MIRA INFORM REPORT

 

 

Report No. :

352413

Report Date :

05.12.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. INDO-RAMA SYNTHETICS TBK

 

 

Registered Office :

Jalan Gajah Mada No. 197-198, Desa Kembang Kuning, Ubrug, Jatiluhur, Purwakarta 41101, West Java

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

02.07.1997

 

 

Com. Reg. No.:

AHU-19128.40.22.2014

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

·         Integrated Textile Industry

·         Coal Fired Power Plant Development

·         Investment Holding

 

 

No. of Employees :

7,360

 

 

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. INDO-RAMA SYNTHETICS Tbk

 

A d d r e s s :

Head Office and Factory I (Polyester and Spun Yarns Division)

Jalan Gajah Mada No. 197-198

Desa Kembang Kuning, Ubrug

Jatiluhur, Purwakarta 41101

West Java

Indonesia

Phones             - (62-264) 200235, 200845, 202311

Fax                   - (62-264) 201431

Land Area         - 18.5 hectares

Building Area    - 15,500 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory II (Fabric Division)

Jalan Raya Batujajar Km. 5.5

Batujajar, Bandung, 40561

West Java

Indonesia

Phones             - (62-22) 6866610 - 12

Fax                   - (62-22) 6865395, 6865317

Land Area         - 30,000 sq. meters

Building Area    - 25,500 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory III (Spun Yarns Division)

Jalan Raya Subang Km. 6

Cikumpay, Campaka

Purwakarta, 41181

West Java

Indonesia

Phones             - (62-264) 210213, 210520

Fax                   - (62-264) 210514

Land Area         - 400,000 sq. meters

Building Area    - 25,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Corporate Office

Graha Irama, 17th Floor

Jalan H.R. Rasuna Said X-1 Kav. 1 & 2

Jakarta Selatan, 12950

Indonesia

Phones             - (62-21) 5261555 (Hunting)

Fax                   - (62-21) 5261501, 5261502

E-mail               - corporate@indorama.com

Website            - http://www.indorama.com

Building Area    - 26 storey

Office Space    - 2,500 sq. meters

Region              - Commercial

Status               - Owned

 

Date of Incorporation :

a. 3 April 1974 as P.T. INDO-RAMA SYNTHETICS

b. 2 July 1997 as P.T. INDO-RAMA SYNTHETICS Tbk

 

Legal Form :

P.T. Tbk (Perseroan Terbatas Terbuka) or Public Listed Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

-  No. Y.A.5/2/14

   Dated 3 January 1975

-  No. AHU-17302.AH.01.02.TH.2008

   Dated 8 April 2008

-  No. AHU-AH.01.10-16680

   Dated 2 October 2009

-  No. AHU-36314.AH.01.02.TH.2011

   Dated 20 July 2011

- No. AHU-AH.01.10-01259

   Dated 10 January 2014

- No. AHU-19128.40.22.2014

   Dated 11 July 2014

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.001.680.6-054.000

 

The President of the Republic of Indonesia

No. B-22/Pres/2/1974

Dated 21 February 1974

 

The Capital Investment Coordinating Board

- No. 13/II/PMA/1981

  Dated 14 May 1981

- No. 21/II/PMA/1987

  Dated 22 April 1987

- No. 34/II/PMA/1987

  Dated 20 June 1987

- No. 130/II/PMA/1993

  Dated 12 November 2003

- No. 715/III/PMA/2003

  Dated 30 June 2003

 

Related Company :

A Member Company of the INDORAMA Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 244,849,324.-

Issued Capital                                 : US$ 160,217,573.-

Paid up Capital                               : US$ 160,217,573.-

 

Shareholders/Owners :

a. P.T. IRAMA INVESTAMA of Indonesia                           - US$ 78,507,263.-

b. HSBC FUNDS SERVICES CLIENTS                    - US$ 13,106,539.-

c. INDORAMA HOLDINGS (I) PTE, LTD., Singapore          - US$   3,204,273.-

d. Publics (Foreign and Domestic)                                   - US$ 65,399,498.-

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Integrated textile Industry

b. Coal Fired Power Plant Development

c. Investment Holding

 

Production Capacity :

Ubrug Factory

a. Polyester Cotton & Rayon Yarns

    (92,000 unit spindels)                   -        22,000 tons p.a.

b. Polyester Staple Fibre Chip

    and Filament Yams                      -        64,000 tons p.a.

c. Grey Fabrics                               -       12,000,000 mtrs p.a.

d. Nitrogen Gas                               -        5,616,000 cu.meter p.a.

e. PET Resins                                 -        78,840 tons p.a.

f.  Polyester and Spun Yarn             -        84,000 tons p.a.

g. Woven Yarns                              -        26,560 tons p.a.

h. Dyeing Yarns                              -          6,000 tons p.a.

i.  Spinning Yarns                            -          4,250 tons p.a.

j.  Finished Fabrics                          -        52,056,000 meters p.a.

k. Special Yarns                              -          7,800 tons p.a.

l.  Power Plant                                 -        2 x 30 MW

 

Campaka Factory

a. Spun Yarns (P/C/R/AC)                - 26,100 tons p.a.

b. Polyester Staple Fibre                      - 10,800 tons p.a.

c. Polyester Filaments                     - 36,100 tons p.a.

 

Bandung Factory

a. Yarns                                          -  8,160 tons p.a

b. Grey Fabrics                               - 40,000,000 meters p.a.

c. Textile Fabrics                             - 39,556,000 meters p.a.

 

Total Investment :                         

a. Equity Capital                              - US$ 160.2 million

b. Reinvested Profit                        - US$   54.1 million

c. Loan Capital                                - US$ 617.7 million

d. Total Investment                          - US$ 831.9 million

 

Started Operation :

1976

 

Brand Name :

Indo-Rama Synthetics

 

Technical Assistance :

None

 

Number of Employee :

7,360 persons

 

Marketing Area :

Local       - 65%

Export    - 35%

 

Main Customers :

a. Industrial Textiles

b. Buyers in Singapore, Japan, Australia, Europe Union, the USA, Middle East etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ASIA PACIFIC FIBERS Tbk

b. P.T. INDONESIA TORAY SYNTHETICS

c. P.T. INDORAMA POLYSTER INDUSTRY INDONESIA

d. P.T. INDORAMA VENTURE INDONESIA

e. P.T. TEIJIN INDONESIA FIBER Tbk

 

Business Trend :

Fluctuating

 

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank PAN INDONESIA Tbk

    Jalan Jend. Sudirman Kav. 55

    Jakarta Selatan

    Indonesia

b. P.T. Bank INTERNATIONAL INDONESIA Tbk

    Plaza BII, Jalan M.H. Thamrin No. 55

    Jakarta Pusat

    Indonesia

c. BANGKOK Bank

    Jalam M.H. Thamrin No. 3

    Jakarta Pusat

    Indonesia

d. AMERICAN EXPRESS Bank

    Jalan H.R. Rasuna Said Kav. X-5

    Jakarta Selatan

    Indonesia

 

Auditor :

Osman Ramli Satrio & Eny

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2011 – US$ 780.5 million

2012 – US$ 745.0 million

2013 – US$ 758.4 million

2014 – US$ 726.1 million

 

Net Profit :

2011 – US$ 10.3 million

2012 – US$   4.8 million

2013 – US$   3.2 million

2014 – US$   6.8 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Vishnu Swaroop Baldwa

Director                                          - Mr. Anupam Agrawal

 

Board of Commissioner :

President Commissioner                  - Mr. Sri Prakash Lohia

Vice President Commissioner          - a. Mrs. Seema Lohia

                                                        b. Mr. Amit Lohia

Commissioners                               - a. Mr. Humphrey R. Djemat, SH

                                                        b. Mr. Ir. Imam Sucipto Umar

 

Signatories :

President Director (Mr. Vishnu Swaroop Baldwa) or one of the Directors (Mr. Anupam Agrawal) which must be approved by Board of Commissioners

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. INDO-RAMA SYNTHETICS Tbk or abbreviated with trading style (P.T. INDR) was established in April 1974 in Purwakarta (West Java) with an authorized capital of US$ 2,000,000 and an issued capital of US$ 400,000 of which US$ 40,000 was paid up. The founders and original shareholders of the company were Mr. Lekhoomal Pahoomal Tolani (an Indonesian businessman of Indian descent), Mr. Budiantoro Hartono (an indigenous businessman) and RAMATEX Ltd. of Hong Kong. In 1988 the two local partners withdrew and were replaced by P.T. IRAMA UNGGUL, a national private company. In early 1990 the original foreign partner pulled out and was replaced by BROOKGRANGE INTERNATIONAL FINANCE Ltd. of the United Kingdom. In June 1990 P.T. INDR went public selling 23% of its shares on the Indonesian Stock Exchange (IEJ). In July 1997, the company’s authorized capital was increased to US$ 244,849,324 with the issued and paid up capital amounting to US$ 160,217,573 and concurently behind its name the words Tbk (listed company) is added to comply with regulation.

 

In June 2003, one of sister companies of P.T. INDR namely P.T. INDORAMA TECHNOLOGIES merged into P.T. INDO-RAMA SYNTHETICS Tbk (surviving company). Then according to the latest revision of notary deed Mrs. Novita Puspitarani, SH., no. 7 dated 8 July 2014 the company board of director and the board of commissioner re-elected. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-19128.40.22.1014 dated July 11, 2014. According to financial statement as per 31 December 2014 the latest composition of its shareholders has been changed to become P.T. IRAMA INVESTAMA (49.00%), HSBC Fund Services Clients (8.18%), INDORAMA HOLDINGS (I) PTE, LTD., Singapore (2.00%) and Public (Domestic & Foreign) of (40.82%). We note that P.T. INDO-RAMA SYSNTHETICS Tbk is a member of the INDORAMA Group based in India with its business network extending to South Asia, Asean and Europe.

 

P.T. INDO-RAMA SYNTHETICS Tbk or INDR operates under Foreign Invesment (PMA) facilities issued by Capital Investment Coordinating Board (BKPM) to deal with integrated spinning industry with its mill located on an 18.5 hectare landsite in Purwakarta. The corporate head office is located in Jakarta, where central functions are performed, such as procurement, logistics, finance, and marketing. The Company commenced production in 1976 with a cotton spinning mill in Purwakarta which steadily diversified and expanded its spinning business and added manufacturing of Polyester Filament Yarns, Polyester Staple Fibers, PET Resin, Polyester Chips, and Polyester Filament Fabrics production for global markets, with plants located in West Java (in Purwakarta, Campaka and Bandung), Indonesia and in Uzbekistan (of its subsidiary). The Company has been listed on the Indonesia Stock Exchange since 1990.

 

Initially, the company just managed two plant located in Kembang Kuning Village, Ubrug, Jatiluhur, Purwakarta, West Java on a land of 18.5 hectares and at Jalan Raya Batujajar Km. 5.5, Batujajar, Bandung, West Java. However, since the end 2003 by the merging of its sister company P.T. INDORAMA TECHNOLOGIES, the company has managed three plants in which one of which is located at Jalan Raya Subang Km. 6, Cikumpay, Campaka, Purwakarta, West Java. The three plants has been expanded several times to icnrease their annual production capacities. P.T. Indo-Rama Synthetics Tbk (INDR) is engaged mainly in the manufacturing of spun and blended yarns, polyester filament yarns (including microfilament yarns), polyester staple fibre, pet resin, textile grade chips and polyester fabrics (grey and finished), acquiring certain investments and generation of power for captive use.

 

The above plants has absorbed an investment of US$ 634.6 million coming from owned capital of US$ 32.8 million, reinvested profit of US$ 54.1 million and the rest from loans.

 

Indorama Synthetics is the maiden company of Indorama, which commenced commercial operations in 1976. It is one of the largest producers of polyester in Indonesia with a total manufacturing capacity of 280,000 tons per annum. The Company is listed on the Indonesia Stock Exchange. Indorama Synthetics is one of Indonesia’s largest exporters and has been a regular winner of the prestigious Primaniyarta award for its export performance. The company’s business is all about delivering superior quality, consistency and reliability with the right service every time. Indorama Synthetics is involved in the following activities:

 

·         Polyester

The polyester division accounts for over 60 percent of the company's revenue. Currently the company has capacity of 65,000 ton of PSF, 100,000 ton of PFY, and 115,000 ton of various grades of chips.

 

·         Spun Yarns

The division accounts for over 20 percent of the company's revenue. With capacity of 220,000 spindles and over 50 percent of its output being exported, the company is one of the largest exporters of spun yarn in Indonesia.

 

·         Fabrics

The company's currently installed capacity is 24 million meters per annum of grey fabrics and 42 million meters per annum of dyed and PFD fabrics.

 

·         Power Plant

In 2006, Indorama Synthetics set up a 60 MW coal based power plant (2 x 30 MW) to address its power requirements at its large complex in Purwakarta, Indonesia. Indorama Synthetics has consistently operated at high level of capacity utilisation, surpassing its peers both in Asia and globally. Indorama exports its products to over 90 countries covering all the five major continents across the globe. The facilities and infrastructure at its Purwakarta complex are unparalleled. The company has also built Rama International School in Purwakarta for children of its employees and from neighboring companies.

 

The corporate head office is located in Jakarta, where central functions are performed, such as procurement, logistics, finance, and marketing. The Company’s principal raw materials are PTA, MEG, Cotton, Rayon and Acrylic, which are sourced from global leaders. PTA and Rayon is principally sourced domestically with the remaining materials being imported. There is no constraint on availability of raw materials. The Company achieved its key targets set for 2012 despite the global uncertainty. The Company’s strong long term relationships with a large group of banks and financial institutions ensured availability of capital and its wide network of customers around the globe allowed it market its products to ensure smooth operations. The Company focused on operational excellence, market expansion, product development and cost reduction measures. There has not been any material impediment affecting the Company’s business.

 

The company exports some 65% to premium customers in North America, Europe, South America, Asia, Australia and the Middle East. A continuous process of reinvestment and productivity enhancement programs had made Indorama Synthetics into one of the most competitive producers of polyester worldwide.

 

Besides, P.T. INDR controls 42% shares of P.T. INDORAMA PETROCHEMICALS engaged in purified terephthalic acid (PTA) industry; 100% shares of ISIN INTERNATIONAL PTE. LTD., based in Singapore dealing with trading; 100% shares of INDORAMA INDUSTRY PTE. LTD., based in Singapore dealing with investment; and 76.00% shares of JV INDORAMA KOKAND TEXTILE LLC., Uzbekistant dealing with spun yarns manufacturing and 99.99% share of P.T. INDORAMA TRADE AND DEVELOPMENT SERVICES dealing with office and scholl building management. P.T. INDORAMA TRADE AND DEVELOPMENT SERVICES is engaged in the development and management of office and school building domiciled in Purwakarta, was established in 2012, and it is still in development stage.

 

P.T. INDR continues to focus on specialty products and services. Its products are exported to over 75 countries all over the globe and with such a large diversified market base, the Company is confident to market its output from existing plant as well as expansions. The Company’s principal products – Polyesters and Spun Yarns are on a consistent growth path. Global Polyester fiber demand grew by 7.5 % in 2012 and is projected to continue to increase at an annual average rate of 7.5 % over the next five years, far ahead of global GDP growth rates which aptly classifies this industry as a “growing industry”. The Company will continue to add production capacities at suitable opportunities in order to match the growing demand of Company’s products.

 

The 2013 outlook looks positive given the overall improvement in the North American markets and also in the European continent (despite the issue in Cyprus). The Company has implemented Good Corporate Governance principles with the appointment of Independent Commissioners, the Audit Committee and the Corporate Secretary. The Company has set up strong internal control systems and procedures to ensure that Company policies are complied with. The company has a team of professional managers to manage the various risks of the business in which the Company operates. P.T. INDR is classified as a large size company in the country dealing with textile industry of which the operation has been running smoothly in the last three years.

 

Polyester fiber is the most used synthetic fiber worldwide, with a market share of about 72%. In fact, not only is its production cost reasonably low, but it is also successfully used in many industrial and textile applications, as well as in the automotive industry. For many years, the world market for polyester fiber has enjoyed sustained annual growth rates of 7–9%. However, since mid-2008, consumption has significantly slowed, mainly as a consequence of the global economic recession. In 2008, world consumption of polyester fiber was about 1.8% less than in 2007. However, in 2009, world consumption recovered and was back to the 2007 level again, mainly as a result of Chinese consumption growth. In Europe, North America and Japan in 2008 and 2009, the market decreased by more than 15% annually; however, during the same period, consumption in China increased at a rate of over 4% per year. In the rest of the world, consumption decreases have mostly occurred, although of variable extent from region to region.

 

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 – 2013

 

Year

Polyester Staple Fiber (PSF)

Polyester Filament Yarns (PFY)

Nylon Yarns (NY)

2007

2008

2009

2010

2011

2012

2013

497715

500,670

505,674

515,680

529,700

556,000

583,800

715,000

670,000

674,000

680,000

700,000

725,000

761,250

16,360

17,443

18,556

19,740

21,000

32,000

33,600

 

According to the financial statement of P.T. INDR audited by a public accountant, total sales turnover of the company in 2010 amounted US$ 616.9 million with a net profit of US$ 25.9 million increased to US$ 780.5 million with a net profit of US$ 10.3 million in 2011 decreased to US$ 745.0 million with a net profit of US$ 4.8 million in 2012 increased to US$ 758.4 million with a net profit of US$ 3.2 million in 2013 decreased to US$ 726.1 million with a net profit of at least US$ 6.8 million in 2014. It is projected the sales turnover will be higher by at least 5% in 2015. The payment habit of 1 to 3 months is running smoothly. The company has never been black listed by Central Bank (Bank Indonesia) and registered at the count for determines cases. We observe that P.T. INDR is supported by the INDORAMA Group, a developing business group 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 financial statement as per 31 December 2010, 2012, 2013 and 2014 is shown.

 

The management of P.T. INDR is led by Mr. Vishnu Swaroop Badlwa (56) a professional manager with experienced in integrated textile mills. Mr. Vishnu Swaroop Baldwa serves as President Director of PT Indo-Rama Synthetics Tbk since December 20, 2013. He was Company's Corporate Secretary from 1996 to 2008, and Chief Financial Officer from 2008 to December 20, 2013. He is an honorary graduate in Commerce and is a qualified Chartered Accountant and Company Secretary. He has more than 28 years of experience in corporate finance, legal and commercial functions in various companies in Malaysia, India and Indonesia.

 

In his daily activities, he is assisted by Mr. Anupam Aggarwal (59) as director. However the prime mover is Mr. Sri Prakash Lohia (63), an Indian businessman with broad experienced in the above business. Mr. S. P. Lohia has a Bachelor of Commerce degree from the University of Delhi in 1971. He founded P.T. Indorama Synthetics along with his father, Mr. M.L. Lohia, in 1976. He has 36 years of experience in the industry and sits on the boards of various companies of the Indorama Group. P.T. INDO-RAMA SYNTHETICS Tbk is sufficiently fairly good for business transaction.

 

 

Attachment 1

 

PT. INDO-RAMA SYNTHETICS TBK

FINANCIAL STATEMENTS

Per 31 December 2011, 2012, 2013 and 2014

                                                                                                                                    

                                                                                                                      (In US Dollar)

DESCRIPTION

31 December

2014

2013

2012

2011

A.   ASSETS

 

 

 

 

a.  Current Assets

 

 

 

 

       - Cash and Cash Equivalent 

10,772,298

18,555,547

17,035,748

6,293,834

       - Other financial assets

44,607,902

45,453,837

44,847,140

61,277,902

       - Trade account receivable

 

 

 

 

         * Third parties

64,628,291

93,179,256

90,104,647

82,814,483

         * Related parties

3,003,468

1,610,075

3,804

868,944

       - Other account receivable

682,491

3,274,617

1,247,081

5,210,361

       - Inventories

126,493,433

119,595,789

111,737,028

104,637,692

       - Purchase advances

4,507,314

4,758,289

3,267,251

9,031,001

       - Prepaid taxes

  34,440,240

31,860,904

14,527,709

8,885,879

       - Prepaid expenses

1,190,268

1,199,669

1,628,514

1,229,629

       - Derivative assets

-

-

-

-

       Total Current Assets

290,325,701

319,487,983

284,398,922

280,267,725

b.    Non Current Assets

 

 

 

 

       - Investments in associates

27,440,053

32,258,609

43,914,347

46,334,878

       - Other financial assets

282,888

253,275

448,096

193,467

       - Fixed Assets - net

417,708,392

375,944,047

349,886,822

342,928,068

       - Advance for Assets Purchase

3,263,872

5,117,824

6,311,660

1,810,440

       - Guarantee deposits

2,139,694

1,859,147

1,953,312

2,056,642

       Total Non-current Assets

450,834,899

415,432,902

402,514,237

393,323,495

       TOTAL ASSETS

741,160,600

734,920,885

  686,913,159

673,591,220

B.  Liabilities & Stockholder’s Equity

 

 

 

 

a.    Current Liabilities 

 

 

 

 

       - Trade account payable

 

 

 

 

          * Related parties

12,833,133

13,113,604

5,609,152

2,053,202

          * Third parties

220,349,870

244,676,147

227,654,207

234,747,751

       - Other account payable

 

 

 

 

          * Third parties

2,576,715

2,546,621

4,308,446

5,648,433

          * Related parties

36,317

-

28,794

23,069

       - Tax payable

666,109

604,242

501,477

381,590

       - Accrued expenses

6,472,120

6,571,792

5,975,260

6,682,939

       - Short-term bank loans

12,538,000

7,749,740

-

-

       - Current maturities of long-term

 

 

 

 

          * Bank loans  

3,458,527

240,000

257,000

240,400

          * Finance leases

8,437,469

7,990,674

8,557,493

2,718,002

       - Derivative liabilities

1,189,216

2,481,230

581,763

1,192,661

       Total Current Liabilities

268,557,476

285,974,050

253,473,592

253,688,047

b.    Non Current Liabilities 

 

 

 

 

       - Long term liabilities

 

 

 

 

       - Deferred Revenue

1,381,905

1,465,236

1,548,567

1,631,898

          * Bank loans

124,483,913

103,980,401

84,371,942

84,362,930

          * Finance leases

4,405,015

6,288,511

14,217,508

4,056,524

       - Deferred tax liabilities

33,186,049

30,262,994

30,883,571

32,670,844

       - Post employment benefits

4,712,976

7,970,560

8,419,784

5,815,097

       - Long term derivative liabilities

744,452

2,052,731

295,118

147,014

       - Other payables

-

-

-

-

       Total Non Current Liabilities

168,914,310

152,020,433

139,736,490

128,684,307

c.    Stockholder’s Equity

 

 

 

 

       - Paid up capital

160,217,573

160,217,573

160,217,573

160,217,573

       - Additional paid-in capital

916,682

916,682

916,682

916,682

       - Retained earnings

 

 

 

 

         * Appropriated

15,475

14,475

13,475

12,475

         * Un appropriated

124,778,600

121,478,900

121,433,260

122,331,909

       - Other component equity

13,922,821

11,199,615

8,746,668

4,418,000

       - Non controlling interest

4,215,567

3,480,402

2,803,975

3,348,002

       Total equity

303,688,814

296,926,402

293,703,077

291,218,866

C.  INCOME STATEMENTS  

 

 

 

 

      a.  Sales – Net 

726,082,150

758,439,121

745,017,744

780,555,374

      b.  Cost of good sales

(650,841,539)

(694,428,420)

(695,227,997)

(740,970,549)

      c.  Gross profit

75,240,611

64,010,701

49,791,747

39,584,826

      d.  Income before tax

7,838,337

4,121,542

3,644,873

9,838,940

      e.  Tax expense-net

(3,799,697)

(3,351,323)

(2,681,696)

(2,064,033)

      f.  Other comprehensive income

2,723,206

2,452,947

4,328,668

2,579,062

     g.  Total Comprehensive Income

6,761,846

3,223,166

4,761,869

10,353,969

Notes: 31 December 2011, 2012, 2013 and 2014 Audited by Oesman Bing Satrio & Eny

 

 

Attachment 2

 

List of the INDORAMA Group Members

 

 

1.     ASHOK TEXTILE Industries, Ltd., Nepal (Textile Industry)

2.     AUTUM INVESTMENT Ltd., Hong Kong (Holding Company)

3.     BANGADUA PETROLEUM, P.T. (Oil & Natural Gas Exploration)

4.     BROOKGRANGE INTERNATIONAL FINANCE LTD., The U.K. (Financing Service)

5.     INDOMULIA MITRAJAYA, P.T. (Shrimp Culture)

6.     INDORAMA CHEMICALS (Thailand) Ltd., Thailand (Chemicals Manufacturing)

7.     INDORAMA NETHERLANDS BV., (Investment Holding)

8.     INDORAMA NETHERLANDS COOPERATIEF U.A. (Investment Holding)

9.     INDORAMA PETROCHEMICALS, P.T. (Purified Terephthalic Acid Manufaccturing)

10.  INDORAMA POLYCHEM INDONESIA, P.T. (Polymerization Resin Industry)

11.  INDORAMA POLYESTER INDUSTRIES INDONESIA, P.T. (Polyester Filament Yarn Industry)

12.  INDORAMA PROJECTS AND SERVICES Ltd., India (Consulting and Investment Holding)

13.  INDORAMA SYNTHETICS (India) Ltd., India (Chemicals Manufacturing)

14.  INDORAMA SYNTHETICS Tbk, P.T. (Spinning Mills and Investment Holding)

15.  INDORAMA TRADE AND DEVELOPMENT SERVICES, P.T. (General Trading)

16.  INDORAMA VENTURES INDONESIA, P.T. (Polyester Filament Yarn and Polyester Resin

      Industry)

17.  INDORAMA VENTURES PUBLIC LISTED LTD,. Thailand (Polyester Filament Yarn Industry)

18.  INDOSPECT ASIA PETROLEUM BANGADUA, P.T. (Oil and Gas Exploration and

      Production)

19.  IRAMA DINAMIKA LATEX, P.T. (Latex Goods Manufacturing)

20.  IRAMA UNGGUL, P.T. (Trading and Investment Holding)

21.  JAKARTA MAJU PUSAKA, P.T. (Trading and Suppliers)

22.  KARYA MITRA INDORAMA, P.T. (Health Clinic Services in Purwakarta)

23.  LOHIA INDUSTRIES PVT.,LTD., India (Investment Holding)

24.  MEDISAFE TECHNOLOGIES, P.T. (Latex Glove Manufacturing)

25.  MITRABANGUN GRIYA, P.T. (Office Block Rental Management)

26.  RAMATEX Ltd., (Hong Kong), (Investment Holding)

27.  SK WAHANA INTERNATIONAL, P.T. (Textile Industry)

28.  THONBURI LACE Co. ,Ltd., Thailand (Investment Holding)

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.84

UK Pound

1

Rs.101.04

Euro

1

Rs.73.05

Rupiah

1

Rs.0.0048

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


               

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.