MIRA INFORM REPORT

 

 

Report Date :

17.10.2013

 

IDENTIFICATION DETAILS

 

Name :

C.V. ESPAGE

 

 

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

 

 

Country :

Indonesia

 

 

Year of Establishments:

2012

 

 

Com. Reg. No.:

Not Available 

 

 

Legal Form :

Partnership with Sleeping Partner

 

 

Line of Business :

trader and distributor of adhesive tapes for shoes industries

 

 

No. of Employees :

04

 

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 :

Slow but 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 – 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 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

 

 


Name of Company

 

C.V. ESPAGE

 

 

company Address

 

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

 

 

Date of Incorporation

 

2012’s

 

 

Legal Form

 

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

 

 

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. 250 million

 

Owners :

a. Mr. Surya Gunawan (Active Partners)

b. His wife Mrs. Gunawan (Silent Partners)

 

 

BUSINESS ACTIVITIES

 

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, AUDITOR & LITIGATION

 

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

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 2.0 billion

 

Net Profit (estimated) :

2012 – Rp. 100 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 


KEY EXECUTIVES

 

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.

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

OVERALL PERFORMANCE

 

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

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.