MIRA INFORM REPORT

 

 

Report Date :

14.02.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. INDUSTRI PERIKANAN TERPADU CHIU SHIH

 

 

Registered Office :

Jalan Ikan Tuna Raya Barat II Pelabuhan Benoa, Denpasar Bali 12790

 

 

Country :

Indonesia

 

 

Date of Incorporation :

04.07.1996

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in Integrated Fishery Industry

 

 

No. of Employees :

160

 

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

 

 

 

 


Company name

 

Correct Name of Company :

P.T. INDUSTRI PERIKANAN TERPADU CHIU SHIH

 

 

Address

 

Head Office & Cold Storage

Jalan Ikan Tuna Raya Barat II

Pelabuhan Benoa, Denpasar

Bali 12790

Indonesia

Phones             - (62-361) 724761, 724763, 724872

Fax                   - (62-361) 724762

Land Area         - 5,200 sq. meters

Building Area     - 1,280 sq. meters

Region              - Commercial

Status               - Owned

 

Date of Incorporation :

04 July 1996

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

  No. C2-2180.HT.01.01.TH.1997

  Dated 31 March 1997

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

  a.  The Department of Finance

      NPWP No. 1.071.640.5-052

 

  b.  The President of the Republic of Indonesia

      No. B-397/Pres/6/1996

      Dated 03 June 1996

 

  c.  The Investment Coordinating Board

      - No. 484/I/PMA/1996

        Dated 25 June 1996

      - No. 1353/III/PMA/1998

         Dated 29 September 1998

      - No. 277/II/PMA/1999

        Dated 21 December 1999

 

      - No. 1299/III/PMA/2002

        Dated 20 December 2002

 

Related Company :

CHIU SHIH INTERNATIONAL OCEANIC DEVELOPMENT ENTERPRISE Co Ltd. of Taiwan

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - US$. 2,000,000.-

Issued Capital                                  - US$. 2,000,000.-

Paid up Capital                                - US$. 2,000,000.-

 

Shareholders/Owners :                 

  a. Chiu Shih International Oceanic

                                                      Development Enterprise Co. Ltd., of Taiwan                - US$ 600,000

  b. Mr. Chiu When Ching of Taiwan                           - US$ 400,000

  c.  Mr. Chiu Wen Li of Taiwan                                  - US$ 400,000

  d.  Mr. Chiu Chung Jen of Taiwan                             - US$ 400,000

  e.  Mrs. Yen Lai Chin of Taiwan                                - US$ 200,000

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Integrated Fishery Industry

 

Production Capacity :

  a.  Fresh Fishes                 -  5,260 tons p.a.

  b. Frozen Fishes               -     160 tons p.a.

  c.  Processing Fishes         -     160 tons p.a.

  d.  Dry Ices                        - 21,600 tons p.a.

 

Total Investment :

  a.  Equity Capital          - US$.   2.0 million

  b. Loan Capital            - US$.   9.0 million

  c.  Total Investment       - US$. 11.0 million

 

Started Operation :

1 9 9 7

 

Brand Name :

Chiu Shih

 

 

Technical Assistance :

Chiu Shih International Oceanic Development Enterprises Co. Ltd. of Taiwan

 

Number of Employee :

160 persons

 

Marketing Area :

Export      - 80%

Local       - 20%

 

Main Customers :

Foreign buyers in Japan, Australia, Hong Kong, Singapore and USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Shorin Bali

b. PT. Bali Mina Utama

c. PT. Central Bali Bahari

d. PT. Dae Do Raya Utama

e. PT. Super Saku Bali

f.  PT. Sari Segar Laut Indonesia

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

 

  a.  P.T. Bank MANDIRI Tbk

      Denpasar Branch

      Jl. Veteran No. 1

       Denpasar, Bali

      Indonesia

  b.  P.T. Bank CENTRAL ASIA Tbk

      Denpasar Branch

      Jl. Hasanuddin No. 58

      Denpasar, Bali

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 190.0 billion

2010 – Rp. 226.0 billion

2011 – Rp. 240.0 billion

2012 – Rp. 228.0 billion

2013 – Rp. 234.0 billion

 

Net Profit (estimated) :

2009 – Rp. 12.8 billion

2010 – Rp. 15.4 billion

2011 – Rp. 16.2 billion

2012 – Rp. 15.3 billion

2013 – Rp. 15.7 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Chiu Wen Ching

Directors                                         - a. Mr. Chiu Wen Li

                                                        b. Mr. Chiu Chung Jen

                                                        c. Mrs. Yen Lai Ching

                                                        d. Mrs. Chiu Mei Ling

 

Board of Commissioners :

President Commissioner                   - Mr.  Chiu Chin Chen

Commissioners                                - a. Mr. Chiu Chin Chu

                                                        b. Mrs. Chiu Mei Hsiu

 

Signatories :

President Director (Mr. Chiu Wen Ching) or one of the Directors (Mr. Chiu Wen Li, Mr. Chiu Chung Jen, Mrs. Yen Lai Ching or Mrs. Chiu Mei Ling) which must be approved by Board of Commissioners.

 


 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. INDUSTRI PERIKANAN TERPADU CHIU SHIH (P.T. IPTCS) was established in Denpasar, Bali in July 1996 with the authorized capital of US$ 2,000,000.- of which US$ 1,000,000 was issued and fully paid up. The founding shareholders of the company are CHIUH SHIH INTERNATIONAL OCEANIC DEVELOPMENT ENTERPRISE CO.,LTD, Mr. Chiu When Ching, Mr. Chiu Wen Li, Mr. Chiu Chung Jen and Mrs. Yen Lai Chin, all are from Taiwan.  The Articles of association has been approved by the Minister of Law and Human Rights through Decision Letter No. C2-2180 HT.01.01.TH.97 dated March 31, 1997.  The Company’s article of association has been amended for several times. In December 1999, the issued capital was raised to US$ 2,000,000 fully paid up. The capital structures and shareholder composition of P.T. IPTCS in details are as shown on page-3 of this report.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. IPTCS obtained a Domestic Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with integrated fishery industry by managing a coldstorage/plant located at Jalan Tuna Raya Barat II, Benoa Seaport, Denpasar, Bali on a land of 10,500 square meters having been in commercial operation since 1997. The plant has frequently been expanded to increase its annual production capacity. According to its license from the BKPM, the plant has annual production capacity of 5,260 tons of fresh fishes, 160 tons of frozen fishes, 160 tons of processed fishes and 21,600 tons of dried fishes. The development of the plant has absorbed an investment of US$ 11.0 million coming from own capital of US$ 2.0 million while the rest from loans. To support the continuous supply of tuna fish as the basic materials the company owns and operates 21 units of long line ships sized 60 GT to 150 GT and the company is also in cooperation with fishermen in Denpasar, Bali. The fish catching area of P.T. IPTCS is ZEEI Hindia Ocean bordered in East  with 120”000’ East longitude towards West until 06” 00’ North latitude and ZEEI Pacific Ocean bordered with coordinate point 127”00’ West longitude. Miss Rita, an administrative staff of P.T. IPTCS said that some 80% of the products are exported to various countries including Japan, Australia, Hong Kong, Singapore and USA while the rest is locally marketed.

 

We observe that P.T. IPTCS is classified as a medium-sized company in the country particularly in Denpasar, Bali dealing with integrated fishery industry of which the operation has been running smoothly and fluctuating in the last five years.

 

Generally, demand for cold storage and frozen seafood processing industry and exporting has been growing some 10% to 12% per year in the last five years in line with the growth of international hotels, sea food restaurant, food court, supermarkets, hypermarkets and other fishes retail shops.  In the coming years, the growth rate of demand is estimated at about 6% to 8% per annum. The present market situation for fish processing and canning industry is very competitive for a large number of similar companies operating in the country. 

 

Pursuant to media local, in 2012 Bali`s exports of tuna fish dropped 20.29 percent year-on-year to US$42.86 million in the first seven months of the year. The fall in the export earning followed a 28.02 percent decline in the export volume from 10,451.9 tons to 7,523.8 tons in the same period, I Ketut Teneng, the chief spokesman of the provincial administration, said. Japan has been the main export destination for fresh and frozen tuna from Bali with a smaller part to Europe, I Ketut Teneng said here on Wednesday.  He attributed the decline to weak demand from Japan which has not yet fully recover from last year’s tsunami and shrinking production.  P.T. IPTCS is considered to be in a favorable business position in view of the company's experience in the above business. 

 

Until this time P.T. IPTCS has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. IPTCS 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. 228.0 billion increased to Rp.240.0 billion in 2011 and declined to Rp. 228.0 billion in 2012 and rose again to Rp 234.0 billion in 2013.  The operation in 2012 yielded an estimated net profit of at least Rp. 15.7 billion and the company has an estimated total net worth of at least Rp. 122.0 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. IPTCS is headed by Mr. Chiu Wen Ching (49), a businessman of Taiwan with more than 17 years experience in integrated fishery industry. In his daily activities, he is assisted by Mr. Chiu Wen Li (48), Mr. Chiu Chung Jen (42), Mrs. Yen Lain Chin (63) and Mrs. Chiu Mei Ling (46) respectively as director. The management is handled by professional managers having wide relation with private businessmen of home and overseas as well as with the government sectors.  So far, we did not hear that the management of the company having been involved in business malpractices 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. IPTCS is sufficiently fairly good for business transaction.  But owing to 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.62.27

UK Pound

1

Rs.103.47

Euro

1

Rs.84.87

 

 

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.