MIRA INFORM REPORT

Report Date :

24.11.2012

IDENTIFICATION DETAILS

Name :	P.T. SUDHA INTERNATIONAL
Registered Office :	Jalan Penjaringan Sari II Block J No. 7, Surabaya, East Java
Country :	Indonesia
Date of Incorporation :	31.07.2007
Com. Reg. No.:	W7-09228.HT.01.01.TH.2007
Legal Form :	P.T. (Perseroan Terbatas) or Limited Liability Company
Line of Business :	Trading and Exporter of Agricultural Products.
No. of Employees :	11

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 Complaint
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

P.T. SUDHA INTERNATIONAL

Company Address

Head Office

Jalan Penjaringan Sari II Block J No. 7

Surabaya

East Java

Indonesia

Phone - (62-31) 8720811

Fax - (62-31) 8458767

Mobile Phone - 0813-30591975 (Mrs. Sudha Sisodiya)

Building Area - 2 storey

Office Space - 100 sq. meters

Region - Commercial Building

Status - Rent

Date of Incorporation

31 July 2007

Legal Form

P.T. (Perseroan Terbatas) or Limited Liability Company

Company Reg. No.

The Ministry of Law and Human Rights

No. W7-09228.HT.01.01.TH.2007

Dated 21 August 2007

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Department of Finance

NPWP No. 02.476.758.4-615.000

The Capital Investment Coordinating Board

No. 948/I/PMA/2007

Dated 23 July 2007

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure:

Authorized Capital : US$ 400,000.-

Issued Capital : US$ 100,000.-

Paid up Capital : US$ 100,000.-

Shareholders/Owners:

a. Mr. Vishnu Sisodiya - US$ 99,000.-

Address : 677, Dana Gali, Mhow

Indore

India

b. Mr. Pramod Sisodiya - US$ 1,000.-

Address : 1611/6, Sai Vihar Colony Rau

Indore

India

BUSINESS ACTIVITIES

Lines of Business:

Trading and Exporter of Agricultural Products

Production Capacity:

None

Total Investment:

Owned Capital - US$ 400,000.-

Started Operation:

August 2007

Technical Assistance:

None

Number of Employee:

11 persons

Marketing Area:

Export - 100%

Main Customer:

Buyers in India, Pakistan and Nepal

Market Situation:

Very Competitive

Main Competitors:

a. P.T. ASIA AGROMAS ABADI

b. C.V. AR-RAYYAN AGRO INDUSTRI

c. P.T. PERMATA ALAM LESTARI

d. P.T. GLOBAL VISION IMPEX

e. Etc.

Business Trend:

Growing

BANKER, AUDITOR & LITIGATION

Banker:

P.T. Bank MANDIRI Tbk

Jalan Jend. Basuki Rachmat 126

Surabaya, East Java

Indonesia

Auditor:

Internal Auditor

Litigation:

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated):

2009 – Rp. 7.5 billion

2010 – Rp. 8.2 billion

2011 – Rp. 9.6 billion

2012 – Rp. 5.5 billion (January – June)

Net Profit (estimated):

2009 – Rp. 450 million

2010 – Rp. 575 million

2011 – Rp. 595 million

2012 – Rp. 357 million (January – June)

Payment Manner:

Average

Financial Comments:

Satisfactory

KEY EXECUTIVES

Board of Management:

Director - Mr. Vishnu Sisodiya

Marketing Manager - Mrs. Sudha Sisodiya

Board of Commissioners:

Commissioner - Mr. Pramod Sisodiya

Signatories:

Director (Mr. Vishnu Sisodiya) or Marketing Manager (Mrs. Sudha Sisodiya) which must be approved by Board of Commissioner (Mr. Pramod Sisodiya)

CAPABILITIES

Management Capability:

Satisfactory

Business Morality:

Satisfactory

OVERALL PERFORMANCE

P.T. SUDHA INTERNATIONAL (P.T. SI) was established in Surabaya, East Java on 31 July 2007 with the authorized capital of US$ 400,000 issued capital of US$ 100,000 entirely paid up. The founding shareholders of the company are Mr. Vishnu Sisodiya and Mr. Pramod Sisodiya, both are businessmen of India. Based on our knowledge up to writing the report the notary deed of the company has yet been undergone any changes. The deed of amendment was made by Mrs. Lanny Setyawati Djojokusumo, SH, was approved by the Ministry of Law and Human Right in its Decision Letter No. W7-09228.HT.01.01.TH.2007, dated August 21, 2007.

P.T. SI operates under the framework of Foreign Investment (PMA) facilities in trading and export of agricultural products. The company has been operation since August 2007 and exporter of spices and agro commodities like betel nut or areca nut, mace, nutmeg, clove, mung bean (green beans) and other agro commodities. The agricultural products likes nutmeg, mace, clove, gambier, cinnamon, dammar baru, long pepper, cubed cassia and other goods of Indonesia origin.

The agricultural product bought from farmer in Java, North Sumatra, West Sumatra, Jambi, South Sumatra, Lampung, East Java, Central Java, Yogyakarta, Sulawesi, Ambon, Papua and others island of Indonesia. Areca nut or betel nut is aromatic and as astringent and is said to intoxicate when first taken. In India the areca nuts has long been used as a taenifuge for tapeworm. Besides, the product is also used for medicine and cosmetic. Then, the whole products are exported to India, Pakistan, Nepal, Sri Lanka, and Africa. We observed that the company’s operation has been growing 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. Meanwhile, competition is quite heavy in the export import of agricultural products with many companies now doing business in this field in Indonesia. We consider P.T. SI to be in a quite favorable position for having already got hold of a steady clientele in the country and abroad.

Export Volume of Agricultural Products, 2007-2011

(Thousand Tons)

Products	2007	2008	2009	2010	2011
Tea Rubber Coffee Spices Cocoa Bean Tobacco	55,6 8,7 315,5 114,1 381,9 25,6	83,8 9,6 467,9 114,8 382,5 30.0	82,9 10,0 510,1 110,4 440,3 32,8	79,2 13,8 432,7 130,3 433,5 28,0	68,1 10,8 345,9 97,9 214,7 18,8

Export Value of Agricultural Products, 2007-2011

(Million US$)

Products	2007	2008	2009	2010	2011
Tea Rubber Coffee Spices Cocoa Bean Tobacco	73,2 12,3 633,7 258,5 623,1 56,6	125,1 16,3 989,0 283,7 856,2 73,7	144,3 12,8 822,1 239,6 1,088,2 93,7	149,4 33,5 812,3 407,4 1,191,3 73,7	103,2 26,4 817,6 320,4 478,2 49,3

Source: Central Bureau of Statistic, processed by ICB

Until this time P.T. SI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. SI 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. 7.5 billion rose to Rp. 8.2 billion in 2010 increased to Rp. 9.6 billion in 2011. As from January to June 2012 the sales turnover has reached at least Rp. 5.5 billion with a net profit of Rp. 357 million and projected the sales turnover will be rising at least 5% in 2013.

The company has an estimated total networth of at least Rp. 2.5 billion. We observe that P.T. SI is supported by foreign partner with has financially strong and sound behind it. 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.

P.T. SI's management is headed by Mr. Vishnu Sisodiya (40), a businessman and professional manager with has 8 year experience in trading and distribution of agricultural commodities products. Daily activity, he is assisted by Mrs. Sudha Sisodiya (36) as a marketing manager. The management of the company is handled by professional managers having wide relation with private businessmen within and outside the country and with the government sectors as well. We observed that management’s reputation in said business is fairly good. 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. P.T. SUDHA INTERNATIONAL is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.34
UK Pound	1	Rs.88.30
Euro	1	Rs.71.37

INFORMATION DETAILS

Report Prepared by :

SMN

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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