MIRA INFORM REPORT

 

 

Report Date :           

17.04.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. BAJAJ AUTO INDONESIA

 

 

Registered Office :

Menara Imperium 29th Floor Suite A, Jalan H.R. Rasuna Said Kav. 1 Setiabudi, Jakarta Selatan, 12980

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

03.07.2006

 

 

Com. Reg. No.:

No. AHU-AsH.01.10-09230

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading, Import and Distribution of Motorcycle and Components

 

 

No. of Employees :

165

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

US$ 2,500,000

 

 

Status :

Moderate

 

 

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 – March 31st, 2012

 

Country Name

Previous Rating

                   (31.12.2011)                  

Current Rating

(31.03.2012)

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 Company

 

P.T. BAJAJ AUTO INDONESIA

 

 

company Address

 

Head Office

Menara Imperium 29th Floor Suite A

Jalan H.R. Rasuna Said Kav. 1

Setiabudi

Jakarta Selatan, 12980

Indonesia

Phones             - (62-21) 8281 787 (Hunting), 8307 648

Fax                   - (62-21) 8307 615

E-mail               - info@bajaj-indonesia.com

Website                        - http://www.bajaj-indonesia.com

Building Area     - 32 storey

Office Space      - 200 sq. meters

Region              - Commercial Building

Status               - Rent

 

Factory (Assembling)

Jalan Raya Industri C 4 No. 1

Bekasi International Industrial Estate

Lippo Cikarang, Bekasi, 17550

West Java

Indonesia

Phones             - (62-21) 8990 8907 (Hunting)

Fax                   - (62-21) 8990 8908

Land Area         - 30,000 sq. meters

Building Space  - 18,200 sq. meters

Region              - Industrial Estate

Status               - Rent

 

 

Date of Incorporation

 

3 July 2006

 

 

Legal Form

 

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

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. C-22753.HT.01.01.TH.2006

  Dated 3 August 2006

 

- No. AHU-80183.AH.01.02.TH.2008

  Dated 31 October 2008

 

- No. AHU-42315.AH.01.02.TH.2009

  Dated 28 August 2009

 

- No. AHU-AH.01.10-09230

  Dated 25 March 2011

 

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

a. The Department of Finance

    NPWP No. 02.519.856.5-055.000

 

b. The Department of Industry & Trade

    TDP No. 090313550480

    Dated 30 August 2006

 

c. The Capital Investment Coordinating Board

    - No. 631/I/PMA/2006

      Dated 8 June 2006

- No. 1189/III/PMA/2007

  Dated 16 August 2007               

- No. 1119/III/PMA/2008

  Dated 10 July 2008

- No. 991/III/PMA/2009

  Dated 30 July 2009

 

 

Related Companies

 

a. BAJAJ AUTO LIMITED, India (Motorcycle Manufacturing and Investment Holding)

b. P.T. ABDI RAHARJA (Trading and Distribution of Motorcycle)

c. P.T. ABDI SEJAHTERA (Trading and Distribution of Technical Equipment)

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 29,500,000.-

Issued Capital                                  : US$ 29,500,000.-

Paid up Capital                                : US$ 29,500,000.-

 

Shareholders/Owners :

a. BAJAI AUTO LIMITED                                         - US$ 29,187,500.-

    Address : Mumbai Pune Road

                    Akurdi, Pune 411035

                    India           

b. Mr. Teguh Boentoro                                           - US$      312,500.-

    Address : Jl. Villa RT. 001/ RW. 008

                    Kelurahan Jati Padang, Pasar Minggu

                    Jakarta Selatan

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Trading, Import and Distribution of Motorcycle and Components

b. Motorcycle Assembling

 

Production Capacity :

a. Motorcycle (2 wheeler)                  - 28,000 units p.a.

b. Trading, Import and Distribution of

    Motorcycle and Components

 

Total Investment :

a. Equity Capital                              - US$ 29.5 million

b. Loan Capital                                - US$ 43.0 million

c. Total Investment                           - US$ 72.5 million

 

Started Operation :

a. July 2006

b. Assembling 2007

 

Brand Name :

BAJAJ

 

Technical Assistance :

BAJAJ AUTO LIMITED of India

 

Number of Employee :

165 persons                                   


 

Marketing Area :

Local    - 100%

 

Main Customers :

a. P.T. BAJAJ ANDALAN SAKTI

b. P.T. BAJAJ FONTANA PERKASA MOTOR

c. Other Distributors

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ASTRA HONDA MOTOR

b. P.T. INDOMOBIL SUZUKI INTERNATIONAL

c. P.T. KAWASAKI MOTOR INDONESIA

d. P.T. TVS MOTOR INDONESIA

e. P.T. YAMAHA MOTOR INDONESIA

f. Etc.

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank SWADESI Tbk

      Jalan Samanhudi No. 37

      Jakarta Pusat

      Indonesia

b.   P.T. Bank MANDIRI Tbk

      Plaza Mandiri

      Jalan Jend. Gatot Subroto Kav. 36-38

      Jakarta Selatan

      Indonesia

c.   CITIBANK N.A.

      Citi Bank Tower

      Jalan Jend. Sudirman Kav. 54-55

      Jakarta Selatan

      Indonesia

 

Auditor :

KAP Handoko & Suparmun

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (as per March):

2009 – Rp. 229.1 billion

2010 – Rp. 141.1 billion

2011 – Rp. 195.0 billion (estimated)

 

Net Loss (as per March) :

2009 – Rp. 109.1 billion

2010 – Rp.   25.4 billion

2011 – Rp.   15.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Tomotaka Ishikawa

Vice President Director                     - Mr. Kulkarni Dinesh Anantrao

Directors                                         - a. Mr. Vijayaraghavan Srinivasan

                                                        b. Mr. Sampath Kumar Krishnan

Marketing Manager                          - Mr. Apong Arfiansyah

 

Board of Commissioners :

President Commissioner                   - Mr. Rakesh Sharma

Commissioners                                - a. Mr. Kevin D’sa

                                                        b. Mr. Teguh Boentoro

 

Signatories :

President Director (Mr. Tomotaka Ishikawa) or Vice President Director (Mr. Kulkarni Dinesh Anantrao) or one of the Directors (Mr. Vijayaraghavan Srinivasan or Mr. Sampath Kumar Krishnan) which must be approved by Board of Commissioner.

 

 

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$ 2,500,000 on 90 days D/A

 

 

OVERALL PERFORMANCE

 

P.T. BAJAJ AUTO INDONESIA (P.T. BAI) was established in Jakarta on July 03, 2006 with an authorized capital of US$ 12,500,000 wholly issued and paid up. The company was founded by BAJAJ AUTO LIMITED of India as foreign partner and Mr. Teguh Boentoro as local partner. The deed of amendment was made by Mrs. Aulia Taufani, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. C-22753 HT.01.01.TH.2006, dated August 03, 2006. The company notary deed has been changed and in September 2008 the board of directors and the board of commissioner had been changed (see profile of this report). The deed of amendments was made by Mr. Sutjipto, SH., a public notary in Jakarta and was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-80183.AH.01.02.TH.2008 dated October 31, 2008. Then according to the latest revision of notary documents of Mrs. Mala Mukti, SH., LL.M., No. 17 dated 7 March 2011 the company authorized capital was increased to US$ 29,500,000 wholly issued and paid up. With this development the composition of its shareholders has been changed to become BAJAJ AUTO LIMITED (98.94%) and Mr. Teguh Boentoro (1.06%). The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-09230 dated March 25, 2011.

 

We observe the local partner namely Mr. Teguh Boentoro is an Indonesian businessman of Chinese descent, where he is also business owners of P.T. ABDI RAHARJA engaged in trading and distribution of motorcycle and P.T. ABDI SEJAHTERA engaged in trading and distribution of technical equipment.

 

P.T. BAI was established in the frame work of Foreign Investment (PMA) facility to deal with trading, import and distribution of motorcycle, component and parts. The company has been in operation since July 2006 by import of motorcycle from India in CBU (Completely Built-Up) by using BAJAJ brand. Besides, the company also import of motorcycle component and spare parts from India. To increasing the marketing and operation, P.T. BAI has been built and manages factory in Lippo Cikarang, West Java. The assembling plant located at Jalan Angsana Raya Block A 9 No. 8, Kawasan Industri Delta Silicon, Lippo Cikarang, Bekasi, West Java on a land of 12,000 sq. meters. Then the plant engaged in motorcycle (India motorcycle) assembling industry having been in operation since 2007.

 

Then the plant was relocated to a new factory at Jalan Raya Industri C 4 No. 1, Bekasi International Industrial Estate, Bekasi, West Java standing on 30,000 sq. meters land. The whole products of motorcycles are imported from India in SKD (Semi Knock Down) form of which later assembled in their above factory. The motorcycles produced by the company consist of several types including BAJAJ XCD 125 DTS-Si; PULSAR 180 DTS-Si and PULSAR 200 DTS-Si. Whole products of the company are locally marketed using BAJAJ and PULSAR brands. Mr. Apong Arfiansyah, marketing manager of the company explained the above motorcycle distributed by various dealers such as P.T. BAJAJ ANDALAN SAKTI, P.T. BAJAJ FONTANA PERKASA MOTOR and other dealers in Indonesia. He also added that the dealer and after sales services station of BAJAJ Motorcycle has been reached more than 75 units spreading in big cities in Indonesia. We observe the operation of P.T. BAI has been fluctuating and suffering from loss in the last three years.

 

Generally, demand for motorcycles and components and spare parts of motorcycles has 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%. Business position of P.T. BAI is well enough because its product BAJAJ motorcycle controls 3% local market segment within the last three years. 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 P.T. BAI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The total sales turnover of the company which ended as per 31 March 2009 amounted at Rp. 229.1 billion with a net loss of Rp. 109.1 billion declined to Rp. 141.1 billion with a net loss of Rp. 25.4 billion in 2010. We estimated the sales turnover of the company which ended as per 31 March 2011 amounted at Rp. 195.0 billion with a net loss of Rp. 15.0 billion and projected to go on rising by at least 5% in 2012. We observe that P.T. BAI is supported by foreign partner 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 company usually pays its debts punctually to suppliers. The company usually pays its debts punctually to suppliers. The condense financial statement is shown.

 


 

                                                                                    (In million Rp)

 

Descriptions

As per 31 March

 

2010

2009

 

A.  ASSETS

 

 

a. Current Assets

57,977

135,367

b. Non Current Assets

77,099

70,213

c. Other Assets

-

-

TOTAL ASSETS = TOTAL

LIABILITIES & EQUITY

135,077

205,581

B. LIABILITIES

&STOCKHOLDERS EQUITY

 

 

a. Current Liabilities

61,380

274,935

b. Non Current Liabilities

1,559

1,145

c. Stockholders Equity :

-          Paid Up Capital

-          Foreign Exchange

-          Deficit

Total Stock holders Equity

 

275,972

6,508

210,343

72,138

 

116,937

(2,553)

184,884

(70,499)

C. INCOME STATEMENT

 

 

a. Sales Net

141,124

229,109

b. Loss from operation

(67,236)

(85,082)

c. Net Loss

25,459

109,106

          Notes: Ended 31 March 2010 and 2009 Audited by KAP Handoko & Suparmun

 

The management of P.T. BAI is led by Mr. Tomotaka Ishikawa (62) a professional manager of Japan who experience in motorcycle assembling. Prior he was professional manager trusted Managing Director of YAMAHA MOTOR India. Daily activity he is assisted by Mr. Kulkarni Dinesh Anantrao (46) a professional manager of India with experience in motorcycle assembling and trading. The company'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 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. BAJAJ AUTO INDONESIA is sufficiently fairly good for business transaction.

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.66

UK Pound

1

Rs.81.80

Euro

1

Rs.67.18

 

 

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%)

 

 

 

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