MIRA INFORM REPORT

 

 

Report Date :

28.01.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. INDORAMA POLYCHEM INDONESIA

 

 

Registered Office :

Jalan Desa Kembang Kuning Desa Kembang Kuning, Kecamatan Jatiluhur,  Purwakarta, 41181 West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

04.10.2011

 

 

Com. Reg. No.:

No. AHU-49382.AH.01.01.TH.2011

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Polymerization Resin Industry

 

 

No. of Employees :

570 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 Commence 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. INDORAMA POLYCHEM INDONESIA

 

 

Address

 

Head Office & Factory

Jalan Desa Kembang Kuning

Desa Kembang Kuning, Kecamatan Jatiluhur,

Purwakarta, 41181

West Java

Indonesia

Phone               - (62-264) 207727

Fax                   - (62-264) 211260

E-mail               - infoipci@id.indorama.net

Website            -           http://www.indoramaventure.com

Land Area         - 200,000 sq. meters

Building Area     - 50,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Corporate Office

Graha Irama, 17th Floor

Jalan H.R. Rasuna Said X-1 Kav. 1 & 2

Jakarta Selatan, 12950

Indonesia

Phones             - (62-21) 5261555 (Hunting)

Fax                   - (62-21) 5261501, 5261502

Building Area     - 26 storey

Office Space      - 2,500 sq. meters

Region              - Commercial

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

4 October 2011

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-49382.AH.01.01.TH.2011

Dated 10 October 2011

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

Not Available

The Capital Investment Coordinating Board

No. 2625/I/PPM/I/PMA/2011

Dated 29 September 2011

 

Related Company :

A Member Company of the INDORAMA Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 35,000,000.-

Issued Capital                                  : US$ 30,000,000.-

Paid up Capital                                : US$ 30,000,000.-

 

Shareholders/Owners :

a. INDORAMA NETHERLANDS B.V.                                  - US$ 29,997,000.-

    Address : Markweg 201, 3198 NB

                    Europoort Rotterdam

                    Netherlands

b. INDORAMA NETHERLANDS COOPERATIEF U.A.         - US$          3,000.-

    Address : Markweg 201, 3198 NB

                    Europoort Rotterdam

                    Netherlands

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Polymerization Resin Industry

 

Production Capacity :

Synthetic Resin/ Synthetic Fibers     - 313,000 tons per annum

 

Total Investment :

a.   Equity Capital                            - US$   30.0 million

b.   Loan Capital                              - US$   70.0 million

c.   Total Investment                         - US$ 100.0 million

 

Started Operation :

2014 (Planned)

 

 

Brand Name :

Indorama Polychem Indonesia

 

Technical Assistance :

Indorama Netherlands B.V., Netherlands

 

Number of Employee :

570 persons

 

Marketing Area :

Export      - 25%

Local       - 75%

 

Main Customer :

Plastic Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ALKINDO MITRARAYA

b. P.T. ARINDO PACIFIC CHEMICALS

c. P.T. BASF INDONESIA

d. P.T. ETERNAL BUANA CHEMICALS

e. Etc.

 

Business Trend :

No Comment

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank PAN INDONESIA Tbk

    Jalan Jend. Sudirman Kav. 55

    Jakarta Selatan

    Indonesia

b. P.T. Bank INTERNATIONAL INDONESIA Tbk

    Plaza BII, Jalan M.H. Thamrin No. 55

    Jakarta Pusat

    Indonesia

c. BANGKOK Bank

    Jalam M.H. Thamrin No. 3

    Jakarta Pusat

    Indonesia

d. AMERICAN EXPRESS Bank

    Jalan H.R. Rasuna Said Kav. X-5

    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. Udey Paul Singh Gill

Directors                                         - a. Mr. Ramesh Kumar Narsinghpura

                                                        b. Mr. Saurabh Mishra

 

Board of Commissioners :

President Commissioner                   - Mr. Sri Prakash Lohia

Commissioners                                - a. Mr. Aloke Lohia

                                                        b. Mr. Suchitra Lohia

                                                        c. Mr. Amit Lohia

 

Signatories :

President Director (Mr. Udey Paul Singh Gill) or one of the Directors (Mr. Ramesh Kumar Narsinghpura or Mr. Saurabh Mishra) 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. INDORAMA POLYCHEM INDONESIA (P.T. IPI) was incorporated in Purwakarta based on notary deed of Mrs. Novita Puspitarini, SH., No. 1 dated 4 October 2011 with the authorized capital of US$ 35,000,000 issued capital of US$ 30,000,000 entirely paid up. The founding and shareholders of the company are INDORAMA NETHERLANDS B.V., (99.99%) and INDORAMA NETHERLANDS COOPERATIEF U.A., (0.01%) both are a member company of the INDORAMA Group based in Netherlands. Based on our knowledge up to writing the report the notary documents of the company have not undergone any changes. The company notary deed was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-49382.AH.01.01.TH.2011 dated October 10, 2011.

 

We observe that both shareholders INDORAMA NETHERLANDS BV., and INDORAMA NETHERLANDS COOPERATIEF U.A., is members company of the INDORAMA Group, a large sized business group dealing with integrated textile industry which majority shares is controlled and headed by Mr. Sri Prakash Lohia.

 

P.T. IPI operates under Foreign Investment (PMA) facilities to deal with polymerization resins industry. The plant will be located at Jalan Desa Kembang Kuning, Jatiluhur, Purwakarta, West Java, standing on 200,000 sq. meters landsite. The plants will be produce of synthetic resin/ synthetic fibers of 313,000 tons per annum. The construction of the factory will absorbed an investment of US$ 100.0 million come from owned capital of US$ 30.0 million and the rest from loan. Synthetic resins are materials with a property of interest that is similar to natural plant resins: they are viscous liquids that are capable of hardening permanently. Otherwise, chemically they are very different from the various resinous compounds secreted by plants (see resin for discussion of the natural products). The synthetics are of several classes. Some are thermosetting plastics in which the term "resin" is loosely applied to the reactant or product, or both. Resin may be applied to one of two monomers in a copolymer (the other being called a hardener as in epoxy resins). Construction of the project begun since early 2011 and will be completed in the end of 2013. Mrs. Mila, General Affairs P.T. IPI disclosed that the construction of the project under still processing up to present and they installed of production machines and other equipment. She explained that the construction of the plants will be finished in the end 2013. According information the plant will be commenced production in the early 2014. About 75% of P.T. IPI's production will be marketed in the country in the ranks of plastic manufacturing in the country and the rest is exported to Asian countries. We observe that P.T. IP 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. IPI having yet to be in operation, the financial condition of the company is just as it’s paid up capital of US$ 30.0 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. IPI is backed up by the INDORAMA NETHERLANDS B.V., of Netherlands which has financially strong behind it.

 

 

      The management of P.T. IPI is led by Mr. Udey Paul Singh Gill (60) a professional manager of India with experience in polyester filament yarn industry. He is also President Director of P.T. INDORAMA VENTURES INDONESIA engaged in polyester filament yarns industry. He is also professional manager of INDORAMA Ventures Public Company, in petrochemical and chemical industry based in Thailand. However we are sure the prime mover is Mr. Sri Prakash Lohia (61) a top figure of the INDORAMA Group. The company's management is handled by professional staff in the above business. They have 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. Considering P.T. INDORAMA POLYCHEM INDONESIA having yet to be in operation, we recommend to treat prudently in business transaction and in extending a loan to the company.

 

 

Attachment:

 

 

List of the INDORAMA Group Members

 

 

1.       ASHOK TEXTILE Industries, Ltd., Nepal (Textile Industry)

2.       AUTUM INVESTMENT Ltd., Hong Kong (Holding Company)

3.       BANGADUA PETROLEUM, P.T. (Oil & Natural Gas Exploration)

4.       BROOKGRANGE INTERNATIONAL FINANCE LTD., The U.K. (Financing Service)

5.       INDOMULIA MITRAJAYA, P.T. (Shrimp Culture)

6.       INDORAMA CHEMICALS (Thailand) Ltd., Thailand (Chemicals Manufacturing)

7.       INDORAMA NETHERLANDS BV., (Investment Holding)

8.       INDORAMA NETHERLANDS COOPERATIEF U.A. (Investment Holding)

9.       INDORAMA PETROCHEMICALS, P.T. (Purified Terephthalic Acid Manufaccturing)

10.   INDORAMA POLYCHEM INDONESIA, P.T. (Polymerization Resin Industry)

11.   INDORAMA POLYESTER INDUSTRIES INDONESIA, P.T. (Polyester Filament Yarn Industry)

12.   INDORAMA PROJECTS AND SERVICES Ltd., India (Consulting and Investment Holding)

13.   INDORAMA SYNTHETICS (India) Ltd., India (Chemicals Manufacturing)

14.   INDORAMA SYNTHETICS Tbk, P.T. (Spinning Mills and Investment Holding)

15.   INDORAMA TRADE AND DEVELOPMENT SERVICES, P.T. (General Trading)

16.   INDORAMA VENTURES INDONESIA, P.T. (Polyester Filament Yarn and Polyester Resin Industry)

17.   INDORAMA VENTURES PUBLIC LISTED LTD,. Thailand (Polyester Filament Yarn Industry)

  1. INDOSPECT ASIA PETROLEUM BANGADUA, P.T. (Oil and Gas Exploration and Production)

19.   IRAMA DINAMIKA LATEX, P.T. (Latex Goods Manufacturing)

20.   IRAMA UNGGUL, P.T. (Trading and Investment Holding)

21.   JAKARTA MAJU PUSAKA, P.T. (Trading and Suppliers)

22.   LOHIA INDUSTRIES PVT.,LTD., India (Investment Holding)

23.   MITRABANGUN GRIYA, P.T. (Office Block Rental Management)

24.   RAMATEX Ltd., (Hong Kong), (Investment Holding)

25.   SK WAHANA INTERNATIONAL, P.T. (Textile Industry)

26.   THONBURI LACE Co. ,Ltd., Thailand (Investment Holding)

 

* * *

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.85

UK Pound

1

Rs.85.25

Euro

1

Rs.71.72

 

 

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.