MIRA INFORM REPORT

 

 

Report Date :

07.09.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. COITTON & SILK INTERNATIONAL TEXTILE

 

 

Registered Office :

Rukan Sunter Nirwana Asri, Tahap 2, Blok A3 No. 24, Sunter Podomoro, Jakarta Utara 14350

 

 

Country :

Indonesia

 

 

Date of Incorporation :

26.04.2012

 

 

Com. Reg. No.:

No. AHU-24049.AH.01.01.Tahun 2012

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading, Import and Wholesaler of Textile Products

 

 

No. of Employees :

12 persons

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

----

NB

New Business

----

 

Status :

New Business

Payment Behaviour :

Unknown

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

 


BASIC SEARCH

 

Name of Company :

P.T. COITTON & SILK INTERNATIONAL TEXTILE

 

Address:

Head Office

Rukan Sunter Nirwana Asri, Tahap 2

Blok A3 No. 24, Sunter Podomoro

Jakarta Utara 14350

Indonesia

Phones             - (62-21) 6400748, (62-815) 19294411 

Fax                   - (62-21) 6401851

Building Area     - 4 storey

Office Space      - 120 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

26 April 2012

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-24049.AH.01.01.Tahun 2012

Dated 04 May 2012

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Capital Investment Coordinating Board

No. 979/1/PPM/I/PMA/2012

Dated 23 April 2012

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - US$. 1,200,000.- (Rp. 11,020,800,000.-)

Issued Capital    - US$.    300,000.- (Rp.   2,755,200,000.-)

Paid up Capital  - US$.    300,000.- (Rp.   2,755,200,000.-)

 

Shareholders/Owners :           

            a. Mr. Vinod Dwarkadas Bhagchandani                      - US$. 150,000.- (50%)

     Address : Citizens of India

                     Passport No. Z2015722

                     India

            b. Mr. Manohar Lal                                                      - US$. 150,000.- (50%)

     Address : Citizens of India

                     Passport No. Z2100651

                     India

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Import and Wholesaler of Textile Products

 

Production Capacity :

None

 

Total Investment :

Owned Capital   - US$. 300,000

 

Started Operation :

June 2012

 

Brand Name :

Cotton & Silk International

 

Technical Assistance :

None

 

Number of Employee :

12 persons

 

Marketing Area :

Local    - 100%

 

Main Customers:

Textile Dealers and Retails in Jakarta and its surroundings

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Bintang Agung Textile

b. PT. Dunia Laris Textile

c. PT. Ganesha Surya Cemerlang

d. PT. Multi Ragam Sejati

e. PT. Surya Pralabdha Utama

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Banker :

P.T. Bank CENTRAL ASIA Tbk

Sunter Branch

Jl. Danau Agung 2 Blok E2 No.1A

Sunter Podomoro

North Jakarta

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – US$. 5.5 million (June – December)

2013 – US$. 7.2 million (January – June)

 

Net Profit (estimated) :

2012 – US$. 0.3 million (June – December)

2013 – US$. 0.5 million (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Vinod Dwarkadas Bhagchandani

Director                                     - Mr. Manohar Lal

 

Board of Commissioners :

Commissioner                           - Mr. Refano Rian Yudistira

 

Signatories :

President Director (Mr. Vinod Dwarkadas Bhagchandani) or Director (Mr. Manohar Lal) which must be approved by Board of Commissioner (Mr. Refano Rian Yudistira)

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. COTTON & SILK INTERNATINAL TEXTILE (P.T. CSIT) was incorporated in Jakarta based on Notarial Deed of notary Iswandono Poerwodinoto, SH., No. 103 on April 26, 2012 with the authorized capital of US$ 1,200,000 (Rp 11,020,800,000) of which US$ 300,000 (Rp 2,755,200,000) was issued and fully paid up.  The founding shareholders of the company are Mr. Manohar Lal (50%) and Mr. Vinod Dwarkadas Bhagchandani (50%), both are Indian businessmen.  The Deed of establishment has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decision Letter No. AHU-24049.AH.01.01.Tahun 2012 dated May 04, 2012.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

Pursuant to the company’s notary deed, P.T. CSIT engaged to operate in wholesaler of textile products such as cotton fabrics, polyester fabrics, denim and silk.  The Company’s registered office located at Rukan Sunter Nirwana Asri, Tahap 2 Blok A3 No. 24, Sunter Podomoro, North Jakarta and the company can open branch offices or representative offices at home and abroad.  

 

P.T. CSIT has been operating since June 2012 to deal with trading, import and distribution of textile products. Mr. Rifandi, an administrative staff of P.T. CSIT explained that the merchandising goods products including are tulle, payet, cotton and polyester fabrics, denim, silk, etc. He also added the whole products are imported from India and China.  Then, the whole products are marketed locally through textile market centers in Jakarta and its surroundings. We observed that P.T. CSIT is still relatively new company in trading, import and distribution of agricultural products.

 

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.

 

The financial condition of the company is appraised to be less strong and its financial condition at present is as the paid up capital of US$. 300,000 as stated in the articles of association of the company. The financial condition of the company still depends on the financial condition of its shareholders.  The management of P.T. CSIT is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company as of June to December 2012 amounted to US$ 5.5 million increased to US$ 7.2 million as of January to June 2013. The operation as of January to June 2013 yielded an estimated net profit of at least US$ 0.5 million and the company has an estimated total net worth of at least US$. 1.2 million. 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. CSIT is led by Mr. Vinod Dwarkadas Bhargchandani (46) as president director, an Indian businessman with more than 10 years experience in trading, import and distribution of textile products.  In daily activities he is assisted by Mr. Manohar Lal (58) as director. Beside, they are also assisted by a number of expert staffs in the above business. The Company’s management has 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.

 

Since this company (PT. CSIT) just about two years in operation commercially, so we recommend caution when going to provide fresh loans to them. Or it should obtain sufficient guarantees of all shareholders.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.96

UK Pound

1

Rs.102.91

Euro

1

Rs.86.58

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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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