MIRA INFORM REPORT

 

 

Report Date :

03.02.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. KAHATEX

 

 

Registered Office :

Jalan Raya Cijerah - Cigondewah, Girang No. 16, Melong – Cimahi 40534, Bandung, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

23.09.1980

 

 

Com. Reg. No.:

AHU-AH.01.10-34739

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Integrated Textile Industry

 

 

No of Employees :

4,582 persons

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

COMPANY NAME

 

P.T. KAHATEX

 

 

COMPANY ADDRESS

 

Head Office & Factory I

Jalan Raya Cijerah - Cigondewah, Girang No. 16

Melong – Cimahi 40534

Bandung

West Java

Phones             - (022) 6031030 (7 lines), 6031566 (7 lines)

Fax                  - (022) 6032166, 6031488

E-mail               - rc@kaha.com

Website            - www.kaha.com

Land Area         - 82,000 sq. meters

Building Space  - 36,800 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory II

Jalan Raya Rancaekek Km. 23

Sumedang

West Java

Phones            - (022) 7798060 (Hunting) 7792222

Fax                  - (022) 7798063, 7793111

Land Area         - 80,000 sq. meters

Building Space  - 42,500 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

23 September 1980

 

 

Legal Form

 

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

 

 

Company Reg. No

 

The Ministry of Law and Human Rights

- No. Y.A.5/434/22

  Dated 30 July 1981

- No. AHU-34711.AH.01.02.TH.2009

  Dated 23 July 2009

- No. AHU-AH.01.10-34739

  Dated 28 October 2011

 

 

Company Status

 

National Private and Domestic Investment (PMDN) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.104.586.1-092.000

 

 

The Capital Investment Coordinating Board

- No. 25/II/PMDN/1985

  Dated 1 May 1985

- No. 146/II/PMDN/1992

  Dated 25 November 1992

- No. 160/II/PMDN/94

  Dated 03 June 1994

- No. 18/II/PMDN/97

  Dated 28 January 1997

- No. 28/II/PMDN/1998

  Dated 6 April 1998

- No. 286/III/PMDN/1998

  Dated 2 September 1998

- No. 72/II/PMDN/2001

  Dated 4 December 2001

- No. 40/II/PMDN/2002

  Dated 24 September 2002

 

 

The Department of Industry and Trade

- No. 633/T/Industri/2000

  Dated 19 September 2000

- TDP. No. 102411700092

  Dated 28 December 2001

 

Related Companies

 

a. P.T. KAHAFEDERAL GARMENTS (Garment Manufacturing)

b. P.T. KAHAFORTUNE GARMENT (Garment Manufacturing)

c. P.T. KAHA SWEETER (Sweeter Manufacturing)

d. P.T. SIN CHEAU INDONESIA GARMENT (Garment Manufacturing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital    - Rp. 700,000,000,000.-

Issued Capital           - Rp. 700,000,000,000.-

Paid up Capital         - Rp. 700,000,000,000.-

 

 

Shareholders/Owners

 

a. Mr. Wijaya Trisna                                - Rp. 186,000,000,000.- (26.57%)

    Address : Komplek Sekneg Blok B No. 20/38

                    Kel. Sunter Agung, Jakarta Utara

 

 

b. Mr. Song Wen Shyang                        - Rp. 186,000,000,000.- (26.57%)

    Address : Jl. Cigondewah Girang RT.002/03

                    Kel. Melong, Bandung

                    West Java

c. Mrs. Song Wen Shyu                          - Rp.   96,000,000,000.- (13.72%)

    Address : Jl. Cigondewah Girang RT.002/03

                    Kel. Melong, Bandung

                    West Java

d. Mr. Huang Kuen Jeng                         - Rp.   90,000,000,000.- (12.86%)

    Address : Jl. Cigondewah Girang RT.002/03

                    Kel. Melong, Bandung

                    West Java

e. Mr. Song Liang Hua                            - Rp.   72,000,000,000.- (10.28%)

    Address : Jl. Cigondewah Girang RT.002/03

                    Kel. Melong, Bandung

                    West Java

f. Mr. Song Wen Po                                 - Rp.   35,000,000,000.- (  5.00%)

    Address : Jl. Cigondewah Girang RT.002/03

                    Kel. Melong, Bandung

                    West Java

g. Mr. Song Pei Guan                              - Rp.   35,000,000,000.- (  5.00%)

    Address : Jl. Cigondewah Girang RT.002/03

                    Kel. Melong, Bandung

                    West Java

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Integrated Textile Industry

 

 

Production Capacity

 

A.   Initial Plant

Cimahi Factory

a. Acrylic Yarns                             -       15,500  tons p.a.

b. Woven Fabrics                           - 36,000,000 meters p.a.

c. Knitted Fabrics                           -        15,600 tons p.a.

d. Jackets & Training-pack              -   1,180,000 dozens p.a.

e. T-Shirts                                      -      180,000 dozens p.a.

f. Sweaters                                    -        50,000 dozens p.a.

g. Socks                                        -   8,000,000 dozens p.a.

h. Denim (jeans)                             -   3,000,000 meters p.a.

i. Cotton Fabrics                             -   2,000,000 meters p.a.

j. T/C & T/R Yarns                          -        31,000 tons p.a.

l. Knitted Yarns                              -        12,000 tons p.a.

 

 

Sumedang Factory

a. Yarns                                    -        58,140 tons p.a.

b. Woven Fabrics                       - 29,000,000 meters p.a.

c. Knitted Fabrics                      -        24,600 tons p.a.

d. Acrylic Fibres                        -        50,000 tons p.a.

e. Socks                                   -   5,140,000 dozen p.a.

f. Garments                               -   1,120,000 dozens p.a.

 

B.   Expansion Plant

Cimahi Factory

a. Knitted Fabrics                      -        9,000  tons p.a.

b. Woven Fabrics                       -  6,000,000 meters p.a.

Sumedang Factory

a. Acrylic Fibres                        -             30 tons p.a.

b. Yarns                                    -       20,000 tons p.a.

 

 

 

Total Investment

 

A.   Initial Plant

a. Owned Capital                       - Rp.    400.0 billion

b. Loan Capital                          - Rp.    565.8 billion

c. Total Investment                     - Rp. 1,265.8 billion

 

B.   Expansion Plant

a. Owned Capital                       - Rp. 300.0 billion

b. Loan Capital                          - Rp. 364.1 billion

c. Total Investment                     - Rp. 664.1 billion

 

 

Started Operation

 

1982

 

 

Brand Name

 

KAHATEX

 

 

Technical Assistance

 

NONE

 

 

Number of Employee

 

4,582 persons

 

 

Marketing Area

 

Domestic (Local)      - 65%

Overseas (Export)    - 35%

 

 

Main Customers

 

a. P.T. KAHA FEDERAL GARMENT

b. P.T. KAHA FORTUNE GARMENT

c. P.T. SIN CHEAU INDONESIA GARMENT

d. P.T. KAHA SEATER INDUSTRY

e. Textile Importer of Singapore, Taiwan, Canada, Middle East and European countries

 

 

Market Situation

 

Very Competitive

 

 

Main Competitors

 

a. P.T. ARGO PANTES Tbk

b. P.T. CANDRATEX SEJATI

c. P.T. ERATEX JAYA Tbk

d. P.T. NATATEX PRIMA

e. P.T. SIPATEX PUTRI LESTARI

f. Etc.

 

 

Business Trend

 

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank CENTRAL ASIA Tbk

      Bandung Branch

      Jalan Asia Afrika No. 122-124

      Bandung, West Java, Indonesia

b.   P.T. Bank  INTERNATIONAL INDONESIA Tbk

      Jalan M.H. Thamrin No. 51

      Jakarta Pusat

      Indonesia

c.   P.T. Bank RAKYAT INDONESIA Tbk

      Jalan Jend. Sudirman No. 44-46

      Jakarta Pusat

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 698.0 billion

2012 – Rp. 725.0 billion

2013 – Rp. 743.0 billion

 

Net Profit (estimated) :

2011 – Rp. 34.9 billion

2012 – Rp. 43.5 billion

2013 – Rp. 48.3 billion

 

 

Payment Manner :

Sometime Delay

 

Financial Comments :

Weak

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr.  Widjaja Trisna or William Trisna

Directors                                         - a. Mr. Song Wen Shyang

                                                        b. Mr. Huang Kuen Jeng

                                                        c. Mrs. Song Ching Shyu

                                                        d. Mrs. Kang Tjhui Tju

 

Board of Commissioners :

President Commissioner                   - Mr. Song Liang Hua

Commissioners                                - a. Mrs. Song Wen Shyu

                                                        b. Mr. Song Wen Po

                                                        c. Mr. Song Pei Guan

 

Signatories :

President Director (Mr. Widjaja Trisna or William Trisna) and Directors (Mr. Song  Wen   Shyang and Mr. Huang Kuen Jeng) which must be approved  by the President  Commissioner (Mr. Song Liang Hua) and Commissioner (Mrs. Song Wen Shyu)

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Above Average

 

Credit Recommendation :

Credit should be extended under guarantee

 

 

OVERALL PERFORMANCE

 

P.T. KAHATEX was established in September 1980 in Bandung, West Java, with an authorized   capital of Rp. 1,000,000,000 and an issued capital of Rp. 200,000,000 of which Rp. 20,000,000 was paid up. The founders and original shareholders of the company are Mrs. Emmy Renoewidjojo and Mr. Tedjo Renoewidjojo, both Indonesians of Chinese extraction. The company notary deed had been changed a couple of times. In 1987 the whole original shareholders pulled out and replaced by Mr. Song Wen Po, Mr. Song Wen Tying, Mr. Song Wen Shyang, his son-in-law Mr. Widjaja Trisna or William Trisna (husband of Mr. Song Chin Shu, first daughter of Mr. Song Liang Hua) and Mrs. Song Wen Shyu. They are an Indonesian business family of Chinese extraction. In November 2000 the authorized capital was increased to Rp. 330,000,000,000 entirely issued and paid up.

 

Later in April 2006, the authorized capital was raised again to Rp. 630,000,000,000 entirely issued and paid up and concurrently whole shares of the company were controlled by Mr. Widjaja Trisna, Mr. Song Wen Shyang, Mr. Huang Kuen Jeng and Mrs. Song Wen Shyu. The deed of amendment was made by Mr. Drs. Yudi Priadi, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. C-18336.HT.01.04.TH.2006, dated June 22, 2006, and No. AHU-30769.AH.01.02.Tahun 2008, dated June 6, 2008. Then in March 2009 the authorized capital was increased to Rp. 700,000,000,000 wholly issued and paid up. With this development the composition of its shareholders has been changed to become Mr. Widjaja Trisna (26.57%), Mr. Song Wen Shyang (26.57%), Mrs. Song Wen Shyu (13.72%), Mr. Huang Kuen Jeng (12.86%), Mr. Song Liang Hua (10.28%), Mr. Song Wen Po (5%) and Mr. Song Pei Guan (5%). Later based on notary deed Mr. Drs. Yudi Priady, SH., No. 25 dated 18 August 2011 the company board of director and the board of commissioner reelected 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.01.10-34739 dated August 18, 2011.

 

We note that the above Song family is the owner of the entire business stakes of P.T. KAHAFEDEAL GARMENT and P.T. KAHAFORTUNE GARMENT, both active in the garment industry. In addition, they also control 20% of the shares of P.T. SIN CHEAU INDONESIA, a joint venture with SIN CHEAU GARMENT of Taiwan (80%).

 

P.T. KAHATEX is engaged in integrated textile industry with its plant located at Jalan Cijerah, Kampung Cigondewa, Cimahi, West Java. The company has grown to a large textile complex sprawling over two manufacturing sites at Cijerah, Bandung and Rancaekek near Bandung city, with an area of about 150 hectares. This places the company in the heart of the Indonesia textile industry. The plant had been operating since 1982 and frequently been expanded. In 1992 the company has been operating new plant at Jalan Raya Rancaekek Km.25, Sumedang, West Java. Mrs. Sri, a staff of the company, said that the plant of the company at Jalan Ranca Ekek produces various kinds of textile products including polyester, spinning, knitting and weaving products. In the end of 1993, P.T. KAHATEX took over and operated garment factory owned its sister company P.T. KAHINTEX near by its plant in Cimahi, Bandung, West Java.  Both plants have frequently been expanded. In January 1997 P.T. KAHATEX got an expansion permit for both plants, but no realization as yet due to a financial problem and tight banking liquidity. In mid-1998 it got a license to expand its plant in Sumedang, West Java, to produce sport-shoes and component, but no realization as yet.

 

The company is fully integrated from fiber, spinning mill to fabric, also manufacturing fabrication garment, sweeter garments, sock, blanket supply to multinational consumers. Employ with high technical technician to develop the company modern machinery, to ensure high quality and up to date product. The company has long history of continuous expansion with an ever broadening the product range. Currently the company is a major supplier to Indonesia textile sector and contributes significantly to the export market by exporting more than 35% of its production directly to about a lot of countries worldwide, 45% was indirect export with consumers company, about 20% supply to domestic market. Some 35% of the products is directly and indirectly exported to various countries such as Singapore, Taiwan and European countries, Canada and Middle East and the rest of 65% is locally marketed.  

 

The global economic slowdown since October 2008 has brought negative impact to the company on account of the increasing production cost and basic material prices. Meanwhile, the local TPT (Textile and Textile Products) industries and other factors causing the declining competitive ability of the national TPT products are the increasing production costs, high interest rates, expensive customs office costs, illegal retributions, textile and garment machinery restructuring costs and the rising prices of production components (oil fuel prices and electric base tariffs). We observed that P.T. KAHATEX is classified as a large sized company of its kind in the country of which the operation has been fluctuating the last five years.

 

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

 

 

Until this time P.T. KAHATEX has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. KAHATEX is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2011 amounted to Rp. 698.0 billion rose to Rp. 725.0 billion in 2012 increased to Rp. 743.0 billion in 2013 and projected to go on rising by at least 4% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 48.3 billion and the company has an estimated total net worth of at least Rp.725.0 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 company’s management is headed by Mr. Widjaja Trisna or William Trisna (55) with more than 24 years experience in the textile industry and trade. The management is further handled by managers who are professionals in the textile products industry and trade. In daily activities, he is assisted by Mr. Song Wen Shyang (47), Mr. Huang Kuen Jeng (48), Mrs. Song Ching Shyu (55) and Mrs. Kang Tjhui Tju (49) as directors. The management is also handled by a number of professional staff, having maintained a wide business relation with private businessmen at home and abroad as well as with government sector. 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 operation has been fluctuating in the last five years and the lustrous imported TPT product was to tighten the competition, we recommend to treat prudently in extending a loan to the company.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.47

UK Pound

1

Rs. 102.94

Euro

1

Rs. 84.60

 

 

INFORMATION DETAILS

 

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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