MIRA INFORM REPORT

 

 

Report Date :

17.03.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. VIREMA IMPEX

 

 

Registered Office :

9th Floor, the City Tower Jl. M.H. Thamrin No. 81 Jakarta 10310

 

 

Country :

Indonesia

 

 

Date of Incorporation :

30.03.2004

 

 

Com. Reg. No.:

No. AHU-68213.AH.01.02.Tahun 2008

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading, Import-Export and Distribution of Steam Coal, High Tension Cables, Industrial Paper and Textiles

 

 

No. of Employees :

60 persons       

 

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$ 13.0 million

Status :

Good

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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 Company

 

P.T. VIREMA IMPEX

 

 

Address

 

Head Office

9th Floor, the City Tower

Jl. M.H. Thamrin No. 81

Jakarta 10310

Indonesia

Phones             - (62-21) 3199 7101 (hunting)

Fax                   - (62-21) 3199 7103

E-mail               - marketing@viremaimpex.com

Website            - http://www.viremaimpex.com

Building Area     - 26 storey

Office Space      - 280 sq. meters

Region              - Commercial

Status               - Rent

 

Branch

Jl. Setrasari Kulon No. 38

Bandung, West Java

Indonesia

Phones             - (62-22) 201 5387, 2003153, 2003155

Fax                   - (62-22) 200 4354

Building Area     - 2 storey

Office Space      - 140 sq. meters

Region              - Commercial

Status               - Rent

 

 

Registration data

 

Date of Incorporation :

30 March 2004

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-12173 HT.01.01.TH.2004

  Dated 14 May 2004

- No. AHU-68213.AH.01.02.Tahun 2008

  Dated 23 September 2008

 

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

  a.  The Department of Finance

      NPWP No. 02.116.388.6-056.000

 

  b.  The Investment Coordinating Board

      No. 07/32/I/PMA/2004

      Dated 27 February 2004

 

  c.  The Department of Industry and Trade

      No. 18/32/T/INDUSTRI/J2005

      Dated 20 May 2005

 

Related Companies :

Not available

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - US$. 100,000.- (Rp. 850,000,000.-)

Issued Capital                                  - US$. 100,000.- (Rp. 850,000,000.-)

Paid up Capital                                - US$. 100,000.- (Rp. 850,000,000.-)

 

Shareholders/Owners :

a. Mr. Virendra Kumar Sharda        - US$. 35,000.- (35%)

    Address : Vasanti Kunj,

                    B-24 Kamla Nehru Nagar Ext II,

                    Chopasani Road,

                    Jodhpur (Rajasthan) – India

 

b. Mrs. Rekha Sharda                     - US$. 35,000.- (35%)

    Address : Vasanti Kunj,

                    B-24 Kamla Nehru Nagar Ext II,

                    Chopasani Road,

                    Jodhpur (Rajasthan) – India

 

c. Mr. Rishi Sharda                        - US$. 15,000.- (15%)

    Address : Vasanti Kunj,

                    B-24 Kamla Nehru Nagar Ext II,

                    Chopasani Road,

                    Jodhpur (Rajasthan) – India

 

d. Mr. Manish Sharda                     - US$. 15,000.- (15%)

    Address : Vasanti Kunj,

                    B-24 Kamla Nehru Nagar Ext II,

                    Chopasani Road,

                    Jodhpur (Rajasthan) – India

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Import-Export and Distribution of Steam Coal, High Tension Cables, Industrial Paper and Textiles

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

May 2004

 

Brand Name :

Virema Impex

 

Technical Assistance :

None

 

Number of Employee :

60 persons                                     

 

Marketing Area :

a. Local       - 30%

b. Export     - 70%

 

Main Customers :

a. Textile Industries

b. Food and Beverage Industries

c. Overseas buyer in India, China, Pakistan and others

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Dakai Impex

b. PT. Alam Indorama

c. PT. Adi Sampoerno

d. PT. Sumber Bumi Jaya

e. Etc.

 

Business Trend :

Growing

 

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank INTERNATIONAL INDONESIA Tbk

    Plaza BII, Jalan M.H. Thamrin No. 55

    Jakarta Pusat

 

b. BANGKOK Bank

    Jalam M.H. Thamrin No. 3

    Jakarta Pusat

 

c. AMERICAN EXPRESS Bank

    Jalan H.R. Rasuna Said Kav. X-5

    Jakarta Selatan

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – US$.   80.0 million

2010 – US$.   91.8 million

2011 – US$. 102.0 million

 

Net Profit (estimated) :

2009 – US$. 3.9 million

2010 – US$. 4.5 million

2011 – US$. 5.1 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Virendra Kumar Sharda

Directors                                         - a. Mr. Rishi Sharda

                                                        b. Mr. Manish Sharda

 

Board of Commissioners :

Commissioner                                 - Mrs. Rekha Sharda

 

Signatories :

President Director (Mr. Virendra Kumar Sharda) or one of the Directors (Mr. Rishi Sharda and Mr. Manish Sharda) which must be approved by Board of Commissioner (Mrs. Rekha Sharda)

 

 

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$ 13.0 million on 90 days D/A

 

 

OVERALL PERFORMANCE

 

  P.T. VIREMA IMPEX (P.T. VIM) was established in Bandung on March 2004 with the authorized capital of US$. 100,000.- (Rp. 850,000,000.-) entirely was issued and fully paid up. The founding shareholders of the company are Mr. Virendra Kumar Sharda (35%), Mrs. Rekha Sharda (35%), Mr. Rishi Sharda (15%) and Mr. Manish Sharda (15%).  They are foreign businessmen/woman of Indian descent.  The deed of company was made by Efemia Surjawati Salim, SH., a public notary in Jakarta and it was approved by the Ministry of Law and Human Right in its Decision Letter No. C-12173 HT.01.01.TH.2004 dated 14 May 2004 and No. AHU-68213.AH.01.02.Tahun 2008 dated 23 September 2008.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. VIM obtained a Foreign Capital Investment (PMA) license in export and import of merchandise products having been in operation since May 2004.  Pursuant to company profile, P.T. VIM is a foreign invested trading company based in Indonesia, trading in both domestic and international market. They are importing few Chemicals, textile Fibers and food ingredients into Indonesia and exporting Coal, textile fabrics and Industrial Paper.  Coal trading inhabits 90% of the company’s turnover.  They are mainly procuring from small-medium class miners and exporting on FOB MV basis. For domestic market they are managing entire supply chain, procuring from small-medium class miners and selling till Franco Factory basis (end user's stockpile) and/or FOT basis (free on truck on our hired stockpile). To do so we are maintaining stockpile in Cirebon, Cilegon and Jakarta.   We observed that P.T. VIM is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.

 

Below is the list of products that we are sourcing for overseas buyer from Indonesia, and products that we are sourcing from international market for Indonesian buyers.

a. Indonesian Steam Coal

Coal is an efficient source of energy for the world's fast-growing industries. Indonesia has been recognized as a major international coal producer, which is now one of the largest coal exporters.

 

b. Cables

A cable is two or more wires bound together, typically in a common protective Jacket or sheath. The company is mainly sourcing LV power cables, MV power cables and Telecommunication cables from Indonesia for the export to south Asian countries.

 

c. Paper and Cardboards

Paper is a thin, flat material produced by the compression of fibers. The fibers used are usually natural and composed of cellulose. They are supplying wide range of paper products direct from paper manufacturing industries in Indonesia.

 

d. Textiles

A textile is any type of material made from fibers or other extended linear materials such as thread or yarn, Cotton/Rayon/Polyester, Yarn, Grey Fabric, Dyed & Finished Fabric and Garments. It is the core business in which PT Virema Impex took first step into the trading world.

Generally, the demand for steam coal, cables, paper and cardboards and textile  had been rising by 8% to 10% on the average per annum in the last five years in line with the rapid growth of various industrial sectors in the country.  But, later dwindled as the global economic slowdown since October 2008, followed by tight money policy imposed by Indonesian Central Bank (Bank Indonesia) and also heated by political issue in the country. The demand growth started to awake in June 2009 in line with the amelioration of economic condition in the country. Market competition is very tough on account of large number of other similar companies operating in the country. P.T. VIM business position in this case is not too badly because it has built regular customers and extensive marketing network all across the country and abroad.

 

Until this time P.T. VIM has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. VIM 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 US$. 80.0 million increased to US$. 91.8 million in 2010 rose again to Rp. 102.0 million in 2011 and projected to go on rising by at least 8% in 2012.   The operation in 2011 yielded an estimated net profit of at least US$. 5.1 million and the company has an estimated total networth of at least US$. 20.0 million.  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. DCA is led by Mr. Virendra Kumar Sharda (61) as president director, an Indian businessman with experience in trading, export-import and distribution of merchandise products.  In daily activities, he is assisted by his sons Mr. Rishi Sharda (31) and Mr. Manish Sharda (30), both are as directors.  Mr. Manish Sharda is a graduated from University of Technology, Sydney.  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. VIREMA IMPEX is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.31

UK Pound

1

Rs.79.04

Euro

1

Rs.65.82

 

 

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.