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MIRA INFORM REPORT
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Report No. : |
484623 |
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Report Date : |
10.01.2018 |
IDENTIFICATION DETAILS
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Name : |
P.T. INDO-RAMA SYNTHETICS TBK |
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Registered Office : |
Jalan Gajah Mada No.
197-198, Desa Kembang Kuning, Ubrug, Jatiluhur, Purwakarta 41101, West Java |
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Country : |
Indonesia |
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Date of Incorporation : |
03.04.1974 |
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Com. Reg. No.: |
AHU-AH.01.03-0182272 |
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Legal Form : |
P.T. Tbk (Perseroan
Terbatas Terbuka) or Public Listed Company |
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Line of Business : |
·
Integrated Textile Industry ·
Coal Fired Power Plant Development ·
Investment Holding |
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No. of Employees : |
7,844 |
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 : |
Foreign investment company |
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Payment Behaviour : |
No Complaints |
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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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
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 |
|
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. INDO-RAMA
SYNTHETICS Tbk
Address
Head Office and
Factory I (Polyester and Spun Yarns Division)
Jalan Gajah Mada No.
197-198
Desa Kembang Kuning,
Ubrug
Jatiluhur, Purwakarta 41101
West Java
Indonesia
Phones -
(62-264) 200235, 200845, 202311
Fax - (62-264) 201431
Land Area - 18.5 hectares
Building Area - 15,500 sq.
meters
Region - Industrial
Zone
Status - Owned
Factory II (Fabric
Division)
Jalan Raya Batujajar Km. 5.5
Batujajar, Bandung, 40561
West Java
Indonesia
Phones -
(62-22) 6866610 - 12
Fax - (62-22) 6865395, 6865317
Land Area - 30,000 sq.
meters
Building Area - 25,500 sq.
meters
Region - Industrial
Zone
Status - Owned
Factory III (Spun
Yarns Division)
Jalan Raya Subang Km. 6
Cikumpay, Campaka
Purwakarta, 41181
West Java
Indonesia
Phones -
(62-264) 210213, 210520
Fax - (62-264) 210514
Land Area - 400,000 sq.
meters
Building Area - 25,000 sq.
meters
Region - Industrial
Zone
Status - Owned
Corporate Office
Graha Irama, 17th
Floor
Jalan H.R. Rasuna
Said X-1 Kav. 1 & 2
Jakarta Selatan,
12950
Indonesia
Phones -
(62-21) 5261555 (Hunting)
Fax -
(62-21) 5261501, 5261502
E-mail - corporate@indorama.com
Website -
http://www.indorama.com
Building Area - 18 storey
Office Space -
250 sq. meters
Region -
Commercial
Status -
Owned
Company
summary
Date of Incorporation
:
a. 3 April 1974 as
P.T. INDO-RAMA SYNTHETICS
b. 2 July 1997 as
P.T. INDO-RAMA SYNTHETICS Tbk
Legal Form :
P.T. Tbk (Perseroan
Terbatas Terbuka) or Public Listed Company
Company Reg. No. :
The Ministry of Law and Human Rights
- No. Y.A.5/2/14
Dated 3 January 1975
- No. AHU-17302.AH.01.02.TH.2008
Dated 8 April 2008
- No. AHU-AH.01.10-16680
Dated 2 October 2009
- No. AHU-36314.AH.01.02.TH.2011
Dated 20 July 2011
- No. AHU-AH.01.10-01259
Dated 10 January 2014
- No. AHU-19128.40.22.2014
Dated 11 July 2014
- No. AHU-AH.01.03-0981919
Dated 20 November 2015
- No. AHU-AH.01.03-0182272
Dated 19 October 2017
Company Status :
Foreign Investment
(PMA) Company
Permit by the Government Department :
The Department of Finance
NPWP No.
01.001.680.6-054.000
The President of the Republic of Indonesia
No. B-22/Pres/2/1974
Dated 21 February
1974
The Capital Investment Coordinating Board
- No. 13/II/PMA/1981
Dated 14 May 1981
- No. 21/II/PMA/1987
Dated 22 April 1987
- No. 34/II/PMA/1987
Dated
20 June 1987
- No. 130/II/PMA/1993
Dated
12 November 2003
- No. 715/III/PMA/2003
Dated
30 June 2003
Related Company :
A Member Company of the INDORAMA Group (see
attachment)
CAPITAL
AND OWNERSHIP
Capital Structure :
Authorized Capital : US$ 244,849,324.-
Issued Capital : US$ 160,217,573.-
Paid up Capital : US$ 160,217,573.-
Shareholders/Owners :
a. P.T. IRAMA
INVESTAMA of Indonesia -
US$ 78,507,263.-
b. HSBC FUNDS
SERVICES CLIENTS - US$
13,106,539.-
c. INDORAMA HOLDINGS
(I) PTE, LTD., Singapore -
US$ 3,204,273.-
d. Publics (Foreign
and Domestic) -
US$ 65,399,498.-
BUSINESS
ACTIVITIES
Lines of Business :
a. Integrated Textile Industry
b. Coal Fired Power Plant Development
c. Investment Holding
Production Capacity :
Ubrug Factory
a. Polyester Cotton
& Rayon Yarns
(92,000 unit spindels) - 22,000 tons p.a.
b. Polyester Staple
Fibre Chip
and Filament Yams -
64,000 tons p.a.
c. Grey Fabrics - 12,000,000 mtrs
p.a.
d. Nitrogen Gas - 5,616,000
cu.meter p.a.
e. PET Resins - 78,840
tons p.a.
f. Polyester and Spun Yarn - 84,000 tons p.a.
g. Woven Yarns - 26,560 tons p.a.
h. Dyeing Yarns - 6,000 tons p.a.
i. Spinning Yarns -
4,250 tons p.a.
j. Finished Fabrics - 52,056,000 meters p.a.
k. Special Yarns - 7,800 tons p.a.
l. Power Plant -
2 x 30 MW
Campaka Factory
a. Spun Yarns (P/C/R/AC) -
26,100 tons p.a.
b. Polyester Staple Fibre - 10,800 tons p.a.
c. Polyester Filaments -
36,100 tons p.a.
Bandung Factory
a. Yarns -
8,160 tons p.a
b. Grey Fabrics -
40,000,000 meters p.a.
c. Textile Fabrics - 39,556,000 meters
p.a.
Total Investment :
a. Equity Capital - US$ 160.2 million
b. Reinvested Profit - US$
54.1 million
c. Loan Capital - US$ 617.7 million
d. Total Investment - US$ 831.9 million
Started Operation :
1976
Brand Name :
Indo-Rama Synthetics
Technical Assistance :
None
Number of Employee :
7,844 persons
Marketing Area :
Local - 65%
Export - 35%
Main Customers :
a. Industrial Textiles
b. Buyers in Singapore, Japan, Australia,
Europe Union, the USA, Middle East etc.
Market Situation :
Very Competitive
Main Competitors :
a. P.T. ASIA PACIFIC FIBERS Tbk
b. P.T. INDONESIA TORAY SYNTHETICS
c. P.T. INDORAMA POLYSTER INDUSTRY INDONESIA
d. P.T. INDORAMA VENTURE INDONESIA
e. P.T. TEIJIN INDONESIA FIBER Tbk
Business Trend :
Declining
BANKER,
AUDITOR & LITIGATION
Bankers :
a. P.T. Bank PAN INDONESIA Tbk
Jalan Jend. Sudirman Kav. 55
Jakarta Selatan
Indonesia
b. P.T. Bank INTERNATIONAL INDONESIA Tbk
Plaza BII, Jalan M.H. Thamrin No. 55
Jakarta Pusat
Indonesia
c. BANGKOK Bank
Jalam M.H. Thamrin No. 3
Jakarta Pusat
Indonesia
d. AMERICAN EXPRESS Bank
Jalan H.R. Rasuna Said Kav. X-5
Jakarta Selatan
Indonesia
Auditor :
Satrio Bing Eny &
Rekan (Deloitte)
Litigation :
No litigation record in our database
FINANCIAL
FIGURE
Annual Sales :
2014 – US$ 770.0 million
2015 – US$ 682.0 million
2016 – US$ 691.7 million
2017 – US$ 362.4 million (as per 30 June)
Net Profit :
2014 – US$
0.3 million
2015 – US$ 13.3 million
2016 – US$
2.4 million
2017 – US$
3.6 million (as per 30 June)
Payment Manner :
No complaints
Financial Comments :
Fairly strong
KEY
EXECUTIVES
Board of Management :
President
Director - Mr. Vishnu Swaroop Baldwa
Director - Mr. Anupam
Agrawal
Board of Commissioner :
President
Commissioner - Mr. Sri
Prakash Lohia
Vice
President Commissioner - a. Mrs.
Seema Lohia
b. Mr. Amit Lohia
Commissioners - a. Mr. Humphrey
R. Djemat, SH
b. Mr. Ir. Imam Sucipto Umar
Signatories
:
President Director (Mr. Vishnu Swaroop Baldwa) or
one of the Directors (Mr. Anupam Agrawal) which must be approved by Board of
Commissioners
CAPABILITIES
Management Capability :
Good
Business Morality :
Good
OVERALL
PERFORMANCE
P.T. INDO-RAMA SYNTHETICS
Tbk or abbreviated with trading style (P.T. INDR) was established in April 1974
in Purwakarta (West Java) with an authorized capital of US$ 2,000,000 and an
issued capital of US$ 400,000 of which US$ 40,000 was paid up. The founders and
original shareholders of the company were Mr. Lekhoomal Pahoomal Tolani (an
Indonesian businessman of Indian descent), Mr. Budiantoro Hartono (an
indigenous businessman) and RAMATEX Ltd. of Hong Kong. In 1988 the two local
partners withdrew and were replaced by P.T. IRAMA UNGGUL, a national private
company. In early 1990 the original foreign partner pulled out and was replaced
by BROOKGRANGE INTERNATIONAL FINANCE Ltd. of the United Kingdom. In June 1990
P.T. INDR went public selling 23% of its shares on the Indonesian Stock
Exchange (IEJ).
In July 1997, the
company’s authorized capital was increased to US$ 244,849,324 with the issued
and paid up capital amounting to US$ 160,217,573 and concurently behind its
name the words Tbk (listed company) is added to comply with regulation.
In June 2003, one of
sister companies of P.T. INDR namely P.T. INDORAMA TECHNOLOGIES merged into
P.T. INDO-RAMA SYNTHETICS Tbk (surviving company). According to financial
statement as per 31 December 2015 the latest composition
of its shareholders has been changed to become P.T. IRAMA INVESTAMA (49.00%),
HSBC Fund Services Clients (8.18%), INDORAMA HOLDINGS (I) PTE, LTD., Singapore
(2.00%) and Public (Domestic & Foreign) of (40.82%). Then according to the
latest revision of notary deed Mr. Vidi Andito, SH., no. 6 dated 12 October
2017 the shareholders approved re-elected the board director and commissioner
of the Company. The amendment was approved by the Ministry of Law and Human
Rights in its decision letter No. AHU-AH.01.03-0182272 dated October 19, 2017.
P.T. INDO-RAMA
SYNTHETICS Tbk or INDR operates under Foreign Invesment (PMA) facilities issued
by Capital Investment Coordinating Board (BKPM) to deal with integrated
spinning industry with its mill located on an 18.5 hectare landsite in Purwakarta.
The
corporate head office is located in Jakarta, where central functions are
performed, such as procurement, logistics, finance, and marketing. The Company
commenced production in 1976 with a cotton spinning mill in Purwakarta which
steadily diversified and expanded its spinning business and added manufacturing
of Polyester Filament Yarns, Polyester Staple Fibers, PET Resin, Polyester
Chips, and Polyester Filament Fabrics production for global markets, with
plants located in West Java (in Purwakarta, Campaka and Bandung), Indonesia and
in Uzbekistan (of its subsidiary). The Company has been listed on the Indonesia
Stock Exchange since 1990.
Initially, the company
just managed two plant located in Kembang Kuning Village, Ubrug, Jatiluhur,
Purwakarta, West Java on a land of 18.5 hectares and at Jalan Raya Batujajar
Km. 5.5, Batujajar, Bandung, West Java. However, since the end 2003 by the
merging of its sister company P.T. INDORAMA TECHNOLOGIES, the company has
managed three plants in which one of which is located at Jalan Raya Subang Km.
6, Cikumpay, Campaka, Purwakarta, West Java. The three plants has been expanded
several times to icnrease their annual production capacities. P.T. Indo-Rama
Synthetics Tbk (INDR) is engaged mainly in the manufacturing of spun and
blended yarns, polyester filament yarns (including microfilament yarns),
polyester staple fibre, pet resin, textile grade chips and polyester fabrics
(grey and finished), acquiring certain investments and generation of power for
captive use. The above plants has absorbed an investment of US$ 634.6
million coming from owned capital of US$ 32.8 million, reinvested profit of US$
54.1 million and the rest from loans.
Indorama Synthetics is the maiden company of Indorama,
which commenced commercial operations in 1976. It is one of the largest
producers of polyester in Indonesia with a total manufacturing capacity of
280,000 tons per annum. The Company is listed on the Indonesia Stock Exchange.
Indorama Synthetics is one of Indonesia’s largest exporters and has been a
regular winner of the prestigious Primaniyarta award for its export
performance. The company’s business is all about delivering superior quality,
consistency and reliability with the right service every time. Indorama
Synthetics is involved in the following activities:
·
Polyester
The polyester division accounts for
over 60 percent of the company's revenue. Currently the company has capacity of
65,000 ton of PSF, 100,000 ton of PFY, and 115,000 ton of various grades of
chips.
·
Spun Yarns
The division accounts for over 20
percent of the company's revenue. With capacity of 220,000 spindles and over 50
percent of its output being exported, the company is one of the largest
exporters of spun yarn in Indonesia.
·
Fabrics
The company's currently installed
capacity is 24 million meters per annum of grey fabrics and 42 million meters
per annum of dyed and PFD fabrics.
·
Power Plant
In 2006, Indorama Synthetics set up a
60 MW coal based power plant (2 x 30 MW) to address its power requirements at its
large complex in Purwakarta, Indonesia. Indorama Synthetics has consistently
operated at high level of capacity utilisation, surpassing its peers both in
Asia and globally. Indorama exports its products to over 90 countries covering
all the five major continents across the globe. The facilities and
infrastructure at its Purwakarta complex are unparalleled. The company has also
built Rama International School in Purwakarta for children of its employees and
from neighboring companies.
The corporate head office is located in Jakarta, where
central functions are performed, such as procurement, logistics, finance, and
marketing. The Company’s principal raw materials are PTA, MEG, Cotton, Rayon
and Acrylic, which are sourced from global leaders. PTA and Rayon is
principally sourced domestically with the remaining materials being imported.
There is no constraint on availability of raw materials. The Company achieved
its key targets set for 2012 despite the global uncertainty. The Company’s
strong long term relationships with a large group of banks and financial
institutions ensured availability of capital and its wide network of customers
around the globe allowed it market its products to ensure smooth operations.
The Company focused on operational excellence, market expansion, product
development and cost reduction measures. There has not been any material
impediment affecting the Company’s business.
The company exports some 65% to premium customers in
North America, Europe, South America, Asia, Australia and the Middle East. A
continuous process of reinvestment and productivity enhancement programs had
made Indorama Synthetics into one of the most competitive producers of
polyester worldwide.
Besides, P.T. INDR
controls 42% shares of P.T. INDORAMA PETROCHEMICALS engaged in purified
terephthalic acid (PTA) industry; 100% shares of ISIN INTERNATIONAL PTE. LTD.,
based in Singapore dealing with trading; 100% shares of INDORAMA INDUSTRY PTE.
LTD., based in Singapore dealing with investment; and 76.00% shares of JV INDORAMA
KOKAND TEXTILE LLC., Uzbekistant dealing with spun yarns manufacturing and
99.99% share of P.T. INDORAMA TRADE AND DEVELOPMENT SERVICES dealing with
office and scholl building management. P.T. INDORAMA TRADE AND DEVELOPMENT
SERVICES is engaged in the development and management of office and school
building domiciled in Purwakarta, was established in 2012, and it is still in
development stage.
P.T. INDR continues to focus on specialty products and
services. Its products are exported to over 75 countries all over the globe and
with such a large diversified market base, the Company is confident to market
its output from existing plant as well as expansions. The Company’s principal
products – Polyesters and Spun Yarns are on a consistent growth path.
Global Polyester fiber demand grew by 7.5 % in 2012 and
is projected to continue to increase at an annual average rate of 7.5 % over
the next five years, far ahead of global GDP growth rates which aptly
classifies this industry as a “growing industry”. The Company will continue to
add production capacities at suitable opportunities in order to match the
growing demand of Company’s products.
The 2013 outlook looks positive given the overall
improvement in the North American markets and also in the European continent
(despite the issue in Cyprus). The Company has implemented Good Corporate
Governance principles with the appointment of Independent Commissioners, the
Audit Committee and the Corporate Secretary. The Company has set up strong
internal control systems and procedures to ensure that Company policies are
complied with. The company has a team of professional managers to manage the
various risks of the business in which the Company operates. P.T. INDR is classified as a large size company in the country dealing with
textile industry of which the operation has been running smoothly in the last
three years.
Polyester fiber is the most used synthetic fiber
worldwide, with a market share of about 72%. In fact, not only is its
production cost reasonably low, but it is also successfully used in many
industrial and textile applications, as well as in the automotive industry. For
many years, the world market for polyester fiber has enjoyed sustained annual
growth rates of 7–9%. However, since mid-2008, consumption has significantly
slowed, mainly as a consequence of the global economic recession. In 2008,
world consumption of polyester fiber was about 1.8% less than in 2007. However,
in 2009, world consumption recovered and was back to the 2007 level again, mainly
as a result of Chinese consumption growth. In Europe, North America and Japan
in 2008 and 2009, the market decreased by more than 15% annually; however,
during the same period, consumption in China increased at a rate of over 4% per
year. In the rest of the world, consumption decreases have mostly occurred,
although of variable extent from region to region.
Year 2013 was a very challenging for the trade and
business in general and for Polyester sector in particular where it undergone
very turbulent period. The Global economic slowdown had an impending and
prolonged impact on the demand that has been further exacerbated by the
excessive supply due to over capacity of PTA, Polyester Fiber and Filament yarn
in Asia, mainly led by China. This has triggered a global down-cycle in the
polyester chain, which has been lasting for an abnormally longer period and
where many of the Asian and Global manufacturers suffered considerably. The
product spreads across the polyester value chain continued to remain depressed
due to stiff competition and the softening trend in cotton and Rayon prices
during the year.
Polyester and Raw material chain apparently reflect the
current uncertainty and slow down of the global economy and the overall growth
of polyester production has slowed down in the past two years 2012 and 2013.
With the effective capacity of about 17 million tons added in the last two
years, PTA operating dropped to 76% in 2013 from 90.2% and likely to fall below
74% in 2014 with rationalization of the regional capacities. Polyester polymer
production reaching 61.68 million tons, a growth of 3.2 million tons or 5.5% in
the year 2013, marginally improved from4.6% in 2012 as the global economy
recovered in the second half of 2013. Longer-term growth rates are trending
better with over 6% look impressive compared with other major petrochemical
related business sectors.
Global economy is expected to grow by 3.7% in 2014 and
3.9% in 2015, primarily due to recovery in advanced economies and the emerging
economies to expand by 5.10% and 5.4% respectively. Indonesian economy is
projected to grow moderately at 5.3% - 5.5% in 2014 and 2015 and the growth
will be primarily driven by strong domestic consumptions and modest increase in
exports to its major trading partners.
The Indonesian rupiah (IDR) is likely to remain under
pressure in early 2014 amid uncertainty over the election results and U.S. Fed
tapering. Domestic environment for manufacturing sectors expect to pass through
a tough phase with the proposed hike in energy and manpower costs. Both Gas
prices and Electricity tariff are slated for a significant increase in 2015
putting pressure on cost competitiveness of the domestic manufacturers.
Industry is taking up the matter with the ministry for phasing
out the hike over a period of time instead at one go. With regard to polyester
upstream sector, with the additional capacity of Fiber and Filament yarn going
on stream, domestic market is expected to face a stiff price competition for
commodity products. However, the Company with its strong customer base and with
a diversified product mix is firmly placed to remain competitive and maintain
its leadership position. The delay in finding a solution to its long pending
secured debt restructuring continues to remain a setback to carry out its
growth plans. To expedite the process, the Company has recently submitted an
updated restructuring plan with alternate option to its secured creditors that
are under active consideration. Post restructure, the Company will have a sound
and healthy financial base with its debts brought down to sustainable levels.
This would in turn enable the company to raise finance from market to meet its
short and long terms investments to fund its growth plans. All of these efforts
will improve the performance of the Company significantly, and to reposition it
to the forefront of the polyester industry and retain its strategic and
leadership position.
National Polyester
Production, 2007 – 2016
|
Year |
Polyester Staple
Fiber (PSF) |
Polyester Filament
Yarns (PFY) |
Nylon Yarns (NY) |
|
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 |
497715 500,670 505,674 515,680 529,700 556,000 583,800 618,828 655,958 701,876 |
715,000 670,000 674,000 680,000 700,000 725,000 761,250 806,925 855,340 906,660 |
16,360 17,443 18,556 19,740 21,000 32,000 33,600 35,616 37,788 40,056 |
According to the financial statement of P.T. INDR audited
by a public accountant, total sales turnover of the company in 2014 amounted
US$ 770.0 million with a net profit of US$ 0.3 million decreased to US$ 682.0
million with a net profit of US$ 13.3 million in 2015 increased to US$ 691.7
million with a net profit of US$ 2.4 million in 2016. As per 30 June 2017 the
sales turnover has reached at US$ 362.4 million with a net profit of at least
US$ 3.6 million. Its projected the sales turnover will be higher by at least 5%
in 2018. The payment habit of 1 to 3 months is running smoothly. The company
has never been black listed by Central Bank (Bank Indonesia) and registered at
the count for determines cases. We observe that P.T. INDR is supported by the
INDORAMA Group, a developing business group 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 financial statement as per 31
December 2014, 2015, 2016 and as per 30 June 2017 is shown.
The management of P.T. INDR is led by Mr. Vishnu Swaroop
Badlwa (60) a professional manager with experienced in integrated textile mills.
Mr. Vishnu Swaroop Baldwa serves as President Director of P.T. Indo-Rama
Synthetics Tbk since December 20, 2013. He was Company's Corporate Secretary
from 1996 to 2008, and Chief Financial Officer from 2008 to December 20, 2013.
He is an honorary graduate in Commerce and is a qualified Chartered Accountant
and Company Secretary. He has more than 28 years of experience in corporate
finance, legal and commercial functions in various companies in Malaysia, India
and Indonesia.
In his daily activities, he is assisted by Mr. Anupam
Aggarwal (63) as Director. However the prime mover is Mr. Sri Prakash Lohia
(66), an Indian businessman with broad experienced in the above business. Mr.
S. P. Lohia has a Bachelor of Commerce degree from the University of Delhi in
1971. He founded P.T. Indorama Synthetics along with his father, Mr. M.L.
Lohia, in 1976. He has 36 years of experience in the industry and sits on the
boards of various companies of the Indorama Group. P.T. INDO-RAMA SYNTHETICS
Tbk is sufficiently fairly good for business transaction.
Attachment 1:
PT. INDO-RAMA SYNTHETICS Tbk
FINANCIAL STATEMENTS
Per 31 December 2014, 2015, 2016 and as per 30 June 2017
(In US Dollar)
|
DESCRIPTION |
30 June 2017 |
31 December |
||
|
2016 |
2015 |
2014 |
||
|
A. ASSETS |
|
|
|
|
|
a.
Current Assets |
|
|
|
|
|
- Cash and Cash Equivalent |
28,125,630 |
19,825,449 |
25,884,307 |
11,264,831 |
|
- Other financial assets |
923,039 |
6,130,144 |
5,363,496 |
44,607,902 |
|
- Trade account receivable |
|
|
|
|
|
* Third parties |
76,749,987 |
83,823,361 |
72,449,978 |
72,299,936 |
|
* Related parties |
20,648,519 |
11,919,260 |
1,782,525 |
3,003,468 |
|
- Other account receivable |
13,280 |
1,295,747 |
3,003,761 |
1,489,711 |
|
- Inventories |
152,871,099 |
128,017,771 |
135,767,968 |
134,401,946 |
|
- Purchase advances |
9,301,055 |
4,190,740 |
6,009,703 |
4,663,043 |
|
- Prepaid taxes |
18,443,839 |
37,230,854 |
42,157,354 |
35,520,630 |
|
- Prepaid expenses |
2,991,707 |
1,799,650 |
1,857,280 |
1,273,969 |
|
Total Current Assets |
311,872,226 |
294,232,976 |
294,276,372 |
308,535,436 |
|
b. Non Current Assets |
|
|
|
|
|
- Investments in associates |
52,463,631 |
52,702,292 |
35,085,334 |
27,440,053 |
|
- Other financial assets |
- |
- |
- |
98,491 |
|
- Fixed Assets - net |
484,119,691 |
496,129,545 |
467,862,394 |
438,246,915 |
|
- Advance for Assets Purchase |
124,765 |
1,221,247 |
5,380,456 |
3,263,872 |
|
- Guarantee deposits |
2,338,127 |
2,282,425 |
2,246,740 |
2,275,356 |
|
Total Non-current Assets |
539,045,809 |
552,335,509 |
510,574,924 |
471,324,687 |
|
TOTAL ASSETS |
850,918,440 |
846,568,485 |
804,851,296 |
779,850,123 |
|
B. Liabilities & Stockholder’s Equity |
|
|
|
|
|
a. Current Liabilities |
|
|
|
|
|
- Trade account payable |
|
|
|
|
|
* Related parties |
33,871,804 |
21,769,457 |
18,684,533 |
12,833,133 |
|
* Third parties |
193,217,936 |
177,837,684 |
169,118,595 |
225,089,131 |
|
- Other account payable |
|
|
|
|
|
* Third parties |
2,347,186 |
3,269,383 |
2,975,691 |
3,004,691 |
|
* Related parties |
2,324 |
29,845 |
28,157 |
26,060 |
|
- Tax payable |
723,497 |
826,837 |
525,155 |
714,067 |
|
- Accrued expenses |
9,139,926 |
9,351,092 |
7,699,002 |
7,918,351 |
|
- Short-term bank loans |
33,402,903 |
28,998,291 |
46,597,852 |
16,755,844 |
|
- Current maturities of long-term |
|
|
|
|
|
* Bank loans |
20,698,994 |
9,865,661 |
6,487,579 |
5,604,361 |
|
* Finance leases |
1,102,695 |
2,196,317 |
2,196,568 |
8,437,469 |
|
- Related Party |
- |
- |
- |
- |
|
- Derivative liabilities |
413,475 |
218,535 |
2,084,661 |
1,189,216 |
|
Total Current Liabilities |
294,920,740 |
254,363,102 |
256,397,793 |
281,571,764 |
|
b. Non Current Liabilities |
|
|
|
|
|
- Long term liabilities |
|
|
|
|
|
* Bank loans |
222,577,736 |
265,132,866 |
228,449,994 |
136,463,079 |
|
* Finance leases |
8,267 |
10,035 |
2,206,848 |
4,405,015 |
|
- Deferred Revenue |
1,065,326 |
1,106,992 |
1,190,324 |
1,381,905 |
|
- Deferred tax liabilities |
12,460,563 |
11,303,001 |
7,009,615 |
31,960,656 |
|
- Post employment benefits |
16,938,903 |
15,355,296 |
11,894,745 |
11,551,064 |
|
- Long term derivative liabilities |
- |
- |
862,689 |
744,452 |
|
Total Non Current Liabilities |
253,050,795 |
292,908,190 |
251,614,215 |
186,506,171 |
|
c. Stockholder’s Equity |
|
|
|
|
|
- Paid up capital |
160,217,573 |
160,217,573 |
160,217,573 |
160,217,573 |
|
- Additional paid-in capital |
(14,713,079) |
(14,713,079) |
(14,713,079) |
916,682 |
|
- Retained earnings |
|
|
|
|
|
* Appropriated |
18,475 |
17,475 |
16,475 |
15,475 |
|
* Un appropriated |
137,267,290 |
133,947,735 |
132,628,730 |
121,997,711 |
|
- Other component equity |
15,850,428 |
15,850,428 |
13,627,071 |
10,403,000 |
|
- Non controlling interest |
4,297,222 |
3,968,065 |
4,571,066 |
4,215,567 |
|
Total equity |
302,946,905 |
299,297,193 |
296,839,288 |
311,772,188 |
|
C. INCOME STATEMENTS |
|
|
|
|
|
a. Sales – Net |
362,430,827 |
691,758,965 |
682,041,230 |
769,992,311 |
|
b. Cost of good sales |
(324,551,761) |
(626,717,582) |
(620,019,405) |
(696,064,185) |
|
c. Gross profit |
37,879,066 |
65,041,383 |
62,021,825 |
73,928,126 |
|
d. Income before tax |
4,807,274 |
6,362,848 |
(11,014,487) |
3,242,187 |
|
e. Tax expense-net |
(1,157,562) |
(4,906,106) |
21,122,620 |
(3,440,840) |
|
f. Other comprehensive income |
- |
1,001,163 |
3,218,293 |
524,125 |
|
g. Total Comprehensive Income |
3,649,712 |
2,457,905 |
13,326,426 |
325,463 |
Notes: 31 December 2014,
2015 and 2016 Audited by Satrio Bing Eny & Rekan (Deloitte)
30 June 2017 unaudited
Attachment 2:
List of the INDORAMA Group Members
1.
ASHOK
TEXTILE Industries, Ltd., Nepal (Textile Industry)
2.
AUTUM
INVESTMENT Ltd., Hong Kong (Holding Company)
3.
BANGADUA
PETROLEUM, P.T. (Oil & Natural Gas Exploration)
4.
BROOKGRANGE
INTERNATIONAL FINANCE LTD., The U.K. (Financing Service)
5.
INDOMULIA
MITRAJAYA, P.T. (Shrimp Culture)
6. INDORAMA CHEMICALS
(Thailand) Ltd., Thailand (Chemicals Manufacturing)
7. INDORAMA NETHERLANDS
BV., (Investment Holding)
8. INDORAMA NETHERLANDS
COOPERATIEF U.A. (Investment Holding)
9. INDORAMA
PETROCHEMICALS, P.T. (Purified Terephthalic Acid Manufaccturing)
10. INDORAMA POLYCHEM
INDONESIA, P.T. (Polymerization Resin Industry)
11. INDORAMA POLYESTER
INDUSTRIES INDONESIA, P.T. (Polyester Filament Yarn Industry)
12. INDORAMA PROJECTS AND
SERVICES Ltd., India (Consulting and Investment Holding)
13. INDORAMA SYNTHETICS
(India) Ltd., India (Chemicals Manufacturing)
14. INDORAMA SYNTHETICS
Tbk, P.T. (Spinning Mills and Investment Holding)
15. INDORAMA TRADE AND
DEVELOPMENT SERVICES, P.T. (General Trading)
16. INDORAMA VENTURES
INDONESIA, P.T. (Polyester Filament Yarn and Polyester Resin
Industry)
17. INDORAMA VENTURES
PUBLIC LISTED LTD,. Thailand (Polyester Filament Yarn Industry)
18. INDOSPECT ASIA
PETROLEUM BANGADUA, P.T. (Oil and Gas Exploration and
Production)
19.
IRAMA
DINAMIKA LATEX, P.T. (Latex Goods Manufacturing)
20.
IRAMA
UNGGUL, P.T. (Trading and Investment Holding)
21.
JAKARTA
MAJU PUSAKA, P.T. (Trading and Suppliers)
22.
KARYA
MITRA INDIRAMA, P.T. (Health Clinic Services in Purwakarta)
23.
LOHIA
INDUSTRIES PVT.,LTD., India (Investment Holding)
24.
MEDISAFE
TECHNOLOGIES, P.T. (Latex Glove Manufacturing)
25.
MITRABANGUN
GRIYA, P.T. (Office Block Rental Management)
26.
RAMATEX
Ltd., (Hong Kong), (Investment Holding)
27.
SK
WAHANA INTERNATIONAL, P.T. (Textile Industry)
28.
THONBURI
LACE Co. ,Ltd., Thailand (Investment Holding)
29.
Etc.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.47 |
|
|
1 |
INR 86.15 |
|
Euro |
1 |
INR 75.92 |
|
IDR |
1 |
INR 0.0047 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
SYL |
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.