MIRA INFORM REPORT

 

 

Report Date :

03.09.2013

 

IDENTIFICATION DETAILS

 

Name :

PD. BUANA TEXTILES

 

 

Registered Office :

Pusat Grosir Textile Mangga Dua Blok C-3 No.38, Jl. Arteri Mangga Dua, Jakarta Utara 14430

 

 

Country :

Indonesia

 

 

Year of Establishments:

1988

 

 

Com. Reg. No.:

Not Available 

 

 

Legal Form :

Sole Proprietary Concern

 

 

Line of Business :

trader, importer and distributor of textile products for women’s wear such as georgette, polyester fabrics, circular knit fabrics, nylon warp fabrics

 

 

No. of Employees :

15

 

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

 

 

 


Correct Name of Concern 

 

PD. BUANA TEXTILES

 

 

concern Address

 

Head Office

Pusat Grosir Textile Mangga Dua Blok C-3 No.38

Jl. Arteri Mangga Dua

Jakarta Utara 14430

Indonesia

Phones             - (62-21) 6015144, 6015451

Fax                   - (62-21) 6014530

Email                - buanatex@pacific.net.id

Building Area    - 2 storey

Office Space    - 110 sq. meters

Region              - Commercial

Status               - Rent

 

 

Date of Incorporation

 

1988

 

 

Legal Form

 

Sole Proprietary Concern

 

 

Concern  Reg.No.

 

Not Required

 

 

Concern  Status

 

Private National Concern

 

 


Permit by the Government Department

 

Not Available

 

 

Related Concern

 

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 - Rp. 800.0 million

 

Owner :

Mr. Kishin Hassomal Kewalramani          - 100%

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading and Importer of Textile Products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1988

 

Brand Name :

None

 

Technical Assistance :

None

 

Number of Employee :

15 persons

 

Marketing Area :

Domestic (Local)    - 100%

 

Main Customers :

Publics and Textile Dealers in Jakarta and its surroundings

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PD. Sutratex

b. UD. Sumber Jaya

c. PD. Lestari Jaya

d. PD. Mumba Arjuna Textile

e. PD. Star Textiles

f.  UD. Nusa Jaya

g. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

  a.  P.T. Bank CENTRAL ASIA Tbk

      Mangga Dua Branch

      Jl. Mangga Dua Raya Blok C-5 No.1

      Jakarta Utara

  b.  P.T. Bank MANDIRI Tbk

      Ruko Tekstil Blok C-3 No.4

       Jl. Manga Dua Raya

      Jakarta Utara

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 14.0 billion

2011 – Rp. 16.3 billion

2012 – Rp. 18.5 billion

 

Net Profit (estimated) :

2010 – Rp. 690 million

2011 – Rp. 810 million

2012 – Rp. 920 million


Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Kishin Hassomal Kewalramani

Sales Manager                                - Mr. Kenny M. Hiranandani

 

Board of Commissioner :

None

 

Signatories :

The Director (Mr. Kishin Hassomal Kewalramani) is the authorized person to sign the loan on behalf of the concern

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

PD. BUANA TEXTILES abbreviated BUANA TEX was established in Jakarta in 1988’s with a status of Sole Proprietary Concern . The founding owner of the concern  is Mr. Kishin Hassomal Kewalramani, an Indonesian businessman of Indian descent. Being as Sole Proprietary Concern , the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, the concern  has own capital of about Rp. 800 million and it will be rising in line with the progress of its business operation.

 

BUANA TEX has been in operating since 1988 in the field of trading, import and distribution of textile products for women’s wear such as georgette, polyester fabrics, circular knit fabrics, nylon warp fabrics.  Mr. Kenny M. Hiranandani, a marketing staff of the Concern  explained that the textile products are imported from India, China and also local products.  The local textile products are bought from various textile industries in Bandung, West Java.  Then, the whole textile products are sold to various textile trader and shops in Jakarta and its surroundings.  Besides that, BUANA TEX is also engaged in trading and distribution of textile products such as woman’s Moslem wears. The textile products are distributed and supplied to agents and retail shops which operating in Pasar Textile Mangga Dua, Pasar Textile Tanah Abang, Pasar Senen and others. We observe that BUANA TEX is classified a small size concern  of its kinds which operation has been growing and developing well in the last three years.

 

The demand for textile products especially woman’s menswear has kept on rising 5% to 7% per annum in the last five years. The sharp growth of the demand was in line with the progress achieved in textile and garment products locals markets. The demand growth is estimated to continually rising by 6% over the next two years. Market competition is very sharp considering many other similar companies operating in the country. Business position of BUANA TEX is favorable for it has controlled a wide marketing network at home especially in Pusat Textile Mangga Dua, one of the largest textile trade center in Jakarta.

 

BUANA TEX has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We observed that total sales turnover of the concern  in 2010 amounted to Rp. 14.0 billion increased to Rp. 16.3 billion 2011 rose again to Rp. 18.5 billion in 2012 and projected to go on rising by at least 8% in 2013. The operation in 2012 has yielded an estimated net profit at least Rp. 920 million and the concern  has an estimated total net worth at Rp. 6.0 billion. So far, we did not heard that the concern  having been black listed by the Central Bank (Bank Indonesia). The concern  usually pays its debts punctually to suppliers.

 

The management of BUANA TEX is led by Mr. Kishin Hassomal Kewalramani (70), an Indonesian businessman of Indian descent, with more than 40 years experienced in the field of trading and distribution of textile products.  He has wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the concern  being filed to the district court for detrimental cases or involved in any business malpractices. The concern ’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

PD. BUANA TEXTILES or BUANA TEX is appraised to be good for business transaction.  However, in view of the economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the concern .

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.86

UK Pound

1

Rs.102.52

Euro

1

Rs.87.06

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.