MIRA INFORM REPORT

 

 

Report Date :

19.04.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. MERAK MAGNESIUMINDO INDUSTRI

 

 

Registered Office :

Marunda Center Blok E 1 No. 10, Segara Makmur, Tarumajaya, Bekasi, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.12.2011

 

 

Com. Reg. No.:

No. AHU-05197.AH.01.01.Tahun 2012

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading, Import and Distribution of Ferro and Non-Ferro

 

 

No. of Employees

20 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 – March 31st, 2014

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% 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 also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

 

Source : CIA


BASIC SEARCH

 

Correct Name of Company :

P.T. MERAK MAGNESIUMINDO INDUSTRI

 

Address :

Head Office

Marunda Center Blok E 1 No. 10

Segara Makmur, Tarumajaya

Bekasi, West Java

Indonesia

Phones             - (62-21) 2961 6321 (hunting)

Fax.                  - (62-21) 2961 6320

Building Area    - 2 storey

Office Space    - 260 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

20 December 2011

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-05197.AH.01.01.Tahun 2012

Dated 01 February 2012

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. – not available

 

Related/Affiliated Company :

Not available

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                                 - Rp. 500,000,000.-

Issued Capital                                       - Rp. 500,000,000.-

Paid up Capital                                     - Rp. 500,000,000.-

 

Shareholders/Owners :

a. Mrs. Jo Sioe Gwat (Julia)                  - Rp. 200,000,000.- (40%)

    Address:  Villa Permata Gading Blok A-2/49

                    Kel. Tugu Selatan, Kec. Koja

                    North Jakarta

b. Mr. Jo Ie Lung                                  - Rp. 300,000,000.- (60%)

    Address:  Jl. TSS Raya No. 23,

                    Kel. Duri Utara, Kec. Tambora

                    West Jakarta

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Import and Distribution of Ferro and Non-Ferro


Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

March 2012

 

Brand Name :

None

 

Technical Assistance :

None

 

Number of Employee :

20 persons

 

Marketing Area :

Domestic          - 100%

 

Main Customers :

a. Foundry Industries

b. Steel Product Industries

c. Etc.



Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Graha Jaya Pratama

b. PT. Anugerah Mervin

c. PT. Aquarion Technologies

d. PT. Pratama Resources Int’l

e. PT. Sitor Jaya Abadi

f.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Banker :

P.T. Bank MANDIRI Tbk

Graha Irama Branch

Jl. H.R. Rasuna Said Kav. X-1 No.1-2

Jakarta Selatan

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (Estimated) :

2012 – Rp. 26.0 billion

2013 – Rp. 42.0 billion

 

Net Profit (Loss) :

2012 – Rp. 1.3 billion

2013 – Rp. 2.2 billion

 

Payment Manner :

Almost Promptly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                                - Mrs. Jo Sioe Gwat AKA Julia

 

Board of Commissioner :

Commissioner                           - Mr. Jo Ie Lung

 

Signatories :

Director (Mrs. Jo Sioe Gwat AKA Julia) which must be approved by Board of Commissioner  (Mr. Jo Ie Lung)

 

 

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. MERAK MAGNESIUMINDO INDUSTRI (P.T. MMI) was established in Bekasi based on Notarial Deed No. 033 dated December 20, 2011 was made by Notary Madihon Samosir, SH.,  with an authorized capital of Rp 500,000,000.- entirely was issued and fully paid up.  The founding shareholders of the company are Mrs. Jo Sioe Gwat AKA Julia (40%) and Mr. Jo Ie Lung (60%).  The Deed of establishment has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-05197.AH.01.01.Tahun 2012 dated February 01, 2012. No changes have been effected in term of its shareholding composition and capital structures to date.

 

In accordance with article 3 (three) of the articles of association contained in the deed of establishment, the scope of activities of the Company is primarily trading and industry.  In fact it is engaged in trading and distribution of ferrous metal and non-ferrous.   The Company’s registered office located at Gedung Plaza Bumi Daya Jl. Imam Bonjol No.61, Central Jakarta and the Company can open branch offices or representative offices at home and abroad.

 

P.T. MMI has been operating commercially since early of 2012 in trading, import and distributor of ferrous metal and non-ferrous.  Ms. Jeni Magdalena AKA Lena, a marketing staff of the company explained that the company sells some of ferrous and non-ferrous such as magnesium, manganese, ferrous sulfate and chemicals for foundry industries.  The products are imported from China.  Then, the merchandise products are supplied to industrial sectors such as foundry industries, steel products industries and others in Bekasi, Cikarang, Cibitung, Bandung and other cities in West Java.   We observed that P.T. MMI is still relatively new company in trading, import and distribution of agricultural products.

 

We have noticed that the demand for ferrous metal and non-ferrous had increased some 8% to 10% per annum in the last five years in line with the growth of foundry industries in the country.  In the coming years, the growth rate of demand is estimated at about 6% to 7% per annum.  Market competition is very tight due to a large number of similar companies operating in the country.  P.T. MMI is classified as a new company of its kind in the country of which the operation has been growing slowly.

 

The financial condition of the company is appraised to be less strong and its financial condition at present is as the paid up capital of Rp. 500,000,000 as stated in the articles of association of the company. The financial condition of the company still depends on the financial condition of its shareholders.  The management of P.T. MMI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2012 amounted to Rp. 26.0 billion increased to Rp.42.0 billion in 2013.  The company’s operation in 2013 yielded an estimated net profit of at least Rp. 2.2 billion and the company has an estimated total net worth of at least Rp. 10.0 billion.  So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of P.T. MMI is led by Mrs. Jo Sioe Gwat AKA Julia (58) a businesswoman with more than 10 years experience in trading, import and distribution of ferrous metal and non-metal.  In daily activities he is assisted by her younger brother namely Mr. Jo Ie Lung AKA Ie Lung (43) as commissioner.   Beside, they are also assisted by a number of expert staffs in the above business. The Company’s management has 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.

 

Since this company (PT. MMI) just about two years in operation commercially, so we recommend caution when going to provide fresh loans to them. Or it should obtain sufficient guarantees of all shareholders.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.38

UK Pound

1

Rs.101.63

Euro

1

Rs.83.57

                

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SDA

               

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.