MIRA INFORM REPORT

Report Date :

27.07.2011

IDENTIFICATION DETAILS

Name :	C.V. EKA WIRA UTAMA
Registered Office :	Jalan Biduk 27, Medan, 20112, North Sumatera
Country :	Indonesia
Year of Establishment :	2005
Com. Reg. No.:	Not Available
Legal Form :	Partnership with Sleeping Partners
Line of Business :	Trading and Supply of Mechanical Electrical Equipment, Pig Iron and Cathode Bars

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$ 65,000
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 – 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. EKA WIRA UTAMA

Company Address

Head Office

Jalan Biduk 27

Medan, 20112

North Sumatera

Indonesia

Phone - (62-61) 4550221

Fax - (62-61) 4579314

Building Area - 2 storey

Office Space - 100 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation

2005’s

Legal Form

C.V. Commanditaire Vennootschap or Partnership with Sleeping Partners

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. 350 million

Owners :

a. Mrs. Nurleli Wongso (Active Partner)

b. Mr. Iwan Wongso (Silent Partner)

BUSINESS ACTIVITIES

Lines of Business :

Trading and Supply of Mechanical Electrical Equipment, Pig Iron and Cathode Bars

Production Capacity :

None

Total Investment :

None

Started Operation :

2005’s

Brand Name :

Eka Wira Utama

Technical Assistance :

None

Number of Employee :

8 persons

Marketing Area :

Local - 100%

Main Customer :

P.T. INALUM

Market Situation :

Very Competitive

Main Competitors :

a. C.V. AHLI TEKNIK

b. C.V. BERKAH UTAMA

c. C.V. CIPTA UTAMA

d. C.V. DEKO SARANA TEKNIK

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

P.T. Bank NEGARA INDONESIA Tbk

Jalan Dr. Sutomo

Medan, North Sumatera

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 4.0 billion

2009 – Rp. 4.5 billion

2010 – Rp. 5.0 billion

Net Profit (estimated) :

2008 – Rp. 0.3 billion

2009 – Rp. 0.5 billion

2010 – Rp. 0.7 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mrs. Nurleli Wongso

Board of Commissioners :

None

Signatories :

Director (Mrs. Nurleli Wongso) 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$ 65,000 on 90 days D/A

OVERALL PERFORMANCE

C.V. EKA WIRA UTAMA (C.V. EWU) was established in Medan, North Sumatera in 2005’s with the legal status of C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partner. The founding owners of the company are Mrs. Nurleli Wongso as active partner and her husband Mr. Iwan Wongso as silent partner. Both are Indonesian business family of Chinese extractions. 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. 350 million.

C.V. EWU is a private national company dealing with trading and supply of mechanical electrical equipment, mechanical electrical contractors and supply of pig iron and cathode bars. Mr. Sugiarto, technical staff of C.V. EWU disclosed that the company was acted as supplier of mechanical electrical equipment, pig iron and cathode bars for P.T. INDONESIAN ASAHAN ALUMINIUM, the biggest produces of aluminum in Indonesia. According information from Mr. Sugiarto that C.V. EWU has completed the renewal, maintenance of aluminum smelter of P.T. INDONESIA ASAHAN ALUMINIUM (P.T. INALUM). The company cooperation with TOSHIBA, and HITACHI to completed the mechanical electrical of the P.T. INALUM’s factory, Sigura-Gura, North Sumatera. Besides, C.V. EWU is also supplied pig iron and cathode bars which imported from India. Then the pig iron and cathode bars supplied to P.T. INDONESIA ASAHAN ALUMINIUM (P.T. INALUM). We observe the operation of C.V. EWU is categorized a small-sized company of its kinds which operation has been growing and developing slowly in the last three years.

Generally, demand for 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 aluminum copper, smelting copper, steel milling, cement industry and 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. EWU is favorable on account of having already established customers and wide marketing networks in North Sumatra.

Until this time C.V. EWU has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of C.V. EWU 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. 4.0 billion rose to Rp. 4.5 billion in 2009 increased to Rp. 5.0 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. 0.7 billion and the company has an estimated total networth of at least Rp. 1.5 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. EWU is led by Mrs. Nurleli Wongso (56) a businesswoman and professional manager with experience in trading, import and distribution of pig iron, cathode bars and mechanical electrical equipment. 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. EKA WIRA UTAMA is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.29
UK Pound	1	Rs.72.37
Euro	1	Rs.64.17

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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