MIRA INFORM REPORT

 

 

Report Date :

20.02.2013

 

IDENTIFICATION DETAILS

 

Name :

C.V. INDOJAYA ASIA

 

 

Registered Office :

JL. Panglima Sudirman No. 155 Wajak-Malang, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

2008

 

 

Legal Form :

Partnership with sleeping partners

 

 

Line of Business :

Trading and distribution of agricultural products

 

 

No. of Employees :

2 persons

 

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Inactive

Payment Behaviour :

--

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

(31.03.2011)

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 Company

 

C.V. INDOJAYA ASIA

 

 

Address

 

Head Office

JL. Panglima Sudirman No. 155

Wajak-Malang, East Java

Indonesia

Phones             - (62-341) 916 8679

H.P.                  - (62-8564) 9754 505, (62-8581) 5441 558  

Fax                   - not available

Email                - titrin_indojaya@ymail.com

Building Area     - 140 sq. meters

Office Space      -   80 sq. meters

Region              - Commercial

Status               - Rent

 

 

Registration data

 

Date of Incorporation :

2008

 

Legal Form :

C.V. (Commanditaire Vennootschaap) or partnership with sleeping partners

 

Company Reg. No. :    

Not Required

 

Company Status :

National Private Company

 

Permit by the Government Department :           

Not Available

 

Related Company :                       

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 - Rp. 120 million

 

Shareholders/Owners :

a. Mrs. Titrin Santoso (Active Partners)      

b. Mr. Haru Harsono (Silent Partner)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading and distribution of agricultural products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

2008 but, the company has been inactive since the end of 2012

 

Technical Assistance :

None

 

Number of Employee :

2 persons

 

Marketing Area :

Traditional market and food processing industries

 

Market Situation :

Very Competitive

 

Business Trend :

Declining

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s:

a. P.T. Bank Mandiri Tbk.

    Malang Branch

    Jl. Jend. Ahmad Yani No.50 C-D

    Malang, East Java

    Indonesia

b. P.T. Bank CENTRAL ASIA Tbk.

    Malang Branch

    Jl. Jend. Ahmad Yani No.50 C-D

    Malang, East Java

    Indonesia

 

Auditor :

No Comment

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Total Sales/Income (estimated) :  

2010 – Rp. 3.8 billion

2011 – Rp. 3.6 billion

2012 – Rp. 2.4 billion

 

Net Profit (estimated) :

2010 – Rp. 240 million

2011 – Rp. 226 million

2012 – Rp. 130 million

 

Payment Manner :

No Comment

 

Financial Comments :

Weak

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mrs. Titrin Santoso

 

Board of Commissioner :

None

 

Signatories :

Director (Mrs. Titrin Santoso) is only he authorized person to sign the loan

 

 

CAPABILITIES

 

Management Capability :

P o o r

 

Business Morality :

Doubted

 

Credit Risk :

High

 

Credit Recommendation :

Credit is not recommended

 

Proposed Credit Limit :

C.O.D.

 

 

OVERALL PERFORMANCE

 

C.V. INDOJAYA ASIA was established in 2009 in Malang, East Java, with the legal status of Commanditaire Vennootschaf (C.V) or partnership with sleeping partner. The founding owners of the Company are Mrs. Titrin Santoso as active partner and his husband Mr. Haru Harsono as silent partner both are Indonesian business persons of Chinese extraction. Being as a C.V. company, the amount of its authorized capital was not mentioned at the time of its establishment.   We estimated that now C.V. INDOJAYA ASIA has own capital of about Rp. 120 million and it will be rising in line with the progress of its business operation.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

C.V. INDOJAYA ASIA had been operating since 2008 in trading, exporting and importing of agricultural products like coffee bean, ginger, mocal (modified cassava flour), tapioca powder, turmeric, fishmeal, soybean, seaweed, etc.   Ms. Nadia, the former a marketing staff of the company when reached by phone said that C.V. INDOJAYA ASIA is a small-sized company of its kind in the country of which the operation has been declining in the last two years.  Since mid-2011 the company’s activity has been shifted to only engage in trading and distribution of tobacco.  CV. INDOJAYA ASIA sells the products to a number of clove cigarette industries in the country.  Ms. Nadia also added that C.V. INDOJAYA ASIA has not been in operation since the end of 2012 (lockout) and all of its employees have also been dismissed.  She also did not know why the company was shutdown. However it is likely that operations did not go smoothly and continuously suffered losses. 

 

Furthermore we have checked to the Ministry of Law and Human Rights (MLHR) to ensure that whether the C.V. INDOJAYA ASIA has been liquidated. But our source at MLHR said that until now there is no notice from the shareholders of C.V. INDOJAYA ASIA concerning the shutdown of the company. According to our source in MLHR, that in Indonesia there are many companies that not actively operate or shut down, but never reported their case to MLHR. This is generally done by these companies, to avoid payment of taxes and duties.

 

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 CV. INDOJAYA ASIA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The company’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover of the company in 2010 amounted of Rp. 3.8 billion declined to Rp. 3.6 billion in 2011 and dropped again to Rp. 2.4 billion in 2012.   The operation in 2012 yielded an estimated net profit of Rp. 130 million and the company has an estimated total networth at Rp. 120 million.  So far we did not hear that the CV. INDOJAYA ASIA has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.

 

The management of the company has been led by Mrs. Titrin Santoso (40) as Director.  Their reputation in trading and supplying of rubber products is also not prominent.  In addition they were also not who bona fide or credible businesswoman.  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.

 

Considering the operation of C.V. INDOJAYA ASIA declined in the last two years and then has not been in operation since the end of 2012, so we recommend to be very careful when doing business partnership with this company.  We recommend to cancel the business transaction plan that was prepared for this company.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.28

UK Pound

1

Rs.84.09

Euro

1

Rs.72.44

 

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

 

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.