MIRA INFORM REPORT

 

 

Report Date :

25.03.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. HIDROFLEX INDONESIA

 

 

Registered Office :

Jl. Mayor Oking Jayaatmadja No. 88 Cibinong 16911 West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

17.01.2003

 

 

Com. Reg. No.:

No. AHU-AH.01.10-25898

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Design and manufacturer of Metal and Non Metal Expansion Joints, Strainers, Dampers, Pressure Vessels, Exhaust Silencer, etc

 

 

No. of Employees :

170 persons

 

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 – 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. HIDROFLEX INDONESIA

 

 

Address

 

Head Office & Factory

Jl. Mayor Oking Jayaatmadja No. 88

Cibinong 16911

West Java

Indonesia

Phones             - (62-21) 8791 4609, 8791 4522

Fax                   - (62-21) 8791 4611

Email                - sales@pthidroflex.com

Website            - http://www.pthidroflex.com

Land Area         - 21,250 sq. meters

Building Space  - 12,500 sq. meters

Region              - Industrial zone

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

17 January 2003

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a.  No. C-19935 HT.01.01.TH.2003

      Dated 22 August 2003

  b.  No. AHU-19914.AH.01.02.TH.2009

      Dated 08 April 2009

  b.  No. AHU-AH.01.10-25898

      Dated 09 August 2011

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

  a.  The Department of Finance

      NPWP No. 01.869.535.3-403.001

 

  b.  The Capital Investment Coordinating Board

      No. 38/I/PMA/2003

      Dated 15 January 2003

 

 

Related/Affiliated Companies :

a. IAC – Colpro Pty. Ltd., of Australia

b. PED Engineering Pty., Ltd., of Australia

c. Industrial Boiler and IB Turbo Ptv. Ltd., of India

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                  - US$ 282,000.- (Rp 2,498,520,000.-)

Issued Capital                        - US$ 282,000.- (Rp 2,498,520,000.-)

Paid up Capital                      - US$ 282,000.- (Rp 2,498,520,000.-)

 

Shareholders/Owners :

a. Mr. Chetan Shah                         - US$ 112,800.- (40%)

    Address : 41, Balthasar Close Rosemeadow

                    NSW 2560

                    Australia

b. Mr. Jack Christie                        - US$   14,100.- (  5%)

    Address : 36, Haultain St Minto

                    NSW 2566

                    Australia

c. Mr. Handoko Gunawan               - US$ 143,820.- (51%)

    Address : Jl. Katalia II/4

                    West Jakarta

                    Indonesia

d. Mr. Ganis Danandjati                  - US$     5,640.- (  2%)

    Address : Jl. Kucica V Blok JH 1/4

                    Pondok Aren, Tangerang

                    Indonesia

e. Mr. Giok Lay                               - US$     5,640.- (  2%)

    Address : Jl. Sukahati II No. 41

                    Tangerang, Banten

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Design and manufacturer of Metal and Non Metal Expansion Joints, Strainers, Dampers, Pressure Vessels, Exhaust Silencer, etc

 

Production Capacity :

On the order basis

 

 

Total Investment :

Owned Capital                                 - US$ 10.0 million

 

Started Operation :

2003

 

Brand Name :

Hidroflex Indonesia

 

Technical Assistance :

a. IAC – Colpro Pty. Ltd., of Australia

b. PED Engineering Pty., Ltd., of Australia

c. Industrial Boiler and IB Turbo Ptv. Ltd., of India

 

Number of Employee :

170 persons

 

Marketing Area :

Local       - 100%

 

Main Customers :

a. PT. Multi Nitrotama Kimia

b. PT. Krakatau Steel Tbk.

c. PT. Pertamina

d. PT. Kaltim Prima Coal

e. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Aweco Indosteel Perkasa

b. PT. Tetra Pak Stainless Equipment

c. PT. Meco Inox Prima

d. PT. Remaja Prima Engineering

e. PT. Prakarsa Langgeng Majubersama

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank INTERNASIONAL INDONESIA Tbk

Cibinong Branch

Jl. Mayong Oking Jayaatmadja No. 27

Cibinong, Bogor, West Java

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp.   96.8 billion

2011 – Rp. 110.0 billion

2012 – Rp. 126.0 billion

 

Net Profit (estimated) :

2010 – Rp.  7.7 billion

2011 – Rp.  8.9 billion

2012 – Rp.10.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Chetan Shah

Directors                                         - a. Mr. Ganis Danandjati

                                                        b. Mr. Giok Lay

 

Board of Commissioners :

President Commissioner                  - Mr. Handoko Gunawan

Commissioner                                 - Mr. Jack Christie

 

Signatories :

President Director (Mr. Chetan Shah) or one of the Directors (Mr. Ganis Danandjati or Mr. Giok Lay) which must be approved by Board of Commissioners

 

 

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

 

      P.T. HIDROFLEX INDONESIA (P.T. HI) was established in Jakarta based on Notarial Deed of Henggawati, SH., No. 10 dated January 17, 2003 with the authorized capital of  US$ 282,000.- entirely was issued and fully paid up.  The founding shareholders of the company are Mr. Chetan Shah (40%), Mr. Jack Christie (5%), both are Australian businessmen, and four businessmen of Indonesia, namely Mr. Handoko Darmawan (48%), Mr. Ganis Danandjati (3%), Mr. Tjanta Sinulingga (2%) and Giok Lay (25).  The Deed of establishment has been approved by the Minister of Justice and Human Rights of the Republic of Indonesia through Decision Letter No. C-19935 HT.01.01.TH.2003 dated August 22, 2003.

 

      The Company’s article of association has been amended for several times. Based on notarial deed of Elizabeth Widyawati Santosa, SH., No. 15 dated February 24, 2009 concerning changes of the whole article of association of the Company’s to conform with Law No. 40 Year 2007 concerning Limited Liability Company. The notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-19914.AH.01.02.Tahun 2009 dated April 8, 2009.  Most recently by notarial deed of Elizabeth Widyawati Santosa, SH., No. 31 dated July 28, 2011 the company shareholder has been changed, where Mr. Tjanta Sinulingga puled out and his shares are sold to Mr. Handoko Darmawan. 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.01.10-25898 dated August 9, 2011.

 

      P.T. HI obtained a foreign investment company (PMA) facility issued by Investment Coordinating Board (BKPM) in 2003 for dealing with specializing in design and manufacturer of Metal and Non Metal Expansion Joints, Strainers, Dampers, Pressure Vessels, Exhaust Silencer, etc.  These, high quality superior performance products meet the various needs of Refineries, Styrene, LNG, Desalination, Polypropylene, PTA plant, etc.  The company’s office and factory located at Jl. Mayor Oking Jayaatmadja No. 88, Cibinong, Bogor, West Java on a land of 21,250 sq. meters.   The factory’s facility is equipped with EOT crane, modern fabrication machinery and automatic welding center, rotators and positioners.  The factory has state of the art machines specifically developed for expansion joints and pressure vessels.  Their engineering products are designed using; the latest integrated software, technical purchse specification for materials, quality management, design development plant, design input, detailed engineering and manufacturing drawings.  Beside, P.T. HI also offers turnkey services for boiler and steam turbines as Cogeneration plant as well as other fabricated products.  A number of customers of P.T. HI include PT. Multi Nitrotama Kimia, PT. Krakatau Steel Tbk., PT. Pertamina, PT. Pertamina EP, PT. Kaltim Prima Coal, Ox Air Australia, WES Australia, Shell Malaysia and others. We observed that P.T. HI is classified as a medium sized company of its kind in the country of which the operation has been running smoothly and growing in the last three years.

 

Generally, local demand for metal and non metal expansion joints, strainers, dampers, pressure vessels, exhaust silencer and others had been increasing by 8% to 10% on the average per annum within the last five years in line with the growth of manufacturing industries in the country like petrochemical, pulp and paper, cement, oil and gas, food and beverage, pharmaceutical and others. However, the competition is very tight on account of lots of similar companies operating in the country.  The business position of P.T. HI is appraised to be favorable for having established regular customers and wide marketing networks in major cities in the country.

 

      Until this time P.T. HI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. HI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2010 amounted to Rp. 96.0 billion increased to Rp. 110.0 billion in 2011 rose again to Rp. 126.0 billion in 2012 and projected to go on rising by at least 8% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 10.2 billion and the company has an estimated total networth of at least Rp. 80.0 billion. 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.

 

      The management of P.T. HI is led by Mr. Chetan Shah (52) a Australian businessman and professional manager with experience in design and manufactuer of metal and non metal expansion joints, strainers, dampers, pressure vessels, exhaust silencer, etc.  In daily activities, he is assisted by Mr. Ganis Danandjati (44) and Mr. Giok Lay (55), as director respectively. The company's management is also 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. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. HIDROFLEX INDONESIA is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.33

UK Pound

1

Rs.82.56

Euro

1

Rs.70.10

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.