MIRA INFORM REPORT

Report Date :

08.12.2012

IDENTIFICATION DETAILS

Name :	C.V. KOBE & LINA FOOD
Registered Office :	Kawasan Indsutri Manis, Jalan Manis Raya No. 15, Kadu – Curug, Tangerang, 15810, Banten Province
Country :	Indonesia
Year of Establishment :	1979
Com. Reg. No.:	Not Available
Legal Form :	Partnership with Sleeping Partner
Line of Business :	Food Seasoning Processing Industry
No. of Employees :	232 employees

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

Status :	Satisfactory
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^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Indonesia	b1	B1

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

Indonesia - ECONOMIC OVERVIEW

Indonesia, a vast polyglot nation, grew an estimated 6.1% and 6.4% in 2010 and 2011, respectively. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a small current account surplus, a fiscal deficit below 2%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2012 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of rising oil prices.

Source : CIA

Name of Company

C.V. KOBE & LINA FOOD

company Address

Head Office & Factory

Kawasan Indsutri Manis

Jalan Manis Raya No. 15

Kadu - Curug

Tangerang, 15810

Banten Province

Indonesia

Phones - (62-21) 591 8805 (Hunting)

Fax - (62-21) 591 8803

E-mail - general@kobe.co.id

export@kobe.co.id

Land Area - 15,000 sq. meters

Building Space - 12,000 sq. meters

Region - Industrial Estate

Status - Owned

Date of Incorporation

1979

Legal Form

C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partner

Company Reg. No.

Not Required

Company Status

National Private Company

Permit by the Government Department

The Department of Finance

NPWP No. 01.593.234.6-411.000

Related Company

P.T. BOGA KARUNIA DWITUNGGAL (Instant Noodle and Food Ingredient Manufacturing)

CAPITAL AND OWNERSHIP

Capital Structure :

Owned Capital : Rp. 1.0 billion

Shareholders/Owners :

a. Mr. Desideria Utomo (Active Partner)

b. Mr. Dipa Agung Utomo (Silent Partner)

BUSINESS ACTIVITIES

Lines of Business :

Food Seasoning Processing Industry

Production Capacity :

a. Flour Seasoning - 700 tons p.a.

b. Coating Mix - 700 tons p.a.

Total Investment :

None

Started Operation :

1979

Brand Name :

Kobe & Lina Food

Technical Assistance :

None

Number of Employee :

232 persons

Marketing Area :

Export - 50%

Local - 50%

Main Customer :

Buyers in Asian countries, Japan, Europe, Scandinavian

Market Situation :

Very Competitive

Main Competitors :

a. P.T. AROMAS CITRA JAYA

b. P.T. FOODEX INTI INGREDIENTS

c. P.T. HEINZ ABC INDONESIA

d. P.T. NESTLE INDOFOOD CITRARASA INDONESIA

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

P.T. Bank CENTRAL ASIA Tbk

Jalan Wahid Hasyim No. 183 A-B

Jakarta Pusat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2009 – Rp. 37.2 billion

2010 – Rp. 38.7 billion

2011 – Rp. 39.5 billion

2012 – Rp. 20.5 billion (January – June)

Net Profit (estimated) :

2009 – Rp. 3.0 billion

2010 – Rp. 3.4 billion

2011 – Rp. 3.7 billion

2012 – Rp. 1.8 billion (January – June)

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mrs. Desideria Utomo

Manager - Mrs. Yenny Purnama

Board of Commissioners :

Commissioner - Mr. Dipa Agung Utomo

Signatories :

Director (Mrs. Desideria Utomo) is only the authorized person to sign the loan on behalf of the company.

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

OVERALL PERFORMANCE

C.V. KOBE & LINA FOOD (C.V. KLF) was established in 1979 with its legal status of C.V. (Commanditaire Vennotscap). The founders and owners of the company originally are the late Mr. Sarwo Agung Utomo, his wife the late Mrs. Hestia Utomo, Indonesian businessman of Chinese extraction. As other companies with the legal status of C.V., the capital of the company is not stated in its deed of establishment. However, we estimated that the capital of C.V. KLF amounted to at least Rp. 1,000,000,000. After the founding shareholders died, the entire business stakes of C.V. KLF were taken over by their daughter and son Mrs. Desideria Utomo and Mr. Dipa Agung Utomo.

We observed that Mrs. Desideria Utomo and Mr. Dipa Agung Utomo are also the founding shareholders of P.T. BOGA KARUNIA DWITUNGGAL (P.T. BKD) dealing with instant noodle and food seasoning manufacturing. Basically the establishment of P.T. BKD is meant for export business. The company’s API (import registration license) number is 280500140. The company was established in early 2004 with an authorized capital of Rp. 600,000,000 with the issued capital of Rp. 550,000,000 entirely paid up. Both shareholders of the company inherited the talent of their mother Mrs. Hestia Utomo (graduated from Industrial Psychologist of the Catholic University of Leuven-Belgium).

C.V. KLF is dealing with foodstuff and food seasoning manufacturing by operating a plant doubling as its head office located at Jalan Manis Raya No. 15, Manis Industrial Estate, Kadu-Curug, Tangerang, Banten Province. Its plant is neighboring with its sister company’s plant, P.T. BOGA KARUNA DWITUNGGAL. Both plants are located on 10,000 sq. meters land. The products being produced by the company include puddings and Jelly under brands of Gong and Frezijel; and coating mix under Kobe and Bali Kitchen brands. The company is also trading flours under Kobe brand including Original Marinade, Spicy Marinade, All in One Barbeque Traditional Seasoning, All in One Kalasan Seasoning, All in One Traditional Fried Chicken, Kentucky Batter Breader, Original Coating Mix, Banana Friter Mix, Garlic Coating Mix, Spicy Coating Mix and others.

In early 2006, the company launched seasoning salt product under brand of Gario brand. Besides that, the company also receives order on various products above based on customer desired taste. Mrs. Desideria Utomo, Director of C.V. KLF, said some 50% of the products of the company marketed locally while the rest 50% for export oriented. We observed that C.V. KLF is one of pioneer companies in the country in food seasoning manufacturing namely for its coating mix. To support its operation, the company has chosen leading food and drink distributors in the country including P.T. RAJAWALI NUSINDO and P.T. SARANA ABADI MAKMUR BESAR.

C.V. KLF is a food manufacturer company located in Indonesia, supply food products to local market and international market. C.V. KLF is a leading player in coating flour mixes for fried chicken in its industry. Besides coating mixes flour the company products many range of products such as Noodles, condiments, seasoning, sauces, sambals and many other Indonesian and Asian authentic cuisines. C.V. KLF customers are Pizza Hut, McDonald, Texas Fried Chicken, Japfa Comfeed and others. The company had been exporting our products to many countries such as Germany, France, Scandinavia and Japan. Besides, C.V. KLF is also cooperation with P.T. QUAKER INDONESIA to repacking Quaker Instant Oatmeal and Quaker Quick Cooking Oatmeal in their factory, Tangerang, Banten Province. The operation of C.V. KLF has been growing and developing well in the last five years.

The demand for ingredients and food ingredients and food seasoning products has kept on rising by 10% to 12% per annum in the last three years in line with the sustained growth in food and beverage processing industry in Indonesia as well as the improving of population income. The demand growth will go on rising by 10% per annum in the next three years. Market competition is very sharp considering many other similar imported products offering on the local markets. C.V. KLF in this case is not doing very badly on account of it has built a fairly close connection with several leading food and beverages, cosmetics processing plants in Indonesia. We are sure that C.V. KLF has high ability to further expand its business in the future.

Until this time C.V. KLF has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of C.V. KLF is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2009 amounted to Rp. 37.2 billion rose to Rp. 38.7 billion in 2010 increased to Rp. 39.5 billion in 2011. As from January to June 2012 the sales turnover has reachedt at least Rp. 20.5 billion with a net profit of Rp. 1.8 billion and the sales its projected to go on rising by at least 5% in 2013. The company has an estimated total networth of at least Rp. 3.0 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 C.V. KLF is led by Mrs. Desideria Utomo (43) a businessman and professional manager with experience in food seasoning processing industry and trade. She graduated from Melbourne University majoring in Law. Meanwhile his young brother Mr. Dipa Agung Utomo (42) is also graduated from RMIT University, Australia. 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. We are convinced that C.V. KOBE & LINA FOOD is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.20
UK Pound	1	Rs.86.99
Euro	1	Rs.70.22

INFORMATION DETAILS

Report Prepared by :

MNL

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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