MIRA INFORM REPORT

 

 

Report Date :

08.05.2014

 

IDENTIFICATION DETAILS

 

Name :

PD. GARUDA AGROBUSINESS

 

 

Registered Office :

Jl. Raya Cibabat No 312, Bandung 40513; West Java

 

 

Country :

Indonesia

 

 

Year of Establishment :

1969

 

 

Com. Reg. No.:

Not Available 

 

 

Legal Form :

Sole Proprietary Company

 

 

Line of Business :

·         Engaged in trading and exporting of Agricultural Products such as tamarind, cinnamon, cocoa butter & powder, cardamom, nutmeg, candlenut, white pepper, cloves, cloves & green bean.

·         Subject imported Agriculture Products from China (garlic, sesame, onion) and from India (groundnut, sesame, dried chilies, coriander). 

 

 

No of Employees :

55

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

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

 


Correct Name of Company

 

PD. GARUDA AGROBUSINESS

 

company Address

 

Head Office

Jl. Raya Cibabat No 312

Bandung 40513

West Java

Indonesia

Phones             - (62-22) 6652426

Fax                   - (62-22) 6644483

Building Area    - 1,200 sq. meters

Office Space    -    220 sq. meters

Region              - Commercial

Status               - Owned

 

 

Year of Established

 

1969

 

 

Legal Form

 

PD. (Perusahaan Dagang) or Sole Proprietary Company

 

 

Company Reg.No.

 

The Ministry of Law and Human Rights

Not required

 

 

Company Status

 

Private Company

 


Permit by the Government Department

 

The Department of Finance

NPWP (Tax ID) Not available

 

Related Company

 

Not Available

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Own Capital                  - Rp. 700,000,000.-

 

Owners :

a. Mrs. Hartati Husein                                                                                                        - 50%

b. Mr. Sonny Husein Nugroho                        - 50%

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Exporter and Importer of Agricultural Products

 

Production Capacity :

None

 

Total Investment :

Equity Capital          - Rp. 3.0 billion

 

Started Operation :

1969

 

Brand Name :

None

 

Technical Assistance :

None

 

Number of Employee :

55 persons

 

Marketing Area :

Domestic (local)            - 50%

Overseas (Export)         - 50%

 

Main Customers :

a. Traditional Market, Food and Beverages Industries, Agriculture products Stores, etc.

b. Overseas buyers in North and South America, Europe, Asia, Southeast Asia and Middle East

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. JASA INDO MAKMUR

b. P.T. ADI SAMPOERNO

c. P.T. DAKAI IMPEX

d. P.T. ALAM INDO RAMA

e. C.V. BUMI DJAJA

f.  P.T. ADI SAMPOERNO

g. C.V. PUTRA NUSA

h. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank ROYAL INDONESIA

      Bandung Branch

      West Java, Indonesia

b.   P.T. Bank CENTRAL ASIA Tbk

      Bandung Branch

      West Java, Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 53.0 billion

2012 – Rp. 59.0 billion

2013 – Rp. 65.0 billion

 

Net Profit (estimated) :

2011 – Rp. 2.2 billion

2012 – Rp. 2.5 billion

2013 – Rp. 2.8 billion

 

Payment Manner :

Fairly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Sonny Husein Nugroho

 

Board of Commissioners :

Commissioner                                 - Mrs. Hartati Husein

 

Signatories :

Director (Mr. Sonny Husein Nugroho) which must be approved by the board of commissioner (Mrs. Hartati Husein)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

PD. GARUDA AGROBUSINESS (PD. GAB) was established in 1969 in Bandung, West Java with the legal status of Sole Proprietary Company.  Founders and owners of the company is the late Mr. Husein, an Indonesian businessman of Chinese origin. Being as Sole Proprietary Company, the amount of its authorized capital was not mentioned at the time of its establishment.  In 1990’s, Mr. Husein passed away and then he was replaced by his wife Mr. Hartati Husein and his son Mr. Sonny Husein Nugroho.   We estimated that PD. GAB has own capital of about Rp. 700 million and it will be rising in line with the progress of its business operation.

 

PD. GAB is dealing with trading, exporting and importing agriculture products.   Ms. Rani, senior staff of the company, said that the activity volume of the company is mostly dealing with trading and exporting of agricultural products such as tamarind, cinnamon, cocoa butter & powder, cardamom, nutmeg, candlenut, white pepper, cloves, cloves & green bean. They exported Indonesian origin commodities to many countries in North and South America, Europe Eastern, Asia, Southeast Asia and Middle East.  Besides that the company imported agriculture products from China (garlic, sesame, onion) and from India (groundnut, sesame, dried chilies, coriander).  The whole import products supplied to local markets such as snack food industries, traditional markets, food and beverage industries, hypermarket and supermarket, agriculture products stores and retails shops in the country.  We observed that PD. GAB is classified as a medium sized company of its kind in the country of which the operation has been growing in the last three years.

 

We have noticed that the demand for agricultural products had increased some 7% to 8% per annum in the last five years in line with the growth of industrial manufacturing in the country and international market. In the coming years, the growth rate of demand is estimated at about 5% to 6% per annum. The present market situation for agricultural products is very competitive for a large number of similar companies operating in the country. Meanwhile, competition is quite heavy in the export import of agricultural products with many companies now doing business in this field in Indonesia.  Business position of PD. GAB is favorable for it has controlled a wide marketing network at home and abroad.

 

The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly.  The management of PD. GAB is very reclusive towards outsiders and rejected to disclose its financial condition. However, we estimated that total sales turnover of the company in 2011 amounted to Rp. 53.0 billion increased to Rp. 59.0 billion in 2012 and rose again to Rp. 65.0 billion in 2013 and projected to go on rising again by at least 8% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 2.8 billion and the company has an estimated total networth of at least Rp. 8.0 billion. 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.  

 

PD. GAB's management is headed by Mr. Sonny Husein Nugroho (49) as Director, who has about more than 19 years of experience in trading, export and import of agricultural products.  It is also handled by a number of experienced staff, having maintained a wide business relation among private businessmen at home and abroad. So far, we did not hear that the company’s management involved in the business malpractices or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

PD. GARUDA AGROBUSINESS is sufficiently fairly good for business transaction.  However, in view of the economic slowdown and political situation in the country is warming we recommend to treat prudently in extending a loan to the company.

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.04

UK Pound

1

Rs.101.97

Euro

1

Rs.83.58

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.