MIRA INFORM REPORT

 

 

Report Date :

27.06.2014

 

IDENTIFICATION DETAILS

           

Name :

P.T. KEDAWUNG SETIA CORRUGATED CARTON BOX INDUSTRIAL

 

 

Formerly Known As :

P.T. KEDAWUNG SETIA CORRUGATED CARTON BOX INDUSTRIAL LTD

 

 

Registered Office :

Jalan Mastrip No. 862, Warugunung – Karangpilang, Surabaya 60221, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

11.03.1974

 

 

Com. Reg. No.:

No. AHU-27243.AH.01.02.Tahun 2013

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturer of Corrugated Carton Box and Egg Tray Products which are used in Food and Beverage Industries, Cigarette, Ceramics, Glasses, Electronic, Furniture, Textile, Pharmaceutical Companies and Garment Manufacturing as well as Automotive Components Manufacturing

 

 

No of Employees :

1,240

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

Indonesia ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% 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 also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

 

 

Source : CIA

 


Company name

 

P.T. KEDAWUNG SETIA CORRUGATED CARTON BOX INDUSTRIAL

 

 

company Address

 

Head Office

Jalan Mastrip No. 862

Warugunung - Karangpilang

Surabaya 60221, East Java

Indonesia

Phones             - (62-31) 7661983, 7661971 (Hunting)

Fax                   - (62-31) 7661981, 7663256, 7662481

E-mail               - kdsi_ind@rad.net.id

Land Area         - 12.4 hectares

Office Space      -   8.5 hectares

Region              - Industrial Zone

Status               - Owned

 

Branches

a.  Jalan Panggung III/17

     Surabaya 60162

     East Java, Indonesia

     Phones  - (031) 3522961, 3526158 - 59

     Fax        - 3532779

b.  Jalan Orpa no. 54

     Jakarta 11230, Indonesia

     Phone    - (021) 6900034

     Fax        - (021) 6900054

 

 

Date of Incorporation

 

a. 11 March 1974 as P.T. GELATIK RAYA CORPORATION

b. 03 October 1983 as P.T. KEDAWUNG SETIA CORRUGATED CARTON BOX INDUSTRIAL LTD

c. 30 April 1997 as P.T. KEDAWUNG SETIA CORRUGATED CARTON BOX INDUSTRIAL

 

 

Legal Form

 

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

 


Company Reg.No.

 

The Ministry of Law and Human Rights

   a.                                                No. C2-7555.HT.01.01.TH.83

      Dated 21 November 1983

   b.                                                No. C2-18801.HT.01.04.TH.94

      Dated 23 December 1994

   c.                                                No. C2-29326.HT.01.04.TH.98

      Dated 31 December 1998

   d.                                                No. AHU-99790.AH.01.02.Tahun 2008

      Dated 24 December 2008

   e.                                                No. AHU-27243.AH.01.02.Tahun 2013

      Dated 21 May 2013

 

Company Status :

Domestic Investment Company (PMDN)

 

Permits by the Government Department :

   a.                                                The Department of Finance

      NPWP No. 01.132.943.0-631.000

 

   b.                                                The Capital Investment Coordinating Board

      - No. 191/I/PMDN/1980

       Dated 31 December 1980

      - No. 78/III/PMDN/1987

        Dated 10 February 1987

      - No.163/III/PMDN/1989

        Dated 21 October 1989

      - No. 448/T/INDUSTRI/1993

        Dated 10 February 1993

      - No. 177/II/PMDN/1995

        Dated 12 July 1995

 

Related/Affiliated Companies :

The KEDAWUNG SETIA Group or the KITA Group Members

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - Rp. 315,000,000,000.-

Issued Capital                                  - Rp. 105,600,000,000.-

Paid up Capital                                - Rp. 105,600,000,000.-

 

Shareholders

a. P.T. KEDAWUNG SETIA INDUSTRIAL Tbk.        - Rp. 105,599,999,500.- (100.0%)

b. Mr. Harianto Wibisono                                       - Rp.                      500.- (    0.0%)

 

BUSINESS ACTIVITIES

 

Lines of Business :

Corrugated Carton Box and Egg Tray Manufacturing

 

Production Capacity :

a. Corrugated Carton Box                 - 180,000 tons p.a.

b. Egg Tray                                     -     2,760 tons p.a.

 

 

Total Investment :

a. Equity Capital               - Rp. 105.6 billion

b. Loan Capital                 - Rp. 120.0 billion

c. Total Investment            - Rp. 225.6 billion

 

Started Operation :

1979

 

Brand Name :

KEDAWUNG

 

Technical Assistance :

None

 

Number of Employee :

1,240 persons

 

Marketing Area :

Domestic (Local)            - 90%

Export (Overseas)          - 10%

 

Main Customers :

a. P.T. H.M. SAMPOERNA Tbk

b. P.T. DJARUM KUDUS

c. P.T. COCA COLA AMATIL INDONESIA

d. P.T. CHITOSE INDONESIA MANUFACTURING

e. P.T. UNILEVER INDONESIA Tbk

f.  P.T. PLATINUM ASIA CERAMICS

g. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. KEDAUNG SUBUR

b. P.T. SURABAYA MEKA BOX

c. P.T. LAMIBOCK PRIMA INDUSTRY

d. P.T. SURINDO TEGUH GEMILANG

e. P.T. PRIMA BOX INDUSTRY

f.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank CENTRAL ASIA Tbk

      Surabaya Branch

      Surabaya, East Java

      Indonesia

b.   P.T. Bank PERMATA Tbk

      Surabaya Branch

      Surabaya, East Java

      Indonesia

c.   P.T. Bank CHINATRUST INDONESIA

      Surabaya Branch

      Surabaya, East Java

      Indonesia

d.   P.T. Bank OCBC NISP Tbk

      Surabaya Branch

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Net Sales/Revenues (estimated) :

2011 – Rp. 1,040.4 billion

2012 – Rp. 1,132.9 billion

2013 – Rp. 1,233.6 billion

 

Net Profit (estimated) :

2011 – Rp. 20.4 billion

2012 – Rp. 32.9 billion

2013 – Rp. 35.8 billion

 

Payment Manner :

Average

 

Financial Comments :

Fairly Strong

KEY EXECUTIVES

 

Board of Management :

Director                    - Mr. Tjipto Wirahadikusumah Wibisono

 

Board of Commissioner :

President Commissioner    - Mr. Heru Wibisono AKA Tan Ming Tjhing

Commissioner                    - Mr. Harianto Wibisono

 

Signatories :

The Director (Mr. Tjipto Wirahadikusumah Wibisono) which must be approved by the Board of Commissioners (Mr. Heru Wibisono and Mr. Harianto Wibisono)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Originally named P.T. GELATIK RAYA CORPORATION established in Surabaya (East Java) on March 11, 1974 with an authorized capital of Rp. 600,000,000.- entirely was issued and paid-up. The founding shareholders of the company are Mr. Sutardjo, Mr. Haji Muhamad Jusuf Bambang Sujanto AKA Tan Bing Gwan and  Mr. Heru Wibisono AKA Tan Ming Tjhing, Mrs. Yeni Sasongko, Mrs. Widyawati Wibisono, Mr. Kusnadi Triwibowo wholly Indonesian of Chinese extraction, Mr. Haji Abdul Syukur, Mr. Partodiarjo and Mr. Soedarwa the latter two are indigenous businessmen.  On October 3, 1983, the company renamed to P.T. KEDAWUNG SETIA CORRUGATED CARTON BOX INDUSTRIAL LTD., and changed its again to P.T. KEDAWUNG SETIA CORRUGATED CARTON BOX INDUSTRIAL (P.T. KSCCBI) on April 30, 1997. The Articles of Association was approved by the Minister of Justice of the Republic of Indonesia through its Decree No. C2-7555.HT.01.01.TH.83 dated November 21, 1983.

 

The articles of association of the company have frequently been revised.  In December 1994, the authorized capital was increased to Rp. 40,000,000,000.- wholly issued of which Rp. 8,000,000,000.- was paid up. In 1995, the company shares were entirely taken over by P.T. KEDAWUNG SETIA INDUSTRIAL  Tbk., a business firm dealing with enamel and household products manufacturing which has gone public through Jakarta Stock Exchange (BEJ) and Surabaya Stock Exchange (BES) in July 1996.  On November 2008, the authorized capital was raised to Rp. 100,000,000,000.- of which Rp. 25,600,000,000.- was issued and fully paid up.

 

Most recently by notarial deed of Wachid Hasyim, SH., No. 44 dated April 25, 2013 the authorized capital was raised again to Rp. 315,000,000,000.- of which Rp. 105,600,000,000.- was issued and fully paid up.  Since the time, the shareholder of the company are P.T. KEDAWUNG SETIAL INDUSTRIAL Tbk., (100%).  The amendment to Article of Association has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-27243.AH.01.02.Tahun 2013 dated May 21, 2013.

 

P.T. KSCCBI is a member company of the KEDAWUNG SETIA Group or the KITA Group, a medium-size national private business group based in Surabaya (East Java) whose majority business stakes are controlled by the Wibisono family. The group's major activities are in banking, ceramic and enamel tableware manufacturing, corrugated carton box industry, plastic mats manufacturing, hotel owner and management

 

P.T. KSCCBI is  dealing  with carton box and egg tray manufacturing operating as from 1979 by managing a plant located at Karang Pilang, Surabaya (East Java) standing on 12.4 hectares land  adjacent to its parent company  P.T. KEDAWUNG SETIA INDUSTRIAL  Tbk.  Total investment invested by P.T. KSCCBI is amounted Rp. 13.9 billion with annual production of 1,500 tons of corrugated carton box and egg tray per month.  The plant has been expanded frequently for increasing total production capacity. Later, in 2011 its corrugated box production capacity was raised to 15,000 tons of corrugated carton box per month and 230 tons of egg tray per month.  The materials are purchased from a number of local paper making companies among others are P.T. SURABAYA AGUNG PULP & KERTAS, P.T. PAKERIN, P.T. PELITA CENGKARENG.  Around 90% of its products are marketed domestically particularly to a number of manufacturing companies among them are  P.T. H.M. SAMPOERNA Tbk., P.T. DJARUM KUDUS, P.T. COCA COLA AMATIL INDONESIA, P.T. CHITOSE INDONESIA MANUFACTURING, P.T. UNILEVER INDONESIA Tbk.,  P.T. PLATINUM ASIA CERAMICS, and the rest is exported to Australia.   We observed that P.T. KSCCBI is classified as a large-sized company of its kind in the country of which the operation has been growing in the last three years.

 

Generally, the demand for corrugated carton box and egg tray products in the country had significantly rising by 8% to 10% per year in the last five years, in line with the growth of industrial sectors such as food and beverage industries, cigarette, ceramics, glasses, electronic, furniture, textile, pharmaceutical companies and garment manufacturing as well as automotive components manufacturing.  But, as from October 2008, the demand growth for corrugated carton box and egg tray has kept on dwindling as an impact of global economic crisis as told above.  The demand was increasing in the early 2009 due to economic condition was gradually recovery in the country. The growth rate is now estimated at 5% to 7% per year. Market competition is very tight due to a large number of similar companies operating in the country such as PT. Kedaung Subur, PT. Surabaya Mexa Box, PT. Lamibock Prima Industry, PT. Prima Box, PT. Surindo Teguh Gemilang and others.  Business position of P.T. KSCCBI is favorable for it has controlled a wide marketing network at home and their product has been widely known among consumers in the country.

 

Until this time P.T. KSCCBI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.   But, pursuant to PT. KEDAWUNG SETIA INDUSTRIAL Tbk. (its holding company) that total sales turnover of P.T. KSCCBI in 2011 amounted to Rp. 1,040.4 billion increased to Rp. 1,132.9 billion in 2012 and rose again to Rp. 1,233.6 billion in 2013 and projected to go on rising by at least 8% in 2014.  The operation in 2013 yielded an estimated net profit of Rp. 35.8 billion and the company has an estimated total asset of Rp. 350.0 billion.  So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).   Besides, the company usually pays its debts punctually to suppliers.

 

Since April 2013, the Company’s management is headed by Mr. Tjipto Wirahadikusumah Wibisono (30), replacing Mr. Harianto Wibisono (52) as CEO of the company.  He is a son of Mr. Heru Wibisono (63) of the founding shareholders of the KEDAWUNG SETIA Group or KITA Group. 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 company’s management involved in the business malpractices or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

We are convinced that P.T. KSCCBI is good for normal business transactions.  However, in view of the unstable economic condition and political situation in the country is warming, so we recommend to treat prudently in extending a loan to the company.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.16

UK Pound

1

Rs.102.23

Euro

1

Rs.82.04

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MNL

 

 

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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