MIRA INFORM REPORT

 

 

Report No. :

307115

Report Date :

13.02.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. GROWTH ASIA

 

 

Registered Office :

Jalan KL. Yos Sudarso Km. 10.5, Medan 20242, North Sumatra

 

 

Country :

Indonesia

 

 

Date of Incorporation :

03.11.1989

 

 

Com. Reg. No.:

AHU-AH.01.10-08638

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Iron and Steel Foundry

 

 

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 – 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

 


 

BASIC SEARCH

 

Name of Company :

P.T. GROWTH ASIA

 

A d d r e s s :

Head Office & Factory

Jalan KL. Yos Sudarso Km. 10.5

Medan 20242

North Sumatra

Indonesia

Phones   - (62-61) 6850206, 6850207

Fax                   - (62-61) 6850208

E-mail               - enquiry@growthasia.com

Website            - http://www.growthasia.com

Land Area         - 70,000 sq. meters

Building Area     - 43,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Jakarta Office

Komplek Puri Kencana

Jl. Kencana Elok Barat II Blok 1-9 No. 16

West Jakarta  - Indonesia

Indonesia

Phone               - (62-21) 5821517

Fax                   - (62-21) 5821518

 

GROWTH STEEL Australia Pty Ltd

Brisbane Office            Unit 2 – 1 Sesame Court
                                    Slacks Creek, QLD 4127
                                    Phone: +61 (0) 7 3208 9012
                                    Fax: +61 (0) 7 3290 1586
                                    Website: www.growthsteel.com


Newcastle Office          25 Halewood Close,
                                    Jewells, NSW 2280
                                    Phone: +61 (0) 2 4965 7736
                                    Fax: +61 (0) 2 4948 6039
                                    Website: www.growthsteel.com


Perth Office                 Suite 2, 13 Coolibah Way, Bibra Lake, WA 6163
                                    Phone: +61 (0) 8 9434 4733
                                    Fax: +61 (0) 8 9434 4645
                                    Website: www.growthsteel.com

 

PT. GROWTH ASIA

Johannesburg Office   No.9 Bigwood Avenue
                                                Libradene Boksburg 1459
                                                South Africa
                                    Phone: +27 11 913 3566
                                    Fax: +27 11 913 0317
                                    Website: www.growthsteel.com


Nanjing Office              Room 1508, Jinfeng Building,
                                    19 Zhongyang Road,Nanjing,
                                    Jiangsu, China

                                    Phone: 86-25-83176816
                                    Fax: 86-25-83176819
                                                Website: www.growthsteel.com

 

Date of Incorporation :

03 November 1989

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a.  No. AHU-21540.AH.01.02.Tahun 2008

      Dated 28 April 2008

  b.  No. AHU-AH.01.10-08638

      Dated 22 March 2011

 

Company Status :

Domestic Investment Company (PMDN)

 

Permits by the Government Department :

a.    The Department of Finance

      NPWP No. 01.516.375.1-123.000

 

b.   The Capital Investment Coordinating Board

      No. 359/I/PMDN/1990

      Dated 19 April 1990

 

Related/Affiliated Companies :

The GROWTH STEEL Group Members:

a. AGRO  JAYA  PERDANA, P.T. (Cassava Palletizing and Chip Manufacturing)

b. GROWTH ASIA, P.T. (Iron and Steel Foundry)

c. GROWTH PACIFIC, P.T. (Shrimp Culture and Cold Storage)

d. GROWTH SUMATRA  INDUSTRY LTD., P.T. (Steel Milling)

e. LUBUK NAGA, P.T. (Shrimp Culture)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                - Rp. 5,000,000,000.-

Issued Capital                      - Rp. 5,000,000,000.-

Paid up Capital                    - Rp. 5,000,000,000.-

 

Shareholders/Owners :

a. Mr. Fadjar Suhendra                           - Rp. 3,000,000,000.- (60%)

    Address : Jl. Taman Polonia II No. 27

                    Medan, North Sumatra

                    Indonesia                   

b. Mr. Sugih Suhendra                            - Rp. 2,000,000,000.- (40%)

    Address : Jl. Taman Polonia II No. 3

                    Medan, North Sumatra

                    Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Iron and Steel Foundry

 

Production Capacity :

a. Iron and Steel Casting            -   9,600 tons p.a.

b. Fabricated Steel Structures     - 12,000 tons p.a.

c. Machinery and Equipments     -   6,000 tons p.a.

d. Automotive Parts                    -   1,000 tons p.a.

e. Mining Machinery Parts          -   3,250 tons p.a.

 

Total Investment :

a. Equity Capital            - Rp.   5.0 billion

b. Loan Capital              - Rp. 17.4 billion

c. Total Investment         - Rp. 22.4 billion

 

Started Operation :

April 1990

 

Brand Name :

GROWTH ASIA

 

Technical Assistance :

None

 

Number of Employee :

360 persons

 

Marketing Area :

Export    - 30%

Local      - 70%

 

Main Customers :

a. Industry companies in Mining, Quarry, Rubber, Palm Oil, Cement, Power and Steel Mills

b. Overseas buyers in Asian, Australian, American, African and European Markets

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Baja Pertiwi Industri

b. PT. Jaya Pari Steel Tbk.

c. PT. Gunawan Dianjaya Steel Tbk

d. PT. Gunung Raja Paksi

e. PT. Maju Warna Steel

f.  PT. Metalina Tunggal

 

Business Trend :

Growing

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

    Jalan Jend. A. Yani 100

    Medan, North Sumatra

    Indonesia

b. P.T. Bank PERMATA Tbk

    Jalan Balaikota No. 10 A-P

    Medan, North Sumatra

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 330.0 billion

2012 – Rp. 365.0 billion

2013 – Rp. 408.0 billion

2014 – Rp. 460.0 billion

 

Net Profit (estimated) :

2011 – Rp. 16.5 billion

2012 – Rp. 18.2 billion

2013 – Rp. 20.3 billion

2014 – Rp. 22.9 billion

 

Payment Manner :

Fairly good

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mrs. Catherine Widjaja

Directors                                         - a. Mr. Sasioso

b. Mrs. Kolina

Marketing Manager                          - Mr. Ridwan Kusuma

 

Board of Commissioners :

President Commissioner                   - Mr. Fajar Suhendra

Commissioner                                 - Mr. Sugih Suhendra

 

Signatories :

President Director (Mrs. Catherine Widjaja) or one of the Directors (Mr. Sasioso and Mrs. Kolina) which must be approved by Board of Commissioners (Mr. Fajar Suhendra and Mr. Sugih Suhendra)

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. GROWTH ASIA (P.T. GA) was established in 1989 with the authorized capital of Rp. 5,000,000,000 of which Rp. 2,000,000,000 was issued and fully paid up. The founding shareholders of the company are Mr. Soe Tjoei, his wife Mrs. Joe A Kam and his four sons Mr. Fadjar Suhendra, Mr. Trisno Suhendra, Mr. Surya Suhendra and Mr. Sugih Suhendra, an Indonesian business family of Chinese extraction. However, in 1998 whole shares of P.T. GA were taken over by Mr. Fadjar Suhendra (60%) and his younger brother Mr. Sugih Suhendra (40%).  On April 2008, the issued and paid up capital was increased to Rp. 5,000,000,000.-.  This Articles of Association amendment was made by Susan Widjaja, SH., a public notaries in Medan and it was approved by the Minister of Law and Human Rights of the Republic of Indonesia by virtue of Decision Letter No. AHU-21540.AH.01.02.Tahun 2008 dated April 28, 2008 and No. AHU-AH.01.10-08638 dated March 22, 2011.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. GA is a member of the GROWTH STEEL Group or the GROWTH SUMATERA Group, a small sized company group being led by Mr. Fadjar Suhendra (66) and his younger brother Mr. Sugih Suhendra (59).  This company group focuses its activities in iron and steel casting, steel milling, shrimp culturing and cold storage, cassava palletizing and chips manufacturing.

 

P.T. GA is dealing with iron and steel foundry by managing a plant located in Medan Industrial Estate, Jalan Yos Sudarso Km. 10.5, Medan, North Sumatra on a land of 6 hectares. The plant produces irons and steel casting, fabricating steel structures, machinery and equipment, automotive parts and mining machinery parts. The plant is equipped with modern machinery and equipment like spectrometer, universal testing machines, digital hardness tester, ultrasonic flaw detector, a hug heat treatment plant and others.

 
In October 2013, P.T. GA obtains Primaniyarta Award as top performers exporters increase export volumes achievement and contribution to the value of foreign exchange generated annually. Primaniyarta is the highest recognition given by the Government through the Ministry of Trade Indoneia. Mr. Ridwan Kusuma, Manager Marketing of P.T. GA said that this time they develop new products such as rubber mill liners and grinding media with natural rubber raw materials to be used in the mining industry. Now, some 70% of the company products is sold locally especially to crumb rubbers and oil palms processing companies; gold, coal and copper mining companies and the rest of 30% is exported to Malaysia, Singapore, the Philippines, Australian, American, African and European Markets.  P.T. GA is classified as a large sized company of its kind in North Sumatra. The operation of the company has steadily been growing in the last three years.

 

Generally, Indonesia’s economic growth in 2013 showed a slower progress.  The decrease of mining and plantation related primary products have resulted in a higher current account deficit and suppressed the foreign exchanges.  Therefore, the Government and Bank Indonesia must took actions by forming new regulations, namely investment improvement.  These regulation supported by s strong domestic demand were able to boosted Indonesia’s economic growth to 5.8%, although this number was lower compared to 2012 growth, which reached 6.2%.  Rupiah exchange rate fluctuated in the last quarter of 2013 and was closed at a lower rate compared to 2012 rate.

 

The solid and steady domestic economy, increased government activity in infrastructure development and improving investment climate in Indonesia with the rising of Country Rating to Investment Grade, and also supported by Indonesia’s economic indicators such as inflation, exchange rates and interest rates are expected to encourage the business sectors.  The global economy is expected to grow faster in 2015 than it did in 2013 and 2014, although it still face risks stemming from the slowing economic growth in developed countries and the on going crisis in Europe.  Despite the slowing global economy, Indonesia’s economy still grew quite briskly in 2013.  Indonesia’s economic growth reached 5.8% in 2013, or slightly below the projection contained in the 2013 Revised State Budget and 2012’s economic growth of 6.2%.

 

 Indonesian Economic Indicators

  2009

  2010

  2011

  2012

  2013

Gross Domestic Product
   (annual percentage change)

   4.6

   6.1

   6.5

   6.2

   5.8

Consumer Price Index
   (annual percentage change)

   4.8

   5.1

   5.4

   4.3

   8.4

Government Debt  (percentage of GDP)

  28.6

  27.4

  26.6

  27.3

  28.7

Exchange Rate  (GBP / USD)

10,389

 9,074

 8,773

 9,419

11,500

Population  (in millions)

     -

 237.6

     -

     -

     -

Poverty  (percentage of population)

  14.2

  13.3

  12.5

  11.7

  11.5¹

Unemployment  (percentage of labor force)

   7.9

   7.1

   6.6

   6.1

   6.3

Reserves  (in billion USD)

  66.1

  96.2

 110.1

 112.8

  99.4

 

The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly. We have checked to Department of Trade and Industry and found that no financial statement has been reported. P.T. GA’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated that the total sales turnover of the company in 2011 amounted to Rp. 3300.0 billion increased to Rp. 365.0 billion in 2012 to Rp. 408.0 billion in 2013 and rose again to Rp. 460.0 billion in 2014.   It’s estimated the net profit of the company in 2014 amounted to Rp. 22.9 billion.  It is projected the sales turnover will be rising by at least 8% in 2015. The company has estimated total assets of at least Rp. 220.0 billion. 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.

 

The management of P.T. GSI is headed by Mrs. Catherine Widjaja (37) as president director and she is assisted by two directors namely Mr. Sasioso (39) and Mrs. Kolina (42).   But, we believe the prime-mover of the company is Mr. Fadjar Suhendra (68), a businessman with more than 38 years of experience in steel mills industry.   He is assisted by his younger brother Mr. Sugih Suhendra (61), both are the founding owners of the GROWTH STEEL Group.  The business reputation of the management in steel mills industry and trading is good. The management has wide relation overseas and national private businessmen as well as with the government sectors. So far, we did not hear that the management has been involved in business malpractice and detrimental cases being settled in the court. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.    P.T. GROWTH ASIA is appraised to be good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.43

UK Pound

1

Rs.95.02

Euro

1

Rs.70.63

 

 

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.