MIRA INFORM REPORT

 

 

Report Date :           

28.09.2011

 

IDENTIFICATION DETAILS

 

Name :

DEWI SELATAN MOTOR

 

 

Registered Office :

Jalan Dewi Sartika No. 34, Balong Gede, Regol, Bandung, 40251, West Java

 

 

Country :

Indonesia

 

 

Year of Establishment :

1986

 

 

Com. Reg. No.:

Not Available

 

 

Legal Form :

Sole Proprietary Concern

 

 

Line of Business :

Trading and Distribution of Motorcycle Parts

 

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$ 52,600

Status :

Satisfactory

Payment Behaviour :

Usually 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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Indonesia

b1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Name of Concern 

 

DEWI SELATAN MOTOR

 

 

concern  Address

 

Head Office

Jalan Dewi Sartika No. 34

Balong Gede, Regol

Bandung, 40251

West Java

Indonesia

Phones             - (62-22) 4231271, 4238586

Fax                   - (62-22) 4237933

Building Area     - 2 storey

Office Space      - 200 sq. meters

Region              - Commercial

Status               - Owned

 

 

Date of Incorporation

 

1986

 

                                  

Legal Form

 

Sole Proprietary Concern

 

 

Concern  Reg. No.

 

Not Required

 

 

Concern  Status

 

Private National Concern

 

Permit by the Government Department

 

Not Available

 

 

Related Concern 

 

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 300 million

 

Owner :

Mr. Sunardo AKA Atik

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading and Distribution of Motorcycle Parts

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1986

 

Brand Name :

Dewi Selatan Motor

 

Technical Assistance :

None

 

Number of Employee :

7 persons                                       

 

Marketing Area :

Local    - 100%

 

Main Customer :

Individuals (end users)

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. AMANDA RUANG MOTOR

b. ANEKA JAYA MOTOR

c. P.T. DENSO CENTRA

d. OMAR KHAYYAM

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Banker :

P.T. Bank CENTRAL ASIA Tbk

Jalan Asia Afrika No. 115

Bandung, West Java

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2008 – Rp. 3.6 billion

2009 – Rp. 3.8 billion

2010 – Rp. 4.0 billion

 

Net Profit (estimated) :

2008 – Rp. 0.1 billion

2009 – Rp. 0.2 billion

2010 – Rp. 0.3 billion

           

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Sunardo AKA Atik

                                                                                                           

Board of Commissioners :

None

                                                                                                           

Signatories :

Director (Mr. Sunardo AKA Atik) is only the authorized person to sign the loan on behalf of the concern .

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

Maximum Credit Limit :

US$ 52,600 on 90 days D/A

 

 

OVERALL PERFORMANCE

 

DEWI SELATAN MOTOR (DSM) was established in Bandung, West Java in 1986 with a status of sole proprietary concern . The founder and owner is Mr. Sunardo AKA Atik an Indonesian businessman of Chinese origins. Being as sole proprietary concern , the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, the concern  has own capital of about Rp. 300 million and it will be rising in line with the progress of its business operation.

 

DSM has been in operation since 1986 dealing with trading, distribution and retails of spare part products of two wheels motor vehicles (scooter). The spare part products being traded by the concern  comprise circlips, spring roll pins, gear ranks, free wheels, sprockets, chain covers, chain wheels, hose clips, cork sheets, cylinder linear, piston rings and others. Mr. Sunardo AKA Atik, the director of the concern  disclosed that all of the merchandise products are imported from India by used BAJAJ brand. Further Mr. Sunardo added that sometime they bough of the motorcycle parts from PD. OMAR KHAYYAM in Jakarta. Later the merchandise products are sold to various repair shops repairing scooters Bandung, West Java. Besides, DSM is also sells of other motorcycle products with YAMAHA brand. We see that DSM operation has been growing in the last three years.

 

Generally, demand for motorcycles components and spare parts had kept on increasing in line with the development of the production of motorcycles in the country. One of factors supporting the growing demand for motorcycles is the role of financial and banking institutions seriously backing up the motorcycle purchasing with installment system. With a little Down Payment (DP), the public can obtain the motorcycles. The competition is very tight on account of many motorcycle producers operating in the country including Chinese motorcycles offered with cheaper prices. However, Japanese motorcycles still dominate the local motorcycle markets like HONDA controls 60% of the market segment, SUZUKI (19%), YAMAHA (16%), KAWASAKI (2%) and others 3%. The development of motorcycle production in the country in detail is as illustrated in the following table:

 

Indonesia’s Production and Wholesales of Motorcycle, 2005-2010*

 

Year

Production (AISI) (Units)

Wholesales (Units)

2005

5,113,487

5,089,426

2006

4,459,000

4,470,722

2007

4,722,000

4,713,895

2008

6,264,265

6,280,799

2009

5,884,000

5,882,000

2010*

5,600,000

5,650,000

              *) Projected

              Source: AISI

 

Until this time DSM has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of DSM is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the concern  in 2008 amounted to Rp. 3.6 billion rose to Rp. 3.8 billion in 2009 increased to Rp. 4.0 billion in 2010 and projected to go on rising by at least 4% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 0.3 billion and the concern  has an estimated total networth of at least Rp. 0.5 billion. So far, we did not heard that the concern  having been black listed by the Central Bank (Bank Indonesia). The concern  usually pays its debts punctually to suppliers.  

 

The management of DSM is led by Mr. Sunardo AKA Atik (55) a businessman with experience in motorcycle parts retails. The concern 's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the concern  being filed to the district court for detrimental cases or involved in any business malpractices. The concern ’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. DEWI SELATAN MOTOR is sufficiently fairly good for business transaction.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.18

UK Pound

1

Rs.76.65

Euro

1

Rs.66.63

 

 

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

Capability to overcome financial difficulties seems comparatively below average.

 

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

----

NB

New Business

----

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.