MIRA INFORM REPORT

 

 

Report Date :

13.03.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. DELTA MERLIN DUNIA TEXTILE

 

 

Registered Office :

Jalan Raya Solo Sragen Km. 14, Pulosari, Kebak Kramat, Karanganyar, Central Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

25.09.1995

 

 

Com. Reg. No.:

No. AHU-AH.01.10-11937

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in the Textile Industry

 

 

No. of Employees :

7,518

 

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, 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

 


BASIC SEARCH

 

Name of Company :

P.T. DELTA MERLIN DUNIA TEXTILE

 

A d d r e s s :

Head Office & Factory

Jalan Raya Solo Sragen Km. 14

Pulosari, Kebak Kramat

Karanganyar, Central Java

Indonesia

Phones             - (62-271) 653 313 (hunting)

Fax                   - (62-271) 653 113

Land Area         - 30 hectares

Building Area     - 24 hectares

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

25 September 1995

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

            a.         No. AHU-04478.AH.01.02.Tahun 2008

                        Dated 29 January 2008

            b.         No. AHU-AH.01.10-05558

                        Dated 16 February 2012

            c.         No. AHU-AH.01.10-11937

                        Dated 03 April 2013

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.705.597.1-528.000

 

Related/Affiliated Companies :

a. P.T. DUNIA SETIA SANDANG ASLI TEXTILE (Textile Industry)

b. P.T. DELTA MERLIN SANDANG TEXTILE (Textile Industry)

c. P.T. DUNIA SANDANG ABADI TEXTILE (Textile Industry)

d. P.T. DAMITEX (Textile Industry)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp. 1,500,000,000,000.-

Issued Capital                - Rp. 1,029,000,000,000.-

Paid up Capital              - Rp. 1,029,000,000,000.-

 

Shareholders/Owners :           

            a. Mr. Sumitro  - Rp. 1,027,000,000,000.- (99.80%)

     Address : Jl. Tegalharjo, RT.004/RW.004

                     Jebres, Surakarta, Central Java

                     Indonesia

            b. Mrs. Susana John Setiawan - Rp.        1,000,000,000.- (  0.10%)

     Address : Jl. Tegalharjo, RT.004/RW.004

                     Jebres, Surakarta, Central Java

                     Indonesia

            c. Mrs. Indriati  - Rp.        1,000,000,000.- (  0.10%)

     Address : Jl. Arief Rahman Hakim No. 39

                     Surakarta, Central Java

                     Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Textile Industry

 

Production Capacity :

a. Spun Yarn     - 107,143 bales p.a.

b. Grey Fabrics  - 180.0 million meters p.a.

 

Total Investment :

Owned Capital   - Rp. 1,029 billion

 

Started Operation :

1999

 

Brand Name :

Delta Merlin Dunia Textile

 

Technical Assistance :

None

 

Number of Employee :

7,518 persons

 

Marketing Area :

a. Local - 40%

b. Export           - 60%

 

Main Customers :

a. Garment Industries

b. Foreign buyers in Europe, USA and Canada

 

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. Badjatex, etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s  :

a. P.T. Bank Internasional Indonesia Tbk

    Central Processing Centre

    Jl. MH Thamrin Kav. 22 No. 51

    Jakarta, Indonesia

b. P.T. Bank CENTRAL ASIA Tbk

    Karanganyar Branch

    Surakarta, Central Java

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Total Sales/Income (estimated) :

2010 – Rp.   756.0 billion

2011 – Rp.   862.0 billion

2012 – Rp.   990.0 billion

2013 – Rp.1,076.0 billion

 

Net Profit (estimated) :

2010 – Rp. 26.4 billion

2011 – Rp. 30.1 billion

2012 – Rp. 34.6 billion

2013 – Rp. 38.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director          - Mr. Hendra Wangsa Sasmita

Directors                       - a. Mr. Yohanes Hendrawan

                                      b. Mr. Joko Waluyo

 

Board of Commissioners :

Commissioners              - a. Mr. Tan Sauw Hwa

                                      b. Mr. Prasetyo Kris Widada

 

Signatories :

President Director (Mr. Hendra Wangsa Sasmita) or one of the Director (Mr. Yohanes Hendrawan or Mr. Joko Waluyo) which must be approved by Board of Commissioners (Mr. tan Sauw Hwa and Mr. Prasetyo Kris Widada)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

 

OVERALL PERFORMANCE

 

P.T. DELTA MERLIN DUNIA TEXTILE (P.T. DMDT) was established on September 25, 1995 with the authorized capital of Rp. 80,000,000,000 of which Rp. 20,000,000,000 was issued and fully paid up. The founding shareholders of the company are Mr. Sumitro and his parents Mr. Sugeng Hartono AKA Tan Hoang King and Mrs. Indriati, an Indonesian business family of Chinese extraction. The Article of Association has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. C2-112.HT.01.01.TH.97 dated January 8, 1997.

The articles of association of the company have frequently been revised. In March 2000, the authorized capital was raised to Rp. 800,000,000,000 of which Rp. 210,000,000,000 was issued and fully paid up and concurrently Mr. Sugeng Hartono withdrew and replaced by Mrs. Ellyana Hartanti and P.T. DUNIA SETIA SANDANG ASLI TEXTILE, a private company of which the majority shares are controlled by Mr. Sumitro.  Most recently by notarial deed of Pujiastuti Pangestu, SH., No. 103 dated December 28, 2011 the authorized capital was raised again to Rp. 1,500,000,000,000.- of which Rp. 1,029,000,000,000.- was issued and fully paid up.  At the same time, the shareholders of P.T. DMDT are Mr. Sumitro (99.8%), Mrs. Susana John Setiawan (0.1%) and Mrs. Indriati (0.1%).  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-AH.01.10-05556 dated February 16, 2012.

 

According to the latest amendment to notary Deed of Notary Pujiastuti Pangestu, SH., No. 32 dated 18 February 2013, the company board of director and the board of commissioner had been changed.  The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-11937 dated April 3, 2013. No changes have been effected in term of its shareholding composition and capital structures to date. 

 

P.T. DMDT is a member of the DELTA MERLIN Group, a large sized company group in Central Java focusing its activities on textile industry. Initially, the parent company of the DELTA MERLIN Group was C.V. DUNIATEX, a textile company being established by Mr. Sugeng Hartono in 1994. However, in May 2001 the company renamed to P.T. DELTA MERLIN SANDANG TEXTILE focusing on spinning mills industry.

 

P.T. DMDT obtained a Domestic Capital Investment (PMDN) facility issued by the Capital Investment Coordinating Board (BKPM) in 1996 to deal with textile industry. Its plant is located at Jalan Raya Solo Sragen Km. 14, Pulosari, Kebakramat, Karanganyar, Solo, Central Java on a land of 30 hectares. According to its license, P.T. DMDT has annual production capacity of 107,143 bales of spinning yarns, 180 million of grey fabrics with an investment of Rp. 202.5 billion comprising own capital of Rp. 80.0 billion and the rest from loans. The development of the project had ever been postponed as the impact of the economic crisis battering the country since mid-1997.  In 1999, P.T. DMDT started to operate commercially by keeping on adding machinery and other equipments of the plant. In August 2001, P.T. DMDT changed its project plan in which the initial investment of Rp. 202.5 billion was raised to Rp. 744.0 billion and raised again to Rp. 1,029.0 billion at present, which whole coming from own capital.   Besides, the spinning yarn of P.T. DMDT are supplied by its sister company P.T. DELTA MERLIN SANDANG TEXTILE with annual production capacity of 250,000 bales. Some 60% of the company products are exported to various countries including Europe, the USA and Canada and the rest is locally marketed. We observed that P.T. DMDT 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, 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 Indonesia 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

Source:  Central Bureau of Statistic      

 

Until this time P.T.  DMDT 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. DMDT’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 2011 amounted to Rp. 862.0 billion increased to Rp. 990.0 billion in 2012 rose again to Rp. 1,076.0 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 at least Rp. 38.0 billion and the company has a total asset of Rp. 1,115.0 billion.

 

We observe that P.T. DMDT 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.

 

P.T. DMDT's management is headed by Mr. Hendra Wangsa Sasmita (64), a professional manager with more than 25 years of experience in textile industry and trading.  In daily activities, he is assisted by two directors namely Mr. Yohanes Hendrawan (32) and Mr. Joko Waluyo (51).  But we observed that the prime-mover of the Company is Mr. Sumitro (45), the founder and business stakes owner of the Company.  Initially, Mr. Sumitro is a Commissioner of PT. DMDT, but since February 2013 he pulled out and was replaced by Mr. Sauw Hwa Tan (53) and Mr. Kris Prasad Widada (53).  This relates to a case of copyright infringement fabric products from PT. SRITEX made ​​by Mr. Sumitro and his mother Mrs. Indriati through PT. DMDT. Both suspects charged under Article 72 Paragraph 1 and 2 of the Law of the Republic of Indonesia No. 19 of 2002 regarding Copyright Juncto Article 55 of the Penal Code and Section 56 of the Criminal Code.  But in June 2013, PT. SRITEX revokes the lawsuit and the case eventually ended peacefully.

 

P.T. DELTA MERLIN DUNIA TEXTILE 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.61.09

UK Pound

1

Rs.101.59

Euro

1

Rs.84.65

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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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