MIRA INFORM REPORT

 

 

Report Date :

29.04.2014            

 

IDENTIFICATION DETAILS

 

Name :

PT. SMS SIEMAG METALLURGICAL SERVICES

 

 

Registered Office :

Kawasan Industri Krakatau Steel Jalan Raya Anyer – Cigading Kav.A-0/1 Cilegon, Banten Province

 

 

Country :

Indonesia

 

 

Date of Incorporation :

09.12.2013

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Industrial Services for a variety of specialized metal processing and metal products, and machinery repair services for special purposes.

 

 

No. of Employees

80

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

 

--

NB

New Business

--

 

Status :

New Company

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 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

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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

 

 

 


Company name and address

 

PT. SMS SIEMAG METALLURGICAL SERVICES

 

 

address

 

Head Office & Workshop 

Kawasan Industri Krakatau Steel

Jalan Raya Anyer – Cigading Kav.A-0/1

Cilegon, Banten Province

Indonesia

Phones         - (62-254) 315 699

F a x             - (62-254) 315 888

Land Area      - 4,400 sq. meters

Building Area  - 2,200 sq. meters

Region           - Industrial Zone

Status            - Rent

 

Date of Incorporation :

09 December 2013

 

Legal Form :

PT. (Perseroan Terbatas) or Limited Liability Company

 

Company Reg. No. :

The Ministry of Law and Human Right

No. AHU-65669.AH.01.01. Tahun 2013

Dated 13 December 2013

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

The Capital Investment Coordinating Board

No. 2297/1/IP/PMA/2013

Dated 09 December 2013

 

Related/affiliated Companies :

a. SMS SIEMAG AG (Investment Holding)

b. SMS SACK VERWALTUNGS GMBH (Investment Holding)

 

 

 

 

 

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - US$ 6,300,000.- (Rp. 75,348,000,000.-)

Issued Capital                - US$ 5,300,000.- (Rp. 63,388,000,000.-)

Paid up Capital              - US$ 5,300,000.- (Rp. 63,388,000,000.-)

 

Shareholders/Owners :

a.   SMS SIEMAG AG                             - US$ 5,247,000.- (99%)

      Address : Eduard-Schloemann- Strasse 4

                     D-40237 Duesseldorf

                     Germany                   

b.   SMS SACK VERWALTUNGS GMBH  - US$      53,000.- (  1%)

      Address : Eduard-Schloemann- Strasse 4

                     D-40237 Duesseldorf

                     Germany

     

     

BUSINESS ACTIVITIES

 

Lines of Business :

Industrial Services for a variety of specialized metal processing and metal products, and machinery repair services for special purposes.

 

Production Capacity :

None.

 

Total Investment :

Owned Capital   - US$ 5.3 million

 

Started Operation :

August 2014 (planned)

 

Brand Name :

SMS SIEMAG AG of Germany

 

Technical Assistance :

None

 

Number of Employee :

80 Persons (planned)

 

Marketing Area :

Local - 100% (planned)

 

Main Customer :

No Comment            

 

Market Situation :

Competitive

 

Main Competitors :

a. PT. CITRA GALVALINDO SUKSES MANDIRI

b. PT. PRIUK PERKASA ABADI

c. PT. REKASAYA PLATING

d. Etc.

 

Business Trend :

No Comment

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

  a.  PT. BANK CIMB NIAGA Tbk

      Jalan  S.A Tirtayasa No. 10

      Cilegon, Banten Province

      Indonesia

  b   PT. BANK BNP PARIBAS INDONESIA

      Menara BCA Grand Indonesia

      Jalan MH. Thamrin No. 1

      Jakarta 12920

      Indonesia

  c.  PT. BANK MANDIRI Tbk

      Jalan Raya Anyer No. 2

      Cilegon, Banten Province

      Indonesia

 

Auditor :

Internal Auditor.

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

None

 

Net Profit (estimated) :

None

 

Payment Manner :

No Comment

 

Financial Comments :

No Comment

 

 

KEY EXECUTIVES

 

Board of Management :

Director                            - Mr. Karel Eliza Hallatu

 

Board of Commissioner :

President Commissioner    - Mr. Pino Tese

Commissioner                  - a. Mr. Doug Allen Dunworth

                                         b. Mr. Christoph Roth

 

Signatories :

The Director (Mr. Karel Eliza Hallatu.) which must be approved by the President Commissioner (Mr. Doug Allen Dunworth) or one of the Commissioner (Mr. Dough Allen Dunworth) or (Mr. Christoph Roth)

 

 

CAPABILITIES

 

Management Capability :

Fairly good

 

Business Morality :

Fairly good

 

Credit Risk :

Above average

 

Credit Recommendation :

Credit should be extended under guarantee

 

OVERALL PERFORMANCE

 

P.T. SMS SIEMAG METALLURGICAL SERVICES (P.T. SMS SIEMAG) was established in Cilegon Banten Province on Notarial Deed No. 47 dated December 09, 2013 made by Notary Jimmy Tanamal, SH. Mkn. with an authorized capital of US$ 6,300,000 (Rp. 75,348,000,000.-) of which us$ 5,300,000 (Rp 63,388,000,000.-) was issued and fully paid up. The company was founded by SMS SIEMAG AG (99%) and SMS SACK VERWALTUNGS GMBH (1%), both of Germany. The Deed of establishment has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decision Letter No. AHU-65669.AH.01.01.TH.2013 dated December 13, 2013.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

      In accordance with article 3 (three) of the articles of association contained in the deed of establishment, the scope of activities of the Company is primarily in industrial services for a variety of specialized metal processing and metal products, and machinery repair services for special purposes. The Company’s registered office and factory located at Krakatau Steel Industrial Estate, Jalan Raya Anyer – Cigading Kav. A-0/1, Cilegon, Banten Province and the Company can open branch offices or representative offices at home and abroad.

 

      P.T. SMS SIEMAG was established within the framework of foreign investment (PMA), which has received permit from the Investment Coordinating Board (BKPM) with Number 2297/1/IP/PMA/2013 dated December 9, 2013, to be engaged in industrial services for a variety of specialized metal processing and metal products, and machinery repair services for special purposes.   The Company’s registered office and factory located at Krakatau Steel Industrial Estate, Jalan raya Anyer – Cigading Kav. A-0/1, Cilegon, Banten Province occupies a land area of ​​4,400 square meters. In addition the company will also provide metal coating, electroplating, dyeing, carving, hardening, polishing, welding, cutting and various special works against the goods of metal. P.T. SMS SIEMAG gets technological assistance from SMS SIEMAG AG of Germany.   Mr. Rinaldi, plant manager of the Company explained that presently, P.T. SMS SIEMAG is still under construction and its estimated will be operation in August 2014.   According to the plan the company's services will be used by steel making industries such as PT. Krakatau steel, PT. Gunung Garuda, PT. KHI Pipe Industry and others.  

 

      Generally, the demand for industrial services for a variety of specialized metal processing and metal products in the country had significantly rising by 8% to 10% per year in the last five years, in line with the growth of steel making industries, automotive industries, ship repairing and building, infrastructure sectors and others. But, as from October 2008, the demand growth for industrial services 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. The growth rate is now estimated at 5% to 7% per year. Market competition is very tight due to a large number of similar companies operating in the country.   We observed that since P.T. SMS SIEMAG establishment up to now the company it has never conducted any business activities.

 

      P.T. SMS SIEMAG has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.   We are difficult to assess the company's finances, because since the company establishment up to now the company it has never conducted any business activities.   But, the financial strength of this company was only US$.5,300,000.- which was a paid-up capital according to its notary deed.  The financial condition of the company strongly depends on the financial condition of its shareholders. PT. SMS is backed up by the SMS SIEMAG AG and SMS SACK VERWALTUNGS GMBH of Germany which has financially strong behind it.

 

      So far we have never heard that the company registered with the black list of Bank of Indonesia (Central Bank) or involved in the civil case that settled through the country court.

 

      The management of PT. SMS is led by Mr. Karel Eliza Hallatu (55) as director, a professional manager of Indonesia, which has a long experience in the field of industrial services for a variety of specialized metal processing and metal products. In his daily activities, he is assisted by Mr. Pino Tese (58) of Germany as President Commissioner, and Mr. Doug Allen Dunworth (46) of USA and Mr. Christoph Roth (43) of Germany, both as commissioner respectively. The management has maintained a wide relation with private businessmen at home and abroad as well as with government authorities.  So far, we did not hear that the company's management having been involved in the business malpractices.  Based on our whole observation, we may conclude that P.T. SMS is a new company having yet to be in operation commercially.

 

      Considering PT. SMS SIEMAG METALLURGICAL SERVICES having yet to be in operation, we recommend to treat prudently in business transaction and in extending a loan to the company.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.50

UK Pound

1

Rs.101.69

Euro

1

Rs.83.62

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.