MIRA INFORM REPORT

 

 

Report Date :

17.10.2012

 

IDENTIFICATION DETAILS

 

Name :

SONG HUA

 

 

Registered Office :

Jalan Diponegoro Gang Pembangunan 88 No. 2/4, Pontianak, 78117, West Kalimantan

 

 

Country :

Indonesia

 

 

Year of Establishment :

2007

 

 

Com. Reg. No.:

Not Available 

 

 

Legal Form :

Sole Proprietary Concern

 

 

Line of Business :

Trading, Import and Distribution of Agricultural Commodities Products

 

 

No. of Employees :

05 employees

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

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 Concern 

 

SONG HUA

 

 

concern Address

 

Head Office

Jalan Diponegoro Gang Pembangunan 88 No. 2/4

Pontianak, 78117

West Kalimantan

Indonesia

Phones             - (62-561) 738397

Mobile Phone    - 0813 452203339

Fax                   - (62-561) 744039

E-mail               - deny_heng@hotmail.com

Building Area    - 1 storey

Office Space    - 120 sq. meters

Region              - Housing Complex

Status               - Rent

 

 

Date of Incorporation

 

2007’s

 

 

Legal Form

 

Sole Proprietary Concern

 

 

Concern Reg. No.

 

Not Available

 

 

Concern Status

 

Private National Concern

 


Permit by the Government Department

 

The Department of Finance

Not Available

 

 

Related Concern 

 

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 200 million

 

Owners :

a. Mr. Tony Heng                                    

b. Mr. Deny Heng

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Import and Distribution of Agricultural Commodities Products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

2007’s

 

Brand Name :

Song Hua

 

Technical Assistance :

None

 

Number of Employee :

5 persons                                      

 

Marketing Area :

Local       - 100%

 

Main Customer :

Traditional Markets

 

Market Situation :

Very Competitive

 

Main Competitors :

a. ANUGRAH PANGAN

b. C.V. ARDANKA

c. UD. CITRA KARYA MANDIRI

d. UD. RAJA AGUNG CURAH

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Banker :

P.T. Bank DBS INDONESIA

Jalan Sisingamangaraja No. 115

Pontianak

West Kalimantan

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 1.2 billion

2010 – Rp. 1.5 billion

2011 – Rp. 1.7 billion

2012 – Rp. 0.9 billion (January – June)

 

Net Profit (estimated) :

2009 – Rp. 0.2 billion

2010 – Rp. 0.3 billion

2011 – Rp. 0.4 billion

2012 – Rp. 0.1 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Tony Heng

Manager                                         - Mr. Deny Heng

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. Tony Heng) is only the authorized person to sign the loan on behalf of the concern  to absorb.

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

Based on investigation the correct number telephone of the Subject is (0561) 738397 not (6142) 2422912 as stated in your order ref. no. 190175 dated 9 August 2012.

 

SONG HUA (SH) was established in Pontianak, West Kalimantan on 2007 with the status of Sole Proprietary Concern . Founders and owners of the concern  are Mr. Tony Heng and his young brother Mr. Deng Heng, both are Indonesian business family of Chinese descents. Being as Sole Proprietary Concern , the amount of its authorized capital was not mentioned at the time of its establishment. We estimate, SONG HUA has own capital of about Rp. 200 million and it will be rising in line with the progress of its business operation.

According to the investigation results, SONG HUA is a private national concern  engaged in trading, import and distribution of agricultural commodities products. Firstly according to family members (Heng family) explained that SONG HUA is engaged in trader and importer of dry chili, red onion and garlic which imported from China, India and Vietnam. The whole products marketed locally through traditional market in West Kalimantan. However after we contacted Mr. Tony Heng and Mr. Deny Heng, both of are explained that they has never imported agriculture commodities products from overseas and there was no business ties with overseas. Mr. Tony explained SONG HUA there was no activity up to present. Besides, both of are very terrified when we asked concern ’s activity. Mr. Tony and Mr. Deny explained that SONG HUA did not have a business relationship with the foreign and domestic as well.  

 

We have noticed that the demand for agricultural products had increased some 10% to 11% per annum in the last five years in line with the growth of industrial manufacturing in the country and international market. In the coming years, the growth rate of demand is estimated at about 6% to 7% per annum. The present market situation for agricultural products is very competitive for a large number of similar companies operating in the country.

 

Meanwhile, competition is quite heavy in the export import of agricultural products with many companies now doing business in this field in Indonesia.

  

Until this time SONG HUA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of SONG HUA is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the concern  in 2009 amounted to Rp. 1.2 billion rose to Rp. 1.5 billion in 2010 increased to Rp. 1.7 billion in 2011. As from January to June 2012 the sales turnover has reached at least 0.9 billion with a net profit of Rp. 0.1 billion and projected to go on rising by at least 3% in 2013. 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 SONG HUA is led by Mr. Tony Heng (48) a businessman with experience in trading, import and distribution of agriculture commodities products. 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. Considering SONG HUA is very reclusive to give the concern ’s business activity we recommend to treat prudently in extending a loan to the concern .

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.12

UK Pound

1

Rs.85.15

Euro

1

Rs.68.60

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.