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Report Date : |
16.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
P.T. TVS MOTOR COMPANY INDONESIA |
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Registered Office : |
Gedung Wirausaha, 3rd Floor Jl. H.R. Rasuna Said Kav. C-5 Kuningan, Jakarta 12920 |
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Country : |
Indonesia |
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Date of Incorporation : |
08.08.2005 |
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Com. Reg. No.: |
No. AHU-AH.01.10-19199 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Motorcycle and Component Manufacturing |
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No. of Employees : |
480 persons |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Indonesia |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDONESIA - ECONOMIC OVERVIEW
Indonesia, a vast polyglot nation, grew more than 6% annually in 2010-12. 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 fiscal deficit below 3%, 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 2013 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 high oil prices.
Source
: CIA
P.T.
TVS MOTOR COMPANY INDONESIA
Head
Office
Gedung Wirausaha, 3rd
Floor
Jl.
H.R. Rasuna Said Kav. C-5
Kuningan,
Jakarta 12920
Indonesia
Phone - (62-21) 3002 0570 (hunting)
Fax. -
(62-21) 3002 0576
Building Area - 12 storey
Office Space - 240 sq. meters
Region - Commercial
Status - Rent
Factory
Jl. Surya, Madya, Kav. I30
Surya Cipta City of Industry
Desa
Kutanegara, Ciampel, Karawang
West
Java
Phone - (62-267) 861 0124, 861 0128
Fax. -
(62-267) 861 0124
Land Area - 20.0 hectares
Office Space - 8.5 hectares
Region - Industrial
Estate
Status - Rent
Date of
Incorporation :
08 August 2005
Legal Form :
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No. :
The Law of Law and
Human Rights
a. No. C-24361 HT.01.01.TH.2005
Dated 05 September 2005
b. No. AHU-AH.01.10-22900
Dated 31 October 2008
c. No. AHU-AH.01.10-19199
Dated 20 May 2013
Company Status :
Foreign Investment (PMA) Company
Permit by the
Government Department :
a. The
Department of Finance
NPWP No. 01.869.683.1-055.000
b. The Capital
Investment Coordinating Board
- No. 750/I/PMA/2005
Dated 12 July 2005
- No. 609/III/PMA/2006
Dated 26 April 2006
- No. 665/III/PMA/2006
Dated 22 May 2006
Related/Affiliated Companies :
a. TVS MOTOR (Singapore)
Pte. Ltd., of Singapore (Investment Holding)
b. TVS MOTOR COMPANY (Europe) BV., of the Netherlands (Investment
Holding)
Capital Structure
:
Authorized Capital - Rp.
974,000,000,000.-
Issued Capital - Rp.
935,040,000,000.-
Paid up Capital - Rp.
935,040,000,000.-
Shareholders/Owners
:
a. TVS MOTOR (Singapore) Pte. Ltd., of Singapore - 46.15%
b. TVS MOTOR COMPANY (Europe) BV., of the Netherlands - 21.56%
c. TVS MOTOR COMPANY Ltd., of India -
32.29%
Lines of Business
:
Motorcycle and Component Manufacturing
Production
Capacity :
a. Motorcycles - 300,000 units
p.a.
b. Motorcycle
Components - 380,000 sets
p.a.
Total Investment :
a. Equity Capital -
US$. 27.6 million
b. Loan Capital - US$. 15.0 million
c. Total Investment -
US$. 42.6 million
Started Operation
:
June 2007
Brand Name :
TVS MOTOR
Technical
Assistance :
TVS MOTOR Ltd., of India
Number of Employee
:
480 persons
Marketing Area :
Domestic - 100%
Main Customers :
Motorcycle distributors and Dealers in Java, Sumatra and Kalimantan
islands
Market Situation :
Very Competitive
Main Competitors :
a. P.T. ASTRA HONDA MOTOR
b. P.T. INDOMOBIL SUZUKI INTERNATIONAL
c. P.T. YAMAHA MOTOR
INDONESIA
d. P.T. KAWASAKI MOTOR
INDONESIA
e. P.T. BAJAJ MOTOR
INDONESIA
e. Etc.
Business Trend :
Fluctuating
B a n k e r s :
a. ABN AMRO BANK N.A.
ABN AMRO Bank Building
Jalan Ir. H. Juanda No. 12
Jakarta Pusat
Indonesia
b. P.T. Bank MANDIRI Tbk
Karawang Branch
Bekasi, West Java
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
Annual Sales
(estimated) :
2010 – Rp. 238.0 billion
2011 – Rp. 256.0 billion
2012 – Rp. 227.0 billion
Net Profit (Loss)
:
2010 – Rp. 15.0 billion
2011 – Rp. 16.3 billion
2012 – Rp. 14.5 billion
Payment Manner :
Fairly good
Financial Comments
:
Satisfactory
Board of Management :
President Director -
Mr. Ramaswamy Anandakrishnan
Director - Mr. Venkataraman Thiyagarajan
Board of Commissioners :
President Commissioner - Mr. Kaviratne Hihal Vijaya Devadas
Commissioners -
a. Mr. Kunanth Narayanan Radhakrishnan
b. Mr. James William Castle
c. Mr. Harihara Iyer Lakshmanan
d. Mr. Rudjito
e. Mr. Juwono Sudarsono
f. Mr.
Rangaswami Ramakrishnan
g. Mr. Yang Soo Kim
h. Mr. Purnomo Prawiro
i. Mr.
Yoshiteru Takahashi
Signatories :
President Director (Mr. Ramaswamy
Anandakrishnan) or Director (Mr. Venkataraman Thiyagarajan) which must be
approved by Board of Commissioners
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded with monitor
Proposed Credit Limit :
Small amount – periodical review
P.T.
TVS MOTOR COMPANY INDONESIA (P.T. TVS MOTOR) was established on 8 August 2008
with the authorized capital of US$ 40,000,000 of which US$ 27,600,000 was
issued and fully paid up. The founding shareholders of the company are TVS
MOTOR (Singapore) Pte.Ltd of Singapore and TVS MOTOR COMPANY (Europe) B.V. of
the Netherlands. The Articles of
Association was approved by the Minister of Law and Human Rights of the
Republic of Indonesia through its Decision Letter No. C-24361 HT.01.01.TH.2005,
dated September 05, 2005. The articles
of association of the company have frequently been changed. In October 2008 the
authorized capital was raised and converted to rupiah (IDR) to Rp.
584,400,000,000 issued and paid up capital to Rp. 438,300,000,000. Latest, in April 2013, the authorized capital
was raised again to Rp. 974,000,000,000.- of which Rp. 935,040,000,000.- was
issued and fully paid up. Since then,
the shareholders of P.T. TVS MOTOR are TVS MOTOR (Singapore) Pte. Ltd., of
Singapore (46.15%), TVS MOTOR COMPANY (Europe) BV., of the Netherlands (21.56%)
and TVS MOTOR COMPANY Ltd., of India (32.29%).
The amendment to Articles of
Association has been approved by the Minister of Law and Human Rights of the
Republic of Indonesia through Decision Letter No. AHU-AH.01.10-19199 dated May
20, 2013. No changes have been effected in term of its shareholding composition
and capital structures to date.
P.T. TVS MOTOR obtained a Foreign Capital
Investment (PMA) facility issued by the Capital Investment Coordinating Board
(BKPM) in July 2005 to deal with motorcycle industry. Its plant is located in
Surya Cipta Industrial Estate, Karawang, West Java on a land of 20.0
hectares. The development of its plant
has absorbed an investment of US$ 42.0 million coming from own capital of US$
27.6 million while the rest from loans. Initially, the company planned to
produce 120,000 units of motorcycles and 140,000 sets of motorcycle components
per annum. However, in April 2006 the annual production of the company was
increased to 300,000 units of motorcycles and 380,000 sets of motorcycle
components.
P.T.
TVS MOTOR has been in commercial operation since June 2007 spending an
investment of US$ 50 million. The first production presented by P.T. TVS MOTOR
is duck typed motorcycle with capacity of 110 cc namely TVS NEO with local
content of 40%. In March 2008, P.T. TVS MOTOR launched its new products namely
sport TVS Apache RTR with capacity of 160 cc which is the development of TVS
Apache 150 cc in India. Then, the
Company launched again its new products namely sport type TVS Apache RTR 160 cc
and 180 cc, also TVS New XR 110 cc. We observe that the Company already has
wide marketing in the country including in a number of major cities in Java,
Sumatra and Kalimantan. The company has
opened 200 outlets and dealers up to end 2012.
We observed that P.T. TVS MOTOR is classified as a small sized company
of its kind in the country of which the operation has been fluctuating in the
last three years.
Generally,
demand for motorcycles has close relation with the growth of motorcycle
industries in the country. According to the Indonesian Motorcycle Manufacturer
Association (AISMI), total motorcycle sales in Indonesia increased
significantly since 2001 in which in the previous three years the sales dropped
as the impact of the economic crisis in the country since 2007. According to
AISMI that national motorcycle sales in 2004 amounted to 3,900,598 units
increased to 5,089,426 units in 2005 dropped to 4,470,722 units in 2006 to
4,713,895 units in 2007 to 6,280,700 units in 2008 and dropped again to
5,882,000 in 2009. In 2010, motorcycle
sales increased again to 7,481,815 units to go up to 8,034,535 units in 2011
and dropped to 7,141,586 units in 2012.
The growth of motorcycle and car sales in Indonesia in 2004 to 2012 is
pictured on the following table:
|
Year |
Motorcycle (units) |
Motorcar (units) |
|
2004 |
3,900,598 |
483,148 |
|
2005 |
5,089,426 |
533,917 |
|
2006 |
4,470,722 |
318,904 |
|
2007 |
4,713,895 |
433,341 |
|
2008 |
6,280,799 |
603,774 |
|
2009 |
5,882,000 |
483,548 |
|
2010 |
7,481,815 |
745,390 |
|
2011 |
8,043,535 |
894,164 |
|
2012 |
7,141,586 |
1,161,000 |
Source: GAIKINDO and the
Indonesian Motorcycle Manufacturer Association (AISMI)
Until
this time P.T. TVS MOTOR has not been registered with Indonesian Stock Exchange,
so that they shall not obliged to announce their financial statement. The
management of P.T. TVS is very reclusive towards outsiders and rejected to
disclose its financial condition. We observed that total sales turnover of the
company in 2010 amounted to Rp. 238.0 billion increased to Rp. 256.0 billion in
2011 and dropped to Rp. 227.0 billion in 2012.
We estimated the company has yielded a net profit at least Rp. 14.5
billion in 2012 and the company has an estimated total asset at least 1,120.0 billion. It is projected that total sales turnover of
the company will increase at least 4% in 2013.
We observe that P.T. TVS MOTOR is supported by financially strong behind
it. So far, we did not hear 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. TVS MOTOR is led by Mr. Ramaswamy Anandakrishnan (47) as
president director, a professional manager from India with experience in
motorcycle assembling and trading. In
his daily activities, he is assisted by Mr. Venkataraman Thiyagarajan (52) as
director. 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. TVS MOTOR is
sufficiently fairly good for business transaction.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.51 |
|
|
1 |
Rs.94.98 |
|
Euro |
1 |
Rs.81.62 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.