MIRA INFORM REPORT

 

 

Report No. :

332319

Report Date :

28.07.2015

 

IDENTIFICATION DETAILS

 

Name :

C.V. MERCURY GLOBAL

 

 

Registered Office :

Jalan Pak Kasih No. 2 Level 2, Pontianak, 78117, West Kalimantan

 

 

Country :

Indonesia

 

 

Year of Establishment :

2000

 

 

Legal Form :

Partnership with Sleeping Partners

 

 

Line of Business :

General Trading and Importer

 

(Note: We tried to confirm obtain the details activity but the same is not available from any source.)

 

 

No. of Employees :

3

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Small Company 

 

 

Payment Behaviour :

Slow but correct

 

 

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 :

C.V. MERCURY GLOBAL

 

A d d r e s s :

Head Office

Jalan Pak Kasih No. 2 Level 2

Pontianak, 78117

West Kalimantan

Indonesia

Phone               - (62-561) 735287

Fax                   - (62-561) 733291

Building Area    - 2 storey

Office Space    - 120 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

2000’s

 

Legal Form :

C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partners

 

Company Reg. No. :

Not Required

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

Not Available

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 100 million

 

Owners :

a. Mr. Sunaryo (Active Partner)

b. Mr. Sugandi (Silent Partner)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

General Trading and Importer

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

2000

 

Brand Name :

Mercury Global

 

Technical Assistance :

None

 

Number of Employee :

3 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Trader and distributors

 

Market Situation :

Very Competitive

 

Main Competitors :

a. C.V. ABADI SEJAHTERA

b. C.V. BINTANG PONTIANAK

c. C.V. CENTRAL LUCKY

d. C.V. DAMAI MANDIRI

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

Pontianak Main Branch

West Kalimantan

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 2.1 billion

2013 – Rp. 2.3 billion

2014 – Rp. 2.5 billion

 

Net Profit (estimated) :

2012 – Rp. 126 million

2013 – Rp. 138 million

2014 – Rp. 150 million

 

Payment Manner :

Sometimes delay

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Sunaryo

 

Board of Commissioners :

Commissioner                                 - Mr. Sugandi

 

Signatories :

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

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

C.V. MERCURY GLOBAL (C.V. MG) was incorporated in Pontianak, West Kalimantan in 2000 with the legal status of C.V. (Commanditaire Vennootschap) or partnership with sleeping partners. The company was founded by Mr. Sugandi as silent partner and his young brother Mr. Sunaryo as active partner 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. MG has own capital of about Rp. 100 million and it will be rising in line with the progress of its business operation.

 

C.V. MG is a small sized company started with operating since 2000 dealing with general trading, importing and distribution services. According information from Mr. Sunaryo, Director and owner of the company explained the merchandise goods products are automotive component and parts, machinery component and parts, industrial machinery, component and parts, fruits, garlic, red onion, peanuts and others. Further Mr. Sunaryo also added the company is able imported of various raw materials and other industrial component based on job order basis from customers. Currently the company import of automotive component and parts from India, China, Taiwan and other countries. Then the whole products marketed locally through various trader and shops of automotive parts, repair and maintenance of motorcars which operating in Pontianak, West Kalimantan. We observe C.V. MG is classified a small sized company of its kinds in the country.

 

Based on the forecast from some economists, Indonesia’s economic growth in 2015 is still challenging. Bank Indonesia has decided to maintain the BI Rate at 7.75% based on the evaluation of the 2015 economic outlook. This is also in line with the efforts to steer inflation around 4% by 2015, while supporting the control of the current account deficit to a more healthy level. The Rupiah currency is predicted to be in the average range of Rp. 12,500 per US dollar until mid 2015. Bank Indonesia estimates that Indonesia’s economic growth will be around 5.4 to 5.8% in 2015. The above conditions indicate that in general, Indonesia’s economic condition is not growing optimally and mainly focuses on maintaining economic stability. Indonesia National Budget Plans 2015, the government has predicted the following 2015 global economic challenges which cover; uncertain global economy triggered by either economic downturn or economic crisis in many countries; the risk caused by the fluctuating global commodity prices, especially the raw oil price; commitment to support the ASEAN Economic Community (AEC); and implementation of the global development agenda post 2015. Meanwhile, the forecasted 2015 domestic economic challenges will cover: An increase in the slowing down of economic growth; risk in the domestic financial market; imbalanced payment balance sheet; and reduced social gap. It is estimated that industrial growth equal to or less compared to the previous year.

 

Until this time C.V. MG 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. 2.1 billion increased to Rp. 2.3 billion in 2013 rose to Rp. 2.5 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. 150 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 C.V. MG is led by Mr. Sunaryo (47) a businessman with experience in general trading, importing, distribution. 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. However, in view of C.V. MERCURY GLOBAL classified a small sized company and its operation grow with slowly we recommend to treat prudently in extending a loan to the company.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.00

UK Pound

1

Rs.99.43

Euro

1

Rs.70.61

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

NIT

 

 

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.