MIRA INFORM REPORT

 

 

Report Date :

02.09.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. LIFE STONE INDONESIA

 

 

Formerly Known As :

C.V. LIFE STONE INDONESIA

 

 

Registered Office :

Kawasan Industri Permata Gedangan,  Jalan Muncul Block AF No. 1, Kelurahan Gedang, Kecamatan Sedati, Sidoarjo, 61219, East Java

 

 

Country :

Indonesia

 

 

Year of Establishment :

1997

 

 

Com. Reg. No.:

No. AHU-54747.AH.01.01.TH.2010

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading, Import and Distribution of Granite and Marble

 

 

No. of Employees :

21

 

 

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. LIFE STONE INDONESIA

 

 

Address

 

Head Office & Warehouse

Kawasan Industri Permata Gedangan

Jalan Muncul Block AF No. 1

Kelurahan Gedang, Kecamatan Sedati

Sidoarjo, 61219

East Java

Indonesia

Phones             - (62-31) 855 2207, 855 2208

Fax                   - (62-31) 855 2202

E-mail               - marketing.lifestone@gmail.com

Website            - http://www.lifestoneindonesia.com

Land Area         - 5,000 sq. meters

Building Space  - 2,000 sq. meters

Region              - Industrial Estate

Status               - Rent

 

 

Date of Incorporation

 

a.   1997 as C.V. LIFE STONE INDONESIA

b.   1 October 2010 as P.T. LIFE STONE INDONESIA

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

No. AHU-54747.AH.01.01.TH.2010

Dated 22 November 2010

 

Company Status

 

National Private Company

 

 

Permit by the Government Department

 

The Department of Finance

Not Available

 

 

Related Company

 

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 500,000,000.-

Issued Capital                                 : Rp. 150,000,000.-

Paid up Capital                               : Rp. 150,000,000.-

 

Shareholders/Owners :

a. Mr. Ir. Johanes Dominggus Fallo                                  - Rp. 142,500,000.- 

    Address : Jl. Kutilang FF-60, RT. 40 RW. 13

                    Kelurahan Pabelan, Kecamatan Sedati

                    Sidoarjo, East Java

                    Indonesia

b. Mrs. Tri Suryanti                                                           - Rp.     6,000,000.-

    Address : Jl. Kutilang FF-60, RT. 40 RW. 13

                    Kelurahan Pabelan, Kecamatan Sedati

                    Sidoarjo, East Java

                    Indonesia

c. Miss. Ema Idamina Fallo                                              - Rp.     1,500,000.-

    Address : Jl. Kutilang FF-60, RT. 40 RW. 13

                    Kelurahan Pabelan, Kecamatan Sedati

                    Sidoarjo, East Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Import and Distribution of Granite and Marble

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1997 when it was C.V. LIFE STONE INDONESIA

 

Brand Name :

Life Stone Granite & Marble

 

Technical Assistance :

None

 

Number of Employee :

21 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Building Contractor, Trader and Retails of Building Materials

 

Market Situation :

Very Competitive

 

Main Competitors :

a. ACEH BARU KERAMIK

b. P.T. ADHINATA KARYA MARMER

c. P.T. ADIDAYA PRIMA MARMER

d. P.T. ALAM SURYA RAYA INDAH

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CENTRAL ASIA Tbk

      Jalan A. Yani No. 39 A

      Sidoarjo, East Java

      Indonesia

b.   P.T. Bank NEGARA INDONESIA Tbk

      Jalan Jenggolo No. 47-51

      Sidoarjo, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 22.9 billion

2011 – Rp. 23.5 billion

2012 – Rp. 25.0 billion

 

Net Profit (estimated) :

2010 – Rp. 1.6 billion

2011 – Rp. 1.7 billion

2012 – Rp. 1.9 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Ir. Johanis Dominggus Fallo

 

Board of Commissioners :

Commissioner                                 - Mrs. Tri Suryanti

 

Signatories :

Director (Mr. Ir. Johanis Dominggus Fallo) 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

 

 

OVERALL PERFORMANCE

 

Based on investigation the correct name of the Subject is P.T. LIFE STONE INDONESIA not LIFE STONE GRANITE & MARBLE as stated in your order ref. no. 232731 dated 14 August 2013.

 

Originally the company named C.V. LIFE STONE INDONESIA was established in Sidoarjo, East Java with the legal status C.V. (Commanditaire Vennotschap) or partnership with sleeping partner. The company was founded by Mr. Ir. Johanis Dominggus Fallo as active partner and his wife Mrs. Tri Suryanti, both are indigenous business family. Later based on notary deed of Mr. G. Mochtar Rudy, SH., No. 01 dated 1 October 2010 the company status was changed into P.T. (Perseroan Terbatas) or Limited Liability Company with the name of P.T. LIFE STONE INDONESIA (P.T. LSI) with an authorized capital of Rp. 500,000,000 issued capital of Rp. 150,000,000 fully and paid up. The company was founded by Mr. Ir. Johanis Dominggus Fallo (95%) his wife Mrs. Tri Suryanti (4%) and their sister Miss. Ema Idamina Fallo (1%). The notary deed of incorporation was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-54747.AH.01.01.TH.2010 dated November 22, 2010.

 

P.T. LSI is a national private company engaged in the field of trading and distribution of granite and marble. Initially the company has been operating since 1997 starting in the installation of natural stone. Starting with the employees of three people, and is based in a house on Rungkut Menanggal 24, Surabaya. The first project is the installation of marble floor for the Westin Hotel Surabaya. The rapid development of the business, P.T. LSI decided to invest some of its assets in the form of a warehouse measuring 10 meters by 30 meters in the industrial district of Permata Gedangan in Gedangan Sidoarjo. Later in 2007, P.T. LSI began development of the completely new warehouse and office and used it as a show house for various types of marble and granite stones. After the development of the new office and show house are finished, P.T. LSI officially occupied the new office in 2008. To support of its operation the company equipped 6 Advance German made industrial crane. Mr. Ir. Johanis Dominggus Fallo, Director of the company explained the company imported marble and granite stone in the form of slabs and block from China, India, Turkey, and Brazil. Besides, the company also used granite and marble stone from Ujung Pandang, South Sulawesi. Then the whole granite and marble stone was cutting and processed in their warehouse located at Sidoarjo, East Java standing on 5,000 sq. meters.

 

P.T. LSI produces various different types of granite and marble if combined with good design and high craftsmanship with a beautiful work of art and high quality. The types of products are Classic, Luxury, Exotic, Naturals and others. The whole products marketed locally almost cities in Indonesia through building contractor and also trader and shops of marble and granite. To further provide better service to consumers, P.T. LSI provides maintenance and treatments for the installed marble and granite stones. With good maintenance on marble and granite, will make it looks clean and always shows its beauty. Years of experiences on marble and granite makes P.T. LSI always gives an effective and optimized maintenance. We observe the operation of P.T. LSI has been growing and developing well in the last three years.

 

In general, demand for ceramic tile and other ceramic increased in the last five years. On the others side of the ceramic export market conditions even more alarming because of a decline in the last three years. With the domestic market is still huge and the limited utilization, ceramics companies in the country was no longer rely on export markets. Demand from the outside there is no movement increases. In terms of marketing, ceramic products in the domestic market has not encountered significant obstacles. In fact, local ceramic products are far superior when compared to the products of China (China), especially in terms of competitive prices. However, the growth of the ceramics industry in the country is relatively stagnant. Gas supply limitations make this industry can not grow more rapidly and take advantage of existing market optimally. Limited gas supply constraints also one new investment interest in the ceramic industry sector. The government was expected to make sure and prioritizing the needs of the gas supply to the industry in the country, rather than exporting it.

 

Thus, utilization of industrial ceramic production in the country could be maximized. Indonesian Ceramic Industry Association (Asaki) estimated production of ceramics by the end of 2012 reached 330 million square meters, up 10% over last year's realization of 300 million square meters thanks to the improving macro-economic conditions nationwide. For this year, the national ceramics production can penetrate 330 million square meters, an increase of 10% due to improved macroeconomic nationwide. This is impacting on the growing purchasing power. Improved macro-economic conditions nationwide, according to Elisa (Asaki) makes the construction of both residential property and office continues to grow, contribute to a ceramics manufacturer in the country to increase production capacity. The increase in production capacity of ceramic is also supported by the additional supply of gas because the gas supply increasingly filled the ceramic industry can produce optimal.

 

Production Capacity and Export Value of National Ceramic Industry, 2008 – 2012

 

Year

Production

(Million Sq. Meters)

Export (Thousand US$)

2008

264.0

33,614.4

2009

281.9

29,087.0

2010

327.0

22,824.3

2011

300.0

17,204.2

2012

330.0

18,924.6

Source: Department of Industry and Trade (Processed by ICB)

 

Until this time P.T. LSI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. LSI 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. 22.9 billion rose to Rp. 23.5 billion in 2011 increased to Rp. 25.0 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. 1.9 billion and the company has an estimated total networth of at least Rp. 4.0 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. LSI is led by Mr. Ir. Johanis Dominggus Fallo (46) a businessman with experience in trading, import and distribution of granite and marble. 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. LIFE STONE INDONESIA is sufficiently fairly good for business transaction.

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.57

UK Pound

1

Rs.103.34

Euro

1

Rs.88.16

 

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%)

 

 

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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.