MIRA INFORM REPORT

 

 

Report Date :

08.02.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. LP DISPLAYS INDONESIA

 

 

Registered Office :

MM 2100 Industrial Town Block G  (Kawasan Industri MM2100 Blok G) Desa Gandameka – Cikarang Barat Cibitung, Bekasi 17520 West Java

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

13.04.2007

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Color Picture Tube Manufacturing

 

 

No. of Employees :

1,414

 

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 – 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

 

 

 

 


 

Name of Company

 

P.T. LP DISPLAYS INDONESIA

 

 

Address

 

Head Office & Factory

MM 2100 Industrial Town Block G

(Kawasan Industri MM2100 Blok G)

Desa Gandameka – Cikarang Barat

Cibitung, Bekasi 17520

West Java

Indonesia

Phones             - (62-21) 8989534, 8989548 (Hunting)

Fax                   - (62-21) 8982343, 8989524

Land Area         - 50,000 sq. meters

Office Space      - 37,000 sq. meters

Region              - Industrial Estate

Status               - Owned

 

Date of Incorporation :

a.   16 April 2001 as P.T. LG PHILIPS DISPLAYS INDONESIA

b.   13 April 2007 as P.T. LP DISPLAYS INDONESIA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-02320.HT.01.01.TH.2001

  Dated 22 June 2001

- No. AHU-AH.01.10-18829

  Dated 28 October 2009

- No. AHU-29792.AH.01.02.TH.2011

  Dated 14 June 2011

- No. AHU-AH.01.10-35211

  Dated 28 September 2012

- No. AHU-AH.01.10-44196

  Dated 25 October 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.868.712.9-055.001

 

The Capital Investment Coordinating Board

- No. 162/I/PMA/2001

  Dated 7 March 2001

- No. 672/III/PMA/2001

  Dated 5 June 2001

- No. 809/III/PMA/2001

  Dated 26 June 2001

- No. 237/III/PMA/2005

  Dated 16 March 2005

- No. 221/III/PMA/2006

  Dated 23 February 2006

 

The Department of Industry

No. 389/T/Industri/2005

Dated 18 May 2005                         

 

Related Company :

P.T. LG ELECTRONIC INDONESIA (Electronic and Electrical Household Appliances Assembling)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 380,000,000.-

Issued Capital                                  : US$   97,000,000.-

Paid up Capital                                : US$   97,000,000.-

 

Shareholders/Owners :

a. Mr. Park Ju Tae                                   - US$ 10,476,000.-

b. Mr. Park Tae Gyou                              - US$   6,916,000.-

c. Mr. Lee Sang Dal                                 - US$   6,499,000.-

d. Mr. Park Eui Kyoo                               - US$   6,373,000.-

e. Mr. Park Lee Giu                                 - US$   6,121,000.-

f.  Mr. Chun Hansung                              - US$   5,995,000.-

g. Mr. Lee Sang Hyun                             - US$   5,995,000.-

h. Mr. Kang Su Dong                              - US$   5,985,000.-

i. Mr. Hwang Tae Hoon                            - US$   5,917,000.-

j. Mr. Hwang Jong Ryul                           - US$   5,432,000.-

k. Mr. Park Dong Jin                               - US$   5,335,000.-

l. Mr. Lim Sung Dai                                 - US$   5,063,000.-

m. Mr. Lee Seung Mun                           - US$   5,102,000.-

n. Mr. Lee Kyuhyun                                 - US$   4,229,000.-

o. Mr. Kim Tae Gab                                 - US$   4,229,000.-

p. Mr. Jeong Dong Jin                            - US$   4,229,000.-

q. Mr. Lee Eun Min                                 - US$   3,104,000.-

 

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Color Picture Tube Manufacturing

 

Production Capacity :

a.   Color Picture Tube (CPT)            -   5.0 million pieces p.a.

b.   Color Display Tube (CDT)            -   2.0 million pieces p.a.

c.   Deflection Yoke (DY)                  -   6.0 million pieces p.a.

d.   Electric Gun (E-Gun)                  - 10.0 million pieces p.a.

 

Total Investment :

a.   Equity Capital                            - US$   97.0 million

b.   Loan Capital                              - US$   39.8 million

c.   Total Investment                         - US$ 136.8 million

 

Started Operation :

1 July 2001

 

Brand Name :

LP Displays

 

Technical Assistance :

LG Group, South Korea

 

Number of Employee :

1,414 persons

 

Marketing Area :

Export   - 90%

Local    - 10%

 

Main Customer :

Buyers in South Korea

 

Market Situation :

Very Competitive

 

Main Competitor :

P.T. MT PICTURE DISPLAY INDONESIA

 

Business Trend :

Fluctuating

 


 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   CITIBANK N.A.                         

      Citibank Tower

      Jalan Jend. Sudirman Kav. 54-55

      Jakarta Selatan - Indonesia

b.   P.T. Bank KEB INDONESIA

      Jalan Jend. Sudirman No. 28

      Jakarta 10220 – Indonesia

 

c.   P.T. Bank WOORI INDONESIA

      Jakarta Stock Exchange Building 16th Floor

      Jalan Jend. Sudirman Kav. 52

      Jakarta 12190 - Indonesia

d.   P.T. Bank CENTRAL ASIA Tbk

      Menara BCA Grand Indonesia

      Jalan M.H. Thamrin No. 1

      Jakarta Selatan - Indonesia

 

Auditor :

KAP, Hadori Sugiarto Adi & Rekan

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2011 – US$ 185.2 million

2012 – US$ 193.0 million

2013 – US$ 202.0 million

 

Net Profit :

2011 – US$ 6.8 million

2012 – US$ 7.0 million

2013 – US$ 8.6 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Park Ju Tae

Directors                                         - a. Mr. Park Tae Gyou

                                                         b. Mr. Park Eui Kyoo

                                                        c. Mr. Park Le Giu

                                                        d. Mr. Lee Sang Dal

 

Board of Commissioners :

Commissioner                                 - Mr. Kim Kee In

 

Signatories :

President Director (Mr. Park Ju Tae) or one of the Directors (Mr. Park Tae Gyou, Mr. Park Eui Kyoo, Mr. Park Le Giu or Mr. Lee Sang Dal) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

Originally named P.T. LG PHILIPS DISPLAYS INDONESIA was established in Bekasi, West Java in April 2001 with the authorized capital of US$ 55,000,000 issued capital of US$ 27,500,000 wholly paid up. Founders and original shareholders originally are LG ELECTRONICS INC., of South Korea and Mr. Kim Kee In, a South Korean businessman. The company notary documents had been changed a couple of times. In June 2001, LG ELECTRONICS INC., of South Korea pulled out and replaced by its sister company LG PHILIPS DISPLAYS CHINA BV., of the Netherlands and concurrently the authorized capital was increased to US$ 380,000,000 issued capital to US$ 97,000,000 wholly paid up. In March 2005, LG PHILIPS DISPLAYS INVESTMENTS of Netherlands entered into the company as new shareholder. Later in April 2007 the company was changed to P.T. LP DISPLAYS INDONESIA (P.T. LPDI). Then in September 2008 LG PHILIPS DISPLAYS CHINA B.V, was changed to LP DISPLAYS INTERNATIONAL B.V., of Netherlands and concurrently LP DISPLAYS EINDHOVEN B.V, of Netherlands joined the company as new shareholder.

 

Then in October 2009 LP DISPLAYS INTERNATIONAL B.V., and LP DISPLAYS EINDHOVEN B.V., pulled out and the whole shares sold to MGA HOLDING CORPORATION LIMITED of Hong Kong as new shareholder (100%). The revision of notary documents was made by Mrs. Siti Safarijah, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-61255.AH.01.10-18829, dated October 28, 2009. Later according to the latest revision of notary documents of Mrs. Sri Irmiati, SH., M.Kn., No. 7 dated 19 September 2012 MGA HOLDING CORPORATION LTD., Hong Kong pulled out and the whole shares taken over by Mr. Park Ju Tae (10.8%), Mr. Park Tae Gyou (7.6%), Mr. Park Eui Kyoo (6.6%), Mr. Park Le Giu (6.3%) and Mr. Lee Sang Dal (6.2%) and other (see profile) as new shareholders. Later according to the latest revision of notary deed Mr. Hasbullah Abdul Rasyid, SH., K.Kn., No. 201 dated 25 September 2013 the company board of director and commissioner re-elected 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.01.10-44196 dated October 25, 2013. 

 

      P.T. LPDI obtained a Foreign Investment (PMA) license issued by BKPM (Investment Coordinating Board) for dealing with electronic tube and component manufacturing operating as from 1 July 2001 by taking over two of all four factories of its sister company P.T. LG ELECTRONICS DISPLAYS DEVICES INDONESIA located at MM-21000 Industrial Town, Bekasi, West Java which operation as from 1996. The company is engaged in manufacturing, assembling and selling of electronic television tubes in complete form and/or complete knockdown form and is engaged in any other activities or business necessary for or incidental to the attainment of the manufacturing, assembling and selling electronic colour picture tubes. Both of the above two factories taken over by P.T. LPDI are color picture & display tube manufacturing unit and its component manufacturing unit. The plant produces color picture tube (CPT) some 5.0 million pieces, color display tube (CDT) of 2.0 million pieces, deflection yoke of 6.0 million pieces and electric gun (E-Gun) of 10.0 million pieces respectively per annum. But since February 2003 the unit of fly back transformer (FBT) and machinery has been transferred to P.T. JUNGWOO ELECTRONICS INDONESIA. The plant has been absorbed an investment of US$ 136.0 million, come from owned capital of US$ 97.0 million and the rest from loans. Some 90% of product is exported to South Korea while the rest is directly absorbed by its sister company in Indonesia namely P.T. LG ELECTRONIC INDONESIA for the assembling of color TV and color monitor. Beside that P.T. LPDI's product is also sold to SANYO brand TV assembling company in Indonesia. We see the operation of P.T. LPDI has been growing in the last tree years.

 

The demand for electronic components including color pictures tubes has kept on rising in the five years in line with the progress achieved in color television manufacturing industry in Indonesia. There are two similar companies now operating in Indonesia respectively P.T. LP DISPLAYS INDONESIA and P.T. MT PICTURE DISPLAY INDONESIA whose produce color picture tubes. According to the Indonesian Electronic Goods Producers Association (GABEL), the demand for Indonesian electronic goods, from both the domestic and export market, has been rising sharply. The demand for electronic goods is still much dominated by household appliances like color TV, video CD, electric iron, water pump, vacuum cleaner, electric fan, gas stove, rice cooker, etc. Business position of P.T. LPDI is fairly good because some 90% of the products is exported.

 

Until this time P.T. LPDI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. LPDI is very reclusive towards outsiders and rejected to disclose its financial condition. According to financial statement with audited by Public Accountant Hadori Sugiarto Adi & Rekan the sales turnover in 2010 amounted at US$ 200.6 million with a net profit of US$ 4.8 million decreased to US$ 185.2 million with a net profit of US$ 6.8 million.

 

We estimated the sales turnover in 2012 amounted at US$ 193.0 million increased to US$ 202.0 million in 2013. The operation in 2013 has yielded a net profit of US$ 8.6 million and projected to go on rising by at least 5% in 2014. The company has an estimated total networth of at least US$ 115.0 million. We observe that P.T. LPDI is supported by foreign partner with has financially strong and sound behind it. 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 financial statement as per 31 December 2010 and 2011 is attached below.

                                                                                                          (In US$)

 

Descriptions

31 December

 

2011

2010

A.  ASSETS

 

 

a.  Current Assets

 

 

       - Cash and Cash Equivalent 

11,525,115

4,125,660

       - Restricted Cash

1,307,668

3,847,284

       - Trade Receivable

19,149,501

20,072,644

       - Loan Restricted

60,990

-

       - Inventory

15,755,619

8,409,151

       - Prepaid Tax

913,242

1,830,164

       - Prepayments and Other Receivable

2,110,138

2,123,004

       - Total Current Assets

50,822,272

40,407,908

a.  Non Current Assets

 

 

       - Fixed Assets

27,628,800

31,917,259

       - Deferred Tax Assets

1,761,756

2,253,070

       - Other Assets

52,909

139,817

       - Total Non Current Assets

29,443,465

34,310,146

         Total Assets

80,265,737

74,718,054

B.   LIABILITIES & STOCKHOLDERS’ EQUITY 

 

 

a.   Current Liabilities 

 

 

       - Trade Payable

10,634,243

7,134,708

       - Other Liability and Accrual

22,437,836

21,192,473

       - Tax Payable

586,012

720,204

       - Total Current Liability

33,658,092

29,047,386

b.  Non Current Liabilities 

 

 

      - Provision for Employee Benefit

1,415,102

1,247,367

      - Total Non Current Liability

1,415,102

1,247,367

      - Total Liability

35,073,193

30,294,753

c.  Stockholders Equity  

 

 

     -  Share Capital 

34,726,000

40,740,000

     -  Loss from Capital Reduction

-

(32,631)

     -  Accumulated Profit (Loss)

10,456,544

3,715,931

     -  Total Equity

45,192,544

44,423,300

     -  Total Liability & Equity

80,265,737

74,718,054

 

 

 

C. INCOME STATEMENT

 

 

      a.  Sales – Net 

185,248,693

200,592,995

      b.  Cost of Goods Sold 

165,030,455

179,602,995

      c.  Gross Profit

20,218,244

20,989,999

      d.  Operating Expenses

11,060,584

13,689,225

      e.  Net Income (loss) from Operating

9,157,659

7,300,774

      f.   Profit Before Income Tax

9,273,999

7,129,457

      g.  Expense (Benefit) Deferred Income Tax

2,504,755

2,358,406

      h.   Net Profit

6,759,244

4,771,052

Notes: Ended 31 December 2011 and 2010 Audited by KAP Hadori Sugiarto Adi & Rekan

 

The management of P.T. LPDI is led by Mr. Park Ju Tae (57) a professional manager of LG ELECTRONICS Group of South Korea. Daily activity he is assisted by Mr. Park Tae Gyou (51), Mr. Park Eui Kyoo (49), Mr. Park Le Giu (55) and Mr. Lee Sang Dal (53) also a professional managers of South Korea. The management is handled by experienced professional manager in electronic component trading of the LG ELECTRIC Group, South Korea having wide relation with home and overseas private businessmen. They have already maintained a wide business relation among private companies at home and abroad as well as among government agencies. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. LP DISPLAYS INDONESIA is sufficiently fairly good for business transaction.

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.32

UK Pound

1

Rs.101.78

Euro

1

Rs.84.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.