Under the Regulation of the Financial Services Authority No. 29/POJK.05/2014 concerning Financing Company Financing, the Company aligns its business through the amendment of the Company’s Articles of Association. In Article 3 the aims and objectives of the Company are:
Investment Financing is the financing for the procurement of capital goods and services necessary for business/investment activities, rehabilitation, modernization, expansion or relocation of place of business/investment given to the debtor in more than 2 (two) years.
Investment Financing is done by:
Working Capital Financing
Working Capital Financing is the financing to meet the needs of expenditures that run out in a cycle of business activities of the debtor and is a financing with a period of maximum 2 (two) years.
Working Capital Financing is done by:
Multi-Use Financing is the financing for the procurement of goods and/or services required by the debtor for consumption/consumption and not for business purposes (productive activity) within the agreed timeframe.
Multipurpose financing is done by:
Business Performance Analysis
The Company experienced a decrease in total assets by 12.26% in 2020, from Rp.94.63 billion in 2019 to Rp. 83.03 billion in 2020. This decrease mainly occurred due to decrease in the cash and cash equivalent amounting to Rp. 12.65 billion (65,84%) from Rp. 19.21 billion in 2019 to Rp. 6.56 billion in 2020 and consumer financing receivables amounting to Rp. 1.64 billion (4.65%) from Rp. 15.5 billion in 2019 to Rp. 13.86 billion in 2020.
The details and percentage of assets of the Company as of December 31, 2020 and December 31, 2019 as follows
Total liabilites in 2020 decreased amounting to Rp 705.63 million (54.72%) compared to the position at the end of 2019. This incline accured mainly due to increase in Other Payabales amounting to Rp 577 million (70,29%), from Rp 820.92 in 2019 to Rp 243.92 million in 2020.
The Company’s total equity in 2020 decreased by 11.67% amounting to rp. 10.89 Billion which amounting to Rp 82.45 billio from Rp 93.34 billion in 2019, this waas due to decreased in other comprehensive income from Rp. 11.1 billion in 2019 to (Rp. 18.34) billion in 2020.
The Company’s revenue comes from factoring and consumer financing, administration income, provision income, fine income, bank interest income and other income.
As of December 31, 2020, total revenue was recorded at Rp 3.24 billion, down by 78.68% compared to the previous year as of December 31, 2019, which was Rp 15.19 billion.
The Company’s expenses are derived from labor, allowance for impairment losses, general and administrative, post-employment benefits, and other expenses. As of December 31, 2020, the Company recorded a total expenses of Rp 4,81 billion, increased by 40.58% compared to December 31, 2019, which amounted to Rp 3.42 billion. The increase in total expenses was mainly due to implementation of PSAK 71 which provided incremental of impairment losses amounted to Rp 878 million from Rp 19,3 million to Rp. 898 million.
Comprehensive Profit (Loss)
The Company’s total comprehensive income for the year ended December 31, 2020 amounted to (Rp. 30.69 billion), a decrease of 273.76% compared to the year ended December 31, 2019 which amounted to Rp. 17.66 billion. The decrease in comprehensive income was due to decrease in value of available investment securities for sale (not yet realized).
Cash flow analysis for operating activities in finance companies is different from other companies in general, where negative value or excessive use of cash, especially for new financing shows the ability of the finance company to obtain new financing. In other words, the greater the use of cash from operating activities, especially on new financing reflects the better growth of company. The details of the Company’s cash flows in 2020 and 2019 can be seen in the table:
Net Cash Obtained from Operating Activities
Net cash used/provided for/by operating activities is Rp. 720 million and (Rp. 4.32 billion) for the year ended December 31, 2020 and 2019. The positive amount in net cash obtained from operating activities that occurred on December 31, 2020 compared to December 31, 2019 which caused by the delay in disbursement of financing by the Company due to Covid-19 Pandemic.
Net Cash Used for Investment Activities
Net cash used/provided for/by investment activities is amounting to (Rp. 33.73 billion) and Rp. 19.48 million for the years ended December 31, 2020 and 2019. Net cash provided by investing activities mainly from purchasing of investments in available-for-sale securities in 2020.
Primary Financial Ratio
The Ability Of The Payments Of Loans
The company always monitors the cash flow projections and the availability of funds to pay off short-term liabilities. The company does not have bank loans or other long-term liabilities.
The details of the age of consumer financing receivables in 2020 and 2019 are as follows:
Capital Structure and Management Policy on Capital Structure
The Company’s capital still uses its own capital, which is derived from paid up capital and retained earnings. The stock capital which was issued and paid-up in 2020 was Rp 34.36 billion.
Target and Realization of Fiscal Year and the Next Target of Fiscal Year
In the midst of the continuing economic slowdown due to the covid-19 pandemic, the Company is aware of adjusting the achievement target for financing distribution in 2020. The disbursed financing reached 100% of the target adjusted in the Company’s business plan of Rp 16.1 billion. For 2021, the Company targets total financing to reach Rp 45.89 billion or a growth of 33.36% from the realization or achievement of financing in 2020.
Informations and Material Facts Which Occurred After the Date of Accountant Report
The Company has completed the Limited Public Offering I to the Company’s Shareholders in the framework of the issuance of Pre-emptive Rights (HMETD) to the public totaling 11,266,666 ordinary shares on behalf of the nominal value of Rp50 per share and exercise price of Rp 1,850 per share so that all the additional capital amounted to Rp. 20,843,332,100
Marketing activities play an important role, both to expand business activities and to maintain market share in the finance industry. The marketing department continues to improve the collaboration with dealers and strategic financing partners to increase financing.
The Company’s marketing focuses on providing services and fostering good relationships to business partners, whether banks, financial institutions and other creditors, insurance, dealers and consumers.
Relationship with the Bank
The Company maintains a sustainable relationship with the bank, although there is currently no cooperation with the bank in terms of funding. Good cooperation with the bank facilitates the Company in doing both transaction with the dealers and consumers.
Relationship with Consumers
In order to maintain business continuity, the Company continuously improves customer service starting from the time of credit application until the end of consumer obligation to The Company.
Credit application is processed easily, quickly and safely without leaving the principle of prudence. The Company also provides several installment payment methods to facilitate the consumer. Consumers can ensure that after credit repayment, BPKB can be obtained immediately. In addition, the Company also offers competitive interest.
Relationship with Insurance Company
The Company requires the insurance of the object being financed to minimize the risk. Therefore, the Company maintains good relations with a credible, national-scale Insurance Company that provides good service to its customers and provides a good commitment to the Company in executing its business strategy