MIRA INFORM REPORT

Report No. :	306532
Report Date :	06.02.2015

IDENTIFICATION DETAILS

Name :	P.T. RAMAGLORIA SAKTI TEKSTIL INDUSRTI
Registered Office :	Jalan Embong Trengguli No. 22 Surabaya 60271 East Java
Country :	Indonesia
Date of Incorporation :	26.06.1989
Com. Reg. No.:	AHU-AH.01.10-30269
Legal Form :	P.T. (Perseroan Terbatas) or Limited Liability Company
Line of Business :	Spinning Mills
No. of Employee :	765

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. The government also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

Source : CIA

Company Name

P.T. RAMAGLORIA SAKTI TEKSTIL INDUSRTI

Address

Head Office

Jalan Embong Trengguli No. 22

Surabaya 60271

East Java

Indonesia

Phone - (62-31) 5464662 (Hunting), 5464663

Fax - (62-31) 5464677

E-mail - era@ramagloria.com

office@ramagloria.com

Website - http://www.ramagloria.com

Building Area - 2 storey

Office Space - 350 sq. meters

Region - Commercial

Status - Owned

Factory

Jalan Gunung Gangsir

Dusun Cangkringmalang, Kecamatan Beji

Pasuruan, 67154

East Java

Indonesia

Phone - (62-343) 656301 (Hunting)

Fax - (62-343) 656515

Land Area - 10 hectares

Region - Industrial Zone

Status - Owned

Date of Incorporation

a. 2 April 1987 as P.T. PRIMA SAKTI TEKSTIL

b. 26 June 1989 as P.T. RAMAGLORIA SAKTI TEKSTIL INDUSTRI

Legal Form

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

Company Reg. No.

The Ministry of Justice and Human Rights

- No. C2-5420.HT.01.04.TH.94

Dated 31 March 1994

- No. AHU-60287.AH.01.02.TH.2008

Dated 9 September 2008

- No. AHU-AH.01.10-30269

Dated 23 September 2011

Company Status

National Private and Domestic Investment (PMDN) Company

Permit by the Government Department

The Capital Investment Coordinating Board

- No. 362/I/PMDN/1989

Dated 12 June 1989

- No. 635/III/PMDN/1991

Dated 6 August 1991

- No. 16/II/PMDN/1992

Dated 7 December 1992

- No. 97/II/PMDN/1995

Dated 11 May 1995

Related Companies :

a. P.T. GLORIA RAMAYANA INTER HOTEL (Hotel Management)

b. P.T. GLORIARASA SAYANG INTER HOTEL (Hotel Management)

c. P.T. RAMA SHINTA JAYA TEKSTIL INDUSTRI (Spinning Mills)

d. P.T. SURYA JAYA INDAH TEXTILE (Textile Industry)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 157,000,000,000.-

Issued Capital : Rp. 126,000,000,000.-

Paid up Capital : Rp. 126,000,000,000.-

Shareholders/Owners :

a. Mrs. Wiwiek Hindriati - Rp. 63,000,000,000.-

Address : Jl. Jaksa Agung Suprapto No. 7, RT. 002

RW. 008, Kelurahan Ketabang, Kecamatan

Genteng, Surabaya, East Java

Indonesia

b. Mrs. Marcellina Kawilarang - Rp. 31,500,000,000.-

Address : Graha Family Block 1/31

Kelurahan Babatan, Wiyung

Surabaya, East Java

Indonesia

c. Mrs. Sherlina Kawilarang - Rp. 31,500,000,000.-

Address : Jl. Jaksa Agung Suprapto No. 7, RT. 002

RW. 008, Kelurahan Ketabang, Kecamatan

Genteng, Surabaya, East Java

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Spinning Mills

Production Capacity :

Cotton Yarns - 64,000 bales p.a.

Total Investment :

a. Equity Capital - Rp. 45.0 billion

b. Loan Capital - Rp. 49.4 billion

c. Total Investment - Rp. 94.4 billion

Started Operation :

1993

Brand Name :

RAMAGLORIA

Technical Assistance :

None

Number of Employee :

765 persons

Marketing Area :

Export - 70%

Local - 30%

Main Customer :

Buyers in Taiwan, South Korea, Philippine and Asian countries and textile industries in Indonesia

Market Situation :

Very Competitive

Main Competitors :

a. P.T. HAPETE

b. P.T. KITM INDONESIA TEXTILE MILLS

c. P.T. COATS REJO INDONESIA

d. P.T. SUNRISE BUMI TEXTILE

e. Etc

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank MANDIRI Tbk

Jalan Basuki Rachmat

Surabaya, East Java

Indonesia

b. P.T. Bank NEGARA INDONESIA Tbk

Jalan Basuki Rachmat

Surabaya, East Java

Indonesia

c. P.T. Bank DANAMON INDONESIA Tbk

Jalan Basuki Rachmat

Surabaya, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2012 – Rp. 273.0 billion

2013 – Rp. 285.0 billion

2014 – Rp. 302.0 billion

Net Profit (estimated) :

2012 – Rp. 21.8 billion

2013 – Rp. 22.8 billion

2014 – Rp. 24.2 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mrs. Sherlina Kawilarang

General Manager - Mr. Ravi Palav

Board of Commissioners :

Commissioner - Mrs. Wiwiek Hindriati

Signatories :

Director (Mrs. Sherlina Kawilarang) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability :

Satisfactory

Business Morality :

Satisfactory

OVERALL PERFORMANCE

Originally named P.T. RAMA SAKTI TEXTILE, it was established in Pasuruan, East Java in April 1987 with an authorized capital of Rp. 50,000,000 issued capital of Rp. 20,000,000.- wholly paid-up. Founders and original shareholders are Mr. Fransiskus Senduk and Mr. Samuel Mohamad Singgih, both are Indonesian businessmen of Chinese extraction. It’s articles of association has frequently changed. In June 1989, the company renamed to P.T. RAMAGLORIA SAKTI TEKSTIL INDUSTRI (P.T. RSTI) and the authorized capital was increased to Rp. 2,000,000,000 entirely issued and paid-up. On the same occasion, the company had been joined by new shareholders namely the late of Mr. Hartono Susilo Kawilarang and his wife Mrs. Harsono Susilo Kawilarang or Mrs. Annie Karmila. In December 1993, the authorized capital of P.T. RSTI was increased to Rp. 95,000,000,000 the issued capital to Rp. 45,000,000,000 wholly paid-up. Later of December 1998, the company was joined by new shareholders namely the sons and daughters of Mrs. Annie Karmila namely Mrs. Nancy Kawilarang, Mr. Billy Kawilarang, Mr. John Kawilarang and Mrs. Olivia Kawilarang. The latest according to the revision of notary deed Mrs. Siti Nurul Yuliani, SH., M.Kn., no. 60 dated 8 August 2011 the company authorized capital was raised to Rp. 157,000,000,000 issued capital to Rp. 126,000,000,000 fully and paid up. With this development the composition of its shareholders has been changed to become Mrs. Wiwiek Hindriati (50%) her daughters Mrs. Marcellina Kawilarang (25%) and Mrs. Sherlina Kawilarang (25%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-30269 dated September 23, 2011.

The major founder and owner of P.T. RSTI namely Kawilarang Family is also major founder and majority business stakes owners of several other companies among them are P.T. GLORIA RAMAYANA INTER HOTEL, P.T. GLORIARASA SAYANG INTER HOTEL, both are dealing with hotel management, P.T. RAMA SHINTA JATA TEKSTIL INDUSTRI dealing with spinning mills and P.T. SURYA JAYA INDAH TEXTILE dealing with textile industry.

P.T. RSTI obtained a Domestic Investment (PMDN) facility issued by Investment Coordinating Board (BKPM) for dealing with spinning mills whose plant is located at Jalan Gunung Gangsir, Dusun Cangkringmalang, Pasuruan Regency, East Java standing on 10.0 hectares land operating as from 1993. The plant has been expanded to step up its total production capacity. P.T. RSTI is a yarn manufacturers located at Desa Cangkringmalang-Pasuruan, East Java, Indonesia. The factory was established in the year 1994 and started with 1 plant only. But soon their market driven stance and customer oriented approach was rewarding them with increasing demand for their market. Today P.T. RSTI has total capacity of 85.000 spindles, producing 6000 bales (1.360.800 KG) of ring spun yarn per month. The mills built with brand new machineries and high technology laboratory equipment. One of P.T. RSTI's marketing staffs disclosed that around 70% of its products is exported to several countries among them are Taiwan, South Korea, Japan, Vietnam, the Philippines, China, the USA and others, and the rest is marketed to various weaving and knitting industries in East and Central Java.

P.T. RSTI Yarns Product Types

Ø 100% Polyester (PE)

Ø 100% Viscose (Rayon)

Ø 65% Polyester / 35% Viscose (TR)

Ø 50% Polyester / 50% Viscose (TR)

Ø 70% Viscose / 30% Polyester (RT)

Ø 100% Cotton Carded (CD)

Ø 100% Cotton Combed (CM)

Ø 65% Polyester / 35% Cotton Combed (TC)

In 1992, P.T. RSTI obtained a license from BKPM for dealing with garment manufacturing industry. P.T. RSTI plans to produce 19.0 million pieces of garments, blouse, shirts and lady's skirts per annum. But, the said plan has left unrealized to date. The sharp Rupiah depreciation against in US$ has brought good impact to the company because 45% of the product is exported. 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 retribution, textile and garment machinery restructuring cost and the rising prices of production components (oil fuel prices and electric base tariffs). We see the operation of P.T. RSTI has been growing slowly 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.

Indonesia is the 6th largest producer world to polyester with a production capacity of 1.4 million tons per year. Manufacturers of synthetic in Indonesia domestic market oriented, PSF and PFY 90% 65%. The main raw material 100% polyester is the PTA supplied the domestic industry and MEG supplied 30% of the domestic industry, 70% of imports. Caprolactam as raw material Nylon 100% imported. Demand for polyester textile raw materials in the country (Indonesia) is still high because organic textile raw material such as cotton is difficult to grow in Indonesia. So the polyester is still an option for the textile industry in Indonesia.

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

Until this time P.T. RSTI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. RSTI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2012 amounted to Rp. 273.0 billion increased to Rp. 285.0 billion in 2013 rose to Rp. 302.0 billion in 2014 and projected to go on rising by at least 5% in 2015. The operation in 2014 yielded an estimated net profit of at least Rp. 24.2 billion and the company has an estimated total networth of at least Rp. 165.0 billion. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.

P.T. RSTI's management is led by Mrs. Sherlina Kawilarang (44), a businesswoman with 20 years experience in spinning mills. The management is backed by a team of professional managers. They have wide relation with home and overseas private businessmen as well as with the government sector. In mid 1996, the owner of the company the late of Mr. Hartono Susilo Kawilarang was reported to East Java regional police for being accused of fraud, embezzling and counterfeiting related to the purchasing of yarns spinning machines from Japan. The late Mr. Hartono Susilo Kawilarang rejected to pay the rest payment worth Rp. 4.0 billion because the spinning machines did not suit to the order. However, he complained to Japan after the machines had been used for three years and the guarantee was expired. Considering the above negative factors surrounded P.T. RAMAGLORIA SAKTI TEKSTIL INDUSTRI, we recommend to treats extra prudent in any business transaction. In extending loan to the company, a guarantee from third party is highly recommended.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.87
UK Pound	1	Rs.94.07
Euro	1	Rs.70.19

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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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