MIRA INFORM REPORT

 

 

Report No. :

316015

Report Date :

14.04.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. GOKAK INDONESIA

 

 

Registered Office :

Kodel House 8th Floor, Jalan H.R. Rasuna Said Kav. B-4 Jakarta Selatan, 12910

 

 

Country :

Indonesia

 

 

Date of Incorporation :

06.08.1979

 

 

Com. Reg. No.:

No. AHU-AH.01.10-20710

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Spinning Mills

 

 

No. of Employee :

709 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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. President Joko WIDODO - elected in July 2014 - has emphasized domestic economic growth in his first few months in office and in November 2014 reduced fuel subsidies, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

Source : CIA

 

 

BASIC SEARCH

 

Name of Company :

P.T. GOKAK INDONESIA

 

A d d r e s s :

Head Office

Kodel House 8th Floor

Jalan H.R. Rasuna Said Kav. B-4

Jakarta Selatan, 12910

Indonesia

Phone               - (62-21) 522 1458, 552 1488, 522 1459

Fax                   - (62-21) 522 1515

E-mail               - mangesh@gokakindonesia.com

Website            - http://www.gokakindonesia.com

Building Area    - 18th Floor

Office Space    - 200 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Jalan Ateng Ilyas No. 1, RT. 02 RW. 08

Kampung Muhara, Citeurup

Bogor, 16810

West Java

Indonesia

Phone               - (62-21) 875 2672, 875 2686, 875 2687

Fax                   - (62-21) 875 2673

E-mail               - factory@gokakindonesia.com

Land Area         - 10,000 sq. meters

Factory Space  - 6,600 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

06 August 1979

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. Y.A.5/86/10

            Dated 3 March 1980

-           No. AHU-08344.AH.01.02.TH.2009

            Dated 19 March 2009

-           No. AHU-0080558.AH.01.02.TH.2010

            Dated 5 November 2010

-           No. AHU-AH.01.10-25838

            Dated 16 July 2012

-           No. AHU-AH.01.10-20710

            Dated 28 May 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.002.076.6-057.000

 

The President of the Republic of Indonesia

No. B-27/Pres/9/1978

Dated 29 June 1978

 

The Capital Investment Coordinating Board

- No. 94/VI/PMA/1982

  Dated 8 October 1982

- No. 61/III/PMA/1984

  Dated 6 December 1984

- No. 28/II/PMA/1987

  Dated 25 May 1987

- No. 143/II/PMA/2003

  Dated 17 June 2003

 

Related Companies :

a.         EURO ASIAN MANAGERS LTD., Hong Kong (Investment Holding)

b.         SHAPOORJI PALLONJI & COMPANY LTD., India (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         : US$ 6,250,000.-

Issued Capital               : US$ 6,250,000.-

Paid up Capital             : US$ 6,250,000.-

 

Shareholders/Owners :

a. EURO ASIAN MANAGERS LTD.                                                        - US$ 4,562,000.-

    Address : Hong Kong

b. SHAPOORJI PALLONJI & COMPANY LTD                                        - US$ 1,375,000.-

    Address : 41/44, Minoo Desai Marg

                    Colaba, Mumbai – 400 005

                    Maharashtra, India

c. Mr. Humprey Rithan Djemat, SH, LLM                                              - US$    313,000.-

    Address : Jl. Imam Bonjol No. 78

                    Jakarta Pusat, Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Spinning Mills

 

Production Capacity :

a.                     Polyester/Cotton Yarns  - 16,583 bales p.a.

c.                     Cotton Yarns     -   3,600 tons p.a.

 

Total Investment :

a.         Equity Capital               - US$   6.2 million

b.         Loan Capital                  - US$ 26.4 million

c.         Total Investment            - US$ 32.6 million

 

Started Operation :

1982

 

Brand Name :

Gokak Indonesia

 

Technical Assistance :

Gokak India, Ltd., India

 

Number of Employee :

709 persons

 

Marketing Area :

Export              - 75%

Local    - 25%

 

Main Customer :

Buyers in Europe, Middle East and Asian countries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. GISTEX CHEWON SYSNTHETICS

b. P.T. GOLDEN TATEX INDONESIA

c. P.T. GRAND PINTALAN TEXTILE INDUSTRIES

d. P.T. GLORINDO FILATEX

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.         P.T. Bank DANAMON INDONESIA Tbk

            Jalan Prof. Dr. Satrio Kav. E-IV /6

            Jakarta Selatan, 12930

            Indonesia

b.         DEUTSCHE Bank AG

            Wisma Deutsche Bank

            Jalan Imam Bonjol 85

            Jakarta Pusat

            Indonesia

c.         P.T. Bank SBI INDONESIA

            Gedung Graha Mandiri

            Jalan Imam Bonjol No. 61

            Jakarta Pusat

            Indonesia

 

Auditor :

KAP, Paul Hadiwinata, Hidajat, Arsono, Ade Fatma & Rekan

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2012 – Rp. 312.7 billion

2013 – Rp. 325.0 billion

2014 – Rp. 337.0 billion

 

Net Profit :

2012 – Rp. 21.9 billion

2013 – Rp. 22.8 billion

2014 – Rp. 23.5 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                    - Mr. Mahaveer Appasaheb Kolhapuri

Directors                                   - a. Mr. Manguesh Sadanand Kanago

                                                - b. Mr. Humprey Rithan Djemat, SH, LLM

 

Board of Commissioners :

President Commissioner            - Mr. Jimmy Parakh AKA Parakh Jimmy Jahangir

Commissioners                         - a. Mr. Chandrakant Girdharlalshah

                                                - b. Mrs. Buanita Rosiana Djemat

                                                - c. Mr. Mahesh Chelaram Tahilyani

                                                - d. Mr. Khanna Umesh Narain

 

Signatories :

President Director (Mr. Mahaveer Appasaheb Kolhapuri) or one of the Directors (Mr. Manguesh Sadanand Kanago or Mr. Humprey Rithan Djemat, SH, LLM) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. GOKAK INDONESIA (P.T. GI) was established in August 1979 in Bogor, West Java with an authorized capital of US$ 2,300,000 issued capital of US$ 460,000 entirely paid up. The founding shareholders of the company are FORBES GOKAK Ltd., of India, EURO ASEAN MANAGERS Ltd., FORBES CAMPBELL HOLDINGS Ltd., WARRIOR INVESTMENT Co. Ltd., of India, THAKRAL BROTHERS Inc., of India, P.T. MULTIBIS PRIMA AGUNG of Indonesia and Mr. Humprey Rithan Djemat, SH, LLM., of Indonesia. The notary deed has been changed frequently. Then in February 2001, the authorized capital was raised to US$ 6,250,000 entirely issued and paid up. With this development the composition of its shareholders are EURO ASIAN MANAGERS LTD., Hong Kong, GOKAK TEXTILE LTD., India and Mr. Humprey Rithan Djemat, SH, LLM. The deed of amendment was made by Mr. Misahardi Wilamarta, SH., a public notary in Jakarta under Company Registration Number W7-HT.01.10-3605, dated November 17, 2006. Later on 19 October 2010, GOKAK TEXTILE LTD., India sold of its share to SHAPOORJI PALLONJI & COMPANY LTD., India as new shareholder. With this time the composition of its shareholders has been changed to become EURO ASIAN MANAGER LTD., Hong Kong (72.99%), SHAPOORJI PALLONJI & COMPANY LTD., India (22.00%) and Mr. Humprey Rithan Djemat, SH, LLM (5.01%). After that based on notary documents of Mr. Misahardi Wilamarta, SH., No. 92 dated 19 April 2013 the company board of director and the board of commissioner had been changed (see profile of this report). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-20710 dated May 28, 2013.

 

P.T. GI is a Foreign Investment (PMA) company licensed by Capital Investment Coordinating Board (BKPM) to deal with spinning mills. Its plant is located at Kampung Muhara, Citeurup, Cibinong, Bogor, West Java on a land of some 1.0 hectares. The plant had been operating since 1982 by produce polyester/cotton yarns of 16,583 bales and cotton yarns of 3,600 tons respectively per annum. P.T. GI manufactures yarns with the highest quality of raw materials from modern equipment to ensure that buyers have a pleasant working experience. The company has a firm focus set on consistent quality, timely deliveries, competitive prices and a customer friendly team. The company is in the business of yarn spinning and began operation in the year 1982. The factory is situated about 45 kms from the capital city of Jakarta and is en route to the garden city of Bogor. The company has a total capacity of 56,880 spindles and 560 open end rotors, manufacturing various types of spun yarns. Since 2007 the company has embarked on a modernization drive and the process is reaching completion.

 

The company manufactures spun yarns using different fibers and blends within these fibers. Below is a list of various products under regular production.

 

1.

Combed Cotton Yarns

The company makes 100% combed cotton yarns for knitting as well as for weaving. Count range of Ne 20 to Ne 40 using some of the finest raw materials.

2.

100% Karded Cotton Yarns

100% Karded cotton yarns for knitting and weaving
Count range of Ne 20 to Ne 40, mainly for consumption in the domestic markets.

3.

Polyester Spun Yarns

100% polyester spun yarns for knitting as well as for weaving.
Count range of Ne 20 to Ne 40.

4.

Polyester/Viscose  blended Yarns

PV blended yarns with a blend percentage of 65/35 for knitting as well as for weaving. Count range of Ne 20 to Ne 40.

5.

Open End Yarns

100% cotton open end yarns for weaving.
Count range of Ne 6 upto Ne 12.

6.

Multifold Yarns

The company can offer any of the above products in 2 ply, 3 ply and 4 ply from in house twisting facilities.

7.

100% Poly & PV Slub Yarn

The company can offer 100% Spun polyester Slub yarn & PV 65/35 slub yarn in the count range of Ne 24 to 30.

Source: P.T. Gokak Indonesia

 

P.T. GI has a wide marketing network established in several countries. The company has a loyal customer base which has supported the operations for many years. They trust and support in their partners has helped them grow from a 30,000 spindle unit in 2003 to a 60,000 spindle unit in 2012. The company is regularly exporting yarns to countries such as Germany, Poland, USA, Korea, Brazil, Argentina, Egypt, Portugal, Spain, Italy, Malaysia, Vietnam, Philippines etc. Almost 20 to 25 percent of the production is also sold in the domestic market to a well established customer base.

 

Products include polyester viscose and polyester cotton blended yarn and 100% cotton combed yarn both single and founded for knitting and weaving end use. The plant had absorbed an investment of US$ 32.6 million come from owned capital of US$ 6.2 million and the rest from loans. Mr. Wahid, general affairs manager of the company said to our inquiry that some 75% of the products are exported to Europe Union, USA, Middle East, Vietnam, Philippine, Bangladesh, Thailand and other Asian countries and the other 25% for local consumption with using GOKAK brand. The company also supplied some of the products to P.T. KAHATEX, P.T. MALAKATEX and other textile industries operating in Bandung (West Java), Solo (Central Java), Semarang and Tangerang (Banten Province).

 

The global economic crisis followed by fast rising local bank interest rates has also had a negative impact on the company's. Meanwhile, the local TPT (Textile and Textile Products) industries and other factors causing the declining competitive ability of the national TPT products are the increasing production costs, high interest rates, expensive customs office costs, illegal retributions, textile and garment machinery restructuring costs and the rising prices of production components (oil fuel prices and electric base tariffs). We observe the operation of P.T. GI has been growing and developing well in the last three years.

 

Year 2013 was a very challenging for the trade and business in general and for Polyester sector in particular where it undergone very turbulent period. The Global economic slowdown had an impending and prolonged impact on the demand that has been further exacerbated by the excessive supply due to over capacity of PTA, Polyester Fiber and Filament yarn in Asia, mainly led by China. This has triggered a global down-cycle in the polyester chain, which has been lasting for an abnormally longer period and where many of the Asian and Global manufacturers suffered considerably. The product spreads across the polyester value chain continued to remain depressed due to stiff competition and the softening trend in cotton and Rayon prices during the year. Polyester and Raw material chain apparently reflect the current uncertainty and slow down of the global economy and the overall growth of polyester production has slowed down in the past two years 2012 and 2013. With the effective capacity of about 17 million tons added in the last two years, PTA operating dropped to 76% in 2013 from 90.2% and likely to fall below 74% in 2014 with rationalization of the regional capacities. Polyester polymer production reaching 61.68 million tons, a growth of 3.2 million tons or 5.5% in the year 2013, marginally improved from4.6% in 2012 as the global economy recovered in the second half of 2013. Longer-term growth rates are trending better with over 6% look impressive compared with other major petrochemical related business sectors.

 

Global economy is expected to grow by 3.7% in 2014 and 3.9% in 2015, primarily due to recovery in advanced economies and the emerging economies to expand by 5.10% and 5.4% respectively. Indonesian economy is projected to grow moderately at 5.3% - 5.5% in 2014 and 2015 and the growth will be primarily driven by strong domestic consumptions and modest increase in exports to its major trading partners. The Indonesian rupiah (IDR) is likely to remain under pressure in early 2014 amid uncertainty over the election results and U.S. Fed tapering. Domestic environment for manufacturing sectors expect to pass through a tough phase with the proposed hike in energy and manpower costs. Both Gas prices and Electricity tariff are slated for a significant increase in 2014 putting pressure on cost competitiveness of the domestic manufacturers.

 

Industry is taking up the matter with the ministry for phasing out the hike over a period of time instead at one go. With regard to polyester upstream sector, with the additional capacity of Fiber and Filament yarn going on stream, domestic market is expected to face a stiff price competition for commodity products. However, the Company with its strong customer base and with a diversified product mix is firmly placed to remain competitive and maintain its leadership position. The delay in finding a solution to its long pending secured debt restructuring continues to remain a setback to carry out its growth plans. To expedite the process, the Company has recently submitted an updated restructuring plan with alternate option to its secured creditors that are under active consideration. Post restructure, the Company will have a sound and healthy financial base with its debts brought down to sustainable levels. This would in turn enable the company to raise finance from market to meet its short and long terms investments to fund its growth plans. All of these efforts will improve the performance of the Company significantly, and to reposition it to the forefront of the polyester industry and retain its strategic and leadership position.

 

National Polyester Production, 2007 – 2014

 

Year

Polyester Staple Fiber (PSF)

Polyester Filament Yarns (PFY)

Nylon Yarns (NY)

2007

2008

2009

2010

2011

2012

2013

2014

497715

500,670

505,674

515,680

529,700

556,000

592,140

630,291

715,000

670,000

674,000

680,000

700,000

725,000

772,125

822,313

16,360

17,443

18,556

19,740

21,000

32,000

34,240

36,705

Source: APSyFI, Processed by ICB

 

P.T. GI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. GI is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated the sales turnover in 2012 amounted at Rp. 312.7 billion increased to Rp. 325.0 billion in 2013 rose to Rp. 337.0 billion in 2014 and projected to go on rising by at least 6% in 2015. The operation in 2014 has yielded a net profit of at least Rp. 23.5 billion. We observe that P.T. GI is supported by foreign partner with has financially strong and sound behind it. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of P.T. GI is led by Mr. Mahaveer Appasaheb Kolhapuri (51) a professional manager of India with experience in spinning mills. Daily activity he is assisted by Mr. Manguesh Sadanand Kanago (42) and Mr. Humprey Rithan Djemat, SH, LLM (59) as Directors. 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. GOKAK INDONESIA is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.39

UK Pound

1

Rs.91.06

Euro

1

Rs.66.16

 

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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