MIRA INFORM REPORT

Report Date :

06.06.2011

IDENTIFICATION DETAILS

Name :	LAVONNE GALLERIE
Registered Office :	Jalan Sultan Hasanuddin 69, Dauh Purikangin, Denpasar 80118, Bali
Country :	Indonesia
Year of Establishment :	1997
Com. Reg. No.:	Not Available
Legal Form :	Sole Proprietary Concern
Line of Business :	Manufacturing and Trading of Jewellery

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$.170,000
Status :	Moderate
Payment Behaviour :	Unknown
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

Name of Concern

LAVONNE GALLERIE

Concern Address

Head Office

Jalan Sultan Hasanuddin 69

Dauh Purikangin

Denpasar 80118, Bali

Indonesia

Phone - (62-361) 484 226

Fax - (62-361) 483 996

Building Area - 320 sq. meters

Office Space - 140 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation

1997’s

Legal Form

Sole Proprietary Concern

Concern Reg. No.

The Ministry of Law and Human Rights

Not Required

Concern Status

Private National Concern

Permit by the Government Department

The Department of Finance

Not available

Related Concern

Not available

CAPITAL AND OWNERSHIP

Capital Structure :

Owned Capital - Rp. 2,500,000,000.-

Shareholder/Owner :

Mrs. Melissa Lim - 100%

BUSINESS ACTIVITIES

Lines of Business :

Jewellery Manufacturing and Trading

Production Capacity :

Not available

Total Investment :

Owned Capital - Rp. 2.5 billion

Started Operation :

1997

Brand Name :

None

Technical Assistance :

None

Number of Employee :

25 persons

Marketing Area :

Local - 60%

Export - 40%

Main Customers :

a. Tourist in Bali

b. Overseas buyer in USA, Europe and Asia

c. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. Silver Bali Jewelry (Ratu Silver)

b. Agabong Fashion and Jewelry

c. Bali Custom Jewelry

d. Gemala Silver Jewelry

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

ABN AMRO BANK

Jl. Teuku Umar No. 10

Block A1-A3

Denpasar, Bali

Indonesia 

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 9.0 billion

2009 – Rp. 10.5 billion

2010 – Rp. 12.0 billion

Net Profit (estimated) :

2008 – Rp. 0.8 billion

2009 – Rp. 0.9 billion

2010 – Rp. 1.0 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mrs. Melissa Lim

Board of Commissioners :

Commissioner - None

Signatories :

The Director (Mrs. Melissa Lim) is the only person who is authorized to sign the loan on behalf of the concern.

CAPABILITIES

Management Capability :

Satisfactory

Business Morality :

Satisfactory

Credit Risk :

Below average

Credit Recommendation :

Credit can be proceeded normally

Proposed Credit Limit :

Small amount – periodical review

Maximum Credit Limit :

US$.170,000 on 90 days D/A

OVERALL PERFORMANCE

LAVONNE GALLERIE (LG) was established in Bali in 1997’s with a status of Sole Proprietary Concern. Founder and owner of the concern is Mrs. Melissa Lim, an Indonesian businesswoman of Chinese extraction. Being as Sole Proprietary Concern, the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, the concern has own capital of about Rp. 5.0 billion and it will be rising in line with the progress of its business operation.

LAVONNE GALLERIE (LG) has been operating commercially since 1997 in the field of jewelry making industry with basic material of silver, gold, white gold, pearls and so forth. This concern is a home industry, which is located at Jalan Hasannudin 69, Denpasar, Bali (an island and the tourism resorts well known in the international world.) LG sells its merchandise (jewelry) directly to t domestic and foreign tourists who come to Bali. In addition, about 30% to 40% of jewelry produced by this concern is exported to several countries including America, Europe and Asia, through the tourists who visited Bali. In 2006, Mrs. Melissa Lim has other jewelry store named ARTWORK8, which specializes in silver and contemporary materials. Besides it has its own design, LG or ARTWORK8 can create jewelry based on the design of its customers. We noticed that LG or ARTWORK8 were shops doubles as a small jewelry maker, but it operations continue to grow in the last three years.

In general we noticed that the demand for gold, silver, diamond, pearl jewelries and other precious stones in the country are still rising about 7% to 8% per year. Increased demand is closely related to the increasing purchasing power and improving Indonesia's economic growth rate. Only the competition is very tight, because so many home industry scale companies which are involved in the field of jewelry industry, mainly located in tourist areas like Bali, Yogyakarta, and also big cities like Jakarta, Medan, Surabaya and Makassar. Indonesian jewelry exports to international markets also show an increase every year. It is estimated the demands for jewelry mentioned above still remain increasing at least 6% in the next two years. But the competition will keep getting tougher.

Until this time LG has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of LG is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the concern in 2008 amounted to Rp. 9.0 billion increased to Rp. 10.5 billion in 2009 rose again to Rp. 12.0 billion in 2010 and projected to go on rising by at least 6% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 1.0 billion and the concern has an estimated total networth of at least Rp. 2.5 billion. So far, we did not heard that the concern having been black listed by the Central Bank (Bank Indonesia). The concern usually pays its debts punctually to suppliers.

The concern is led out by Mrs. Melissa Lim (45), a businesswoman who experienced for more than 15 years in the field of trading and manufacturing of jewelry. She holds a degree in jewelry and metal-smelting. The concern'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 concern being filed to the district court for detrimental cases or involved in any business malpractices. The concern’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. LAVONNE GALLERIE is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.85
UK Pound	1	Rs.73.29
Euro	1	Rs.64.89

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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