MIRA INFORM REPORT

 

 

Report Date :

19.12.2011

 

IDENTIFICATION DETAILS

 

Name :

P.T. POLYPRIMA KARYAREKSA

 

 

Registered Office :

Graha Irama Building, 17th Floor Jl. H.R. Rasuna Said X-1 Kav. 1-2 Jakarta 12950

 

 

Country :

Indonesia

 

 

Date of Incorporation :

12.11.1993

 

 

Com. Reg. No.:

No. AHU-AH.01.10-09741

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Purified Terephtalic Acid (PTA) Manufacturing

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Ceased Operations 

Payment Behaviour :

Unknown

Litigation :

--

 

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Name of Company 

 

P.T. POLYPRIMA KARYAREKSA

 

 

Address

 

Head Office

Previous address

Gedung Wisma Indocement, 7th Floor

Jl. Jend. Sudirman Kav. 70-71

Setia Budi, Jakarta Selatan

Indonesia

 

New address

Graha Irama Building, 17th Floor

Jl. H.R. Rasuna Said X-1 Kav. 1-2

Jakarta 12950

Indonesia

Phones             - (62-21) 5261555 (hunting)

Fax.                  - (62-21) 5261501

 

Branch

Jl. Ir. H. Juanda III No. 6

Jakarta Pusat

Indonesia

Phones             - (62-21) 3842031, 3440708

Fax.                  - (62-21) 3846209

 

Factory

Jl. Raya Anyer Km. 121

Kec. Ciwandan, Serang

Banten Province

Indonesia

Phones             - (62-21) 602 300 (hunting)

Fax.                  - (62-21) 602 940

Land Area         - 20.0 hectares

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

12 November 1993

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. AHU-92130.AH.01.02.Tahun 2008

    Dated 01 December 2008

b. No. AHU-AH.01.10-09741

    Dated 31 March 2011

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

a. The Department of Finance

    NPWP No. 01.642,916.9-092.000

 

b. The Investment Coordinating Board

    - No. 150/V/PMA/2001

      Dated 21 December 2001

    - No. 762/III/PMA/2002

      Dated 23 July 2002

    - No. 185/II/PMA/2002

      Dated 3 September 2002

    - No. 1013/III/PMA/2003

      Dated 02 September 2003

    - No. 1153/III/PMA/2004

      Dated 11 November 2004

 

Affiliated/Associated Company :

A member of INDORAMA Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                   - Rp. 3,500,000,000,000.-

Issued Capital                         - Rp. 1,833,743,000,000.-

Paid up Capital                       - Rp. 1,833,743,000,000.-

 

Shareholders/Owners :

a. P.T. INDORAMA SYNTHETICS Tbk.              - 50%

    Address : Desa Kembang Kuning, Ubrug

                    Jatiluhar, Purwakarta 41101

                    West Java

                    Indonesia

 

b. INDORAMA NETHERLANDS BV.                  - 50%

    Address : Markweg 201, 3198NB

                    Europport, Rotterdam

                    The Netherlands

 

 

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Purified Terephtalic Acid (PTA) Manufacturing

 

Production Capacity :

Purified Terephtalic Acid (PTA)  -  450,000 tons p.a.

 

Total Investment :

a. Owned Capital              - Rp. 1,883.7 billion

b. Loan Capital                 - Rp. 1,200.5 billion

c. Total Investment            - Rp. 3,084.2 billion

 

Started Operation :

1997, but its ceased operation since October 2007

 

Brand Name :

POLYPRIMA KARYAREKSA

 

Technical Assistance :

None

 

Number of Employee :

None                                               

 

Marketing Area :

No Comment

 

Main Customers :

No Comment

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Mitsubishi Chemical Indonesia

b. PT. Amoco Mitsui PTA Indonesia

c. PT. Polysindo Eka Perkasa

d. PT. Pertamina (Persero)

e. Etc.

 

Business Trend :

No Comment

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

P.T. Bank MANDIRI Tbk

Gedung Enterprise

Jl. HR Rasuna Said Kav. C-5

Jakarta Selatan

 Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

None

 

Net Profit  :

None

 

Payment Manner :

No Comment

 

Financial Comments :

No Comment

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                - Mr. Amit Lohia

Director                               - Mr. Vishnu S. Baldwa

 

Board of Commissioners :

President Commissioner       - Mr. Sri Prakash Lohia

Commissioner                     - Mrs. Seema Lohia

 

 

Signatories :

President Director (Mr. Amit Lohia) or Director (Mr. Vishnu S. Baldwa) which must be approved by Board of Commissioner (Mr. Sri Prakash Lohia)

 

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

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. POLYPRIMA KARYAREKSA (P.T. PK) was established in November 1993 with an authorized   capital of Rp 165,000,000,000.- entirely issued, of   which Rp 16,500,000,000.- was paid up. The founding shareholders of the company are Mr. Ibrahim Risjad, his son Mr. Amirsyah Risjad, Mr. Sudwikatmono, the late Mr. Gunadharma Hartarto (all indigenous businessmen), Mr. Andry Pribadi AKA (also known as) Liem Liek Mien, Mr. Wilson Pribadi AKA Liem Oen Djoe, Mr. Henry Liem AKA Liem Sien Tjay, Mr. Deddy Kusuma, Mr. Surya Widjaja, Mr. Eddy Sariaatmadja and Mr. Awong Hidjaja (all Indonesian businessmen of Chinese extraction). The company's Article of Association has frequently been amended. 

 

The economic crisis battering the country in 1997 followed by the sharp rupiah depreciation against foreign currencies has brought bad impact to P.T. PK. Total debts of the company to the state banks kept increasing and being uncontrolled. The debts of the company reached US$ 74.3 million on 26 September 2000. Later, it was agreed that the debt conversion of P.T. PK shares to state banks (represented by IBRA) as shares in P.T. PK. Therefore, in December 2000, the authorized capital of the P.T. PK was raised to Rp. 968,000,000,000 of which Rp. 390,322,000,000 was issued and fully paid up. At that time, some 38% shares of P.T. PK was controlled by the government through P.T. Perusahaan Pengelola Aset (ex. the Indonesian Banking Restructuring Agency or IBRA).

 

However, in December 2001, P.T. PPA (ex. IBRA) sold again some 38% of its shares in P.T. PK to a consortium of foreign financial institution represented by FORTUNE CONSULTANTS Ltd., of Mauritius worth US$ 360 million. Then, the authorized capital was increased to Rp. 3,500,000,000,000 of which 1,833,743,000,000 was issued and fully paid up and concurrently into the company entered a private company as new shareholder namely P.T. MULYA SAKTI LESTARI KURNIA. 

 

 

 

As of 31 March 2011, the shareholders of P.T. PK are FORTUNE CONSULTANTS Ltd., (42.00%), P.T. MULYA SAKTI LESTARI KURNIA (28.00%), Mr. Ibrahim Risjad (3.60%), Andry Pribadi (3.60%), Mr. Wilson Pribadi (3.15%), Mr. Deddy Kusuma (3.15%), Mr. Raden Eddy Kusnadi (2.40%), Mr. Surya Widjaja (2.40%), Mr. Awong Hidjaja (2.25%), Mr. Amirsyah Risjad (0.45%), Mr. Indrasari Kresnadjaja (1.80%), Mr. Sudwikatmono (3.60%) and Mr. Henry Liem (3.60%).

 

In the first half of 2011, P.T. Bank Mandiri Tbk., as a creditor of P.T. POLYPRIMA KARYAREKSA (P.T. PK)  conducted loan restructuring of P.T. PK worth US$. 144.5 million, which involved P.T. INDORAMA SYNTHETICS Tbk., parent company of the INDORAMA Group. Mr. Zulkifli Zaini, Director of P.T. Bank MANDIRI said that P.T. PK was a troubled debtor which ceased its operations since October 2007. P.T. PK was a producer of purified terephthalic acid (PTA) with a production capacity of 450 thousands tons per year. This plant required new investors in order to operate its plant back. For that P.T. Bank Mandiri Tbk., offered Indorama Group to take over the assets of P.T. PK. Apparently this offer was welcomed by the Indorama Group, which was the largest producer of polyester yarn in the world, with its annual production capacity of 5 million tons per year. While the raw material for making polyester yarn is the PTA.

 

On December 7, 2011, management  of P.T. Indorama Synthetics Tbk., said that they were completing the acquisition of 50% stake in P.T. PK, and the remaining 50% shares by its affiliated company namely INDORAMA NETHERLANDS BV., based in Netherlands. With the implementation of the take over, it the meant that currently all shares and assets of P.T. PK have already owned by the INDORAMA Group.

 

Miss Linawati (Lina), a staff of INDORAMA Group said that they were currently preparing the delayed re-operation of PT PK’s plant. Also according to plan they would change the company’s name of PT PK to P.T. INDORAMA PETROCHEMICALS.   According to the plan they would soon propose the name change to Department of Law and Human Rights.

 

      P.T. PK has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.  In view of P.T. PK is having yet to be in commercial operation, the financial condition of the company is as the paid up capital of Rp. 1,833,743,000,000 as stated in the articles of association of the company. The financial condition of the company still depends on the financial condition of its shareholders.  So far we have never heard that the company registered with the black list of Bank of Indonesia (Central Bank) or involved in the civil case that settled through the country court.

 

Since December 2011, the company's management is headed by Mr. Amit Lohia (37), an Indian businessman with broad experienced in the above business. He has a bachelor degree in economics and finance from the prestigious Wharton School of Business at the University of Pennsylvania in 1995. He has been a senior executive in the company since 1996 and worked in various roles. In his daily activities, he is assisted by Mr. Vishnu Swarop Baldwa (42) as director. However the prime-mover is Mr. Sri Prakash Lohia (59), an Indian businessman with broad experienced in the above business. He has a Bachelor of Commerce degree from the University of Delhi in 1971.  He has 34 years of experience in the textile industry and sits on the boards of various companies of the INDORAMA Group.  The company has had wide relation in the realm of the private businessmen within and outside the country.

 

 

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.

 

In view of P.T. POLYPRIMA KARYAREKSA is having yet to be in commercial operation, we recommend to treat prudently in business transaction and in extending a new loan to the company.

 

Attachment:

 

 

List of the INDORAMA Group Members

 

 

1.       ASHOK TEXTILE Industries, Ltd., Nepal (Textile Industry)

2.       AUTUM INVESTMENT Ltd., Hong Kong (Holding Company)

3.       BANGADUA PETROLEUM, P.T. (Oil & Natural Gas Exploration)

4.       BROOKGRANGE INTERNATIONAL FINANCE LTD., The U.K. (Financing Service)

5.       INDOMULIA MITRAJAYA, P.T. (Shrimp Culture)

6.       INDORAMA CHEMICALS (Thailand) Ltd., Thailand (Chemicals Manufacturing)

7.       INDORAMA NETHERLANDS, BV. (Investment Holding)

8.       INDORAMA PROJECTS AND SERVICES Ltd., India (Consulting and Investment Holding)

9.       INDORAMA SYNTHETICS (India) Ltd., India (Chemicals Manufacturing)

10.   INDORAMA SYNTHETICS Tbk, P.T. (Spinning Mills)

  1. INDOSPECT ASIA PETROLEUM BANGADUA, P.T. (Oil and Gas Exploration and

      Production)

12.   IRAMA DINAMIKA LATEX, P.T. (Latex Goods Manufacturing)

13.   IRAMA UNGGUL, P.T. (Trading and Investment Holding)

14.   ISPAT INDO, P.T. (Steel Goods Making)

15.   ISPAT STEEL, P.T. (Sponge Steel Manufacturing)

16.   JAKARTA MAJU PUSAKA, P.T. (Trading and Suppliers)

17.   LOHIA INDUSTRIES PVT.,LTD., India (Investment Holding)

18.   MITRABANGUN GRIYA, P.T. (Office Block Rental Management)

19.   POLYPRIMA KARYAREKSA, P.T. (Petrochemical Industry)

20.   RAMATEX Ltd., (Hong Kong), (Investment Holding)

21.   THONBURI LACE Co. ,Ltd., Thailand (Investment Holding)

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.81

UK Pound

1

Rs.82.00

Euro

1

Rs.68.81

 

 

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.