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MIRA INFORM REPORT
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Report No. : |
504401 |
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Report Date : |
24.04.2018 |
IDENTIFICATION DETAILS
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Name : |
PT. EXCELLENCE QUALITIES YARN |
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Formerly Known As : |
PT. ANSA QUALITIES YARN |
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Registered Office : |
Jl. Embong Trengguli No. 20-22, Kelurahan Embong Kaliasin, Kecamatan Genteng, Kota Surabaya 60271, Jawa Timur |
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Country : |
Indonesia |
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Financials (as on) : |
2017 [Summarized] |
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Date of Incorporation : |
28.03.2005 |
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Legal Form : |
Private Limited Liability Company or Perseroan Terbatas (PT) |
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Line of Business : |
·
Manufacture of textiles ·
Preparation and spinning of textile fibres |
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No. of Employees : |
250 [2018] |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Indonesia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
INDONESIA - ECONOMIC OVERVIEW
Indonesia, the largest economy in Southeast Asia, 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. Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to 33% today. While Fitch and Moody's Investors upgraded Indonesia's credit rating to investment grade in December 2011, Standard & Poor’s has yet to raise Indonesia’s rating to this status amid several constraints to foreign direct investment in the country, such as a high level of protectionism.
Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among its regions. President Joko WIDODO - elected in July 2014 – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, including significantly increasing its electrical power generation capacity. Fuel subsidies were significantly reduced in early 2015, a move which has helped the government redirect its spending to 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 has not yet materialized.
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Source : CIA |
COMPANY
IDENTIFICATION
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Company
Name
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PT.
Excellence Qualities Yarn ( Previous Name : PT. Ansa Qualities Yarn ) |
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Address |
Jl.
Embong Trengguli No. 20-22 |
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Telephone |
+62315355725,
+62315464662 |
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Fax |
+62315355724,
+62315464677 |
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Mobile
Phone
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N.A.
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Email |
office@excellence.co.id |
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Web |
www.excellence.co.id |
PROFILE
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Address |
Jl.
Embong Trengguli No. 20-22 |
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Office
Building
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Date
of Establishment
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Start
Operation
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2006
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Legal
Status
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Private
Limited Liability Company or Perseroan Terbatas (PT) |
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Legalization
(historical)
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No.
C-24435.HT.01.01.TH.2005 |
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Government
Permit (s)
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Direktorat
Jenderal Pajak |
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Significant
change
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Formerly named as PT. Ansa Qualities Yarn, the
Company was established on March 28, 2005, in Surabaya – East Java. On
October 7, 2010, the Company was renamed to become PT. Excellence Qualities
Yarn (the Company). Up to the completion of this report, however, we are
unable to obtain the establishment act of the Company. After several changes on the notarial
act, per August 8, 2011, the authorized capital of the Company amounted to
IDR 58,260 million, of which IDR 14,565 million was issued and paid up.
Meanwhile, the Company shareholders consisted of Ms. Sherlina Kawilarang
(60%) and Mr. Agus Nugroho Santoso (40%). On August 28, 2013, the Company published a
notarial act with the authorized capital increased to IDR 77,000
millions, of which IDR 70,000 million was issued and paid up. Meanwhile, the
shareholder structure consisted of Golden Textile Pte, Ltd of Singapore
(75.000%), Ms. Sherlina Kawilarang (15.000%) and Mr. Agus Nugroho Santoso
(10.000%). On July 25, 2016, the Company
published a notarial act with the authorized capital increased
to IDR 140,000 million, of which IDR 133,000 million was
issued and paid up. Meanwhile, the Company's shareholder structure remained
unchanged. As far as we know, there has been no more
change in the Company’s notarial act as published by the Ministry of Justice. |
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Capitalization
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SHAREHOLDERS
& MANAGEMENT
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Shareholders
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Total
No. of Shareholders: 3 |
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Name
of Shareholders
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Management
Board
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Name |
Mr.
Agus Nugroho Santoso |
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Position |
President
Director |
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Nationality
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Indonesian
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Name |
Mr.
Alexander Yunus Irwantono |
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Position |
Director
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Nationality
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Indonesian
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Supervisory
Board |
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Name |
Ms.
Sherlina Kawilarang |
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Position |
President
Commissioner |
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Nationality
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Indonesian
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Name |
Ms..
Dewi Handajani |
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Position |
Commissioner
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Nationality
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Indonesian
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Management
Assessment |
The
management is deemed to have sufficient experience and industry expertise to
manage subject properly. |
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Authorized
Signatories |
Mr.
Agus Nugroho Santoso as President Director and Mr. Alexander Yunus Irwantono
as Director which must be approved by shareholders meeting. |
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Affiliate
(s) / Associate (s) |
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KEY
DATA ON OPERATIONS
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Registered
Activities
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SIC
Code 13 : Manufacture of textiles |
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Employee |
Per
2017 |
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Business
Category |
SIC
Code 13.1 : Preparation and spinning of textile fibres |
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Line
of Business |
SIC
Code 13.10 : Preparation and spinning of textile fibres |
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Product
& Capacity |
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Cotton Yarns - 20,000 Bales per p.a |
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Status
of Investment |
Foreign-invested
Company |
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Sales
Territory
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Local
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30%
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International
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70%
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Main
Items Imported |
Textile
Machinery |
Germany |
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Main
Items Exported |
Yarn |
India |
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Major
Customers |
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Major
Supplier |
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Terms
of Payment |
Purchase
Payment |
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Activity
Comment |
Began the operation in 2006, PT. Excellence Qualities Yarn
(the Company) is a foreign-invested company that is engaged in textile
industry. The Company's head office is located at the registered address
Jl. Embong Trengguli No. 20-22 (not only No. 20), Kelurahan Embong Kaliasin,
Kecamatan Genteng, Kota Surabaya 60271, Jawa Timur - Indonesia. We believe
the location is leased by the Company. In addition, the Company also has a branch
located at the address Jl. Plaza Graha Family Blok D-8, Kelurahan Pradah Kali
Kendal, Kecamatan Dukuh Pakis, Kota Surabaya 60226, Jawa Timur - Indonesia.
Meanwhile, the factory is located at Dusun Luwung, Kelurahan Sumo Kembang Sri
, Kecamatan Balongbendo, Kab. Sidoarjo 61263, Jawa Timur - Indonesia. Based on the collected information, at
first, the Company was only engaged in the trading of textiles. The Company
exports its product to the international market. The Company started its
operation in 2006, and in June 2013 the Company started to produce its own
yarn in Indonesia. According to our source, the Company
has the capacity to produce 20,000 bales of cotton yarns per year. The
types of yarn products produced by the Company are, among other: viscose
rayon, viscose modal, viscose Tencel, polyester acrylic, and cotton. All of
these yarns are produced for single/double /triple. In the operation, the Company obtained
imported raw materials such as polyester filament import from China and also
from local suppliers. In addition, the Company is also supported with
machines and spare parts imported from Japan, Germany, and Switzerland such
as from Uster Technologies AG of Switzerland, Murata Machinery, Ltd
of Japan and Trutzschler GmbH & Co. of Germany. As said further by our source, the Company
trades its products in domestic market and also exports the products to some
international markets, such as India, Pakistan, USA, and Russia. Some of the
Company's customers are PT. Ramagloria Sakti Textile Industri, Ashraf
Impex Ltd., of Pakistan, Yasin Silk Mills Ltd., of Pakistan, Kc Tex
Inc., of USA, Neman Brothers & Associates Inc. of USA, and Nimish Syntex
Pvt. Ltd of India. Our source stated that in the domestic
market the Company is able to distribute 2,000 bales of cotton yarn per day.
Then, the rest is sent to the export market with the amount of 15,000 bales
per week. According to the source, the Company's
operational performance throughout 2015 to 2016 has increased amid the
slowdown of the textile industry. The Company can increase its sales even
though not significant since it continues to increase the number of
customers, especially overseas customers. Until the fourth quarter 2017, the Company
was still operating quite well despite the declining product sales due
to the decline in purchasing power as well, that causes some industry
sectors, one of them is the textile industry. Entering the first quarter of 2018, the
Company performance remains stable without experiencing any significant
issues. Therefore, it indicates that the Company is capable in managing the
risk well. Regarding the payment transaction, the
Company often receives delay payment from the customers. Nevertheless, the
Company can still pay on time to the suppliers. |
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Litigation
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At the time this report is written, this Company has
not been involved in any criminal or civil cases. This statement is based on
a result of searches for cases conducted at the State Court in the area,
where the Company was established and operates today. |
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Factory
Address |
Dusun
Luwung |
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Branch
Address |
Jl.
Plaza Graha Family Blok D-8 |
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BANKING
INFORMATION
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Banker
(s)
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Insurance
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BUSINESS
PROSPECTS
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Business
Prospects
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PT. Visi Globalindo Data Utama predicts that
the non-oil and gas manufacturing industry will only grow by 4.75% – 5.25% in
2018, or lower than the 5.67% growth targeted by the government. These
predicted figures are calculated based on the data issued by the Central
Statistics Bureau. After experiencing negative growth in the
past two years, the national textile and garment industry began to book
positive growth in 2017. Based on data from Central Statistics Bureau, this
export-oriented sector grew by 4.4% in Q3 2017. This positive performance is, among other,
as results of activities of a task force called "Task Force on Import of
High-Risk Goods" (Satuan
Tugas Penertiban Impor Barang Berisiko Tinggi), formed by the
government. The other influencing factors are the implementation of the
government’s fiscal and non-fiscal policies through some economy deregulation
packages to create a conducive investment climate for the sector. The
policies include a provision of fiscal incentives, in the form of tax
allowance and tax holiday. Referring to some influencing factors shown
above, PT. Visi Globalindo Data Utama predicts that in this year 2018, this
textile and garment sector will grow by around 3%, with an average export
growth of 11% per year. These figures could be even higher if the government
can secure the stability of the national economy. It is a fact that the textile and garment
industry is one of the priority sectors in the National Industrial
Development Master Plan or Rencana
Induk Pembangunan Industri Nasional (RIPIN) 2015- 2035. This
sector is expected to contribute significantly to the national economy. As
for the workforce, this sector is expected to absorb some 2.95 million
workers or increasing from 2.73 million workers absorbed last year. Based on the data shown above, we believe
that the textile industry and other supporting industry such as trading
machinery will have a better sales potential this year. |
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FINANCIAL
STATEMENT
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Sales
Turn Over
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2015
- IDR 208,725,000,000 (Estimated) |
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Total
Assets |
As
the Company is not a publicly listed company, we are unable to give a
detailed picture of the financial condition of the Company. |
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Other
Financial Data |
As
the Company is not a publicly listed company, we are unable to provide
details on the financial condition of the Company. |
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CREDITWORTHINESS
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Management
Capability
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Adequate
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Business
Morality
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Adequate
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Payment
Manner
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Slow
but correct |
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Financial
Condition
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Satisfactory
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Operating
Trend
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Up
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Conclusive
remarks
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Based on the collected
information, we learned that, currently, the Company is engaged in manufacturing
yarn products with the largest marketing to international markets such as
India, Pakistan, the USA. The Company has been operating since 2006. As we learned, the financial performance of
the Company was increasing in past three years in the midst of the
sluggishness of the local textile sector due to the Company continues to
increase the number of customers especially overseas customers. Meanwhile, looking at the textile industry
that has a great potential to grow and develop, we believe that the Company
is still prospective in the future. Based on the above considerations,
for now, we classify the credit rating at MEDIUM RISK. However, for security reasons, we advise
those wishing to make cooperation with or grant loans to the Company to seek
adequate collateral from the shareholders. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.22 |
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1 |
INR 92.84 |
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Euro |
1 |
INR 81.27 |
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IDR |
1 |
INR 0.0048 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.