MIRA INFORM REPORT

 

 

Report No. :

328327

Report Date :

27.06.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. VIREMA PARSHU STEEL

 

 

Registered Office :

TCC Batavia Tower 1 Level 6 Jalan K.H. Mas Mansyur Kav. 16 Karet Tengsin, Tanah Abang Jakarta Pusat, 10220

 

 

Country :

Indonesia

 

 

Date of Incorporation :

02.12.2014

 

 

Com. Reg. No.:

AHU-38732.40.10.2014

 

 

Legal Form :

P.T. (Perseroan Terbatas) or Limited Liability Company

 

 

Line of Business :

Subject s engaged in Steel Mills.

 

 

No. of Employee :

150 persons (Planned)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

--

NB

                                       New Business

 

--

 

Status :

New business

 

 

Payment Behaviour :

Unknown

 

 

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

 

Company name

 

P.T. VIREMA PARSHU STEEL

 

 

Address

 

Head Office

TCC Batavia Tower 1 Level 6

Jalan K.H. Mas Mansyur Kav. 16

Karet Tengsin, Tanah Abang

Jakarta Pusat, 10220

Indonesia

Phones             - (62-21) 2967 5006 (Hunting)

Fax                   - (62-21) 2967 5009

E-mail               - marketing@viremaimpex.com

Building Area    - 35 storey

Office Space    - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Desa Kedawung, Kecamatan Pabuaran

Subang

West Java

Indonesia

Land Area         - 80,000 sq. meters

Building Space  - 30,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

2 December 2014

 

 

Legal Form

 

P.T. (Perseroan Terbatas) or Limited Liability Company

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

No. AHU-38732.40.10.2014

Dated 9 December 2014

 

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 71.625.914.8-022.000

 

The Capital Investment Coordinating Board

No. 3441/I/IP/PMA/2014

Dated 1 December 2014

 

 

Related Companies

 

a.   P.T. VIREMA INPEX (Investment Holding)

b.   P.T. VIREMA TEKNO INDONESIA (Information Technology Solution Services)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 50,000,000.-

Issued Capital                                 : US$ 20,000,000.-

Paid up Capital                               : US$ 20,000,000.-

 

Shareholders/Owners :

a. P.T. VIREMA IMPEX                                                     - US$ 15,000,000.-

    Address : TCC Batavia Tower

  Jl. K.H. Mas Mansyur Kav. 126

 Kelurahan Karet Tengsin, Kecamatan Tanah

 Abang, Jakarta Pusat

 Indonesia

b. PARSHU LIMITED                                                         - US$   5,000,000.-

    Address : Seychelles

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Steel Mills

 

Production Capacity :

a.   Galvanized (Galvalum) Steel       - 150,000 tons p.a.

b.   Color Coating Steel                   - 100,000 tons p.a.

 

Total Investment :

a.   Equity Capital                           - US$   20.0 million

b.   Loan Capital                              - US$   80.0 million

c.   Total Investment                        - US$ 100.0 million

 

Started Operation :

November 2016 (Planned)

 

Brand Name :

Virema Parshu Steel

 

Technical Assistance :

Parshu Limited, Seychelles

 

Number of Employee :

150 persons (Planned)

 

Marketing Area :

Local       - 100%

 

Main Customer :

Automotive industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ESSAR INDONESIA

b. P.T. ISPAT STEEL

c. P.T. KRAKATAU STEEL Tbk

d. P.T. SRIREJEKI PERDANA STEEL

e. Etc.

 

Business Trend :

No Comment

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank MANDIRI Tbk

      Plaza Mandiri

      Jalan Jend. Gatot Subroto Kav. 36-38

      Jakarta Selatan

b.   P.T. Bank SBI INDONESIA

      Gedung Graha Mandiri

      Jalan Imam Bonjol No. 61

      Jakarta Pusat

c.   Hongkong and Shanghai Banking Corp., Ltd.

       World Trade Center, 3rd Floor

       Jalan Jend. Sudirman Kav. 29-31

       Jakarta Selatan

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

None

 

Net Profit (estimated) :

None

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Trivedi Kunj Bihari

Directors                                         - a. Mr. Manish Sharda

                                                        b. Mr. Rishi Sharda

 

Board of Commissioners :

President Commissioner                  - Mr. Virendra Kumar Sharda

Commissioners                               - a. Mrs. Dipika Trivedi

                                                        b. Mrs. Rekha Sharda

 

Signatories :

President Director (Mr. Trivedi Kunj Bihari) or one of the Directors (Mr. Manish Sharda or Mr. Rishi Sharda) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Above Average

 

Credit Recommendation :

Credit should be extended under guarantee

 

Proposed Credit Limit :

C.O.D. To small amount

 

Maximum Credit Limit :

No Comment

 

 

OVERALL PERFORMANCE

 

P.T. VIREMA PARSHU STEEL (P.T. VPS) was established in Jakarta based on notary deed Mrs. Hastuti Nainggolan, SH., no. 2 dated 2 December 2014 with an authorized capital of US$ 50,000,000 issued capital of US$ 20,000,000 entirely paid up. The founding and shareholders of the company are P.T. VIREMA IMPEX (75%) and PARSHU LIMITED of Seychelles (25%). The notary deed of incorporation was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-38732.40.10-2014 dated December 9, 2014.

 

P.T. VPS is a Foreign Investment (PMA) company facility to be engaged in the field of steel mills. Its plant is located at Kedawung village, Pabuaran district, Subang, West Java standing on a land bank of 80,000 sq. meters. According to the license the company will be produces of galvanized (galvalum) steel and color coating steel. P.T. VPS is incorporate in Indonesia, for setting up a manufacturing facility to take advantage of Indonesia's growing economy. The complex is under construction, and however in near future it will be 150'000 MT pa capacity of Galvalume Line and 100'000 MT pa capacity of Color coating facility along with various finishing lines for making profiles, trusses, and decks. According information the construction of the plant will absorbed an investment of US$ 100.0 million come from owned capital of US$ 20.0 million while the loan from loans. The construction of the plant has begun since April 2015 and scheduled to be commenced operation in November 2016. Currently the company is still in the stage of land clearing, and will soon be built steel mills. The construction of the steel plant will take about 18 months. It is estimated that construction of the steel plant will be completed November 2016. The production of light weight steel P.T. Virema Parshu Steel will be fully marketed in the country to meet the domestic market especially for automotive assembling industries and others. We note that P.T. VPS is very serious in realizing the project of the steel mills.

 

We have generally observed the demand for steel products had still been rising by 5% to 7% in the last five years. But the burden of the steel industry in the country is constrained due to the falling raw material scrap. Besides, the increased cost of production due to rising gas prices and the higher gas prices and the higher cost of imported raw materials. According to International Monetary Fund (IMF) in world economic outlook in July 2014, China’s GDP in 2010 reached 10.4% then decreased to be 9.3% in 2011; 7.7% in 2012 and 2013; which is projected to decrease to 7.4% in 2014. This decrement has massive impact, particularly to the steel industry where China is one of the largest steel producers in the world. With its economic downturn, China’s steel industry has 80 million tons of oversupply due to the decreased China’s domestic supply which caused market expansion to Indonesia. National steel then has to compete straightly with China’s steel with cheaper price and massive volume. The downfall trend to the Rupiah’s exchange rate against US Dollar also added to the burden of national steel industry. Until December 31st, 2014, rupiah’s exchange rate was in Rp. 12,440 for USD 1.

 

This rate was fell than the rate in July 2014, with the exchange rate was experiencing depreciation by an average Rp11,731 for USD 1 at that time, which fell by 19.96% compared with the average middle exchange rate until July 2013. The performance of Rupiah exchange rate is expected to be suppressed throughout 2015, along with several relatively weak external and internal indicators. Some government’s adjustment policies also have impacted the business’s cost in Indonesia. The increments of electricity to 65% in the past years, a quite significant natural gas prices increment; as well as the increment of labor fee to 65% in the past two years have forced many businessmen to formulate proper survival strategy to face the increment of load and cost.

 

 

To enable the optimization of national steel industry’s utilization, anti-dumping policy is highly required to prevent predatory pricing and unfair trade from steel importing producer and the implementation of free market in Indonesia. Anti-dumping is not merely as state’s protectionism policy against producers and importers, but as a part of Enhancement of Domestic Products Utilization which has many adding values to the domestic industry growth. With the regulations assistance and support from the government, the company is assured to be able to develop in the next future, in accordance to the state’s development agenda in enhancing domestic economic and better life quality.

 

Considering P.T. VPS having yet to be in operation, the financial condition of the company is just as it’s paid up capital of US$ 20.0 million as stated in its article of association. The financial condition of the company strongly depends on the financial condition of its shareholders. P.T. VPS is backed up by the PARSHU LIMITED of Seychelles.

 

 The management of P.T. VPS is led by Mr. Trivedi Kunj Bihari (54) a professional manager of India with experience in steel mills industry. Daily activity he is assisted by Mr. Manish Sharda (33) and Mr. Rishi Sharda (35) as Directors. The company's management will be handled by professional staff in the above business. The management will be handled by professional managers having wide relation with private businessmen of home and overseas as well as with the government sectors. We did not hear that the management of the company has been filed to the court for detrimental cases or involved in any business malpractices. Or our whole observation, we may conclude that P.T. VPS is a new company having yet to be in operation commercially. Considering P.T. VIREMA PARSHU STEEL having yet to be in operation, we recommend to treat prudently in business transaction and in extending a loan to the company.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.60

UK Pound

1

Rs.100.09

Euro

1

Rs.71.23

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 


 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

 
 

 

 


MIRA INFORM REPORT

 

 

Report No. :

328327

Report Date :

27.06.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. VIREMA PARSHU STEEL

 

 

Registered Office :

TCC Batavia Tower 1 Level 6 Jalan K.H. Mas Mansyur Kav. 16 Karet Tengsin, Tanah Abang Jakarta Pusat, 10220

 

 

Country :

Indonesia

 

 

Date of Incorporation :

02.12.2014

 

 

Com. Reg. No.:

AHU-38732.40.10.2014

 

 

Legal Form :

P.T. (Perseroan Terbatas) or Limited Liability Company

 

 

Line of Business :

Subject s engaged in Steel Mills.

 

 

No. of Employee :

150 persons (Planned)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

--

NB

                                       New Business

 

--

 

Status :

New business

 

 

Payment Behaviour :

Unknown

 

 

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

 

 

 

 


Company name

 

P.T. VIREMA PARSHU STEEL

 

 

Address

 

Head Office

TCC Batavia Tower 1 Level 6

Jalan K.H. Mas Mansyur Kav. 16

Karet Tengsin, Tanah Abang

Jakarta Pusat, 10220

Indonesia

Phones             - (62-21) 2967 5006 (Hunting)

Fax                   - (62-21) 2967 5009

E-mail               - marketing@viremaimpex.com

Building Area    - 35 storey

Office Space    - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Desa Kedawung, Kecamatan Pabuaran

Subang

West Java

Indonesia

Land Area         - 80,000 sq. meters

Building Space  - 30,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

2 December 2014

 

 

Legal Form

 

P.T. (Perseroan Terbatas) or Limited Liability Company

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

No. AHU-38732.40.10.2014

Dated 9 December 2014

 

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 71.625.914.8-022.000

 

The Capital Investment Coordinating Board

No. 3441/I/IP/PMA/2014

Dated 1 December 2014

 

 

Related Companies

 

a.   P.T. VIREMA INPEX (Investment Holding)

b.   P.T. VIREMA TEKNO INDONESIA (Information Technology Solution Services)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 50,000,000.-

Issued Capital                                 : US$ 20,000,000.-

Paid up Capital                               : US$ 20,000,000.-

 

Shareholders/Owners :

a. P.T. VIREMA IMPEX                                                      - US$ 15,000,000.-

    Address : TCC Batavia Tower

  Jl. K.H. Mas Mansyur Kav. 126

 Kelurahan Karet Tengsin, Kecamatan Tanah

 Abang, Jakarta Pusat

 Indonesia

b. PARSHU LIMITED                                                         - US$   5,000,000.-

    Address : Seychelles

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Steel Mills

 

Production Capacity :

a.   Galvanized (Galvalum) Steel       - 150,000 tons p.a.

b.   Color Coating Steel                   - 100,000 tons p.a.

 

Total Investment :

a.   Equity Capital                           - US$   20.0 million

b.   Loan Capital                              - US$   80.0 million

c.   Total Investment                        - US$ 100.0 million

 

Started Operation :

November 2016 (Planned)

 

Brand Name :

Virema Parshu Steel

 

Technical Assistance :

Parshu Limited, Seychelles

 

Number of Employee :

150 persons (Planned)

 

Marketing Area :

Local       - 100%

 

Main Customer :

Automotive industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ESSAR INDONESIA

b. P.T. ISPAT STEEL

c. P.T. KRAKATAU STEEL Tbk

d. P.T. SRIREJEKI PERDANA STEEL

e. Etc.

 

Business Trend :

No Comment

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank MANDIRI Tbk

      Plaza Mandiri

      Jalan Jend. Gatot Subroto Kav. 36-38

      Jakarta Selatan

b.   P.T. Bank SBI INDONESIA

      Gedung Graha Mandiri

      Jalan Imam Bonjol No. 61

      Jakarta Pusat

c.   Hongkong and Shanghai Banking Corp., Ltd.

       World Trade Center, 3rd Floor

       Jalan Jend. Sudirman Kav. 29-31

       Jakarta Selatan

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

None

 

Net Profit (estimated) :

None

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Trivedi Kunj Bihari

Directors                                         - a. Mr. Manish Sharda

                                                        b. Mr. Rishi Sharda

 

Board of Commissioners :

President Commissioner                  - Mr. Virendra Kumar Sharda

Commissioners                               - a. Mrs. Dipika Trivedi

                                                        b. Mrs. Rekha Sharda

 

Signatories :

President Director (Mr. Trivedi Kunj Bihari) or one of the Directors (Mr. Manish Sharda or Mr. Rishi Sharda) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Above Average

 

Credit Recommendation :

Credit should be extended under guarantee

 

Proposed Credit Limit :

C.O.D. To small amount

 

Maximum Credit Limit :

No Comment

 

 

OVERALL PERFORMANCE

 

P.T. VIREMA PARSHU STEEL (P.T. VPS) was established in Jakarta based on notary deed Mrs. Hastuti Nainggolan, SH., no. 2 dated 2 December 2014 with an authorized capital of US$ 50,000,000 issued capital of US$ 20,000,000 entirely paid up. The founding and shareholders of the company are P.T. VIREMA IMPEX (75%) and PARSHU LIMITED of Seychelles (25%). The notary deed of incorporation was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-38732.40.10-2014 dated December 9, 2014.

 

P.T. VPS is a Foreign Investment (PMA) company facility to be engaged in the field of steel mills. Its plant is located at Kedawung village, Pabuaran district, Subang, West Java standing on a land bank of 80,000 sq. meters. According to the license the company will be produces of galvanized (galvalum) steel and color coating steel. P.T. VPS is incorporate in Indonesia, for setting up a manufacturing facility to take advantage of Indonesia's growing economy. The complex is under construction, and however in near future it will be 150'000 MT pa capacity of Galvalume Line and 100'000 MT pa capacity of Color coating facility along with various finishing lines for making profiles, trusses, and decks. According information the construction of the plant will absorbed an investment of US$ 100.0 million come from owned capital of US$ 20.0 million while the loan from loans. The construction of the plant has begun since April 2015 and scheduled to be commenced operation in November 2016. Currently the company is still in the stage of land clearing, and will soon be built steel mills. The construction of the steel plant will take about 18 months. It is estimated that construction of the steel plant will be completed November 2016. The production of light weight steel P.T. Virema Parshu Steel will be fully marketed in the country to meet the domestic market especially for automotive assembling industries and others. We note that P.T. VPS is very serious in realizing the project of the steel mills.

 

We have generally observed the demand for steel products had still been rising by 5% to 7% in the last five years. But the burden of the steel industry in the country is constrained due to the falling raw material scrap. Besides, the increased cost of production due to rising gas prices and the higher gas prices and the higher cost of imported raw materials. According to International Monetary Fund (IMF) in world economic outlook in July 2014, China’s GDP in 2010 reached 10.4% then decreased to be 9.3% in 2011; 7.7% in 2012 and 2013; which is projected to decrease to 7.4% in 2014. This decrement has massive impact, particularly to the steel industry where China is one of the largest steel producers in the world. With its economic downturn, China’s steel industry has 80 million tons of oversupply due to the decreased China’s domestic supply which caused market expansion to Indonesia. National steel then has to compete straightly with China’s steel with cheaper price and massive volume. The downfall trend to the Rupiah’s exchange rate against US Dollar also added to the burden of national steel industry. Until December 31st, 2014, rupiah’s exchange rate was in Rp. 12,440 for USD 1.

 

This rate was fell than the rate in July 2014, with the exchange rate was experiencing depreciation by an average Rp11,731 for USD 1 at that time, which fell by 19.96% compared with the average middle exchange rate until July 2013. The performance of Rupiah exchange rate is expected to be suppressed throughout 2015, along with several relatively weak external and internal indicators. Some government’s adjustment policies also have impacted the business’s cost in Indonesia. The increments of electricity to 65% in the past years, a quite significant natural gas prices increment; as well as the increment of labor fee to 65% in the past two years have forced many businessmen to formulate proper survival strategy to face the increment of load and cost.

 

 

To enable the optimization of national steel industry’s utilization, anti-dumping policy is highly required to prevent predatory pricing and unfair trade from steel importing producer and the implementation of free market in Indonesia. Anti-dumping is not merely as state’s protectionism policy against producers and importers, but as a part of Enhancement of Domestic Products Utilization which has many adding values to the domestic industry growth. With the regulations assistance and support from the government, the company is assured to be able to develop in the next future, in accordance to the state’s development agenda in enhancing domestic economic and better life quality.

 

Considering P.T. VPS having yet to be in operation, the financial condition of the company is just as it’s paid up capital of US$ 20.0 million as stated in its article of association. The financial condition of the company strongly depends on the financial condition of its shareholders. P.T. VPS is backed up by the PARSHU LIMITED of Seychelles.

 

 The management of P.T. VPS is led by Mr. Trivedi Kunj Bihari (54) a professional manager of India with experience in steel mills industry. Daily activity he is assisted by Mr. Manish Sharda (33) and Mr. Rishi Sharda (35) as Directors. The company's management will be handled by professional staff in the above business. The management will be handled by professional managers having wide relation with private businessmen of home and overseas as well as with the government sectors. We did not hear that the management of the company has been filed to the court for detrimental cases or involved in any business malpractices. Or our whole observation, we may conclude that P.T. VPS is a new company having yet to be in operation commercially. Considering P.T. VIREMA PARSHU STEEL having yet to be in operation, we recommend to treat prudently in business transaction and in extending a loan to the company.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.60

UK Pound

1

Rs.100.09

Euro

1

Rs.71.23

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 


 

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

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NB

                                       New Business

 

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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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.