MIRA INFORM REPORT

 

 

Report Date :

23.07.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. DALZON CHEMICALS INDONESIA

 

 

Registered Office :

Ruko Cempaka Mas Block K No. 22, Sumur Batu, Jakarta Pusat, 10640

 

 

Country :

Indonesia

 

 

Date of Incorporation :

26.03.2003

 

 

Com. Reg. No.:

No. AHU-AH.01.10-08100

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Engaged in Trading, Import and Distribution of Pesticides Formulation such as Herbicides, Insecticides & Fungicides

Engaged in Producing Pesticide products consists of Insecticides (Alcove, Basma, Vertig, Predict, Jupiter, Dafat, Lanidor and Hypolax brand), herbicides (Best Up, Topex, Bang, Haitek, Delopir, Almarin, Dironex, Pointer, Maxitol and Benson brand) and fungicides (Damazeb, Danvil and Medulla brand)

 

 

No of Employees :

128

 

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

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

 

Name of Company

 

P.T. DALZON CHEMICALS INDONESIA

 

 

company Address

 

Head Office

Ruko Cempaka Mas Block K No. 22

Sumur Batu

Jakarta Pusat, 10640

Indonesia

Phone               - (62-21) 42900075 (Hunting)

Fax.                  - (62-21) 42900355

Building Area     - 3 storey

Office Space      - 150 sq. meters

Region              - Commercial

Status               - Rent

 

Pesticides Formulation Factory

Jl. Raya Tega Gede,

Bangkongreang, Wangunharja

Cikarang, Bekasi 17520

West Java

Indonesia

Phone               - (62-21) 89836290-1

Fax.                  - (62-21) 89836292

Land Area         - 15,200 sq. meters

Building             -   8,900 sq meters

Region              - Industrial Zone

Status               - Rent

 

 

Date of Incorporation

 

26 March 2003

 

 

Legal Form

 

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

 


Company Reg.No.

 

The Ministry of Law and Human Rights

a. No. C-08630 HT.01.01.TH.2003

    Dated 22 April 2003

b. No. AHU-89128.AH.01.02.Tahun 2008

    Dated 21 November 2008

c. No. AHU-AH.01.10-06828

    Dated 22 March 2010

 

d. No. AHU-AH.01.10-08100

    Dated 04 March 2014

 

 

Company Status

 

National Private Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 02.273.500.5-027.000

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp. 10,000,000,000.-

Issued Capital    - Rp.   3,500,000,000.-

Paid up Capital  - Rp.   3,500,000,000.-

 

Shareholders/Owners :

a. Mr. Daryanto Wijaya                                    - Rp. 1,750,000,000.- (50%)

   Address : Cempaka Putih Tengah XVII F21

                   Jakarta Pusat

                   Indonesia

b. Mr. Nirmala Wijaya                          - Rp.    700,000,000.- (20%)

   Address : Cempaka Putih Tengah 26-B /77

                   Jakarta Pusat

                   Indonesia

 b. Mrs. Jaanya Wijaya Bhojwani        - Rp. 1,050,000,000.- (30%)

   Address : Cempaka Putih Tengah 26-B /77

                   Jakarta Pusat

                   Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Trading, Import and Distribution of Pesticides Formulation

b. Pesticides Formulation Industry

 

Production Capacity :

On the order basis

 

Total Investment :

a. Equity Capital            - Rp. 3.5 billion

b. Loan Capital              - Rp. 2.5 billion

c. Total Investment         - Rp. 6.0 billion

 

Started Operation :

June 2003

 

Brand Name :

Dalzon Chemicals

 

Technical Assistance :

None

 

Number of Employee :

128 persons

 

Marketing Area :

Domestic    - 100 %

 

Main Customer :

State Owned Plantation and private plantation

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Petrokimia Gresik

b. PT. Dupont Agricultural Products

c. PT. Fajarpurnama Pratama Inti

d. PT. Dow Agro Sciences Indonesia

 

Business Trend :

Growing

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. P.T. Bank DANAMON INDONESIA Tbk

    Rukan ITC Cempaka Mas Blok B No. 7

    Jl. Letjen Suprapto, Jakarta Pusat

    Indonesia

b. P.T. Bank CENTRAL ASIA Tbk

    Jalan Suprapto No. 30 F

    Jakarta Pusat

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

The company has involved in a dispute with International Biesterfeld GmbH of Germany in the case of a purchase agreement of pesticide chemicals.  South Jakarta District Court ruled that the case was won by PT. DCI, and Biesterfeld GmbH parties are required to pay compensation to PT. DCI of Rp. 4.25 billion in June 2011.

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 53.0 billion

2010 – Rp. 60.0 billion

2011 – Rp. 66.5 billion

2012 – Rp. 72.0 billion

2013 – Rp. 78.0 billion

 

Net Profit (Loss) :

2009 – Rp. 3.4 billion

2010 – Rp. 3.9 billion

2011 – Rp. 4.8 billion

2012 – Rp. 5.7 billion

2013 – Rp. 6.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

Director                    - Mr. Daryanto Wijaya

 

Board of Commissioners :

Commissioner          - Mr. Nirmala Wijaya

 

Signatories :

Director (Mr. Daryanto Wijaya) which must be approved by board of commissioner (Mr. Nrimala Wijaya)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. DALZON CHEMICALS INDONESIA (P.T. DCI) was established in Jakarta on March 26, 2003 with an authorized capital of Rp. 1,000,000,000.- issued capital of Rp. 500,000,000.- entirely paid up. The founding shareholders are Mr. Daryanto Wijaya and his son Mr. Paras Wijaya, an Indonesian business family of Chinese extraction. The deed of establishment was approved by the Minister of Law and Human Rights through its Decision Letter No. C-08630 HT.01.01.TH. 2003, dated April 22, 2003.   The articles of association of the company have frequently been revised.  In 2010 based on notary deed of Ms. Titik Irawati Sugianto, SH., No. 90 dated 23 February 2010, Mr. Paras Wijaya pulled out and the whole shares are sold to Mr. Nirmala Wijaya.  Concurrently the authorized capital was raised to Rp. 10,000,000,000.- of which Rp. 3,500,000,000.- was issued and fully paid up. Since the time, the shareholders of the company are Mr. Daryanto Wijaya (50%) and Mr. Nirmala Wijaya (50%).  The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-89128 AH.01.02.Tahun 2008 dated November 21, 2008 and No. AHU-AH.01.10-06828 dated March 22, 2010.

 

Most recently by notary deed of Yulita Harastiarti, SH., dated January 2, 2014 Mr. Nirmala Wijaya sells 30% stakes in P.T. DCI to Mrs. Jaanya Wijaya Bhojwani. Since then, shareholders of P.T. DCI are Mr. Daryanto Wijaya (50%), Mr. Nirmala Wijaya (20%) and Mrs. Jaanya Wijaya Bhojwani (30%). The amendment to Deed approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-08100 dated March 4, 2014.


P.T. DCI has been in operation since June 2003 in trading, import and distribution of pesticides formulation. The pesticide formulation products such as herbicides, insecticides & fungicides are imported from China and India. All the company's production is marketed in the country to farmers in East Java, Central Java, West Java, state owned enterprises plantation, private plantation companies, the government an other parties.  At the end of 2004, P.T. DCI expand its business by producing Pesticide products consists of Insecticides (Alcove, Basma, Vertig, Predict, Jupiter, Dafat, Lanidor and Hypolax brand), herbicides (Best Up, Topex, Bang, Haitek, Delopir, Almarin, Dironex, Pointer, Maxitol and Benson brand) and fungicides (Damazeb, Danvil and Medulla brand).  Mr. Daryanto Wijaya, director of the company disclosed that the whole product has been registered at Department of Agricultural (DEPTAN/Departemen Pertanian). He went on to say that the whole products are also sold through shop selling agricultural chemical materials. We observed that P.T. DCI 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.

 

We have noticed that the demand for pesticide products had increased some 10% to 11% per annum in the last five years in line with the growth of plantation and agricultural sector industries, forestry and others.  In the coming years, the growth rate of demand is estimated at about 6% to 7% per annum. The present market situation for agricultural products is very competitive for a large number of similar companies operating in the country. Meanwhile, competition is quite heavy in the export import of agricultural products with many companies now doing business in this field in Indonesia. We consider P.T. DCI to be in a quite favorable position for having already got hold of a steady clientele in the country.

 

Until this time P.T. DCI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.  We have checked to Department of Trade and Industry and found that no financial statement has been reported. The management of P.T. DCI is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated that total sales turnover of the company in 2009 amounted to Rp. 53.0 billion increased to Rp. 60.0 billion in 2010 rose again to Rp. 66.5 billion in 2011. The operation in 2011 yielded an estimated net profit of at least Rp. 4.3 billion and the company has an estimated total networth of at least Rp. 35.0 billion.  So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

In October 2010, P.T. DCI has involved in a dispute with International Biesterfeld GmbH of Germany in the case of a purchase agreement of pesticide chemicals.  South Jakarta District Court ruled that the case was won by PT. DCI, and Biesterfeld GmbH parties are required to pay compensation to PT. DCI of Rp. 4.25 billion in June 2011.

 

Until this time PT.  DCI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.  We have checked to Department of Trade and Industry and found that no financial statement has been reported.  P.T. DCI’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated that total sales turnover of the company in 2011 amounted to Rp. 66.5 billion increased to Rp. 72.0 billion in 2012 and rose again to Rp. 78.0 billion in 2013.  The operation in 2013 yielded an estimated net profit of at least Rp. 6.2 billion.  It is estimated the company has an estimated total assets at least Rp. 50.0 billion.  It is projected that total sales turnover of the company will increase at least 6% in 2014.  So far we have never heard that the company registered with the black list of Bank of Indonesia (Central Bank).

 

The company’s management is led out by Mr. Daryanto Wijaya (63) as Director, a businessman who experienced for more than 15 years in the field of trading, import and distribution of pesticide products.  In daily activities, he is assisted by his younger brother Mr. Nirmala Wijaya (62) as Commissioner. We observed that management’s reputation in said business is fairly good. The company has had wide relation in the realm of the private businessmen inside and outside the country. Their relation with the government is fairly good. So far, we have never heard that the company’s management involved in the business malpractices or detrimental cases that settled in the country.  The company has not registered with the black list of Bank of Indonesia.

 

P.T. DCI is sufficiently fairly good for business transaction. However, in view of the political situation in the country is warming we recommend to treat prudently in extending a loan to the company.




 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.23

UK Pound

1

Rs.102.86

Euro

1

Rs.81.44

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MNL

 

 

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.