MIRA INFORM REPORT

 

 

Report Date :

22.01.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. RATU UNGGUL SAHABAT

 

 

Registered Office :

Jl. Nusantara X Block D-35, Sunter Sacna Jakarta 14350

 

 

Country :

Indonesia

 

 

Date of Incorporation :

23.02.2001

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Garment Manufacturing

 

 

No. of Employees :

380

 

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. RATU UNGGUL SAHABAT

 

 

Address

 

Head Office

Jl. Nusantara X Block D-35, Sunter Sacna

Jakarta 14350

Indonesia

Phone               - (62-21) 6530 6600 (hunting)

Fax.                  - (62-21) 6530 7700

Building Area     - 2 storey

Office Space      - 180 sq. meters

Region              - Commercial

Status               - Owned

 

Factories

  a.  Jl. Raya Tlajung Udik

      Gunung Putri, Cibinong 16962

      Bogor, West Java

      Indonesia

      Phones             - (62-21) 8671712, 8675504, 8675505

      Fax.                  - (62-21) 8671713

      Land Area         - 10,500 sq. meters

      Building Area     -   8,800 sq. meters

      Region              - Industrial Zone

      Status               - Owned

 

  b.  Jl. Siliwangi, RT.04, RW.07

      Desa Bangkong Reang, Kel. Benda

      Sukabumi, West Java

      Indonesia

      Phones             - (62-266) 737 926

      Fax.                  - (62-266) 737 927

      Land Area         - 13,600 sq. meters

      Building Area     - 10,200 sq. meters

      Region              - Industrial Zone

      Status               - Owned

 

Date of Incorporation :

a. 04 January 1984 as P.T. DUA SEKAWAN RESPATI ENTERPRISES

b. 23 February 2001 as P.T. DUA SEKAWAN RESPATI

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C2-4820.HT.01.01.Th.85

    Dated 03 August 1985

b. No. C-18.369.HT.01.04.TH.2001

    Dated 05 November 2001

c. No. AHU-21499.AH.01.02.Tahun 2009

    Dated 19 May 2009

d. No. AHU-AH.01.10-33044

    Dated 15 August 2013

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

No. 01.314.092.6-048.000

 

Related/Affiliated Companies :

a. P.T. RAVINDO BANGUNPERSADA (Property Development and Office Space Leasing)

b. P.T. RAVINDO JAYA (Financial Services and Real Estate Development)

c. P.T. BUMI PERTIWI LESTARI (Coal Mine Management and Commerce)

d. P.T. METAL GLOBALINDO (Trading and Distribution of Steel Products)

e. MONEX INVESTINDO FUTURES (Financial Partnership)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                - Rp. 4,000,000,000.-

Issued Capital                      - Rp. 4,000,000,000.-

Paid up Capital                    - Rp. 4,000,000,000.-

 

Shareholders/Owners :

a. Mr. Manohar Lachmandas Nanwani     - Rp. 12,800,000,000.- (32%)

    Address :  Jl. Pangandaran II No.3B

                     North Jakarta

                     Indonesia

 

b. Mr. Amris Chandarban Lakhiani         - Rp. 13,600,000,000.- (34%)

    Address :  Jl. Jambu No. 7

                     Central Jakarta

                     Indonesia

 

c. Mr. Baiju Chellaram Kirpalani             - Rp. 13,600,000,000.- (34%)

    Address :  Jl. Bungur Besar 8 No.161

                     Central Jakarta

                     Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Garment Manufacturing

 

Production Capacity:

On the order basis

 

Total Investment :

a. Equity Capital         - Rp.   4.0 billion

b. Loan Capital           - Rp. 20.0 billion

c. Total Investment      - Rp. 24.0 billion

 

Started Operation :

1985

 

Brand Name :

DSR

 

Technical Assistance :

None

 

Number of Employee :

380 persons

 

Marketing Area :

Export    - 100%

 

Main Customers :

Overseas buyer in USA, United Kingdom, Australia and Singapore

 

Market Situation :

Very Competitive

 

Main Competitors :

c. PT. Ungaran Sari Garment

d. PT. Sri Rejeki Isman (Sritex)

e. PT. Busana Remaja Agracipta

f.  PT. Bintang Adi Busana

g. PT. Leading Garment Industry

h. PT. Metro Garment

i.  Etc.

 

Business Trend :

Growing

 

 

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

  a.  P.T. Bank EKONOMI Tbk

      Jl. Sunter Agung Utara Raya Blok E No.3E-F

      Sunter Agung Podomoro

      North Jakarta

      Indonesia

  b.  The Hongkong and Shanghai Banking Corp.

      Jl. Griya Utama, Komp. Puri Mutiara Blok A 93-95

      Sunter Agung Podomoro

      North Jakarta

      Indonesia

  c.  P.T. Bank DANAMON Tbk

      Jl. Danau Sunter Utara Blok B-1-B No.15-16

      Sunter Agung Podomoro

      North Jakarta

      Indonesia


Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 185.0 billion

2011 – Rp. 210.0 billion

2012 – Rp. 240.0 billion

2013 – Rp. 270.0 billion

 

Net Profit (estimated) :

2010 – Rp. 11.5 billion

2011 – Rp. 13.0 billion

2012 – Rp. 15.2 billion

2013 – Rp. 17.5 billion

 

Payment Manner :

G o o d

 

Financial Comments :

Satisfactory

 

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Manohar Lachmandas Nanwani

 

Board of Commissioners :

Commissioner                                 - Mr. Mohandas Rajaram Lakhiani

 

Signatories :

The Director (Mr. Manohar Lachmandas Nanwani) which must be approved by Board of Commissioner (Mr. Mohandas Rajaram Lakhiani)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be processed normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

 

Originally named P.T. DUA SEKAWAN RESPATI ENTERPRISES, the company was established in Jakarta in January 1984 with an authorized capital of Rp. 100,000,000.- of which Rp. 40,000,000.- was issued and fully paid up.  The founding shareholders of the company are Mr. Ramesh Lachiram Nanwani (50%) and Mr. Ishwar Gopaldas Nanwani (50%), both Indonesian businessmen of Indian extraction. The Deed of establishment has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decision Letter No. C2-4820.HT.01.01.Th.85 dated August 3, 1985.  The Articles of association of the company have frequently been revised.  In February 2001, the company’s name was changed to P.T. DUA SEKAWAN RESPATI.  Concurrently, the authorized capital was raised to Rp. 4,000,000,000.- of which Rp. 2,500,000,000.- was issued and fully paid  up.  Since at the time, the shareholders of the company are Mr. Chandarban Vasandmal Lakhiani (34%), Mr. Baiju Chelaram Kirpalani (34%) and Mr. Manohar Lacmandas Nanwani (32%). The amendment to notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. C-18.369.HT.01.04.TH.2001 dated  November 5, 2001.

 

Most recently by notarial Deed No. 6 dated February 26, 2013 made by Notary Surdjono Arham, SH., the issued capital was raised to Rp. 4,000,000,000.- entirely paid up.  Concurrently, Mr. Chandarban Vasandmal Lahiani pulled out and his shares are sold to Mr. Amrit Chandarban Lakhiani.  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-AH.01.10-33044 dated August 15, 2013.

 

P.T. DUA SEKAWAN RESPATI (P.T. DSR) has been in operation since 1985 dealing garment manufacturing.  The company manages two plants are located on Jl. Raya Tlajung Udik, Gunung Putri, Cibinong, Bogor, West Java and Jl. Siliwangi, RT.04, RW.07, Desa Bangkong Reang, Sukabumi, West Java.  The plants have been expanded for a couple of times to increase its production capacity and the company produces garments (apparels) based on the buyer’s order. Ms. Kusumawati, a marketing staff of the company explained that the range of garments includes both Men's and Women's dress and causal shirts, blouses, pants, shorts, skirts, dresses, blazers and suits, sport wears, etc.  About 95% of the company’s products are exported to various countries while the USA, United Kingdom, Australia, Singapore and others.  Meanwhile the rest of 5% is marketed locally among supermarket management and others.  We observed that P.T. DSR is classified as a medium-sized company of its kind in the country of which the operation had been running smoothly and growing steadily.

 

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 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 and dropped to 450,200 tons (US$ 7,304.8 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. DSR has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. DSR 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. 185.0 billion increased to Rp. 210.0 billion in 2011 to Rp. 240.0 billion in 2012 and rose again to Rp 270.0 billion in 2013.  The operation in 2013 yielded an estimated net profit of at least Rp. 17.5 billion and the company has an estimated total net worth of at least Rp. 160.0 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. Manohar Lachmandas Nanwani (64) as Director and CEO of the company. He is an Indonesian businessman of Indian descent with experience for 29 years in garment manufacturing and trading.  In daily activities, he is assisted by Mr. Mohandas Rajaram Lakhiani (43) as Commissioner.  The company's management has wide relations in private business circles within and outside the country and in the ranks of high-ranking government officials as well.   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. DUA SEKAWAN RESPATI is appraised to be good for business transaction.  However, in view of 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.61.54

UK Pound

1

Rs.101.08

Euro

1

Rs.83.38

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.