MIRA INFORM REPORT

 

 

Report Date :

15.10.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. KERAMIKA INDONESIA ASSOSIASI TBK

 

 

Registered Office :

Graha Atrium, 5th Floor, Jl. Senen Raya No. 135, Jakarta 10410

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.12.2012 (Consolidated)

 

 

Date of Incorporation :

28.11.1968

 

 

Com. Reg. No.:

No. AHU-AH.01.10-19088

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

Ceramic Floor, Wall and Roofing Tiles Industry

 

 

No. of Employees :

1,504 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 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

 

 

 

 

 

 

 

Name of Company

 

P.T. KERAMIKA INDONESIA ASSOSIASI TBK

 

 

Address

 

Head Office

Graha Atrium, 5th Floor

Jl. Senen Raya No. 135

Jakarta 10410

Indonesia

Phones             - (62-21) 386 2322 (hunting)

Fax.                  - (62-21) 386 2253

Email                - mkt@kiaceramics.com

Website            - www.kiaceramics.com

Building Area     - 18 storey

Office Space      - 240 sq. meters

Region              - Commercial

Status               - Rent

 

Factories

  a.  Jl. Raya Narogong Km. 51,9

      Limusnunggal, Cileungsi,

      Bogor, West Java

      Indonesia

      Phones             - (62-21) 8230023 (hunting)

      Fax.                  - (62-21) 8230013

  b.  Kota Industri Surya Cipta

      Jl. Surya Lestari Kav. 1 & 2

      Kel. Ciampel, Karawang Timur 41363

      Bekasi, West Java

      Indonesia

      Phones             - (62-267) 440 401 (hunting)

      Fax.                  - (62-267) 440 411

  c.  Jl. Raya Karang Andong

      Pasinan, Lemah Putih

      Wringin Anom, Gresik 61176

      East Java

      Indonesia

      Phones             - (62-31) 791 2630 (hunting)

      Fax.                  - (62-31) 791 2638

 

 

 

Date of Incorporation

 

28 November 1968

 

 

Legal Form

 

P.T. Tbk. (Perseroan Terbatas Terbuka) or Public Listed Company

 

 

Company Reg.  No.

 

The Ministry of Law and Human Rights

a. No. J.A. 5/22/5

    Dated 5 March 1969

b. No. AHU-32720.AH.01.02.Tahun 2008

    Dated 12 June 2008

c. No. AHU-58268.AH.01.02.Tahun 2011

    Dated 28 November 2011

d. No. AHU-AH.01.10-19088

    Dated 29 May 2012

 

 

Company Status

 

Foreign Investment Company

 

 

Permit by the Government Department

 

a. The Department of Finance

    NPWP No. 01.001.688.9-054.000

 

b. The President of the Republic of Indonesia

    No. 126/Pres/11/1968

    Dated 9 November 1968

 

c. The Minister of Industry

    No. 353/M/XI/68

    Dated 21 November 1968

 

d. The Capital Investment Coordinating Board

    No. 25/V/1992

    Dated 15 June 1992

 

e. The Capital Market Supervisory Agency

    - No. S-1816/PM/1994

      Dated 4 November 1994

    - No. S-1345/PM/1997

      Dated 18 June 1997

    - No. Peng-07/BEJ-PSR/DEL/08/2004 (the company’s shares have delisted from JSE)

      Dated 23 August 2004

    - No. Peng-005/BEI.PSR/UPT/10-2008 (the shares were listed again )

      Dated 15 October 2008

 

 

Holding Company

 

SCG BUILDING MATERIALS Co. Ltd., of Thailand (Investment Holding)

 

 

Subsidiary Companies

 

a. P.T. KIA KERAMIK MAS (Ceramic Roofing Tile Industry)

b. P.T. KIA SERPIH MAS (Ceramic Floor Tile Industry)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp. 1,822,800,000,000.-

Issued Capital                - Rp. 1,612,180,500,000.-

Paid up Capital              - Rp. 1,612,180,500,000.-

 

Shareholders/Owners :

a. SCG Building Materials Company Ltd.,        - Rp. 1,509,733,129,065.- (96.31%)

b. PT. Mitra Investindo Multicorpora                - Rp.     60,509,442,000.- (   1.93%)

c. Publics                                                         - Rp.     41,494,120,500.- (   1.76%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Ceramic Floor, Wall and Roofing Tiles Industry

 

Production Capacity :

a. Ceramic Floor and Wall Tiles   - 30.0 million sq. meters p.a.

b. Ceramic Roofing Tile               - 30.0 million pieces p.a.

 

Total Investment :

a. Equity Capital            - Rp. 1,975.3 billion

b. Loan Capital  - Rp.     -                0 billion

c. Total Investment         - Rp. 1,975.3 billion

 

Started Operation :

1 9 6 8

 

Brand Name :

KIA and IMPRESSO

 

Technical Assistance :

None

 

Number of Employee :

1,504 persons

 

Marketing Area :

Domestic          - 40%

Export               - 60%

 

Main Customers :

a. Building Materials Supermarkets, Dealers and Agents in Indonesia

b. Property Contracting Companies in Indonesia

c. Overseas buyer in Asia, Europe and the United States of America

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Muliakeramik Indahraya Tbk

b. PT. Roman Ceramik International

c. PT. Keramindo Megah Pertiwi

d. PT. Haeng Nam Sejahtera Indonesia

e. PT. Satyaraya Keramik Indah

f.  PT. Platinum Ceramics Industri

g. PT. Angsa Daya

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank CIMB NIAGA Tbk

    Gedung Jakarta Lloyd Ltd.

    Jl. Senen Raya No. 44

    Jakarta Pusat

b. P.T. Bank CENTRAL ASIA Tbk

    Cikini Branch

    Jl. Cikini Raya 60 T-U

    Jakarta Pusat

c. P.T. Bank UOB INDONESIA Tbk.

    Thamrin Branch

    Jl. M.H. Thamrin Kav.8-9

    Jakarta Pusat

 

Auditor :

Jamaludin, Ardi, Sukimto & Rekan (Public Accountants)

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Net Sales/Income :

2009 – Rp. 359.9 billion

2010 – Rp. 582.3 billion

2011 – Rp. 650.5 billion

2012 – Rp. 780.2 billion

 

Net Profit (loss) :

2009 –  Rp. 27.3 billion

2010 –  Rp. 14.6 billion

2011 – (Rp. 20.2 billion)

2012 –  Rp. 71.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Cherdsak Niyomsilpa

Directors                                   - a. Mr. Chalermchai Chirasakyakul

                                                  b. Mr. Kaewsawan Amatachiwin

                                                  c. Mr. Handono Warih

 

Board of Commissioner :

President Commissioner             - Mr. Pichit Maipoom

Commissioners                          - a. Mr. Kajohndet Sangsuban

                                                  b. Mr. Aree Chavalitcheewingul

                                                  c. Mr. Surasak Kraiwitchaicharoen

                                                  d. Mr. Padung Likitsajjakul

                                                  e. Mr. Thanarak Silavanich

 

Signatories :

President Director (Mr. Cherdsak Niyomsilpa) or  one of the Directors (Mr. Chalermchai Chirasakyakul, Mr. Kaewsawan Amatachiwin or Mr. Handono Warih) which must be approved by  Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit  :    

Moderate amount

 

 

OVERALL PERFOMANCE

 

      Originally the company was named P.T. KERAMIKA INDONESIA ASSOSIASI, the company was established based on notarial deed No.78 dated 28 November 1968 of Juliaan Nimrod Siregar, SH., with an authorized capital of Nfl. 10,000,000.- of which Nfl. 5,600,000.- was issued and fully paid up.  The founding shareholders of the company are Mr. Oei Jogn Tjioe, Mr. Eugene Trismitro, Mr. Kaharudin Ongko, Mr. Maulana Ghozali, Mr. Diah Koswara, Mr. Charles Salim (they are Indonesian businessmen of Chinese extraction) and INTERBETON N.V., a private company.   Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia based on the Decree No. J.A.5/22/5 dated 5 March 1969.  The articles of association have been amended several times.  On November 4, 1994, the Company conducted initial public offering of 25 million shares to the public through Jakarta and Surabaya Stock Exchange.  Subsequently the name of the company became P.T. KERAMIKA INDONESIA ASSOSIASI Tbk. (PT. KIA).  Concurrently the authorized capital was raised to Rp. 547,500,000,000.- of which Rp. 428,009,490,000.- was issued and fully paid up.

 

      Most recently by notarial deed of Sri Hidianingsih Adi Sugijanto, SH., No. 28 dated September 20, 2011 the authorized capital of the company is Rp. 1,822,800,000,000.- of which Rp. 1,612,180,500,000.- was issued and fully paid up.  Since the time, the shareholders of the company are SCG Building Materials Company Ltd., of Thailand (96.31%), PT. Mitra Investindo Multicorpora of Indonesia (1.93%) and Publics (1.76%).  The amendment to Article of Association has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-58268.AH.01.02.Th.2011 dated 28 November 2011 and No. AHU-AH.01.10-19088 dated 29 May 2012. No changes have been effected in term of its shareholding composition and capital structures to date.

 

      P.T. KIA has been in operation since 1968 dealing with ceramic floor, wall and roofing tile industry.  The Company and its subsidiaries managing three plant located at Jl. Raya Narogong Km. 51,9, Cileungsi, Bogor, West Java; Kawasan Industry Surya Cipta, Jl. Surya Lestari Kav. 1&2, Karawang Timur, Bekasi, West Java and Jl. Raya Karang Andong, Wringin Anom, Gresik, East Java. The plants are equipped with state of art machinery capable of delivering 30.0 million square meters of ceramic floor and wall tiles, and 30.0 million ceramic roofing tiles per annum.   Mr. Rusdianto, a production staff of the company, said that production of floor tile and wall tile in 2012 reached 21.73 million square meters, increased by 2.2 million square meters from 2011 while the production of roof tile was 22.80 million pieces, decreased by 0.17 million pieces compared to 2011. Some 60% of the floor tiles being produced by the company are exported to Italy, China, the USA, Japan and others and the rest are locally marketed using KIA and IMPRESSO brand.  Besides, the products are also distributed by other distributors and building material supermarkets, dealers, agents and shops in the country. Besides, P.T. KIA is also active in investment holding by controlling 86.68% shares of P.T. KIA SERPIH MAS (ceramic roofing tile industry) and 99.21% shares of P.T. KIA KERAMIK MAS (ceramic floor tile industry). P.T. KIA is classified as a large sized company of its kind of which the operation has been growing in the last three years.

 

      Generally, the demand for ceramic floor and wall tiles, marble tiles and granite tiles in the country had significantly rising by 8% to 10% per year in the last five years, in line with the growth of office building, hotels, apartment, real estate, housing and other properties.  But, as from October 2008, the demand growth for ceramic tiles, marble tiles and granite tiles has kept on dwindling as an impact of global economic crisis as told above that making many property projects were discontinued and lower public purchasing power.

 

      The demand was increasing in the early 2009 due to economic condition was gradually recovery in the country. The growth rate is now estimated at 5% to 7% per year.  Market competition is very tight due to a large number of similar companies operating in the country such as PT. Muliakeramik Indahraya Tbk., PT. Roman Ceramik International, PT. Keramindo Megah Pertiwi, PT. Haeng Nam Sejahtera Indonesia, PT. Satyaraya Keraik Indah, PT. Platinum Ceramics Industry, PT. Angsa Daya and others.  Business position of P.T. KIA is favorable for it has controlled a wide marketing network at home and abroad and their product has been widely known among consumers in the country.

 

      According to consolidated statement of financial position, the net sales of P.T. KIA in 2010 amounted to Rp 582.3 billion with a net profit of Rp 14.6 billion increased to Rp 650.5 billion with a net loss of Rp 20.2 billion in 2011 and rose again to Rp 780.2 billion with a net profit of Rp 71.0 billion in 2012. The increasing of net income was also a result of decreasing of interest expense of around Rp 40 billion and the decrease in loss of foreign exchange by Rp 30 billion compared to 2011 which was attributable to the Company’s successful settlement on bank loan in March 2012. The company’s consolidated statement of financial position in 2009, 2010, 2011 and 2012 are attached.  So far we did not hear that the P.T. KIA has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.  The company usually pays its debts punctually to suppliers.  

 

      The management of P.T. KIA is led by Mr. Cherdsak Niyomsilpa (52) a Thailand businessman and professional manager with 12 years of experience in the ceramic tile manufacturing and trading.  Daily operation, he is assisted by three directors namely Mr. Chalermchai Chirasakyakul (65), Mr. Kaewsawan Amatachiwin (46), both from Thailand and Mr. Handono Warih (51) of Indonesia. The management is quite creative and dynamic, having maintained a wide business relation with private businessmen at home and abroad and with the government sectors as well. We observed that management’s reputation in said business is fairly good. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

      P.T. KIA is sufficiently fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

 

 

 

 

 

PT. KERAMIKA INDONESIA ASOSIASI Tbk

CONSOLIDATED STATEMETNS OF FINANCIAL POSITION

As of 31 December 2009, 2010, 2011 and 2012

 

                                                                           (in million Rupiah)

DESCRIPTION

31 December

2012

2011

2010

2009

A.   ASSETS

 

 

 

 

      a.    Current Assets

 

 

 

 

             - Cash and cash equivalent

154,614.0

70,564.5

3,226.8

12,802.7

             - Trade receivables - net

267,022.2

268,123.4

304,748.3

339,292.2

             - Other receivables

1,113.8

9,608.6

251.4

529.2

             - Inventories

187,927.3

162,784.0

141,483.5

129,945.2

             - Advances

9,133.7

13,867.1

2,017.2

2,909.9

             - Prepaid expenses

9,402.4

15,836.3

18,151.0

17,358.4

             - Prepaid taxes

7,080.8

29,545.4

30,669.7

9,064.1

             Total Current Assets

636,294.1

570,329.4

500,547.9

511,901.8

      b.    Non Current Assets

 

 

 

 

             - Fixed Assets - net

1,328,355.1

1,299,658.8

762,797.7

783,274.7

             - Assets not used in operations

177,396.2

177,396.2

198.1

--

             - Security deposits

1,445.5

1,456.5

1,211.3

23,567.1

             - Other non-current assets

324.0

792.1

1,367.2

1,763.2

             Total Non Current Assets

1,507,520.8

1,479,303.5

765,574.4

808,614.0

                                      TOTAL LIABILITIES 

TOTAL ASSETS =     & STOCKHOLDERS’

                                      EQUITY

2,143,814.9

2,049,632.9

1,266,122.3

1,320,515.8

B.   LIABILITIES & STOCKHOLDERS’ EQUITY 

 

 

 

 

      a.    Current Liabilities 

 

 

 

 

             - Bank loans

--

784,382.0

163,104.5

--

             - Trade payables

68,595.6

78,651.5

112,730.8

125,577.5

             - Taxes payables

6,908.1

3,048.5

1,584.4

7,649.2

             - Accrued expenses

33,067.0

16,892.5

25,273.4

31,395.7

             - Current portion of long-term debts

 

 

 

 

               * Financial lease

--

13.6

566.7

29,557.7

               * Bank loans

--

--

25,208.3

--

             Total Current Liabilities 

108,570.7

882,988.1

328,468.1

393,930.2

      b.    Non Current Liabilities 

 

 

 

 

             - Long-term debt, net of current portion

 

 

 

 

               * Finance lease

--

--

460.6

186,801.2

               * Bank loans

--

--

181,958.3

--

             - Senior amortizing loan

--

--

62,410.6

88,769.0

             - Convertible bonds

--

--

247,000.0

247,000.0

             - Employee benefits liabilities

49,531.3

41,009.7

35,147.5

28,763.1

             - Deferred tax liabilities

10,389.6

17,651.1

19,168.6

121,608.4

             - Guarantee deposits

--

38,000.0

38,000.0

38,000.0

             Total Non Current Liabilities 

59,920.9

96,660.8

584,145.7

710,941.7

      c.    Equity  

 

 

 

 

             - Issued and Paid Up Capital 

1,612,180.5

929,250.0

2,212,500.0

2,212,500.0

             - Additional paid-in Capital

155,323.1

8,283.1

43,750.0

43,750.0

- Additional paid-in capital in excess

4,329.3

--

--

--

             - Balance arising from transactions

41,684.7

41,684.7

41,684.7

--

             - Retained earning

 

 

 

 

               * Appropriated

--

--

25.0

25.0

               * Un-appropriated

88,565.7

19,403.5

(2,016,392.1)

(2,106,785.3)

             - Non controlling interests

73,240.0

71,362.7

35,193.7

--

            Total Equity

1,975,323.2

1,069,984.0

316,761.2

149,489.7

 

 

 

 

 

C.  INCOME STATEMENTS  

 

 

 

 

      a.    Sales – net 

780,233.6

650,547.0

582,295.7

359,943.6

      b.    Cost of Goods Sold 

(650,673.3)

(543,673.6)

(477,418.5)

(288,392.5)

      c.    Gross Profit

129,560.2

106,873.4

104,877.2

71,551.1

      d.    Total Operating Expenses

(52,058.8)

(28,065.7)

(36,232.5)

(36,031.4)

      e.    Operating Profit

77,501.4

78,807.5

68,644.7

35,519.7

      f.    Other Income (Expenses)

(8,176.0)

(47,642.4)

(61,361.8)

(6,115.7)

      g.    Profit before finance costs and income tax

69,325.4

31,165.1

7,282.9

29,404.0

      h.    Finance costs 

(5,547.4)

(52,922.9)

--

--

      i.     Profit before income tax expense

63,778.0

(21,757.8)

7,282.9

29,404.0

      h.    Estimated tax benefit (expense)

7,261.4

1,517.5

8,621.8

(1,361.8)

      i.     Profit (loss) before minority interest

71,039.4

(20,240.2)

15,904.7

28,042.2

      j.     Minority interest

--

--

(1,332.1)

(713.9)

      k.    Net Profit

71,039.4

(20,240.2)

14,572.5

27,328.2

Note: 31 December 2009, 2010, 2011 and 2012 audited by Jamaludin, Ardi, Sukimto & Rekan

 

* * *

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.30

UK Pound

1

Rs.97.98

Euro

1

Rs.83.14

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.