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Report Date : |
17.10.2013 |
IDENTIFICATION DETAILS
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Name : |
C.V. ESPAGE |
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Registered Office : |
Kota Wisa Pesona Florence Block H-5 No. 37, Jalan Wisata Utama Perumahan Kota Wisata Cibubur, Kelurahan Cibubur, Kecamatan Gunung Putri, Bogor, 16968, West Java |
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Country : |
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Year of Establishments: |
2012 |
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Com. Reg. No.: |
Not Available |
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Legal Form : |
Partnership
with Sleeping Partner |
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Line of Business : |
trader and distributor of adhesive tapes for
shoes industries |
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No. of Employees : |
04 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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 |
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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 |
C.V. ESPAGE
Head Office
Kota Wisa Pesona
Florence Block H-5 No. 37
Jalan Wisata Utama Perumahan Kota Wisata Cibubur
Kelurahan Cibubur, Kecamatan Gunung Putri
Bogor, 16968
West Java
Indonesia
Phone -
(62-21) 8493 0341
Fax - (62-21) 8493 0341
Mobile Phone - 0816 867502 (Mr.
Surya Gunawan)
Building Area - 1 storey
Office Space - 100 sq. meters
Region - Commercial
Status - Rent
2012’s
C.V.
(Commanditaire Vennootschap) or Partnership with Sleeping Partner
Not Required
National Private
Company
The Department of
Finance
Not Available
None
Capital
Structure :
Owned Capital : Rp. 250
million
Owners :
a. Mr. Surya Gunawan (Active Partners)
b. His wife Mrs. Gunawan (Silent Partners)
Lines of Business :
Trading and Distribution of
Adhesives
Production Capacity :
None
Total Investment :
None
Started Operation :
2012’s
Brand Name :
ESPAGE
Technical Assistance :
None
Number of Employee :
4 persons
Marketing Area :
Local - 100%
Main Customer :
Shoes Industries
Market Situation :
Very Competitive
Main Competitors :
a. C.V. DUNIA BARU
b. FIXLON INDONESIA
c. PD. SUMBER MAJU
d. TRIJAYA Toko
Business Trend :
Growing
Banker :
P.T. Bank PANIN
Tbk
Jalan Alternatif
Cibubur No. 79
Cibubur, Gunung
Putri
Bogor, West Java
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation
record in our database
Annual Sales
(estimated) :
2012 – Rp. 2.0
billion
Net Profit
(estimated) :
2012 – Rp. 100
million
Payment Manner
:
Average
Financial
Comments :
Satisfactory
Board of Management :
Director - Mr. Surya Gunawan
Board of Commissioners :
Mrs. Gunawan
Signatories :
Director (Mr. Surya
Gunawan) is only the authorized person to sign the loan on behalf of the
company.
Management Capability :
Satisfactory
Business Morality :
Satisfactory
C.V. ESPAGE was established in Cibubur, Bogor, West Java in 2012’s with the legal status of C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partner. The founding and owners of the company are Mr. Surya Gunawan as active partner and his wife Mrs. Gunawan as silent partner both are Indonesian business family of Chinese descents. 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 estimated its capital at some of Rp. 250 million.
C.V. ESPAGE has been operating since 2012 engaged in the field of trading and distribution of adhesive tapes for shoes industries. According information from Mr. Surya Gunawan, Director and owner of the company explained the company sells and imports of adhesive tapes, hot melt adhesive, nylon tapes, polyester rod hot, polyamide rod hot, walkind, non woven insole, buttress nail, and others. The whole products imported from India and China with various types and sizes of products. Later the whole merchandise goods products supplied to various woman shoes industries in Bekasi, Gunung Putri, Bogor, West Java, Semarang and Central Java. We observe that C.V. ESPAGE is classified a small size company of its kinds with operation still relatively new operation.
In general, we observed that before the economic crisis
striking Indonesia, the existing shoe
manufacturing companies in Indonesia already encountered many problems like an
over investment and low knowledge skill in the industry which caused many shoes
manufacturing companies to stop operation before the economic crisis striking
Indonesia. Besides that, Indonesian shoes producers also got strong competition
from Vietnam, the new comer which may appear as the quite heavy competitor
apart from the People's Republic of China. If Indonesian shoes export value in
2005 reached US$ 1,428 million, rose to US$ 1,599 million in 2006 and rose
again to US$ 1,637 million in 2007 to US$ 1,885 million in 2008, dropped to US$
1,734 million in 2009 and increase to US$ 2,000 million in 2010. Footwear export in 2012
was encouraging about 10%. According Indonesian Footwear Association
(Asprindo), shoes exports in 2011 reached US$ 3.1 billion. This figure is up
25% from last year's U.S. $ 2.5 billion. Eddy Widjanarko, ASI Chairman, explained
that the increase in exports was driven ability of local manufacturers to meet
demand, both producer large and small brands.
However, the
value of these export do not fit the previous set target of US$ 3.2 billion.
Because, had some time bookings decreased approximately 10% -20% compared to
the months typically. European fears of uncertain conditions make export demand
was restrained. While footwear sales in the domestic market reached Rp. 24
trillion to Rp. 25 trillion. This figure is up 10% from 2010's Rp. 22 trillion.
Footwear manufacturers still rely on moments of this year's New School Year and
other religious holidays to boost sales. The national shoes production and export value, as
shown on the table below:
National Shoes Production and Exports Value 2005-2012
|
Year |
Production (Million
Pairs) |
Million US$ |
|
2005 |
820,870 |
1,428 |
|
2006 |
822,624 |
1,599 |
|
2007 |
797,945 |
1,637 |
|
2008 |
771,144 |
1,885 |
|
2009 |
759,577 |
1,734 |
|
2010 |
779,500 |
2,500 |
|
2011 |
1,013,350 |
3,300 |
|
2012 |
1,189,000 |
3,500 |
Source: Central
Bureau of Statistic, processed
Until this time CV. ESPAGE 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 the first year operation 2012 amounted to Rp. 2.0 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. 100 million. 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. ESPAGE is led by Mr. Surya Gunawan
(47) a businessman with experience in trading, import and distribution of
adhesive tapes for woman shoes industries. 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. However, in view of C.V. ESPAGE is still relatively
new operation and classified a small company we recommend to treat prudently in
extending a loan to the company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.69 |
|
UK Pound |
1 |
Rs.98.59 |
|
Euro |
1 |
Rs.83.67 |
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 |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.