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Report Date : |
23.07.2014 |
IDENTIFICATION DETAILS
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Name : |
C.V. VICTORY JAYA
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Registered Office : |
Jalan Ketitang Permai
Block BD No. 12, |
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Country : |
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Date of Incorporation : |
July 2013 |
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Legal Form : |
partnership
with Sleeping Partners |
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Line of Business : |
· Engaged in dealing with cigarette processing, supply and export-import of tobacco Engaged in producing cigarette sauce which supplied to
various clove cigarettes. |
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No of Employees : |
08 |
RATING & COMMENTS
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MIRA’s Rating : |
NB |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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-- |
NB |
New Business |
-- |
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Status : |
New Business |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Indonesia |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 |
C.V. VICTORY JAYA
Head Office &
Workshop
Jalan Ketitang
Permai Block BD No. 12
Surabaya, 60232
East Java
Indonesia
Phone -
(62-31) 5825 1458
Fax - (62-31) 5829 2558
E-mail - vincensiusjonan@yahoo.com
Building Area - 2 storey
Office Space - 130 sq. meters
Region - Commercial
Status - Rent
July 2013
C.V.
(Commanditaire Vennootschap) or partnership with sleeping partners
Not Required
National Private
Company
The Department of
Finance
Not Available
None
Capital
Structure :
Owned Capital : Rp. 400
million
Shareholders/Owners
:
a. Mr.
Vincensius Jonan (Active Partner)
b. Mrs. Dessy
Jonan (Silent Partner)
Lines of Business :
Sauce Processing and Export Import
of Tobacco
Production Capacity :
Cigarette Sauce - 9,600 KG
Total Investment :
None
Started Operation :
July 2013
Brand Name :
Victory Jaya
Technical Assistance :
None
Number of Employee :
8 persons
Marketing Area :
Local - 100%
Main Customer :
Clove cigarettes industries
Market Situation :
Very Competitive
Main Competitors :
a. C.V. BANGKIT JAYA
b. P.T. BINTANG LIMA
c. P.T. GADING MAS INDONESIA TOBACCO
d. P.T. SWARA MAHARDIKA UTAMA
Business Trend :
Growing
Banker :
P.T. Bank CENTRAL
ASIA Tbk
Jalan H.R.
Muhammad 17
Surabaya, East
Java
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation
record in our database
Annual Sales
(estimated) :
2013 – Rp. 5.0
billion (July – December)
Net Profit
(estimated) :
2013 – Rp. 250
million (July – December)
Payment Manner
:
Average
Financial
Comments :
Satisfactory
Board of Management :
Director - Mr. Vincensius Jonan
Board of Commissioners :
Commissioner -
Mrs. Dessy Jonan
Signatories :
Director (Mr. Vincensius
Jojan) is only the authorized person to sign the loan on behalf of the company.
Management Capability :
Satisfactory
Business Morality :
Satisfactory
C.V. VICTORY JAYA (C.V. VJ) was established in Surabaya, East Java in
July 2013 with the legal status of Commanditaire Vennootschap (C.V.) or
partnership with sleeping partner. Founders and owners of the company are Mr.
Vincensius Jonan as active partner and his wife Mrs. Dessy Jonan as silent
partners both are Indonesian business family of Chinese extraction. Being as a C.V. company,
the amount of its authorized capital was not mentioned at the time of its
establishment. We estimate, C.V. VJ has
own capital of about Rp. 400 million and it will be rising in line with the
progress of its business operation.
C.V. VJ is a national private company started to be operating since July
2013 dealing with cigarette processing, supply and export import of tobacco. According
information the company produces of cigarette sauce of 800 KG per month wholly
supplied to various clove cigarettes in Malang, East Java. Besides, to support
of its operation the company is also engaged in the field of import of tobacco
wholly imported from India, Turkey, and the USA. Mr. Vincensius Jonan, director
of the company said the cigarette sauce blended in their workshop located at
jalan Ketintang Permai Block BD No. 12, Surabaya, East Java. Further, he also
added that the whole products marketed and supplied to various small cigarettes
industries which operating in Malang, East Java among others are P.T. GANDUM,
C.V. MITRA INDONESIA, P.T. BATU KARANG, P.T. CIPTA ALAM SEJAHTERA, Pabrik Rokok
SUKUN, Pabrik Rokok INSAN JAYA BINTANG, Pabrik Rokok GUDANG BARU, Pabrik Rokok
BANYU BIRU, Pabrik Rokok CAKRA, and others. We observe that C.V. VJ is a small
sized company of its kinds with operation has been growing slowly in the last 1
year.
In general, the demand for tobacco
increased with increasing cigarette production in the country. However, the
increased production of cigarettes is not followed by increased production of
tobacco. National tobacco production within five years has been declining
dramatically. The Government recently issued rules regarding Material Safety
Addictive Substances Containing Form of Tobacco Products for Health as
stipulated in Government Regulation (PP) No. 109 of 2012. The rules ,
indirectly , have been regarded as controlled by foreign tobacco companies ,
because of some existing chapters , described how the tobacco industry requires
some rules that are difficult to implement implemented by local companies. No
doubt, some NGOs and associations that fight for the rights of small cigarette
industry catapult notes of protest to the government related to the rule. In
addition the millions of people who depend on the tobacco industry in danger of
losing the source of income. As a result, there will be increased unemployment.
In fact, the President requires to all levels of government to make the rules
that pro-job, pro-poor, pro-growth and pro-environment.
For large -scale cigarette industries
that have large capital and advanced technology may be prepared for this rule.
But for a small cigarette industry will be difficult to adjust. Moreover, most
of the rules contained in this PP is precisely focused to dominate the clove
cigarettes cigarette production in Indonesia. 93 % of cigarettes in Indonesia
is dominated by clove cigarettes remaining 7 % by cigarettes. So you can imagine
how the future Indonesian clove cigarette industry will be hit by this PP
(government regulation).
Farmers play an important role in the
cigarette industry. If there are no tobacco raw materials then there is no
production. So with this rule, it is estimated that about 6 million farmers who
will lose their source of income as farmers. It might, Indonesian tobacco
prices will be bought cheaply because of the existence of this rule. Not only
that before this begins rule, employers in the Kudus cigarettes already shut
down the factory. Of the 110 existing cigarette factories in Kudus, currently
lived 80 factories that still survive. This fact could be decreased again after
this rule is applied.
The small cigarettes industry greatest
hope is that PP is canceled. Because of the early manufacturing alone is
controlled by Philip Morris that it is ready with products such rules, so he
asked the government to implement its business in Indonesia to be free. There
must be no foreign interference in making the rules. If the government is pro-
people, then create a rule that people can prosper.
Tobacco Production, Export Volume and Export Value,
2008 - 2013
|
Year |
Tobacco Production (Thousand Ton) |
Export Volume (Thousand Ton) |
Export Value (Million US$) |
|
2008 |
2,6 |
30,0 |
73,7 |
|
2009 |
4,1 |
32,8 |
93,7 |
|
2010 |
3,4 |
28,0 |
73,7 |
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2011 |
2,9 |
18,8 |
61,6 |
|
2012 |
3,2 |
16,5 |
61,5 |
|
2013 |
3.8 |
17.2 |
62.0 |
Source: Central Bureau of Statistic (BPS)
Until this time C.V. VJ 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 estimated
that total sales turnover of the company in the first year operation July to
December 2013 amounted to Rp. 5.0 billion with a net profit of Rp. 250 million
and projected to go on rising by at least 6% in 2014. 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. VJ is headed by Mr. Vincensius Jonan (49) a
businessman with experience in cigarette sauce processing, supply and export
import of tobacco. 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. C.V. VICTORY JAYA is sufficiently fairly good for business
transaction. However, in view of the unstable political in the country we
recommend to treats prudently in extending a loan to the company.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.60.23 |
|
UK Pound |
1 |
Rs.102.86 |
|
Euro |
1 |
Rs.81.44 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.