MIRA
INFORM REPORT
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Report Date : |
03.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
AGRIM INDUSTRIES |
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Registered Office : |
Jalan Setiabudi, Taman Setiabudi
Indah Block I No. 70, Medan 20132, North Sumatera |
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Country : |
Indonesia |
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Date of Incorporation : |
2002 |
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Legal Form : |
Sole Proprietary Company |
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Line of Business : |
Trading and Distribution of Agricultural Products |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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. |
Small |
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Maximum Credit Limit : |
US$ 19,700 |
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Status : |
Small Concern |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Correct Name of Company
AGRIM INDUSTRIES
A d d r e s s
Head Office
Jalan Setiabudi
Taman Setiabudi
Indah Block I No. 70
Medan 20132
North Sumatera
Indonesia
Phone - (62-61) 821 7100
Fax - (62-61) 821 7100
Mobil Phone - 0812-6316716
(Mrs. Poonam Sethi)
Building Area - 200 sq. meters
Office Space - 130 sq. meters
Region - Housing
Complex
Status - Rent
Date of Incorporation
2002
Legal Form
Sole Proprietary
Company
Company Reg. No.
Not Required
Company Status
Private National
Company
Permit by the Government
Department
Not Available
Related Company
Not Available
CAPITAL AND OWNERSHIP
Capital
Structure :
Authorized
Capital : Rp.
150 million
Shareholders/Owners
:
Mrs. Poonam Sethi -
100%
BUSINESS ACTIVITIES
Lines of
Business:
Trading and
Distribution of Agricultural Products
Production Capacity
None
Total Investment
None
Started Operation
2002
Brand Name
None
Technical Assistance
None
Number of Employee
2 persons
Marketing Area
Export - 100%
Main Customer
Buyers in India
Market Situation
Very Competitive
Main Competitors
a. P.T. ASIA
AGROMAS ABADI
b. P.T. ALAM
INDORAMA
c. C.V. BUMI DJAJA
d. C.V. JAYA
BERSAMA
e. Etc.,
Business Trend
Growing slowly
BANKER, AUDITOR & LITIGATION
B a n k e
r s :
P.T. Bank NEGARA INDONESIA
Tbk
Jalan Imam Bonjol
No. 7
Medan, North
Sumatera
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation
record in our database
FINANCIAL FIGURE
Annual Sales
(estimated) :
2005 – Rp. 1.0
billion
2006 – Rp. 1.2
billion
2007 – Rp. 1.5
billion
Net Profit
(Loss) :
2005 – Rp. 100
million
2006 – Rp. 110
million
2007 – Rp. 120
million
Payment Manner
:
Average
Financial Comments :
Weak
KEY EXECUTIVES
Board of
Management :
Director
- Mrs. Poonam
Sethi
Board of
Commissioner :
None
Signatories :
Director (Mrs. Poonam Sethi) is only the
authorized person to sign the loan on behalf of the company.
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
US$ 19,700 on 90 days D/A
OVERALL PERFOMANCE
AGRIM INDUSTRIES (its not AGRIM INDUSTRIES
LTD.) was established in 2002 in Medan, North Sumatra, with the status of Sole
proprietary Company. Founders
and owners of the company is Mrs. Poonam Sethi, an Indonesian businesswoman of
Indian descent. Being as a sole proprietary company, the amount of its
authorized capital was not mentioned at the time of its establishment. We
estimate, AGRIM INDUSTRIES has own capital of about Rp. 150 million and it will
be rising in line with the progress of its business operation. Mrs. Poonam
Sethi, added that the complete name is AGRIM INDUSTRIES not AGRIM INDUSTRIES
LTD.
Based information from other sources and after we contacted to the
address showed the address is housing complex (house) registered under the name
of Mrs. Poonam Sethi. Someone of the home explained there was no business
activity in that house. We also try to obtained more information regarding the
office and warehouse in Medan, but Mrs. Poonam Sethi told the office addressed
in Taman Setiabudi Indah Block I No. 70. AGRIM INDUSTRIES had been operating
since 2002’s in trading and exporter agricultural products. The company
exporter of and supply various agricultural products such as betel nut or areca
nut, coconut, dammar batu, cassia vera, cloves, mace, long pepper, cubeb, black
pepper, white pepper, cashew nuts, spices, dry fruits, cure coconut oil, RBD
oil, corn, yellow corn, maize, coconut fatty acid and palm kernel. The
agricultural product bought from farmer in North Sumatra and Nangroe Aceh
Darusalam. Areca nut or betel nut is aromatic and as astringent and is said to
intoxicate when first taken. In India the areca nuts has long been used as a
taenifuge for tapeworm. Besides, the product is also used for medicine and
cosmetic. Then, the whole products are exported to India and Chitagong,
Bangladesh. Mrs. Poonam Sethi, the director of the company disclosed that it
has exported some 100 tons per month of betel nut and other commodities to
India and Bangladesh. We observed that AGRIM INDUSTRIES is classified a small
size of its kind in the country of
which the operation has been growing 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. We consider AGRIM
INDUSTRIES to be in a quite favorable position for having already got hold of a
steady clientele in the country and abroad.
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
pharmaceutical and cosmetic industries international market. According to
Directorate General of Estates that Indonesian export volume of areca nut has
kept on rising in the last five years. 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. We consider C.V. BJ to be in a quite favorable
position for having already got hold of a steady clientele in abroad.
The Export of Areca Nut, 2002 – 2006*
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Year |
Areca Nut (Thousand Tons) |
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2002 2003 2004 2005 2006* |
42,3 46,8 44,0 50,2 51,9 |
*) Projected
Export Volume of Agricultural Products, 2002-2007*
(Thousand Tons)
|
Products |
2002 |
2003 |
2004 |
2005 |
2006 |
2007* |
|
Tea Rubber Coffee Spices Cocoa Bean Tobacco |
95.5 9,0 322,5 128,8 367,5 30,8 |
84,7 13,4 320,7 120,6 266,3 27,6 |
55,9 12,6 338,8 114,9 277,1 27,8 |
45,7 4,8 442,8 107,3 368,7 31,5 |
42,6 9,2 411,5 114,1 494,1 29,4 |
31,9 6,1 168,8 62,5 259,3 16,4 |
Source : Directorate General of Estates
*) Projected
Until this time AI has not been registered with Indonesian Stock Exchange,
so that they shall not obliged to announce their financial statement. Mrs.
Poonam Sethi, informed that total sales turnover of the company in 2005
amounted to Rp. 1.0 billion increased to Rp. 1.2 billion in 2006 and to Rp. 1.5
billion in 2007. The operation in 2007 yielded an estimated net profit at least
Rp. 100 million and the company has an estimated total networth at least Rp.
220 million. It is projected that total sales turnover of the company will
increase at least 5% in 2008. We observe that AI is backed up by financially
fairly strong business family behind it. So far, we did not hear 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 AGRIM INDUSTRIES is led by Mrs. Poonam Sethi (42), a
businesswoman with 6 years of experience in trading and exporter of
agricultural products. Daily operation she assisted by his husband Mr. Anom
Sethi. The management of the company is handled by staff having fairly wide
relation with private businessmen within and outside the country and with the
government sectors as well. So far, we did not hear 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.
AGRIM INDUSTRIES 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. |
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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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%)