MIRA INFORM REPORT

Report Date :

06.07.2011

IDENTIFICATION DETAILS

Name :	C.V. SETIA KARYA UTAMA
Registered Office :	Jalan Puri Anjasmoro Block EE-2 No. 17, Kelurahan Tawangsari, Kecamatan , Semarang Barat, Semarang, Central Java
Country :	Indonesia
Year of Establishment :	2005
Com. Reg. No.:	Not Available
Legal Form :	partnership with Sleeping Partner
Line of Business :	Trading and Distribution of Heavy Equipment and Tools and Nails

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

Maximum Credit Limit :	US$ 78,900
Status :	Satisfactory
Payment Behaviour :	Usually 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^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Indonesia	b1	b1

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

Bottom of Form

Name of Company

C.V. SETIA KARYA UTAMA

company Address

Head Office & Warehouse

Jalan Puri Anjasmoro Block EE-2 No. 17

Kelurahan Tawangsari, Kecamatan Semarang Barat

Semarang

Central Java

Indonesia

Phone - (62-24) 7601669

Fax - (62-24) 7601669

Building Area - 2 storey

Office Space - 200 sq. meters

Region - Commercial

Status - Rent

Branch

Jalan Permata Hijau No. 9

Semarang

Central Java

Indonesia

Phone - (62-24) 3561069

Fax - (62-24) 3561069

Building Area - 1 storey

Office Space - 100 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation

2005’s

Legal Form

C.V. (Commanditaire Veennootschap) or partnership with Sleeping Partner

Company Reg. No.

The Ministry of Law and Human Rights

Not Required

Company Status

Private National Company

Permit by the Government Department

The Department of Finance

Not Available

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

Owned Capital : Rp. 250 million

Owners :

a. Mr. Hariyanto Majiono (Active Partner)

b. Mr. Hengky Prasetio (Silent Partner)

BUSINESS ACTIVITIES

Lines of Business :

Trading and Distribution of Heavy Equipment and Tools and Nails

Production Capacity :

None

Total Investment :

None

Started Operation :

2005’s

Brand Name :

Setia Karya Utama

Technical Assistance :

None

Number of Employee :

13 persons

Marketing Area :

Local - 100%

Main Customer :

Trading and Industrial Shops

Market Situation :

Very Competitive

Main Competitors :

a. C.V. ANUGRAH JAYA

b. C.V. BARU SEJAHTERA

c. C.V. CAHAYA REJEKI

d. C.V. DUA USAHA

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker:

P.T. Bank DBS INDONESIA

Jalan Pandanaran No. 98-100

Semarang, Central Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 5.0 billion

2009 – Rp. 5.5 billion

2010 – Rp. 6.0 billion

Net Profit (estimated) :

2008 – Rp. 300 million

2009 – Rp. 330 million

2010 – Rp. 360 million

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Hariyanto Mujiono

Board of Commissioners :

None

Signatories :

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

CAPABILITIES

Management Capability :

Satisfactory

Business Morality :

Satisfactory

Credit Risk :

Average

Credit Recommendation :

Credit should be proceeded with monitor

Proposed Credit Limit :

Small amount – periodical review

Maximum Credit Limit :

US$ 78,900 on 90 days D/A

OVERALL PERFORMANCE

C.V. SETIA KARYA UTAMA (C.V. SKU) was established in 2005’s in Semarang, Central Java with the legal status of C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partner. The founding and owners of the company are Mr. Hariyanto Mujiono as active partner and Mr. Hengky Prasetio as silent partner. Both are Indonesian businessmen of Chinese descent. As in common in cases of companies with C.V. status, there is no mention in the company’s notarial act of its capital structure. But going by the company’s conditions, we estimate its capital at some Rp. 250 million.

C.V. SKU started to be operating since 2005 to deal with trading and distribution of heavy equipment, components, tools and nails. The company imports of heavy equipment, machinery and components from Japan, and Germany. Meanwhile table handsaw & carriage, sharpener, stretcher, sanding mould, plane, arm-saw, multi rip saw and panel saw press, tools and nails all imported from China, Taiwan and India. According information from Mr. Hariyanto Mujiono, director of the company disclosed that the whole products supplied and distributed through trader and shops of heavy equipment, building contractors, general contractors and industrial manufacturing in Semarang, Central Java. Besides, the hardware and nails supplied and distributed through trader and building material shops in Semarang, Central Java. We observe that C.V. SKU is classified a small size company of its kinds in the country of which operation has been growing slowly in the last three years.

Generally, demand for heavy equipment, tools, nails and other technical equipments had kept increasing by 8% to 10% per annum in the last five years in line with the growth of industrial sectors including woodworking industry, mining and contracting services, building contractor and others other sectors requiring these equipments. It is projected that the demand will keep going up in five years to come. The competition is very tight on account of many similar companies operating in the country. The business position of C.V. SKU is favorable on account of having already established customers and wide marketing networks in the Central Java.

Until this time C.V. SKU has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of C.V. SKU 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. 5.0 billion rose to Rp. 5.5 billion in 2009 increased to Rp. 6.0 billion in 2010 and projected to go on rising by at least 4% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 360 million and the company has an estimated total networth of at least Rp. 0.7 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 C.V. SKU is led by Mr. Hariyanto Mujiono (50) a businessman with experience in trading, import and distribution of heavy equipment component, parts, tools and nails. 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. C.V. SETIA KARYA UTAMA is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.50
UK Pound	1	Rs.71.25
Euro	1	Rs.64.40

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.