MIRA INFORM REPORT

 

 

Report No. :

345214

Report Date :

19.10.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. VVF INDONESIA

 

 

Registered Office :

Jl. Pulau Pinang VI – VII, Kawasan Industri Medan II, Pematang Johar, Pelabuhan Deli Serdang Medan, North Sumatra

 

 

Country :

Indonesia

 

 

Date of Incorporation :

18.02.2008

 

 

Com. Reg. No.:

AHU-AH.01.10-11828

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Oleo-Chemical Industry

 

 

No. of Employees :

240

 

 

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 :

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. 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, a current account deficit, and unequal resource distribution among regions. President Joko WIDODO - elected in July 2014 - has emphasized maritime and other infrastructure development, and especially increased electric power capacity, since taking office. Fuel subsidies were almost completely removed in early 2015, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration will not be completed by the previously-set deadline of year-end 2015.

 

Source : CIA

 


BASIC SEARCH

 

Name of Company :

P.T. VVF INDONESIA

 

A d d r e s s :

Head Office & Factory

Jl. Pulau Pinang VI – VII

Kawasan Industri Medan II, Pematang Johar

Pelabuhan Deli Serdang

Medan, North Sumatra

Indonesia

Phones                      - (62-61) 3000 8300 (hunting)

Fax                            - (62-61) 3000 8307

Land Area                  - 7.1 hectares

Building Area              - 3.2 hectares

Region                       - Industrial Estate

Status                        - Rent

 

Date of Establishment :

18 February 2008

 

Legal Form :

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

 

Company Registration :

The Ministry of Law and Human Right

  a.  No. AHU-42977.AH.01.01.Tahun 2008

      Dated 18 July 2008

  b.  No. AHU-AH.01.10-11828

      Dated 19 March 2014

 

S t a t u s :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

a. The Department of Finance

    NPWP No. 02.848.708.0-125.000

 

b. The Capital Investment Coordinating Board

    No. 120/I/PMA/2008

    Dated 28 January 2008

 

Holding Companies :

a. VVT SINGAPORE PTE LTD., of Singapore (Investment Holding)

b. VVT (INDIA) LIMITED of India (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital       - Rp. 84,087,000,000.- (US$.9,000,000.-)

Issued Capital             - Rp. 84,087,000,000.- (US$.9,000,000.-)

Paid up Capital           - Rp. 84,087,000,000.- (US$.9,000,000.-)

 

Shareholders/Owners :

a. VVF SINGAPORE PTE. LTD.,      - Rp. 71,473,950,000.- (85%)

    Address: 133, Cecil Street, #09 01A

                    Keck Seng Tower

                    Singapore 069535

b. VVF (INDIA) LIMITED                  - Rp. 12,613,050,000.- (15%)

    Address: 109, Sion (East) Mumbai

                   400022 Maharashtra

                   India 

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Oleo-chemical Industry

 

Production Capacity :

Split Palm Kernel Oil Fatty Acid And Crude Glycerin   - 135,600 tons p.a.

 

Total Investment :

a. Owned Capital              - US$.   9.0 million

b. Loan Capital                 - US$. 31.0 million

c. Total Investment            - US$. 40.0 million

 

Started Operation :

April 2013

 

Brand Name :

VVF INDONESIA

 

Technical Assistance :

None

 

Number of Employee :

240 persons

 

Marketing Area :

Export      - 95%

Local      -   5%

 

Main Customers:

Buyers in India, China and Pakistan

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Musim Semi Mas (Musim Mas)

b. PT. Wilmar Nabati Indonesia

c. PT. Sinar Oleochemials

d. PT. Ecogreen Oleochemicals

e. PT. Flora Sawita Chemindo

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   Hong Kong and Shanghai Banking Corp.

      Jl. Diponegoro No.11

      Medan, North Sumatra

      Indonesia

b.   P.T. Bank MANDIRI Tbk.

      Jl. Imam Bonjol No. 7

      Medan, North Sumatra

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2013 – Rp. 110.0 billion

2014 – Rp. 148.0 billion

2015 – Rp.   86.0 billion (January – June)

 

Net Profit (estimated) :

2013 – Rp. 7.0 billion

2014 – Rp. 9.6 billion

2015 – Rp. 5.5 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Fairly

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mrs. Retno Indriani

Director                                           - Mr. Muhammad Shafiq

 

Board of Commissioner:

Commissioner                                 - Mrs. Wuri Purbosiwi

 

Signatories :

President Director (Mrs. Retno Indriani) or the Director (Mr. Muhammad Shafiq) which must be approved by board of commissioner (Mrs. Wuri Purbosiwi)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. VVF INDONESIA was incorporated in Deli Serdang (North Sumatra) based on notary Deed of Indrasari Kresnadjaja Gunadharma, SH., No. 06 dated February 18, 2008 with an authorized capital of Rp.84,087,000.- (US$.9,000,000) entirely was issued and fully paid up.  The founding shareholders of the company are VVF FZE Company Limited of Dubai (85%) and VVF (INDIA) Limited of India (85%).  The Deed of establishment was approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-42977.AH.01.01.Tahun 2008 dated July 18, 2008.  In March 2013, based on notary Deed of Popie Savitri Martosuhardjo Pharmanto, SH., VVF FZE Company Limited withdrew and the whole shares are sold to VVF SINGAPORE Pte., Ltd., of Singapore. Since then, the shareholders of the company are  WWF SINGAPORE Pte. Ltd., (85%) and VVF (INDIA) Limited (15%).   The amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-AH.01.10-11828 dated March 19, 2014.  Since then, no changes have been effected in term of its shareholding composition and capital structures to date.

 

 

P.T. VVF INDONESIA obtained a foreign investment company (PMA) facility issued by Investment Coordinating Board (BKPM) in January 2008 for dealing with Oleo-chemical industry, such as; Split Palm Kernel Oil Fatty Acid and Crude Glycerin. Its plant located at Jl. Pulau Pinang VI-VII, Kawasan Industri Medan II, Pematang Johar, Pelabuhan Deli Serdang, Medan, North Sumatra, where its stands on a 7.1 hectares landsite. The plant has been in operation since March 2013 with an installed production capacity of 11,300 tons of Split Palm Kernel Oil Fatty Acid and Crude Glycerin per month or 135,600 tons per year.  Fatty acids find uses in personal care products such as bar soaps, household items such as fabric softners and industrial applications such as lubricants, metal soaps, rubber products, as well as numerous intermediate chemicals. P.T. VVF INDONESIA gets technological assistance from VVF (India) Limited of India.   VVF is India’s largest producer and exporter of high quality distilled fatty acids. Produced from 100% vegetable renewable feed stocks of palm and rapeseed oils, we offer numerous specialty fatty acids such as Caprylic, Capric, Lauric, Myristic, Palmitic, Stearic, Oleic, Erucic and Behenic.  We observed that P.T. VVF INDONESIA is classified as a small-sized company of its kind in the country of which the operation has been growing in the last three years.

 

Generally, international demand for basic palm products such as Crude Palm Oil, Palm Acid Oil, Palm Fatty Acid Distillate, Palm Kernel Cake, etc. had been increasing by 7% to 8% on the average per annum having close relation with the rapid growth of various industrial sectors such as cooking oil industries, margarine industries and others.  In the coming years, the growth rate of demand is estimated at about 6% to 7% per annum.  Meanwhile, competition is quite heavy in the exporting of palm products with many companies now doing business in this field in Indonesia. Business position of P.T. VVF INDONESIA is favorable for it has controlled a wide marketing network at abroad especially in India, China and Pakistan.

 

Until this time P.T. VVF INDONESIA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.   The management of P.T. VVF INDONESIA is very reclusive towards outsiders and rejected to disclose its financial condition.  We estimated that total sales turnover of the company in 2013 amounted of Rp. 110.0 billion and increased to Rp. 148.0 billion in 2014 and the operation in 2014 yielded an estimated net profit at least Rp. 9.b Billion and the company has an estimated total asset at Rp. 120.0 billion.   It is projected that total sales turnover of the company will increase at least 8% in 2015. So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia).

 

Pursuant to the Company’s notary deed, P.T. VVF INDONESIA is headed Mr. Navnit Singh of India as President Director and Mr. Indarto of Indonesia as director.   But we believe that the prime-mover of the company is Mr. Rustom Godrej Joshi (62).  He is a businessman of India origins who experienced for more than 20 years in the field of export-import and general trading of palm products.  The company’s management has a wide relation in the realm of the private businessmen inside and outside the country. 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’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

P.T. VVF INDONESIA is sufficiently fairly good for business transaction. However, in view of the economic situation in the country is unstable, we recommend to treat prudently in extending a loan to the company.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.97

UK Pound

1

Rs.100.55

Euro

1

Rs.73.99

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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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