MIRA INFORM REPORT

 

 

Report Date :

19.08.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. AVIA AVIAN

 

 

Registered Office :

Jalan Raya Surabaya – Sidoarjo Km. 19 Desa Wadungasih, Buduran, Sidoarjo

East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

01.03.1983

 

 

Com. Reg. No.:

No. AHU-AH.01.10-04524

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Paint Manufacturing

 

 

No. of Employees :

630 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

 

Status :

Satisfactory

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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


Name of Company

 

P.T. AVIA AVIAN

 

 

Address

 

Head Office & Factory

Jalan Raya Surabaya – Sidoarjo Km. 19

Desa Wadungasih, Buduran, Sidoarjo

East Java

Indonesia

Phones             - (62-31) 8968000, 8969000 (Hunting)

Fax                   - (62-31) 8921734, 8964118

E-mail               - avian@indo.net.id

Land Area         - 19,500 sq. meters

Building Space  -   8,600 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Warehouses

a.   Jalan Raya Narogong Km. 7

      Bekasi

      West Java

      Indonesia

      Phones                   - (62-21) 8222066, 82431431

      Fax                         - (62-21) 8203974

      Land Area               - 2,500 sq. meters

      Building Space        - 1,100 sq. meters

      Region                    - Industrial Zone

      Status                     - Rent

b.   Komp. Pergudangan Mutiara

      Kosambi 1 Block C 6 No. 9-10

      Jalan Prancis Dadap, Tangerang

      Jakarta Barat

      Indonesia

      Phones                   - (62-21) 55955460 (Hunting)

      Fax                         - (62-21) 55955463

      Land Area               - 2,000 sq. meters

      Building Space        - 1,000 sq. meters

      Region                    - Industrial Zone

      Status                     - Rent

 

 


Registration data

 

Date of Incorporation :

01 March 1983

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

   a.                                                No. C-12864.HT.01.04.TH.2005

      Dated 12 May 2005

   b.                                                No. C-UM.02.01.1192

      Dated 24 January 2006

   c.                                                No. AHU-29801.AH.01.02.Tahun 2009

      Dated 01 July 2009

   d.                                                No. AHU-AH.01.10-04524

      Dated 09 February 2012

 

Company Status :

Domestic Investment (PMDN) Company

 

Permit by the Government Department :

   a.                                                The Department of Finance

      NPWP No. 01.203.265.2-603.000

   b.                                                The Department of Trade and Industry

      - No. 864/Kanwil.13/AI/IUT/13/V/1985

        Dated 05 July 1985

      - TDP No. 13171300119

    Dated 24 November 1997

   c.                                                The Capital Investment Coordinating Board

      No. 30/I/PMDN/1999

      Dated 03 June 1999

 

Related Companies :

a. P.T. GLOBAL SUKSES MAKMUR SENTOSA (Trading and Investment Holding)

b. P.T. MARGO MEGA MULIA (Trading and Investment Holding)

c. P.T. MITRA MULIA MAKMUR (Trading and Investment Holding)

d. P.T. PUTRA MULIA MAKMUR (Can Container Manufacturing)

e. P.T. SINAR SURYA SARANA SUKSES (Trading and Investment Holding)

f.  P.T. SUI SURYA SANTOSA (Trading and Investment Holding)

g. P.T. SURYA INTERNATIONAL PERKASA (Trading and Investment Holding)

h. P.T. WIRA ALJU REJEKI (Trading and Investment Holding)

i.  UD. TEXINDO (Trading and Distribution of Paint)

j.  Etc.

 

 

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 220,000,000,000.-

Issued Capital                                 - Rp. 124,020,000,000.-

Paid up Capital                               - Rp. 124,020,000,000.-

 

Shareholders/Owners :

a. P.T. GLOBAL SUKSES MAKMUR SENTOSA       - Rp. 39,686,000,000.- (32%)

    Address : Desa Wadungasih RT.011, RW.003

                    Buduran, Sidoarjo, East Java

b. P.T. WIRA LAJU REJEKI                                    - Rp. 39,686,000,000.- (32%)

    Address : Desa Wadungasih RT.011, RW.003

                    Buduran, Sidoarjo, East Java

c. P.T. SINAR SURYA SARANA SUKSES             - Rp. 12,402,000,000.- (10%)

    Address : Jl. Kapten Pierre Tendean No. 21B

                    Malang, East Java

d. P.T. MARCO MEGA MULIA                                 - Rp. 12,402,000,000.- (10%)

    Address : Jl. Basuki Rahmat No. 3

                    Klojen, Malang, East Java

e. Mr. Ruslan Tanoko                                             - Rp.   7,441,000,000.- (  6%)

    Address : Jl.Graha Family Blok O-10

                    Surabaya, East Java

f. Mr. Rudi Tanoko                                                 - Rp.   3,721,000,000.- (  3%)

    Address : Jl. Graha Family Blok O-10

                    Surabaya, East Java

g. Mr. Rony Tanoko                                                - Rp.   3,721,000,000.- (  3%)

    Address : Jl. Graha Family Blok K.9

                    Surabaya, East Java

h. Mr. Robert Christian Tanoko                              - Rp.   4,961,000,000.- (  4%)

    Address : Jl. Dr. Cipto No. 3

                    Surabaya, East Java

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Paint Manufacturing

 

Production Capacity :

a. Paint                                           - 12,950 tons p.a.

b. Meni                                           -   1,200 tons p.a.

c. Plamur                                        -   1,300 tons p.a.

d. Flinkote                                       -      320 tons p.a.

e. Oil Paint                                      -   1,500 tons p.a.

f. Alkyd Resin                                 -   2,000 tons p.a.

g. Acrylic Resin                               -      150 tons p.a.

h. Maleic Resin                                -   1,200 tons p.a.

i. Melamine Resin                            -      180 tons p.a.

j. Emulsion Resin                            -   1,200 tons p.a.

k. Can Package                               -   1,200 tons p.a.

 

Total Investment :

a. Equity Capital                              - Rp. 55.0 billion

b. Loan Capital                                - Rp. 12.0 billion

c. Total Investment                          - Rp. 67.0 billion

 

Started Operation :

1984

 

Brand Name :

Avitex

 

Technical Assistance :

None

 

Number of Employee :

630 persons

 

Marketing Area :

Local    - 100%

 

Main Customer :

Building Material Shops

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ICI PAINT INDONESIA

b. P.T. DANAPAINT INDONESIA

c. P.T. GAJAH TUNGGAL PRAKARSA

d. P.T. JOTUN INDONESIA

e. Etc

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CENTRAL ASIA Tbk

      Jalan A. Yani No. 39-A

      Surabaya, East Java

      Indonesia

b.   P.T. Bank PANIN Tbk

      Jalan Raya Darmo No. 57

      Surabaya, East Java

      Indonesia

c.   P.T. Bank PERMATA Tbk

      Jalan Tunjungan No. 52

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 395.0 billion

2010 – Rp. 448.0 billion

2011 – Rp. 510.0 billion

2012 – Rp. 580.0 billion

 

Net Profit (estimated) :

2009 – Rp. 28.6 billion

2010 – Rp. 32.5 billion

2011 – Rp. 37.0 billion

2012 – Rp. 42.5 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Wijono Tanoko

Director                                          - Mr. Ruslan Tanoko

Marketing Manager                          - Mr. Johnny Lukas

 

Board of Commissioners :

President Commissioner                  - Mr. Hermanto Tanoko

Commissioner                                 - Mr. Soetikno Tanoko

 

Signatories :

President Director (Mr. Wijono Tanoko) or the Director (Mr. Ruslan Tanoko) which must be approved by Board of Commissioners

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

 

      P.T. AVIA AVIAN (P.T. AA) was established in Sidoarjo, East Java, in March 1983 with an authorized capital of Rp. 200,000,000 of which Rp. 10,000,000 was issued and paid up. The company was founded by Mr. Tun Dwiputra, Mr. Sutikno Tanoko and his sons and daughters, namely Mr. Wijono Tanoko, Mr. Hermanto Tanoko, Mrs. Kristien Tanoko, Mrs. Liliana Tanoko, and Mrs. Muliawati Tanoko (an Indonesian business family of Chinese extraction). The company notary deed has been changed a couple of times. In December 1999 the company's authorized capital was increased to Rp. 20,000,000,000 with the issued and paid up capital amounting to Rp. 5,000,000,000. The articles of association of the company have frequently been revised. In January 2007, the authorized capital was raised to Rp. 220,000,000,000 of which Rp. 55,000,000,000 was issued and fully paid up and concurrently the shareholders of the company are P.T. GLOBAL SUKSES MAKMUR SENTOSA, P.T. WIRA LAJU REJEKI, P.T. SUI SURYA SENTOSA, P.T. SINAR SURYA SARANA SUKSES, P.T. SURYA INTERNATIONAL PERKASA and P.T. MARCO MEGA MULIA, all are private companies.

 

      Most recently by notarial deed of public notary Rusdi Muljono, SH., No. 58 dated December 29, 2012 the issued capital was raised to Rp. 124,020,000,000.- and fully paid up.   The capital structures and shareholders composition of P.T. AA in details are as shown on page-3 & 4 of this report.  The amendment to Article of Association has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-04524 dated February 9, 2012. No changes have been effected in term of its shareholding composition and capital structures to date.  

 

      P.T. AA has been operating since 1984 in paint manufacturing industry. Its plant is located at Jalan Raya Surabaya-Sidoarjo Km.19, Buduran, Sidoarjo, East Java, on a land of some 19,500 sq. meters. Previously P.T. AA was a non-facility company. But since June 1999 P.T. AA acquired a Domestic Capital Investment (PMDN) license to expand its business. It has a production capacity of paint 12,950 tons, meni of 1,200 tons, plamur of 1,300 tons, flinkote of 320 tons, oil paint of 1,500 tons, alkyd resin of 2,000 tons, acrylic resin of 150 tons, maleic resin of 1,200 tons, melamine resin of 180 tons, emulsion resin of 1,200 tons and can package of 1,200 tons per annum respectively. The plant has produced various paints, such as, wood, iron, wall, roof tile paints, etc., and synthetic materials like thinner, varnish, epoxy, melamine resin, etc. Mr. Johny Lukas, a marketing manager of the company said to our inquiry the products are all marketed locally mainly to property companies, woodworking industries, automotive workshop and houses. The products are sold with many brands and the most popular one is AVIAN for wood paint and iron, AVITEX for wall and roof tile and many other brands like AVIA, BOYO, BELMAS, TAN, SUZUKA and TROPIC. It controls a wide marketing network with a number of distributors in many major cities.  We observe the Company has a wide marketing network in many major cities in the country.

 

      Generally, demand for paint products has been increasing by 6% to 8% per annum in the last five years having close relation with the growth of various industrial sectors including property sectors like real estate, office buildings, apartments, shopping centers, manufacturing industrial sectors and fabrication, shipping sectors, automotive industrial sectors and other industrial sectors. The demand for paint is estimated to be rising by at least 5% in the coming five years. The competition is very tight on account of lots of similar company operating in the country. Business position of P.T. AA is favorable for it has controlled a wide marketing network at home and abroad and its brand has been widely known among consumers in the country.

 

       Until this time P.T. AA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.   The management of P.T. AA is very reclusive towards outsiders and rejected to disclose its financial condition.  We estimated that total sales turnover of the company in 2010 amounted of Rp. 448.0 billion and increased to Rp. 510.0 billion in 2011 and rose again to Rp. 580.0 billion in 2012.   The operation in 2012 yielded an estimated net profit at least Rp. 42.5 billion and the company has an estimated total networth at Rp. 240.0 billion.   It is forecasted that total sales turnover of the company will increase at least 8% in 2013.  So far, we have never heard of the company having been black listed by the Central Bank (Bank Indonesia). Mrs. Ina, the export import staff of the company disclosed that the company usually pays its debts punctually to suppliers.  

 

      The management of P.T. AA is led by Mr. Wijono Tanoko (61) a businessman with more than 20 years experience in paint manufacturing and trading.  He has replaced the position of his younger brother Mr. Hermanto Tanoko (51) being at present as the president commissioner of the company. Daily operation he is assisted by his younger brother Mr. Ruslan Tanoko (38) as a director. The management is handled by experienced staff in this business, having maintained a wide business relation with private businessmen at home and abroad as well as with government sectors. So far, we did not hear that the company’s management involved in the business malpractices or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. AVIA AVIAN is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.82

UK Pound

1

Rs.96.57

Euro

1

Rs.82.45

 

 

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%)

 

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.