MIRA INFORM REPORT

Report Date :

26.02.2011

IDENTIFICATION DETAILS

Name :	TOKO MAS ALAM
Registered Office :	Jalan Songoyudan No. 81, Surabaya, East Java
Country :	Indonesia
Year of Establishment :	1987
Com. Reg. No.:	Not Available
Legal Form :	Sole Proprietary Concern
Line of Business :	Trading, Export – Import of Agricultural Products

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	US$ 92,100
Status :	Moderate
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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
Indonesia	b1	b1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Name of Company

Toko MAS ALAM

company Address

Head Office

Jalan Songoyudan No. 81

Surabaya, East Java

Indonesia

Phones - (62-31) 3533283, 3521852

Fax - (62-31) 3533284

HP - 70581996 (Mr. Gondo Untoro)

Building Area - 1 storey

Office Space - 200 sq. meters

Region - Industrial Zone

Status - Rent

Date of Incorporation

1987’s

Legal Form

Sole Proprietary Company

Company Reg. No.

Not Required

Company Status

Private Company

Permit by the Government Department

Not Available

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

Owned Capital : Rp. 250,000,000.-

Owner :

Mr. Gondo Untoro - 100%

BUSINESS ACTIVITIES

Lines of Business :

Trading, Export – Import of Agricultural Products

Production Capacity :

None

Total Investment :

None

Started Operation :

1987

Brand Name :

Toko Mas Alam

Technical Assistance :

None

Number of Employee :

13 persons

Marketing Area :

Import - 60%

Export - 40%

Main Customer :

Buyers in the India, China, Malaysia, Philippine, Myanmar, Dubai, Pakistan and food processing industries

Market Situation :

Very Competitive

Main Competitors :

a. P.T. ADI SAMPOERNO

b. P.T. ALAM INDORAMA

c. P.T. SUPA SURYA NIAGA

d. TORRYS INDO SPICE

e. Etc.

Business Trend :

Declining

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank CENTRAL ASIA Tbk

Gubeng – Surabaya Branch

Surabaya, East Java

Indonesia

b. P.T. Bank NEGARA INDONESIA Tbk

Jalan Basuki Rachmat

Surabaya, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 8.5 billion

2009 – Rp. 6.5 billion

2010 – Rp. 7.0 billion

Net Profit (estimated) :

2008 – Rp. 680 million

2009 – Rp. 390 million

2010 – Rp. 420 million

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Gondo Untoro

Board of Commissioners :

None

Signatories :

Director (Mr. Gondo Untoro) is only 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$ 92,100 on the 90 days of payments

OVERALL PERFORMANCE

Toko MAS ALAM (Toko MA) was established in 1987’s in Surabaya, East Java with a status of Sole Proprietary Company. Founders and owner of the company is Mr. Gondo Untoro, a Indonesian businessman of Chinese descent. Being as Sole Proprietary Company, the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, the company has own capital of about Rp. 250 million and it will be rising in line with the progress of its business operation.

Toko MAS ALAM (Toko MA) has been operating since 1987 in the field of trading and export-import of agricultural products. Export import and general trading in agricultural commodities spice like chili, tamarin, green mung bean, long pepper, gardamon, garlic, ginger, gambiar, cashew nuts, spices, etc. Mr. Gondo Untoro, the director of the company explained that the whole agricultural products likes chili, groundnut, garlic and other spices is imported from India and China, spice from Dubai, groundnut from Malaysia, Thailand, Philippine, Myanmar and sticky or glutinous rice of Vietnam. Besides, the company also exported the agricultural products likes long pepper to China and India, green mung bean exported to Philippine, gardamon exported to China.

The whole agricultural product like long pepper, tamarin (asam), gardamon, green mung bean, etc., bought from farmers in Lampung, Madura, Central Java, East Java and others island of Indonesia. Then, the whole agricultural products supplied to food processing industries such as P.T. GARUDAFOOD PUTRA PUTRI JAYA, P.T. PACIFIC MILLENIA PANGAN MAKMUR (ORANG TUA Group), and other instant noodles processing and traditional market in Surabaya and other cities in East Java. Besides the above products is also marketed locally through traditional market in East Java and surroundings. However according to Mr. Gondo Untoro, Director of Toko MA disclosed that the operation of the company declining in the last two years due to the decreased of export and import volume of agricultural commodities products.

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 Toko MA to be in a quite favorable position for having already got hold of a steady clientele in the country and abroad.

Until this time Toko MA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of Toko MA is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2008 amounted to Rp.8.5 billion dropt to Rp. 6.5 billion in 2009 increased to Rp. 7.0 billion in 2010 and projected to go on rising by at least 3% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 420 million and the company has an estimated total networth of at least Rp. 1.0 billion. 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 Toko MA is led by Mr. Gondo Untoro (54), a professional manager who has experienced for more than 24 years in the field of trading, export import and distribution of agricultural products. Daily operation he is assisted by his sons namely Mr. Andri Chandra (36) and Mrs. Leni Gunawan (37) as vice directors. 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. Toko MAS ALAM is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.37
UK Pound	1	Rs.73.25
Euro	1	Rs.62.68

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

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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