MIRA INFORM REPORT

 

 

Report Date :

01.09.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. DELTA MERLIN SANDANG TEXTILE

 

 

Formerly Known As :

07 November 1974 as C.V. DUNIATEX

30 May 2001 as P.T. DELTA MERLIN SANDANG TEXTILE

 

 

Registered Office :

Jl. Raya Timur Km. 10 Bumiaji, Gondang, Sragen Central Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

07.11.1974

 

 

Com. Reg. No.:

No. AHU-AH.01.10-11897

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Spinning Mills Industry

 

 

No. of Employees

7,250 persons

 

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

A2

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

 


BASIC SEARCH

 

Name of Company :

P.T. DELTA MERLIN SANDANG TEXTILE

 

Address :

Head Office & Factory I

Jl. Raya Timur Km. 10

Bumiaji, Gondang, Sragen

Central Java

Indonesia

Phones             - (62-271) 887 002, 887 008

Fax.                  - (62-271) 887 009

Land area          - 30,000 sq. meters

Factory space   - 12,500 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory II

Jl. Raya Solo – Sragen Km. 22

Pulosari, Kebakkramat, Karangayar

Sragen, Central Java

Indonesia

Phones             - (62-271) 652534

Fax.                  - (62-271) 652666

Land area          - 28,000 sq. meters

Factory space   - 12,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

07 November 1974 as C.V. DUNIATEX

30 May 2001 as P.T. DELTA MERLIN SANDANG TEXTILE

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Justice and Human Rights

a. No. C-03945.HT.01.01.TH.2001

    Dated 27 July 2001

b. No. AHU-45795.ah.01.02.Tahun 2008

    Dated 29 July 2008

c. No. AHU-AH.01.10-12739

    Dated 11 August 2009

d. No. AHU-AH.01.10-11897

    Dated 02 April 2013

 

 

Company Status  :

Domestic Investment Company (PMDN)

 

Permits by the Government Department :

a. The Department of Finance

    NPWP No. 02.014.399.6-528.000

 

b. The Capital Investment Coordinating Board

    No. 10/33/I/PMDN/2001

    Dated 05 July 2001

 

Related/Affiliated Companies :

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

b. P.T. DELTA MERLIN DUNIA 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.  1,693,000,000,000.-

Issued Capital                                                    - Rp.     473,250,000,000.-

Paid up Capital                                                  - Rp.     473,250,000,000.-

 

Shareholders/Owners :

a.  P.T. DELTA DUNIA TEKSTIL                        -  Rp. 323,000,000,000.- (68.25%)

     Jl. Raya Palur Km. 7,1, Dagen,

     Jaten, Karang Anyar

     Central Java

b.  Mr. Sumitro                                                 -  Rp. 150,250,000,000.- (31.74%)

     Jl. Tegalharjo, RT. 04, RW. 04

     Kel. Tegalharjo, Kec. Jebres

    Surakarta, Central Java

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Spinning Mills Industry

 

Production Capacity :

Spun Yarn         - 250,000 bales per annum

 

Total Investment :

a. Equity Capital            - Rp.    250.0 billion

b. Loan Capital              - Rp.    820.0 billion

c. Total Investment         - Rp. 1,070.0 billion

 

Started Operation :

In 1975 when it was named C.V. DUNIATEX

 

Number of Employee :

7,250 persons

 

Marketing Area :

Domestic (Local)    - 100%

 

Main Customers :

a. P.T. Dunia Setia Sandang Asli Textile

b. P.T. Delta Merlin Dunia Textile

c. P.T. Dunia Sandang Abadi Textile

d. P.T. Damitex, etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. Dawai Indah Adi

b. P.T. DjoniTextindo

c. P.T. Golden Tatex Indonesia

d. P.T. Gunawan Texindo

e. P.T. Indopanca Centratex

f.  P.T. Maligi Spinning Mills

 

Business Trend :

Fluctuating

 

 

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

 

Annual Sales (estimated) :

2010 – Rp. 720.0 billion

2011 – Rp. 760.0 billion

2012 – Rp. 780.0 billion

2013 – Rp. 740.0 billion

 

Net Profit (Loss) :

2010 – Rp. 24.9 billion

2011 – Rp. 26.3 billion

2012 – Rp. 27.0 billion

2013 – Rp. 25.6 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Tan Sauw Hwa

Director                                     - Mr. Budi Santoso

 

Board of Commissioner :

President Commissioner            - Mr. Yohanes Hendrawan

Commissioner                           - Mr. Prasetyo Kris Widada

 

Signatories :

President Directors (Mr. Tan Sauw Hwa) or Director (Mr. Budi Santoso) which must be approved by Board of Commissioners (Mr. Yohanes Hendrawan or Mr. Prasetyo Kris Widada)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be proceeded normally

 

 

OVERALL PERFORMANCE

 

Initially named C.V. DUNIATEX was established in 1974 with legal status C.V. (Commanditaire Vennootschap) or Partnership with Sleeping partners.  The founding shareholders of C.V. DUNIATEX are Mr. Sugeng Hartono aka Tan Hoang King, his wife Mrs. Indriati and his brother Mr. Eddy Iskandar AKA Tan Hoen Tjik, all are Indonesian of Chinese extraction.   In May 2001 the founding shareholders pulled out and the whole shares are sold to Mr. Sumitro (80%) and his younger sister Miss Susana John Setiawan (20%), both are Indonesian entrepreneurs of Chinese extraction.  Concurrently, the company renamed to P.T. DELTA MERLIN SANDANG TEXTILE (P.T. DMST) with the authorized capital of Rp. 1,000,000,000,000 of which Rp. 250,000,000,000 was issued and fully paid up. The Deed of establishment was made by Notary Pujiastuti Pangestu, SH., and it was approved by the Minister of Justice and Human Rights through its Decree No. C-03945.HT.01.01.TH.2001 dated July 27, 2001.

 

The articles of association of the company have frequently been revised.  In June 2009 based on notarial Deed No. 06 dated June 01, 2009 made by Notary Pujiastuti Pangestu, SH., the authorized capital was raised again to Rp. 1,693,000,000,000.- of which Rp 473,250,000,000.- was issued and fully paid up.   Since at the time, the shareholders of the company are P.T. DELTA DUNIA TEKSTIL (68.25%) and Mr. Sumitro (31.75%). The deed of amendments was approved by the Ministry of Law and Human Rights in its Decision Letter No. AHU-AH.01.10-12739 dated August 11, 2009.

 

Most recently by notarial deed number 34 dated February 18, 2013 was made by Notary Pujiastuti Pangestu, SH., the company’s board of director and board of commissioner had been changed. The amendment to deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-AH.01.10-11897 dated April 2, 2013.

 We observed that P.T. DMST has been in operation since 1974 (when it was named CV. DUNIATEX)  in dealing with spinning mills and grey fabric industry by managing a plant located at Jalan Raya Palur Sragen Km 71, Karang Anyar, Solo, Central Java.  In May 2001 P.T. DMST focusing on yarn weaving industry. Whereas, the unit for producing grey fabrics, dyeing, printing and finishing was shifted to its sister company (PT. Delta Dunia Tekstil) whose plant is still located at Jalan Raya Palur Sragen Km 71, Karang Anyar, Solo, Central Java. 

 

In July 2001, P.T. DMST obtained a domestic investment company (PMDN) facility issued by Investment Coordinating Board (BKPM) with number 10/33/I/PMDN/2001 dated July 5, 2001 for dealing with spinning mills industry.  Today, P.T. DMST manages two spinning mills located at Jalan Raya Timur Km. 10, Bumiaji, Gondang, Sragen and Jalan Raya Solo-Sragen Km. 22, Sragen, both are in Central Java.  According to the Capital Investment Coordinating Board (BKPM), P.T. DMST has annual production capacity of 250,000 bales of spun yarns consisting of cotton and viscose yarns and cotton/viscose blend yarns. Total investment reached Rp. 1,070.0 billion coming from own capital of Rp. 250.0 billion while the rest from loans. P.T. DMST produces not only conventional yarns but also high-twist and fine yarns. A large extent of the products is absorbed by its four sister companies dealing with textile industry in the form of grey fabrics and finished fabrics. We observed that P.T. DMST is classified as a large-sized company of its kind in the country of which the operation has been fluctuating in the last five 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.  DMST 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. DMST’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. 760.0 billion increased to Rp. 780.0 billion in 2012 and declined to Rp. 740.0 billion in 2013. The operation in 2013 yielded an estimated net profit of at least Rp. 25.6 billion and the company has a total asset of Rp. 560.0 billion. 

 

We observe that P.T. DMST 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. DMST's management is headed by Mr. Tan Sauw Hwa (53) as president director, a professional manager with more than 15 years of experience in textile industry and trading.  In daily activities, he is assisted by Mr. Budi Santoso (48) as director.  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. DMST, but since February 2013 he pulled out and was replaced by Mr. Yohanes Hendrawan (32) and Mr. Prasetyo Kris Widada (39).  This relates to a case of copyright infringement fabric products from PT. SRITEX made ​​by Mr. Sumitro and his mother Mrs. Indriati through PT. Delta Merlin Dunia Textile.  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.

 

Considering the operation of P.T. DMST declined in the last two years and 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.60.48

UK Pound

1

Rs.100.35

Euro

1

Rs.79.86

                

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

SDA

               

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.