MIRA INFORM REPORT

 

 

Report No. :

311007

Report Date :

11.03.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. PRIMERO OVERSEAS SERVICES

 

 

Registered Office :

Menara BCA Grand Indonesia 45th Floor Suite 4523, Jalan M.H. Thamrin No. 1 Jakarta Pusat, 10310

 

 

Country :

Indonesia

 

 

Date of Incorporation :

03.05.2010

 

 

Com. Reg. No.:

AHU-26506.ah.01.01.TH.2010

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading, Distribution and Exporter of Vegetable Oil and Crude Palm Oils

 

 

No. of Employees :

15

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. PRIMERO OVERSEAS SERVICES

 

A d d r e s s :

Head Office

Menara BCA Grand Indonesia 45th Floor Suite 4523

Jalan M.H. Thamrin No. 1

Jakarta Pusat, 10310

Indonesia

Phone               - (62-21) 2358 5652

Fax                   - (62-21) 2358 5601

Mobile Phone    - 081 294 23721 (Mr. Venkataraman Sekar)

E-mail               - made@ptprimero.com

Building Area    - 56 storey

Office Space    - 60 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

3 May 2010

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-26506.ah.01.01.TH.2010

Dated 25 May 2010

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

Not Available.

 

The Capital Investment Coordinating Board

No. 00714/I/PPM/PMA/2010

Dated 26 April 2010

 

Related Company :

BIOMAX FUELS LIMITED, India (Biodiesel Processing and Investment Holding)

 

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 100,000.-

Issued Capital                                 : US$ 100,000.-

Paid up Capital                               : US$ 100,000.-

 

Shareholders/Owners :

a. BIOMAX FUELS LIMITED                                              - US$ 99,000.-

    Address : Plot #S&T, Visakhapatnam Special Economic

                    Zone, Duvvada, Visakhapatnam, Andhra

                    Pradesh, India

b. Mr. Nidamanggala Srinivasa Balamukundan                 - US$   1,000.-

    Address : No. 1 Raghaviah Road

                    Nagar, Chennah 600017

                    India

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Distribution and Exporter of Vegetable Oil and Crude Palm Oils

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

2011

 

Brand Name :

Primero Overseas Services

 

Technical Assistance :

Biomax Fuels Limited, India

 

Number of Employee :

15 persons

 

Marketing Area :

Export    - 100%

 

Main Customer :

Biomax Fuels Limited, India

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. MUSIM MAS

b. P.T. PACIFIC INDOMAS

c. P.T. TANIMAS EDIBLE OIL

d. P.T. WILMAR NABATI INDONESIA

e. Etc.

 

Business Trend :

Growing

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CENTRAL INDONESIA Tbk

      Menara BCA Grand Indonesia

      Jalan M.H. Thamrin No. 1

      Jakarta Pusat

b.   P.T. Bank SBI INDONESIA

      Gedung Graha Mandiri

      Jalan Imam Bonjol No. 61

      Jakarta Pusat

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 43.8 billion

2013 – Rp. 47.0 billion

2014 – Rp. 51.8 billion

 

Net Profit (estimated) :

2012 – Rp. 2.6 billion

2013 – Rp. 2.8 billion

2014 – Rp. 3.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Venkataraman Sekar

 

Board of Commissioners :

Commissioner                                 - Mr. Nidamanggala Srinivasa Balamukundan

 

Signatories :

Director (Mr. Venkataraman Sekar) which must be approved by Board of Commissioner

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

P.T. PRIMERO OVERSEAS SERVICES (P.T. POS) was established in Jakarta based on notary deed Mr. Suwanda, SH., no. 2 dated 3 May 2010 with an authorized capital of US$ 100,000 wholly issued and paid up. The founding and shareholders of the company are BIOMAX FUELS LIMITED of India (99%) and Mr. Nidamangala Srinivasa Balamukundan of India (1%). The notary deed if incorporation was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-26506.AH.01.01.TH.2010 dated May 25, 2010.

 

P.T. POS has obtained Foreign Investment (PMA) company facility from the Capital Investment Coordinating Board (BKPM) do deal with business management consulting services. According to the license the company provides services in business management consultancy especially in crude palm oil services and vegetable oil industries. Since operation in 2011 the company has exports of crude palm oil and vegetable oil which wholly bough from oil palm plantation in Sumatera and Kalimantan. According information the company is able to export more than 5,000 tons of crude palm oil per month. Later the whole crude palm oil and vegetable oil wholly exported to parent company BIOMAX FUELS LIMITED, a private company based in India producing of bio-diesel oils, glycerin and natural mixed cartenoids.

 

Besides, the company planned to markets and sells of the products like Bio-diesel, petrochemicals/fuel oil, LSHS marketed in Indonesia and supplied to P.T. ASIA PACIFIC FIBERS Tbk and others. We observe that P.T. POS is classified a small sized company of its kinds in the country with operation has been running smoothly in the last three years.

 

 Palm oil is one of the world's most produced and consumed oils. This cheap, production-efficient and highly stable oil is used in a wide variety of food, cosmetic and hygiene products, and can be used as source for bio-fuel or biodiesel. Most palm oil is produced in Asia, Africa and South America because the trees need warm temperatures, sunshine and plenty of rain in order to maximize production. Looking at consumption growth trends in emerging economies like India and China, the outlook for the palm oil industry is expected to remain positive. With its growing population base, Indonesia has become one of the largest consumers of palm oil together with China and India. The demand for palm cooking oil has kept on increasing in the last five years in line with the growing demand for palm cooking oil within and outside the country.

 

Few Indonesian industries have shown such a robust growth as the palm oil industry did during in the last 15 years. This growth is visible in the country's production and export numbers as well as in the quantity of its palm oil estate area. Driven by increased global demand and higher yields, palm oil cultivation has been expanded significantly by Indonesian farmers and conglomerates (at the expense of the environment and production numbers of other agricultural products as farmers switch to palm oil plantation). The majority of Indonesia's palm oil production is exported (see table below). The most important export destination countries are China, India, Malaysia, Singapore and the Netherlands. The business position of P.T. POS is favorable for having established wide marketing coverage in India.

 

Indonesia’s Palm Oil Production and Export


 

  2007

  2008

  2009

  2010

  2011

  2012

  2013

Production
(million metric tons)

  17.7

  18.6

  19.3

  21.9

  23.0

  23.5

  25.0

Export
(million metric tons)

   n.a

  14.2

  15.5

  15.6

  16.5

  18.1

  21.0

Export
(in USD$ billion)

   n.a

  15.6

  10.0

  16.4

  20.2

  21.6

  20.0

 

Until this time P.T. POS has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. POS is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2012 amounted to Rp. 43.8 billion increased to Rp. 47.0 billion in 2013 rose to Rp. 51.8 billion in 2014 and projected to go on rising by at least 6% in 2015. The operation in 2014 yielded an estimated net profit of at least Rp. 3.0 billion. We observe that P.T. POS 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. POS is led by Mr. Venkataraman Sekar (42) a professional manager of India with experience in trading and exporter of vegetable oil and crude palm oil. 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. PRIMERO OVERSEAS SERVICES is sufficiently fairly good for business cooperation.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.70

UK Pound

1

Rs.94.55

Euro

1

Rs.67.65

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

               


 

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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