MIRA
INFORM REPORT
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Report Date : |
31st
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
P.T. BINA GUNA KIMIA |
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Registered Office : |
Wisma KODEL, 10th Floor, Jalan H.R. Rasuna Said Kav. B-4 , Jakarta Selatan, 12920, Indonesia |
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Country : |
Indonesia |
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Date of Incorporation : |
19.11.1993 |
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Com. Reg. No.: |
C2-11190.HT.01.04.TH.99 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Pesticide Formulation Industry |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$
1,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name of Company
P.T. BINA GUNA KIMIA
Address
Head Office
Wisma KODEL, 10th Floor
Jalan H.R. Rasuna Said Kav. B-4
Jakarta Selatan, 12920
Indonesia
Phone - (62-21) 5222350 (Hunting)
Fax. - (62-21) 5222355
Building Area - 22 storey
Office Space - 500 sq. meters
Region - Commercial Building
Status - Rent
Factory
Jalan Raya Klepu-Karang Jati
Ungaran, Semarang
Central Java
Indonesia
Phone - (62-21) 6921346 (Hunting)
Fax. - (62-21) 6921356
Land Area - 40,000 sq. meters
Factory Space - 7,800 sq. meters
Region - Industrial Zone
Status - Owned
Date of Incorporation
19 November 1993
Legal Form
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No.
The Ministry of Justice and Human Rights
No. C2-11190.HT.01.04.TH.99
Dated 16 June 1999
Company Status
Foreign Investment (PMA) Company
Permit by the Government
Department
The President of the Republic of Indonesia
No. B-158/Pres/7/1993
Dated 27 July 1993
The Capital Investment
Coordinating Board
- No. 143/I/PMA/1993
Dated 12 August 1993
- No. 1297/III/PMA/1998
Dated 17 September 1998
- No. 54/II/PMA/1999
Dated 23 March 1999
The Department of Finance
NPWP. 1.070.771.9-052
Related Company
The
KODEL Group Members
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital : US$ 2,000,000.-
Issued Capital : US$ 1,750,000.-
Paid up Capital : US$ 1,750,000.-
Shareholders/Owners :
a. P.T. PARAMA BINA TANI of Indonesia - US$ 857,500.-
Address : Jl. H.R. Rasuna Said Kav. B-4 Jakarta
Selatan Indonesia
b. FMC Corporation of the
USA - US$ 892,500.-
Address : Orange Street 1209 Wilmington, New
Castle, USA
BUSINESS ACTIVITIES
Lines
of Business:
Pesticide Formulation Industry
Production Capacity
a. Furadans 3G - 20,000 tons p.a.
b. Marshal 5G - 2,000 tons p.a.
c. Marshal 200 EC - 1,500 tons p.a.
d. Marshal 25 ST - 200 tons p.a.
e. Rugby 10 G - 2,000 tons p.a.
f. Pounce 20 EC - 500 tons p.a.
g. Arrivo 25 ULV - 100 tons p.a.
h. Arrivo 30 EC - 500 tons p.a.
i. Dragnet 30 EC - 200 tons p.a.
j. Cynoff 40 WP - 100 tons p.a.
k. Biflex 240 EC - 100 tons p.a.
l. Talstar 25 EC - 200 tons p.a.
m. Bestox 50 EC - 200 tons p.a.
n. Bayonet 480 EC - 200 tons p.a.
o. Command 480 EC - 200 tons p.a.
Total Investment
a. Equity Capital - US$ 1.8 million
b. Reinvested Profit - US$ 0.3 million
c. Loan Capital - US$ 0.4 million
d. Total Investment - US$ 2.5 million
Started Operation
1994
Brand Name
None
Technical Assistance
FMC Corporation of the USA
Number of Employee
120 persons
Marketing Area
Domestic - 100%
Main Customer
Vegetable plantations company, farmers, shop of vegetable, etc.
Market Situation
Very Competitive
Main Competitors
a. P.T. SYNGENTA INDONESI
b. P.T. PIONEER HIBRIDA INDONESIA
c. P.T. DUPONT AGRICULTURAL PRODUCTS INDONESIA
d. P.T. DOW AGRO SCIENCES INDONESIA
Business Trend
Growing
BANKER, AUDITOR & LITIGATION
Bankers
a. P.T. ANZ PANIN BanK
Jalan Jend. Sudirman (Senayan)
Jakarta Selatan
Indonesia
b. P.T.
Bank MANDIRI Tbk.
Jalan Jend. Gatot Subroto Kav. 36-38
Jakarta Selatan
Indonesia
Auditor
:
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2004 – Rp. 70.0 billion
2005 – Rp. 75.0 billion
2006 – Rp. 80.0 billion
Net Profit (Loss) :
2004 – Rp. 4.9 billion
2005 – Rp. 5.2 billion
2006 – Rp. 5.6 billion
Payment Manner :
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of Management :
President Director - Mr. Shahid Saleem
Directors -
a. Mr. James Robert Collins
b. Mr. Martin James Neil
c. Mr. Boedi Rahardjo
d. Mr. Drs. Teuku Bachrumsjah Hamzah
Board of Commissioners :
President Commissioner - Mr. Soegeng Sarjadi
Commissioners - a.
Mr. Rakesh Singh Sikand
b. Mr. Charles Joseph Thomas
c. Mr. Ir. Komar Achmad Hidayat
d. Mr. Milton Steele
Signatories :
President Director (Mr. Shahid Saleem) or one of
the Directors (Mr. James Robert Collins, Mr. Martin James Neil, Mr. Boedi
Rahardjo or Mr. Drs. Teuku Bachrumsjah Hamzah) which must be approved by
Supervisory Board.
CAPABILITIES
Management Capability :
Good
Business Morality
Good
Credit Risk
Average
Credit Recommendation
Credit should be proceeded with monitor
Proposed Credit Limit
Small
amount – periodical review
Maximum Credit Limit
US$
1,000,000.- on the 90 days of payments
OVERALL PERFOMANCE
P.T. BINA GUNA KIMIA (P.T. BGK) was established in November 1993 with an authorized capital of US$ 500,000.- wholly issued and paid up. The founding shareholders of the company are P.T. PARAMA BINA TANI (a national private company) and F.M.C. Corporation of the USA. Its articles of association has been frequently amended. In April 1999, the authorized capital was increased to US$ 2,000,000.- issued capital to US$ 1,750,000.- wholly paid-up. The deed of amendment was made by Mr. Mala Mukti, SH., a public notary in Ungaran, Central Java, under Company Registration Number C- 11190 HT.01.04.TH. 99, dated June 16, 1999. We note that P.T. BGK’s shareholder, P.T. PARAMA BINA TANI, is a member of the KODEL Group, a medium sized Indonesian business group.
P.T. BGK operates under Foreign Investment
(PMA) facilities issued by BKPM (Investment Coordinating Board) for dealing
with pesticide formulation industry by managing a plant located on a some 3.2 hectare landsite at Jalan Raya
Klepu-Karang Jati, Ungaran, Semarang (Central Java) operating as from 1994 by
producing granular and liquid pesticides including furadan, marshal, rugby,
pounce, arrivo, dragnet, cynoff and others. Details on its production are as
shown on point 8 of this report. The
basic materials used by P.T. BGK are mostly imported through its foreign
partner F.M.C. Corporation and small
parts is obtained from P.T. PETROSIDA GRESIK. Around 70% of its product is
marketed locally and the rest 30% is exported to various countries including
Vietnam, Taiwan, Malaysia and others. P.T. BGK is still classified as a
medium-sized company of its kind in Indonesia and its business operation has
been growing within the last three years.
We find that the demand for pesticides, fungicides, herbicides and insecticides has tended to decline in the last five years due to several factors like the weakening of the community's buying capacity in line with the low Rupiah exchange rate in 2001 resulting in the production of fake pesticides. Low pesticide sales have been not only to reduce buying power, but also to a minimum of planting area expansion. As a result of the prolonged economic crisis only a very small agricultural expansion area has been realized, both of existing areas and in the form of new investments. As a clear indicator of the dwindling planting area expansion has been the sharp fall in new investments in the plantation sector and the poor realization of development projects by licensed plantation companies. The low investment animo in development of the plantation sector is also believed to have been due to the low and not stimulating export prices of plantation commodities lately. We consider P.T. BGK to be in a quite favorable position for having already got hold of a steady clientele in the country and abroad.
Until this time P.T. BGK has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We observed that total sales turnover of the company in 2004 amounted to Rp. 70.0 billion increased to Rp. 75.0 billion in 2005 and to Rp. 80.0 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 5.6 billion and the company has an estimated total networth at Rp. 35.5 billion. It is projected that total sales turnover of the company will increase at least 8% in 2007. We observe that P.T. BGK is supported by financially fairly strong behind it. So far, we have never heard of the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.
The management of P.T. BGK is led by Mr. Shahid Saleem (47) a professional manager from Pakistan with 5 years of experience in pesticides formulation industry. The management of the company is handled by professional managers having wide relation with private businessmen within and outside the country and with the government sectors as well. We observed that management’s reputation in said business is fairly good. So far, we have never heard that the company’s management involved in a dirty business practice 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. PT. BINA GUNA KIMIA is fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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