MIRA INFORM REPORT

 

 

Report Date :

24.05.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. AGROFOOD MAKMUR MANDIRI

 

 

Registered Office :

Jalan Raya Krian Mojosari Km. 2, Desa Watu Kenongo, Kecamatan Pungging, Mojokerto, 61384 East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

15.10.2006

 

 

Com. Reg. No.:

AHU-AH.01.10-01736

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in Wheat Flour Mills

 

 

No of Employees :

113 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 – September 30, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

 


BASIC SEARCH

 

Name of Company :

 

P.T. AGROFOOD MAKMUR MANDIRI

 

Address :

Head Office & Factory

Jalan Raya Krian Mojosari Km. 2

Desa Watu Kenongo, Kecamatan Pungging

Mojokerto, 61384

East Java

Indonesia

Phones             - (62-321) 595662, 595662

Fax                   - (62-321) 595663, 593726

E-mail               - mardika@sby.dnet.net.id

Land Area         - 10,000 sq. meters

Building Space  - 5,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation :

15 October 2006

 

Legal Form :

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

 

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. W10-00356.HT.01.01.TH.2006

  Dated 15 November 2006

- No. AHU-06774.AH.01.02.TH.2009

  Dated 10 March 2009

- No. AHU-AH.01.10-01736

  Dated 28 February 2012

 

 

Company Status :

National Private Company

 

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.297.603.9-602.000

 

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 30,000,000,000.-

Issued Capital                                  : Rp. 15,000,000,000.-

Paid up Capital                                : Rp. 15,000,000,000.-

 

 

Shareholders/Owners :

 

a. Mr. Beny Wijaya                                                           - Rp. 14,850,000,000.-

    Address : Dusun Dakon RT. 03 RW. 05

                    Kelurahan Watu Kenongo, Kecamatan Pungging

                    Mojokerto, East Java

                    Indonesia

b. Mrs. Tirtasari Tedjakusuma                                           - Rp.      150,000,000.-

    Address : Dusun Dakon RT. 03 RW. 05

                    Kelurahan Watu Kenongo, Kecamatan Pungging

                    Mojokerto, East Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Wheat Flour Mills

 

 

Production Capacity :

Wheat Flour                                    - 25,000 tons p.a.

 

 

Total Investment :

Owned Capital                                 - Rp. 30.0 billion

 

 

Started Operation :

2010

 

 

Brand Name :

Agrofood Makmur Mandiri

 

 

Technical Assistance :

None

 

 

Number of Employee :

113 persons

 

 

Marketing Area :

Local       - 100%

 

 

Main Customer :

Food processing and distributors

 

 

Market Situation :

Very Competitive

 

 

Main Competitors :

a. P.T. BUNGASARI FLOUR MILLS

b. P.T. CERESTAR FLOUR MILLS

c. P.T. CROWN FLOUR MILLS

d. P.T. SARANA PRIMA MAKMUR

e. P.T. WILMAR FLOUR MILLS

 

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Banker :

P.T. Bank CENTRAL ASIA Tbk

Jalan HOS Cokroaminoto No. 5

Mojokerto, East Java

Indonesia

 

 

Auditor :

Internal Auditor

 

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 55.0 billion

2012 – Rp. 61.0 billion

2013 – Rp. 66.0 billion

 

 

Net Profit (estimated) :

2011 – Rp. 3.3 billion

2012 – Rp. 3.7 billion

2013 – Rp. 4.1 billion

 

 

Payment Manner :

Average

 

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Beny Wijaya

 

 

Board of Commissioners :

Commissioner                                 - Mr. Anthonius Wijaya

 

 

Signatories :

Director (Mr. Beny Wijaya) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

OVERALL PERFOMANCE

 

P.T. AGROFOOD MAKMUR MANDIRI (P.T. AMM) was established in Mojokerto, East Java, in October 2006 with the authorized capital of Rp. 10,000,000,000 issued capital of Rp. 2,500,000,000 entirely paid up. The founding shareholders of the company are Mr. Beny Wijaya (99%) and Mr. Johny Thorion (1%) both are Indonesian businessmen of Chinese origins. The company notary deed has frequently been revised and in February 2009 the company authorized capital was increased to Rp. 30,000,000,000 issued capital to Rp. 15,000,000,000 entirely paid up. The latest according to the revision of notary deed Mrs. Dwi Rosulliati, SH., no. 169 dated 30 January 2012 the company board of director and the board of commissioner has been changed 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.01.10-07136 dated February 28, 2012.

 

P.T. AMM is a national private company started to be operating since 2010 engaged in the field of wheat flour mills. Its plant is located at Jalan Raya Krian Mojosari Km. 2, Desa Watu Kenongo, Pungging district, Mojokerto Regency, East Java standing on 10,000 sq. meters land. The construction of the plant was begun in mid 2008 and completed in the end of 2009.

 

 

The plant has commercial production by the early 2010 by produce of wheat flours of 25,000 tons per year. The construction of the wheat flour plant has absorbed an investment of Rp. 30.0 billion wholly come from owned capital. P.T. AMM is one of the flour mills in Indonesia which produce wheat flour with ME brands. The whole products product marketed locally to various food and instant noodles manufacturing and the rest is also distributed through distributors of wheat flour in the country. The wheat seed imported from Australia, Canada and the USA. We observe the operation of P.T. AMM has been growing and running well in the last three years.

 

We note that generally the domestic demand for wheat flour has kept on increasing in the last five years. The increasing demand was in keeping with the development and growth of domestic industries processing food materials like instant noodles, bread, biscuit, etc. from wheat flour as the main raw material. However since 2008, the wheat flour industries have facing problem because there is lot of cheap wheat flour imports marketed in the country especially from Turkey. Indonesian Flour Producers Association (APTINDO) has accused flour importers of intervening with the Government to avoid imposition of antidumping duties against flour from Turkey. Cheap flour imported from Turkey continued to flood the Indonesian market has brought bad impact to the Indonesian producer of wheat flour industries.

 

Besides that, competition is very sharp in the wheat flour trade with 8 companies now operating in this industry in Indonesia, namely P.T. INDOFOOD SUKSES MAKMUR BOGASARI FLOUR MILLS Tbk., P.T. PANGANMAS INTI PERSADA, P.T. SRIBOGA RATURAYA, P.T. BERKAT INDAH GEMILANG, P.T. CARESTA FLOUR MILLS, P.T. FEDERAL FLOUR MILLS, P.T. FUGUI FLOUR & GRAIN INDONESIA, P.T. EASTERN FLOUR MILLS. See further table below for development of Indonesian wheat grain and wheat flour imports.

 

The Growth of Capacity, Production of

Wheat Flour Mills in Indonesia, 2006 - 2013

 

Year

Production (Million Ton)

2006

4.2

2007

4.8

2008

4.8

2009

5.7

2010

5.8

2011

6.5

2012

7.3

2013

8.2

 

Until this time P.T. AMM has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. AMM is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2011 amounted to Rp. 55.0 billion increased to Rp. 61.0 billion in 2012 to Rp. 66.0 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 has yielded a net profit of Rp. 4.1 billion and the company has an estimated total networth of Rp. 15.0 billion. 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. AMM is led by Mr. Beny Wijaya (47) a businessman with experience in wheat flour mills industry. The company's management is handled by professional managers 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. AGROFOOD MAKMUR MANDIRI is sufficiently fairly good for business transaction. However, in view of Indonesian political situation is not sable we recommend to treat prudently in extending a loan to the company.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 58.48

UK Pound

1

Rs. 98.67

Euro

1

Rs. 79.80

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

DPT

 

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.