MIRA INFORM REPORT

 

 

Report Date :

28.11.2014

 

IDENTIFICATION DETAILS

 

Name :

PD. SHANKAR PM

 

 

Registered Office :

Pusat Grosir Tekstil Mangga Dua Block E 4 No. 20, Jalan Arteri Mangga Dua, Jakarta Utara, 14430

 

 

Country :

Indonesia

 

 

Year of Establishments :

1995

 

 

Legal Form :

Sole Proprietary Concern

 

 

Line of Business :

Engaged in trading, import and distribution of various Textile Products for Woman, Lady’s and man’s with various types among others are Machine Embroidery Fabrics, Embroider Fabrics, Special Jacquard Fabrics, Gicha Jacquard Fabric, Damask Jacquard Fabric, Plain Dyed Fabric, Shirting Fabric, Organic Pigment Cotton Fabric, Silk Cotton Fabric, Polyester Cotton Fabric, Cotton Poly Blend Shirting Fabric, Cotton Yarn Poly Fabric, Poly Cotton Fabric, Linen Fabric & Fine Plain Dyed Fabric

 

 

No of Employees :

18

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Indonesia

B1

A2

 

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

Name of Concern

 

PD. SHANKAR PM

 

 

Concern Address

 

Head Office 

Pusat Grosir Tekstil Mangga Dua Block E 4 No. 20

Jalan Arteri Mangga Dua

Jakarta Utara, 14430

Indonesia

Phones            - (62-21) 6011786, 6120341, 6009932

Fax                   - (62-21) 6009930

Building Area    - 2 storey

Office Space    - 130 sq. meters

Region              - Commercial

Status               - Rent

 

 

Date of Incorporation

 

1995’s

 

 

Legal Form

 

Sole Proprietary Concern

 

 

Concern Reg. No.

 

Not Required

 

 

Concern Status

 

Private National Concern

 


Permit by the Government Department

 

The Department of Finance

Not Available

 

 

Related Concern

 

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 1.0 billion

 

Owners :

Mr. Shankar Mulani

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Engaged in trading, import and distribution of various Textile Products for Woman, Lady’s and man’s with various types among others are Machine Embroidery Fabrics, Embroider Fabrics, Special Jacquard Fabrics, Gicha Jacquard Fabric, Damask Jacquard Fabric, Plain Dyed Fabric, Shirting Fabric, Organic Pigment Cotton Fabric, Silk Cotton Fabric, Polyester Cotton Fabric, Cotton Poly Blend Shirting Fabric, Cotton Yarn Poly Fabric, Poly Cotton Fabric, Linen Fabric & Fine Plain Dyed Fabric

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1995’s

 

Brand Name :

Shankar PM

 

Technical Assistance :

None

 

Number of Employee :

18 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Trader and Retail Shop, Individual and Tailor

 

Market Situation :

Very Competitive

 

Main Competitors :

a. CV. ADE BUSANA COLLECTION

b. DULLAH TEXTILE

c. DULLAH TEXTILE

d. EVERY DECORATION, Etc

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank CENTRAL ASIA Tbk

      Mangga Dua Plaza Block 12 A

      Jalan Raya Mangga Dua

      Jakarta Utara

      Indonesia

 

b.   P.T. Bank MANDIRI Tbk

      Arkade Dusit Mangga Dua Bo. 5

      Jalan Arteri Mangga Dua

      Jakarta Utara

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 14.5 billion

2012 – Rp. 15.4 billion

2013 – Rp. 16.2 billion

2014 – Rp.   8.8 billion (January – June)

 

Net Profit (estimated) :

2011 – Rp. 1.5 billion

2012 – Rp. 1.6 billion

2013 – Rp. 1.7 billion

2014 – Rp. 0.9 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Shankar Mulani

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. Shankar Mulani) is only the authorized person to sign the loan on behalf of the concern.

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

 

Business Morality :

Satisfactory

 

OVERALL PERFORMANCE

 

Based on investigation results the correct of the Subject is PD. SHANKAR PM not SPD. SHANKAR PM as stated in your order ref. no. 294440 dated 22 November 2014.

 

PD. SHANKAR PM is a sole proprietary concern which established in Jakarta in 1995’s by Mr. Shankar Mulani an Indonesia businesswoman of Indian descent. The concern’s authorized capital is not announced in it’s of establishment. In general, the concern with status of sole proprietary concern shall increase its capital continuously together with its business development. We estimated that MR TEXTILE (AL MAYA) has capital about Rp. 1.0 billion.

 

PD. SHANKAR PM started to be operating since 1995’s to deal with trading, import and distribution of textile products. According information the concern sells of various textile products for woman, lady’s and man’s with various types among others are machine embroidery fabrics, embroider fabrics, special jacquard fabrics, gicha jacquard fabric, damask jacquard fabric, plain dyed fabric, shirting fabric, organic pigment cotton fabric, silk cotton fabric, polyester cotton fabric, cotton poly blend shirting fabric, cotton yarn poly fabric, poly cotton fabric, linen fabric & fine plain dyed fabric. The whole products imports through MAHATEX EXPORTS of India. Mr. Shankar Mulani, Director and owner of the concern went on to say some of the textile products mostly import from India and the rest for locals. The whole products sold through trader and textile shop, tailor made, and others in Jakarta and surroundings. We observe that PD. SHANKAR PM is a small size concern of its kinds which its operation has been growing and developing well in the last three years.

 

The textile and textile product (TTP) industry is one of the industries that has contrived to with stand the protracted global economic crisis. At a time when the average national industrial utilization rate fell to under 20% in 2008, TTP plants on the other hand were operating at an utilization rate of above 81.6%. This was attributable to the ability of textile and garment producers to maintain the utilization rate of plants at a high level by aggressively stepping up exports.

 

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 rose to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393,400 tons (US$ 5,735.6 million) in 2009 and 445,200 tons (US$ 6,598.0 million) in 2010 rose to 450,900 ton (US$ 7,801.5 million) in 2011 decline to 450,200 tons (US$ (7,304.8 million) in 2012 and increased to 470,200 tons (7,501.0 million) in 2013.

 

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 1,477.8 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 decrease to 1,312.2 tons (US$ 4,127.9 million) in 2008 rose to 1,369.6 tons (US$ 3,602.8 million) in 2009 and to 1,525.9 tons (US$ 4,721.8 million) in 2010 decreased to 1,493.3 tons (US$ 5,563.3 million) in 2011 increase to 1,508.5 tons (US$ 5,278.1 million) in 2012 increased to 1,633.1 tons (US$ 5,293.6 million) in 2013. The domestic textile producers are pessimism the textile export in 2009 could match the export numbers in 2008. The blow of the global economic crisis is resulted in the reduced of demand from the export destination countries like the United States (U.S.), Japan, and European Union region. While this year’s the exports expected fall into US$ 9.7 billion. The Chairman of the Indonesian Textile Association (API), Mr. Benny Soetrisno said that the decline in global purchasing power caused of the demand in the Indonesian textile products could not be able to grow as tight as 2008. The export volume and value of the national TPT products in 2002 to 2013 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

2013

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

450.2

470.2

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

7,501.0

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

1,633.1

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

5,293.6

Source: Central Bureau of Statistic

 

 Until this time PD. SHANKAR PM has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of the concern is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the concern in 2011 amounted to Rp. 14.5 billion rose to Rp. 15.4 billion in 2012 increased to Rp. 16.2 billion in 2013. As from January to June 2014 the sales turnover has reached at least Rp. 8.8 billion with a net profit of at least Rp. 0.9 billion. It is projected the sales will be higher by at least 4% in 2015. So far, we did not heard that the concern having been black listed by the Central Bank (Bank Indonesia). The concern usually pays its debts punctually to suppliers.

 

The management of PD. SHANKAR PM is led by Mr. Shankar Mulani (54) a businessman with experience in trading, import and distribution of textile products. The concern'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 concern being filed to the district court for detrimental cases or involved in any business malpractices. The concern’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. We are sure PD. SHANKAR PM is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.87

UK Pound

1

Rs.97.69

Euro

1

Rs.77.37

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.