MIRA INFORM REPORT

 

 

Report No. :

352325

Report Date :

09.12.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. LAXMIRANI MITRA GARMINDO

 

 

Registered Office :

Gedung Menara Era, 11th Floor, Unit 1101-1102, Jl. Senen Raya No. 135-137

Jakarta Pusat 10410

 

 

Country :

Indonesia

 

 

Year of Establishment :

2006

 

 

Legal Form :

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

 

 

Line of Business :

Subject is garment manufacturing

 

 

No. of Employee :

540

 

 

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

 

Company Name

 

P.T. LAXMIRANI MITRA GARMINDO

 

 

Address

 

 Head Office

Gedung Menara Era, 11th Floor, Unit 1101-1102

Jl. Senen Raya No. 135-137

Jakarta Pusat 10410

Indonesia

Phones             - (62-21) 351 1157 (hunting)

Fax.                  - (62-21) 350 8580

Email                - info@laxmi.co.id

Website            - http://laxmi.co.id

Building Area    - 15 storey

Office Space    - 280 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Kp. Tenjo Ayu, RT.02 / RW.01

Kecamatan Cicurug

Sukabumi 43349, West Java

Indonesia

Phones             - (62-266) 732 7001, 732 319

Fax.                  - (62-266) 732 717

Land Area         - 6,500 sq. meters

Building Area    - 4,200 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

2006

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a.  No. AHU-26393.AH.01.02.Tahun 2008

      Dated 19 May 2008

  b.  No. AHU-AH.01.10-23145

      Dated 11 June 2013

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance (Tax License No.)

NPWP No. 01.837.240.9-023.000

 

Related/Affiliated Company :

Not available

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 7,000,000,000.-

Issued Capital                                 - Rp. 7,000,000,000.-

Paid up Capital                               - Rp. 7,000,000,000.-

 

Shareholders/Owners :

a. Mr. Kishin Dayaram Melwani      - Rp. 4,200,000,000.- (60%)

    Address : Jl. Maluku No. 9-A

                    Central Jakarta Jakarta

                    Indonesia

 

b. Mr. Shashi Melwani                    - Rp. 2,800,000,000.- (40%)

    Address : Jl. Maluku No. 9-A

                    Central Jakarta

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Garment Manufacturing

 

Production Capacity :

Garments        -  2,400,000 pieces p.a.

 

Total Investment :

a.   Own Capital                    - Rp. 40.0 billion

b.   Loan Capital                   - Rp. 20.0 billion

c.   Total Investment             - Rp. 60.0 billion

 

Started Operation :

2007

 

Brand Name :

On the order basis

 

Technical Assistance :

None

 

Number of Employee :

540 persons

 

Marketing Area :

Export    - 100 % (USA, Australia and European Market)

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. LEADING GARMENT MFG

b. P.T. KUSHENDY ASRIBUSANA

c. P.T. KURNIA MANUNGGAL PERKSA

d. P.T. KARWELL INDONESIA

e. P.T. JAYA GARMENT SUKSES MAKMUR

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CENTRAL ASIA Tbk

      Gunung Sahari Branch

      Jl. Gunung Sahari No. 45

      Jakarta Pusat

      Indonesia

b.   P.T. Bank MANDIRI Tbk

      Ruko Segitiga Senen Blok E 21-22

      Jl. Senen Raya No. 135

      Jakarta Pusat

      Indonesia


Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 155.0 billion

2013 – Rp. 174.0 billion

2014 – Rp. 192.0 billion

2015 – Rp. 104.0 billion (January – June)

 

Net Profit (estimated) :

2012 – Rp. 10.5 billion

2013 – Rp. 11.8 billion

2014 – Rp. 13.0 billion

2015 – Rp.   7.0 billion (January – June)

 

Payment Manner :

Almost Promptly

 

Financial Comments :

Fairly

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Shashi Melwani

 

Board of Commissioner :

Commissioner                                 - Mr. Kishin Dayaram Melwani

 

Signatories :

Director (Ms. Shashi Melwani) which must be approved by the Board of Commissioner (Mr. Kishin Dayaram Melwani)

 

 

CAPABILITIES

 

Management Capability :

Fairly

 

Business Morality :

Fairly

 

 

OVERALL PERFOMANCE

 

P.T. LAXMIRANI MITRA GARMINDO (P.T. LMG) was established in 2006 in Jakarta.   However, we don’t know the amount of the company’s capital and initial shareholders.   The articles of association of the company have frequently been changed and the most recently by Notary Deed No. 01 dated May 16, 2013 was made by Johnsons Anthony Tanthio, SH., the authorized capital was raised to Rp. 7,000,000,000.- entirely was issued and fully paid up.  The shareholders of the company are Mr. Kishin Dayaram Melwani (60%) and Mr. Shashi Melwani (40%), both are Indonesian businessmen of Indian extraction.  This 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.01.10-23145 dated June 11, 2013.

 

P.T. LMG is a private company to deal with garment manufacturing such as; men shirts, sweat shirts, bottoms, knits and mix sets.   The plant located at Desa Tenjo Ayu, RT.02, RW.01, Cicurug district, Sukabumi, West Java, where it stands on a 6,500 square meters landsite. The plant has been in operation since 2007 with an installed production capacity of 200,000 pieces of garments per month.   Ms. Lestari, an administrative staff of P.T. LMG explained that the company entire products in the form of brassieres are exported particularly to USA, Australia and Europe countries. Their products are being offered to the global brands like NewYorker, Family Dollar Stores, Shopko, SeanJohn, Gymboree, LPP-Reserved, Landmark Group, Lolytogs, Animal, Mavi, Mustang, Russel Athletic, Walmart, Target/Australia and K-Mart/Australia. The brand-name of the company products is made based on order of buyers. We observed that P.T. LMG is classified as a medium sized company of its kind in the country of which the operation has been growing in the last three years.

 

Generally, the demand for garment including ladies under wear, textile chemicals, auxiliary, dyestuff and textile raw materials tended to be fluctuating within the last five years in line with the fluctuating of Indonesian textile industry in general.  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

Source:  Central Bureau of Statistic and *) as of January 2015

 

Until this time P.T.  LMG 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 2012 amounted to Rp. 155.0 billion increased to Rp. 174.0 billion in 2013 and rose again to Rp. 192.0 billion in 2014.  The operation in 2014, its estimated the company has yielded a net profit of at least Rp. 13.0 billion and the company has an estimated total assets at least Rp. 80.0 billion.  It is projected that total sales turnover of the company will increase at least 8% in 2015.  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. LMG's management is led by Mr. Shashi Melwani (41) a young businessman with more than 15 years experienced in garment manufacturing and trading.  Daily activity he is assisted by his father Mr. Kishin Dayaram Melwani (74) as commissioner.   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. LAXMIRANI MITRA GARMINDO is appraised to be good for business transaction. However, in view of the 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.66.80

UK Pound

1

Rs.100.49

Euro

1

Rs.72.52

IDR

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 :

ASH

 


 

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.