MIRA INFORM REPORT

 

 

Report Date :

22.04.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. A SCHULMAN PLASTICS

 

 

Registered Office :

Desa Ngerong Km. 39, (Jl. Raya Gempol Km. 39), Gempol 67155, Pasuruan, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

15.07.1996

 

 

Com. Reg. No.:

No. AHU-AH.01.10-21734

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Thermoplastic Compound Industry

 

 

No. of Employees

140

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% 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 also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices

Source : CIA

 

 

 


BASIC SEARCH

 

Name of Company :

P.T. A SCHULMAN PLASTICS

 

A d d r e s s :

Head Office & Factory

Desa Ngerong Km. 39

(Jl. Raya Gempol Km. 39)

Gempol 67155, Pasuruan

East Java

Indonesia

Phones             - (62-343) 854 240 (hunting)

Fax                   - (62-343) 854 238

E-mail               - schulman@rad.net.id

Land Area         - 2.7 hectares

Building Space  - 1.0 hectares

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

15 July 1996

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a.  No. C2-658.HT.01.01.TH.1997

      Dated 29 January 1997

  b.  No. AHU-93758.AH.01.02.TH.2008

      Dated 5 December 2008

  c.  No. AHU-AH.01.10-21734

      Dated 11 July 2011

 

Company Status :

Foreign Investment Company (PMA)

 

Permits by the Government Department :

  a.  The Department of Finance

      NPWP No. 01.071.764.3-052.000

  b. The Capital Investment Coordinating Board

      - No. 283/I/PMA/1996

         Dated 03 April 1996

      - No. 236/II/PMA/2001

         Dated 21 September 2001

 

  c.  The Department of Industry and Trade

      No. 548/T/Industri/2000

      Dated 31 August 2000

 

Holding Companies :

a. A SCHULMAN INTERNATIONAL Inc., of the USA (Investment Holding)

b. PT. PRIMA POLICON INDAH of Indonesia (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - US$. 5,000,000.- (Rp 11,690,000,000.-)

Issued Capital                                  - US$. 3,500,000.- (Rp   8,183,000,000.-)

Paid up Capital                                - US$. 3,500,000.- (Rp   8,183,000,000.-)

 

Shareholders/Owners :

a. A SCHULMAN INTERNATIONAL Inc.   - US$. 2,275,000.- (65%)

    Address : Akron, Ohio

                    USA

b. PT. PRIMA POLICON INDAH                - US$. 1,225,000.- (35%)

    Address : Jl. Raya WAru No. 1

                    Sidoarjo, East Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Thermoplastic Compound Industry

 

Production Capacity :

Thermoplastic Compound     - 25,000 tons p.a.

 

Total Investment :

a. Equity Capital                  - US$.   3.5 million

b. Reinvested Profit              - US$.   2.0 million

c. Loan Capital                    - US$. 12.7 million

d. Total Investment               - US$. 18.2 million

 

Started Operation :

1998

 

Brand Name :

A SCHULMAN PLASTIC

 

Technical Assistance :

A Schulman Plastic International Inc., of the USA

 

 

 

Number of Employee :

140 persons

 

Marketing Area :

a. Locals    - 70%

b. Export     - 30%

 

Main Customers :

a. Plastic Bag Industries

b. Overseas buyers in Singapore, Malaysia, Japan, etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Hexa Indonesia

b. PT. Nippisun Indonesia

c. PT. Polypackindo Uttama

d. PT. Taralon Polyalloy

e. PT. S-IK Indonesia

f.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   CITIBANK N.A.

      Jl. Basuki Rahmat No. 86

      Surabaya, East Java

      Indonesia

b.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Palem Raya

      Sidoarjo, East Java

      Indonesia

c.   ABN AMRO Bank N.A.

      Jl. Pemuda No. 54

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – US$. 35.0 million

2011 – US$. 37.8 million

2012 – US$. 41.2 million

2013 – US$. 45.0 million

 

Net Profit (estimated) :

2010 – US$. 2.4 million

2011 – US$. 2.6 million

2012 – US$. 2.8 million

2013 – US$. 3.1 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Frans Cornelis Anna Cornelis AKA

                                                        Frans Corneelanna Cornelis

Directors                                         - a. Mr. Jonathan Francis Vear

                                                        b. Mr. David Claude Minc

 

Board of Commissioners :

President Commissioner                   - Mr. Derek Roy Bristow

Commissioner                                 - Mr. Kindarto Kohar

 

Signatories :

President Director (Mr. Frans Corneis Anna Cornelis) or one of the Directors (Mr.Jonathan Francis Vear or Mr. David Claude Minc) which must be approved by Board of Commissioners

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit should be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

 

      P.T. A. SCHULMAN PLASTICS (P.T. ASP) was established in July 1996 with an authorized capital of US$ 5,000,000.- issued and paid up capital of US$ 3,500,000.- The founding shareholders are P.T. PRIMA POLICON INDAH a  private company of Indonesia (35%) and A. SCHULMAN INTERNATIONAL INC., of the USA (65%).  The Deed of establishment has been approved by the Minister of Justice of the Republic of Indonesia through its Decision Letter No. C2-658.HT.01.01.TH.1997 dated January 29, 1997.   The articles of association of the company have frequently been changed.  According to notarial deed of Notary Dyah Ambarwaty Setyoso, SH., No. 26 dated July 16, 2008 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-93758.AH.01.02.Tahun 2009 dated December 5, 2008.   Most recently by Notarial Deed No. 74 dated April 28, 2011 made by Notary Siti Nurul Yuliami, SH., the company board of director and commissioner was changed.  The amendment to deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-AH.01.10-21734 dated July 11, 2011.

 

      We observe that P.T. PRIMA POLICON INDAH (local partner of the company) is a private company is controlled by Mr. Kindarto Kohar and his family members. Mr. Kohar is also the founder and majority owner of the PANGGUNG Group, a medium-sized company group in the country.

 

      P.T. ASP operates under Foreign Investment (PMA) facilities licensed by Capital Investment Coordinating Board (BKPM) in the thermoplastic compound industry, managing a plant located on some 2.7 hectares landsite at Jalan Raya Gempol Km. 39, Pandaan, Desa Ngerong, Gempol, Pasuruan (East Java). The plant is licensed to have a production capacity of 15,000 tons of thermoplastic compound per year. Trial operation started in January 1997 and commercially in February 1998 with investment of US$ 14.0 million coming from company's capital of US$3.5 million and the rest from loan. In September 2001 the company acquired an expansion permit to increase production capacity of 10,000 tons thermoplastic compound per year with an investment of US$ 4.2 million.

 

      Mr. Fajar, an administrative staff of the company said that most of basic materials like plastic resin are imported from the USA, Belgium, Japan, etc. and the other is local product. He went on to say that some 70% of the products are marketed locally among plastic bag industries and the other 30% is exported to Singapore, Malaysia, Japan and other countries.  We note that P.T. ASP is classified as a medium sized company of its kind in the country of which the operation has been growing in the last three years.

 

      In general we noticed that the domestic market demand for thermoplastic compound still increase by about 6% to 7% per annum in the last five years. This increase is closely related to the growth of plastic products industries in the country.  Indonesia with a population of about 240 million people represents the very potential market for plastic products and equipments.  Meanwhile, competition is very tight, because so many companies in the country are engaged in the thermoplastic compound industry.  Business position of P.T. ASP is quite well for it has controlled many customers and a wide marketing network at home and abroad.

 

      The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly. P.T. ASP’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover in 2011 amounted to US$. 37.8 million increased to US$. 41.2 million in 2012 to US$. 45.0 million in 2013 and estimated it will be higher by at least 8% in 2014. The operation in 2013 yielded a net profit at least US$. 3.1 million and the company has a total net worth of US$ 15.0 million.   P.T. ASP is likely to be supported by a financially strong and healthy foreign partner. So far, we have never heard of the company having been black listed by the Central Bank (Bank Indonesia). Besides, the company usually pays its debts punctually to suppliers.

 

      The management of P.T. ASP is headed by Mr. Frans Cornelis Anna Cornelis AKA Frans Corneelana Cornelis (54) as President Director.  He is a professional manager from Belgium with 20 years experience in thermoplastic compound industry and trade.  In his daily activities, he is assisted by two directors namely Mr. Jonathan Francis Vear (48) and Mr. David Claude Minc (66), and also a number of professional staff, having maintained a wide business relation with private businessmen at home and abroad as well as with government sector. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.  

 

       P.T. ASP is appraised to be good for business transaction.  However, in view of the 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.60.71

UK Pound

1

Rs.102.04

Euro

1

Rs.83.76

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

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.