MIRA INFORM REPORT

Report Date :

30.07.2007

IDENTIFICATION DETAILS

Name :	C.V. MAKMUR SEJAHTERA
Registered Office :	Jalan Kihageng Tapa, Desa Astapada Block Nambo, Kecamatan Tengah Tani, Cirebon, West Java
Country :	Indonesia
Date of Incorporation :	1995
Legal Form :	Partnership with Sleeping Partners
Line of Business :	Snack and Jelly Processing

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	US$ 65,000
Status :	Small Company
Payment Behaviour :	Regular
Litigation :	Clear

Name of Company

C.V. MAKMUR SEJAHTERA

Address

Head Office & Factory

Jalan Kihageng Tapa

Desa Astapada Block Nambo

Kecamatan Tengah Tani

Cirebon, West Java

Indonesia

Phone - (62-231) 245 207 (Hunting)

Fax. - (62-231) 236 825

Land Area - 1,500 sq. meters

Factory Space - 800 sq. meters

Region - Industrial Zone

Status - Owned

Marketing Office

Jalan Margomulyo Permai Block AD No. 7

Surabaya 60187

East Java

Indonesia

Phone - (62-31) 749 2051, 749 8150

Fax. - (62-31) 749 8150

Building Area - 2 storey

Office Space - 400 sq. meters

Region - Commercial Building

Status - Rent

Date of Incorporation

1995

Legal Form

C.V. (Commanditaire Vennootschap) or partnership with sleeping partners

Company Reg. No.

Not Required

Company Status

Private Company

Permit by the Government Department

Not Available

Related Company

P.T. MAKMUR INTI SENTOSA (Snack and Jelly Processing)

CAPITAL AND OWNERSHIP

Capital Structure :

Owned Capital : Rp. 400.0 million

Owners :

a. Mr. Sugiarto Salim (Active Partner)

b. Mrs. Sugiarto Salim (Silent Partner)

BUSINESS ACTIVITIES

Lines of Business:

Snack and Jelly Processing

Production Capacity

a. Snack - 1,200 tons p.a.

b. Jelly - 220 tons p.a.

Total Investment

None

Started Operation

1995

Brand Name

DONALD and NICO

Technical Assistance

None

Number of Employee

125 persons

Marketing Area

Domestic - 85%

Export - 15%

Main Customer

Traditional Markets

Market Situation

Very Competitive

Main Competitors

a. P.T. CADBURY INDONESIA

b. P.T. GENERAL FOOD INDUSTRY

c. P.T. TRITEGUH MANUNGGAL SEJATI

d. P.T. ULTRA PRIMA ABADI

e. Etc.,

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

P.T. Bank INTERNATIONAL INDONESIA Tbk

Jalan Pemuda 60-70

Surabaya

East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2004 – Rp. 4.0 billion

2005 – Rp. 4.5 billion

2006 – Rp. 5.0 billion

Net Profit (Loss) :

2004 – Rp. 0.3 billion

2005 – Rp. 0.4 billion

2006 – Rp. 0.5 billion

Payment Manner

Average

Financial Comments

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Sugiarto Salim

Board of Commissioners :

None

Signatories :

Director (Mr. Sugiarto Salim) is only the authorized person to sign the loan on behalf of the company

CAPABILITIES

Management Capability :

Good

Business Morality

Good

Credit Risk

Average

Credit Recommendation

Credit should be proceeded with monitor

Proposed Credit Limit

Small amount – periodical review

Maximum Credit Limit

US$ 65,000.- on the 90 days of payments

OVERALL PERFOMANCE

C.V. MAKMUR SEJAHTERA (C.V. MS) was established in Cirebon, West Java in 1995’s with the legal status of Commanditaire Vennootschap (C.V.) or partnership with sleeping partner. Founders and owners of the company are Mr. Sugiarto Salim as active partner, and his wife Mrs. Sugianto Salim, both are Chinese origin Indonesian business family. Being as a C.V. company, the amount of its authorized capital was not mentioned at the time of its establishment. We estimate, C.V. MS has own capital of about Rp. 400 million and it will be rising in line with the progress of its business operation. We observe that Mr. Sugiarto Salim is also founder and majority business stakes owner of P.T. MAKMUR INTI SENTOSA dealing with snack processing whose plant located in Tangerang, Banten Province.

C.V. MAKMUR SEJAHTERA had been operating since 1995 in the field of sack manufacturing whose plant located at Jalan Kihageng Tapa, Desa Astapada Block Nambo, Cirebon, West Java on a land of 1,500 sq. meters. The plants produce of snack of 1,200 tons and jelly of 220 tons respectively per annum. The whole raw material like corn and chocolate used local products from East Java, Lampung and Sulawesi. The whole product likes snack used DONALD and jelly used NICO brands of which some 85% marketed locally through traditional markets and the rest 15% is exported to Saudi Arabia, Dubai, Palestine, Srilanka, and Pakistan. Mrs. Firma, a marketing and administration staff of Surabaya branch office disclosed, the company has opened a marketing office in Surabaya (Jalan Margomulyo Permai) is to handle the marketing of the product for East of Indonesian region including Surabaya (East Java), Kalimantan, Sulawesi and Irian Jaya. We observe the operation of C.V. MS has been growing and classified a medium size in snack processing in locals.

Generally we find that food industries in the country had been growing by 10% to 12% per year within the last five years in line with the increasing income of the people and rising demand for export. Business position of C.V. MS remains quite well for it has controlled a wide export network and the products have been widely known in the country.

The Development of Capacity of Processing Snack Food, Biscuits and Candy

Type of Products	2003 Capacity (ton) Production (ton) Utility (%)	2004 Capacity (ton) Production (ton) Utility (%)	2005 Capacity (ton) Production (ton) Utility (%)	2006* Capacity (ton) Production (ton) Utility (%)
Processing Chocolate	170,321 95,816 56.26	170,321 95,823 56.26	172,021 93,121 54.13	172,021 96,846 56.30
Candy	96,600 70,000 72.46	94,979 73,039 76.90	94,979 78,389 82.53	94,979 81,525 85.83
Biscuits	210,372 143,053 68.00	210,372 145,579 69.20	232,762 165,383 71.05	232,762 173,652 74.60
Snack Food	17,642 10,585 60.00	17,642 9,175 52.01	17,815 12,247 68.75	17,993 12,859 71.47

Source : Department of Trade and Industry

*) Projected

Until this time C.V. MS has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We observed that total sales turnover of the company in 2004 amounted to Rp. 4.0 billion increased to Rp. 4.5 billion in 2005 and to Rp. 5.0 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 500 million and the company has an estimated total net worth at Rp. 750 million. It is projected that total sales turnover of the company will increase at least 8% in 2007. We observe that C.V. MS is supported by financially fairly strong behind it. So far, we did not hear 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 C.V. MS is led by Mr. Sugiarto Salim (50) a businessman with have 17 years of experience in snack processing and trading. The management is quite creative and having maintained a wide business relation with private businessmen at home and abroad and with the government sectors as well. We observed that management’s reputation in said business is fairly good. So far, we did not hear that the company’s management involved in a dirty business practice 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.

C.V. MAKMUR SEJAHTERA is sufficiently fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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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