MIRA INFORM REPORT

 

 

Report Date :

10.01.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. EXCELLENCE QUALITIES YARN

 

 

Formerly Known As :

P.T. ANSA QUALITIES YARN

 

 

Registered Office :

Jl. Embong Trengguli No. 20 Surabaya 60271, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

12.11.2010

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject dealing with spinning mills industry

 

 

No. of Employees :

280

 

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

 

P.T. EXCELLENCE QUALITIES YARN

 

 

address

 

Head Office

Jl. Embong Trengguli No. 20

Surabaya 60271, East Java

Indonesia

Phones             - (62-31) 535 5725 (hunting)

Fax                   - (62-31) 535 5724

Email                - office@excellence.co.id

Website            - http://www.excellence.co.id

Building Area     - 850 sq. meters

Office Space      - 260 sq. meters

Region              - Commercial

Status               - Owned

 

Branch

Plaza Graha Family Blok D-8

Pradah Kalikendal, Dukuh Pakis

Surabaya 60226, East Java

Indonesia

Phones             - (62-31) 546 4662, 8812 9196

Fax                   - (62-31) 546 4677

Building Area     - 4 storey

Office Space      - 180 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Dusun Luwung, Desa Sumokembangsari

Balongbendo, Sidoarjo 61263

East Java, Indonesia

Phones             - (62-31) 4000 7387

Fax                   - (62-31) 4000 7388

Land Area         - 13,800 sq. meters

Building Area     - 10,200 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

a. 28 March 2005 as P.T. ANSA QUALITIES YARN

b. 12 November 2010 as P.T. EXCELLENCE QUALITIES YARN

 

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a.  No. C-24435.ht.01.01.th.2005

      Dated 05 September 2005

  b.  No. AHU-55835.AH.01.02.Tahun 2010

      Dated 29 November 2010

c.    No. AHU-AH.01.10-29790

     Dated 20 September 2011

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.114.082.7-618.000

 

Related/Associated Companies :

a. P.T. GLORIA RAMAYANA INTER HOTEL (Hotel Management)

b. P.T. GLORIARASA SAYANG INTER HOTEL (Hotel Management)

c. P.T. RAMA SHINTA JAYA TEKSTIL INDUSTRY (Spinning Mills)

d. P.T. SURYA JAYA INDAH TEXTILE (Textile Industry)

e. P.T. RAMAGLORIA SAKTI TEKSTIL INDUSTRI (Spinning Mills)

f.  P.T. NAVIGAT ORGANIC ENERGY (Electric Power Plant Development)

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - Rp. 58,260,000,000.-

Issued Capital                                  - Rp. 14,565,000,000.-

Paid up Capital                                - Rp. 14,565,000,000.-

 

Shareholders/Owners :                 

  a. Mrs. Sherlina Kawilarang          - Rp. 8,739,000,000.- (60%)

     Address : Jl. Jaksa Agung Suprapto No. 7

                     Surabaya, East Java

                     Indonesia

  b. Mr. Agus Nugroho Santoso      - Rp. 5,826,000,000.- (40%)

     Address : Kompleks Grawisa Blok CL.II/21

                     Tubagus Angke, West Jakarta

                     Indonesia


 

BUSINESS ACTIVITIES

 

Lines of Business :

Spinning Mills Industry

 

 

Production Capacity :

Spinning Mills                      - 60,000 bales p.a.

 

Total Investment :

a. Owned Capital                 - Rp.   40.0 billion

b. Loan Capital                    - Rp    80.0 billion

c. Total Investment               - Rp. 124.0 billion

 

Started Operation :

2 0 0 6

 

Brand Name :

Excellence Quality Yarn

 

Technical Assistance :

None

 

Number of Employee :

280 persons

 

Marketing Area :

a. Local    - 20%

b. Export  - 80%

 

Main Customers :

a. Textile Industries in the country

b. Foreign buyers in Singapore, Australia, Asia, USA, Europe and Africa

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Fuji Palapa Textile

b. PT. Sri Rejeki Isman

c. PT. Gunawantex

d. PT. Trisulatex

e. PT. Sinar Padasuka Textile

f.  PT. Delta Dunia Textile

g. PT. Sunrise Bumi Textile

h. PT. Apac Inti Corpora

i.  PT. Badjatex

j.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s  :

a. P.T. Bank  MAYAPADA INTERNATIONAL Tbk.

    Jl. Gubernur Suryo No. 10

    Embong Kaliasin, Genteng

    Surabaya, East Java

    Indonesia

b. P.T. Bank MANDIRI Tbk.

    Jl. Basuki Rahmat No. 129-137

    Surabaya, East Java

    Indonesia


Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Total Sales/Income (estimated) :

2010 – Rp. 160.0 billion

2011 – Rp. 228.0 billion

2012 – Rp. 265.0 billion

2013 – Rp. 310.0 billion

 

Net Profit (estimated) :

2010 – Rp. 10.5 billion

2011 – Rp. 15.0 billion

2012 – Rp. 17.7 billion

2013 – Rp. 20.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Agus Nugroho Santoso

 

Board of Commissioners :

Commissioner                                 - Mrs. Sherlina Kawilarang

 

 

Signatories :

Director (Mr. Agus Nugroho Santoso) which must be approved by Board of Commissioner (Mrs. Sherlina Kawilarang)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit should be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

 

Originally named P.T. ANSA QUALITIES YARN, the company was established in Surabaya based on Notarial Deed No. 42 dated March 28, 2005 made by Notary Suyati Subadi, a notary in Surabaya  with the authorized capital of Rp. 4,000,000,000.- entirely was issued and fully paid up. The founding shareholders of the company are Mrs. Sherlina Kawilarang (80%) and Mr. Agus Nugroho Santoso (20%), both are Indonesian entrepreneurs of Chinese extraction.  The Deed of establishment has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. C-24435.HT.01.01.TH.2005 dated September 5, 2005.  The articles of association of the company have frequently been revised. In November 2010, the company named was changed to P.T. EXCELLENCE QUALITIES YARN (P.T. EQY).  The amendment to Notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-55835.AH.01.02.Tahun 2010 dated November 29, 2010.

 

According to the latest amendment to notary Deed No. 23 dated August 8, 2011 made by Notary Siti Nurul Yuliami, SH., the authorized capital was raised to Rp 58,260,000,000.- of which Rp 14,565,000,000.- was issued and fully paid up. However, no changes have been effected in term of its shareholding composition and capital structures to date.  The deed of amendments was approved by the Ministry of Law and Human Rights in its Decision Letter No. AHU-AH.01.10-29790 dated September 20, 2011.

 

We observe that majority business stakes is controlled by Mrs. Sherlina Kawilarang. She also business stakes owner of P.T. GLORIA RAMAYANA INTER HOTEL, P.T. GLORIARASA SAYANG INTER HOTEL, both dealing with oil palm plantation, P.T. RAMA SHINTA JAYA TEKSTIL dealing with spinning mills industry, P.T. SURYA JAYA INDAH TEXTILE dealing with textile industry, P.T. RAMAGLORIA SAKTI TEKSTIL engaged in spinning mills industry and P.T. NAVIGAT ORGANIC ENERGY engaged in electric power plant development.

 

P.T. EQY has been in operation since 2006 dealing with spinning mills industry.  Its plants is located at Dusun Luwung, Desa Sumokembangsari, Balongbendo, Sidoarjo, East Java.  According to its license, P.T. EQY has a production capacity of 60,000 bales of spinning yarns per year. The development of the project had ever been postponed as the impact of the economic crisis battering the country in mid-2008.   In early 2010, P.T. EQY started to operate commercially by keeping on adding machinery and other equipments of the plant.  Now, the factory is operated and equipped with modern machineries and new technologies using all international standards.  P.T. EQY produces synthetic yarn and cotton yarn with 3 different shipping technologies; vortex (MVS), Open End (Belcoro) and Ring Spinning.   Their yarn products are various such as; Viscose Rayon, Viscose Modal, Viscose Tencel, Polyester, Acrylic and Cotton.  Some 80% of the company products are exported to various countries including Singapore, Australia, Asia, USA, Europe and Africa, and the rest is locally marketed.   We observed that P.T. EQY is classified as a medium-sized company of its kind in the country of which the operation has been growing in the last three years.

 

Generally, demand for textile and textile product including cotton yarn, polyester textured yarn, finished fabrics, garment, textile chemicals and raw materials has been fluctuating in the last five years.  According to the Central Bureau of Statistics (BPS) the Indonesian 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 and rose again to 1,508,500 tons (US$ 5,278.1 million) in 2012. 

 

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

450.2

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.  EQY has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. Therefore, the company has no obligation to publish financial statement publicly.   P.T. EQY’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover of the company in 2010 amounted to Rp. 160.0 billion increased to Rp. 228.0 billion in 2011 to Rp. 265 billion in 2012 and rose again to Rp. 310.0 billion in 2013.  The operation in 2013 yielded a net profit at least Rp. 20.2 billion and the company has a total asset of Rp. 120.0 billion.    We observe that P.T. EQY 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 company usually pays its debts punctually to suppliers.  

 

The management of P.T. EQY is led by Mr. Agus Nugroho Santoso (43) as director, a businessman who experienced for more than 12 years in the field of textile industry. Daily operation he is assisted by Mrs. Sherlina Kawilarang (43) as commissioner and a number of professional managers and experts in the business. The management is handled by experienced staff in this business, having maintained a wide business relation with private businessmen at home and abroad as well as with government sectors. 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. EXCELLENCE QUALITIES YARN (P.T. EQY) is appraised to be good for business transaction.  However, in view of the above case and the 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.62.18

UK Pound

1

Rs.102.31

Euro

1

Rs.84.50

 

 

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.