MIRA INFORM REPORT

 

 

Report Date :

12.12.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. SHELL MANUFACTURING INDONESIA

 

 

Registered Office :

Talavera Office park, 22nd Floor – 27th Floor, Jalan T.B. Simatupang Kav. 22-26

Jakarta Selatan, 12430

 

 

Country :

Indonesia

 

 

Date of Incorporation :

25.01.2011

 

 

Reg. No.:

No. AHU-09390.AH.01.01.TH.2011

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Lubricating Oil Blending (Planned)

 

 

No. of Employees :

251 persons     

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Yet to Commenced 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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Indonesia - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, grew an estimated 6.1% and 6.4% in 2010 and 2011, respectively. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a small current account surplus, a fiscal deficit below 2%, 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, and unequal resource distribution among regions. The government in 2012 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of rising oil prices.

 

Source : CIA

 

 

 

Name of Company

 

P.T. SHELL MANUFACTURING INDONESIA

 

 

Address

 

Head Office

Talavera Office park, 22nd Floor – 27th Floor

Jalan T.B. Simatupang Kav. 22-26

Jakarta Selatan, 12430

Indonesia

Phones             - (62-21) 084 1 801010, 084 1 801040, 084 1 802030, 084 1 801050

Fax                   - (62-21) 759 24701-09, 759 24712

Building Area    - 34 storey

Office Space    - 300 sq. meters

Region              - Commercial

Status               - Rent

 

Factory (Planned)

West Java

 

Date of Incorporation :

25 January 2011

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-09390.AH.01.01.TH.2011

Dated 23 February 2011

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 31.280.604.5-016.000

The Capital Investment Coordinating Board

No. 02620/1/PPM/PMA/2010

Dated 29 November 2010

 

Related Companies :

a.         P.T. SHELL INDONESIA (Trader and Import of Fuel Oil)

b.         P.T. TIRA WIRA USAHA (Trading and Import of Shell Lubricant Oils)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         : US$ 1,000,000.-

Issued Capital   : US$ 1,000,000.-

Paid up Capital : US$ 1,000,000.-

 

Shareholders/Owners :

a. SHELL OVERSEAS INVESTMENTS BV.                   - US$ 999,000.-

    Address : 5 Rue Des Iris, 92 Antony Paris

                    France           

b. SHELL GAAS BV.                                                     - US$     1,000.-

    Address : Johan De  Witstraar-1 4902-VG

                    Oosterhou

                    Netherlands

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Lubricating Oil Blending (Planned)

 

Production Capacity :

Lubricating Oils - 112,359,556 liter p.a. (Planned)

 

Total Investment :

a.         Equity Capital   - US$   1.0 million

b.         Loan Capital      - US$ 80.0 million

c.         Total Investment            - US$ 81.0 million

 

Started Operation :

2013 (Planned)

 

Brand Name :

SHELL Lubricating Oils

 

Technical Assistance :

SHELL OVERSEAS INVESTMENTS BV., of Netherlands

 

Number of Employee :

251 persons     

 

Marketing Area :

Local                - 90%

Export              - 10%

 

Main Customer :

Distributors (Lubricating Oils Distributors)

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. AGIP LUBRINDO PRATAMA

b. P.T. CASTROLL INDONESIA

c. P.T. NUSANTARA PUTRAMANDIRI

d. P.T. WIRASWATA GEMILANG INDONESIA

e. Etc.

 

Business Trend :

No Comment

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.         ABN AMRO Bank N.V.

                        Jalan Ir. H. Juanda No. 23-24

                        Jakarta Pusat

                        Indonesia

b.         P.T. Bank RABOBANK INTERNATIONAL INDONESIA

                        Plaza 89

                        Jalan H.R. Rasuna Said Kav. X-7 No. 6

                        Jakarta Selatan

                        Indonesia

 

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. Wee Hiang Keong

Directors           - a. Mr. Hardeep Singh Kirpal Singh

                                      b. Mr. Harun Shahanshah Judin

 

Board of Commissioners :

Commissioner   - Mr. Eugene Tan Chern Fung

 

Signatories :

President Director (Mr. Wee Hiang Keong) or one of the Directors (Mr. Hardeep Singh Kirpal Singh or Mr. Harun Shahanshah Judin) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

High

 

Credit Recommendation :

Credit is not recommended

 

Proposed Credit Limit :

C.O.D.

 

 

OVERALL PERFORMANCE

 

P.T. SHELL MANUFACTURING INDONESIA (P.T. SMI) was incorporated in Jakarta in January 25, 2011 with the authorized capital of US$ 1,000,000 wholly issued and paid up. The founding shareholders of the company are SHELL OVERSEAS INVESTMENTS BV., (99.90%) and SHELL GAS BV., (0.10%) both of are from the Netherlands. Based on our knowledge up to writing the report the notary documents of the company have not undergone any changes. The company notary act was made by Mrs. Mala Mukti, SH., was approved by the Ministry of Law and Human Right in its decision letter No. AHU-09390.AH.01.01.TH.2011 dated February 23, 2011.

 

P.T. SMI operates under Foreign Investment (PMA) facilities to deal with lubricating oils blending. The plant will be located in West Java, standing on 21,000 sq. meters landsite. The plants will be produce of lubricating oil of 112,359,556 liters per annum. The construction of the factory will absorbed an investment of US$ 81.0 million come from owned capital of US$ 1.0 million and the rest from loan.

 

The construction of the project was originally scheduled constructed in April 2011 but the project has still remained unrealized hitherto. Mr. Darwin Silalahi, Director of parent company P.T. SHELL INDONESIA disclosed that the construction of the project has yet been realized up to now. Besides, the company has yet not owned land in West Java. He explained that the construction of the plants will be begun in 2012. About 90% of P.T. SMI's production will be marketed in the country in the ranks of automotive, industrial, marine and others with distribution will be handled by various distributors. The remaining some 10% is will be exported to Vietnam, China and India. We observe that P.T. SMI is a new company having yet to be in operation commercially.

 

We refrain from informing the business prospect of the company for having yet to be in operation up to now. Considering P.T. SMI having yet to be in operation, the financial condition of the company is just as it’s paid up capital of US$ 1.0 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. SMI is backed up by the SHELL OVESERSEAS INVESTMENT BV., of Netherlands which has financially strong behind it.

 

The management of P.T. SMI is led by Mr. Wee Hiang Keong (54) a professional manager of Malaysia with experience in lubricating oil blending. Daily activity he is assisted by Mr. Hardeep Singh Kirpal Singh (43) and Mr. Harun Shahanshah Judin (34) 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. SMI is a new company having yet to be in operation commercially. Considering P.T. SHELL MANUFACTURING INDONESIA 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.54.32

UK Pound

1

Rs.87.36

Euro

1

Rs.70.36

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.