MIRA INFORM REPORT

 

 

Report Date :

04.09.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. DHANAR MAS CONCERN

 

 

Registered Office :

Jalan Cisirung-Citepus Km. 6.8, (Jalan Mochamad Toha), Bandung, 40258, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

13.10.1960

 

 

Com. Reg. No.:

No. AHU-AH.01.10-27473

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject operates in weaving and dyeing/finishing textile

 

 

No. of Employees :

660

 

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. DHANAR MAS CONCERN

 

 

company Address

 

Head Office, Spinning and Weaving Factory

Jalan Cisirung-Citepus Km. 6.8

(Jalan Mochamad Toha)

Bandung, 40258

West Java

Indonesia

Phones             - (62-22) 520 2978 (Hunting)

Fax                   - (62-22) 520 2868

E-mail               - yarnmkt@dmctex.co.id

                          marketing@dmctex.co.id

Website            - http://www.dmctex.co.id

Land Area         - 50,000 sq. meters

Building Space  - 25,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory II (Processing Unit)

Jalan Tarajusari No. 8

Banjaran, 40337

West Java

Indonesia

Phones             - (62-22) 594 0313

Fax                   - (62-22) 594 0166

E-mail               - dmcbjr@dmctex.co.id

                          dhanar@dmctex.co.id

Land Area         - 10 hectares

Building Space  - 4.5 hectares

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

13 October 1960

 

Legal Form

 

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

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. J.A. 5/37/20

  Dated 1 June 1961

- No. AHU-60871.AH.01.02.TH.2008

  Dated 10 September 2008

- No. AHU-AH.01.10-27473

  Dated 26 July 2012

 

 

Company Status

 

National Private and Domestic Investment (PMDN) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.118.490.0-441.000

 

The Capital Investment Coordinating Board

- No. 158/I/PMDN/1978

  Dated 31 August 1978

- No. 308/III/PMDN/1986                                              

  Dated 7 August 1986                         

- No. 35/II/PMDN/1987

  Dated 23 March 1987

- No. 153/II/PMDN/1995

  Dated 12 June 1995

- No. 473/III/PMDN/1995

  Dated 18 October 1995                 

- No.503/III/PMDN/1995

  Dated 8 November 1995

- No. 81/II/PMDN/1998

  Dated 14 December 1998

 

 

Related Company

 

P.T. DHANARTAMA SWARNA (Weaving Dyeing, Printing and Finishing Textile)

 

 


CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 50,000,000,000.-

Issued Capital                                 : Rp. 38,000,000,000.-

Paid up Capital                               : Rp. 38,000,000,000.-

 

Shareholders/Owners :

a. Mr. Jemmy Kartiwa Sastraatmadja                                - Rp. 32,500,000,000.-

    Address : Jl. Mekar Asih No. 12

                    Kelurahan Serang Mekar, Kecamatan Ciparay

                    Bandung, West Java

                    Indonesia

 

 

 

b. Mrs. Dewi Christianti                                                    - Rp.   5,000,000,000.- 

    Address : Jl. Mekar Asih No. 12

                    Kelurahan Serang Mekar, Kecamatan Ciparay

                    Bandung, West Java

                    Indonesia

c. Mr. Kevin Andreas                                                        - Rp.      500,000,000.- 

    Address : Jl. Mekar Asih No. 12

                    Kelurahan Serang Mekar, Kecamatan Ciparay

                    Bandung, West Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Textile Industry

 

Production Capacity :

a.   Woven Fabrics                          - 2,400,000 meters p.a.

b.   Dyed/Finishing Fabrics              - 7,600,000 meters p.a.

c.   False Twisting (Shirting)             - 7,900,000 meters p.a.

d.   False Twisting (Yarns)                -    200,000 kg p.a.

e.   Woven Yarns                            - 25,500 bales p.a.

 

Total Investment :

a.   Equity Capital                           - Rp. 38.0 billion

b.   Loan Capital                              - Rp. 57.6 billion

c.   Total Investment                        - Rp. 95.6 billion         

 

Started Operation :

1961

 


Brand Name :

Dhanar Mas Concern

 

Technical Assistance :

None

 

Number of Employee :

660 persons

 

Marketing Area :

Export    - 50%

Local       - 50%

 

Main Customer :

Buyers in Middle East, Africa, Asia countries, Europe Union and Latin America

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ARGO PANTES Tbk

b. P.T. CANDRATEX SEJATI

c. P.T. TRISULATEX

d. P.T. PANASIA INDOSYNTEX Tbk.

e. P.T. PUJI PALAPA TEXTLE (PUJITEX)

f.  Etc

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank NEGARA INDONESIA TbK

      Jalan Asia Afrika 119

      Bandung, West Java

      Indonesia

b.   P.T. Bank PERMATA Tbk

      Jalan Merdeka No. 66

      Bandung, West Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 238.0 billion

2011 – Rp. 245.0 billion

2012 – Rp. 251.0 billion

 

Net Profit (estimated) :

2010 – Rp. 16.7 billion

2011 – Rp. 17.1 billion

2012 – Rp. 19.1 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Jemmy Kartiwa Sastraatmadja

 

Board of Commissioners :

Commissioner                                 - Mr. Entjang Sastraatmadja

 

Signatories :

Director (Mr. Jemmy Kartiwa Sastraatmadja) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. DHANAR MAS CONCERN (P.T. DMC) was established in Bandung, West Java on 13 October 1960 with authorized capital of Rp. 1,000,000 with and issued capital of Rp. 250,000 and the entirely was paid up. The founders and original shareholders of the company were Mr. Sadikin and Mr. Ali Achmad both indigenous businessmen. According to its articles of association the company’s shareholders and capitalization were revised for several times. Later its authorized capital was increased to Rp. 750,000,000 entirely was issued of which of Rp. 350,000,000 was paid up. With that time, the company’s shareholders are Mr. Entjang Sastraatmadja AKA Chang Chi Fa, his wife Mrs. Marlena Setiawan AKA Tan Sioe Moy, both of their sons Mr. Eddy Tjahjadi Sastraatmadja AKA Chang Ming and Mr. Tonny Sendjaja Sastratmadja AKA Chang Che Seng and another businessman the late Mr. Theodorus Eranus Isakh died in 1990. In May 1994 Mr. Jemmy Kartiwa Sastraatmadja joined in as new shareholder to replace the late Mr. Theodorus Eranus Isakh. Then in June 1995, its authorized capital was raised to Rp. 50,000,000,000 issued and paid up capital to Rp. 30,000,000,000. By the same time the shareholders are Mr. Entjang Sastraatmadja AKA Chang Chi Fa, Mr. Eddy Tjahjadi Sastraatmadja AKA Chang Ming and Mr. Jemmy Kartiwa Sastraatmadja. Then according to the latest revision of notary documents of Mr. handy Novianto, SH., M.Kn No. 3 dated 7 July 2012 the company issued capital was increased to Rp. 38,000,000,000 entirely paid up.

 

On the same occasion the whole shares had been controlled by Mr. Jemmy Kartiwa Sastraatmadja (85.53%), his wife Mrs. Dewi Christianti (13.16%) and his father Mr. Kevin Andreas (1.31%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-27473 dated July 26, 20112.

 

P.T. DMC has been operating since 1961 dealing with textile industry. The company initially, ran two units of plants which are located on Jalan Balekambung, Majalaya, West Java and Jalan Citepus/Moh. Toha Km. 6.8, Cisirung, Bandung, West Java.. But, the one which located in Majalaya was sold to another textile milling company in 1990. At present, P.T. DMC only operates a plant in Bandung, which stands over some 15.0 hectares land with a total building space of 70,000 square meter including plant’s building, offices, warehouse and various other facilities. The company only operates in weaving and dyeing/finishing textile. According to its license, P.T. DMC is able produce 2.4 million meters of woven fabrics (cotton, T/R and T/C), 7.6 million meters of dyed finished fabrics and 0.2 million meters of false twisting (yarns) respectively per annum. In 1994 the company set up new plant located at Jalan Taraju No. 8, Banjaran, Bandung, West Java, to produce woven fabrics, false twisting (shirting) and false twisting (yarns). In 1995 and 1998 it expanded to increase production capacity of 25,500 bales per annum.

 

Currently P.T. DHANAR MAS CONCERN covered about 15 acre of industrial area, which completed with some facilities, such as quality control department, warehouse, yarn processing, workshop, printing and dyeing department, packing department, sport facilities and water treatment. The company is focusing on achieving steady, controlled, sales growth of its products also. P.T. DMC is integrated textile company, which has own spinning, weaving, dyeing and printing department. The company could make various options of product using creativity in twisting the yarn, weaving type and dyeing finishing, that also provide fast delivery to faithful customer. Their weaving department is supported by high-tech machine, JAT 710. They can provide Dobby & Slub quality and have a lot of finishing machines such as; Calendar Machine, Heat Cut Machine, Peach Skin Machine, Teflon Coating Process, Crushed Finish, Continuous Selvedge Machine and more. As well as being a leading supplier to rapidly growing domestic markets, P.T. Dhanar Mas Concern sells and export some 50% of its product throughout Asia, Australia, Africa, Europe, Latin and South America and also in the Middle East. Meanwhile, the rest 50% are marketed domestically.

 

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. DMC has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. DMC 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. 238.0 billion rose to Rp. 245.0 billion in 2011 increased to Rp. 251.0 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. 19.1 billion and the company has an estimated total networth of at least Rp. 75.0 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. DMC is led by Mr. Jemmy Kartiwa Sastraatmadja (46) a businessman and professional manager with textile industry (weaving, dyeing, knitting, printing). 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. In view of the economic and depreciation Rupiah to foreign currency US$, we recommend to treat prudently in extending a loan to the company.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.89

UK Pound

1

Rs.103.95

Euro

1

Rs.88.09

 

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%)

 

 

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