MIRA INFORM REPORT

 

 

Report Date :

11.06.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. SINAR INDOCHEM

 

 

Registered Office :

Jl. Raya By Pass Krian – Mojokerto Km. 32, Kec. Balongbendo, Kab. Sidoarjo, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.02.2006

 

 

Com. Reg. No.:

No. AHU-64846.AH.01.02.Tahun 2012

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Animal Feed Milling Industry

 

 

No. of Employees :

560

 

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 – 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 an estimated 6.2% and 6.5% 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 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. SINAR INDOCHEM

 

 

Company Address

 

Head Office & Factory 

Jl. Raya By Pass Krian – Mojokerto Km. 32

Kec. Balongbendo, Kab. Sidoarjo

East Java, Indonesia

Phones             - (62-31) 898 2168 (hunting)

Fax                   - (62-31) 898 2169

Email                - feedmill@sinar-indochem.com

Land Area         - 4,600 sq. meters

Building Area    - 2,800 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

20 February 2006

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

  a.  No. C-09403 HT.01.01.TH.2006

      Dated 03 April 2006

  b.  No. AHU-64846.AH.01.02.Tahun 2012

      Dated 18 December 2012

 

 

Company Status

 

National Private Company

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 02.370.651.8-603.000

 

 

Affiliated/Associated Company

 

a. P.T. SINAR INDO PACIFIC (Investment Holding)

b. P.T. SINAR UNIGRAIN INDONESIA (Corn Product Processing Industry)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 96,000,000,000.-

Issued Capital                                 - Rp. 24,000,000,000.-

Paid up Capital                               - Rp. 24,000,000,000.-

 

Shareholders/Owners :

a. P.T. SINAR INDO PACIFIC          - Rp. 23,999,000,000.- (99.996%)     

   Address : Jl. Raya Mulyosari PPD-17

                   Mulyorajo, Surabaya

                   East Java, Indonesia

b. Mr. Hariadi                                 - Rp.          1,000,000.- (  0.004%)

   Address : Jl. Untung Suropati No. 2

                   Surabaya, East Java

                   Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Animal Feed Milling Industry

 

Production Capacity :

Animal Feed                  - 360,000 tons p.a.

 

Total Investment :

a.   Equity Capital         - Rp. 24.0 billion

b.   Loan Capital            - Rp. 30.0 billion

c.   Total Investment      - Rp. 54.0 billion

 

Started Operation :

2011

 

Brand Name :

STARFEED

 

Technical Assistance :

None

 

Number of Employee :

560 persons

 

Marketing Area :

Local       - 100%

 

Main Customers :

Animal Feed Distributors and Poultry Farming

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Bintang Jaya Proteina Feedmill

b. PT. Central Pangan Mandiri

c. PT. Citra Ina Feed Mills

d. PT. Gold Coin Indonesia

e. PT. Grobest Indo Makmur

f.  PT. Mabar Feed Indonesia

g. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Banker :

P.T. Bank CENTRAL ASIA Tbk.

Krian Branch

Jl. Kauman No. 25,

Krian, Sidoarjo

East Java

Indonesia

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 


FINANCIAL FIGURE

 

Annual Sales (estimated):

2011 – Rp. 190.0 billion

2012 – Rp. 560.0 billion

 

Net Profit (estimated):

2011 – Rp. 12.0 billion

2012 – Rp. 36.4 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Hariyono Tan

Directors                                         - a. Mr. Hairyanto

                                                        b. Mr. Hariyono

Marketing Manager                          - Mr. Rudy Dermawan

 

Board of Commissioners :

President Commissioner                  - Mr. Hariadi

Commissioner                                 - Mr. Hartono

 

Signatories :

President Director (Mr. Hariyono Tan) or one of the Directors (Mr. Hairyanto or Mr. Hariyono) which must be approved by Board of Commissioners (Mr. Hariadi and Mr. Hartono)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. SINAR INDOCHEM (P.T. SIC) was established in Sidoarjo based on Notarial Deed No. 4 dated 20 February 2006 of Ninik Sutjiati, SH., a notary in Surabaya with the authorized capital of Rp.10,000,000,000.- of which Rp 2,500,000,000.- was issued and fully paid up.  The founding shareholders of the company are Mr. Hariyono Tan (16%), Mr. Hariyanto (17%), Mr. Hariyono (25%), Mr. Hariadi (25%) and Mr. Hartono (17%).  They are Indonesian businessmen of Chinese extraction.  The Articles of Association has been approved by the Minster of Law and Human Rights through Decision Letter No. C-09403 HT.01.01.TH.2006 dated 3 April 2006. The articles of association of the company have been revised, most recently by notarial Deed No. 4 dated 14 October 2012 of Siti Nurul Yuliami, SH., notary in Surabaya, the authorized capital was raised to Rp. 96,000,000,000.- of which Rp. 24,000,000,000.- was issued and fully paid up.  Concurrently, the shareholders of the company are PT. SINAR INDO PACIFIC (99.996%) and Mr. Hariadi (0.004%).  The amendment to Article of Association has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-64846.AH.01.02.Tahun 2012 dated 18 December 2012.

 

P.T. SIC has been operation since mid-2011 dealing with the animal (poultry) feed industry.  The company manages a plant located at Jl. Raya By Pass Kian – Mojokerto Km. 32, Balongbendo, Sidoarjo, East Java.  According to Mr. Rudy Dermawan (marketing manager of PT. SIC) said that the company has a production capacity of 30,000 tons of animal (poultry) feeds per month. Mr. Dermawan added that P.T.  SIC's realized production has now already reached 35% to 40% of its installed capacity and the company's production is entirely marketed in the country under the Starfeed brand through animal feed distributors appointed in Surabaya, Sidoarjo, Malang and several big cities of the East Java.  We observed that P.T. SIC is still relatively new company in trading, import and distribution of agricultural products.

 

In overall views we find the demand for animal feed such as poultry meal, fish meal, fork meal and feather meals had been rising by 7% to 8% per year in the last five years, in line with the growth of animal feed industry and breeding farm in the country.  But, as from October 2008, the demand growth for animal feed products 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. Besides that the competition is very tight due to a large number of similar companies operating in the country. It’s projected the demand for animal feed, fish meal, fish oil and feather meals will be rising in the future at least 5% per annum.  P.T. SIC is classified as a new company of its kind in the country of which the operation has been growing slowly.

 

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. 24.0 billion 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.  The management of P.T. SIC is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company as of June to December 2011 amounted to Rp. 190.0 billion increased to Rp. 560.0 billion as of January to December 2012. The Company’s operation in 2012 yielded an estimated net profit of at least Rp. 36.4 billion and the company has an estimated total net worth of Rp. 60.0 billion. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of P.T. SIC is led by Mr. Hariyono Tan (40) a young businessman with 3 years experience in animal (poultry) feed industry.  In daily activities he is assisted by his younger brothers namely Mr. Hairyanto (35) and Mr. Hariyono (32).  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. SINAR INDOCHEM) 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.57.78

UK Pound

1

Rs.89.71

Euro

1

Rs.76.24

 

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.