MIRA INFORM REPORT

 

 

Report Date :

28.09.2012

 

 

IDENTIFICATION DETAILS

 

Name :

P.T. EXCEL MEG INDO

 

 

Registered Office :

 

Jalan Angkasa Kav. B 6 Block D.2 Kota Baru, Bandar Kemayoran Jakarta Pusat

 

 

 

 

Country :

Indonesia

 

 

 

 

Date of Incorporation :

26.12.2006

 

 

 

 

Com. Reg. No.:

No. AHU-AH.01.10-17921

 

 

 

 

Legal Form :

Limited Liability Company

 

 

 

 

Line of Business :

Trading and Distribution of Agrochemical Products

 

 

 

 

No. of Employees :

22 persons

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

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. EXCEL MEG INDO

 

 

Address

 

Head Office

Jalan Angkasa Kav. B 6 Block D.2

Kota Baru, Bandar Kemayoran

Jakarta Pusat

Indonesia

Phones             - (62-21) 2664-6027, 2664-6028

Fax                   - (62-21) 2664-6029, 2664-6030

Hand Phone      - 0811-1889663 (Mr. Murugadass Natarajan)

E-mail               - murughaa@yahoo.com

Website            - http://www.excelmegindo.com

Building Area     - 2 storey

Office Space      - 130 sq. meters

Region              - Commercial

Status               - Rent

 

Branches

a.   Jalan Ganesha Raya No. 304

      Kelurahan Pandurungan Kidul, Kecamatan Pandurungan

      Semarang

      Central Java

      Indonesia

      Phone                     - (62-24) 6712 830

      Fax                         - (62-24) 6712 830

      Building Area           - 2 storey

      Office Space            - 100 sq. meters

      Region                    - Commercial

      Status                     - Rent

b.   Perumahan Pondok Jati Block AF No. 14

      Surabaya

      East Java

      Indonesia

      Phone                     - (62-31) 8963 170

      Fax                         - (62-31) 8963 170

      Building Area           - 2 storey

      Office Space            - 100 sq. meters

      Region                    - Commercial

      Status                     - Rent

 

 

 

Registration data

 

Date of Incorporation :

26 December 2006

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. AHU-11847.AH.01.02.TH.2008

  Dated 11 March 2008

- No. AHU-AH.01.10-7375

  Dated 31 March 2008

- No. AHU-AH.01.10-17921

  Dated 13 June 2011

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.414.763.9.056.000

The Capital Investment Coordinating Board

No. 1399/I/PMA/2006

Dated 26 December 2006

 

Related Company :

P.T. WAHGO INTERNASIONAL (Trading, Distribution and Supplies of Printing Inks and Telecommunication Equipment and Services and Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 500,000.-

Issued Capital                                  : US$ 500,000.-

Paid up Capital                                : US$ 500,000.-

 

Shareholders/Owners :

a. Mr. Deivasigamina Gautham Sigamani               - US$ 245,000.-

    Address : No. 1 Sooriyagandhi Illam

                    Greenways Road, Chennai

                    India

b. Mr. Murugadass Natarajan                                  - US$ 130,000.-

    Address : Jl. Angkasa Kav. B 6 Block D. 2

                    Kota Baru, Bandar Kemayoran

                    Jakarta Pusat, Indonesia

c. P.T. WAHGO INTERNASIONAL                           - US$ 125,000.-

    Address : Jl. Veteran 1 No. 2-5

                    Jakarta Pusat

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading and Distribution of Agrochemical Products

 

Production Capacity :

None

 

Total Investment :

a. Equity Capital                              - US$ 0.5 million

b. Loan Capital                                - US$ 0.2 million

c. Total Investment                           - US$ 0.7 million

 

Started Operation :

2007

 

Brand Name :

Excel Indo Meg

 

Technical Assistance :

None

 

Number of Employee :

22 persons

 

Marketing Area :

Local    - 100%

 

Main Customer :

Distributors and Agribusiness

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ARYSTA  TIRTA AGRO

b. P.T. DUPONT AGRICULTURAL PRODUCTS INDONESIA

c. P.T. FADJARPURNAMA PRATAMA INTI

d. P.T. PACIFIC CHEMICAL INDONESIA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

Jalan Angkasa Kav. B 7

Jakarta Pusat

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 10.3 billion

2010 – Rp. 11.2 billion

2011 – Rp. 12.5 billion

2012 – Rp.   6.7 billion (January – June)

 

Net Profit (estimated) :

2009 – Rp. 515 million

2010 – Rp. 560 million

2011 – Rp. 625 million

2012 – Rp. 368 million (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Murugadass Natarajan

General Manager                             - Mr. Kamatchi Raghu

 

Board of Commissioners :

Commissioner                                 - Mr. Deivasigamina Gautham Sigamani

 

Signatories :

Director (Mr. Murugadass Natarajan) which must be approved by Board of Commissioner

 

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

 

 

OVERALL PERFORMANCE

 

Based on investigation result the correct name of report is P.T. EXCEL MEG INDO not PET EXCEL MEG INDO as stated in your order ref. No. 195234 dated 25 September 2012.

 

P.T. EXCEL MEG INDO (P.T. EMI) was established in Jakarta in December 2006 with the authorized capital of US$ 500,000 entirely issued and paid up. The founding shareholders of the company are Mr. Deivasigamina Gautham Sigamani and Mr. Natarajan Murugadas both are businessmen of India. The company notary deed has been changed and in February 2008 the Mr. Natarajan Murugadas pulled out and replaced by Mr. Sarveswaran Karthikeyan of India and P.T. WAHGO INTERNASIONAL of Indonesia as new shareholders. The deed of amendment was made by Mr. Yudha Setyagraha Tedianto, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-7375, dated March 11, 2008. The latest based on notary deed of Mr. Yudha Setyagraha Tedianto, SH., No. 16 dated 24 May 2011 Mr. Sarveswaran Karthikeyan withdrew and the whole shares took over by Mr. Murugadass Natarajan as new shareholder. With this time the composition of its shareholders has been changed to become Mr. Deivasigamina Gautham Sigamani (49%), Mr. Murugadass Natarajan (26%) and P.T. WAHGO INTERNASIONAL (25%). The latest revision of notary deed was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH01.10-17921 dated June 13, 2011.

 

We observe the local partner P.T. WAHGO INTERNASIONAL is a private national company dealing with trading and distribution of printing ink, telecommunication equipment and services and majority business stakes is controlled by Mr. Suresh Gobindram Vaswani and Mr. Natarajan Murugadas.

 

P.T. EMI has been in operating since January 2007 as a distributor, importer of agrochemicals, including pesticides, insecticides, and fungicides. P.T. EMI is an Indian company which is being promoted by an Indian technocrat and supported by experienced agricultural expertise who have the knowledge of both Indian and Indonesian agricultural system and practice.

 

The company holds the agency for pesticides and agrochemicals which imported from India such as Insecticides likes Raja Crin, Megadis, Jayam, Joker, Megda, Agrosiper, Megafos and Zetwel brands; Fungicides likes Kontaf and Megathane brands; Herbicides likes Clystar and Agni brands.

 

The above merchandise products are largely marketed through distributors like P.T. TIRTAMAS MITRA NIAGA SENTOSA, C.V. ANUGERAH and through dealers/pesticides and agrochemical retailers stores in the country’s big cities, to farmers in West Java and also the state plantation companies such as P.T. PERKEBUNAN NUSANTARA IX (Solo, Central Java), P.T. PERKEBUNAN NUSANTARA X, XI and XII (all three in East Java) and to other plantation companies. To support of its activities, P.T. EMI has open a branch office in Semarang, Central Java and Surabaya, East Java.

 

The global economic crisis and the extreme depreciation to the US$ and other hard foreign currencies have adversely affected P.T. EMI’s business because all its merchandise products are imported payable in US$/foreign exchange. The crisis has caused the sales prices of the company’s traded products to rise very highly. We observe the operation of P.T. EMI has been growing in the last three years.

 

Generally, demand for agrochemical products, pesticides, fungicides, herbicides, insecticides has tended to decline in the last five years being caused by several causes including the sluggish public purchasing power in line with high Rupiah depreciation against US$ in 2001 causing pesticides counterfeiting. The declining pesticides sales are also caused by the lack of expansion of plantation areas. There are few expansion of plantation areas having been realized from expansion of agricultural companies or new investment. Starting in the second semester 2008, many markets in various parts of the world experienced adverse economic condition. This condition was triggered by, amongst others, the housing and mortgage loans crisis in the United States of America (US) that spread to securities, structures products and commodity markets. The volatility in the US markets coupled with the sharp appreciation in the US Dollars and a series of corporate bankruptcies and takeovers enabled the crisis to spread to other parts of the world. The impact of the global economic crisis has also been felt in Indonesia as the Indonesian Rupiah weakened, demand decrease, commodity prices decreased, securities market declines, interest rate increased, followed by decreases, tightened liquidity conditions, and increased credit risks. In spite of the adverse economic conditions, management believes that the Company will be able to continue operating as going concern for the foreseeable future.

 

Until this time P.T. EMI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. EMI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2009 amounted to Rp. 10.3 billion rose to Rp. 11.2 billion in 2010 increased to Rp. 12.5 billion in 2011. As from January to June 2012 the sales turnover has reached at least Rp. 6.7 billion with a net profit of Rp. 368 million and projected to go on rising by at least 4% in 2013. The company has an estimated total net worth of at least Rp. 7.0 billion. We observe that P.T. EMI is supported by foreign partner with has financially strong and sound behind it. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.  

 

P.T. EMI's management is headed by Mr. Murugadass Natarajan (42), a businessman and professional manager with has 11 year experience in trading and distribution of agrochemicals products. They have wide relations in private business circles within and outside the country. So far, we did not hear that the management of the company having been filed to Jakarta 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. P.T. EXCEL MEG INDO is sufficiently fairly good for business transaction.

 

 

                                            


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.25

UK Pound

1

Rs.86.23

Euro

1

Rs.68.64

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.