MIRA INFORM REPORT

 

 

Report Date :

23.05.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. PHARMACEUTICAL PROCESSING INDUSTRIES TBK

 

 

Registered Office :

Gedung RNI, Jalan Denpasar Raya Kav. D III, Kuningan, Jakarta Selatan, 12950

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

21.06.1954

 

 

Com. Reg. No.:

No. AHU-AH.01.10-24623

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

Manufacturing of Pharmaceutical.

 

 

No. of Employees

565

 

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

 

Maximum Credit Limit :

US$ 2,500,000

Status :

Satisfactory 

Payment Behaviour :

Slow but correct

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. PHARMACEUTICAL PROCESSING INDUSTRIES Tbk

(P.T. PHAPROS Tbk)

 

A d d r e s s :

Head Office

Gedung RNI

Jalan Denpasar Raya Kav. D III

Kuningan

Jakarta Selatan, 12950

Indonesia

Phones             - (62-21) 5276263, 2523820, 2523830

Fax                   - (62-21) 5209381, 5202837

E-mail               - sekkorp@rni.co.id

Website            - http://www.ptphapros.co.id

Building Area     - 6 storey

Office Space      - 130 sq. meters

Region              - Commercial

Status               - Owned

 

Factory

Jalan Simongan 131

Semarang 50148

Central Java

Indonesia

Phones             - (62-24) 7607330, 7607325

Fax                   - (62-24) 7605133

Land Area         - 27,000 sq. meters

Building Area     - 25,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

a. 21 June 1954 as N.V. PHARMACEUTICAL PROCESSING INDUSTRIES

b. 1985 as P.T. PHARMACEUTICAL PROCESSING INDUSTRIES

c. 11 September 2000 as P.T. PHARMACEUTICAL PROCESSING INDUSTRIES Tbk

 

Legal Form :

P.T. Tbk (Perseroan Terbatas Terbuka) or Public Listed Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

-  No. C2-25456.HT.01.04.TH.1998

   Dated 31 October 1998

-  No. AHU-77832.AH.01.02.TH.2008

   Dated 24 October 2008

-  No. AHU-AH.01.10-24623

Dated 30 September 2010

 

Company Status :

Private National and Domestic Investment (PMDN) Company

 

Permit by the Government Department :

The Capital Investment Coordinating Board

No. 22/III/PMDN/1984

Dated 12 May 1984

The Department of Health

No. 64/PH/55/B

Dated 03 February 1955

 

Related Company :

A Member Company of the RNI Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 100,000,000,000.-

Issued Capital                                  : Rp.   84,000,000,000.-

Paid up Capital                                : Rp.   84,000,000,000.-

 

Shareholders/Owners :

a. P.T. RAJAWALI NUSANTARA INDONESIA         - Rp. 46,200,000,000.-

b. Public (more than 500 persons)                          - Rp. 37,800,000,000.-

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Pharmaceutical Manufacturing

 

Production Capacity :

a. Tablets                                        - 600,000,000 pieces p.a.

b. Dragees                                      - 650,000,000 pieces p.a.

c. Injections                                     -   16,500,000 pieces p.a.

d. Capsules                                     -   15,000,000 pieces p.a.

 

Total Investment :

Owned Capital                                 - Rp. 100.0 billion

 

Started Operation :

1955

 

Brand Name :

Phapros

 

Technical Assistance :

None

 

Number of Employee :

565 persons

 

Marketing Area :

Local    - 100%

 

Main Customer :

Hospitals, Drug Store, Dispensary

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. KALBE FARMA Tbk

b. P.T. INDOFARMA Tbk

c. P.T. KIMIA FARMA Tbk

d. P.T. DEXA MEDIKA

e. Etc.

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

    Jalan Kepodang No. 6-B

    Semarang, Central Java

    Indonesia

b. P.T. Bank CIM NIAGA Tbk

    Jalan Pemuda No. 21 B

    Semarang, Central Java

    Indonesia

c. CITIBANK N.A.

    Bapindo Plaza

    Jalan Jend. Sudirman Kav. 55-56

    Jakarta Selatan

    Indonesia

 

Auditor :

KAP Bernardi and Rekan

 

Litigation :

No litigation record in our database

FINANCIAL FIGURE

 

Annual Sales :

2010 – Rp. 433.2 billion

2011 – Rp. 470.7 billion

2012 – Rp. 529.7 billion

2013 – Rp. 521.6 billion

 

Net Profit :

2010 – Rp. 61.3 billion

2011 – Rp. 64.7 billion

2012 – Rp. 60.9 billion

2013 – Rp. 43.5 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Drs. Erlangga Tri Putranto, Akt

Directors                                         - a. Mr. Sutiyono, SE

                                                        b. Mr. Drs. Iswanto, Apt. MM

                                                        c. Mr. Herman Santoso, SE, MM

 

Board of Commissioners :

President Commissioner                   - Mr. Ir. Bambang Prijono Basoeki

Commissioners                                - a. Mr. Drs. Sugianto Umar Kasan, Akt

                                                        b. Mrs. Emmi Mintarsih, SE

                                                        c. Prof. dr. H. Fasli Jalal, Ph.D. SpGK

 

Signatories :

President Director (Mr. Drs. Erlangga Tri Putranto, Akt) or one of the Directors (Mr. Sutiyono, SE, Mr. Drs. Iswanto, Apt, MM or Mr. Herman Santoso, SE, MM.) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

Maximum Credit Limit :

US$ 2,500,000 on 90 days D/A

 

 

OVERALL PERFORMANCE

 

Initially named N.V. PHARMACEUTICAL PROCESSING INDUSTRIES abbreviated to N.V. PHAPROS, it was established in 1954 with the legal status Naamloze Vennotschap) or limited liability company with the authorized capital of Rp. 1,000,000 of which Rp. 250,000 was issued and fully paid up. The founding shareholders of the company are N.V. Bankvereening OEI TIONG HAM and Mr. Ho Wie Han. In 1960, whole shareholders withdrew and replaced by P.T. RAJAWALI NUSINDO, a state owned company. The articles of association of the company have frequently been revised. In 1985, the company renamed to P.T. PHARMACEUTICAL PROCESSING INDUSTRIES and in September 2000 to P.T. PHARMACEUTICAL PROCESSING INDUSTRIES Tbk (P.T. PHAPROS Tbk). The capital structures and shareholders composition of the company in details are as shown on profile of this report. The deed of amendment was made by Mr. Benny Kristianto, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. C2-25456.HT.01.04.TH.1998, dated October 31, 1998. The latest in April 2010 the board of directors and the board of commissioners of the company had been changed (see profile of this report). The latest revision of notary documents was made by Mrs. Liany Dewi Sanjoto, SH., a public notary in Jakarta and was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-24623 dated September 30, 2010.

 

P.T. PHAPROS Tbk is a member company of the RAJAWALI NUSINDO Group, a business group owned by the government of the Republic of Indonesia. The group's main business activities are in sugar mill industry, palm oil refinery, tanning industry, pharmaceutical industry, glove industry, etc.

 

P.T. PHAPROS Tbk obtained a Domestic Capital Investment (PMDN) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with pharmaceutical manufacturing by operating a plant located at Jalan Simongan No. 131, Semarang, Central Java on a land of 2.7 hectares. Phapros has currently been producing 342 items of pharmaceutical products, among them 313 are own-developed (non-license).

 

The plant had been operating since 1955 by produces Tablets of 600,000,000 pcs, Dragees of 650,000,000 pcs, Injections of 16,500,000 pcs, and Capsules of 15,000,000 pcs per annum. The products being produced by the company consist of tablets, dragees, injections and capsules being widely popular in the country including Acetosal Tablet 100 Mg, Amoxyllin Capsul 250 Mg, Antalgin Injection 2 Ml, Antimo Tablet 50 Mg, Dermazine Cream Tube 250 Gr, Dextrofen Syrup 100 Ml, Uroquad Tablet 300 Mg and others.

 

Whole products of the company are locally marketed by its parent company P.T. RAJAWALI NUSINDO using Phapros brand. At the end of 2003, the company along with two state owned companies P.T. KIMIA FARMA Tbk and P.T. INDOFARMA Tbk was going to be merged. However the merger has yet been realization. To improve its business structure, Phapros continuously strengthen its various strategic partners. In 2004, the Company maintained its alliances with a leading number global company possessing strong R & D. However, the plan has yet to be realized. P.T. PHAPROS Tbk is classified as a large sized company of its kind in the country of which the operation has been fluctuating in the last three years.

 

Generally, demand for laboratory and medical equipment and various pharmaceutical products had been growing in the last five years up to the end 2012 as pictured in sales value of national pharmaceutical products, import value and export value issued by the Food and Drug Controlling Board (BPOM). The national pharmaceutical sales, export and import value of products are estimated to be rising by 6% to 8% in the next year. The competition is very tight on account many similar companies operating in the country. The business position of P.T. PHAPROS Tbk is a sufficiently fairly good because the company has captive market namely the state-owned hospital and private hospital in the country. According the BPOM that national pharmaceutical sales as shown are as the following table.

 

National Market Trend of Drugs, 2001-2012* (Billion Rupiah)

 

Year

Total Market

Ethical Drugs

Generic Drugs

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012*

12.850

15.483

17.458

20.872

23.629

23.173

25.600

29.981

33.965

37.531

43.081

45.235

  7.891

  9.618

10.829

12.706

14.675

13.834

13.959

16.969

19.225

21.142

23.506

25.281

1.547

1.694

1.819

2.136

2.529

2.390

2.295

3,213

3.420

3.610

3.900

4.095

            Source: Food and Drug Controlling Board (BPOM)

            *) Estimated                 

 

According to the financial statement of the company having been audited by public accountant, sales turnover of P.T. PHAPROS Tbk., in 2010 amounted to Rp. 433.2 billion with a net profit of Rp. 61.3 billion increased to Rp. 470.7 billion with a net profit of Rp. 64.7 billion in 2011 to Rp. 529.7 billion with a net profit of Rp. 60.9 billion in 2012 decreased to Rp. 521.6 billion with a net profit of Rp. 43.5 billion in 2013 and projected to go on rising by at least 5% in 2014.

 

Based on information obtained from some customers, the payment habit of the company is smooth ranging from 1 to 3 months. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The financial statement as per 31 December 2011, 2012 and 2013 is attached below.

 

The management of P.T. PHAPROS Tbk is headed by Mr. Drs. Erlangga Tri Putranto Akt. (51) as the president director. He graduated from Airlangga University, East Java majoring in accounting. In his daily activities, he is assisted by three other directors namely Mr. Sutiyono, SE (53), Mr. Drs. Iswanto, Apt, MM (54) and Mr. Herman Santoso, SE, MM (54). The management is handled by experienced professional managers having wide relation with overseas and national private businessmen as well as with the government sectors. 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. PHAPROS Tbk is sufficiently fairly good for business transaction.

 

Attachment 1:

 

 

P.T. PHAPROS Tbk

And Subsidiaries

FINANCIAL STATEMENTS

Per 31 December 2011, 2012 and 2013

 

(In million Rupiah)

DESCRIPTION

31 December

 

2013

2012

2011

A.  ASSETS

 

 

 

     Current Assets

 

 

 

       - Cash and Cash Equivalent

27.523

43.633

20.536

       - Trade Receivable

 

 

 

         * Third Parties

6.331

9.218

1

         * Related Parties

254.948

238.084

228.249

       - Other Receivable

 

 

 

         * Third Parties

8

657

3.146

         * Related Parties

1.168

33

-

       - Inventories

145.243

102.322

98.615

       - Advance Purchasing

22.475

28.289

26.922

       - Receivable Income

1.126

952

1.772

       - Prepaid Expenses

15.927

3.264

-

     Total Current Assets

474.749

426.452

379.241

     Non-Current Assets

 

 

 

      - Deferred Tax Assets

3.764

3.664

3.895

      - Long Term Investment

56

56

56

      - Tax Assets

9.366

8.532

6.849

      - Fixed Assets

153.452

117.404

69.723

      - Intangible Assets

1.132

1.972

2.185

      - Other Assets

393

565

641

     Total Non Current Assets

166.163

132.193

83.351

TOTAL ASSETS  =  TOTAL LIABILITIES &

                                 EQUITY

642.912

558.644

462.591

B. LIABILITIES & EQUITY

 

 

 

     Current Liabilities

 

 

 

      - Bank Loan

121.700

62.800

17.000

      - Trade Payable

 

 

 

         * Third Parties

42.708

40.749

40.733

         * Related Parties

14.905

5.114

3.434

      - Accrued Expenses

9.929

18.883

17.267

      - Dividend Payable

4.661

4.112

4.085

      - Other Debts

1.815

24

8

      - Obligation under financial lease

1.519

2.621

4.052

      - Tax Payables

7.554

5.999

4.867

     Total Current Liabilities

204.791

140.303

91.448

     Non Current Liabilities

 

 

 

      - Financial Lease

559

2.009

3.056

      - Provision Employee Benefits

45.635

40.705

28.918

     Total Non Current Liabilities 

46.194

42.714

31.974

     Total Liabilities 

250.985

183.017

123.422

     Equity

 

 

 

      - Issued and Paid up Capital

84,000

84,000

42,000

      - Additional Paid-in Capital

17.139

17.139

59,139

      - Profit (Loss) before accumulated

(6.815)

(8.206)

-

      - Retained Earning (Deficit)

383.506

367.240

339.170

     Total Equity

391.927

375.627

339.170

 

 

 

 

C. INCOME STATEMENT

 

 

 

     a. Sales – Net

521.611

529.753

470.666

     b. Cost of Goods Sold

(200.486)

(208.784)

(183.971)

     c. Gross Profit

321.125

320.968

286.696

     d. Operational Expenses

(254.852)

(236.071)

(202.122)

     e. Operational Profit

66.273

84.897

84.573

     f.  Other Income (Expenses)

(10.114)

4.275

4.321

     g. Profit Before Income Tax

56.159

89.172

88.894

     h. Income Tax

(14.019)

(20.032)

(24.198)

     i.  Net Profit (Loss)

43.531

60.934

64.696

Source: Financial Statement 31 December 2011, 2012 and 2013

              Audited by Bernardi & Rekan

 

 

Attachment 2:

 

List of the RAJAWALI NUSANTARA INDONESIA Group Members

 

 

1.       CITRAMAS PLASTIK INDUSTRI, P.T. (Plastic Packaging Industry)

2.       GABUNGAN IMPOR EXPOR BALI, P.T. (Land Transportation & Distribution)

3.       MADU BARU, P.T. (Sugarcane Refinery)

4.       MITRA KERINCI, P.T. (Black and Green Tea Plantation)

5.       MITRA RAJAWALI BANJARAN, P.T. (Condom Manufacturing)

6.       PABRIK GULA CANDI BARU, P.T. (Sugarcane Plantation and Sugar Refinery)

7.       PABRIK GULA RAJAWALI 1, P.T. (Sugarcane Refinery)

8.       PABRIK GULA RAJAWALI II, P.T. (Sugarcane Plantation and Sugar Refinery)

9.       PABRIK GULA RAJAWALI III, P.T. (Sugarcane Plantation and Sugar Refinery)

10.   PABRIK GULA REJO AGUNG BARU, P.T. (Sugarcane Plantation and Sugar Refinery)

11.   PERKEBUNAN MITRA OGAN, P.T. (Oil Palm Plantation and Palm Oil Refinery)

12.   PHAPROS Tbk, P.T. (Pharmaceutical Industry)

13.   PIE RAJAWALI NUSINDO, P.T. (General Trading)

14.   PHILIPS RALIN ELECTRONICS, P.T. (Electric Lamp Manufacturing)

15.   RAJAWALI GLOVES CORPORATION, P.T. (Sport Glove Indusry)

16.   RAJAWALI NUSANTARA INDONESIA, P.T. (Investment Holding and Management Trust)

17.   RAJAWALI PROPERTINDO, P.T. (Office Block and Diplomatic Residential Complex)

18.   PROYEK PENGEMBANGAN LINGKUNGAN KUNINGAN (PPLK) (Zone Industry Management)

19.   PK. TANJUNG SARI (Leather Processing)

20.   TROPHY RAJAWALI INDONESIA, P.T. (Radiology Instrument Industry)

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.57

UK Pound

1

Rs.98.87

Euro

1

Rs.80.05

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.