MIRA INFORM REPORT

 

 

Report Date :

06.11.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. PUNJ LLOYD INDONESIA

 

 

Registered Office :

Wisma GKBI, 17th Floor Suite 1708 Jalan Jend. Sudirman No. 28 Jakarta Pusat, 10210

 

 

Country :

Indonesia

 

 

Date of Incorporation :

28.02.1997

 

 

Com. Reg. No.:

No. AHU-AH.01.10-41242

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engineering, Procurement and Contracting Services

 

 

No. of Employees :

65 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 :

Moderate

 

 

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 – 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

 


BASIC SEARCH

 

Name of Company :

P.T. PUNJ LLOYD INDONESIA

 

Address:

Head Office

Wisma GKBI, 17th Floor Suite 1708

Jalan Jend. Sudirman No. 28

Jakarta Pusat, 10210

Indonesia

Phones             - (62-21) 5785 1944 (Hunting)

Fax                   - (62-21) 5785 1952

E-mail               - info@pt.pli.com

Website            - http://www.punjlloyd.com

Building Area     - 28 storey

Office Space      - 200 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

28 February 1997

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. AHU-AH.01.10-15340

            Dated 22 June 2010

-           No. AHU-58127.AH.01.02.TH.2012

            Dated 14 November 2012

-           No. AHU-AH.01.10-41242

            Dated 22 November 2012

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.071.978.9-058.000

 

The Capital Investment Coordinating Board

-           No. 120/I/PMA/1997

            Dated 27 February 1997

-           No. 561/III/PMA/2003

            Dated 26 May 2003

-           No. 69/III/PMA/2004

            Dated 29 January 2004

 

Related Companies :

a. P.T. MEINDO ELANG INDAH (Oil and Gas Contracting Services and Investment Holding)

b. P.T. SEMPEC INDONESIA (Engineering Contracting Services)

c. The PUNJ LLOYD Group, India

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          : US$ 4,000,000.-

Issued Capital                : US$ 3,888,055.-

Paid up Capital              : US$ 3,888,055.-

 

Shareholders/Owners :

a. PUNJ LLYOD LIMITED                                                          - US$ 3,885,722.-

    Address : Mumbai

                    New Delhi, India

b. Mr. Atul Punj                                                                        - US$        2,333.-

    Address : 10 Prithviraj Road

                    New Delhi, 110011

                    India

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Engineering, Procurement and Contracting Services

 

Production Capacity :

None

 

Total Investment :

Owned Capital   - US$ 4.0 million

 

Started Operation :

1998

 

Brand Name :

Punj Lloyd Indonesia

 

Technical Assistance :

Punj Llloyd Limited, India

 

Number of Employee :

65 persons

 

Marketing Area :

Local    - 100%

 

Main Customer :

Oil and Natural Gas Exploration and Production

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. AMEC BERCA INDONESIA

b. P.T. BECTHEL INDONESIA

c. P.T. MCDERMOTT INDONESIA

d. P.T. SAIPEM INDONESIA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

CITIBANK N.A.

Bapindo Plaza Office Tower

Jalan Jend. Sudirman Kav. 54-55

Jakarta Selatan

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 375.0 billion

2011 – Rp. 386.0 billion

2012 – Rp. 397.0 billion

2013 – Rp. 198.0 billion (January – June)

 

Net Profit (estimated) :

2010 – Rp. 29.5 billion

2011 – Rp. 31.0 billion

2012 – Rp. 32.0 billion

2013 – Rp. 13.6 billion (January – June)

 

Payment Manner :

Delayed to P.T. BAKRIE CONSTRUCTION INDONESIA worth US$ 799,600 (Default)

 

Financial Comments :

Weak

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Manoj Soni

Director - Mr. Ashok Kumar Singh

 

Board of Commissioners :

Commissioner   - Mr. Atul Punj

 

Signatories :

President Director (Mr. Manoj Soni) or the Director (Mr. Ashok Kumar Singh) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Prudent

 

Credit Risk :

High

 

Credit Recommendation :

Credit is not recommended

 

Proposed Credit Limit :

C.O.D.

 

 

OVERALL PERFORMANCE

 

P.T. PUNJ LLOYD INDONESIA (P.T. PLI) was established in Jakarta on February 28, 1997 with the authorized capital of US$ 1,000,000 issued and paid up capital of US$ 250,000. The founding shareholders of the company are PUNJ LLOYD Sdn. Bhd., of Malaysia and PUNJ LLOYD Ltd of India. The articles of association of the company have frequently been revised. In October 2002, the issued capital was raised to US$ 302,500 wholly paid up. Later, the issued capital was raised again to US$ 402,500 fully paid up and concurrently whole shares of the company were controlled by PUJN LLOYD Ltd and Mr. Vimal Kishore Kaushik of India.

 

 

Then in May 2003, Mr. Vimal Kishore Kaushik of India pulled out and replaced by PUNJ LLOYD SDN BHD of Malaysia. Then in June 2010 the authorized capital was raised to US$ 4,000,000 issued capital of US$ 3,888,055 entirely issued and paid up.

 

On the same occasion PUNJ LLOYD SDN. BHD., of Malaysia pulled out and replaced Mr. Atul Punj of India as new shareholder. With this development the composition of its shareholders has been changed to become PUNJ LLOYD LIMITED., of India (99.94%) and Mr. Atul Punj of India (0.06%). The revision of notary deed was made by Mr. Fardian, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-15340, dated June 22, 2010.

 

Then according to the latest revision of notary documents of Mala Mukti, SH., No. 14 dated 7 September 2012 the company board of director and the board of commissioner had been changed. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-41242 dated November 22, 2012.

 

P.T. PLI has been in operation since 1998 dealing with engineering procurement and contracting services including onshore & offshore pipe lines, infrastructure services, processing plant, engineering services, plant & facility management and power plant services. Mrs. Oka, a staff of the company, said that the company has carried out several projects especially in oil and gas. The projects having been done by the company include the Panaran pumping island pipe line of P.T. PERUSAHAAN GAS NEGARA. P.T. PLI together with its parent company PUNJ LLOYD Ltd., of India is the winner of tender of designing works, installation and testing of gas transmission line of Pagardewa – Labuhan Maringgai, a part of project of South Sumatra – West Java Phase II of 274 km long owned by P.T. PERUSAHAAN GAS NEGARA Tbk of which the development of the project has started at the end of 2006.

 

The Gulf Grissik Corridor Block in south Sumatra, the Gulf South Jambi Block and Santa Fe Jabung Block includes several gas fields with proven reserves. The Panaram Pumping pipeline was planned to transport natural gas to potential markets, Caltex in Duri and industries in Batam Island and to Singapore Power. The Panaran Pemping pipeline is a crucial link of the Grissik-Sakaran-Batam-Singapore pipeline. The pipeline was completed in 2003 and connects the Indonesian islands of Batam, Tanjung Kubu, Teluk Dalam, Lumba Besar and Pulao Pemping by a 31-km, 28-inch diameter onshore and offshore gas pipeline for PT. Perusahaan Gas Negara.

 

The other project are he offshore and onshore pipe lines for Tunu field development phase 9, process plant project of Peceko Development phase 4, both of TOTALPINAELF E & P INDONESIE; infrastructure project of Duri Steam flooding area 10 of P.T. CHEVRON PACIFIC INDONESIA and several other projects.

 

P.T. PLI together with other companies P.T. THIESS CONTRACTORS INDONESIA and P.T. ASTRATEL NUSANTARA are investors having passed pre-qualification test for developing Solo – Kertosono Toll Road of 162 km long. The three companies will be invited by the chairman of Toll Road Management Board (BPJT) for tender process of the development of that toll road. It is planned that the tender of Solo – Kertosono Toll Road will be divided into two packets namely Solo – Ngawi of 75 km long with an estimated investment of Rp. 3.93 trillion and Ngawi – Kertosono of 87 km long with an estimated investment of Rp. 4.56 trillion. 

 

The other projects completed by P.T. PLI are Tunu South Utility Platform (SUP) Deck TPIIS/EPSC5, Mahakam River, East Kalimantan owned by TOTAL E&P INDONESIE. TOTAL Tunu is a gas and condensate field located on East Kalimantan (Indonesia) on the the outer margin of the Mahakam delta, partially onshore in swamp areas and partially offshore in shallow waters. The main objective of the Phase 11 development is to maintain production whilst allowing for a decrease in the wellhead pressure from the current 25-30 barg to as low as 10 barg, with a corresponding reduction of the reservoir abandonment pressures.

 

The company constructed a swamp and near shore pipeline project from Pt. Bouygues Offshore for the owner, TOTAL E&P Indonesie. This project resulted in the company’s continued presence in Kalimantan, with TOTAL E&P Indonesie as the client. P.T. PLI has executed projects in the face of language barriers and cultural differences, which the company overcame by its policy of recruiting locals. Sometimes working through the populated villages and towns is a logistical challenge, both for men and machines. Challenges like inaccessibility of islands, environmentally sensitive mangrove forests, undulating terrain, rocky seabed with live coral reefs and granite rock, working in the busiest shipping route connecting Singapore and Indonesia, crossing a river through difficult terrain by horizontal directional drilling and constructing two terminal stations on hilltops involving 500,000 m3 of earthwork did not unnerve P.T. Punj Lloyd Indonesia. Interacting and working with the locals gave the Company valuable insight into the Indonesian work culture. P.T. Punj Lloyd Indonesia has created a permanent bank of trained local personnel, which is a rich valuable asset to us and has been deployed at our sites world-wide.

 

P.T. PLI also actively contributes towards community development by helping the locals. It has built a mosque and a school in a densely populated area along a pipeline route. Its commitment to establish a presence in the region has resulted in continued investment in construction and amphibian equipment. The equipment yard at Sungaipurun overhauls and repairs equipment and includes a jetty for small ships and barges. In 2008, P.T. MAKMUR SEJAHTERA WISESA a member company of P.T. ADARO ENERGI Tbk, appointed P.T. PLI and PUNJ LLOYD LTD., India, as contractor engineering, procurement & construction of power plant, and SIEMENS Industrial Turbomachinery S.R.O., of Czech Republic as supplier of steam turbine generator. Besides, P.T. PLI also acted as engineering, procurement and contractor for TOTAL E&P INDONESIE, CONOCOPHILIPS INDONESIA INC., P.T. PERUSAHAAN GAS NEGARA Tbk and other projects.

 

The on going project are the construction of onshore and offshore pipeline and oil & gas facilities Peciko Onshore Development Phase-4, East Kalimantan owned by TOTAL E&P INDONESIE; Panaran Pemping Gas Pipeline, EPC and Installation of 28 “dia, 30 km pipeline, also known as the Hoping Island Project, 10 km as laid in offshore in water depths up to 20 m and 7 kms in marchy and swamp area owned by P.T. PERUSAHAAN GAS NEGARA (Persero) Tbk. P.T. PLI is classified as a medium sized company of its kind in the country of which the operation has been growing slowly in the last three years.

 

Generally, demand for oil and gas equipment, piping systems, fittings, flanges, actuators, valves and other technical equipments had kept increasing by 8% to 10% per annum in the last five years in line with the growth of industrial sectors including oil and natural gas, chemical and petrochemical industry, LNG plant, oil refinery and other sectors requiring these equipments. It is projected that the demand will keep going up in five years to come. The competition is very tight on account of many similar companies operating in the country. Besides that the growing crude oil price started as from the middle of 1999 and constantly rising within 2007 has blown fresh air to Indonesian government and oil companies.

 

In the effort of stabilizing the world's crude oil price above US$ 90 per barrel in 2008 and sharply dropped to US$ 40 to US$ 100 per barrel in early 2012. Despite crude oil price problem, Indonesia has kept on attempting to increase its crude oil and natural gas production including natural gas. Details on production growth of Indonesian crude oil and natural gas as from 2000 to 2012 are pictured bellows.

 

Year

Petroleum

(000 barrels)

Gas

Gas (000 MSCF)

LNG (000 MMBTU)

LPG (MT)

2000

516,503

2,907,327

1,411,608

2,062,616

2001

490,145

2,803,034

1,257,446

2,190,120

2002

474,884

3,031,028

1,352,878

1,792,575

2003

420,995

3,142,605

1,347,349

1,921,757

2004

438,455

3,113,338

1,390,466

1,677,619

2005

387,698

3,036,195

1,338,782

1,581,727

2006

366,993

3,178,278

1,159,770

1,238,572

2007

357,143

2,949,506

1,258,951

1,671,715

2008

357,501

3,136,657

1,093,435

1,800,383

2009

346,312

3,023,944

   970,769

1,560,929

2010

341,228

3,291,912

   1,017,216

2,538,106

2011

332,752

4,811,814

1,373,829

n.a.

2012*

238,946

2,396,952

890,030

n.a

Source: Statistic of Central Board 2012* (January – September)

 

Until this time P.T. PLI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. PLI 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. 375.0 billion rose to Rp. 386.0 billion in 2011 increased to Rp. 397.0 billion in 2012. As from January 2013 the sales has amounted at Rp. 198.0 billion with a net profit of Rp. 13.6 billion.

 

However P.T. PLI has facing financial difficulties due to increased operating costs. Based on the information that P.T. PLI still has debts to P.T. Bakrie Construction Indonesia US$ 799.600 which is due in June 2012. Previous P.T. PLI installments promise to pay the entire debt, but until now P.T. PLI has not paid all the debts. P.T. Bakrie Construction Indonesia filed a bankruptcy petition against P.T. PLI through the Commercial Court, Central Jakarta. Bankruptcy petition was filed because P.T. PLI fails to pay its debts. But the case is still in the process of looking for hard evidence and the trial schedule has not been determined.

 

The management of P.T. PLI is headed by Mr. Manoj Soni (50) a professional manager of India with experience in engineering, procurement and construction services. Daily activity he is assisted by Mr. Ashok Kumar Singh (43) as director. 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. From the whole negative factor surrounding P.T. PUNJ LLOYD INDONESIA we recommend to stop any new proposed loan to the company.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.79

UK Pound

1

Rs.98.66

Euro

1

Rs.83.42

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.