MIRA INFORM REPORT

 

 

Report Date :

06.12.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. INDO LIBERTY TEXTILES

 

 

Registered Office :

Jl. K.H. Mas Mansyur Kav. 126, Jakarta 10220

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

10.11.1994

 

 

Com. Reg. No.:

AHU-AH.01.10-30000

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Spinning Mills Industry

 

 

No of Employees :

1,539

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Indonesia

B1

A2

 

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, 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. INDO LIBERTY TEXTILES

 

Address :

Head Office

Menara Batavia Level 16

Jl. K.H. Mas Mansyur Kav. 126

Jakarta 10220

Indonesia

Phones             - (62-211) 574 5089, 572 2442 ext. 1024, 1010

Fax.                  - (62-211) 572 2441

Email                - info@indoliberty.com

Land area          - 32 storey

Factory space   - 280 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Jl. Raya Teluk Jambe

Desa Teluk Jambe, Kerawang 41361

West Java

Indonesia

Phones             - (62-267) 644 521 (hunting)

Fax.                  - (62-267) 409 513

Land area          - 19.5 hectares

Factory space   - 10.2 hectares

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

10 November 1994


Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C-23.726.HT.01.01.TH.1995

    Dated 04 April 1995

b. No. C-626.HT.01.04.TH.2000

    Dated 20 January 2000

c. No. AHU-0043519.AH.01.09.Tahun 2010

    Dated 09 June 2010

d. No. AHU-AH.01.10-30000

    Dated 22 July 2013

 

Company Status :

Foreign Investment Company (PMA)

 

Permits by the Government Department :

a. The Department of Finance

    NPWP No. 01.070.911.1-057.000

 

b. The President of the Republic of Indonesia

    No. B-315/Pres/10/1994

    Dated 04 October 1994

 

c. The Capital Investment Coordinating Board

    - No. 324/I/PMA/1994

      Dated 20 October 1994

    - No. 149/II/PMA/1996

      Dated 09 August 1996

    - No. 40/II/PMA/1998

      Dated 11 March 1998

    - No. 1529/III/PMA/2001

      Dated 19 November 2001

    - No. 204/II/PMA/2004

      Dated 12 November 2004

    - No. 122/II/PMA/2006

      Dated 28 April 2006

 

Related/Affiliated Company :

A member of the ADITYA BIRLA Group

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                             - US$. 20,000,000.-

Issued Capital                                   - US$. 19,500,000.-

Paid up Capital                                  - US$. 19,500,000.-

 

Shareholders/Owners :

a.  Thai Rayon Public Co. Ltd., of Thailand                    - US$. 7,800,000.- (40%)

b.  Thai Carbon Black Public Co. Ltd., of Thailand          - US$. 7,800,000.- (40%)

c. Cheddington Trading Company Inc., of Hong Kong     - US$. 3,100,000.- (16%)

d. Malton Limited of Hong Kong                                    - US$.    800,000.- (  4%)

 

BUSINESS ACTIVITIES

 

Lines of Business :

Spinning Mills Industry

 

Production Capacity :

Spun Yarn         - 260,012 bales per annum

Total Investment :

a. Equity Capital               - US$.  38.4 Million

b. Loan Capital                 - US$.  68.6 billion

c. Total Investment            - US$.107.0 billion

 

Started Operation :

June 1996

 

Number of Employee :

1,539 persons

 

Marketing Area :

a. Domestic (Local)  - 20%

b. Export                 - 80%

 

Main Customers :

a. Textile Industries in the country

b. Overseas buyers in Korea, Japan, Belgium, Spain, turkey, Brazil, US, China and Italy

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. Delta Merlin Sandang

b. P.T. DjoniTextindo

c. P.T. Golden Tatex Indonesia

d. P.T. Gunawan Texindo

e. P.T. Indopanca Centratex

f.  P.T. Maligi Spinning Mills

 

Business Trend :

Fluctuating

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. The Hongkong & shanghai Banking Corp

    World Trade Centre

    Jl. Jend. Sudirman Kav. 29-31

    South Jakarta, Indonesia

b. DEUTSCHE Bank AG

    Deutsche Bank Building

    Jl. Imam Bonjol No. 80

    Central Jakarta, Indonesia

c. P.T. Bank CENTRAL ASIA Tbk

    Kerawang Main Branch

    West Java, Indonesia

d. P.T. Bank NEGARA INDONESIA Tbk

   Kerawang Main Branch

    West Java, Indonesia

 

Auditor :

Osman Bing Satrio & Eny (Registered Public Accountants)

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales /Net Sales :

2011 – Rp.  73.8 million

2012 – Rp.  80.7 million

2013 – Rp.112.7 million

 

Net Profit (Loss) :

2011 – (US$.    218.1 thousand)

2012 –  US$.    234.0 thousand

2013 – (US$. 4,167.7 thousand)

 

Payment Manner :

Sometime delay

 

Financial Comments :

Unhealthy

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Chand Ratan Dugar

Directors                                         - a. Mr. Ram Ratan Chandak

                                                        b. Mr. Lalit Kumar Bachani

                                                        c. Mr. Saji Mathew George

                                                        d. Mr. Balasundaram Rajasekaran

                                                        e. Mr. Rabindar Kumar Lali

 

Board of Commissioner :

President Commissioner                   - Mr. Thomas Varghesse

Commissioners                                - a. Mr. Kumar Mangalam Birla

                                                        b. Ms. Neerja Birla

                                                        c. Mr. Vikram Rao

                                                        d. Mr. Pooran Mal Bajaj

                                                        e. Mr. Prakash Maheshwari

 

Signatories :

President Directors (Mr. Chand Ratan Dugar) or one of the Directors (Mr. Ram Ratan Chandak, Mr. Lalit Kumar Bachani, Mr. Saji Mathew George, Mr. Balasundaram Rajasekaran or Mr. Rabindar Kumar lali) which must be approved by Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Fairly

 

Business Morality :

Fairly

 

 

OVERALL PERFORMANCE

 

P.T. INDO LIBERTY TEXTILES (P.T. ILT) was established in Jakarta based on Notarial Deed No. 50 dated 10 November 1994 drawn up  by Irawati Marzuki Arifin, SH., notary in Jakarta  with an authorized capital of US$ 16,000,000.- issued capital and paid-up capital of US$ 8,000,000. The original founding shareholders are THAI RAYON PUBLIC CO. LTD., THAI CARBON BLACK PUBLIC CO. LTD., both of Thailand, HILTOP Limited of British Virgin Island, ASSEAU Inc., of Liberia and P.T. BINTANG AGUNG of Indonesia. The Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia in its Decree No. C-23.726.HT.01.01.Tahun 1995 dated 4 April 1995.

 

The company’s notarial Deed has frequently been revised. In March 1997, HILTOP Limited of British Virgin Island, ASSEAU Inc., of Liberia and P.T. BINTANG AGUNG of Indonesia quitted and concurrently joined in new shareholders namely CHEDDING TRADING Co. Inc., and SUPREME RICH Corporation, both of British Virgin Island and by the same time the authorized capital was raised to US$ 20,000,000.-, issued and paid-up capital to US$ 19,500,000. In November 2001, SUPREME RICH Corporation of British Virgin Islands pulled out and replaced by MALTON Limited of Liberia.

 

Most recently by notarial Deed number 04 dated 03 July 2013 drawn up by Notary Ashoya Ratam, SH, the company’s board of director and board of commissioner had been changed.  The latest shareholders of the company are Thai Rayon Public Co. Ltd., of Thailand (40%), Thai Carbon Black Public Co. Ltd., of Thailand (40%), Cheddington Trading Company Inc., of Hong Kong (16%) and Malton Limited of Hong Kong (4%).  The amendment to deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-AH.01.10-30000, dated 22 July 2013.

 

We note that P.T. ILT is a company member of the ADITYA BIRLA Group of India, a large sized company group focusing its business in integrated textile industry and trading. In Indonesia the Group set up several companies like P.T. SUNRISE BUMI TEXTILES, P.T. ELEGANT TEXTILE INDUSTRY both engaged in spinning mills and P.T. INDO BHARAT RAYON in viscose rayon fiber and acrylic fiber industry.

 

      P.T. ILT obtained a foreign investment company (PMA) facility issued by Investment Coordinating Board (BKPM) in 1994 for dealing with spinning mills industry with its plant located on Jl. Raya Teluk Jambe, Desa Teluk Jambe, Karawang, West Java where it stands on 195,176 sq. meters landsite. The plant has been in operation since June 1996 with an installed production capacity of 108,900 bales of spun Yarns per year. The plant has used up an investment of US$ 85.0 million, with US$ 19.5 million having come from equity capital and the balance from loans.   In November 2004, P.T. ILT got an expansion permit to increase production capacity which an investment of US$ 21.0 million originally coming from loan. The expansion plant will be operating in the middle of 2006 and will be produce spun yarns of about 17,112 bales per annum. The raw material is imported through by THAI RAYON Co. Ltd., of Thailand.  Having started with 21,000 spindles in 1996, the company has doubled its capacity to 42,000 spindles in 1997 and their plant is designed to further expand to about 150,000 spindles to meet the growing demand of their valued customers.

 

Some 80% of its products are exported to Korea, Japan, Belgium, Spain, Turkey, Brazil, USA, China and Italy.  Around 20% of its products are distributed domestically to various textile industries in Jakarta, Bandung and Semarang.  We observed that P.T. ILT is classified as a medium-sized company of its kind in the country.  Beside, P.T. ILT also engaged in investment holding  by controlling 50% shares of ADITYA BIRLA YARN & FIBRE BRAZIL CONSULTORIA EMPRESARIAL LTDA, located in Sao Paolo, Brazil, and 25% shares of MULTIFIBRES AND YARNS (USA) Inc., located in Charlotte, North Carolina, USA.

 

Generally, demand for textile and textile product including finished fabrics, garment, cotton yarn, polyester textured yarn, textile chemicals and raw materials has been fluctuating in the last five years.  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 to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393,400 tons (US$ 5,735.6 million) in 2009 and rose again to 445,200 tons (US$ 6,598.0 million) in 2010 to 450,900 tons (US$ 7,801.5 million) in 2011 dropped to 450,200 tons (US$ 7,304.8 million) in 2012 and as of 30 November 2013 amounted to 398.0 thousand tons (US$ 6,847.7 million).

 

  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 1,477.800 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 declined to 1,312,200 tons (US$ 4,127.9 million) in 2008 to 1,369,600 tons (US$ 3,602.8 million) in 2009 to 1,525,900 tons (US$ 4,721.8 million) in 2010 declined to 1,493,3000 tons (US$ 5,563.3 million) in 2011 rose again to 1,508,500 tons (US$ 5,278.1 million) in 2012 and as of 30 November 2013 amounted to 1,360.7 thousand tons (US$ 4,833.1 million).  The export volume and value of the national TPT products in 2002 to as of 30 November 2013 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

   2013 *

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

450.2

398.0

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

6,847.7

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

1,360.7

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

4,833.1

*) January to November 2013

 

According to statement of financial position, the total income/revenue of P.T. ILT in fiscal 2011 amounted to US$.73.8 million with a net loss of US$.218.1 thousand increased to US$. 80.7 million with a net profit of US$. 234.0 thousand in 2012 and rose again to US$.112.7 million with a net loss of US$.4,167.7 thousand.  Up to present, we have yet to gain the statement of income of P.T. ILT in fiscal 2014.  The company’s statements of financial position in fiscal 2011, 2012 and 2013 are attached.  We observed that P.T. ILT is supported by financially strong behind it.  So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management is headed by Mr. Chand Ratan Dugar (61), a well-experienced professional manager of India in spinning mill and spurn yarn industry and trade.   He also appointed as President Director of P.T. ELEGANT TEXTILE INDUSTRY, also a member of ADITYA BIRLA Group.  In daily operation he is assisted by five directors namely Mr. Ram Ratan Chandak (40), Mr. Lalit Kumar Bachani (29), Mr. Saji Mathew George (61), Mr. Balasundaram Rajasekaran (50) and Mr. Rabindar Kumar Lali (40).  The management is handled by professional managers, expatriates and locals, with know-how in the above business. They are widely connected in domestic and foreign private business circles and also have good relations with the government sector. So far, we did not hear that the company’s management involved in the business malpractices or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

Considering the operation of P.T INDO LIBERTY TEXTILES suffered from loss in 2011 and 2013, also economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 

Attachment

 

PT. INDO LIBERTY TEXTILES

STATEMENTS OF FINANCIAL POSITION

As of 31 December 2011,  2012 and 2013

 

                                                                                                     (Expressed in US$)

DESCRIPTION

31 December

2013

2012

2011

ASSETS

 

 

 

a. Current Assets

 

 

 

    - Cash and cash equivalents

6,584,296

6,253,677

11,694,639

    - Short-term investments in time deposit

1,854,659

--

--

    - Trade and other receivables

14,386,397

12,992,284

8,372,304

    - Inventories

17,376,183

17,364,344

10,245,576

    - Prepaid taxes

821,068

2,118,773

1,142,228

    - Other current assets

472,410

3,933,483

3,352,818

    Total Current Assets

41,495,013

42,662,561

34,807,565

b. Non Current Assets

 

 

 

    - Deferred tax assets

--

28,697

706,301

    - Investment in associates

314,935

384,133

197,051

    - Property, plant and equipment

92,962,870

63,784,932

19,730,122

    - Computer software

--

4,833

33,829

    - Other non current assets

250,743

111,148

111,1481

    Total Non Current Assets

93,528,548

64,313,743

20,778,451

TOTAL ASSETS = LIABILITIES AND EQUITY

135,023,561

106,976,304

55,586,016

LIABILITIES

 

 

 

a. Current Liabilities

 

 

 

    - Short-term bank loans

6,562,261

909,695

--

    - Current maturity of long-term bank loans

8,755,193

464,286

--

    - Trade and other payables

20,013,745

20,219,348

14,957,386

    - Taxes payable

258,994

218,418

195,775

    - Accrued expenses

3,287,176

2,186,967

1,308,599

    - Other current liabilities

1,176,278

428,926

495,589

    Total Current Liabilities

40,053,647

24,427,640

16,957,349

b. Non Current Liabilities

 

 

 

    - Long-term loans - net of current maturity

60,280,543

43,535,714

--

    - Post-employment benefits obligation

613,744

654,457

586,024

    - Deferred tax liabilities - net

1,081,676

--

--

    Total Non-Current Liabilities

61,975,963

44,190,171

586,024

 

 

 

 

EQUITY

 

 

 

    - Issued and paid up capital

19,500,000

19,500,000

19,500,000

    - Reserves

3,891,275

3,625,602

3,399,724

    - Retained Earnings (Deficit)

9,602,676

15,232,891

15,142,919

     Total Equity

32,993,951

38,358,493

38,042,643

 

 

 

 

INCOME STATEMENT

 

 

 

Net Sales

112,726,231

80,726,833

73,753,666

Cost of Goods sold

(105,530,397)

(72,981,598)

(69,976,114)

Gross Profit

7,195,834

7,745,235

3,777,552

Operating Expenses

(10,344,642)

(6,908,948)

(3,935,621)

Profit (Loss) before income tax

(3,148,808)

836,287

(158,069)

Income tax benefit (Expense)

(1,018,907)

(602,312)

(59,985)

Net Profit (Loss) For the Year

(4,167,715)

233,975

(218,054)

Note: Audited by Osman Bing Satrio & Eny (Registered Public Accountants)

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.85

UK Pound

1

Rs.96.70

Euro

1

Rs.76.53

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

 

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.