MIRA INFORM REPORT

 

 

Report No. :

335607

Report Date :

13.08.2015

 

IDENTIFICATION DETAILS

 

Name :

UD. WATTA TEGUH MANDIRI

 

 

Registered Office :

Jalan Kunir No. 12-14, Surabaya, 60175, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

October 1996

 

 

Legal Form :

Sole Proprietary Company

 

 

Line of Business :

Trading, Export Import of Agricultural Commodities Products

 

 

No. of Employees :

8

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Indonesia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. 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, a current account deficit, and unequal resource distribution among regions. President Joko WIDODO - elected in July 2014 - has emphasized maritime and other infrastructure development, and especially increased electric power capacity, since taking office. Fuel subsidies were almost completely removed in early 2015, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration will not be completed by the previously-set deadline of year-end 2015.

 

Source : CIA

 


 

BASIC SEARCH

 

Name of Company :

UD. WATTA TEGUH MANDIRI

 

A d d r e s s :

Head Office

Jalan Kunir No. 12-14

Surabaya, 60175

East Java

Indonesia

Phones             - (62-31) 3570166, 3545362

Fax                   - (62-31) 3570172, 3570173

Building Area    - 2 storey

Office Space    - 120 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

October 1996

 

Legal Form :

Sole Proprietary Company

 

Company Reg. No. :

Not Required

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

Not Available

 

Related Company :

P.T. WATTARI TERANGABADI (International Freight Forwarding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 150.0 million

 

Owners :

a. Mr. Teguh Wiyono

b. Mr. Surya Wiyono

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Export Import of Agricultural Commodities Products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

October 1996

 

Brand Name :

Watta Teguh Mandiri

 

Technical Assistance :

None

 

Number of Employee :

8 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Traditional markets

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ADI SAMPOERNO

b. P.T. ALAM INDORAMA

c. P.T. DAKAI IMPEX

d. P.T. SUPA SURYA NIAGA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CENTRAL ASIA Tbk

      Gubeng – Surabaya Branch

      Surabaya, East Java

      Indonesia

 

b.   P.T. Bank CIMB NIAGA Tbk

      Jalan Basuki Rachmat 8-12

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 3.0 billion

2013 – Rp. 3.5 billion

2014 – Rp. 4.0 billion

 

Net Profit (estimated) :

2012 – Rp. 180 million

2013 – Rp. 210 million

2014 – Rp. 240 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Teguh Wiyono

Manager                                         - Mr. Surya Wiyono

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. Teguh Wiyono) is only the authorized person to sign the loan on behalf of the company.

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

Based on search and investigation result the correct name of the Subjects is UD. WATTA TEGUH MANDIRI not UD. WATTA TEGHU MANDIRI as stated in your order ref. no. 335607 dated 4 August 2015.

 

UD. WATTA TEGUH MANDIRI (UD. WTM) was incorporated in Surabaya, East Java in October 1996 with the status of Sole Proprietary Company. Founder and owner of the company is Mr. Teguh Wiyono and his young brothers Mr. Surya Wiyono, both of are Indonesian business family of Chinese extraction. Being as Sole Proprietary Company, the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, the company has own capital of about Rp. 150 million and it will be rising in line with the progress of its business operation.

 

UD. WTM is a sole proprietary company started with operating since October 1996 dealing with trading, export import of agricultural commodities products. In its operation the company focuses it activity in specialized in trading export and import of agriculture commodities such as cocoa powder, cocoa cakes, cocoa butter, desiccated coconut powder etc; cloves, clove stem, cumin seeds, fennel seeds, fenugreek seeds, ginger, turmeric, mustard seeds, nutmegs, candlenut, long/white/black pepper, cassia vera, betel nut, dried red chili etc; green mug beans, black eye beans, brown beans, sunflower seeds, raw cashew nut etc. Currently the company import and sells of garlic, red onion, ground nuts, green bean, soybean and chili which imported from India, China, Vietnam and others. According information from Mr. Surya Wiyono, Manager of the company explained the whole products distributed and supplied through traditional markets in East Java and Eastern Indonesia. We observe UD. WTM is classified a small sized company of its kinds in the country with operation has been grow with slowly in the last three years.

 

We have noticed that the demand for agricultural products had increased some 10% to 11% 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 6% to 7% 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.

 

Until this time UD. WTM 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 2012 amounted to Rp. 3.0 billion increased to Rp. 3.5 billion in 2013 rose to Rp. 4.0 billion in 2014 and projected to go on rising by at least 6% in 2015. The operation in 2014 yielded an estimated net profit of at least Rp. 240 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 UD. WTM is led by Mr. Teguh Wiyono (50) a businessman with experience in trading, export import of agricultural commodities products. 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. UD. WATTA TEGUH MANDIRI is sufficiently fairly good for business cooperation.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.83

UK Pound

1

Rs.101.00

Euro

1

Rs.71.82

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

               

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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