commercial

Status               - Rent

 

 

Date of Incorporation :

 

5 August 1981

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C.UM.02.01.12553

  Dated 12 October 2004

- No. AHU-48171.AH.01.02.TH.2008

  Dated 6 August 2008

 

Company Status :

National Private and Domestic Investment (PMDN) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.216.727.6.415.000

 

The Department of Industry & Trade

TDP No. 10031300223

Dated 6 October 1998

 

The Capital Investment Coordinating Board

- No. 203/I/PMDN/1983

  Dated 19 November 1983

- No. 348/VI/PMDN/1984

  Dated 29 December 1984

- No. 251/II/PMDN/1995

  Dated 29 September 1995

 

The Department of Industry

No. 63/T/INDUSTRI/1990

Dated 26 February 1990

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         : Rp. 4,000,000,000.-

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

Paid up Capital : Rp. 1,000,000,000.-

 

Shareholders/Owners :

a. Mr. Anwar Afandi                                          - Rp. 950,000,000.-

    Address : Kp. Cikupa No. 88 Rt.03 Rw. 01

                    Kelurahan Cikupa, Kecamatan Cikupa

                    Tangerang, Banten Province

                    Indonesia

b. Mr. Aman Afandi                                          - Rp.   20,000,000.-

    Address : Kp. Cikupa No. 88 Rt.03 Rw. 01

                    Kelurahan Cikupa, Kecamatan Cikupa

                    Tangerang, Banten Province

                    Indonesia

c. Mrs. Erliani Iskandar                                                - Rp.   30,000,000.-

    Address : Jl. Ir. Haji Juanda III No. 34-A

                    Jakarta Pusat

                    Indonesia 

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Organic Pigment & Dyestuff and Textile Chemical Industry 

 

Production Capacity :

a.         Reactive Dyestuff                     - 2,300 tons p.a.

b.         Disperse Dyestuff                     - 3,600 tons p.a.

c.         Optical Brightening Agent          -    300 tons p.a.

 

Total Investment :

a.         Equity Capital   - Rp.   1.0 billion

b.         Loan Capital      - Rp. 16.5 billion

c.         Total Investment  - Rp. 17.5 billion

 

Started Operation :

1987

 

Brand Name :

Bipoactive

 

Technical Assistance :

None

 

Number of Employee :

200 persons

 

Marketing Area :

Export              - 50%

Local                - 50%

 

Main Customer :

Buyers in Asian and Europe Union, and Domestic Textile Industry

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. CLARIANT INDONESIA

b. P.T. COLORINDO ANEKA CHEMICALS

c. P.T. DYSTAR COLOURS INDONESIA

d. P.T. MATSUMOTOYUSHI INDONESIA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank CENTRAL ASIA Tbk

    Jalan Haji Samanhudi No. 8

    Jakarta Pusat

    Indonesia

b. The Bangkok Bank Ltd.

    Jalan M.H. Thamrin No. 3

    Jakarta Pusat

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

The Subject has recorded appeal cassation of Supreme Court No. 285 K/TUN/2002. The Subject appeal cassation in the process of examination up to present. Type of cases: State Administration. 

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 39.0 billion

2011 – Rp. 41.0 billion

2012 – Rp. 44.0 billion

 

Net Profit (estimated) :

2010 – Rp. 2.7 billion

2011 – Rp. 2.9 billion

2012 – Rp. 3.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                        - Mr. Anwar Afandi

 

Board of Commissioners :

Commissioner               - Mrs. Erliani Iskandar

 

Signatories :

Director (Mr. Anwar Afandi) which must be approved by Supervisory Board

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Good

 

Credit Risk :

Below Average

 

Credit Recommendation :

Credit should be extended under guarantee

 

 

OVERALL PERFORMANCE

 

P.T. BIPORIN AGUNG (P.T. BA) was incorporated in August 1981 with an authorized capital of Rp. 50,000,000 issued capital of Rp. 15,000,000 wholly paid-up. Founders and original shareholders are Mr. Anwar Afandi, Mrs. Ratna Dewi Afandi and Mr. Ir. Aman Afandi wholly Indonesian of Chinese extraction. The company notary deed has been revised for several times. In 1987, the authorized capital was increased to Rp. 1,000,000,000 entirely issued and paid-up. In September 1997, Mrs. Ratna Dewi Afandi pulled out and replaced by Mrs. Erliani Iskandar, an Indonesia businesswomen of Chinese extraction. The latest in July 2008 the authorized capital was increased to Rp. 4,000,000,000 issued capital RP. 1,000,000,000 entirely paid up. The deed of amendment was made by Mrs. Harjanti Tono, SH, a public notary in Tangerang by the Ministry of Law and Human Right in its Decision Letter No. C-UM.02.01.12553, dated October 12, 2004 and the latest with in its Decision No. AHU-48171.AH.01.02.TH.2008 dated August 6, 2008.

 

P.T. BA acquired a Domestic Investment (PMDN) facility licensed by Capital Investment Coordinating Board (BKPM) for dealing with organic pigment & dyestuff and textile chemical manufacturing whose plant is located in Desa Cikupa Rt. 003/01, Tangerang, Banten Province standing on 1.5 hectares land. The plant started with operation in 1987 and has been expansion in 1995 to increasing production capacity. The plant produces 2,300 tons of reactive dyestuff, 3,600 tons of disperse dyestuff and 300 tons of optical brightening agents per annum with and investment of Rp. 17.5 billion come from owned capital of Rp. 1.0 billion and the rest is loans. Management of the company disclosed that since 2007 it has been able to produce around 50% of its installed production capacity. However since 2008 until 2010 has almost nearly 90% of size of output. Some of 50% of products are exported to several Asian countries while the rest 50% are marketed locally to various textile industries and textile products manufacturing companies. P.T. BA focuses is on production of Reactive (Bipoactive) dyestuffs especially vinyl-sulfone and bi-functional types. Raw materials and intermediates are sourced after pre-approval from dependable and stable suppliers.

 

P.T. BA's main focus is Reactive dyes with specialization in vinyl-sulfone and bi-functional Reactive dyes. In both categories we make the regular CI (Color index) commodities as well as specialized colors. All are marketed under the Bipoactive brand name. In general Vinyl-sulfone dyes are suited to exhaust dyeing, continuous (Pad-steam), semi-continuous methods (Silicate pad batch) and printing methods. Bipoactive ‘DE’ dyes are bi-functional dyes which are usually preferred for exhaust dyeing due to their better affinity and fixation properties. Bi-functional dyes can also be more conveniently grouped in special trichromatically compatible groups depending on the desired properties like light fastness, perspiration-light fastness, high exhaustion/fixation, deep-very deep shades etc.

 

Almost all dyestuffs are standardized in liquid form and then spray dried as low dusting semi-granular type and directly packed using latest PLC controlled weighing systems. All spray dryers have the latest PLC systems to control all sensitive parameters like temperature, vacuum, feed-line pressure etc. to ensure most uniform product. Samples are regularly taken from spray dryers and checked for various parameters around the clock, seven days a week. The global economic slowdown since October 2008 has brought negative impact to the company on account of the increasing production cost and basic material prices. Meanwhile, the local TPT (Textile and Textile Products) industries and other factors causing the declining competitive ability of the national TPT products are the increasing production costs, high interest rates, expensive customs office costs, illegal retributions, textile and garment machinery restructuring costs and the rising prices of production components (oil fuel prices and electric base tariffs). We observe the operation of P.T. BA has been growing slowly in the last three years.

 

Generally, the demand for textile chemicals such as dyestuff, textile auxiliaries, and others tended to be fluctuating within the last five years in line with the fluctuating of Indonesian textile industry in general. There are eleven domestic dyestuff producers which are still active with a combined production capacity of 45,620 tons per annum. Some of the largest producers are P.T. DYSTAR COLOURS INDONESIA, P.T. CLARIANT INDONESIA and P.T. COLORINDO ANEKA CHEMICAL. The country’s garment industry is facing serious marketing problem not only in the country but also abroad.

 

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 decline to 450,200 tons (US$ (7,304.8 million) in 2012.

 

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 increase to 1,508.5 tons (US$ 5,278.1 million) in 2012.

 

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 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

350.2

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

7,304.8

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

1,508.5

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

5,278.1

 

Source: Central Bureau of Statistic     

 

Until this time P.T. BA has not been registered with Indonesian Stock Exchange, so that they had 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. 39.0 billion rose to Rp. 41.0 billion in 2011 increased to Rp. 44.0 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. 3.2 billion and the company has an estimated total networth of at least Rp. 8.0 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 company is led out by Mr. Anwar Afandi (61), a businessman who experienced for more than 26 years in the field of organic pigment & dyestuff and textile chemical manufacturing. We observed that management’s reputation in said business is fairly good. The management of the company is handled by experienced professional manager having wide relation with private businessmen of home and overseas as well as with the government sectors. 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. BIPORIN AGUNG is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.69

UK Pound

1

Rs.99.20

Euro

1

Rs.83.69

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.