MIRA INFORM REPORT

 

 

Report Date :

17.05.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. KARUNIA CATUR PERKASA

 

 

Registered Office :

Jalan Raya Sumberpasir Timur No. 189, Desa Sumber Pasir, Kecamatan Pakis

Malang, 62154, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

28.08.2003

 

 

Com. Reg. No.:

No. AHU-AH.01.10-31693

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Leather Tanning Manufacturing

 

 

No. of Employees

228

 

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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  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

 

 

 


BASIC SEARCH

 

Name of Company :

P.T. KARUNIA CATUR PERKASA

 

A d d r e s s :

Head Office & Factory

Jalan Raya Sumberpasir Timur No. 189

Desa Sumber Pasir, Kecamatan Pakis

Malang, 62154

East Java

Indonesia

Phones             - (62-21) 789 888, 780 954

Fax                   - (62-21) 789 889

E-mail               - info@kcp.co.id

Land Area         - 35,000 sq. meters

Building Space  - 20,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

28 August 2003

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-27746.HT.01.01.TH.2003

  Dated 19 November 2003

- No. AHU-76890.AH.01.02.TH.2008

  Dated 23 October 2008

- No. AHU-AH.01.10-31693

  Dated 30 July 2013

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.347.896.9-623.000

 

The Department of Industry and Trade

TDP No. 132511900522

Dated 27 December 2005

 

Related Company :

None

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

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

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

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

 

Shareholders/Owners :

a. Mr. Liem Tjhing Tiong                                                  - Rp. 300,000,000.-

    Address : Jl. Siwalankerto Permai 3/I-17

                    Surabaya, East Java

                    Indonesia

b. Mr. Sutjipto Harsono                                                    - Rp. 300,000,000.-

    Address : Jl. Ijen No. 67

                    Malang, East Java

                    Indonesia

c. Mr. Gunawan Njotowidjojo                                           - Rp. 300,000,000.-

    Address : Jl. Sutorejo Utara Baru No. 5

                    Surabaya, East Java

                    Indonesia

d. Mrs. Lo Ellen Wongsosaputro                                       - Rp. 100,000,000.-

    Address : Jl. Legundi No. 20

                    Surabaya, East Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Leather Tanning Manufacturing

 

Production Capacity :

Finished Leather                              - 6,000,000 square foot meters

 

Total Investment :

Owned Capital                                 - Rp. 4.0 billion

 

Started Operation :

2004

 

Brand Name :

Karunia Catur Perkasa

 

Technical Assistance :

None

 

 

 

Number of Employee :

228 persons

 

Marketing Area :

Export      - 100%

 

Main Customer :

Shoes Industry in Vietnam and Germany

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. AFA SAMWO INDONESIA

b. P.T. ECCO TANNERY INDONESIA

c. P.T. ELCO INDONESIA SEJAHTERA

d. P.T. DAEHWA LEATHER LESTARI

e. P.T. KULITMURNI ASIATENGGARA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s:

a.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Jend. Basuki Rachmat 7-74

      Malang, East Java

      Indonesia

b.   P.T. Bank MANDIRI Tbk

      Jalan Jend. Gatot Subroto No. 9 A

      Malang, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 46.6 billion

2012 – Rp. 49.8 billion

2013 – Rp. 53.0 billion

Net Profit (estimated) :

2011 – Rp. 2.8 billion

2012 – Rp. 3.0 billion

2013 – Rp. 3.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Liem Tjhing Tiong

Director                                           - Mr. Sutjipto Harsono

 

Board of Commissioners :

President Commissioner                   - Mr. Gunawan Njotowidjojo

Commissioners                                - Mrs. Lo Ellen Wongsosaputro

 

Signatories :

President Director (Mr. Liem Tjhing Tiong) or the Director (Mr. Sutjipto Harsono) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. KARUNIA CATUR PERKASA (P.T. KCP) was set-up in Malang, East Java on 28 August 2003 with the authorized capital of Rp. 1,000,000,000 issued capital of Rp. 250,000,000 fully and paid up. The founding and shareholders of the company are Mr. Liem Tjhing Tiong, Mrs. Lo Ellen Wongsosaputro, Mr. Sutjipto Harsono and Mr. Gunawan Njotowidjojo, they are Indonesian businessmen of Chinese descents. The company notary deed had been changed a couple of times and in September 2008 the company authorized capital was increased to Rp. 4,000,000,000 issued capital to Rp. 1,000,000,000 entirely paid up. With this development the composition of its shareholders has been changed to become Mr. Liem Tjhing Tiong (30%), Mr. Sutjipto Harsono (30%), Mr. Gunawan Njotowidjojo (30%) and Mrs. Lo Ellen Wongsosaputro (10%). The latest according to the revision of notary deed Mr. Junjung Handoko Limantoro, SH., no. 76 dated 17 May 2013 the company board of director and the board of commissioner re-elected to lead and runs of the company’s operation. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-31693 dated July 30, 2013.

 

P.T. KCP is a national private company started to be operating since 2004 dealing with leather tanning manufacturing. The plant is located at Jalan Raya Sumber Pasir No. 189, Desa Sumber Pasir, Pakis district, Malang, East Java standing on 3.5 hectares land. The plant produces of finished leather of 6 million sq. foot per annum. Mr. Sutjipto Harsono, Director of the company explained 100% of the products exported for shoe industries, furniture industries, bag industries and others industries in Germany and Vietnam. Some of the raw materials like wet salted Java cow hide, wet salted Brahman cow hide is collected from Malang, East Java, Central Java, wet salted Bali cow hide from Bali. Besides, P.T. KCP is also imported raw material like Brine cured Australian cow hide from Australia. Global economic benefits accrue to downstream actors as value added from hide and skin processing is high. This has been proven by constant annual growth in exports of leather and leather products. In the wake of October 2008 global economic crisis, the tannery industry experienced a difficult period as seen in decreased production and manpower. Many tannery companies were even forced to close. The tannery industry has suffered further because post-crisis government policy failed to support the sector and in such a situation companies preferred to export wet blue leather. To guarantee domestic supply the government needs to encourage the leather tannery industry to improve quality in line with standards set by domestic consumers and increase production capacity and volume. It also needs to draw up a primary and secondary industry development strategy through synergy and the cluster approach and review various regulations on leather importation which have been hindering the secondary sector industry. We observe the operation of P.T. KCP has been growing slowly in the last five years.

 

In overall we find the demand for leather sheets had been fluctuating within the last five years in line with the growth of local and international market demand. It is estimated that it will remains fluctuated within the coming two-three years. Leather production is a complex task, encompassing 23 distinct steps, starting with the flaying of raw hides or skins and finishing with embossing, which presses a chosen grain into the surface of the finished hide. During the past five years, domestic production of finished leather has significantly varied. For example, from 2004 to 2006, leather production for footwear increased 49% from 45 million square feet in 2002 to 67 million in 2004. However, in the past two years, production levels have decreased by 15%, from 67 million in 2004 to 57 million square feet in 2006. The level of domestic leather produced has not been enough to satisfy consumption. In 2006, domestic finished leather for footwear consumption was estimated to be 69 million square feet, while domestic leather production was only 57 million square feet.

 

Of the 57 million square feet produced, 12 million was exported to foreign-owned footwear manufacturers, creating a deficit of 24 million square feet. This deficit was addressed through the import of finished leather, primarily from firms in India, Italy, Bangladesh and China.

 

Until this time P.T. KCP has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. KCP is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2011 amounted to Rp. 46.6 billion rose to Rp. 49.8 billion in 2012 increased to Rp. 53.0 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. 3.2 billion and the company has an estimated total networth of at least Rp. 6.0 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 management of P.T. KCP is led by Mr. Liem Tjhing Tiong (68) a businessman with experience in leather tanning manufacturing. In its operation he is assisted by Mr. Sutjipto Harsono (51) as Director. The company's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. 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. KARUNIA CATUR PERKASA is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.86

UK Pound

1

Rs.98.82

Euro

1

Rs.80.71

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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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