MIRA INFORM REPORT

 

 

Report Date :

24.09.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. KARYAINDAH ALAM SEJAHTERA

 

 

Registered Office :

Jl. Kalisosok Kidul No. 2, RT.004, RW.015 Krembangan Selatan, Surabaya 60175, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

23.12.1999

 

 

Com. Reg. No.:

No. AHU-65673.AH.01.02.Tahun 2012

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Edible Palm Oil Processing Industry

 

 

No. of Employees :

480 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 :

Slow but Correct

 

 

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. KARYAINDAH ALAM SEJAHTERA

 

Address :

Head Office

Jl. Kalisosok Kidul No. 2, RT.004, RW.015

Krembangan Selatan,

Surabaya 60175, East Java

Indonesia

Phones             - (62-31) 532 0120, 532 0220

Fax                   - (62-31) 525 925

Land Area         - 2,400 sq. meters

Building Space  - 1,200 sq. meters

Region              - Commercial

Status               - Owned

 

Factory

Jl. Raya Sukomulyo Km. 24

Manyar, Gresik 61151

East Java

Indonesia

Phones             - (62-31) 3930881, 3930882

Fax                   - (62-31) 3930883

Land Area         - 56,000 sq. meters

Building Space  - 28,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

23 December 1999

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-65673.AH.01.02.Tahun 2012

Dated 21 December 2012

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.913.334.7-605.000

 

Affiliated/Associated Company :

A member of the WINGS SURYA Group

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         - Rp. 161,556,000,000.-

Issued Capital               - Rp. 161,556,000,000.-

Paid up Capital             - Rp. 161,556,000,000.-

 

Shareholders/Owners :

a. P.T. GAWI MAKMUR KALIMANTAN   - Rp. 158,806,000,000.- (98.298%)

   Address : Graha Gawi, 2nd Floor

                   Jl. Setiabudi Selatan Kav. 10

                   Setiabudi, Jakarta Selatan

                   Indonesia

b. P.T. MITRAJAYA EKAPRANA           - Rp.     2,740,000,000.- (  1.696%)

   Address : Jl. Kopi No. 2, K, Roa Malaka

                   Tambura, Jakarta Barat

                   Indonesia

c. Mr. Eddy William Katuari                  - Rp.            5,000,000.- (  0.003%)        

   Address : Jl. Manyar Kertoarjo 7 No.31

                   Gubung, Surabaya

                   East Java, Indonesia

d. Mr. Hanny Sutanto               - Rp.            5,000,000.- (  0.003%)        

   Address : Jl. Simprug Garden II B F8.9

                   Kebayoran Lama

                   South Jakarta, Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Edible Palm Oil Processing Industry

 

Production Capacity :

a. Crude Palm Oil (CPO)            - 60,000 tons p.a.

b. Palm Cooking Oil (PCO)        - 30,000 tons p.a.

c. Palm Kernel Oil (PKO)            - 18,000 tons p.a.

 

Total Investment :

a. Equity Capital            - Rp. 162.0 billion

b. Loan Capital              - Rp. 298.0 billion

c. Total Investment        - Rp. 360.0 billion

 

Started Operation :

2002

 

Brand Name :

KAS (Karyaindah Alam Sejahtera)

 

Technical Assistance :

None

 

Number of Employee :

480 persons

 

Marketing Area :

a. Local                        - 40%

b. Export          - 60%

 

Main Customers :

a. Supermarkets and Hypermarkets

b. Mini-markets and Traditional Markets

c. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

            a.         PT. Smart Tbk.

            b.         PT. Wilmar Nabati Indonesia

            c.         PT. Bitung Manado Oil (Bimoli)

            d.         PT. Musim Semi Mas

            e.         PT. Indo Vegetable Oil Industry

 

Business Trend :

growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

            a.         P.T. Bank EKONOMI RAHARDJA Tbk

                        Surabaya Branch

                        Jl. Embong Malang No.. 61-65

                        Surabaya, East Java

                        Indonesia’

            b.         P.T. Bank MANDIRI Tbk

                        Plaza Mandiri

                        Jl. Basuki Rachmat No. 129-137

                        Surabaya, East Java

                        Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation case in the local commercial courts

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 360.0 billion

2011 – Rp. 405.0 billion

2012 – Rp. 460.0 billion

2013 – Rp. 280.0 billion (January – June)

 

Net Loss (estimated) :

2010 – Rp. 29.8 billion

2011 – Rp. 34.0 billion

2012 – Rp. 32.0 billion

2013 – Rp. 19.5 billion (January – June)

 

Payment Manner :

Almost promptly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                     - Mr. Eddy William Katuari

Director                                                - Mr. Alex Ivan Tanoyo

 

Board of Commissioners :

President Commissioner            - Mr. Hanny Sutanto

Commissioner                           - Mr. Finney Henry Katuari

 

Signatories :

President Director (Mr. Eddy William Katuari) or Director (Mr. Alex Ivan Tanoyo) which must be approved by Board of Commissioners (Mr. Hanny Sutanto or Mr. Finney Henry Katuari)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

 

P.T. KARYAINDAH ALAM SEJAHTERA (P.T. KAS) was established in Surabaya, East Java based on December 23, 1999 with an authorized capital of Rp. 11,000,000,000.- of which Rp. 2,750,000,000.- was issued and fully paid up.  The founding shareholders of the company are P.T. MITRAJAYA EKAPRANA, a private company (99.6%), Mr. Ir. Eddy William Katuari (0.2%) and Mr. Hanny Sutanto (0.2%), both are Indonesian businessmen of Chinese extraction.  The articles of association of the company have been revised, most recently by notarial Deed No. 86 dated October 12, 2012 of notary Dr. Irawan Soerodjo, SH., the authorized capital was raised to Rp. 161,556,000,000.- entirely was issued and fully paid up.  Since at the time, the shareholders of the company are P.T. GAWI MAKMUR KALIMANTAN (98.298%), P.T. MITRAJAYA EKAPRANA (1.696%), Mr. Eddy William Katuari (0.003%) and Mr. Hanny Sutanto (0.003%). 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-65673.AH.01.02.Tahun 2-012 dated December 21, 2012. No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. GAWI MAKMUR KALIMANTAN is a member of the WINGS Group, a large-size companies group whose majority business stakes is controlled by the Katuari family.  The WINGS Group has been in operation since end 1940 dealing with soap industry. Then, in early 1970’s the group developed its business in detergent. Soap and detergent industry are the main business of the WINGS Group including powder and cream detergent, dishwashing liquid and synthetic bar detergent, oil palm plantation and palm oil refinery, oleo chemical industry, soft drink industry, ceramic tiles industry, gypsum board manufacturing and others.

 

According to the results of our investigation we noticed that previously P.T. KAS was engaged in mosquito repellent coil and liquid mosquito manufacturing. The company operates a plant located at Jl. Raya sukomulyo Km. 24, Manyar, Gresik, East Java standing on some 5.6 hectare land and the plant has been operating since 2002.  However since 2008 the company’s activity has been shifted to engages in edible palm oil processing industry.  The company produces crude palm oil, palm cooking Oil and palm kernel oil.   Mr. Haryono, an administrative staff of the company, explained that the basic materials (fresh fruit bunches) requirement is supplied by PT. GAWI MAKMUR KALIMANTAN (GMK) is engaged in oil palm plantation.  P.T. GMK is managing and developing 7,000.00 hectares of oil palm plantation land located at Sungai Danau, Satui village, Kota Baru, Tanah Laut Regency, South Kalimantan Province.  Then,  some 40% of the products especially crude palm oil, palm cooking oil and kernel oil  are marketed locally and the rest of some 60% is exported to Bangladesh, Singapore, India, China and Europe.  We observed that P.T. KAS is classified as a medium sized company of its kind in the country of which the operation has been fluctuating in the last three years.

 

Generally, local demand for palm oil (CPO), palm kernel oil (PKO) and other estate crops products had kept on increasing by 5% to 6% per annum in the last five years.  Meanwhile, the competition is very tight on account of many similar companies operating in the country.  Pursuant to Central Bureau of Statistics (BPS), the production of large estate crops such as; dry rubber, palm oil, palm kernel, cocoa, coffee, tea cane sugar and tobacco have been fluctuating in the last five years.  The estate crops activities in Indonesia is seen from the growth production of estate crops as below.

(in 000 tons)

Year

Palm Oil

Palm Kernel

Cocoa

Dry Rubber

Coffee

Tea

Cane Sugar

Tobacco

2005

10,119.0

2,155.9

55.1

432.2

24.8

128.2

2,241.7

4.0

2006

10,961.8

2,363.1

67.2

554.6

28.9

115.4

2,307.0

4.2

2007

11,438.0

2,593.2

68.6

578.5

24.1

116.5

2,623.8

3.1

2008

12,477.8

2,829.2

62.9

594.6

28.1

112.8

2,668.4

2.6

2009

13,872.3

3,145.5

67.6

522.3

28.7

107.3

2,333.9

4.1

2010

14,290.1

3,240.1

70.9

585.4

28.7

108.9

2,278.1

4.0

2011

16,908.7

3,994.6

44.8

531.9

23.7

137.2

1,348.3

2.9

2012*

  4,390.1

1,148.5

12.2

160.8

 0.4

 20.0

      8.5

0.9

Source: Central Bureau of Statistics (BPS)   *) January to March 2012

 

Until this time P.T. KAS has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. KAS 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. 360.0 billion increased to Rp. 405.0 billion in 2011 to Rp. 460.0 billion in 2012 and projected to go on rising by at least 8% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 32.0 billion and the company has an estimated total net worth of at least Rp. 220.0 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. KAS is led by Mr. Eddy William Katuari (62) as president director, a businessman with more than 15 years experience in edible palm oil industry.  In daily activities, he is assisted by Mr. Alex Ivan Tanoyo (61) as director.  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. KAS 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 company.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.52

UK Pound

1

Rs.100.26

Euro

1

Rs.84.67

 

 

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%)

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.