MIRA INFORM REPORT

 

 

Report Date :

20.12.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. FERRO MAS DINAMIKA

 

 

Registered Office :

Jl. Raya Cikarang – Cibarusa Kp. Tegal Gede, Desa Pasir Sari Kec. Lemahabang, Bekasi 17550 West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

18.06.1991

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is dealing in Ceramic Frits and Color Masterbatch

 

 

No. of Employees :

280

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. FERRO MAS DINAMIKA

 

 

Address

 

Head Office & Factory

Jl. Raya Cikarang - Cibarusa

Kp. Tegal Gede, Desa Pasir Sari

Kec. Lemahabang, Bekasi 17550

West Java

Indonesia

Phones             - (62-21) 893 4751 (hunting)

F a x                 - (62-21) 893 4749

Land Area         - 5.3 hectares

Building Area     - 2.6 hectares

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

18 June 1991

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C2-3865 HT.01.01.Th.91

    Dated 14 August 1991

b. No. AHU-80453.AH.01.02.Tahun 2008

    Dated 31 October 2008

c. No. AHU-AH.01.10-30132

    Dated 22 July 2013

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.069.494.1-052.000

 

Holding Company :

FERRO CORPORATION of the USA (Investment Holding)

 

Related/Affiliated Company :

P.T. ROLIMEX KIMIA NUSAMA (Chemical Product Trading and Investment Holding)

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                      - US$ 5,400,000.-

Issued Capital                            - US$ 2,800,000.-

Paid up Capital                          - US$ 2,800,000.-

 

Shareholders/Owners :

a. P.T. ROLIMEX KIMIA NUSAMAS      - US$    140,000.- (  5%)

    Address : ITC Cempaka Mas, 10th Floor

                    Jl. Letjen Suprapto Kav. 1

                    Jakarta Pusat

b. FERRO CORPORATION                    - US$ 2,660,000.- (95%)

    Address : 1000 Lakeside Avenue,

                    Cleveland, Ohio

                    USA

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Ceramic Frits and Color Masterbatch Industry

 

Production Capacity :

a. Ceramic Frits                      - 69,000 tons p.a.

b. Enamel Frits                       -   7,000 tons p.a.

c. Color Masterbatch               - 12,500 tons p.a.

 

Total Investment :

Owned Capital                        - US$ 2,800,000

 

Started Operation :

1 9 9 3

 

Brand Name :

Ferro Mas Dinamika

 

Technical Assistance :

None

 

Number of Employee :

280 persons

 

Marketing Area :

a. Local    - 75%

b. Export  - 35%

 

Main Customer :

Ceramic Tile and Ceramic Tableware Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Inter Aneka Lestari Kimia

b. PT. Colorindo Chemtra

c. PT. Clariant Indonesia

d. PT. Dystar Colours Indonesia

e. PT. Polkrik Indonesia

f.  PT. Colorindo Aneka Chemical

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

  a. P.T. Bank SINARMAS Tbk

      Sinarmas Land Plaza, Tower 1

      Jl. M.H. Thamrin No. 51

      Jakarta Pusat

      Indonesia

 

  b. P.T. Bank INTERNASIONAL INDONESIA Tbk

      BII Plaza

      Jl. M.H. Thamrin No. 51

      Jakarta Pusat

      Indonesia

 

  c. DEUTSCHE Bank N.A.

      Deutsche Bank Building

      Jl. Imam Bonjol No. 80

      Jakarta Pusat

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Total Income/Revenues (estimated) :

2010 – US$. 43.0 million

2011 – US$. 49.0 million

2012 – US$. 56.0 million

2013 – US$. 31.5 million (January – June)

 

Net Profit (estimated) :

2010 – US$. 3.7 million

2011 – US$. 4.2 million

2012 – US$. 4.8 million

2013 – US$. 2.7 million (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Rusdy Tano

Vice President Director                     - Mr. Siguan Tunaldi

Directors                                         - a. Mr. Ferry Tirta Parma

                                                        b. Mr. Christian Nainggolan

                                                        c. Mr. Parin Mekabut

 

Board of Commissioners :

President Commissioner                   - Mr. James Allen Barna

Vice President Commissioner           - Mr. Matthias Peter Bell

Commissioners                                - a. Mr. Muktar Widjaja

                                                        b. Mr. Wu Seang Chau

 

Signatories :

President Director (Mr. Rusdy Tano) or Vice President Director (Mr. Siguan Tunaldi) or one of the Directors (Mr. Ferry Tirta Parma, Mr. Christian Nainggolan or Mr. Parin Mekabut) which must be approved by Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

 

P.T. FERRO MAS DINAMIKA (P.T. FMD) was established in Jakarta based on Notarial Deed No. 162 dated June 18, 1991 made by Benny Kristianto, SH., notary in Jakarta with the authorized capital of Rp. 200,000,000.- of which Rp. 100,000,000.- was issued and fully paid up. The founding shareholders of the company are P.T. SINAR MAS TUNGGAL (90%) and Mr. Muktar Widjaja (10%), an Indonesian businessman of Chinese extraction.  The Deed of establishment has been approved by the Ministry of Justice of the Republic of Indonesia through its Decision Letter No. C2-3865 HT.01.01.TH.91 dated August 14, 1991.   The articles of association of the company have frequently been changed.  In 1998, the authorized capital was raised to US$ 5,400,000.- of which US$ 1,080,000.- was issued and fully paid up.  Since that time, the shareholders of the company are P.T. SINARINDO KIMIANUSA of Indonesia (5%) and FERRO CORPORATION of the USA (90%).  Most recently by Notarial Deed No. 374 dated July 5, 2013 made by Notary Miryany Usman, SH., the issued capital was raised to US$ 2,800,000.- and fully paid up.  The latest shareholders are P.T. ROLIMEX KIMIA NUSAMAS (5%) and FERRO CORPORATION (95%). 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.01.10-30132 dated July 22, 2013.

 

 P.T. FMD obtained a foreign capital investment (PMA) company license for dealing with ceramic frits, enamel frits and color masterbatch manufacturing whose plant is located on Jalan Raya Cikarang Cibarusa, Kampung Tegal Sari, Lemahabang Sub-district, Bekasi (West Java) standing on 5.3 hectares land operating in 1993.  The plant has production capacity of 45,000 tons of ceramic frits, 7,000 tons of enamel frits and 12,500 tons of color masterbatch per year. In March 2000 the company obtained license for increasing ceramic frits production capacity of 24,000 tons per year. Mr. Suryaka, an administrative staff of the company disclosed that the production capacity is still fluctuation around 80% to 90% of installed production capacity for ceramic frits, while for color masterbatch is about 6,500 to 7,000 tons per year.  He went on to say that company products are 30% to 35% exported to Taiwan and India and the rest is for domestic purpose. We observed that P.T. FMD is classified as a medium sized company of its kind in the country of which the operation had been running smoothly and growing steadily.

 

Generally, the demand for ceramic frits, enamel frits and color masterbatch had significantly rising by 8% to 10% per year in the last five years, in line with the growth of industrial sectors especially ceramic tile and ceramic tableware industries, granite industries, porcelain industries and others. But, as from October 2008, the demand growth for ceramic enamel frits and color masterbatch has kept on dwindling as an impact of global economic crisis as told above.  The demand was increasing in the early 2009 due to economic condition was gradually recovery in the country. The growth rate is now estimated at 5% to 6% per year. Market competition is very tight due to a large number of similar companies operating in the country.  Business position of P.T. FMD is favorable for it has controlled a wide marketing network at home and their product has been widely known among consumers in the country.

 

Until this time P.T.  FMD has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. Therefore, the company has no obligation to publish financial statement publicly.  P.T. FMD’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total income/revenues of the company in 2010 amounted to US$ 43.0 million increased to US$ 49.0 million in 2011 and rose again to US$ 56.0 million in 2012.  The operation in 2012 yielded a net profit at least US$ 4.8 million and the company has a total net worth of US$ 20.0 million. 

 

It is projected that total sales turnover of the company will increase at least 8% in 2013.    So far we did not hear that P.T. FMD has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.  The company usually pays its debts punctually to suppliers.


The Company's management is headed by Mr. Rusdy Tano (49) as President Director and he is assisted by Mr. Siguan Tunaldi (62) as Vice President Director and also assisted by three directors namely Mr.Fery Tirta Parma (44), Mr. Christian Nainggolan (33) and Mr. Parin Mekabut (41).  The company’s management has experienced more than 20 years experience in chemical processing industry.  The management of the company is handled by experienced professional manager having wide relation with private businessmen of home and overseas as well as with the government sectors.  So far we have never heard that the board of directors and commissioners of the company involved in business malpractices or detrimental cases that settled through the court. The company’s litigation record is clean and they have never involved in civil or criminal cases in the country.

 

We appraise P.T. FMD to be still good for normal business transactions.  However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.38

UK Pound

1

Rs.102.15

Euro

1

Rs.85.29

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.