MIRA INFORM REPORT

 

 

Report Date :

14.12.2013

 

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

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

27.02.2008

 

 

Com. Reg. No.:

No. AHU-AH.01.10-21800

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

distributor, importer and trader of insecticide, pesticide and fertilizer. 

 

 

No. of Employees :

12

 

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 :

Moderate

 

 

Payment Behaviour :

Slow

 

 

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 – September 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 more than 6% annually in 2010-12. 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 fiscal deficit below 3%, 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 2013 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 high oil prices.

 

Source : CIA

 

 

Name of Company

 

P.T. MEGHMANI ORGANICS INDONESIA

 

 

company 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

  c.  No. AHU-AH.01.10-21800

      Dated 03 June 2013

 

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 :

Declining

 

 

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 :

MNC Consulting

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

For The Years Ended March 31, 2013 and 2012

 

Total Sales/Revenues :

2012 – Rp. 8,537.0 million

2013 – Rp. 1,246.3 million

 

Profit (Loss) After Tax :

2010 – (Rp.    641.9 million)

2011 – (Rp. 3,806.6 million)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Patel Ankit Natwarlal

Director                                           - Mr. Ashish Natwarlal Soparkar

 

Board of Commissioners :

Commissioner                                 - Mr. Patel Jayantilal Meghjibhai

 

Signatories :

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

 

 

CAPABILITIES

 

Management Capability :

Fairly

 

Business Morality :

Fairly

 

 

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.  In February 2009, based on notarial Deed of Notary 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.

 

Most recently by notarial Deed of Notary Dedi Hartono, SH., No. 1028 dated May 23, 2013 the company board of director was changed, Mr. Ramanath Manganpuram is replaced by Mr. Patel Ankit Natwarlal as President director.  The amendment to notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-21800 dated June 03, 2013.

 

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 of which the operation had been declining in two years.

 

We have noticed that the demand for agrochemical products had increased some 8% to 10% 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

591.4

16,499.1

3,894.2

58.7

26.7

   92.1

2,313.1

3.2

Source: Central Bureau of Statistics (BPS)

 

We observed that the financial condition of the company still depends on the financial condition of its shareholders.   According to the Company’s financial report for the years ended on March 31, 2013 and 2012 that the total sales/Revenues of the company in 2012 amounted to Rp 8,537.0 million with a net loss of Rp 641.9 million, declined to Rp 1,246.3 million with a net loss of Rp 3,806.6 million in 2013.  The Financial Statement of the Company for the years ended on March 31, 2013 and 2012 are below:

 

(Expressed in IDR Currency)

DESCRIPTION

31 March 2013

31 March 2012

ASSETS

 

 

Current Assets

 

 

- Cash & Equivalent Cash

1,200,072

27,768,580

- Bank

231,330,820

143,025,763

- Accounts Receivable

1,643,456,717

1,651,291,131

- Inventory

2,000,858,845

1,651,291,131

- Deposits

33,094,000

33,094,000

- Prepaid Expense

141,690,401

275,146,874

- Prepaid Tax

41,136,732

--

Total Current Assets

4,092,142,769

8,764,764,155

 

 

 

Non-current Assets

 

 

- Net off Accumulated Depreciation

1,004,142,769

1,247,977,967

 

 

 

TOTAL ASSETS  =  TOTAL LIABILITIES AND

                                  STOCKHOLDERS’ EQUITY

5,096,910,356

10,012,742,122

 

 

 

LIABILITIES AND EQUITY

 

 

Current Liabilities

 

 

- Accounts Payable

2,804,499,770

3,966,067,256

- Tax Payable

6,824,713

105,009,532

- Ramanath M. Liabilities

--

--

- Others Liabilities

35,307,000

102,441,918

Total Current Liabilities

2,846,631,483

4,173,518,706

 

 

 

Long-term Liabilities

 

 

- Leasing Payable

66,735,095

241,920,456

- Liabilities – MOL India

6,015,885,864

5,622,997,676

Total Long-term Liabilities

8,929,252,442

10,038,436,838

 

 

 

Stockholders’ Equity

 

 

- Meghmani Organics Limited

2,261,407,500

2,261,407,500

- Patel Natwartal

22,842,500

22,842,500

- Retained Earning

(2,309,944,716)

(1,668,027,672)

- Current Earning of This Year

(3,806,647,370)

(641,l917,044)

Total Stockholders’ Equity

(3,832,342,086)

(25,694,716)

 

 

 

PROFIT AND LOSS STATEMENT

 

 

- Sales Revenue - Net

1,246,330,147

8,537,035,592

- Cost of Good Sold

1,181,954,186

4,431,799,020

- Gross Profit

64,375,961

4,105,236,572

- Total Operating Expenses

1,556,469,136

2,434,976,895

- Profit (Loss) From Operation

(3,094,765,979)

(21,05,120)

- Total Other Income (Expense) - net

(711,881,392)

(620,861,924)

- Profit (Loss) Before Tax

(3,806,647,370)

(641,917,044)

- Corporate Income Tax

--

--

- Profit (Loss) After Tax

(3,806,647,370)

(641,917,044)

Source: PT. Meghmani Organics Indonesia

 

Since on May 2013, the management of P.T. MOI is led by Mr. Patel Ankit Natwarlal (28) replacing Mr. Ramanath Mangapuram (46) as President Director.  He is a young professional manager from India with more than 5 years experience in trading, import and distribution of agrochemical products.  In daily activities he is assisted by Mr. Ashish Natwarlal Soparkar (61) 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.

 

Considering the operation of P.T MOI suffered from loss in fiscal years 2012 to 2013, also economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.13

UK Pound

1

Rs.101.53

Euro

1

Rs.85.41

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.