MIRA INFORM REPORT

 

 

Report Date :

07.08.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. SASMITA ABADI GLOVES

 

 

Registered Office :

Jalan Raya Krikilan Larangan 432 Desa Krikilan, Kecamatan Driyorejo Gresik, 61177 East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

19.01.1990

 

 

Com. Reg. No.:

AHU-AH.01.10-07368

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturer of Hand Gloves Industry, Yarns and Twisted

 

 

No of Employees :

700 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 :

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Indonesia

B1

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

D

 

 

INDONESIA ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% 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 also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

 

Source : CIA

 

 


 

BASIC SEARCH

 

Name of Company :

P.T. SASMITA ABADI GLOVES

 

Address :

Head Office & Factory

Jalan Raya Krikilan Larangan 432

Desa Krikilan, Kecamatan Driyorejo

Gresik, 61177

East Java

Indonesia

Phones             - (62-31) 7507221, 7507223

Fax                   - (62-31) 7507470

E-mail               - sagpgg@yahoo.com

Website            - http://www.sasmita-abadi-gloves.com

Land Area         - 13,000 sq. meters

Building Space  - 9,500 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Mailing Address

Jalan Raya Mastrip No. 21A

Surabaya, 60223

East Java

Indonesia

Phones             - (62-31) 767 0095, 767 0096

Fax                   - (62-31) 766 6481, 766 5183

Land Area         - 5,000 sq. meters

Office Space      - 1,000 sq. meters

Region              - Industrial Zone

Status               - Rent

 

Date of Incorporation :

a.   19 January 1990 as P.T. LEE’S GLOVES INDONESIA

b.   3 July 1991 as P.T. SASMITA ABADI GLOVES

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-5832.HT.01.01.TH.91

   Dated 17 October 1991

 

- No. AHU-94505.AH.01.02.TH.2008

   Dated 10 December 2008

- No. AHU-AH.01.10-07368

   Dated 29 February 2012

 

Company Status :

National Private and Domestic Investment (PMDN) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.497.447.1-641.000

The Capital Investment Coordinating Board

- No. 522/I/PMDN/1990

   Dated 6 June 1990

- No. 892/III/PMDN/1990

   Dated 13 November 1990

- No. 204/II/PMDN/1993

   Dated 15 November 1993

- No. 07/II/PMDN/1996

   Dated 4 January 1996

 

Related Company :

P.T. PANGESTU GUNA GLOVES (Trading and Distribution of Gloves)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 48,000,000,000.-

Issued Capital                                  : Rp. 12,000,000,000.-

Paid up Capital                                : Rp. 12,000,000,000.-

 

Shareholders/Owners :

a. Mr. Pangestu Sasmita                                                   - Rp. 7,080,000,000.-

    Address : Jl. Kupang Baru 2/12

                    Kelurahan Petemon, Kecamatan Sawahan

                    Surabaya, East Java

                    Indonesia

b. Mr. Dibyo Sasmita                                                        - Rp. 1,560,000,000.-

    Address : Jl. Kupang Baru 2/12

                    Kelurahan Petemon, Kecamatan Sawahan

                    Surabaya, East Java

                    Indonesia

c. Mr. Agus Swantara                                                       - Rp. 1,200,000,000.-

    Address : Jl. Cokroaminoto No. 47

                    Kelurahan Tegalsari, Kecamatan Tegalsari

                    Surabaya, East Java

                    Indonesia

 

 

d. Mrs. Karina Saraswati Sasmita                                      - Rp.    600,000,000.-

    Address : Jl. Kupang Baru 2/12

                    Kelurahan Petemon, Kecamatan Sawahan

                    Surabaya, East Java

                    Indonesia

 

e. Mrs. Ika Sasmita                                                           - Rp.    600,000,000.-

    Address : Jl. Margorejo Indah A-112

                    Kelurahan Margorejo, Kecamatan Wonocolo

                    Surabaya, East Java

                    Indonesia

f. Mrs. Vera Sasmita                                                          - Rp.    600,000,000.-

    Address : Jl. Walikota Mustajab No. 67-69

                    Kelurahan Ketabang, Kecamatan Genteng

                    Kota, Surabaya, East Java

                    Indonesia

g. Mrs. Lingga Puspasari Linanjaya                                  - Rp.    360,000,000.-

    Address : Jl. Babatan Pratama 10/10 Block H

                    Kelurahan Babatan, Kecamatan Wiyun

                    Surabaya, East Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Hand Gloves Industry, Yarns and Twisted

 

Production Capacity :

a.   Mix Yarn Hand Gloves                - 25,500,000 dozens p.a.

b.   Spun Yarns                               -        52,837 bales p.a.

 

Total Investment :

a.   Equity Capital                            - Rp. 12.0 billion

b.   Loan Capital                              - Rp. 13.1 billion

c.   Total Investment                         - Rp. 25.1 billion

 

Started Operation :

1990

 

Brand Name :

Sasmita Abadi Gloves

 

Technical Assistance :

None

 

Number of Employee :

700 persons

 

 

Marketing Area :

Export      - 100%

 

Main Customer :

Buyers in Japan, Asian, Australia, Middle East, Europe Union and the USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ARISTA LATINDO

b. P.T. CITRA BAKTI NUSA KARYA

c. P.T. HOLI KARYA SAKTI

d. P.T. INDOGLOES JAYA

e. P.T. JOHN GLOVE FACTORY

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Raya Darmo No. 5

      Surabaya, East Java

      Indonesia

b.   P.T. Bank UOB INDONESIA

      Jalan Panglima Sudirman No. 53

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 113.4 billion

2012 – Rp. 119.4 billion

2013 – Rp. 127.0 billion

 

Net Profit (estimated) :

2011 – Rp.   9.1 billion

2012 – Rp. 10.7 billion

2013 – Rp. 11.4 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Dibyo Sasmita

Directors                                         - a. Mrs. Lingga Puspasari Linanjaya

                                                        b. Mrs. Vera Sasmita

 

Board of Commissioners :

President Commissioner                   - Mr. Pangestu Sasmita

Commissioners                                - a. Mrs. Karina Saraswati Sasmita

                                                        b. Mr. Agus Swantara

                                                        c. Mrs. Ika Sasmita

 

Signatories :

President Director (Mr. Dibyo Sasmita) or one of the Directors (Mrs. Lingga Puspasari Linanjaya or Mrs. Vera Sasmita) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Originally the company named P.T. LEE’S GLOVES INDONESIA was established in Surabaya, East Java on 19 January 1990 with the authorized capital of Rp. 3,000,000,000 issued capital of Rp. 1,000,000,000 entirely paid up. The company was founded by Mr. Pangestu Sasmita, Mr. Ari Peris, Mr. Arie Widjaya Hoo, Mrs. Liem Khing Hiang, and Mrs. Sumarwantini, they are Indonesian businessmen of Chinese descents. The company notary deed had been changed a couple of times and on 3 July 1991 the company name was changed to P.T. SASMITA ABADI GLOVES (P.T. SAG). Later in April 2006 the company authorized capital was increased to Rp. 6,000,000,000 issued capital to Rp. 4,000,000,000 fully and paid up. On the same occasion the whole shares had been controlled by Mr. Pangestu Sasmita, Mrs. Karina Saraswati Sasmita, Mrs. Lingga Puspasari Linanjaya, Mr. Agus Swantara, Mr. Dibyo Sasmita, Mrs. Ika Sasmita and Mrs. Vera Sasmita all Indonesian businessmen of Chinese extraction. Later in November 2008 the company authorized capital was raised to Rp. 48,000,000,000 issued capital to Rp. 12,000,000,000 entirely paid up. With this development the composition of its shareholders has been changed to become Mr. Pangestu Sasmita (59%), Mr. Dibyo Sasmita (13%), Mr. Agus Swantara (10%), Mrs. Karina Saraswati Sasmita (5%), Mrs. Ika Sasmita (5%), Mrs. Vera Sasmita (5%) and Mrs. Lingga Puspasari Linanjaya (3%). The latest according to the revision of notary deed Mrs. Sitaresmi Puspadewi Subianto, SH., no. 30 dated 14 February 2012 the company board of director and the board of commissioner had been changed to lead and runs of the company’s operation. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-07368 dated February 29, 2012.

 

P.T. SAG obtained a domestic investment (PMDN) facility for dealing with manufacturing of had gloves, yarns and twist. The plant is located at Jalan Raya Krikilan Larangan 432, Krikilan village, Driyorejo district, Gresik, East Java standing on a land of 13,000 sq. meters. The plant has been operating since 1990 and had expanded frequently to increasing production capacity by produce of Mix Yarn Hand Gloves and Spun Yarns. P.T. SAG is a global leader in industrial gloves manufacturing. The company manufactures gloves in many different shapes, models and using various types of materials. Their products include gloves from 100% Pure Cotton, Polyester-Cotton mixture and include products like PVC-dotted gloves. Most of raw material like cotton thread, yarns and others obtained from locals and the rest imported from Japan. P.T. SAG is one Indonesia's first manufacturer to export industrial gloves. The company’s export destinations include countries like the United States of America, Canada, England, Germany, Sweden, Japan, Australia, Singapore, Malaysia, India, Sri Lanka and the Middle East. P.T. SAG emphasize on high product quality with competitive price and good service. We observe that P.T. SAG operation has been growing and developing well in the last three years.

 

Indonesia is the second largest producer of natural rubber (NR) in the world and has the highest acreage under rubber cultivation. Over 84% of cultivation is in smallholdings. However, low productivity levels have kept rubber cultivation vulnerable to over exploitation, when prices are high, and abandonment, when prices are low. In 2005 the average yield was 862 kg per ha per annum compared to 1,875 kg in Thailand; 1,727 kg in India; 1,483kg in Vietnam; and 1,330 kg in Malaysia. Although prima facie it appears that the main cause for low national rubber productivity is the high percentage of smallholders this is also the case for other countries with higher productivity experiences. Rubber is grown on smallholder lines in Thailand, 90% of the extent; and India, 89% of the extent and 91% of total production. What is seen in contrast is the careful management of smallholder cultivation by the State - recognizing and providing for appropriate institutional support to help smallholders.

 

Smallholder support focuses on help to obtain the right planting material; continuously educating and monitoring smallholders in correct planting, maintenance and tapping practices; and creating support for marketing activities.

 

According to Indonesian Rubber Glove Manufacture Association (IRGMA) that Indonesia is the second producer of natural rubber. IRGMA informs that the largest consuming countries in worldwide include the USA reaching 50% of the world’s demand for rubber gloves. There are still opportunities to increase the production of rubber glove products. However, the rubber glove products in the country have been facing various obstacles such as the basic materials, the increasing fuel price, gas and tight competition. The business position of P.T. SAG is favorable in line with its growing operational networks and wide product marketing coverage.

 

Until this time P.T. SAG has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. SAG is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated that total sales turnover of the company in 2011 amounted to Rp. 113.4 billion rose to Rp. 119.4 billion in 2012 increased to Rp. 127.0 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 11.4 billion and the company has an estimated total networth of at least Rp. 50.0 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. SAG is led by Mr. Dibyo Sasmita (38) a businessman and professional manager with experience in manufacture of hand gloves, yarns and twist. Daily activity he is assisted by Mrs. Lingga Puspasari Linanjaya (53) and Mrs. Vera Sasmita (39) as Directors. 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. SASMITA ABADI GLOVES is sufficiently fairly good for business transaction.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.33

UK Pound

1

Rs. 103.43

Euro

1

Rs. 81.96

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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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