MIRA INFORM REPORT

 

 

Report Date :

18.08.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. INDO RAYA KIMIA

 

 

Registered Office :

Kawasan Industri Kujang Cikampek Jalan Jend. A. Yani No. 39 Kalihurip, Ciampel  Cikampek, 41373 West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

January, 2003

 

 

Com. Reg. No.:

No. AHU-AH.01.10-38316

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Specialty Chemical Manufacturing

 

 

No. of Employees

94 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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Indonesia

A2

A2

 

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, 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. INDO RAYA KIMIA

 

A d d r e s s :

Head Office & Factory

Kawasan Industri Kujang Cikampek

Jalan Jend. A. Yani No. 39

Kalihurip, Ciampel 

Cikampek, 41373

West Java

Indonesia

Phones             - (62-264) 317901 (Hunting)

Fax                   - (62-264) 317916

E-mail               - sks@indorayakimia.com

Land Area         - 60,000 sq. meters

Building Space  - 12,500 sq. meters

Region              - Industrial Estate

Status               - Rent

 

Date of Incorporation :

27 November 2002

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-01020.HT.01.01.TH.2002

Dated 17 January 2002

- No. AHU-49555.AH.01.02.TH.2008

Dated 11 August 2008

- No. AHU-AH.01.10-38316

Dated 22 July 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.165.761.4-408.000

 

The Capital Investment Coordinating Board

- No. 825/I/PMA/2002

Dated 25 November 2002

- No.27/III/PMA/2005

Dated 13 January 2005

 

Related Company :

A Member Company of the ADITYA BIRLA or BIRLA INDONESIA Group

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          : US$ 3,000,000.-

Issued Capital    : US$ 1,000,000.-

Paid up Capital  : US$ 1,000,000.-

 

Shareholders/Owners :

a. P.T. INDO-BHARAT RAYON                                                              - US$ 400,000.-

    Address : Menara Batavia, 16th Floor

                    Jl. K.H. Mas Mansyur Kav. 126

                    Kelurahan Karet, Kecamatan Tanah Abang

                    Jakarta Pusat

                    Indonesia

b. RAMA TRADING CO., LTD.                                                               - US$ 300,000.-

    Address : 886/160-1 Mahatun Plaza Building Phloen

                    Chit Road Lumpini, Pathumwan, Bangkok

                    Thailand

c. OM FINANCIAL INC.                                                                         - US$ 150,000.-

    Address : Road Town, Tortola

                    British Virgin Island

d. ASSEAU COMPANY LIMITED                                                            - US$ 150,000.-

    Address : Road Town, Tortola

                    British Virgin Island

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Specialty Chemical Manufacturing

 

Production Capacity :

Carbon Disulfide             - 50,000 tons p.a.

 

Total Investment :

a.         Equity Capital                - US$ 1.0 million

b.         Loan Capital                  - US$ 3.0 million

c.         Total Investment - US$ 4.0 million

 

Started Operation :

January 2003

 

Brand Name :

Indo Raya Kimia

 

Technical Assistance :

None

 

Number of Employee :

94 persons

 

Marketing Area :

Local                - 75%

Export               - 25%

 

Main Customer :

Viscose Rayon Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. EKA CHEMICALS INDONESIA

b. P.T. INDO BHARAT RAYON

c. P.T. SOUTH PACIFIC VISCOSE

d. P.T. TOBA PULP LESTARI Tbk

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. P.T. Bank MANDIRI Tbk

    Jalan M.H. Thamrin No. 5

    Jakarta Pusat

    Indonesia

b. CITIBANK, Jakarta Branch

              Landmark Building

              Jalan Jend. Sudirman No. 1

              Jakarta 12910

    Indonesia

c. Hongkong and Shanghai Banking Corp., Ltd.

              World Trade Center, 3rd Floor

              Jalan Jend. Sudirman Kav. 29-31

              Jakarta Selatan

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 181.0 billion

2012 – Rp. 192.0 billion

2013 – Rp. 205.0 billion

 

Net Profit (estimated) :

2011 – Rp. 11.0 billion

2012 – Rp. 12.1 billion

2013 – Rp. 13.3 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Sunay Bhagwant Kamat

Directors                                   - a. Mr. Ashok Saboo

                                                  b. Mr. Waris Jais

                                                  c. Mr. Chaplendu Kumar Dutta

                                                  d. Mr. Shibnath Agarwalla

 

Board of Commissioners :

President Commissioner - Mr. Halim Setiono

Commissioners                          - a. Mr. Ajay Kumar Gupta

                                                 b. Mr. Hari Krishna Agarwal

 

Signatories :

President Director (Mr. Sunay Bhagwant Kamat) or one of the Directors (Mr. Ashok Saboo, Mr. Waris Jais, Mr. Chaplendu Kumar Dutta or Mr. Sibnath Agarwalla) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

 

OVERALL PERFORMANCE

 

P.T. INDO RAYA KIMIA (P.T. IRK) was established in Karawang, West Java in November 2002 with the authorized capital of US$ 3,000,000 of which US$ 1,000,000 was issued and fully paid up. The founding shareholders of the company are P.T. INDO BHARAT RAYON of Indonesia, GANARIA INTERNATIONAL and OM FINANCIAL INC, both of Switzerland. The articles of association of the company have frequently been revised. In July 2005 into the company entered a new shareholder ASSEAU COMPANY LIMITED of Switzerland. With this time the composition of its shareholders has been changed to become P.T. INDO-BHARAT RAYON (40%), RAMA TRADING CO., LTD., of Thailand (30%), OM FINANCIAL INC., of British Virgin Island (10%) and ASSEAU COMPANY LIMITED of British Virgin Island (10%). The latest according to the latest revision of notary deed Mr. Ashoya Ratam, SH., K.Kn., no. 118 dated 22 July 2013 the company board of director and the board of commissioner had been restructured to lead and runs of the company’s operation. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-38316 dated September 12, 2013.

 

The venture is a member of the ADITYA BIRLA Group or BIRLA INDONESIA Group, a large business group based in India, and in Indonesia the Group set up several companies like P.T. INDO LIBERTY TEXTILE, P.T. SUNRISE BUMI TEXTILES, P.T. ELEGANT TEXTILE INDUSTRY three engaged in spinning mills and P.T. INDO BHARAT RAYON in viscose rayon fiber and acrylic fiber industry.

 

P.T. IRK obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with organic chemical industry producing special chemical materials. The company has been in operation since January 2003 by taking over all assets of P.T. AKZO NOBEL SATINDO. Its plant is located in Kujang Cikampek Industrial Estate, Jalan Jend. Ahmad Yani No. 39, Ciampel, Karawang, West Java on a land of 60,000 square meters. The plant annually produces 40,000 tons of carbon disulfide absorbing an investment of US$ 4.0 million coming from own capital of US$ 1.0 million and the rest from loans.

 

P.T. IRK is a leading producer of carbon disulfide in Asia Pacific using the state of the art and environment friendly technology from AKZO NOBEL. Acquired by the ADITYA BIRLA Group in January 2003, this plant is one of the best methane gas-based plants in the world and is designed with a highly sophisticated instrumentation, control and monitoring system to ensure reliable, safe and environment responsible operations. The IRK plant has a capacity of 40,000 ton per annum, and caters to the domestic demand as well as exports to countries across the globe.

 

Carbon disulfide products are used as solvents not only by viscose rayon industries but also by rubber, pesticide and carbon tetrachloride industries. The supporting basic materials such as sulfur are mostly using local products of P.T. PERTAMINA of Indramayu Unit, West Java and some other are imported. Some 75% of the company products are locally marketed especially to viscose rayon industries including P.T. SOUTH PACIFIC VISCOSE, P.T. TOBA PULP LESTARI Tbk, P.T. INDO BHARAT RAYON and other while the rest of 25% is exported to South Korea, Australia, Thailand, Malaysia, India and South Africa. The operation of P.T. IRK has been running smoothly and growing in the last three years.

 

Generally, demand for carbon disulfide (carbon bi-sulfide) has kept on increasing by 7% to 9% per annum in the last five years having close relation with the growing viscose rayon industries as consumers. There are only 3 carbon disulfide producers with annual national production capacity of 83,550 tons namely P.T. INDO RAYA KIMIA with annual production capacity of 50,000 tons, P.T. INDO BHARAT RAYON of 25,400 tons and P.T. SOUTH PACIFIC VISCOSE of 18,150 tons. The carbon disulfide products are widely used by viscose rayon industries in the country including P.T. INDO BHARAT RAYON, P.T. SOUTH PACIFIC VISCOSE and P.T. TOBA PULP LESTARI Tbk. The demand for carbon disulfide is estimated to be rising by at least 6% in the coming five years. The competition is less tight on account of only three carbon disulfide producers operating in the country. The two large sized disulfide producers in the country are P.T. IRK and P.T. IBR, both are members of the ADITYA BIRLA Group of BIRLA INDONESIA Group. The business position of P.T. IRK is favorable for having established regular customers and wide marketing networks in the country.

 

Until this time P.T. IRK has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. IRK is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated that total sales turnover of the company in 2011 amounted to Rp. 181.0 billion rose to Rp. 192.0 billion in 2012 increased to Rp. 205.0 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 13.3 billion and the company has an estimated total networth of at least Rp. 85.0 billion. We observe that P.T. IRK is supported by foreign partner with has financially strong and sound behind it. 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. IRK is led by Mr. Sunay Bhagwant Kamat (58) a professional managers of India extraction with broad experience in industry and trading of carbon disulfide. 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. 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. INDO RAYA KIMIA is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.06

UK Pound

1

Rs.101.84

Euro

1

Rs.81.56

                

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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.