MIRA INFORM REPORT

Report Date :

06.06.2007

IDENTIFICATION DETAILS

Name :	P.T. SARIMAKMUR TUNGGALMANDIRI

Registered Office :	Jalan Raya Kompos No. 110-A, (Medan - Binjai Km. 12), Desa Pujimulyo, Sunggal, Medan 20351, North Sumatra

Country :	Indonesia

Date of Incorporation :	1992

Legal Form :	Limited Liability Company

Line of Business :	Trading and Distribution of agriculture products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	US$ 7,700,000

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Correct Name of company

P.T. SARIMAKMUR TUNGGALMANDIRI

Address

Head Office & Warehouse

Jalan Raya Kompos No. 110-A

(Medan - Binjai Km. 12)

Desa Pujimulyo, Sunggal

Medan 20351

North Sumatra

Phones - (061) 8454291, 8454292, 8454293

Fax - (061) 8454294

E-mail - spranoto@indosat.net.id

Website - http://www.opal-coffee.com

Land Area - 7,000 sq. meters

Office Space - 4,180 sq. meters

Region - Industrial Zone

Status - Owned

Jakarta Office

Jalan Riau No. 8 A

Menteng

Jakarta Pusat 10350

Phone- (021) 3819111

Fax- (021) 3140043

Land Area - 600 sq. meters

Office Space - 420 sq. meters

Region - Resident

Status - Rent

Date of Incorporation

a. 1992 as C.V. SARI MAKMUR

b. 19 November 1997 as P.T. SARIMAKMUR TUNGGAL MANDIRI

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

No. C2-7517.HT.01.01.TH.’99

Dated 21 April 1999

Company Status

National Private Company

Permit by the Government Department

a. The Department of Trade and Industry

No. SIUP. 10260/02.13.TN/IV/95

Dated 12 April 1995

b. The Department of Finance

No. NPWP. 1.487.291.5-111

Dated 19 November 1997

Related Company

P.T. PALAWI TAMA (Trading and Exporting of Agricultural Products)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 1,000,000,000.-

Issued Capital - Rp. 800,000,000.-

Paid up Capital - Rp. 800,000,000.-

Shareholders/Owners

a. Mr. Suryo Pranoto - Rp. 400,000,000.-

Address : Komplek Taman Putri Hijau Blok B/27

Jl. K.L. Yos Sudarso - Medan

North Sumatra, Indonesia

b. Mrs. Maria Gorethy - Rp. 400,000,000.-

Address : Jl. Kenari No. 7A

Medan, North Sumatra

Indonesia

BUSINESS ACTIVITIES

Lines of Business:

Trading and Distribution of agriculture products

Production Capacity

None

Total Investment

a. Owned Capital - Rp. 12.0 billion

b. Loan Capital - Rp. 2.0 billion

c. Total Investment - Rp. 14.0 billion

Started Operation

1992 when it was named C.V. SARI MAKMUR

Brand Name

None

Technical Assistance

None

Number of Employee

162 persons

Marketing Area

Domestic (Local) - 20%

Export (Overseas) - 80%

Main Customers

Traditional markets in North Sumatra
Export to Asia, Europe and the USA

Market Situation

Very Competitive

Main Competitors

a. P.T. DAKAI IMPEX

b. P.T. ALAM INDORAMA

c. C.V. BUMI DJAJA

d. P.T. ADI SAMPOERNO

e. C.V. PUTRA NUSA

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

P.T. MANDIRI Tbk.

Jalan Bukit Barisan No. 112

Medan, North Sumatra

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2004 – Rp. 480.0 billion

2005 – Rp. 520.0 billion

2006 – Rp. 560.0 billion

Net Profit (Loss) :

2004 – Rp. 19.0 million

2005 – Rp. 22.5 million

2006 – Rp. 26.0 million

Payment Manner :

Average

Financial Comments :

Fairly Strong

KEY EXECUTIVES

Board of Management :

President Director - Mr. Suryo Pranoto

Director - Mrs. Maria Gorethy

Board of Commissioner :

Commissioner - None

Signatories :

President Director (Mr. Suryo Pranoto) or Director (Mrs. Maria Goethy).

CAPABILITIES

Management Capability :

Good

Business Morality

Good

Credit Risk

Below Average

Credit Recommendation

Credit can be proceeded normally

Proposed Credit Limit

Moderate amount

Maximum Credit Limit

US$ 7,700,000 on the 90 days of the payment

OVERALL PERFOMANCE

The company originally named C.V. SARI MAKMUR it was established in Medan, North Sumatra in early 1992 with a legal status of C.V. (Commanditaire Vennootschaap) or partnership with sleeping partners. Founders and original owners are Mr. Harahap and Mr. Siregar indigenous businessmen. In March 1995, entire shares went over into Mrs. Maria Gorethy as active partner and her younger sister Miss Christina Goretti as silent partner. In November 1997, the company was renamed to P.T. SARIMAKMUR TUNGGALMANDIRI (P.T. ST) with a legal status of P.T. (Perseroan Terbatas) or limited liability company with authorized capital of Rp.1,000,000,000.- issued capital Rp. 800,000,000.- wholly paid-up. Its latest shareholding composition are Mrs. Maria Gorethy and Mr. Suryo Pranoto Indonesian of Chinese extraction. The deed of amendment was made by Mr. Sartono Simbolon, SH., a public notary in Binjei, Medan under Company Registration Number C2-7517.HT.01.01.TH.99, dated 21 April 1994. We see that Mrs. Maria Gorethy also have a company named P.T. PALAWI TAMA engaged in trading and exporting of agricultural products.

P.T. ST has been in commercial operation since 1992 dealing with export of agricultural products such as coffee seeds, chocolates, cinnamon, areca nuts, pepper flowers and other spices. The company manages a warehouse doubling as its head office being located at Jalan Raya Kompos No. 110-A, Medan – Binjai Km. 12, Sunggal Medan District, North Sumatra on a land of 7,000 square meters. The operation of the company had been running smoothly up to end 1993. Since that time the operation of the company had kept on declining and even not in operation in early 1994. By the changing of P.T. ST’s ownership in March 1995, the operation of the company has been reactivated . Mr. Surya Pranoto, the president director of the company, said that the agricultural products are directly gained from farmers, collectors in North Sumatra, Aceh, Lampung and others. He went on to say that the agricultural products are exported to Japan, Singapore, the USA, European countries, Malaysia and others. He added that to support its activities, the company opened branch offices in Lampung (Lampung Province), Surabaya (East Java) and Makassar (South Sulawesi). Only branch office of Lampung has the authority to export directly the agricultural products. P.T. ST is classified as a large sized company of its kind in Medan, North Sumatra of which the operation had been running smoothly and growing steadily in the last four years up to end 2005.

We have noticed that the demand for agricultural products had increased some 10% to 11% per annum in the last five years in line with the growth of industrial manufacturing in the country and international market. In the coming years, the growth rate of demand is estimated at about 6% to 7% per annum. The present market situation for agricultural products is very competitive for a large number of similar companies operating in the country. Meanwhile, competition is quite heavy in the export import of agricultural products with many companies now doing business in this field in Indonesia. We consider P.T. ST to be in a quite favorable position for having already got hold of a steady clientele in the country and abroad.

The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly. We have checked to Department of Trade and Industry and found that no financial statement has been reported.

The management of P.T. ST is very reclusive towards outsiders and rejected to disclose its financial condition. However, we estimated that total sales turnover of the company in 2004 amounted to Rp. 480.0 billion went up to Rp. 520.0 billion in 2003 to Rp. 560.0 billion in 2006 and projected to rising by 10% in 2007. The operation of the company in 2006 is estimated to have gained a profit of Rp. 26.0 billion with an estimated networth of Rp. 120.0 billion.

So far, we have never heard of P.T. ST having been black listed by Bank Indonesia (Central Bank) and registered in district court for detrimental cases. The company has a punctual payment habit within 1 to 3 months.

The management is led by Mr. Suryo Pranoto (53), but, the primemover is Mrs. Maria Gorethy (52) with 15 years experiences in agricultural trading and exportation. The management well-experienced and run by professional managers who maintain wide relation with agricultural products collectors and farmers in various Indonesian agricultural centers. The company also maintains wide relation with overseas business persons. So far, we have never heard of the management of the company having been involved in business malpractices.

P.T. ST appraised quite feasible for normal business transaction. Considering economic condition in the country remains unstable, we recommend to have an adequate collateral from the shareholders in dealing with any new loans.

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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