MIRA INFORM REPORT

 

 

Report Date :

21.02.2013

 

IDENTIFICATION DETAILS

 

Name :

C.V. NASIONAL AGUNG JAYA

 

 

Registered Office :

Jalan Rungkut Industri IV No. 8 Surabaya Industrial Estate Rungkut Kelurahan Kali Rungkut, Kecamatan Gunung Anyar Surabaya, 60291 East Java

 

 

Country :

Indonesia

 

 

 

Year of Incorporation :

1984

 

 

Legal Form :

Partnership with Sleeping Partners

 

 

Line of Business :

Plastic Packaging Machinery Assembling

 

 

No. of Employees :

124 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 – 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. NASIONAL AGUNG JAYA

 

 

Address

 

Head Office & Factory

Jalan Rungkut Industri IV No. 8

Surabaya Industrial Estate Rungkut

Kelurahan Kali Rungkut, Kecamatan Gunung Anyar

Surabaya, 60291

East Java

Indonesia

Phones             - (62-21) 8478777, 8473888, 8472888

Fax                   - (62-21) 8470999

E-mail               - info@demarsystems.com

Website            - http://www.demarsystems.com

Land Area         - 6,000 sq. meters

Building Space  - 4,000 sq. meters

Region              - Industrial Estate

Status               - Owned

 

Branch Office & Warehouse

Jalan Raya Jababeka Block U-34 D

Cikarang Industrial Estate

Bekasi, 17550

West Java

Indonesia

Phones             - (62-21) 89830707 (Hunting)

Fax                   - (62-21) 89830577

Land Area         - 1,200 sq. meters

Building Space  - 800 sq. meters

Region              - Industrial Estate

Status               - Rent

 

 

Registration data

 

Date of Incorporation :

1984

 

Legal Form :

C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partners

 

Company Reg. No. :

Not Required

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. 2.0 billion

 

Owners :

a. Mr. Handoyo Suradja (Active Partners)

b. Mr. Alexander Daniel Suradja (Silent Partners)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Plastic Packaging Machinery Assembling

 

Production Capacity :

a.   Plastic Machinery                      - 120 units p.a.

b.   Plastic Parts                             - 300 units p.a.

 

Total Investment :

Owned Capital                                 - Rp. 3.0 billion

 

Started Operation :

1984

 

Brand Name :

Nasional Agung Jaya

 

Technical Assistance :

None

 

Number of Employee :

124 persons

 

Marketing Area :

Local       - 95%

Export      - 5%

 

Main Customer :

Plastic Packaging and Plastic Bottle Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BELLA NITEC MACHINERY

b. P.T. KAWAN INTI SENADA

c. C.V. POLYPACK PERKASA

d. P.T. SINAR HIMALAYA

e. Etc

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

Jalan Kertajaya No. 35

Surabaya, East Java

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 15.4 billion

2011 – Rp. 16.3 billion

2012 – Rp. 17.5 billion

 

Net Profit (estimated) :

2010 – Rp. 1.1 billion

2011 – Rp. 1.3 billion

2012 – Rp. 1.5 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Handoyo Suradja

General Manager                             - Mr. Alexander Daniel Suradja

 

Board of Commissioners :

Commissioner                                 - Mrs. Suradja

 

Signatories :

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

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

Based on investigation results the correct name of the Subject is C.V. NASSIONAL AGUNG JAYA not NASIONAL AGUNG JAYA as stated in your order ref. no. 211037 dated 13 February 2013.

 

C.V. NASIONAL AGUNG JAYA (C.V. NAJ) was established in Surabaya, East Java in 1984 with the legal status of C.V. Commanditaire Vennootschap or partnership with sleeping partner. The company was founded by Mr. Handoyo Suradja as active partners and his wife Mrs. Suradja as silent partners both are Indonesian business family of Chinese descents. However in 2005 their son Mr. Alexander Daniel Suradja entered into the company as silent partner. As in common in cases of companies with C.V. status, there is no mention in the company’s notarial act of its capital structure. But going by the company’s conditions, we estimate its capital at some Rp. 2.0 billion.

 

 

 

 

C.V. NAJ is a national private company started to be operating since 1984 dealing with plastic packaging machinery assembling. The plant is located at Jalan Rungkut Industri IV No. 8, Surabaya Industrial Estate Rungkut, Surabaya, East Java standing on 6,000 sq. meters. According information the company produces various types of packaging machines and bottling machines that fulfill the European standard quality. Besides, the plant is also provides spare parts and maintenance. C.V. NAJ offers variety of packaging system that will ensure the effectiveness and efficiency of the customer production process and the whole products using DEMAR brand. DEMAR machineries provide packaging solutions by providing customers in the multi-lanes packaging system that can handle the output that is used to be accomplished by several conventional machineries. It creates significant changes in production prospective as more and more resources can be reserve. C.V. NAJ has succeeded creating machinery technologies by using Robotic System in 2005, which made it to be more competent company. Moreover, C.V. NAJ also gives solutions for all machinery problems that customers need, such as up-grading system and may other satisfying services. Mr. Alexander Daniel Suradja, General Manager of the company also added that C.V. NAJ is able to produce some customized machines according to the customers needs, with warranty for its spare parts, services and maintenance. Some 95% of the products marketed locally to various plastic packaging and plastic bottle industries in the country among others P.T. UNILEVER INDONESIA Tbk in Surabaya, P.T. SURYA MULTI INDOPACK, P.T. YASULOR INDONESIA and other industries in Surabaya, Cikarang, Karang, Bekasi and others. Meanwhile the rest 5% is exported to Pakistan and Myanmar. We observe the operation of C.V. NAJ has been growing and developing well in the last three years.

 

The demand of plastic machinery has kept on increasing by 7% to 9% in the last five years inline with the growth of plastic packaging industries as customers. Starting in the second semester 2008, many markets in various parts of the world experienced adverse economic condition. This condition was triggered by, amongst others, the housing and mortgage loans crisis in the United States of America (US) that spread to securities, structures products and commodity markets. The volatility in the US markets coupled with the sharp appreciation in the US Dollars and a series of corporate bankruptcies and takeovers enabled the crisis to spread to other parts of the world. The impact of the global economic crisis has also been felt in Indonesia as the Indonesian Rupiah weakened, demand decrease, commodity prices decreased, securities market declines, interest rate increased, followed by decreases, tightened liquidity conditions, and increased credit risks. Up to this time, the Company has not significantly suffered from the economic crisis. In response to these economic events, during 2010 the Company has plans as follows: Negotiation with main customer regarding increasing selling price. Cost reduction in business trip, pantry needs, technical support cost, etc. Reduction finishing cost and transportation cost with transferring product to customers. Improvements of internal production, increasing cycle time and increasing machine running time. In spite of the adverse economic conditions, management believes that the Company will be able to continue operating as going concern for the foreseeable future.

 

Until this time C.V. NAJ has not been registered with Indonesian Stock Exchange, so that they shall 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. 15.4 billion rose to Rp. 16.3 billion in 2011 increased to Rp. 17.5 billion in 2011 and projected to go on rising by at least 5% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 1.5 billion and the company has an estimated total networth of at least Rp. 2.0 billion. 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 C.V. NAJ is led by Mr. Handoyo Suradja (62) a businessman with experience in plastic machinery assembling. Due to the old his age the company is also runs by his son Mr. Alexander Daniel Suradja (27) as General Manager. Mr. Alexander Daniel Suradja is a professional manager graduate BS, Mechanical Engineering from Michigan State University, USA in 2007-2001. 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. C.V. NASIONAL AGUNG JAYA is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.05

UK Pound

1

Rs.83.45

Euro

1

Rs.72.53

 

 

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.