MIRA INFORM REPORT

 

 

Report Date :

29.12.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. INDOWARCO JAYA

 

 

Registered Office :

Jalan K.H. Mas Mansyur No. 44 F, Jakarta Pusat, 10230

 

 

Country :

Indonesia

 

 

Date of Incorporation :

1990

 

 

Com. Reg. No.:

No. AHU-09174.AH.01.02.TH.2011

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading and Distribution of Carpet Rugs and Prayer (Mats) Rugs

 

 

No. of Employees :

13 persons

 

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$ 73,600

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Indonesia - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, grew an estimated 6.1% and 6.4% in 2010 and 2011, respectively. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a small current account surplus, a fiscal deficit below 2%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2012 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of rising oil prices.

 

Source : CIA

 

 

 


Name of Company

 

P.T. INDOWARCO JAYA

 

Address

 

Head Office

 

Jalan K.H. Mas Mansyur No. 44 F

Jakarta Pusat, 10230

Indonesia

Phones - (62-21) 3915295, 3106562

Fax                   - (62-21) 3915301, 8581066

E-mail               - indowarc@centrin.net.id

Building Area    - 2 storey

Office Space    - 110 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

1990

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-09174.AH.01.02.TH.2011

Dated 23 February 2011

 

Company Status :

Private National Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.573.322.3-072.000

 

Related Company :

P.T. WAZRAN INTI AMANI (Trading and Distribution of Building Materials)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         : Rp. 1,000,000,000.-

Issued Capital   : Rp.    600,000,000.-

Paid up Capital : Rp.    600,000,000.-

 

Shareholders/Owners :

a. Mr. Abdul Junaid Bauzir                                                       - Rp. 200,000,000.-

    Address : Jl. Cipinang Cempedak III No. 7-A

                    RT. 010 RW. 003, Kel. Cipinang

                    Cempedak, Kec. Jatinegara, Jakarta

                    Timur, Indonesia

b. Mr. Ahmad Janaid Bawazier                                                 - Rp. 200,000,000.-

    Address : Jl. Otista III No. 114, RT. 002 RW. 001

                    Kel. Cipinang Cempedak, Kec. Jati

                    negara, Jakarta Timur

c. Mr. Geis Djoened Bawazier                                                   - Rp. 200,000,000.-

    Address : Perumahan Puncak Dieng II-I No. 1&2

                    RT. 004 RW. 007, Kel. Kalisongo, Kec.

                    Dau, Malan, Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading and Distribution of Carpet Rugs and Prayer (Mats) Rugs

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1990

 

Brand Name :

Indowarco Jaya

 

Technical Assistance :

None

 

Number of Employee :

13 persons

 

Marketing Area :

Local    - 80%

Export  - 20%

 

Main Customer :

Buyers in Malaysia and Middle East

 

Market Situation :

Very Competitive

 

Main Competitors :

a. C.V. BINTANG TIMUR

b. P.T. CIPTAGRAHA MITRA

c. P.T. GRAHA IRASSLESTARI

d. P.T. HERCULON CARPET

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.         P.T. Bank MANDIRI Tbk

                        Wisma Bisnis Indonesia

                        Jalan. K.H. Mas Mansyur No. 12 A

                        Jakarta Pusat

                        Indonesia

b.         P.T. Bank CENTRAL ASIA Tbk

                        Ruko Sudirman Park Block B/9

                        Jalan K.H. Mas Mansyur Kav. 35

                        Jakarta Pusat

                        Indonesia

c.         P.T. Bank CIMB NIAGA Tbk

                        Jalan K.H. Mas Mansyur No. 75

                        Jakarta Pusat

                        Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 4.0 billion

2010 – Rp. 4.6 billion

2011 – Rp. 5.0 billion

2012 – Rp. 2.8 billion (January – June)

 

Net Profit (estimated) :

2009 – Rp. 0.3 billion

2010 – Rp. 0.4 billion

2011 – Rp. 0.5 billion

2012 – Rp. 0.3 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                        - Mr. Abdul Muniem Junaid Bauzir

 

Board of Commissioners :

Commissioner   - Mr. Ahmad Junaid Bawazier

 

Signatories :

Director (Mr. Abdul Muniem Junaid Bauzir) which must be approved by Board of Commissioner

 

 

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$ 73,600 on 90 days D/A

 

 

OVERALL PERFORMANCE

 

P.T. INDOWARCO JAYA (P.T. IWJ) was incorporated in Jakarta in 1990 by Mr. Abdul Muniem Junaid Bauzir, Mr. Ahmad Junaid Bawazier and Mr. Geis Djoened Bawazier, they are Indonesian businessmen of Arab descents. The company notary deed has been changed a couple of times and based on the latest revision of notary deed of Fauzah Askar, SH., No. 02 dated 5 January 2011 the authorized capital was amounted at Rp. 1,000,000,000 issued capital of Rp. 600,000,000 entirely paid up. The latest composition of it’s shareholders are Mr. Abdul Muniem Junaid Bauzir (33.33%), Mr. Ahmad Junaid Bawazier (33.33%) and Mr. Geis Djoened Bawazier (33.33%). The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-09174.AH.01.02.TH.2011 dated February 25, 2011.

 

We observe that Mr. Ahmad Junaid Bawazier is also business stakes owner of P.T. WAZRAN INTI AMANI a private national company dealing with trading and distribution of building materials.

 

P.T. IWJ is a private national company to be engages in the field of trading and distribution of carpet rugs and prayer (mats) rugs. Initially the company sells of hardware by imports of in China, textile products from India and others. However currently the company is sells and distributes of carpet rugs and prayer mats (rugs) which brands KANO, AL MASHAD and ALIH. The whole products produced by contract manufacturer (CMT) of P.T. UNIVERSAL CARPET AND RUGS which operates factory located in Gunung Putri, Bogor, West Java. To supports of its operation, P.T. IWJ imports of yarns and other materials from India and the rest from locals. Management of the company said the company produces of 500,000 sq. meters of prayer mats (rugs) and chair (cloches) of 400,000 sq. meters per annum. Basically, P.T. IWJ did not have factory facility and then the products produced under contract manufacturer with P.T. UNIVERSAL CARPET AND RUGS. Some 80% of the products marketed locally through distributors, trader & textile shops in Jakarta, Surabaya, Bandung, Yogyakarta and other cities in Indonesia. Besides, some of the products is exported to Malaysia and Middle East. We observe the operation of P.T. IWJ has been growing and developing well in the last three years.

 

Generally we find the local demand for carpet rugs had been rising by 6% to 7% per year within the last five years in line with the rapid growth of hotels, luxury houses, office buildings, apartments and other sectors in that period. But since the global economic crisis and tight money policy being imposed by Bank Indonesia in October 2008 the demand had been fluctuating. However since the early 2009 the demand has been increasing due to the amelioration economic condition in the country. It is estimated the demand will rise again in line with a slight amelioration of economic condition, stability of political and security in the country. Competition is very tight due to a large number of similar companies operating in the country, such as, P.T. VETVET TEXTIL INDONESIA, P.T. NOBEL INDAH CARPET INDUSTRIES, P.T. INDONESIA CARPET MANUFCTURING, P.T. HERCULON CARPET, P.T. RAINBOW INDAH CARPETS, P.T. MULTI WARNA, etc. Business position of P.T. IWJ is not so critical for it has maintained a wide business at home and overseas.

   

Until this time P.T. IWJ has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. IWJ is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2009 amounted to Rp. 4.0 billion rose to Rp. 4.6 billion in 2010 increased to Rp. 5.0 billion in 2011. As from January to June 2012 the sales turnover has reached at least Rp. 2.8 billion with a net profit of Rp. 0.3 billion and its sales is projected to go on rising by at least 4% in 2013. The company has an estimated total net worth of at least Rp. 1.7 billion.

 

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 management of P.T. IWJ is led by Mr. Abdul Muniem Junaid Bauzier (51) a businessman and professional manager with experience in trading and distribution of carpet rugs and prayer mats. 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. INDOWARCO JAYA is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.85

UK Pound

1

Rs.88.40

Euro

1

Rs.72.63

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.