|
|
|
MIRA
INFORM REPORT
|
Report No. : |
489359 |
|
Report Date : |
12.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
PT. TIRTA MAHAKAM RESOURCES TBK |
|
|
|
|
Formerly Known As : |
PT. TIRTA MAHAKAM PLYWOOD INDUSTRY TBK |
|
|
|
|
Registered Office : |
The Bellezza Shopping Arcade Building Lantai 20, JI. Letjen Soepeno No. 34 Permata Hijau Kelurahan Grogol Utara, Kecamatan Kebayoran Lama , Kota Jakarta Selatan 12210, DKI Jakarta - Indonesia |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Financials (as on) : |
30.09.2017 (unaudited) |
|
|
|
|
Date of Incorporation : |
22.04.1981 |
|
|
|
|
Legal Form : |
Public Listed Company or Terbuka (Tbk) |
|
|
|
|
Line of Business : |
·
Manufacture of wood and of products
of wood and cork, except furniture; manufacture of articles of straw and
plaiting materials ·
Wholesale trade, except of motor
vehicles and motorcycles |
|
|
|
|
No. of Employees : |
1,101 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
B |
|
Credit Rating |
Explanation |
Rating Comments |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
Status : |
Moderate |
|
|
|
|
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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
Indonesia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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.
|
Source
: CIA |
COMPANY IDENTIFICATION |
|
Company Name |
PT.
Tirta Mahakam Resources Tbk Tbk ( Previous Name : PT. Tirta Mahakam Plywood
Industry Tbk ) |
|
|
|
|
Address |
The
Bellezza Shopping Arcade Building Lantai 20, JI. Letjen Soepeno No. 34
Permata Hijau |
|
|
|
|
Telephone |
+622125675717 |
|
Fax |
+622125675714 |
|
|
|
|
Email |
info@tirtamahakam.com |
|
Web |
www.tirtamahakam.com |
PROFILE
|
Address |
The
Bellezza Shopping Arcade Building Lantai 20, JI. Letjen Soepeno No. 34
Permata Hijau |
||||||||
|
|
|
||||||||
|
Office Building |
|
||||||||
|
|
|||||||||
|
Date of Establishment |
|
||||||||
|
|
|
||||||||
|
Start Operation |
November 1983 |
||||||||
|
|
|
||||||||
|
|
|
||||||||
|
Legal Status |
Public Listed Company or
Terbuka (Tbk) |
||||||||
|
|
|
||||||||
|
|
|
||||||||
|
Legalization (historical) |
No.
Y.A 5/48/2 |
||||||||
|
|
|
||||||||
|
Government Permit (s) |
Presiden
Republik Indonesia |
||||||||
|
|
|
||||||||
|
Significant change |
Formerly named PT. Mahakam
Wood Industry, the Company was established on April 22nd 1981 in Jakarta.
Unfortunately, until the report is made, we have not managed to obtain the
Company's establishment act. On January 11th 1992, the
Company changed its name to become PT. Tirta Mahakam Plywood Industry.
Unfortunately, until the report is made, we have not managed to obtain the
notarial act. On November 18th 1999, the Company
changed its name to PT. Tirta Mahakam Plywood Industry Tbk. Again,
until the report is made, we have not managed to obtain the notarial
act. On June 29th 2004, the Company
was again renamed, being PT. Tirta Mahakam Resources Tbk. Again, we cannot
manage to obtain the revision act. As of December 31st 2013, the
Company's authorized capital was IDR 500,000,000,000 --of which IDR
126,471,843,750 was issued and paid-up capital by PT. Harita Jayaraya
(33.78%), Eton Assets Management Ltd. (28.32%), Crossback Ventures Ltd. of US
(17.00%), Koperasi Karyawan PT. Tirta Mahakam Plywood Industry (0.14%), KUD
Budi Rahayu (0.09%) and Public (20.67%). As of December 31st 2014, the
Company authorized capital was IDR 500,000,000,000 –of which IDR
126,471,843,750 was issued and paid-up capital by PT. Harita Jayaraya (34%),
Eton Assets Management Ltd. (28.32%), Crossback Ventures Ltd. of US (17.00%),
Koperasi Karyawan PT. Tirta Mahakam Plywood Industry (0.13%), KUD Budi Rahayu
(0.09%) and Public (20.46%). As of December 31st 2015, the
Company authorized capital amounted to IDR 500,000,000,000 --of which IDR
126,471,843,750 was issued and paid-up capital by PT. Harita Jayaraya (34%),
Eton Assets Management Ltd. (28.32%), Crossback Ventures Ltd. of USA
(17.00%), Koperasi Karyawan PT. Tirta Mahakam Plywood Industry (0.13%), KUD
Budi Rahayu (0.09%) and Public (20.46%). Per December 31st, 2016, the
shareholders consisted of PT. Harita Jayaraya (49.50%), Eton Assets
Management Ltd. (28.32%), Koperasi Karyawan PT. Tirta Mahakam Plywood
Industry (0.13%), KUD Budi Rahayu (0.09%) and Public (21.96%). Meanwhile the
capitalization structure remained unchanged. Per March 31st, 2017,
shareholders of the Company are PT. Harita Jayaraya (49.502%), Eton Assets
Management Ltd. (28.318%), Koperasi Karyawan PT. Tirta Mahakam Plywood
Industry (0.135%), KUD Budi Rahayu (0.090%) and Public (21.956%). Meanwhile
capitalization structure of the Company remains unchanged. Per September 30th, 2017,
capitalization and shareholder structure of the Company remains unchanged. |
||||||||
|
|
|
||||||||
|
Capitalization |
|
SHAREHOLDERS & MANAGEMENT
|
Shareholders |
Total
No. of Shareholders: 5 |
||||||||||
|
|
|||||||||||
|
Name of Shareholders |
|
||||||||||
|
|
|
||||||||||
|
Management Board |
|||||||||||
|
|
|
||||||||||
|
Name |
Mr. Djohan Surja Putra |
||||||||||
|
|
|
||||||||||
|
Position |
President Director |
||||||||||
|
|
|
||||||||||
|
Nationality |
Indonesian |
||||||||||
|
|
|
||||||||||
|
Name |
Mr. Irwan Santoso |
||||||||||
|
|
|
||||||||||
|
Position |
Director |
||||||||||
|
|
|
||||||||||
|
Nationality |
Indonesian |
||||||||||
|
|
|
||||||||||
|
Name |
Mr. Alan Budihardja Surya
Atmadja |
||||||||||
|
|
|
||||||||||
|
Position |
Independent Director |
||||||||||
|
|
|
||||||||||
|
Nationality |
Indonesian |
||||||||||
|
|
|
||||||||||
|
Supervisory Board |
|||||||||||
|
|
|
||||||||||
|
Name |
Mr. Lim Gunardi Hariyanto |
||||||||||
|
|
|
||||||||||
|
Position |
President Commissioner |
||||||||||
|
|
|
||||||||||
|
Nationality |
Indonesian |
||||||||||
|
|
|
||||||||||
|
Name |
Mr. Pohan Wijaya Po |
||||||||||
|
|
|
||||||||||
|
|
|
||||||||||
|
Position |
Independent Commissioner |
||||||||||
|
|
|
||||||||||
|
Nationality |
Indonesian |
||||||||||
|
|
|
||||||||||
|
Management Assessment |
The management is deemed to have sufficient experience and
industry expertise to manage subject properly. |
||||||||||
|
|
|
||||||||||
|
Authorized Signatories |
Mr. Djohan Surja Putra as President
Director of the Company or Mr. Irwan Santoso as Director and Mr. Alan
Budihardja Surya Atmadja as Independent Director which must be approved by
shareholders meeting. |
||||||||||
|
|
|
||||||||||
|
Affiliate (s) / Associate (s) |
|
KEY DATA ON OPERATIONS
|
Registered Activities |
SIC
Code 16 : Manufacture of wood and of products of wood and cork, except furniture;
manufacture of articles of straw and plaiting materials |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Number of Employee |
Per
September 30, 2017 - 1,101 employees |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Business Category |
SIC
Code 16.2 : Manufacture of products of wood, cork, straw and plaiting
materials |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Line of Business |
SIC
Code 16.21 : Manufacture of veneer sheets and wood-based panels |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Product & Capacity |
|
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Status of Investment |
Foreign-invested Company |
|||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
Sales Territory |
Local |
30% |
||||||||||||||||||
|
|
|
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
International |
70% |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
Main
Items Imported |
Oak
Wood |
USA |
||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
Main Items Exported |
Processing
Wood |
Japan |
||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Major Customers |
|
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Major Supplier |
|
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Terms of Payment |
Purchase
Payment |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Activity Comment |
PT. Tirta Mahakam Resources Tbk (the
Company) is a Foreign-invested Company that started operation in November
1983. The Company is engaged in industry and trading of plywood and related
products. Head office of the Company is located at The Bellezza Shopping
Arcade Building Lantai 20, JI. Letjen Soepeno No 34, Permata Hijau, Grogol
Utara, Kebayoran Lama Jakarta Selatan 12210 DKI Jakarta Indonesia. We believe
this location is leased from other parties. The Company owns an integrated wood processing factory, which
was built on total land area of 180,130 m2. The factory is located along the
Mahakam River, Desa Bukuan, Palaran Samarinda, East Kalimantan. Meanwhile,
its other factory is located in Gresik on total area 73,382 m2, precisely at
Jl. Raya Roomo 387, Kelurahan Roomo, Kecamatan Manyar, Gresik, East Java,
Indonesia. The Company also owns a branch office located at Jl. P. Antasari
No. 61, Kelurahan Teluk Lerong Ulu, Kecamatan Sungai Kunjang, Kota Samarinda
75127, Kalimantan Timur - Indonesia. As we learn, the Company’s primary products are Floor Base
Plywood, Fancy Wood. Meanwhile, the Company’s secondary products are, such
as, Home Base Panel, Concrete Panel, Special Bending Plywood, Block board and
Lumber Core. Next, major suppliers for the Company are PT. Roda Mas Timber
Kalimantan, PT. Kemakmuran Berkah Timber, PT. Harita Jayaraya, PT. Long Bagun
Putra, PT. Marsh Indonesia, PT. Karya Sumber Alam, etc. The Company supplies its products to the local and international
market. In present time, however, most of its products are exported. The
Company exports its products to Japan, Taiwan, Korea, Hongkong, China, United
States of America and Canada, such as to Sumisho & Mitsuibussan Kenzai
Co., Ltd. of Japan, Itochu Kenzai CoIDRoration of Japan, Sojitz Asia Pte Ltd
of Japan, Fengshan Lumber Co., Ltd of Taiwan, Japan Kenzai Co, Ltd of Japan,
Paveti GmbH of Germany, Ike Trading Co Ltd of USA, and Nissei Co, Ltd of
Japan. Moreover, the Company has capacity to produces Plywood (102,840
m3 p.a), Veneer (57,800 m3 p.a), Sawn Timber (20,976 m3 p.a), Sliced Fancy
Veneers (2,000 m3 p.a), Fancy Plywood (15,000 m3 p.a), Blockboard and Bare
Core (12,000 m3 p.a), Polyester Plywoods (24,000 m3 p.a), Moulding (15,000 m3
p.a), and Polyester Blockboard (18,000 m3 p.a). In 2016, the Company's ability to produce thin Plywood and
Polyester kept the Company's income before tax to reach IDR 37.1 billion, or
increasing from IDR 829 million in 2015. Meanwhile for Raw Plywood, its
performance in 2016 was far above 2015, especially with the gain on foreign
exchange in 2016, compared to the loss on foreign exchange suffered in 2015.
The net sales and the operating income grew stable. The sales of thin Raw
Plywood and Polyester gave positive results to the sales price in a whole. The Company's performance in 2016 relatively decreased, if
compared to 2015. The Company's gross profit was only IDR 154 billion or
decreasing from IDR 159.4 billion in 2015. Meanwhile the operating income was
IDR 50.4 billion, or decreasing from IDR 59.6 billion in 2015. The Raw Plywood sales in 2016 slightly decreased, causing a
decrease in gross profit. In 2016, the sales achieved IDR 843.5 billion
compared to IDR 852.7 billion in 2015. If compared to the sales volume target
in Annual Working Plane (AWP)-2016, that recorded 149,581 m3, the sales
volume realization of 107.439 m3 was only 72%. Meanwhile, the average sales
price stated in AWP 2016 was USD 604 per m3, while the sales price
realization was USD 590 per m3, or 2% below the AWP target. The sales value
was USD 63.3 million, or below the AWP target, which was USD 90.3 million, or
only 70% from target. Assets of the Company in 2016 totaled IDR 815,977 million or
increasing from USD 763,168 million in 2015. Meanwhile, liability of the
Company in 2016 was IDR 689,189 million or increasing from IDR 672,007
million in 2015. Next, equity of the Company in 2016 was IDR 126,808 million
or increasing from IDR 91,161 million in 2015. For 2017, the Company was targeted to book total sales of IDR
1,194,686 million, with the COGS of IDR 992,896 million. So, the Company
could gain gross profit of IDR 201,790 million, and net profit of IDR 84,941
million. In 2017, the Company allocated capital expenditure (capex) of about
IDR10 billion for reparation of production machines. The capex came from the
Company’s internal funds. On September 5, 2017, the Company signed agreement for the
selling of its land, building, and facility assets to PT. Mest Indonesia with
total value of IDR 65,000 million. To increase its sales, the Company has expanded the export
marketing territory to some countries, such as Japan, India, Australia,
Germany, the UK, Philippine, and USA. Yet, the Company has not set a plan for
taking expansion in domestic market. In 2017, the Company was targeting to
export 133,000 m3 of woods valued at USD 81,500,000 to Australia. It also
planned to export 225,000 m3 per month or about 2,700,000 m3 per year of all types
of polywood to Japan. Next, the Company also took product development and the use of
sengon woods as materials of blockboard. The product development would focus
on polyester products. For period of September 2016-August 2017, sales volume booked by
the Company comprised 4774,0075 m3 of Plywood, 651,6978 m3 of Sawn Timber,
267,7255 m3 of Blockboard, and 62,5669 m3 of Polyester Plywood and Coating.
Meanwhile, the total export sales for period of September 2016-August 2017
recorded 119,160.1428 m3. The Company’s net sales per January-September 2017 included IDR
439,191,841,890 for plywood, IDR 94,781,499,923 for polyester, and IDR
18,997,545,559 for blockboard. The total sales of plywood and blockboard
decreased, whereas sales volume of polyester increased, in line with the
development of polyester products conducted by the Company. In the same
period of 2016, the Company booked total sales of IDR 537,531,275,146 for
plywood, IDR 65,966,801,818 for polyester, and IDR 39,570,808,899 for
blockboard. Based on financial statement of the Company, we learn that sales
of the Company on third quarter of 2017 decreased by 14%, if compared to the
same period in 2016. Meanwhile the Company’s net profits dropped by 94.39%. Next, total asset of the Company decreased by 4.5%, while the
Company’s total debts increased by 6.1%. For additional information, the Company has applied K3
procedures on its business operation. The Company has also received ISO 9001
Quality Management System from SGS United Kingdom Ltd, Yarsley International
Certification Services, ISO 9001 – 2000 Certification, ISO 14000
Certification, Japan Agricultural Standards (JAS), Forest Stewardship Council
– Chain of Custody (FSC – COC), and California Air Resources Board (CARB)
Certification. Per September 30, 2017, the Company is supported by
approximately 1,101 employees. 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 search for cases conducted at the State Court in the district where the
Company was established and operational today. |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Factory Address |
Factory
Address 1 : |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Branch Address |
Jl.
P. Antasari No. 61 |
|||||||||||||||||||
BANKING INFORMATION |
|
Banker (s) |
|
||||||||
|
|
|
||||||||
|
Insurance |
|
BUSINESS PROSPECTS
|
Business Prospects |
Processed wood exports are not changed much in 2017. Even so,
the timber industry entrepreneurs are optimistic that sales will increase in
2018. Processed wood sales in 2017 to October amounted to USD 1.72 billion.
It is quite positive and can reach sales in 2016 amounting to USD 2 billion.
Processed timber sales will increase by 2018. It is estimated that the impact
of the Forest Law Enforcement, Governance and Trade (FLEGT) license has been
applied. The enforcement of FLEGT is assessed to improve the
competitiveness of Indonesian wood products because it is recognized as
coming from legal timber. In addition, the application of FLEGT will also
increase the price of these wood products. Even so the increase in sales is
influenced by the availability of raw materials. If raw materials from nature
can be met the sales will rise, but otherwise expected sales will be the same
as in last year 2017. Public forest products are considered unable to meet the needs
of the industry. The industrial wood processing needs up to 12 million cubic
per year. As is known, forest area currently reaches 126.08 million hectares,
and 55% or 68.99 million hectares is used as production forest, while 27.42
million hectares or 22% is used as conservation forest and 29, 67 million
hectare is used as protection forest. Of the total 68.99 million hectares of production forest, 29.25
million hectares are used as permanent production forests (Hutan Produksi),
26.80 million hectares of limited production forests and 12.94 million
hectares of convertible production forests. From the production or natural forest areas (upstream),
especially timber, are all directed to (downstream) to be utilized as a round
log for plywood industry, sawn timber, particle board, pulp and shale wood. Looking at the data and conditions above, we believe the timber
industry in Indonesia is still quite prospective. Certainly, however, raw
material factor becomes the determinant of the development of this sector, so
that the supply (for raw material) and government support are needed. |
FINANCIAL STATEMENT
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Financial Data |
Based on the Banking Facility Agreement No. 8/PFP-DBSI/2/12/2011
dated December 2, 2011 as amended several times with the most recent change
by the Sixth Amendment to Banking Facility Agreement No.
152/PFPADBSI/VIII/1-2/2017 dated August 25, 2017, the Company has got the
banking facility from PT Bank DBS Indonesia which is used to tranfer of
credit, amounting to USD 30,000,000 which consist of USD 27,000,000 as an
uncommitted revolving credit facility and USD 3,000,000 for import
activities. Interest rate is at 5,20%, borrowing period is for one year and
can be extended. The following is table of ratio of the Company:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CREDITWORTHINESS
|
Management Capability |
Good |
|
|
|
|
Business Morality |
Adequate |
|
|
|
|
Payment Manner |
Slow but Correct |
|
|
|
|
Financial Condition |
Satisfactory |
|
|
|
|
Operating Trend |
Down |
|
|
|
|
Conclusive remarks |
Based
on information shown above, we learn that the Company is engaged in industry
and trading of plywood and related products since November 1983. Major
suppliers of the Company are PT. Roda Mas Timber Kalimantan, PT. Kemakmuran
Berkah Timber, PT. Harita Jayaraya, PT. Long Bagun Putra, PT. Marsh
Indonesia, PT. Karya Sumber Alam, etc. Meanwhile, the Company supplies its
products to the local and international market. Mostly, however, the Company
serves major consumers in international market. In
term of performance, we learn that sales performance of the Company in the
third quarter of 2017 was decreasing by 14%, if compared to the same period
of 2016. Meanwhile the Company’s net profit was dropping by 94.39%. As
we learn from financial ratio, the Company is quite capable to meet its
short-term liability. Yet, the debt to equity ratio shows that their debts
are paid by the Company with long-term loans. Nevertheless,
we believe the Company is still prospective in the business. As we learn,
export of wood products from Indonesia has continuously increased, in line
with the increasing demand in international market, such as in Asia and
European Union. Regarding the business prospect, we believe the timber
industry in Indonesia is still quite prospective, and the government support
is certainly needed. Likewise, we believe the Company is still prospective. Based
on indicators shown above, we conclude that credit risk of the Company is
“medium to high” risk. For
security reason, we advise those wishing to make cooperation with and to
grant loans to the Company to ask for adequate collateral from the owners and
management. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.37 |
|
|
1 |
INR 89.71 |
|
Euro |
1 |
INR 78.89 |
|
IDR |
1 |
INR 0.0047 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRI |
|
|
|
|
Report Prepared
by : |
KET |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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.