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Report Date : |
04.02.2014 |
IDENTIFICATION DETAILS
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Name : |
P.T. TCF MAJU |
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|
|
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Registered Office : |
Citra Buana
Industrial Park Phase III Lot.12C Berlian, Kota Batam 29400 Kepulauan Riau Province |
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Country : |
Indonesia |
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|
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Date of Incorporation : |
02.11.2010 |
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|
Legal Form : |
Limited Liability Company |
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|
|
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Line of Business : |
White Cigarette Manufacturing |
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|
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No. of Employees : |
60 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
No complaints |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 |
P.T. TCF MAJU
Head Office
Citra Buana
Industrial Park Phase III Lot.12C
Berlian, Kota Batam 29400
Kepulauan Riau
Province
Indonesia
Phones -
(62-778) 471221 (hunting)
Fax - (62-778) 471223
Land Area - 12,800 sq.
meters
Building Area - 9,500 sq. meters
Region - Industrial
Park
Status - Rent
Date of Incorporation :
02 November 2010
Legal Form :
P.T. (Perseroan
Terbatas) or Limited Liability Company
Company Reg.
No. :
The Ministry of Law and Human Rights
a. No.
AHU-53326.AH.01.01.Tahun 2010
Dated 11 November 2010
b. No.
AHU-25681.AH.01.02.Tahun 2012
Dated 14 May 2012
c. No.
AHU-AH.01.10-19248
Dated 20 May 2013
Company Status
:
National Private
Company
Permit by the
Government Department :
a. The Department of Finance
NPWP No. 03.095.484.6-215.000
b. The Capital Investment Coordinating Board
No.00110/2/PPM/PMA/2010
Dated 01 November 2010
Related
Company :
Not available
Capital
Structure :
Authorized Capital - US$ 2,000,000.- (Rp.
17,834,000,000.-)
Issued Capital - US$ 2,000,000.- (Rp.
17,834,000,000.-)
Paid up Capital - US$ 2,000,000.- (Rp.
17,834,000,000.-)
Shareholders/Owners
:
a. Mr. Aw Ah
Meng - US$
1,400,000.- (70%)
Address :
703, Jalan Teratai 35/6
Taman Indahpura 8100 Kulai
Malaysia
b. Mr. Chin
Teck Siong - US$ 600,000.- (30%)
Address :
Jalan Sri Putri 4/3
Taman Putri Kulai 8100
Malaysia
Lines of
Business :
White Cigarette
Manufacturing
Production
Capacity :
White Cigarette - Not available
Total
Investment :
Owned Capital - US$. 2.0 million
Started
Operation :
June 2012
Brand Name :
TCM Maju
Technical
Assistance :
None
Number of
Employee :
60 persons
Marketing Area
:
Export - 100%
Main
Customers:
Overseas Buyer in
Singapore and Malaysia
Market
Situation :
Very Competitive
Main Competitors :
a. PT.
Philip Morris Indonesia
b. PT. Sumatra Tobacco Trading Company
c. PT. Gudang Garam Tbk.
d. PT. HM Sampoerna Tbk.
e. PT.
Djarum
f. PT. Bentoel Prima
Business Trend
:
Growing
B a n k e r :
P.T. Bank CIMB
NIAGA Tbk.
Komp. Executive
Center Blok I No. 1ABC
Jl. Laksmana
Bintan, Sei Panas
Batam, Kepri Province
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation
record in our database
Annual Sales
(estimated) :
2012 – US$. 2.4
million (June – December)
2013 – US$. 6.5
million (January – December)
Net Profit
(estimated) :
2012 – US$. 0.3
million (June – December)
2013 – US$. 1.2
million (January – December)
Payment Manner
:
Average
Financial
Comments :
Satisfactory
Board of Management :
Director - Mr. Aw Ah Meng
Board of Commissioners :
Commissioner -
Mr. Chin Teck Siong
Signatories :
Director (Mr. Aw Ah
Meng) which must be approved by Board of Commissioner (Mr. Chin Teck Siong)
Management Capability :
Satisfactory
Business Morality :
Satisfactory
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded with monitor
P.T. TCF MAJU was established in Batam based
non Notarial Deed No. 14 dated November 02, 2010 made by Notary Yondri Darto,
SH., with the authorized capital of US$ 1,000,000.- (Rp. 8,917,000,000.-)
entirely was issued and fully paid up. The founding shareholders of the company
are Mr. Tu Ching Fook (70%) and Mr. Chin Teck Siong (30%), both are Malaysian
businessmen. The Deed of establishment
has been approved by the Minister of Law and Human Rights through Decision
Letter No. AHU-53326.AH.01.01.Tahun 2010 dated November 11, 2010. The Articles of association of the company
have been revised, most recently by notarial Deed No. 15 dated May 6, 2013 made by Notary Yondri Darto, SH., the
authorized capital was raised to US$ 2,000,000.- (Rp 17,834,000,000.-) entirely
was issued and fully paid up.
Concurrently, Mr. Tu Ching Fook pulled out and replaced by Mr. Aw Ah
Meng as a new shareholder. The capital structures and shareholder
composition of P.T. TCF MAJU in details are as shown on page-3 of this report. The amendment to Deed has been approved by the Minister of Law and
Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-19248
dated May 20, 2013
Pursuant to the company’s notary deed, P.T.
TCF MAJU engaged to operate in white cigarette manufacturing. The Company’s
registered office located at Batam City, Kepulauan Riau Province and the
company can open branch offices or representative offices at home and
abroad.
P.T. TCF
MAJU was established within
the framework of foreign investment
(PMA), which has received permit
from the Investment Coordinating Board
(BKPM) with Number 00110/2/PPM/PMA/2010 dated
November 01, 2010, to be engaged in white cigarette manufacturing. Its plant located at Citra Buana Industrial
Park Phase III Lot. 12C, Belian, Batam Kota, Kepulauan Riau Province, where it
stands on a 1.2 hectares lands. The plant has been in operation since June
2012. The raw materials obtained from
British American Tobacco Colombia SA.
Mr. Harjono, an administrative staff of the company explained that the
whole of company’s production are exported to Singapore and Malaysia. We observed that P.T.
TCF MAJU is still relatively new company in white cigarette manufacturing and
trading.
In overall we find the clove cigarette
industries kept on rising in the last five years and nothing wrong with the
global economic crisis occurred in October 2008 because they used mostly local
contents. But the number of cigarette company in Indonesia this year is down
17% to 1,381 units in 2012 compared to 2011, according to industry association.
Decrease in the number of tobacco companies influenced the tight government
regulations governing the production, promotion and cigarette consumption. Mr.
Hasan Aoni Aziz, Corporate Communication of the United Association of Cigarette
Manufacturing Indonesia (GAPPRI), assess increasing stringent government regulation
of the tobacco industry has been continuously decrease the number of firms in
the sector, especially small-medium in industries. The present market situation for agricultural
products is very competitive for a large number of similar companies operating
in the country. P.T. TCF MAJU is classified as a new company of its kind in the
country of which the operation has been growing slowly. The growth cigarette industries in Indonesia
is seen from the table as below:
The Growth of
Cigarettes in Indonesia Period 2009 – 2012
|
Description |
2009 |
2010 |
2011 |
2012* |
|
Total Production (billion stick) |
245.2 |
249.1 |
270.8 |
278.9 |
|
Number of Companies (unit) |
3,255 |
1,994 |
1,664 |
1,381 |
|
Number of Employee (person) |
687,224 |
700,000 |
725,000 |
780,000 |
|
Tax Receivable (trillion Rupiah) |
55.4 |
63.3 |
73.3 |
84.4 |
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 US$. 2,000,000 as stated in the articles of association of
the company. The financial condition of the company still depends on the
financial condition of its shareholders.
The management of P.T. TCF MAJU is very reclusive towards outsiders and
rejected to disclose its financial condition.
We observed that total sales turnover of the
company as of June to December 2012 amounted to US$.2.4 million increased to
US$.6.5 million as of January to December 2013. The company’s operation in 2013
yielded an estimated net profit of at least US$. 1.2 million and the company
has an estimated total net worth of at least US$. 4.0 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 P.T. TCF MAJU is headed by
Mr. Aw Ah Meng (44) as Director, a Malaysian businessman with more than 5 years
experience in white cigarette manufacturing and trading. In daily activities he is assisted by Mr.
Chin Teck Siong (32) 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. TCF MAJU) 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.62.69 |
|
|
1 |
Rs.102.97 |
|
Euro |
1 |
Rs.84.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.