MIRA INFORM REPORT

Report Date :

02.02.2012

IDENTIFICATION DETAILS

Name :	C.V. SAKAEI
Registered Office :	Jalan Tanjung Sadari No. 46, Surabaya, 60177, East Java
Country :	Indonesia
Year of Establishment :	2006
Com. Reg. No.:	Not Available
Legal Form :	partnership with sleeping partners
Line of Business :	Trading, Import and Distribution of Garlic and Ground Nuts
No. of Employees :	13

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$ 65,700
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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 Company

C.V. SAKAEI

company Address

Head Office

Jalan Tanjung Sadari No. 46

Surabaya, 60177

East Java

Indonesia

Phones - (62-31) 3574684, 3577250

Fax - (62-31) 3571113

Building Area - 1 storey

Office Space - 120 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation

2006’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 Required

Related Company

P.T. SARANG KARYA LINES (Custom Clearance Services)

CAPITAL AND OWNERSHIP

Capital Structure :

Owned Capital : Rp. 200 million

Owners :

a. Mr. Harijono (Active Partner)

b. Mrs. Tati Murjani (Silent Partner)

BUSINESS ACTIVITIES

Lines of Business :

Trading, Import and Distribution of Garlic and Ground Nuts

Production Capacity :

None

Total Investment :

None

Started Operation :

2006’s

Brand Name :

SAKAEI

Technical Assistance :

None

Number of Employee :

13 persons

Marketing Area :

Local - 100%

Main Customer :

Traditional Markets

Market Situation :

Very Competitive

Main Competitors :

a. C.V. AGRO NUSA PERMAI

b. P.T. ASIA AGROMAS ABADI

c. C.V. BUMI DJAJA

d. C.V. PUTRA NUSA

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

P.T. Bank MANDIRI Tbk

Jalan Perak Timur No. 398

Surabaya, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2009 – Rp. 4.3 billion

2010 – Rp. 4.7 billion

2011 – Rp. 5.0 billion

Net Profit (estimated) :

2009 – Rp. 301 million

2010 – Rp. 376 million

2011 – Rp. 400 million

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Harijono

Board of Commissioners :

Commissioner - Mrs. Tati Murjani

Signatories :

Director (Mr. Harijono) 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$ 65,700 on 90 days D/A

OVERALL PERFORMANCE

C.V. SAKAEI was established in Surabaya, East Java based in 2006 with the legal status of C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partner. The founding and owners of the company are Mr. Harijono as active partner and his wife Mrs. Tati Murjani as silent partner. Both are indigenous businessmen. As in common in cases of companies with C.V. status, there is no mention in the company’s notary act of its capital structure. But going by the company’s conditions, Mr. Harijono disclosed the company’s capital at some Rp. 200 million.

C.V. SAKAEI has been operating since 2006 dealing with trading, import and distribution of agricultural commodities. Mr. Harijono, Director and owner of the company went on to say the company import of ground nuts and garlic of India and China; red onion and fresh fruits from China. Then, the whole product like garlic, red onion and ground nut marketed locally through traditional market in Gresik, Sidoarjo, Pasuruan, Surabaya and East Java surroundings. Besides, the company supplies the above products like fresh fruit to several fruit stores, grocery fruits, supermarkets, hotel and restaurant in East Java and surroundings. We find that C.V. SAKAEI's operations have been growing slowly in the last three years. The global economic crisis and very sharp depreciation of the Rupiah to foreign currencies have adversely affected the company's operations for having caused the sales prices of agro commodities product the company is selling, which have mostly been imported, to be very highly priced. It seems to us C.V. SAKAEI is still belongs to a small company with its operation growing slowly in the last three years.

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. Besides, that generally the domestic demand for fruit has been rising by about 6% - 8% per year in the last five years in line with the growing population and increasing income of part of the population in the country.

The demand is projected to go on rising each year in the next five years. Meanwhile, competition is quite heavy in the fruit trade with many companies now doing business in this field in Indonesia. We consider C.V. SAKAEI to be in a quite favorable position for having already got hold of a steady clientele in East Java.

Until this time C.V. SAKAEI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of C.V. SAKAEI 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. 4.3 billion rose to Rp. 4.7 billion in 2010 increased to Rp. 5.0 billion in 2011 and projected to go on rising by at least 4% in 2012. The operation in 2011 yielded an estimated net profit of at least Rp. 400 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 C.V. SAKAEI is led by Mr. Harijono (51) a businessman and professional manager with experience in trading, import and distribution of garlic and ground nuts or agro products. 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. SAKAEI is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.53
UK Pound	1	Rs.77.95
Euro	1	Rs.64.66

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.