MIRA INFORM REPORT

 

 

Report Date :

03.05.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. SINAR CENTRAL SANDANG

 

 

Registered Office :

Jalan Raya Serpong Km. 7, Pakualam, Serpong Utara, Tangerang Selatan, Banten Province

 

 

Country :

Indonesia

 

 

Date of Incorporation :

04.09.1981

 

 

Com. Reg. No.:

AHU-AH.01.10-09177

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in dealing with Spinning Mill Industry

 

 

No of Employees :

820

 

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

 


Correct Name of Company

 

P.T. SINAR CENTRAL SANDANG

 

 

company Address

 

Head Office & Factory

Jalan Raya Serpong Km. 7

Pakualam, Serpong Utara

Tangerang Selatan

Banten Province

Indonesia

Phones - (62-21) 539 9447, 539 9448

Fax                   - (62-21) 539 9450

Land Area         - 5.0 hectares

Building Area    - 3.2 hectares

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

04 September 1981

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

  a.  No. Y.A. 5/145/12

      Dated 01 March 1982

  b.  No. AHU-08158.AH.01.02.Tahun 2012

      Dated 16 February 2012

  c.  No. AHU-AH.01.10-09177

      Dated 15 March 2012

 


Company Status

 

Domestic Investment Company (PMDN)

 

 

Permits by the Government Department

 

a. The Department of Finance

    NPWP No. 01.705.597.1-528.000

 

b. The Capital Investment Coordinating Board

    - No. 85/I/PMDN/1990

      Dated 23 January 1990

    - No. 592/III/PMDN/1990

      Dated 25 August 1990

    - No. 317/II/PMDN/1994

      Dated 26 October 1994

 

Related/Affiliated Company :

P.T. TIRTA LANGGENG ABADI (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 50,000,000,000.-

Issued Capital                                 - Rp. 25,500,000,000.-

Paid up Capital                               - Rp. 25,500,000,000.-

 

Shareholders/Owners :                  

  a. P.T. TIRTA LANGENG ABADI         - Rp. 22,950,000,000.- (90%)

     Address : Jl. Kyai Mojo No. 81-A

                     Joyosuran, Banjarsari

                     Surakarta, Central Java

  b. Mr. Christanto Kusumanugraha     - Rp.   2,550,000,000.- (10%)

     Address : Jl. Margoyudan No.37, RT.03/RW.01

                     Setabelan, Banjarsari

                     Surakarta, Central Java

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Spinning Mills Industry

 


Production Capacity :

Spun Yarn                     - 58,000 bales p.a.

 

Total Investment :

a. Owned Capital           - Rp. 25.5 billion

b. Loan Capital              - Rp. 63.8 billion

c. Total Investment        - Rp. 89.3 billion

 

Started Operation :

1982

 

Brand Name :

Sinar Central Sandang

 

Technical Assistance :

None

 

Number of Employee :

820 persons

 

Marketing Area :

a. Local   - 40%

b. Export - 60%

 

Main Customers :

a. Textile Industries

b. Foreign buyers in UK, Japan, Australia, Hong Kong and others

 

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.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

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. 380.0 billion

2011 – Rp. 430.0 billion

2012 – Rp. 490.0 billion

2013 – Rp. 560.0 billion

 

Net Profit (estimated) :

2010 – Rp. 16.6 billion

2011 – Rp. 14.9 billion

2012 – Rp. 17.0 billion

2013 – Rp. 19.5 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Christanto Kusumanugraha

Director                                          - Mr. Eddy Prasetyo Salim

 

Board of Commissioners :

Commissioner                                 - Mrs. Agatha Linda Vijayanti

 

Signatories :

President Director (Mr. Christanto Kusumanugraha) or Director (Mr. Eddy Prasetyo Salim) which must be approved by Board of Commissioner (Mrs. Agatha Linda Vijayanti)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

OVERALL PERFORMANCE

 

P.T. SINAR CENTRAL SANDANG (P.T. SCS) was established on September 4, 1981 with the authorized capital of Rp. 5,000,000,000 of which Rp. 1,000,000,000 was issued and fully paid up. The founding shareholders of the company are Mr. Hasyim Tantular AKA Tan Tiong Sim and Mr. Sulaeman Saputra, both are Indonesian businessmen of Chinese extractioin. The Article of Association has been approved by the Minister of Justice of the Republic of Indonesia through Decree No. Y.A.5/145/12 dated March 1, 1982.  The articles of association of the company have frequently been revised. In November 1990, the authorized capital was raised to Rp. 8,000,000,000 of which Rp. 2,000,000,000 was issued and fully paid up and concurrently Mr. Mr. Hendra Othman Husodo joined in as shareholders.  In February 1992 the whole shares of Mr. Hasyim Tantular had been taken over by his wife Mrs. Faryati Onggowidjaja.

 

Most recently by notarial deed of Vinsensius Henry, SH., No. 64 dated December 21, 2011 the authorized capital was raised again to Rp. 50,000,000,000,000.- of which Rp. 25,500,000,000.- was issued and fully paid up.  At the same time, the shareholders of P.T. SCS are P.T. TIRTA LANGGENG ABADI (90%) and Mr. Christanto Kusumanugraha (10%).  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-08158.AH.01.02.Tahun 2012 dated February 16, 2012 and No. AHU-AH.01.10-09177 dated March 15, 2012.

 

Originally P.T. SCS is a private company dealing with spinning mill industry and it had been operating since 1982.   Its plant is located at Desa Pakulonan, Serpong, Tangerang, Banten Province, on a land of some 5.0 hectares.   In 1990, P.T. SCS obtained a Domestic Capital Investment (PMDN) facility issued by the Capital Investment Coordinating Board (BKPM) with Number 85/1/PPM/PMA/1990 dated January 23, 1990. Since at the time, the plant has frequently been expanded and increased production capacity.  It has absorbed an investment of Rp 89.3 billion coming from own capital of Rp 25.5 billion and the remainder from loan. Some 60% of the company products are exported to various countries including United Kingdom, Japan, Australia, Hong Kong and the rest is locally marketed.  We observed that P.T. SCS 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 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.  SCS 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. SCS’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. 430.0 billion increased to Rp. 490.0 billion in 2012 rose again to Rp. 560.0 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 19.5 billion and the company has a total asset of Rp. 280.0 billion. 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. SCS's management is headed by Mr. Christanto Kusumanugraha (46) as President Director, a businessman with more than 12 years of experience in textile industry and trading.  In daily activities, he is assisted by Mr. Eddy Prasetyo Salim (47) as Director. The management of the company has a good enough reputation in industry and trading of textile. The management has wide relation with overseas and national private businessmen as well as with the government sectors.  We have never heard of the management of the company having been involved in business malpractice.

 

P.T. SINAR CENTRAL SANDANG 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.60.22

UK Pound

1

Rs.101.68

Euro

1

Rs.83.46

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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.