MIRA INFORM REPORT

 

 

Report Date :

30.05.2013

 

IDENTIFICATION DETAILS

 

Name :

UD. JAYA AGUNG

 

 

Registered Office :

Jalan Panggung No. 63, Surabaya, 60162, East Java

 

 

Country :

Indonesia

 

 

Year of Establishments:

1958

 

 

Legal Form :

Sole Proprietary Concern

 

 

Line of Business :

Trading and Exporter of Spice and Seasoning

 

 

No. of Employees :

07

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate  

 

 

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 an estimated 6.2% and 6.5% 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 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 Concern 

 

UD. JAYA AGUNG

 

 

Concern Address

 

Head Office

Jalan Panggung No. 63

Surabaya, 60162

East Java

Indonesia

Phone               - (62-31) 3551150

Fax                   - (62-31) 3531134

Mobile Phone    - 081 2353 4486

Building Area    - 1 storey

Office Space    - 120 sq. meters

Region              - Commercial

Status               - Rent

 

 

Date of Incorporation

 

1958

 

 

Legal Form

 

Sole Proprietary Concern 

 

 

Concern  Reg. No.

 

Not Required

 

 

Concern Status

 

National Private Concern

 

 

Permit by the Government Department

 

The Department of Finance

Not Available

 

 

Related Concern 

 

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 350 million

 

Owners :

Mr. Wiyoto Lembono

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading and Exporter of Spice and Seasoning

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1958

 

Brand Name :

Jaya Agung

 

Technical Assistance :

None

 

Number of Employee :

7 persons

 

Marketing Area :

Export    - 100%

 

Main Customer :

Buyers in Southeast Asia

 

Market Situation :

Very Competitive

 

Main Competitors :

a. C.V. INDOJAYA SUBUR

b. C.V. NATURALINDO

c. C.V. OCEAN AGRO MAKMUR

d. C.V. SINAR MILLENIUM

e. C.V. SOLUSINDO UTAMA

 

Business Trend :

Growing

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CENTRAL ASIA Tbk

      Gubeng – Surabaya Branch

      Surabaya, East Java

      Indonesia

b.   P.T. Bank CIMB NIAGA Tbk

      Jalan Basuki Rachmat 8-12

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 3.7 billion

2011 – Rp. 4.2 billion

2012 – Rp. 4.8 billion

 

Net Profit (estimated) :

2010 – Rp. 185 million

2011 – Rp. 252 million

2012 – Rp. 288 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Wiyoto Lembono

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. Wiyoto Lembono) is only the authorized person to sign the loan on behalf of the concern .

 

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

UD. JAYA AGUNG (JA) was established in Surabaya, East Java in 1958’s with a status of Sole Proprietary Concern . Founders and owner of the concern  is the late Mr. Tjay Lembono, a Indonesian businessman of Chinese extraction. However, currently the concern  is owned by his son namely Mr. Wiyoto Lembono an Indonesian businessman of Chinese descent. Being as Sole Proprietary Concern , the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, the concern  has own capital of about Rp. 350 million and it will be rising in line with the progress of its business operation.

 

JA is a sole proprietary concern  started to be operating since 1958 engaged in the field of trading and exporter of spice and seasoning. The Concern  has been established for more than 55 years and has experience of Spices & Seasoning business. They offer only the best quality and fair prices. Mr. Wiyoto Lembono, Director and owner of the concern  said the merchandise goods products are mung bean, tamarind, cloves, cocoa beans, cashew nuts, long pepper, cubeb, betel nuts and vanilla. Further Mr. Wiyoto Lembono explained the whole agricultural commodities products obtained from Sumatera, Sulawesi, Java and other island of Indonesia. Then, the whole products are exported to Southeast Asia among others Singapore, Malaysia, China, India, Pakistan and others. We observed that UD. JA is classified a small size concern  of its kinds with operation has been growing slowly in the last three years.

           

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. We consider UD. JA is to be in a quite favorable business position for having already got and hold of a steady clientele in the country and abroad.

 

Until this time UD. JA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of the concern  is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the concern  in 2010 amounted to Rp. 3.7 billion rose to Rp. 4.2 billion in 2011 increased to Rp. 4.8 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. 288 million. So far, we did not heard that the concern  having been black listed by the Central Bank (Bank Indonesia). The concern  usually pays its debts punctually to suppliers.  

 

The management of UD. JA is led by Mr. Wiyoto Lembono (54) a businessman with experience in trading and exporter of spice and seasoning. The concern '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 concern  being filed to the district court for detrimental cases or involved in any business malpractices. The concern ’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. We are sure UD. JAYA AGUNG is sufficiently fairly good for business transaction.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.56.24

UK Pound

1

Rs.84.54

Euro

1

Rs.72.32

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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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