MIRA INFORM REPORT

           

 

 

Report Date :

17.05.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. DIC ASTRA CHEMICALS

 

 

Registered Office :

Jl. Pulobuaran Raya Blok III-DD5-10, Kawasan Industri Pulogadung, Jakarta Timur

 

 

Country :

Indonesia

 

 

Date of Incorporation :

07.02.1990

 

 

Com. Reg. No.:

No. AHU-AH.01.10-22857

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing of Coloring Chemical for Textile, Plastic and Leather

 

 

No. of Employees :

180 persons

 

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. DIC ASTRA CHEMICALS

 

Company address

 

Head Office & Factory

Jl. Pulobuaran Raya Blok III-DD5-10

Kawasan Industri Pulogadung

Jakarta Timur

Indonesia

Phones             - (62-21) 460 3255 (hunting)

Fax                   - (62-21) 460 5557

Land Area         - 2,800 sq. meters

Building Space  - 2,200 sq. meters

Region              - Industrial Estate

Status               - Rent

 

Date of Incorporation

 

07 February 1990

 

Legal Form

 

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

 

Company Reg. No.

 

The Ministry of Law and Human Rights

  a.  No. C2-4817.HT.01.01.TH.90

      Dated 15 August 1990

  b. No. AHU-12010.AH.01.02.Tahun 2009

      Dated 08 April 2009

  c. No. AHU-AH.01.10-22857

      Dated 22 June 2012

 

Company Status

 

Foreign Investment Company (PMA)

 

Permit by the Government Department :

  a. The Department of Finance

      NPWP No. 01.061.969.0-052.000

 

  b.  The President of the Republic of Indonesia

      No. B-264/Pres/11/1989

      Dated 20 November 1989

 

  c.  The Capital Investment Coordinating Board

      -No. 247/I/PMA/1989

       Dated 07 December 1989

      -No. 66/II/PMA/1997

       Dated 22 April 1997

 

Affiliated /Associated Company :

a. A member of the ASTRA Group of Indonesia

b. A member of the DIC Group of Japan

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital      - US$ 18,000,000 (Rp. 32,310,000,000.-)

Issued Capital            - US$ 18,000,000 (Rp. 32,310,000,000.-)

Paid up Capital          - US$ 18,000,000 (Rp. 32,310,000,000.-)

 

Shareholders/Owners :

a. DIC CORPORATION                    - US$ 13,500,000.- (75%)

    Address: Waterras Tower, 101

                   Kanda Awajicho 2-Chome

                   Chiyoda-ku, Japan

 

b. PT. ASTRAO OTOPARTS Tbk     - US$   4,500,000.- (25%)

    Address: Jl. Pegangsaan Dua Km. 2,2

                   Kelapa Gading

                   Jakarta Utara – Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Manufacturing of Coloring Chemical for Textile, Plastic and Leather

 

Production Capacity :

a. Flame Retardant Compounds                         -    800 tons p.a.

b. Coloring Compounds                                                - 6,500 tons p.a.

c. Coloring for PVC, PE, PS, ABS and PP         - 4,200 tons p.a.

d. Coloring for textile, leather and Paint              - 1,500 tons p.a.

e. Binding Agent for Textile and Leather             - 1,000 tons p.a.

                       

Total Investment :

a. Equity Capital            - US$. 18.0 million

b. Loan Capital              - US$.   2.8 million

c. Total Investment        - US$. 20.8 million

 

Started Operation :

September 1991

 

Brand Name :

DIC ASTRA CHEMICALS

 

Number of Employee :

180 persons

 

Marketing Area :

Local                                              - 80%

Export  - 20%

 

Main Customers :

a. Plastic, Textile, Leather and Paint Industries

b. Overseas buyers in Japan, Malaysia, Singapore, Vietnam, Australia and New Zealand

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. United Chemicals Inter Aneka

b. PT. Wadah Makmur Kencana

c. PT. Dunia Kimia Utama

d. PT. Halim Sakti Pratama

e. PT. Kharindo Prakarsa

f.  PT. Indokemika Jayatama

g. PT. Lautan Luas Tbk

 

Business Trend :

Fluctuating

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

  a.  The Bank of Tokyo-Mitsubishi UFJ Ltd

      MidPlaza Building

      Jl. Jend. Sudirman Kav. 10-11

      Jakarta Selatan

      Indonesia

  b.  P.T. Bank MANDIRI Tbk

      Plaza Mandiri

      Jl. Jend. Gatot Subroto Kav.36-38

      Jakarta Selatan

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No detrimental filling was recorded at the local court

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 153.0 billion

2010 – Rp. 179.5 billion

2011 – Rp. 165.0 billion

2012 – Rp. 160.0 billion

 

Net Profit (estimated) :

2009 – Rp.  6.8 billion

2010 – Rp.  7.8 billion

2011 – Rp.  7.2 billion

2012 – Rp.  6.5 billion

 

Payment Manner :

Fairly good

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Takeshi Fujioka

Directors                                         - a. Mr. Kazuo Kudo

                                                        b. Mr. Gustav Afdhol Husein

                                                        c. Mr. Yoshiki Sugiura

                                                        d. Mr. Ignatius Robby Sani

                                                        e. Mr. Ridwan Sjahjadi

                                                        f.  Mr. Etsuo Sawada

 

Board of Commissioners :

President Commissioner                  - Mr. Kiyotaka Kawashima

Vice President Commissioner          - Mr. Darmawan Widjaja

Commissioner                                 - Mr. Shuichi Okamoto

 

Signatories :

President Director (Mr. Takeshi Fujioka) or one of  the Directors (Mr. Kazuo Kudo, Mr. Gustav Afdhol Husein, Mr. Yoshiki Sugiura, Mr. Ignatius Robby Sani, Mr.  Ridwan Sjahjadi or Mr. Etsuo Sawada)  which must be approved by Board of Commissioners (Mr. Kiyotaka Kawashima, Mr. Darmawan Widjaja and Mr. Shuichi Okamoto)

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Above average

 

Credit Recommendation :

Credit should be extended under guarantee

 

OVERALL PERFORMANCE

 

      P.T. DIC ASTRA CHEMICALS (P.T. DAC) was established in Jakarta based on notarial deed No. 107 dated 7 February 1990 of Arikanti Natakusumah, SH., a notary in Jakarta with an authorized capital of US$ 10,000,000.- entirely issued, of which US$ 2,000,000.- was paid up. The company was founded by P.T. FEDERAL MOTOR (of Indonesia), DAINIPPON INK & CHEMICALS Inc., (DIC) and SUMITOMO CORPORATION (both of Japan) as the original shareholders.  The Deed of establishment has been approved by the Minister of Justice of the Republic of Indonesia through Decision Letter No. C2-4817.HT.01.01.TH.90 dated 15 August 1990.

 

      P.T. DAC's notarial act was since revised a couple of times. In early 1997 the company's authorized capital was increased to US$ 14,000,000.- wholly issued and paid up. On this occasion the above local partner withdrew and was replaced by P.T. ASTRA OTOPARTS Tbk. (ex-P.T. ASTRA DIAN LESTARI Tbk.). The Deed of amendment has been approved by the Minister of Justice and Human Rights through Decision Letter No. C2-19580.HT.01.04.TH.98 dated 13 October 1998.

 

      Latest based on notarial Deed No. 10 dated 1 June 2012, SUMITOMO CORPORATION pulled out of the company.  Since at the time, the shareholder of P.T. DAC are DIC CORPORATION (75%) of Japan and P.T. ASTRA OTOPARTS Tbk. (25%) of Indonesia.  The amendment to Articles of Association has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decision Letter No. AHU-AH.01.10-22857 dated 22 June 2012. No changes have been effected in term of its shareholding composition and capital structures to date.   

 

      We note that the local partner, P.T. ASTRA OTOPARTS Tbk., is a publicly listed member of the ASTRA Group, the biggest national private business group at present in Indonesia in automotive assembling, sole agency and distribution.

 

      DIC Corporation, one of the world’s leading diversified chemical companies, is also the core of the DIC Group, a multinational organization with a network comprising more than 180 companies in 64 countries and territories worldwide.  Established in 1908 as a manufacturer of printing inks, DIC has capitalized on its extensive technologies, know-how and experience in the years since to transform itself into a global powerhouse in key fields of endeavor.   Today, DIC and the companies of the DIC Group supply an extensive lineup of products in four business segments: Printing Inks & Supplies, Neo-Graphic arts Materials, Synthetic Resins and Chemical Solution Materials.

 

      P.T. DAC operates under Foreign Investment (PMA) facilities in chemicals for colorant of textiles, plastic and leather goods manufacturing. The company's plant located on a some 3.8 hectare land in the Pulogadung Industrial Estate, Jalan Pulobuaran Raya Block III-DD/No. 5-10, East Jakarta has been in commercial operation since September 1991. The plant has been expanded several times and now has a production capacity as listed under point 8 of this report. Building of the plant has cost an investment of US$ 16.8 million (US$ 14.0 million from company capital and the balance from loans).  Mr. Sumitro, a senior staff of the company explained that about 80% of the company's production is marketed in the country among various plastic, textile, leather, paint and other industries, with the rest being exported to Japan, Malaysia, Singapore, Vietnam, Australia and New Zealand.   We observed that P.T. DAC is classified as a medium sized company in the country dealing with chemicals for colorant of textile, plastic and leather goods manufacturing of which the operation had been declining in the last five years.

 

Until this time P.T. DAC has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. DAC 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. 179.5 billion declined to Rp.165.0 billion in 2011 declined again to Rp. 160.0 billion in 2012 and projected to go on rising by at least 5% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 6.5 billion and the company has an estimated total net worth of at least Rp. 120.0 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.  

 

      Since June 2012, the Company’s management is headed by Mr. Takeshi Fujioka (47), a professional manager of Japan with broad experience in chemicals products trading and processing. In his daily activities, he is assisted by six directors namely Mr. Kazuo Kudo (59), Mr. Gustav Afdhol Husein (58), Mr. Yoshiki Sugiura (51), Mr. Ignatius Robby Sani (57), Mr. Ridwan Sjahjadi (53) and Mr. Etsuo Sawada (53).   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.

 

Considering the operation of P.T. DAC declined in the last three years and 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.54.88

UK Pound

1

Rs.83.65

Euro

1

Rs.70.57

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.