MIRA INFORM REPORT

 

 

Report Date :

11.12.2013

 

IDENTIFICATION DETAILS

 

Name :

ERA BARU TOKO

 

 

Registered Office :

Jalan Jembatan Besi No. 16, RT. 02 RW. 03, Jakarta Barat, 11320

 

 

Country :

Indonesia

 

 

Date of Incorporation :

1980’s

 

 

Legal Form :

Sole Proprietary Company

 

 

Line of Business :

Trading and Distribution of Motorcycle Component and Parts

 

 

No. of Employees :

5

 

 

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 :

Slow But Correct 

 

 

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

BASIC SEARCH

 

Name of Company :

ERA BARU Toko

 

A d d r e s s :

Head Offic

Jalan Jembatan Besi No. 16, RT. 02 RW. 03

Jakarta Barat, 11320

Indonesia

Phones             - (62-21) 631 0631, 631 0634, 631 6204

Fax                   - (62-21) 631 0634

Building Area     - 1 storey

Office Space      - 100 sq. meters

Region              - Commercial

Status               - Owned

 

Date of Incorporation :

1980’s

 

Legal Form :

Sole Proprietary Company

 

Company Reg. No. :

Not Available

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

Not Available

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 400 million

 

Shareholders/Owners :

Mr. Liem Thong

 

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading and Distribution of Motorcycle Component and Parts

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1980’s

 

Brand Name :

Era Baru

 

Technical Assistance :

None

 

Number of Employee :

5 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Motorcycle and car services station, spare parts distributors and dealers

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. AMANDA RUANG MOTOR

b. ANEKA JAYA MOTOR

c. P.T. DENSO CENTRA

d. PD. OMAR KHAYYAM 

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

Jalan Prof. Dr. Latumenten No. 721 I-J

Jakarta Barat

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 3.0 billion

2011 – Rp. 3.3 billion

2012 – Rp. 3.6 billion

2013 – Rp. 1.9 billion (January – June)

 

Net Profit (estimated) :

2010 – Rp. 180 million

2011 – Rp. 198 million

2012 – Rp. 216 million

2013 – Rp. 114 million (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Liem Thong

Vice Director                                   - Mr. Anton

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. Liem Thong) is only the authorized person to sign the loan on behalf of the company.

 

 

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

 

 

OVERALL PERFORMANCE

 

ERA BARU Toko was established in Jakarta in 1980 with a status of sole proprietary company. The founder and owner is Mr. Liem Thong, a businessman of Chinese extraction. Being as Sole Proprietary Company, the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, the company has own capital of about Rp. 400 million and it will be rising in line with the progress of its business operation.

 

ERA BARU Toko is a sole proprietary company started to be operating since 1980’s engaged in the field of trading, import and distribution of motorcycle component and parts. The motorcycle components and parts used for two-wheel motor vehicles (scooter) and three-wheel motor vehicles (BAJAJ). The spare part products being traded by the company comprise cir clips, spring roll pins, gear ranks, free wheels, sprockets, chain covers, chain wheels, hose clips, cork sheets, cylinder linear, piston rings and others. Mr. Anton, the son of Mr. Liem Thong disclosed that all of the merchandise products are imported from India. In addition, the merchandise products are sold to various repair shops repairing scooters, bajaj’s and cars in Jakarta, Bandung, Surabaya, Medan and other big cities in the country. We see that ERA BARU Toko operation has been growing in the last three years.

 

In general, the demand for motorcycle and component has been growing in the last several years in line with the progress achieved by Indonesian motorcycle manufacturing industry. We observe that motorcycles assembling industries have kept on increasing in the last several years. However, the competition is very tight because motorcycles assembled in the People Republic of Chinese and South Korea is sold for cheaper compared with Japanese ones. Besides that, the competition is very tight because there is lot of motorcycle imports products marketed in the country. The development of motorcycle industry in the country can be seen from the Indonesian growth of motorcycle production as follow:

 

Indonesia’s Production and Wholesales of Motorcycle, 2005-2012 (July)

Year

Production (AISI) (Units)

Wholesales (Units)

2005

5,113,487

5,089,426

2006

4,459,000

4,470,722

2007

4,722,000

4,713,895

2008

6,264,265

6,280,799

2009

5,884,000

5,882,000

2010

7,395,390

7,398,644

2011

8,006,293

8,043,535

2012 (July)

4,311,019

4,328,642

                  Source: AISI

 

Until this time ERA BARU Toko has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of the company 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. 3.0 billion rose to Rp. 3.3 billion in 2011 increased to Rp. 3.6 billion in 2012. As from January to June 2013 the sales turnover has amounted at Rp. 1.9 billion with a net profit of Rp. 114 million and the sales its projected to go on rising by at least 5% in 2014. 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 ERA BARU Toko is led by Mr. Liem Thong (65) a businessman with experience in trading, import and distribution of BAJAJ motorcycle component and parts. Due to his old age he is assisted by his son Mr. Anton (35) as Vice Director. The company's management is handled by a number of 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. ERA BARU Toko is sufficiently fairly good for business transaction.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.20

UK Pound

1

Rs.100.64

Euro

1

Rs.84.15

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.