MIRA INFORM REPORT

 

 

Report No. :

490571

Report Date :

12.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

P.T. MEGHMANI ORGANICS INDONESIA

 

 

Registered Office :

Jl. Boulevard Barat Raya B III/66, Jakarta 14240

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.03.2016

 

 

Date of Incorporation :

27.02.2008

 

 

Com. Reg. No.:

AHU-AH.01.10-21800

 

 

Legal Form :

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

 

 

Line of Business :

Trading, Import and Distribution of Pesticides and Other Pigment Products

 

 

No. of Employees :

Not available

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

C

 

Credit Rating

Explanation

Rating Comments

C

Medium High Risk

Business dealings permissible preferably on secured basis

 

Status :

Moderate

 

 

Payment Behaviour :

Slow 

 

 

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

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Indonesia

A2

A2

 

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, the largest economy in Southeast Asia, 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. Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to 33% today. While Fitch and Moody's Investors upgraded Indonesia's credit rating to investment grade in December 2011, Standard & Poor’s has yet to raise Indonesia’s rating to this status amid several constraints to foreign direct investment in the country, such as a high level of protectionism.

Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among its regions. President Joko WIDODO - elected in July 2014 – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, including significantly increasing its electrical power generation capacity. Fuel subsidies were significantly reduced in early 2015, a move which has helped the government redirect its spending to 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 has not yet materialized.

 

Source : CIA

 

company summery

 

Name of Company :

P.T. MEGHMANI ORGANICS INDONESIA

 

A d d r e s s :

Head Office

Formerly address

Ruko Metro Kencana VII Blok Q No. 40

Pertokoan Plaza Metro Sunter

Kel. Sunter Agung, Kec. Tanjung Priok

Jakarta Utara 14350

Indonesia

Phones             - (62-21) 651 8583

Fax                   - (62-21) 651 8585

 

New Address

Jl. Boulevard Barat Raya B III/66

Jakarta 14240

Indonesia

Indonesia

Phones             - (62-21) 4584 7176

Fax                   - (62-21) 4584 7177

 

Date of Incorporation :

27 February 2008

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a.  No. AHU-21656.AH.01.01.Tahun 2008

      Dated 29 April 2008

  b.  No. AHU-AH.01.10-03659

      Dated 15 April 2009

  c.  No. AHU-AH.01.10-21800

      Dated 03 June 2013

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.747.710.8-048.000

 

 

 

Holding Company :

MEGHMANI ORGANICS LIMITED of India (Investment Holding)

 

Related/Associated Company :

A member of the MEGHMANI ORGANICS Group of India

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 2,284,250,000.-

Issued Capital                                 - Rp. 2,284,250,000.-

Paid up Capital                               - Rp. 2,284,250,000.-

 

Shareholders/Owners :                  

  a. MEGHMANI ORGANICS LIMITED   - Rp. 2,261,407,500.- (99%)

     Address : Plot No. 184 (Phase II) G.I.D.C.

                     Industrial Estate, Vatva

                     Ahmedabad 382445

                     India

  b. Mr. Patel Natwarlal Meghjibhai      - Rp.      22,842,500.- (  1%)

     Address : 6-8 Ashokvatika N01

                     OPP Ektafarm Ambibopal Road

                     India

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Import and Distribution of Pesticides and Other Pigment Products

 

Production Capacity :

None

 

Total Investment :

Owned Capital               - Rp. 2,284.2 million

 

Started Operation :

April 2009

 

Brand Name :

Meghmani Organics Indonesia

 

Technical Assistance :

None

 

Number of Employee :

Unknown

 

Marketing Area :

Local       - 100%

 

Main Customers:

Pharmaceutical Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Basf Indonesia

b. PT. Maskitani

c. PT. Agricon

d. PT. Ria Indo Agri

e. PT. Indagro

 

Business Trend :

Declining

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

Unknown

 

Auditor :

MMC Consulting

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

For The Years Ended March 31

 

Total Sales/Revenues :

2014 – Rp. 1,356.0 million (estimated)

2015 – Rp.  --

2016 – Rp.  –

2017 – Rp.  --

 

 

Profit (Loss) After Tax :

2014 – (Rp. 2,129.0 million) (estimated)

2015 – (Rp     352.2 million)

2016 – (Rp. 1,528.2 million)

2017 – Unknown

 

Payment Manner :

Slow 

 

Financial Comments :

Unhealthy

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Patel Ankit Natwarlal

Director                                          - Mr. Ashish Natwarlal Soparkar

 

Board of Commissioners :

Commissioner                                 - Mr. Patel Jayantilal Meghjibhai

 

Signatories :

President Director (Mr. Patel Ankit Natwarlal) or Director (Mr. Ashish Natwarlal Soparkar) which must be approved by Board of Commissioner (Mr. Patel Jayantilal Meghjibhai)

 

 

CAPABILITIES

 

Management Capability :

Weak

 

Business Morality :

Doubted

 

 

OVERALL PERFORMANCE

 

      P.T. MEGHMANI ORGANICS INDONESIA (P.T. MOI) was incorporated in Jakarta on February 27, 2008 with the authorized capital of Rp. 2,284,250,000 (US$. 250,000) entirely was issued and fully paid up.  The founding shareholders of the company are Mr. Ramanath Mangapuram (52%) and Mr. Gyan Prakash (48%), both are Indian businessmen.  The Deed of establishment was approved by the Minister of Law and Human Rights through its Decision Letter No. AHU-21656.AH.01.01.Tahun 2008 dated April 29, 2008.

 

      The Company’s article of association has been amended for several times.  In February 2009, based on notarial Deed of Notary Arsin Effendy, SH., No. 12 dated February 13, 2009 Mr. Ramanath Mangapuram and Mr. Gyan Prakash pulled out and the whole shares are sold to Meghmani Organics Limited of India (99%) and Mr. Patel Natwarlal Meghjibhai of India (1%).   The amendment to Deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-03659 dated April 15, 2009.

 

      The most recently by notarial Deed of Notary Dedi Hartono, SH., No. 1028 dated May 23, 2013 the company board of director was changed, Mr. Ramanath Manganpuram is replaced by Mr. Patel Ankit Natwarlal as President director.  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.01.10-21800 dated June 03, 2013. Since then, no changes have been effected in term of its shareholding composition and capital structures to date.

 

      Pursuant to the company’s notary deed, P.T. MOI engaged to operate in main distributor, import and trading of insecticide, pesticide and fertilizer.  The Company’s registered office located at Ruko Metro Kencana VII Blok Q No. 40, Sunter Agung, North Jakarta and the company can open branch offices or representative offices at home and abroad.

 

      P.T. MOI has been operating since April 2009 to deal with trading, import and distribution of agrochemical products such as pesticide and other pigment products.   Mr. Natu Patel, Managing Director of Meghmani Orgianics Limited (MOL) explained that P.T. MOI will function as MOL’s own distribution network for branded products outside India.  In the first phase, retail operations have been set up in the islands of Sumatra and Java, with appointment of some 15 distributors, while in the second phase, the island of Sulawesi will be added with 10 more distributors. Coverage of smaller islands will be planned in a phased manner thereafter, Mr. Patel said.  But according to our observation that since the company started operating commercially until now, the operation of P.T. MOI continued to suffer losses. In fact, since the last three years (2015 to 2017), the company has no sales.  As described in the financial statements, the company incurred losses in recent years and no sales for three recent years.  The condition raises substantial uncertainly on the company’s ability to maintain its viability.

 

      We have noticed that the demand for agrochemical products had increased some 8% to 10% per annum in the last five years in line with the growth of agricultural sector, plantation sector and other estate crops products in the country.  Pursuant to Central Bureau of Statistics (BPS), the production of large estate crops such as; cane sugar, coffee, tea, cocoa, dry rubber and tobacco have been fluctuating in the last five years.  The estate crops activities in Indonesia is seen from the growth production of estate crops as below.

 

                                                                                                         (In 000 tons)

Year

Palm Oil

Palm Kernel

Dry Rubber

Cocoa

Coffee

Tea

Cane Sugar

Tobacco

2004

8,479.3

1,862.0

403.8

54.9

29.2

125.5

2,051.6

2.7

2005

10,119.0

2,155.9

432.2

55.1

24.8

128.2

2,241.7

4.0

2006

10,961.8

2,363.1

554.6

67.2

28.9

115.4

2,307.0

4.2

2007

11,438.0

2,593.2

578.5

68.6

24.1

116.5

2,623.8

3.1

2008

12,477.8

2,829.2

594.6

62.9

28.1

112.8

2,668.4

2.6

2009

13,872.3

3,145.5

522.3

67.6

28.7

107.3

2,333.9

4.1

2010

14,038.1

3,183.1

541.5

65.1

29.0

100.1

2,288.7

3.4

2011

15,198.0

3,446.0

572.8

67.5

22.2

   95.1

2,244.2

2.4

2012

16,817.8

3,363.0

582.8

53.3

29.3

   91.7

2,592.6

2.4

2013

17,771.3

3,554.3

581.5

55.5

30.5

   94.1

1,185.3

3.1

2014

19,072.8

4,089.4

569.7

30.0

31.0

   103.5

1,196.3

2.2

2015

17,070.9

4,246.6

400.9

38.5

40.8

   56.6

   622.3

3.0

2016 *

12,773.6

3,193.5

358.8

35.0

17.0

   36.5

  650.5

2.2

 

      We observed that the financial condition of the company still depends on the financial condition of its shareholders.   In fact, since the last three years (2015 to 2017), the company has no sales.  As described in the financial statements (audited by MMC Consulting), the company incurred losses in recent years and no sales for two recent years.  The condition raises substantial uncertainly on the company’s ability to maintain its viability.  So far we did not hear that the P.T. MOI has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.  Up to present, we have yet to gain the statement of income of P.T. MOI in fiscal 2017.  The Financial Statement of the Company for the years ended on March 31, 2015 and 2016 are below:

 

                                                                                  (Expressed in IDR Currency)

DESCRIPTION

31 March 2016

31 March 2015

ASSETS

 

 

Current Assets

 

 

- Cash & Equivalent Cash

12,239,344

41,914,294

- Bank

1,641,159

1,641,159

- Accounts Receivable

3,371,368,273

3,345,622,283

- Inventory

--

--

- Deposits

5,000,000

5,000,000

- Prepaid Expense

10,666,666

23,333,334

- Prepaid Tax

1,200,000

1,200,000

Total Current Assets

3,402,115,442

3,418,711,070

 

 

 

Non-current Assets

132,475,128

239,824,374

- Net off Accumulated Depreciation

 

 

TOTAL ASSETS

3,534,590,570

3,658,535,444

LIABILITIES AND EQUITY

 

 

Current Liabilities

 

 

- Accounts Payable

3,506,182,041

3,455,474,980

- Tax Payable

--

--

- Others Liabilities

167,649,415

108,936,278

Total Current Liabilities

3,673,831,456

3,564,411,258

 

 

 

Long-term Liabilities

 

 

- Leasing Payable

--

--

- Liabilities – MOL India

8,217,604,766

8,098,760,226

Total Long-term Liabilities

8,217,604,766

8,098,760,226

 

 

 

Total Liabilities

11,891,436,222

11,663,171,484

 

 

 

Stockholders’ Equity

 

 

- Meghmani Organics Limited

2,261,407,500

2,261,407,500

- Patel Natwartal

22,842,500

22,842,500

- Retained Earning

(10,288,886,040)

(8,760,649,852)

- Current Earning of This Year

(352,209,612)

(1,528,236,187)

Total Stockholders’ Equity

(8,356,845,652)

(8,004,636,039)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

3,534,590,570

3,658,535,444

PROFIT AND LOSS STATEMENT

 

 

- Sales Revenue - Net

--

--

- Cost of Good Sold

--

--

- Gross Profit

--

--

- Total Operating Expenses

205,164,363

230,091,220

- Profit (Loss) From Operation

(205,164,363)

(230,091,220)

- Total Other Income (Expense) - net

(147,045,249)

(1,298,144,967)

- Profit (Loss) Before Tax

(352,209,612)

(1,528,236,187)

- Corporate Income Tax

--

--

- Profit (Loss) After Tax

(352,209,612)

(1,528,236,187)

 

      Since on May 2013, the management of P.T. MOI is led by Mr. Patel Ankit Natwarlal (32) replacing Mr. Ramanath Mangapuram (51) as President Director.   In daily activities he is assisted by Mr. Ashish Natwarlal Soparkar (66) as director. Beside, they are also assisted by a number of expert staffs in the above business. The Company’s management has 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.

 

       Considering the operation of P.T MOI suffered from loss in fiscal years 2015 to 2017, also economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.37

UK Pound

1

INR 89.71

Euro

1

INR 78.89

IDR

1

INR 0.0047

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

VIV

 

 

Report Prepared by :

KET

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.