MIRA INFORM REPORT

 

 

Report Date :

02.07.2007

 

IDENTIFICATION DETAILS

 

Name :

P.T. CENTRAL SOLE AGENCY

 

 

Registered Office :

Wisma INDOMOBIL, 2nd Floor, Jalan M.T. Haryono Kav. 8, Jakarta Timur, 13330

 

 

Country :

Indonesia

 

 

Date of Incorporation :

6 July 1971

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Sole Agent and Distributor of VOLVO Motorcar and Bus

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 1,700,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Name of Company

 

P.T. CENTRAL SOLE AGENCY

 

 

Address

 

Head Office & Showroom

Wisma INDOMOBIL, 2nd Floor

Jalan M.T. Haryono Kav. 8

Jakarta Timur, 13330

Indonesia

Phone               - (62-21) 856 4843 (Hunting), 856 4844

Fax.                  - (62-21) 850 5222

Building Area     - 18 storey

Factory Space   - 1,500 sq. meters

Region              - Commercial Building

Status               - Rent

 

Branch

Jalan Gunung Sahari Raya No. 43

Jakarta Pusat

Indonesia

Phone               - (62-21) 6396108

Fax.                  - (62-21) 6396109

Building Area     - 2 storey

Factory Space   - 220 sq. meters

Region              - Commercial Building

Status               - Rent

 

 

Date of Incorporation

 

6 July 1971

                   

              

Legal Form

 

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

 

                                                       

Company Reg. No.

 

The Ministry of Justice and Human Rights

No. C-01536 HT.01.04.TH.2002

Dated 2 August 2002

 

 

Company Status 

 

Private Company

           

Permit by the Government Department

 

The Department of Finance (Tax Directorate)

NPWP No. 01.314.268.2-026.000

 

The Department of Industry

No. 02/AT-KB/MLD/1/1985

Dated 16 January 1985

 

 

Related Company

 

The INDOMOBIL Group or the SALIM Group Members

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                             : Rp. 70,000,000,000.-

Issued Capital                                   : Rp. 70,000,000,000.-

Paid up Capital                                  : Rp. 70,000,000,000.-

 

Shareholders/Owners :

a. P.T. WAHANA INTI CENTRAL MOBILINDO    - Rp. 69,971,000,000.-

   Address : Jl. M.T. Haryono Kav. 8

                   Jakarta Timur

                   Indonesia

b. P.T. KENDEKA JAYA                                    - Rp.       11,000,000.-

   Address : Jl. M.T. Haryono Kav. 8

                   Jakarta Timur

                   Indonesia

c. The heirs of Mr. Soedarmo Salim                - Rp.        9,000,000.-

   Address : Jl. M.T. Haryono Kav. 8

                   Jakarta Timur

                   Indonesia

d. Mrs. Winny                                                   - Rp.       9,000,000.-

   Address : Jl. M.T. Haryono Kav. 8

                   Jakarta Timur

                   Indonesia

 

   

BUSINESS ACTIVITIES

                              

Lines of Business:       

Sole Agent and Distributor of VOLVO Motorcar and Bus

 

 

Production Capacity

 

None

 

 

Total Investment

 

Owned Capital                                   - Rp. 70.0 billion

 

 

Started Operation

 

1972

 

 

Brand Name

 

VOLVO

 

 

Technical Assistance

 

None

 

 

Number of Employee

 

126 persons                                     

 

 

Marketing Area

 

Domestic    - 100%

 

 

Main Customer

 

Automotive Dealers and end users

 

 

Market Situation

 

Very Competitive

 

 

Main Competitors

 

a. P.T. HONDA PROSPEK MOTOR

b. P.T. TOYOTA MOTOR MANUFACTURING INDONESIA

c. P.T. INDOMOBIL SUZUKI INTERNATIONAL Tbk

d. P.T. KRAMAYUDHA TIGA BERLIAN MOTOR

e. P.T. ASTRA NISSAN DIESEL INDONESIA

f. Etc.,

 

 

Business Trend

 

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. The Hongkong and Shanghai Banking Corp. Ltd.

    World Trade Center

    Jalan Jend. Sudirman Kav. 29-31

    Jakarta Selatan, 12930

    Indonesia

b. P.T. Bank CENTRAL ASIA Tbk

    Wisma BCA

    Jalan Jend. Sudirman Kav. 22-23

    Jakarta Pusat

    Indonesia

 

Auditor :

Internal Auditor

           

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2004 – Rp. 145.0 billion

2005 – Rp. 155.0 billion

2006 – Rp. 135.0 billion

 

Net Profit (Loss) :

2004 – Rp.   9.4 billion

2005 – Rp. 10.8 billion

2006 – Rp.   8.1 billion

           

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Paulus B. Suranto

Directors                                   - a. Mr. Angky Camaro

                                                  b. Mr. Erick Kartawidjaja

                                                  c. Mr. Gunadi Sindhuwinata

 

Board of Commissioners :

President Commissioner - Mr. Soebronto Laras

Commissioners                          - a. Mr. Henry Liem

                                                          AKA Liem Sien Tjay

                                                  b. Mr. Anthony Salim

                                                      AKA Liem Hong Sien          

                                                           

Signatories :

President Director (Mr. Paulus B. Suranto) or one of the Directors (Mr. Angky Camaro, Mr. Erick Kartawidjaja or Mr. Gunadi Sindhuwinata) which must be approved by Supervisory Board.

 

 

CAPABILITIES

 

Management Capability :

Good

 

 

Business Morality

 

Good

 

 

Credit Risk

 

Average

 

 

Credit Recommendation

 

Credit should be proceeded with monitor

 

 

Proposed Credit Limit 

 

Small amount – periodical review

 

 

Maximum Credit Limit

 

US$ 1,700,000.- on the 90 days of payments

 

 

 

 

 

 

OVERALL PERFOMANCE

 

P.T. CENTRAL SOLE AGENCY (P.T. CSA) was incorporated in July 1971 in Jakarta with an authorized capital of Rp. 250,000,000.- issued capital of Rp. 56,000,000.- of which Rp. 28,000,000.- was paid up. The original shareholders of the company were Mr. Soedono Salim AKA Liem Sioe Liong, his son Mr. Albert Halim AKA Liem Sien Pien, the late Mr. Soedarmo Salim AKA Liem Soehanda AKA Liem Sioe Hie (younger brother of Mr. Soedono Salim), Mrs. Winny, the late Mr. Budiman Kusnadi AKA Liem Tjie Ming (all Chinese origin Indonesian entrepreneurs) and Mr. Ibrahim Tahir (an indigenous businessman). In 1988 the paid up capital was increased to Rp. 56,000,000. In this occasion Mr. Ibrahim Suhanda AKA Liem Sioe Hie pulled out and replaced by a new shareholder P.T. KENDEKA JAYA, a national private company. The latest in January 2002, the authorized capital was increased to Rp. 70,000,000,000.- entirely issued and paid up. On the same occasion, P.T. WAHANA INTI CENTRAL MOBILINDO joined the company as new shareholders. The deed of amendment was made by Mr. Suprapto, SH., a public notary in Jakarta under Company Registration Number C-01536 HT.01.04.TH.2002, dated August 2, 2002.

 

We see that the majority business stakes owner P.T. WAHANA INTI CENTRAL MOBILINDO is a national private company investment holding and majority business stakes is controlled by Mr. Soedono Salim AKA Liem Sioe Liong. P.T. CSA is a member company of the INDOMOBIL Group,  a sub-group of the SALIM Group, especially dealing with assembling of motorcar and motorcycle manufacturing, trading of automotive and component.

 

P.T. CSA had been operating since 1972 as sole agent for VOLVO cars of Sweden like bus, truck, sedan and other types. The VOLVO cars have been assembled at home by P.T. INDO SWEDISH ASSEMBLY COMPANY, it is, too a member of the INDOMOBIL Group. The types of VOLVO cars marketed locally are VOLVO S60, VOLVO S80, VOLVO XC90 (the next generation SUV) and VOLVO C30. Most of VOLVO sedans care sold to government agencies such as the state secretariat (SETNEG), the Department of Defense and Security (HANKAM) and other state department. The company has open a marketing office and showrooms in Jakarta (4 units), Semarang (1 unit), Bali (1 unit), Bandung (1 unit), Surabaya (1 unit) and Medan (1 unit). Mr. Paulus B. Suranto, the president directors of the company disclosed that the sales of sedan cars has been fluctuating in the last three years. In 2004 the company sells some 165 units to 200 units, rose to 170 units in 2005 and declined to 100 units in 2006. We figure out that VOLVO sedans market at hoe is quite weak, the reasons are likely classified as luxury car, very expensive and unable to compete with other elegant brands like MERZEDEZ BENZ and BMW both of Germany. We observe that the operation of P.T. CSA has been fluctuating in the last three years. 

     

In general, the demand for car and automotive component is in line with the progress achieved by Indonesian automotive manufacturing industry. We observe that motorcar and motorcycles assembling industries have kept on increasing in the last five years. However, the competition is very tight because motorcar and motorcycles assembled in the People Republic of Chinese and South Korea are sold for cheaper compared with Japanese ones. The development of motorcar and motorcycle industry in the country can be seen from the Indonesian growth of motorcycle sales as follow :

 

                                Sales of Motorcars & Motorcycles in Indonesia

 

Y e a r

Motorcar (units)

Motorcycle (units)

1997

386,691

1,852,906

1998

  58,303

   492,626

1999

  93,842

   517,912

2000

300,964

   587,402

2001

299,634

   979,422

2002

317,780

1,650,770

2003

354,208

2,814,054  

2004

472,190

3,887,675

2005

456,822

3,830,847

            Source :  GAIKINDO and AISI

 

Until this time P.T. CSA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We observed that total sales turnover of the company in 2004 amounted to Rp. 145.0 billion increased to Rp. 155.0 billion in 2005, declined to Rp. 135.0 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 8.1 billion and the company has an estimated total net worth at Rp. 121.0 billion. It is projected that total sales turnover of the company will increase at least 5% in 2007. We observe that P.T. CSA is supported by the INDOMOBIL Group who has financially strong and sound behind it. So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.  

 

The management of P.T. CSA is led by Mr. Paulus B. Suranto (52) with 15 years of experience in automotive business. But we are sure that primemover of the company is Mr. Soebronto Laras (55) a top figure of the INDOMOBIL Group. The management of the company is handled by professional managers having wide relation with private businessmen within and outside the country and with the government sectors as well. We observed that management’s reputation in said business is fairly good. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

PT. CENTRAL SOLE AGENCY is fairly good for business transaction.  However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

 

                                                                                                                      


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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 and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

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