MIRA INFORM REPORT

 

 

Report No. :

302196

Report Date :

13.01.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. KSB INDONESIA

 

 

Registered Office :

Kawasan Industri MM 2100, Cibitung, Jl. Timor Blok D2-1, Desa Mekarwangi

Cikarang Barat, Bekasi 17520, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

19.10.1993

 

 

Com. Reg. No.:

AHU-AH.01.10-15046

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Integrated Steel Milling and Particular & Equipment Manufacturing

 

 

No. of Employee :

220

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 & address

 

Name of Company :

P.T. KSB INDONESIA

 

Address :

Head Office & Factory

Kawasan Industri MM 2100, Cibitung

Jl. Timor Blok D2-1, Desa Mekarwangi

Cikarang Barat, Bekasi 17520

West Java

Indonesia

Phones             - (62-21) 8998 3570 (hunting)

Fax                   - (62-21) 8998 3571

Email                - ksbsales@ksb.com

Land Area         - 2.1 hectares

Building Space  - 1.8 hectares

Region              - Industrial Estate

Status               - Owned

 

Sales & Marketing Office

Cawang Kencana Building, Floor D Suite-D-02

Jl. Mayjend Sutoyo Kav. 22

Jakarta 13630

Indonesia

Phones             - (62-21) 8088 6509 (hunting)

Fax                   - (62-21) 8088 6504

Land Area         - 18 storey

Building Space  - 180 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

19 October 1993

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a.   No. C-3419.HT.01.01.TH.94

      Dated 30 May 1994

b.   No. AHU-35270.AH.01.02.Tahun 2010

      Dated 14 July 2010

c.   No. AHU-AH.01.10-15046

      Dated 27 April 2012

 

Company Status :

Foreign Investment Company (PMA)

 

Permits by the Government Department :

  a. The Department of Finance

      NPWP No. 01.070.757.8-413.001

 

  b. The Capital Investment Coordinating Board

      No. 3419/I/PMDN/1994

      Dated 30 May 1994

 

Related/Affiliated Company :

A member of the KSB Group of Germany

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital               - US$ 4,850,000.- (Rp. 14,408,500,000.-)

Issued Capital                     - US$ 4,850,000.- (Rp. 14,408,500,000.-)

Paid up Capital                   - US$ 4,850,000.- (Rp. 14,408,500,000.-)

 

Shareholders/Owners :

a. KSB FINANZ S.A. of Luxemburg - US$ 4,562,000.- (94.06%)

   Address : 37, Rue De La Gare 7535

                   Mersch - Luxemburg

                  

b. KSB AKTIENGESELLSCHAFT         - US$    288,000.- (  5.94%)

   Address : Johan-Klein Strabe 9,

                   Frankenthal, Germany

 

BUSINESS ACTIVITIES

 

Lines of Business :

Integrated Steel Milling and Particular & Equipment Manufacturing

 

Production Capacity :

a. Casting Products          - 5,000 tons p.a.

b. Pumps                         - 5,000 pieces p.a.

c. Valves & Accessories   - 20,000 pieces p.a.

 

Total Investment :

a. Equity Capital                  - US$. 4.85 million

b. Loan Capital                    - US$. 2.39 million

c. Total Investment              - US$. 7.24 million

 

Started Operation :

1996

 

Brand Name :

KSB INDONESIA

 

Technical Assistance :

KSB AKTIENGESELLSCHAFT of Germany

 

Number of Employee :

220 persons

 

Marketing Area :

Local                                                   - 40%

Export  - 60%

 

Main Customers :

a. Oil and Gas Industries

b. Mining Industries

c. Water Treatment Industries

 

Market Situation :

Very Competitive

 

Business Trend :

Growing

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank NEGARA INDONESIA Tbk

    Jl. Jend. Sudirman Kav. 1

    Central Jakarta

    Indonesia

a. DEUTSCHE Bank

    Jl. Imam Bonjol No. 80

    Central Jakarta

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – US$. 33.0 million

2012 – US$. 37.0 million

2013 – US$. 42.0 million

2014 – US$. 48.0 million

 

Net Profit (estimated) :

2011 – US$. 2.5 million

2012 – US$. 2.8 million

2013 – US$. 3.2 million

2014 – US$. 3.6 million

 

Payment Manner :

G o o d

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Rajeev Jayant Prasad Jain

Directors                                         - a. Mr. Primo Hendro Wirasto

                                                        b. Mr. Javed Umer

                                                        c. Mr. David Haliyanto

 

Board of Commissioners :

President Commissioner                  - Dr. Ir. Augus Lee Tjie Kiong

Commissioners                               - Mr. Werner Ludwig Robert Spiegel

 

Signatories :

President Director (Mr. Rajeev Jayant Prasad Jain) or one of the Directors (Mr. Primo Hendro Wirasto, Mr. Javed Umer or Mr. David Haliyanto) which must be approved by Board of Commissioners (Dr. Ir. Augus Lee Tjie Kiong or Mr. Werner Ludwig Robert Spiegel)

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

P.T. KSB INDONESIA was established in Jakarta, on October 19, 1993 with an authorized capital of US$ 3,200,000.- entirely was issued and fully paid up.  The founding shareholders of the company are P.T. UNITED TRACTORS of Indonesia (30%) and KSB AKTIENGESEELSCHAFT of Germany (70%).  The Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia through its Decree No. C-3419.HT.01.01.TH.94 dated 30 May 1994. The Company’s article of association has been amended for several times.  In 1998, P.T. UNITED TRACTORS withdrew and the whole shares are sold to KSB FINANZ S.A. of Luxembourg.  Since then, P.T. KSB INDONESIA became a full foreign direct investment company.

 

The most recently by notarial Deed No. 60 dated 30 March 2012 was made by Notary Rosliana, SH., the authorized capital was raised again to US$. 4,850,000.- entirely was issued and fully paid up.  Since then, the shareholders of the company are KSB FINANZ S.A. of Luxemburg (94.06%) and KSB AKTIENGESELLSCHAFT of Germany (5.94%).  The amendment to Deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-15046 dated 27 April 2012.

 

P.T. KSB INDONESIA was established within the framework of foreign investment (PMA), which has received permit from the Investment Coordinating Board (BKPM) in 1993 in the field of Integrated Steel Milling and Particular & Equipment Manufacturing.  Its plant is located at MM2100 Industrial Estate, Jalan Timor Blok D2-1, Desa Mekarwangi, Cikarang, Cibitung, West Java, on a land of 21,000 sq. meters.  P.T. KSB INDONESIA offers a wide range of services and activities, from providing solution based on specific application required and produce own pump set package, and additional services given through at site service for pump and valves and pump rental business. Other services and activities of P.T. KSB INDONESIA include; service provider for pumps and valves application, dewatering and dredge system, pump service and pump rental business. The factory and services sites are located in Cibitung, West Java, while the sales offices and representative are based in Jakarta, Balikpapan, Banjarmasin, Cilegon, Jambi, Lampung, Medan, Nusa Tenggara, Pekanbaru, palembang, Semarang, Surabaya, Batam and Tembagapura.  We observed that P.T. KSB INDONESIA 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.

 

In overall views we find the demand for integrated steel milling products such as steel casting products, pumps, valves and accessories has been rising by about 10% to 12% per year within the last five years, in line with the growth of various industrial sectors in the country.  It is estimated the rate of demand will be higher by at least 8% per year within the coming one-two years.  Market competition is very tight due to a large number of similar companies operating in the country. P.T. KSB INDONESIA in this case is not in critical position for it has already controlled a wide marketing chain among industrial manufacturers at home and overseas.

 

Until this time P.T. KSB INDONESIA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.   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.  We estimated that total sales turnover of the company in 2011 amounted to US$. 33.0 million increased to US$. 37.0 million in 2012 to US$. 42.0 million in 2013 and rose again to US$. 48.0 million in 2014.  The operation in 2014 yielded an estimated net profit of at least US$. 3.6 million and the company has an estimated total asset of at least US$. 26.0 million.   So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of P.T. KSB INDONESIA is headed by Mr. Rajeev Jayant Prasad Jain AKA Rajeev Jain (51) as president director, a professional manager of India.  He is a Mechanical Engineering and Master in management Science from India graduate has many years of experience in the field of growing and planning the business itself.  Before Mr. Rajeev Jain joined P.T. KSB INDONEISA, he has been working for KSB Group for more than 25 years in KSB India, KSB Korea, KSB Region Asia Pacific.  In his daily activities, he is assisted by three directors namely Mr. Primo Hendro Wirasto (46) of Indonesia, Mr. Javed Umer (53) of Pakistan and Mr. David Haliyanto (47) of Indonesia.  The management, which is evaluated quite creative and dynamic, also has succeeded in expanding their overseas marketing network.  The management is quite capable of further developing business in the future. They have close relations with many high-ranking government officials as well as with private businessmen within and outside the country. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

P.T. KSB INDONESIA is appraised to be good for business transaction. However, in view of the economic condition in the country is still unstable and slowdown, so we recommend to treat prudently in extending a loan to the company.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.16

UK Pound

1

Rs.94.28

Euro

1

Rs.73.73

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.