MIRA INFORM REPORT

 

 

Report No. :

336818

Report Date :

20.08.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. STRETCHLINE

 

 

Registered Office :

Jl. Pembangunan II No. 32, Batusari, Batuceper, Tangerang, Banten 15121

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.11.2001

 

 

Com. Reg. No.:

AHU-AH.01.10-25443

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing of Narrow Fabric (Elastic)

 

 

No. of Employees :

360

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. 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, a current account deficit, and unequal resource distribution among regions. President Joko WIDODO - elected in July 2014 - has emphasized maritime and other infrastructure development, and especially increased electric power capacity, since taking office. Fuel subsidies were almost completely removed in early 2015, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration will not be completed by the previously-set deadline of year-end 2015.

 

Source : CIA

 

BASIC SEARCH

 

Name of Company :

P.T. STRETCHLINE

 

A d d r e s s :

Head Office & Factory

Jl. Pembangunan II No. 32, Batusari

Batuceper, Tangerang

Banten 15121

Indonesia

Phone               - (62-21) 552 2111 (hunting)

Fax.                  - (62-21) 552 2333

Email                - infostretch@stretchlinein.com

Website            - http://www.stretchlinein.com

Land Area         - 2.4 hectares

Building Area    - 1.8 hectares

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

20 November 2001

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Laws and Human Rights

  a.  No. C-15987.HT.01.01.TH.2001

      Dated 26 December 2001

  c.  No. AHU-91568.AH.01.02.Tahun 2008

      Dated 28 November 2008

  d.  No. AHU-34898.AH.01.02.Tahun 2012

      Dated 27 June 2012

  e.  No. AHU-AH.01.10-25443

      Dated 12 July 2012

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.026.517.9-057.000

 

Affiliated Companies :

a. STRETCHLINE (Singapore) Pte. Ltd., of Singapore

b. NEW IMPACT PRIVATE LIMITED of Singapore

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital   - US$.4,000,000 (Rp. 42,540,000,000)

Issued Capital         - US$.4,000,000 (Rp. 42,540,000,000)

Paid up Capital       - US$.4,000,000 (Rp. 42,540,000,000)

 

Shareholders/Owners :

a. STRETCHLINE (S) Pte. Ltd.,            - US$.3,150,000 (78.75%)

   Address : 133 Cecil Street

                   15-03 Singapore 069535

                   Singapore

b. NEW IMPACT PRIVATE LIMITED      - US$.  850,000 (21.25%)

   Address : 111 North Bridge Road

                   08-12 A Peninsula Plaza

                   Singapore

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Narrow Fabric (Elastic) Manufacturing

 

Production Capacity :

On the order basis

 

Total Investment :

a. Equity Capital            - US$.  4.0 million

b. Loan Capital              - US$.  6.0 million

c. Total Investment        - US$.10.0 million

 

Started Operation :

2002

 

Brand Name :

STRETCHLINE

 

Technical Assistance :

None

 

Number of Employee :

360 persons

 

Marketing Area :

a. Local (Domestic) - 20%

b. Export                - 80%

 

Main Customers :

a. Garment Industries

b. Overseas buyer in USA, UK, China and Hong Kong

 

Market Situation :

Very Competitive

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. STANDARD CHARTERED Bank

    Menara Standard Chartered, 10th Floor

    Jl. Prof. Dr. Satrio No. 164

    South Jakarta

b. The Hong Kong and Shanghai Bank Corp. (HSBC)

    World Trade Center

    Jl. Jend. Sudirman Kav. 29-31

    South Jakarta

 

Litigation :

No detrimental filling in our database

 

 

FINANCIAL FIGURE

 

Total Sales/Income (estimated) :

2011 – US$. 22.0 million

2012 – US$. 24.8 million

2013 – US$. 28.0 million

2014 – US$. 32.0 million

 

Net Profit (estimated) :

2011 – US$. 1.6 million

2012 – US$. 1.8 million

2013 – US$. 2.1 million

2014 – US$. 2.4 million

 

Payment Manner :

Almost promptly

 

Financial Comments :

Fairly good

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Timothy Allan Brent Speldewinde

Directors                                         - a. Mr. Christopher Stafford Tubbs

                                                        b. Mr. David Andrew Trust

                                                        c. Mr. Cyril Lee

Sales and Marketing Manger            - Mr. Praveen Selvaratnam

 

Board of Commissioners :

President Commissioner                  - Mr. Brian Norman Collier

Commissioners                               - a. Mr. Martin trust

                                                        b. Mr. Sharad Dayalal Amalean

                                                        c. Mrs. Chen ei Hung

 

Signatories :

President Director (Mr. Timothy Allan Brent Speldewinde) or one of the Directors (Mr. Christopher Stafford Tubbs, Mr. David Andrew Trust or Mr. Cyril Lee) which must be approved by President Commissioner (Mr. Brian Norman Collier) and one of the commissioners.

 

 

CAPABILITIES

 

Management Capability:

Good

 

Business Morality:

Good

 

 

OVERALL PERFORMANCE

 

P.T. STRETCHLINE was established in Jakarta based on Notary Deed No. 36 dated November 20, 2001 of Suanny Noviyanti Djojo, SH., notary in Jakarta with an authorized capital of US$.2,000,000 (Rp. 21,270,000) entirely was issued and fully paid up.  The founding shareholders of the company are P.T. MINGGALA and P.T. HONEY LADY UTAMA (both are of Indonesia), MAS HOLDING (Private) Ltd., of Sri Lanka, STRETCHLINE Ltd., of United Kingdom and BRANDOT INTERNATIONAL Ltd., of USA.  The Deed of establishment was approved by the Minister of Law and Human Rights through its Decree No. C-15987.HT.01.01.TH.2001 dated December 26, 2001.

 

The articles of association of the company have frequently been revised. In April 2006, the authorized capital was raised to US$.4,000,000 (Rp. 42,540,000,000) entirely was issued and paid up. At the same time, P.T. MINGALA, P.T. HONEY LADY UTAMA, MAS HOLDING (Private) Limited of and BRANDOT INTERNATIONAL Limited, withdrew and replaced by NEW IMPACT PTE LTD of Singapore and REGINA PACIFIC INVESTMENT Limited of Republic of Mauritius, entered into the company as a new shareholders.

 

 

 

The most recently by Notary Deed No. 25 dated May 16, 2012 drawn up by Mrs. Esther Mercia Sulaiman, SH., notary in Jakarta, the latest shareholders of the company are STRETCHLINE (Singapore) Pte., Ltd., of Singapore (78.75%) and NEW IMPACT Pte. Ltd, of Singapore (21.25%). This amendment to Deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-34898.AH.01.02.Tahun 2012 dated June 27, 2012 and No. AHU-AH.01.10-25443 dated July 12, 2012.  Since then, no changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. STRETCHLINE is a Foreign Capital Investment Company (PMA) dealing with narrow fabric (elastic) manufacturing industry by managing a plant located at Jalan Pembangunan II No. 32, Batusari, Batu Ceper, Tangerang, Banten Province.  The plant has been operating since 2002 and it was frequently expanded. P.T. STRETCHLINE gets technological assistance from STRETCHLINE Holding Inc., of the USA. In July 2013, the company has launched Fit-U a new quality of elastic where stretchability and power is engineered to suit the contours of the body, bringing a new dimension to comfort.  Other innovations by Stretchline showcasing at Interfilière include:

 

-  Fortitube, a patented bra wire casing that reduces wire poke through and increases durability

   in machine washable bras.

 

-   Bondelast, technology which producers elastic with fusible adhesive to provide the strong

  flexible bond between components of a garment.

 

-   Locksafe, technology that prevent unravelling of elastic improving the lifespan of the

  garment.

 

-   Stay4Sure, a patented silicon coating that ensures the garment is held in one place without

  cutting off circulation.

 

Some 80% of its narrow fabric (elastic) products are exported to the USA, the UK, China, Hong Kong etc., and the rest is marketed locally.  The products being produced by the company used by various intimate, swim and sportswear brands such as; JpPenney, Triumph, Victoria’s Secret, Calvin Klein, Wacoal, Madenform, Tehibo, Jockey, Lovable, Fantasie, Gildan, Elcaitex, etc. We observed that P.T. STRETCHLINE is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.

 

Generally, the demand for narrow fabric (elastic) including raw materials for ladies under wears had been fluctuating within the last five years in line with the growth of garment and textile industry in the country. The country’s garment industry is facing serious marketing problem not only in the country but also abroad. The textile and textile product (TTP) industry is one of the industries that has contrived to with stand the protracted global economic crisis.  According to the Central Bureau of Statistics (BPS) 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 rose again to 1,508,500 tons (US$ 5,278.1 million) in 2012 to 1,633.1 thousand tons (US$ 5,293.6 million) in 2013 and to 1,815.6 thousand tons (US$ 5,379.9 million) in 2014. The export volume and value of the national TPT products in 2002 to as of January 2015 are pictured on the following table.

 

 

Year

Textile Products

Garment

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015*

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

1,815.6

   153.0

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

5,379.9

   421.6

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

450.2

470.2

463.9

  35.4

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

7,450.9

   594.5

 

Until this time P.T.  STRETCHLINE has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement and the company’s management is very reticent to outsiders about finances. We observed that total sales turnover of the company in 2011 amounted to US$.22.0 million increased to US$. 24.8 million in 2012 to US$. 28.0 million in 2013 and rose again to US$.32.0 million in 2014.  The operation in 2014, it is estimated the company has yielded a net profit of at least US$.2.4 million and the company has an estimated total assets at least US$.16.0 million. It is projected that total sales turnover of the company will increase at least 6% in 2015.  We observe that P.T. STRETCHLINE 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. STRETCHLINE's management is led by Mr. Timothy Allan Brent Speldewinde (54) a businessman with more than 20 years experienced in narrow fabric manufacturing and trading. Daily activity he is assisted by three directors namely Mr. Christopher Stafford Tubbs (69), Mr. David Andrew Trust (51) and Mr. Cyril Lee (53).  The management is also backed and handled by experts and professional staff officers. 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. STRETCHINE is appraised to be good for business transaction.  However, in view of the economic condition in the country is still unstable and slowdown, we recommend to treat prudently in extending any new loan to the company.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.25

UK Pound

1

Rs.102.25

Euro

1

Rs.72.20

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

 

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.