MIRA INFORM REPORT

 

 

Report No. :

324944

Report Date :

05.06.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. KARYA SUMIDEN INDONESIA

 

 

Registered Office :

Jalan Industri VI, Kawasan Industri Jatake, Desa Pasir Jaya, Jatiuwung Tangerang, 15130, Banten Province

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

23.01.1998

 

 

Com. Reg. No.:

AHU-AH.01.10-36839

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Rolled Copper Wire Rod Industry

 

 

No. of Employees :

136

 

 

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 :

Slow but correct

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. President Joko WIDODO - elected in July 2014 - has emphasized domestic economic growth in his first few months in office and in November 2014 reduced fuel subsidies, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 


 

BASIC SEARCH

 

Name of Company :

P.T. KARYA SUMIDEN INDONESIA

 

A d d r e s s :

Head Office & Factory

Jalan Industri VI

Kawasan Industri Jatake

Desa Pasir Jaya, Jatiuwung

Tangerang, 15130

Banten Province

Indonesia

Phones             - (62-21) 5930 1678 (Hunting)

Fax                   - (62-21) 5930 1977

Land Area         - 35,000 sq. meters

Building Space  - 23,000 sq. meters

Region              - Industrial Estate

Status               - Rent

 

Date of Incorporation :

23 January 1998

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-3993.HT.01.01.TH.98

  Dated 22 April 1998

- No. AHU-69645.AH.01.02.TH.2008

  Dated 25 September 2008

- No. AHU-AH.01.10-08832

  Dated 13 April 2010

- No. AHU-AH.01.10-26362

  Dated 18 July 2012

- No. AHU-AH.01.10-36839

  Dated 5 September 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.824.613.2-415.000

 

 

The President of the Republic of Indonesia

No. B-229/Pres/6/1997

Dated 3 June 1997

 

The Capital Investment Coordinating Board

- No. 318/I/PMA/1997

  Dated 12 June 1997

- No. 57/III/PMA/1998

  Dated 19 January 1998

- No. 114/II/PMA/2000

  Dated 25 May 2000

- No. 998/III/PMA/2001

  Dated 30 July 2001

 

Related Companies :

a.   P.T. SUMIDEN SERASI WIRE PRODUCTS (Manufacture of Tire Bead Wire, Steel Cords and

      Fine Wire for Springs)

b.   P.T. SUMIDEN HARDMETAL MANUFACTURING INDONESIA (Design, Manufacture, Repair,

      and Sales of Cemented Carbide Tools)

c.   P.T. SUMIDEN POWDER METAL INDONESIA (Sales of Sintered Products and Cutting Tools)

d.   P.T. SUMIDEN SINTERED COMPONENTS INDONESIA (Manufacture of Sintered Products)

e.   P.T. SUMI INDO CABLE Tbk (Electric and Telecommunication Cable Manufacturing)

f.    P.T. SUMI INDO WIRING SYSTEMS (Manufacture and Processing of Wiring Harness)

g.   P.T. SUMITOMO ELECTRIC WIRE WINTEC INDONESIA (Manufacture of Magnet Wire)

h.   P.T. TAIYO SINAR RAYA TEKNIK (Design, Construction and Maintenance Work in

      Commercial, Industrial and Construction Projects)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 32,109,222.-

Issued Capital                                 : US$ 32,109,222.-

Paid up Capital                               : US$ 32,109,222.-

 

Shareholders/Owners :

a. SUMITOMO ELECTRIC INDUSTRIES LTD.                     - US$ 30,668,300.-

    Address : 5-33 Kitahama

                    4-Chome, Chou-Ku

                    Osaka, 541

                    Japan

b. P.T. SUMI INDO KABLE Tbk                                         - US$   1,440,922.-

    Address : Jl. Jend. Gatot Subroto Km. 7.8

                    Desa Pasir Jaya, Kecamatan Jatiuwung

                    Tangerang, Banten Province

                    Indonesia

 

 

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Rolled Copper Wire Rod Industry

 

Production Capacity :

Copper Wire Rods   - 230,400 tons p.a

 

Total Investment :

a.   Equity Capital                           - US$ 32.1 million

b.   Loan Capital                              - US$ 20.2 million

c.   Total Investment                        - US$ 52.3 million

 

Started Operation :

1998

 

Brand Name :

Karya Sumiden Indonesia

 

Technical Assistance :

Sumitomo Electric Industries Ltd., Japan

 

Number of Employee :

136 persons

 

Marketing Area :

Export    - 70%

Local       - 30%

 

Main Customer :

Buyers in Malaysia, China, Thailand, Japan

 

Market Situation :

Very Competitive

 

Main Competitors :

None

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   The Bank of TOKYO-MITSUBISHI UFJ Ltd.

      Midplaza Prima

      Jalan Jend. Sudirman Kav. 10-11

      Jakarta 10220

      Indonesia

 

b.   P.T. Bank SUMITOMO MITSUI INDONESIA

      Jala Jend. Sudirman Kav. 61-62

      Jakarta 12190

      Indonesia

c.   P.T. Bank MIZUHO INDONESIA

      Plaza BII Menara II

      Jalan M.H. Thamrin Kav. 51

      Jakarta Pusat

d.   P.T. Bank CENTRAL ASIA Tbk

      Menara BCA Grand Indonesia

      Jalan M.H. Thamrin No. 1

      Jakarta Pusat

      Indonesia

 

Auditor :

Purwantono, Suherman & Surja (Ernst & Young)

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (as per March) :

2011 – US$ 1,148.1 million (estimated)

2012 – US$ 1,162.5 million

2013 – US$ 1,235.6 million

2014 – US$ 1,310.0 million (estimated)

 

Net Profit (Loss):

2011 – US$ 4.4 million (estimated)

2012 – US$ 1.7 million

2013 – (US$ 1.2 million)

2014 – US$ 1.5 million (estimated)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Hiroyuki Matsuyama

Vice President Director                    - Mr. Raya Pontus Samosir

Directors                                         - a. Mr. Kazuhiro Nanjo

                                                        b. Mr. Palgunadi Budiono

                                                        c. Mr. Minoru Nakamoto

                                                        d. Mr. Yutaka Nishide

 

Board of Commissioners :

President Commissioner                  - Mr. Takahiro Nakano

Commissioners                               - a. Mr. Sulim Herman Limbono

                                                        b. Mr. Hiroshi Shikata

 

Signatories :

President Director (Mr. Hiroyuki Matsuyama) or Vice President Director (Mr. Raya Pontus Samosir) or one of the Directors (Mr. Kazuhiro Nanjo, Mr. Palgunadi Budiono, Mr. Minoru Nakamoto or Mr. Yutaka Nishide) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. KARYA SUMIDEN INDONESIA (P.T. KSI) was established in January 1998 in Jakarta with an authorized capital of US$ 14,409,222 wholly issued and paid-up. Founders and shareholders are SUMITOMO ELECTRIC INDUSTRIES, LTD., of Japan as the foreign participant and P.T. SUMI INDO KABEL Tbk (Ex P.T. IKI INDAH KABEL INDONESIA Tbk.), as the local counterpart. Its articles of association had been changed and in January 2000 the authorized capital was raised to US$ 29,409,222 wholly issued and paid up. Then in August 2008 the company authorized capital was increased to US$ 32,109,222 wholly issued and paid up. With this development the composition of its shareholders has been changed to become SUMITOMO ELECTRIC INDUSTRIES LTD., (95.51%) and P.T. SUMI INDO KABEL Tbk (4.49%). Then according to the revision of notary documents of Mr. Ashoya Ratam, SH., No. 07 dated 21 August 2013 the board of director and the board of commissioner had been changed (see profile of this report). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-36839 dated September 5, 2013.

 

The majority business stakes of P.T. KSI is controlled by SUMITOMO ELECTRIC INDUSTRIES, LTD., of Japan who is also majority business stakes owner of P.T. SUMI INDO KABEL Tbk which in December 1990 released 15.6% shares to the public through the Jakarta Stock Exchange (P.T. BEI).

 

P.T. KSI acquired a Foreign Investment (PMA) license issued by Capital Investment Coordinating Board (BKPM) for dealing with manufacturing rolled copper wire rod by taking over the P.T. SUMI INDO KABEL Tbk's rolled copper wire rod unit in January 1998. The above unit is standing on 40,000 sq. meters land with right of building located in Desa Pasir Jaya, Jatiuwung Sub-district, Tangerang (West Java), including tangible and intangible assets such as factory buildings, machinery, spare  parts and other equipments. The plant has a capacity to produce 50,400 tons of rolled copper wire rods per annum. The factory development absorbed an investment of US$ 20.6 million originated from own capital of US$ 14.4 million while the rest from loan. The basic materials including pure copper rod, aluminum alloy rod are partly imported through SUMITOMO ELECTRIC INDUSTRIES, LTD., of Japan and partly obtained from P.T. SMELTING & COPPER. Mrs. Tintje Marketing Executive disclosed that all products are directly supplied to P.T. SUMI INDO KABEL Tbk, P.T. EWINDO, P.T. VOKSEL ELECTRIC, P.T. KMI WIRE & CABLE Tbk, P.T. AUTOCOMP SYSTEMS INDONESIA, P.T. PRYSMIAN CABLE INDONESIA, P.T. JJ LAPP CABLE SMI and others. In May 2000 P.T. KSI acquired an expansion permit to increase production capacity of copper wire rods to 180,000 tons with an investment of US$ 29.0 million coming from company's capital of US$ 15.0 million and the remainder from loan. The whole products of this expansion plant is exported to Asian countries through SUMITOMO ELECTRIC INDUSTRIES of Japan the largest electric wire producer in Japan having controlled marketing network in Asian countries. The expansion is made due to a rapid rising demand from automotive and electronic industries. We observe the operation of P.T. KSI has been growing and developing well in the last three years.

 

Starting in the second semester 2008, many markets in various parts of the world experienced adverse economic condition. This condition was triggered by, amongst others, the housing and mortgage loans crisis in the United States of America (US) that spread to securities, structures products and commodity markets. The volatility in the US markets coupled with the sharp appreciation in the US Dollars and a series of corporate bankruptcies and takeovers enabled the crisis to spread to other parts of the world. The impact of the global economic crisis has also been felt in Indonesia as the Indonesian Rupiah weakened, demand decrease, commodity prices decreased, securities market declines, interest rate increased, followed by decreases, tightened liquidity conditions, and increased credit risks. Up to this time, the Company has not significantly suffered from the economic crisis. In response to these economic events, during 2010 the Company has plans as follows: Negotiation with main customer regarding increasing selling price. Cost reduction in business trip, pantry needs, technical support cost from Japan, etc. Stop production of products which do not reach profit target. Reduction finishing cost and transportation cost.. Improvement of internal production such reducing product, increasing cycle time and increasing machine running time. In spite of the adverse economic conditions, management believes that the Company will be able to continue operating as going concern for the foreseeable future.

 

According to financial statement which ended 31 March 2010 (One year) amounted at US$ 976.6 million with a net profit of US$ 3.3 million. As from January – March 2011 (three months) the sales turnover amounted at US$ 287.2 million with a net profit of US$ 1.1 million and rose to US$ 1,162.5 million in April 2011 – March 2012 (One year) with a net profit of US$ 1.7 million increased to US$ 1,235.6 million with a net loss of US$ 1.2 million in 2013. We estimated the sales turnover of the company is 2014 amounted at US$ 1,310.0 million with a net profit of at least US$ 1.5 million. It is projected the sales turnover will be rising by at least 6% in 2015. We observe that P.T. KSI is supported by foreign partner 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 company usually pays its debts punctually to suppliers. The condense financial statement is shown.

 

 

(In US Dollar)

 

Descriptions

April 2012-March 2013

Jan-March 2012

Jan – March 2011

A.  ASSETS

 

 

 

a. Current Assets

167,559,238

152,287,565

143,069,452

b. Non Current Assets

30,316,732

30,133,932

25,581,279

c. Other Assets

13,003

30,551

24,581

TOTAL ASSETS = TOTAL

LIABILITIES & EQUITY

197,875,970

182,421,497

168,650,731

B. LIABILITIES

    &STOCKHOLDERS EQUITY

 

 

 

a. Current Liabilities

168,006,068

150,543,486

136,419,261

b. Non Current Liabilities

787,446

1,114,081

969,887

c. Stockholders Equity :

    - Paid Up Capital

    - Retained Earnings

Total Stock holders Equity

 

32,109,222

495,576

29,082,456

 

32,109,222

962,704

30,763,930      

 

32,109,222

1,460,357        

31,261,583

C. INCOME STATEMENT

 

 

 

a. Sales Net

1,235,613,929

1,162,520,426

287,211,334

b. Operating Profit

(458,527)

3,396,033

1,482,676

c. Net Profit (loss)

(1,214,346)

1,731,276

1,106,679

Notes: 31 March 2011, 2012 and 2013 audited  by Purwantono, Suherman & Surja (Ernst & Young)

 

 

The management of P.T. KSI is led by Mr. Hiroyuki Matsuyama (54) a professional manager of Japan with experience in rolled copper wire manufacturing and trading. Daily activity the company is also assisted by Mr. Raya Pontus Samosir (54) as Vice President Director, Mr. Kazuhiro Nanjo (51), Mr. Palgunadi Budiono (53) and Mr. Minoru Nakamoto (42) and Mr. Yutaka Nishide (54) as Directors. The company's management is handled by professional staff in the above business. 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. We are convinced P.T. KARYA SUMIDEN INDONESIA is sufficiently fairly good for business transaction.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.17

UK Pound

1

Rs.98.30

Euro

1

Rs.72.25

 

 

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%)

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