MIRA INFORM REPORT

 

 

Report Date :

14.12.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. MEGHMANI ORGANICS INDONESIA

 

 

Registered Office :

Ruko Metro Kencana VII Blok Q No. 40, Pertokoan Plaza Metro Sunter Kel. Sunter Agung, Kec. Tanjung Priok Jakarta Utara 14350

 

 

Country :

Indonesia

 

 

Financial as on:

31.03.2010

 

 

Date of Incorporation :

27.02.2008

 

 

Reg. No.:

No. AHU-AH.01.10-03659

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading, Import and Distribution of Pesticides and Other Pigment Products

 

 

No. of Employees :

12 persons

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No Complaints

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. MEGHMANI ORGANICS INDONESIA

 

 

Address

 

Head Office

Ruko Metro Kencana VII Blok Q No. 40,

Pertokoan Plaza Metro Sunter

Kel. Sunter Agung, Kec. Tanjung Priok

Jakarta Utara 14350

Indonesia

Phones             - (62-21) 651 8583

Fax                   - (62-21) 651 8585

Building Area    - 3 storey

Office Space    - 120 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

27 February 2008

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

            a.         No. AHU-21656.AH.01.01.Tahun 2008

                        Dated 29 April 2008

            b.         No. AHU-AH.01.10-03659

                        Dated 15 April 2009

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.747.710.8-048.000

 

Holding Company :

MEGHMANI ORGANICS LIMITED of India (Investment Holding)

 

Related/Associated Company :

A member of the MEGHMANI ORGANICS Group of India

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         - Rp. 2,284,250,000.-

Issued Capital   - Rp. 2,284,250,000.-

Paid up Capital - Rp. 2,284,250,000

 

Shareholders/Owners :

            a. MEGHMANI ORGANICS LIMITED      - Rp. 2,261,407,500.- (99%)

     Address : Perumahan Citra 5 Blok D8/23

                     Kel. Kamal, Kec. Kalideres

                     West Jakarta

                     Indonesia

            b. Mr. Patel Natwarlal Meghjibhai                     - Rp.      22,842,500.- (  1%)

     Address : 6-8 Ashokvatika N01

                     OPP Ektafarm Ambibopal Road

                     India

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Import and Distribution of Pesticides and Other Pigment Products

 

Production Capacity :

None

 

Total Investment :

Owned Capital   - Rp. 2,284.2 million

 

Started Operation :

April 2009

 

Brand Name :

Meghmani Organics Indonesia

 

Technical Assistance :

None

 

Number of Employee :

12 persons

 

Marketing Area :

Local    - 100%

 

Main Customers:

Pharmaceutical Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Basf Indonesia

b. PT. Maskitani

c. PT. Agricon

d. PT. Ria Indo Agri

e. PT. Indagro

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

            a.         P.T. Bank CENTRAL ASIA Tbk.

                        Sunter Branch

                        Jl. Danau Sunter Utara Blok G7 III No.1-2

                        Jakarta Utara

                        Indonesia

            b.         The Hong Kong and Shanghai Bank Corp. (HSBC)

                        Komplek Puri Mutiara A 76 – A 77

                        Jl. Griya Utama, Sunter

                        Jakarta Utara

                        Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Total Income/Revenues:

2010 – Rp. 4,563 million (01 April 2009 to 31 March 2010)

2011 – Rp. 6,160 million (01 April 2010 to 31 March 2011) - estimated

 

Net Income (Profit):

2010 – Rp. 354 million (01 April 2009 to 31 March 2010)

2011 – Rp. 480 million (01 April 2010 to 31 March 2011) - estimated

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

KEY EXECUTIVES

 

Board of Management :

President Director                    - Mr. Ramanath Mangapuram

Director            - Mr. Ashish Natwarlal Soparkar

 

Board of Commissioners :

Commissioner   - Mr. Patel Jayantilal Meghjibhai

 

Signatories :

President Director (Mr. Ramanath Mangapuram) or Director (Mr. Ashish Natwarlal Soparkar) which must be approved by Board of Commissioner (Mr. Patel Jayantilal Meghjibhai)

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. MEGHMANI ORGANICS INDONESIA (P.T. MOI) was incorporated in Jakarta on February 27, 2008 with the authorized capital of Rp. 2,284,250,000 (US$. 250,000) entirely was issued and fully paid up.  The founding shareholders of the company are Mr. Ramanath Mangapuram (52%) and Mr. Gyan Prakash (48%), both are Indian businessmen.  The Articles of Association has been approved by the Minister of Law and Human Rights through Decision Letter No. AHU-21656.AH.01.01.Tahun 2008 dated April 29, 2008.   The Company’s article of association has been amended for several times, most recently by notarial deed of Arsin Effendy, SH., No. 12 dated February 13, 2009 Mr. Ramanath Mangapuram and Mr. Gyan Prakash pulled out and the whole shares are sold to Meghmani Organics Limited of India (99%) and Mr. Patel Natwarlal Meghjibhai of India (1%).   The notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-03659 dated April 15, 2009.

 

Pursuant to the company’s notary deed, P.T. MOI engaged to operate in main distributor, import and trading of insecticide, pesticide and fertilizer.  The Company’s registered office located at Ruko Metro Kencana VII Blok Q No. 40, Sunter Agung, North Jakarta and the company can open branch offices or representative offices at home and abroad.  

 

P.T. MOI has been operating since April 2009 to deal with trading, import and distribution of agrochemical products such as pesticide and other pigment products.   Mr. Natu Patel, Managing Director of Meghmani Orgianics Limited (MOL) explained that P.T. MOI will function as MOL’s own distribution network for branded products outside India.  He added that the Indonesian market for pesticides is one of the fastest growing in the world, currently valued at over $360 million.  Through its subsidiary, MOL Expects to gain around 10 percent market share in the second full year of operations in the category of products registered already in Indonesia and incremental growth thereafter.  In the first phase, retail operations have been set up in the islands of Sumatra and Java, with appointment of some 15 distributors, while in the second phase, the island of Sulawesi will be added with 10 more distributors.  Coverage of smaller islands will be planned in a phased manner thereafter, Mr. Patel said. Once the targets are reached in Indonesia, MOL would replicate this model in other neighboring countries.  Established in Gujarat in 1986, Meghmani manufactures pigments and agrochemicals, specializing in green and blue pigment products that have multiple applications in a range of industries.  We observed that P.T. MOI is still relatively new company in trading, import and distribution of agrochemical products.

 

We have noticed that the demand for agrochemical products had increased some 10% to 11% per annum in the last five years in line with the growth of agricultural sector, plantation sector and other estate crops products in the country. Pursuant to Central Bureau of Statistics (BPS), the production of large estate crops such as; dry rubber, palm oil, palm kernel, cocoa, coffee, tea cane sugar and tobacco have been fluctuating in the last five years.  The estate crops activities in Indonesia is seen from the growth production of estate crops as below.

 

(in 000 tons)

Year

Dry Rubber

Palm Oil

Palm Kernel

Cocoa

Coffee

Tea

Cane Sugar

Tobacco

2003

396.1

6,923.5

1,529.2

56.6

29.4

126.2

1,991.6

5.2

2004

403.8

8,479.3

1,862.0

54.9

29.2

125.5

2,051.6

2.7

2005

432.2

10,119.0

2,155.9

55.1

24.8

128.2

2,241.7

4.0

2006

554.6

10,961.8

2,363.1

67.2

28.9

115.4

2,307.0

4.2

2007

578.5

11,438.0

2,593.2

68.6

24.1

116.5

2,623.8

3.1

2008

594.6

12,477.8

2,829.2

62.9

28.1

112.8

2,668.4

2.6

2009

522.3

13,872.3

3,145.5

67.6

28.7

107.3

2,333.9

4.1

2010

585.4

14,290.1

3,240.1

70.9

28.7

108.9

2,278.1

4.0

2011

531.9

16,908.7

3,994.6

44.8

23.7

137.2

1,348.3

2.9

  2012*

160.8

4,390.1

1,148.5

12.2

0.4

20.0

8.5

0.9

Source: Central Bureau of Statistics (BPS)   *) January to March 2012

 

The financial condition of the company is appraised to be less strong and its financial condition at present is as the paid up capital of Rp. 2,284,250,000  (US$ 250,000) 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.   According to the Company’s financial highlight that total income/sales of the company as of April 2009 to March 2010 amounted to Rp.4,563 million with a net profit of Rp. 354 million. Up to present, we have yet to gain the statement of income of P.T. MOI in fiscal 2010/2011.  However, we estimated that net income of the company as of April 2010 to March 2010 amounted to Rp. 6,160 million with a net profit of Rp. 480 million.  The Profit & Loss Account for the year ended on 31 March 2010 are below:

 

Profit & Loss Account for the year ended on 31.03.2010

IDR

INR

Particulars

01.04.09 to

31.03.2010

01.04.09 to

31.03.2010

Total Income

4,562,972,185

21,795,797

Cost of Goods Sold

3,038,291,988

14,512,908

(Increase) / Decrease in Stock

 

 

Stock Reserve

 

 

Total

3,038,291,988

14,512,908

Gross Profit

1,524,680,197

7,282,889

Administration Expenses

634,701,059

3,031,755

Selling & distribution Expenses

583,273,439

2,786,103

Financial Expenses

118,070,286

563,982

Depreciation

233,481,870

404,893

Other Income

-398,836,984

-1,905,111

Total Expenses

1,170,689,670

4,881,622

Net Profit

353,990,526

2,401,267

 

 

 

Balance Sheet as on 31.03.2010

 

 

Share Capital

2,284,250,000

12,330,000

- Issued & Subscribed  Capital

2,284,250,000

12,330,000

- Add / Less Current Year

353,990,526

2,401,267

- Loan (hype of Vehicles)

480,431,896.94

2,378,137.89

- Meghmani Organics Ltd., India

2,087,426,150

10,282,549

Total Liabilities

5,206,098,573

25,770,188

Fixed Assets

 

 

- Gross Block

4,397,095,679

21,765,624

- Less: Accumulated Depreciation

373,079,669

1,846,744

- Net Block

4,024,016,010

19,918,879

Current Assets

 

 

- Petty Cash

52,444,900

259,602

- BCA Rp.

132,883,412

657,773

- HSBC 050-106806-115

381,306,428

1,887,467

- Inventories

1,867,328,803

9,243,278

- Sundry Debtors

1,989,002,795

9,845,564

- Building Deposit

15,000,000

74,250

- Bank Guarantee

67,158,682

332,435

- Prepaid Expenses

11,500,000

56,925

- Employee Recoverable Exp.

7,000,000

34,650

- Other current Assets – adv, rent

164,537,037

814,458

- Tax Art. 22 import

30,531,000

151,128

Total Current Assets

4,718,693,056

23,357,531

Current Liabilities

 

 

- Creditors

2,843,330,032

14,074,484

- VAT Collected

217,585,004

1,077,046

- PPh 21

54,595,455

270,248

- PPh 23

100,000

495

- Ramanath M. Liabilities

345,800,000

1,711,710

- Others Liabilities

75,200,000

372,240

- Total Current Liabilities

3,536,610,490

17,506,222

- Net Current Assets

1,182,082,566

5,851,309

Total Assets

5,206,098,576

25,770,188

Source: PT. Meghmani Organics Indonesia

 

The management of P.T. MOI is led by Mr. Ramanath Mangapuram (45) a professional manager from India with more than 10 years experience in trading, import and distribution of agrochemical products.  In daily activities he is assisted by Mr. Ashish Natwarlal Soparkar (60) as director. Beside, they are also assisted by a number of expert staffs in the above business. The Company’s management has wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

Since this company (PT. MOI) just about two years in operation commercially, so we recommend caution when going to provide fresh loans to them. Or it should obtain sufficient guarantees of all shareholders.



 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.23

UK Pound

1

Rs.87.53

Euro

1

Rs.70.94

 

 

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.