MIRA INFORM REPORT

Report No. :	485525
Report Date :	17.01.2018

IDENTIFICATION DETAILS

Name :	PT. GOKAK INDONESIA
Registered Office :	Wisma Kodel Lantai 7, Jl. Hr Rasuna Said Kav. B-4 , Kelurahan Karet, Kecamatan Setia Budi , Kota Jakarta Selatan 12920 , Dki Jakarta
Country :	Indonesia
Date of Incorporation :	06.08.1979
Legal Form :	Private Limited Liability Company or Perseroan Terbatas (PT)
Line of Business :	· Manufacture of textiles · Preparation and spinning of textile fibres
No. of Employees :	700

RATING & COMMENTS

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

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory
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

COMPANY IDENTIFICATION

Company Name	PT. Gokak Indonesia
Address	Wisma Kodel Lantai 7, Jl. HR Rasuna Said Kav. B-4 Kelurahan Karet, Kecamatan Setia Budi Kota Jakarta Selatan 12920 DKI Jakarta - Indonesia
Telephone	+62215221458, +62215221551
Fax	+62215221515
Mobile Phone	N.A
Email	mangesh@gokakindonesia.com
Web	www.gokakindonesia.com

 PROFILE

Address

Wisma Kodel Lantai 7, Jl. HR Rasuna Said Kav. B-4
Kelurahan Karet, Kecamatan Setia Budi
Kota Jakarta Selatan 12920
DKI Jakarta - Indonesia

Office Building

a.	Area - Commercial
b.	Status - Leased

Date of Establishment

-	06 August 1979

Start Operation

1982

Legal Status

Private Limited Liability Company or Perseroan Terbatas (PT)

Legalization (historical)

No. C2-720.HT.01.01.Tahun 1983
Dated, 27 January 1983

No. AHU-08344.AH.01.02.Tahun.2009
Dated, 2009

No. AHU-AH.01.10-20710
Dated, 28 May 2013

No. AHU-15592.40.22.2014
Dated, 2014

No. AHU-AH.01.10-20710
Dated, 6 January 2017

Government Permit (s)

Badan Koordinasi Penanaman Modal (BKPM)
PMA - 19/III/PMA/1979
Dated, 18 May 1979
PMA - 61/III/PMA/1984
Dated, 6 December 1984

Direktorat Jenderal Pajak
NPWP - 01.002.076.6-057.000

Significant change

PT. Gokak Indonesia (the Company) was established on August 6, 1979, in Jakarta Pusat-DKI Jakarta. Up to the completion of this report, however, we are unable to obtain establishment act of the Company; so that we cannot show you details about its initial capitalization and shareholder structure. 

Notarial act of the Company has changed several times. Based on our database, per October 19, 2010 the Company’s authorized capital was IDR 2,593,750,000 –entirely issued and fully paid up. Meanwhile, shareholders of the Company consisted of Euro Asian Managers Limited of Hong Kong (72.992%), Shapoorji Pallonji & Co Ltd of India (22.00%), and Mr. Humprey Rithan Djemat (5.008%).

In April 2013, the Company changed the notarial act, yet without changing its capitalization and shareholder structure. 

On May 28, 2014, the Company published a notarial act, yet the Company’s capitalization and shareholder structure remained the same.

On December 21, 2016, the Company published new notarial act, yet without changing its capitalization and shareholder structure. 

Capitalization

     -    Authorized Capital
     -    Issued Capital
     -    Paid Up Capital

IDR 2,593,750,000
IDR 2,593,750,000
IDR 2,593,750,000

 SHAREHOLDERS & MANAGEMENT

Shareholders

Total No. of Shareholders: 3
Shareholders as 6 January 2017
Total Shareholding private – 6,250 shares

Name of Shareholders

-	Euro Asian Managers Limited of Hong Kong (4,562 shares) - 72.992 %
-	Shapoorji Pallonji & Co Ltd of India (1,375 shares) - 22.000 %
-	Mr. Humprey Rithan Djemat (313 shares) - 5.008 %

Management Board

Name

Mr. Mahaveer Appasaheb Kolhapuri

Position

President Director

Nationality

Indian

Name

Mr. Humprey Rithan Djemat

Position

Director

Nationality

Indonesian

Name

Mr. Manguesh Sadanand Kanago

Position

Director

Nationality

Indian

Supervisory Board

Name

Mr. Jimmy Parakh AKA Parakh Jimmy Jahangiri

Position

President Commissioner

Nationality

Indian

Name

Mr. Chandrakant Girdharlal Shah

Position

Commissioner

Nationality

Indian

Name

Ms. Buanita Rosiana Djemat

Position

Commissioner

Nationality

Indonesian

Name

Mr. Mahesh Chelaram Tahilyani

Position

Commissioner

Nationality

Indian

Management Assessment

The management is deemed to have sufficient experience and industry expertise to manage subject properly.

Authorized Signatories

Mr. Mahaveer Appasaheb Kolhapuri as President Director or Mr. Humprey Rithan Djemat and Mr. Manguesh Sadanand Kanago as Directors of the Company which must be approved by shareholders meeting.

Affiliate (s) / Associate (s)

-	Euro Asian Managers Limited of Hong Kong (Activities of Holding Companies)
-	Shapoorji Pallonji & Co Ltd of India (Activities of Holding Companies)

 KEY DATA ON OPERATIONS

Registered Activities

SIC Code 13 : Manufacture of textiles

Number of Employee

Approximately - 700 employees

Business Category

SIC Code 13.1 : Preparation and spinning of textile fibres

Line of Business

SIC Code 13.10 : Preparation and spinning of textile fibres

Product & Capacity

- Cotton Yarns - 6,000,000 tons p.a.
- Synthetic Yarn - 6,000,000 tons p.a.

Status of Investment

Foreign-invested Company

Sales Territory

Local

30%

International

70%

Main Items Imported
And Country Origin

Supported Materials
Machinery
Cotton
Polyester

India
Brazil
Japan
Pakistan

Main Items Exported
and Country Destination

Yarns
Yarns
Yarns
Yarns
Yarns
Yarns
Yarns
Yarns
Yarns
Yarns

Germany
Poland
USA
South Korea
Bangladesh
Brazil
Argentina
Egypt
Portugal
Spain

Major Customers

-	Nex Tex Inc. of USA
-	Supertex Medical S.A of USA
-	PT. Triputra Textile Industry
-	PT. Senshu Sakura Tex Indonesia
-	Ningbo MH Textile Co.,Ltd. of China

Major Supplier

-	Shapoorji Pallonji & Co Ltd of India
-	Principal From Pakistan
-	PT. Polychem Indonesia Tbk
-	PT. Indonesia Toray Synthetics
-	Principal from Brazil
-	Principal from Japan

Terms of Payment

Purchase Payment
Domestic: Telegraphic Transfer (T.T) with Credit Term up to 90 days or Based on agreement;
Overseas: Letter of Credit (L/C) or Telegraphic Transfer (T.T) based on contract agreement;

Sale Terms
Domestic: Telegraphic Transfer (T.T) with Credit Term up to 60 days or Based on agreement;
Overseas: Letter of Credit (L/C) or Telegraphic Transfer (T.T);

Activity Comment

Began operation in 1982, PT. Gokak Indonesia (the Company) is a foreign-invested company that is engaged in Textile Industry. Head Office and Registered Address of the Company are located in a commercial area, precisely at Wisma Kodel, Lantai 7 (not 8), Jalan HR Rasuna Said Kav. B-4, Kelurahan Karet, Kecamatan Setia Budi, Jakarta Selatan 12920, Jakarta, Indonesia. We believe this location is leased from other parties. The Company is also supported by a factory, which is located in a commercial area, precisely at Jl. Ateng Ilyas No. 1, RT.02 RW.08, Kampung Muhara, Citeureup, Bogor 16810, West Java, Indonesia. We believe this location is leased for a long-term period.

Based on the permit issued by the Coordination Board of Investment, the Company has capacity to produce Cottons Yarn (6,000,000 tons per year) and Synthetic Yarn (6,000,000 tons per year).

According to our source, the Company is an Indian Joint Venture company which is engaged in business of yarn spinning. Items of their products are: Combed Cotton Yarns, 100% Karded Cotton Yarns, Polyester Spun Yarns, Polyester / Viscose blended Yarns, Open End Yarns, and Multifold Yarns.

For production process, the Company is currently supported by 80 active production machines and several other facilities, such as Blow Room, Carding, Breaker Drawing, Lap preparation, Comber, Finisher Drawing, Ring Frames, Winding, and Testing Instrument.

To support its operations, the Company obtains raw materials from local and overseas companies. Some local companies that become suppliers of the raw materials are PT. Polychem Indonesia Tbk (which supplies chemicals), and PT. Indonesia Toray Synthetics (which supplies synthetic fibers). Meanwhile, for meeting the need of background materials, the Company takes cooperation with foreign companies such as with its sister company, Sapoorji Pallonji & Co Ltd of India. Besides, the Company also uses imported machinery from Brazil, cotton from Japan, and polyester from Pakistan. So far, the Company is not facing significant constraint in the import process.

The Company’s products are traded in local and overseas market, with composition of 70% for the export market and 30% for the local market. In overseas market, current customers of the Company since the past 2 years are mainly coming from China. Meanwhile other customers are coming from several countries, such as Germany, Poland, USA, South Korea, Brazil, Argentina, Egypt, Portugal, Spain, Italy, Malaysia, Vietnam, Philippines, and Bangladesh, to name a view. Some of the customers are Ningbo MH Textile Co.,Ltd. of China, PT. Triputra Textile Indutry, and PT. Senshu Sakura Tex Indonesia.

In term of payment manner, the Company is not facing a collection day period. Yet, there is a special treatment taken by the Company particularly for customers from Bangladesh. Here, for customers from Bangladesh, the Company tends to give a longer payment term, namely 60 days-90 days of term than for customers from other countries.

According to our source, performance of the Company was declining in 2015, in line with the weakening condition of textile industry following the slowing performance of Indonesian economy. Nevertheless, the Company was still operating and not forced to cut down the number of its employees. However, in 2016, because of the increasing quality of the Company’s products, the demand for the Company’s products increased. As result, the Company was able to book an increase in sales, though not significantly. The increasing performance of the Company continues until this first quarter of 2018.

In this year 2018, in order to increase sales of its products, the Company is planning to keep on expanding the marketing coverage areas.

Currently, the Company is supported by approximately 700 employees or similar with 2017.

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

Jl. Ateng Ilyas No. 1, RT.02 RW.08
Kampung Muhara, Citeureup
Kab. Bogor 16810
Jawa Barat - Indonesia
Phone : +62218752672
Fax : +62218752673
Email : factory@gokakindonesia

 BANKING INFORMATION

Banker (s)

-	PT. Bank of India Indonesia Tbk
-	PT. Bank Danamon Indonesia Tbk
-	THE BANK OF TOKYO-MITSUBISHI UFJ CO., LTD.

Insurance

-	Badan Penyelenggara Jaminan Sosial (BPJS)

 BUSINESS PROSPECTS

Business Prospects

As stated by Asosiasi Pertekstilan Indonesia (API), some yarn-spinning companies have begun to cut down their production, due to the lessening demand from the market. So far, fortunately, none of them is forced to stop production. This situation is confirmed by Asosiasi Produsen Serat dan Benang Filament Indonesia (APSyFI), which said that production of spindle yarn in 2016 was only 1.54 million, lower than the production capacity that reaches 2.2 million ton per year. Up to the end of last year, in fact, utilization capacity of the industry was only 60%, or about 1.40 million ton. This depressing situation is caused by the government policy to allow the import of textile materials such as fabrics, yarns, etc., including from China. As result, the local products have to compete tightly against the imported products. In addition, the decreasing production capacity of the local yarn-spinning producers is also caused by the increase in electricity tariff, gas, and labor wages. Apart from the fact, nevertheless, the yarn-spinning industry is still quite promising. Based on data from Asosiasi Perstekstilan Indonesia, the textile industry in Indonesia is predicted to continue to improve, with annual average growth (CAGR) of 7.9%. Based on data and information shown above, we believe that the yarn-spinning industry is still quite promising. Undeniably, nevertheless, to keep surviving in the future, the industry needs supports from the government to protect their performance.

FINANCIAL STATEMENT

Sales Turn Over	2015 - IDR 323,000,000,000 (Estimated) 2016 - IDR 332,690,000,000 (Estimated) 2017 - IDR 342,670,700,000 (Estimated)
Total Assets	2009 - IDR 153,437,033,551 ( Based on Financial Statement of the Company ended December 31 ) 2010 - IDR 174,778,875,569 ( Based on Financial Statement of the Company ended December 31 ) 2011 - IDR 208,790,000,000 ( Based on Financial Statement of the Company ended December 31 ) 2012 - IDR 215,580,100,000 ( Based on Financial Statement of the Company ended December 31 )
Other Financial Data	As the Company is not a publicly listed company, so we are unable to give a detailed picture of the financial condition of the Company.

 CREDITWORTHINESS

Management Capability	Good
Business Morality	Adequate
Payment Manner	Satisfactory
Financial Condition	Satisfactory
Operating Trend	Up
Conclusive remarks	Based on information shown above, we learn that the Company is a cotton yarn & synthetic yarn company that has been operating in the business since 1983. The Company obtains raw materials from local and overseas suppliers, with composition of 50:50. Products of the Company are 70% exported to overseas market, namely to Germany, Poland, USA, South Korea, Brazil, Argentina, Egypt, Portugal, Spain, Italy, Malaysia, Vietnam, Philippines, Bangladesh, to name a view. Some of the customers of the Company are Ningbo MH Textile Co., Ltd. of China, PT. Triputra Textile Industry, and PT. Senshu Sakura Tex Indonesia. As we learn, performance of the Company was declining in 2015. In 2016, fortunately, the Company was able to recover, and to increase its sales in 2017. Although the yarn industry is now facing tight competition against imported products, but we believe that textile industry is still able to grow positively. Thus, we believe this industry is still quite promising. Undeniably, nevertheless, to keep surviving in the future, the industry needs supports from the government to protect their performance against imported products. Based on considerations shown above, we conclude that the current credit risk of the Company is ‘medium’. However, for security reason, we advise those wishing to make cooperation with and to grant loans to the Company to ask for adequate collaterals from the owners and management.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.76
UK Pound	1	INR 89.91
Euro	1	INR 78.20
IDR	1	INR 0.0048

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

INFORMATION DETAILS

Analysis Done by :	NIS
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)

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.