MIRA INFORM REPORT

 

 

Report No. :

492995

Report Date :

17.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

P.T. DUA SEKAWAN RESPATI

 

 

Formerly Known As :

P.T. DUA SEKAWAN RESPATI ENTERPRISES

 

 

Registered Office :

Jl. Nusantara X Block D No.35, Sunter Sacna, Jakarta 14350

 

 

Country :

Indonesia

 

 

Date of Incorporation :

04.01.1984

 

 

Com. Reg. No.:

AHU-AH.01.03-0086392

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturing of Garment.

 

 

No. of Employees :

395

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Good

 

 

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

 

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 less than 27 percent 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

 

Name of Company

 

P.T. DUA SEKAWAN RESPATI

 

 

Address

 

Head Office

Jl. Nusantara X Block D No.35,

Sunter Sacna, Jakarta 14350

Indonesia

Phone               - (62-21) 6530 6600 (hunting)

Fax.                  - (62-21) 6530 7700

Building Area    - 2 storey

Office Space    - 180 sq. meters

Region              - Commercial

Status               - Owned

 

Factories

  a.  Jl. Raya Tlajung Udik

      Gunung Putri, Cibinong 16962

      Bogor, West Java

      Indonesia

      Phones             - (62-21) 8671712, 8675504, 8675505

      Fax.                  - (62-21) 8671713

      Land Area         - 10,500 sq. meters

      Building Area    -   8,800 sq. meters

      Region              - Industrial Zone

      Status               - Owned

 

  b.  Jl. Siliwangi, RT.04, RW.07

      Desa Bangkong Reang, Kel. Benda

      Sukabumi, West Java

      Indonesia

      Phones             - (62-266) 737 926

      Fax.                  - (62-266) 737 927

      Land Area         - 13,600 sq. meters

      Building Area    - 10,200 sq. meters

      Region              - Industrial Zone

      Status               - Owned

 

 

Company summary

 

Date of Incorporation :

a. 04 January 1984 as P.T. DUA SEKAWAN RESPATI ENTERPRISES

b. 23 February 2001 as P.T. DUA SEKAWAN RESPATI

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C2-4820.HT.01.01.Th.85

    Dated 03 August 1985

b. No. C-18.369.HT.01.04.TH.2001

    Dated 05 November 2001

c. No. AHU-21499.AH.01.02.Tahun 2009

    Dated 19 May 2009

d. No. AHU-AH.01.10-33044

    Dated 15 August 2013

e. No. AHU-AH.01.03-0086392

    Dated 05 October 2016

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

No. 01.314.092.6-048.000

 

Related/Affiliated Companies :

a. P.T. RAVINDO BANGUNPERSADA (Property Development and Office Space Leasing)

b. P.T. RAVINDO JAYA (Financial Services and Real Estate Development)

c. P.T. BUMI PERTIWI LESTARI (Coal Mine Management and Commerce)

d. P.T. METAL GLOBALINDO (Trading and Distribution of Steel Products)

e. MONEX INVESTINDO FUTURES (Financial Partnership)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital               - Rp. 4,000,000,000.-

Issued Capital                     - Rp. 4,000,000,000.-

Paid up Capital                   - Rp. 4,000,000,000.-

 

Shareholders/Owners :

a. Mr. Manohar Lachmandas Nanwani     - Rp. 1,280,000,000.- (32%)

    Address :  Jl. Pangandaran II No.3B

                     North Jakarta

                     Indonesia

 

b. Mr. Amrit Chandarban Lakhiani           - Rp. 1,360,000,000.- (34%)

    Address :  Jl. Jambu No. 7

                     Central Jakarta

                     Indonesia

 

c. Mr. Mohandas Rajaram Lakshiani        - Rp. 1,360,000,000.- (34%)

    Address :  Jl. Jambu No. 7,

                     Central Jakarta

                     Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Garment Manufacturing

 

Production Capacity:

On the order basis

 

Total Investment :

a. Equity Capital         - Rp.   4.0 billion

b. Loan Capital           - Rp. 20.0 billion

c. Total Investment     - Rp. 24.0 billion

 

Started Operation :

1985

 

Brand Name :

DSR

 

Technical Assistance :

None

 

Number of Employee :

395 persons

 

Marketing Area :

a. Export    - 95%

b. Local     -   5%

 

Main Customers :

Overseas buyer in USA, United Kingdom, Australia and Singapore

 

Market Situation :

Very Competitive

 

Main Competitors :

c. PT. Ungaran Sari Garment

d. PT. Sri Rejeki Isman (Sritex)

e. PT. Busana Remaja Agracipta

f.  PT. Bintang Adi Busana

g. PT. Leading Garment Industry

h. PT. Metro Garment

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

  a.  P.T. Bank EKONOMI Tbk

      Jl. Sunter Agung Utara Raya Blok E No.3E-F

      Sunter Agung Podomoro

      North Jakarta

      Indonesia

  b.  The Hongkong and Shanghai Banking Corp

      Jl. Griya Utama, Komp. Puri Mutiara Blok A 93-95

      Sunter Agung Podomoro

      North Jakarta

      Indonesia

  c.  P.T. Bank DANAMON Tbk

      Jl. Danau Sunter Utara Blok B-1-B No.15-16

      Sunter Agung Podomoro

      North Jakarta

      Indonesia


Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2013 – Rp. 270.0 billion

2014 – Rp. 294.0 billion

2015 – Rp. 318.0 billion

2016 – Rp. 346.0 billion

2017 – Rp. 188.0 billion (January – June)

 

Net Profit (estimated) :

2013 – Rp. 17.5 billion

2014 – Rp. 19.0 billion

2015 – Rp. 20.5 billion

2016 – Rp. 22.4 billion

2017 – Rp. 12.2 billion (January – June)

 

Payment Manner :

No complaints

 

Financial Comments :

Fairly

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Manohar Lachmandas Nanwani

Director                                          - Mr. Lakhiani Tejbhan

 

Board of Commissioners :

Commissioner                                 - Mr. Mohandas Rajaram Lakhiani

 

Signatories :

President Director (Mr. Manohar Lachmandas Nanwani) or Director (Mr. Lakhiani Tejbhan) which must be approved by Board of Commissioner (Mr. Mohandas Rajaram Lakhiani)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

 

OVERALL PERFORMANCE

 

Originally named P.T. DUA SEKAWAN RESPATI ENTERPRISES, the company was established in Jakarta in January 1984 with an authorized capital of Rp. 100,000,000.- of which Rp. 40,000,000.- was issued and fully paid up.  The founding shareholders of the company are Mr. Ramesh Lachiram Nanwani (50%) and Mr. Ishwar Gopaldas Nanwani (50%), both Indonesian businessmen of Indian extraction. The Deed of establishment has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decision Letter No. C2-4820.HT.01.01.Th.85 dated August 3, 1985. The Articles of association of the company have frequently been revised.  In February 2001, the company’s name was changed to P.T. DUA SEKAWAN RESPATI.  Concurrently, the authorized capital was raised to Rp. 4,000,000,000.- of which Rp. 2,500,000,000.- was issued and fully paid  up.  Since at the time, the shareholders of the company are Mr. Chandarban Vasandmal Lakhiani (34%), Mr. Baiju Chelaram Kirpalani (34%) and Mr. Manohar Lacmandas Nanwani (32%). The amendment to notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. C-18.369.HT.01.04.TH.2001 dated November 5, 2001.

 

In February 2013 based on notarial Deed No. 6 dated February 26, 2013 made by Notary Surdjono Arham, SH., the issued capital was raised to Rp. 4,000,000,000.- entirely paid up.  Concurrently, Mr. Chandarban Vasandmal Lahiani pulled out and his shares are sold to Mr. Amrit Chandarban Lakhiani.  The amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-33044 dated August 15, 2013.  The most recently by notarial Deed of Dedy Pramono, SH., No. 01 dated September 5, 2016, concerning the change in composition of the Company’s board Directors.  This amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-AH.01.03-0086392 dated October 5, 2016. Since then, no changes have been effected in term of its shareholding composition and capital structure to date.

 

P.T. DUA SEKAWAN RESPATI (P.T. DSR) has been in operation since 1985 dealing garment manufacturing.  The company manages two plants are located on Jl. Raya Tlajung Udik, Gunung Putri, Cibinong, Bogor, West Java and Jl. Siliwangi, RT.04, RW.07, Desa Bangkong Reang, Sukabumi, West Java.  The plants have been expanded for a couple of times to increase its production capacity and the company produces garments (apparels) based on the buyer’s order. Ms. Kusumawati, a marketing staff of the company explained that the range of garments includes both Men's and Women's wears, children wears and causal shirts, blouses, pants, shorts, skirts, dresses, blazers and suits, sport wears, etc.  In addition, the Company caters to buyers such as Adidas, Jc Penney, Walmart, Target, Lollytogs, Sears, Dollar General and Family Dollar.  About 95% of the company’s products are exported to various countries while the USA, United Kingdom, Australia, Singapore and others. Meanwhile the rest of 5% is marketed locally among supermarket management and others.  We observed that P.T. DSR is classified as a medium-sized company of its kind in the country of which the operation had been running smoothly and growing steadily.

 

Generally, demand for textile and textile product including finished fabrics, garment, cotton yarn, polyester textured yarn, textile chemicals and raw materials has been fluctuating in the last five years.  According to the Central Bureau of Statistics (BPS) the Indonesia textile products export in 2002 amounted to 1,425.9 tons (US$ 3,075.9 million) to 1,307.5 tons (US$ 3,064.6 million) in 2003 to 1,300.4 tons (US$ 3,354.6 million) in 2004 to 1,427.3 tons (US$ 3,704.0 million) in 2005 to 1,477.800 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 declined to 1,312,200 tons (US$ 4,127.9 million) in 2008 to 1,369,600 tons (US$ 3,602.8 million) in 2009 to 1,525,900 tons (US$ 4,721.8 million) in 2010 declined to 1,493,3000 tons (US$ 5,563.3 million) in 2011 rose again to 1,508,500 tons (US$ 5,278.1 million) in 2012 to 1,633.1 thousand tons (US$ 5,293.6 million) in 2013 and to 1,815.6 thousand tons (US$ 5,379.9 million) in 2014 and dropped to 1,481.7 thousand tons (US$ 4,415.0 million) in 2015 and rose again to 1,563.9 thousand tons (US$.4,660.0 million) in 2016.  The export volume and value of the national TPT products in 2002 to 2016 are pictured on the following table.

 

 

Year

Textile Products

 

Garment

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

1,425.9

1,307.5

1,300.4

1,427.3

1,477.8

1,473.6

1,312.2

1,369.6

1,525.9

1,493.3

1,508.5

1,633.1

1,815.6

1,481.7

1,563.9

3,075.9

3,064.6

3,354.6

3,704.0

3,908.6

4,178.0

4,127.9

3,602.8

4,721.8

5,563.3

5,278.1

5,293.6

5,379.9

4,415.0

4,660.0

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

450.2

470.2

463.9

378.6

425.9

3,887.2

4,037.9

4,351.9

4,967.0

5,608.1

5,712.9

6,092.2

5,735.6

6,598.0

7,801.5

7,304.8

7,501.0

7,450.9

6,410.9

         7,212.6

 

Until this time P.T.  DSR 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. P.T. DSR’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover of the company in 2014 amounted to Rp. 294.0 billion increased to Rp. 318.0 billion in 2015 and rose again to Rp. 346.0 billion in 2016.   The operation in 2016 yielded a net profit at least Rp. 22.4 billion and the company has a total net worth of Rp. 176.0 billion.  It is projected that total sales turnover of the company will increase at least 8% in 2017.    So far we did not hear that P.T. DSR has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.  The company usually pays its debts punctually to suppliers.

 

The company’s management is headed by Mr. Manohar Lachmandas Nanwani (67) as President Director and CEO of the company. He is an Indonesian businessman of Indian descent with experience for 32 years in garment manufacturing and trading.  In daily activities, he is assisted by Mr. Lakhiani Tejbhan (59) as Director and Mr. Mohandas Rajaram Lakhiani (46) as Commissioner.  The company's management has wide relations in private business circles within and outside the country and in the ranks of high-ranking government officials as well.   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.

 

P.T. DUA SEKAWAN RESPATI is appraised to be good for business transaction.  However, in view of the economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 63.91

UK Pound

1

INR 90.31

Euro

1

INR 80.17

IDR

1

INR 0.0048

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

VAR

 

 

Report Prepared by :

NIT

                                                


 

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)

 

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.