MIRA INFORM REPORT

 

 

Report Date :

29.03.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. AURA ESSENCE

 

 

Registered Office :

Jalan Danau Agung Barat Block A 3 No. 28 Kelurahan Sunter Jaya, Kecamatan Tanjung Priok Jakarta Utara, 14350

 

 

Country :

Indonesia

 

 

Date of Incorporation :

February 1996

 

 

Com. Reg. No.:

No. AHU-68275.AH.01.02.TH.2008

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading, Import and Distribution of Perfumes and Cosmetics

 

 

No. of Employees :

37 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 :

Usually 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 – 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 and address

 

P.T. AURA ESSENCE

 

A d d r e s s :

Head Office

Jalan Danau Agung Barat Block A 3 No. 28

Kelurahan Sunter Jaya, Kecamatan Tanjung Priok

Jakarta Utara, 14350

Indonesia

Phones             - (62-21) 6530 5300 (Hunting)

Fax                   - (62-21) 6530 5100

Building Area    - 2 storey

Office Space    - 120 sq. meters

Region              - Commercial

Status               - Rent

 

 

Registration data

 

Date of Incorporation :

February 1996

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-68275.AH.01.02.TH.2008

Dated 23 September 2008

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.062.326.0-075.000

 

Related Company :

P.T. AURA CANTIK (Trading, Import and Distribution of Perfumes and Cosmetics)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 2,000,000,000.-

Issued Capital                                 : Rp.    550,000,000.-

Paid up Capital                               : Rp.    550,000,000.-

Shareholders/Owners :

a. Mr. Prem Bulchand Bhojwani                                       - Rp. 275,000,000.-

    Address : Jl. Sentul No. 32, RT. 007 RW. 003

                    Kelurahan Pasar Baru, Kecamatan Sawah

                    Besar, Jakarta Pusat

                    Indonesia

b. Mr. Bishan Prem Bhojwani                                           - Rp. 275,000,000.-

    Address : Jl. Sentul No. 32, RT. 007 RW. 003

                    Kelurahan Pasar Baru, Kecamatan Sawah

                    Besar, Jakarta Pusat

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Import and Distribution of Perfumes and Cosmetics

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1996

 

Brand Name :

Aura Essence

 

Technical Assistance :

None

 

Number of Employee :

37 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Cosmetics Shops and Traders

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ANEKA PRIMA SEJATI

b. P.T. L’OREAL INDONESIA

c. P.T. LUXASIA INDONESIA

d. P.T. MIRABO AYU

e. P.T. PRESTIGE INDONESIA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CENTRAL ASIA Tbk

      Jalan K.H. Samanhudi No. 8

      Jakarta Pusat

      Indonesia

b.   P.T. Bank SBI INDONESIA

      Ruko Nusa Plaza Indah Block A No. 78

      Jalan Griya Utama Sunter

      Jaakrta Utara

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 37.0 billion

2011 – Rp. 39.0 billion

2012 – Rp. 41.0 billion

 

Net Profit (estimated) :

2010 – Rp. 1.8 billion

2011 – Rp. 1.9 billion

2012 – Rp. 2.1 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 


KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Bishan Prem Bhojwani

 

Board of Commissioners :

Commissioner                                 - Mr. Prem Bulchand Bhojwani

 

Signatories :

Director (Mr. Bishan Prem Bhojwani) which must be approved by Board of Commissioner

 

 

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

 

P.T. AURA ESSENCE (P.T. AE) was established in Jakarta in February 1996 by Mr. Prem Bulchand Bhojwani and his son Mr. Bishan Prem Bhojwani, both of are Indonesian business family of India descents. The company notary deed has been changed a couple of times and according to the latest revision of notary documents of Mr. Musa Muamarta, SH., No. 14 dated 18 April 2008 the company authorized capital was amounted at Rp. 2,000,000,000 issued capital of Rp. 550,000,000 of which paid up. According to the latest revision of notary documents the composition of its shareholders are Mr. Prem Bulchand Bhojwani (50%) and his son Mr. Bishan Prem Bhojwani (50%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-68275.AH.01.02.TH.2008 dated September 23, 2008. We observe that Mr. Prem Bulchand Bhojwani and his son Mr. Bishan Prem Bhojwani also founder and business stakes owner of P.T. AURA CANTIK a national private company engaged in the field of trading, import and distribution of cosmetics.

 

P.T. AE started to be operating since 1996 dealing with trading, import and distribution of perfumes and cosmetics. The company is having a history of more than 17 yeas of business, mainly into perfumes and cosmetic. Originally the company sells of the perfumes and cosmetics through airlines, however the company business was focused to sells and distributes of perfumes and cosmetic through various distributors and retailers in the country. Mr. Yegneshwara Deekshit, Account Manager of the company said the company is an authorized distributors all varieties of perfumes and cosmetics which imported from France, Germany, Hong Kong, India and other European countries. The company is an authorized distributors all various brands such as Antonio Bandera, Bugatti, Canali, Chevignon, Creed, Dsquard2, Etienne Aigner, Fcule, Fendi, Gianfranco Ferre, Jean Charles Brosseau, Jessica Simpson, Loewe, Lolita Lempicka, Mango, Nafnaf, Paris Hilton and others. The whole products marketed locally through distributors and retailers of perfumes and cosmetic in Jakarta, Bandung, Semarang, Yogyakarta, Surabaya, Bali, Sumatera, Kalimantan and Sulawesi. Besides, the company is also supplied the products through various beauty and skin care in the country. We observe the operation of P.T. AE has been growing and developing well in the last three years.

 

Demand for cosmetics is increasing in line with revenue growth of community are accompanied by changes in the lifestyle of the community. Based on the results of the forecast Euromonitor International 2012 for next 5 years, the beauty care industry in the country grew on average by 7% per year. Cosmetic and herbal products industry is a bright prospect. Use products that used only as a secondary requirement has now evolved into a primary need, especially for women.This suggests that the use of cosmetics in Indonesia is very large. Along with the times cosmetics is as a primary need for most women. This provides an opportunity for the cosmetic industry in Indonesia, so many new products emerging in the market that can cause quite a tight competition. On the other hand consumers have their own judgments and expectations of the cosmetics they use. To be able to compete and satisfy the customers certainly a product must have a competitive advantage compared to competing products and can meet the needs of consumers. Parties are required to jelly cosmetic companies in exploring information about consumer preferences and be able to implement the right marketing strategy.

 

Throughout 2011, Indonesian economy grew well with the support of strong personal consumption and good investment, both domestic and foreign. Amidst economic growth deceleration in other Asian NIES countries, Indonesian economy was significantly growing on a stable foundation. It was supported by the growing number of middle-class community which was in line with the increase of income as well as the growth of consumer loans and the decrease of interest rate due to controlled inflation. Therefore, personal consumption could grow stably. To date, the prices of consumer goods have become stable. This is supported by the low increase of food prices due to good harvests as well as the political and economic stability which can minimize the increase of household expenses such as electricity, fuel, etc. In order to respond to this condition, Bank Indonesia has lowered the BI rate so that at the end of December 2011 the interest rate was 6.00%. However, as an impact of the increasingly serious debt crisis in Europe, Rupiah exchange rate decreased to Rp 9,068/US$ at the end of 2011. As a reflection of the increasingly stronger growth of personal consumption, the cosmetics market has been growing stably.

 

Until this time P.T. AE 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. 37.0 billion rose to Rp. 39.0 billion in 2011 increased to Rp. 41.0 billion in 2012 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. 2.1 billion and the company has an estimated total networth of at least Rp. 6.0 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 P.T. AE is led by Mr. Bishan Prem Bhojwani (33) a young businessman and professional manager with experience in trading, import and distribution of perfumes and cosmetics. However the prime mover of the company is Mr. Prem Bulchand Bhojwani (72) has experienced for more than 28 years in perfumes and cosmetics. 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. AURA ESSENCE is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.