MIRA INFORM REPORT

 

 

Report Date :

03.09.2012

 

IDENTIFICATION DETAILS

 

Name :

C.V. SUMBER ASIA

 

 

 

 

Registered Office :

Jalan Raya Kletek 196-197 Taman, Sidoarjo, 61257 East Java

 

 

Country :

Indonesia

 

 

Year of Establishment :

1970

 

 

Legal Form :

Partnership with sleeping partner

 

 

Line of Business :

Canned Fish (Sardine) Processing

 

 

No. of Employees :

278 persons    

 

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

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. SUMBER ASIA

 

 

Address

 

Head Office & Cold Storage

Jalan Raya Kletek 196-197

Taman, Sidoarjo, 61257

East Java

Indonesia

Phones             - (62-31) 788 2517 (Hunting)

Fax                   - (62-31) 788 2726

E-mail               - info@sumberasia.com

Website            - http://www.sumberasia.com

Building Area    - 5,000 sq. meters

Office Space    - 230 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

1970’s

 

Legal Form :

C.V. (Commanditaire Vennootschap) or partnership with sleeping partner

 

Company Reg. No. :

Not Required

 

Company Status :

Private National Company

 

Permit by the Government Department :

The Department of Finance

Not Available

 

Related Companies :

a.   P.T. INDOPLASTIKA JAYA ABADI (Plastic Products Industry)

b.   P.T. NISON INDONESIA (Canned Fish Processing)

c.   P.T. SURYA OPTIMA NUSA RAYA (Plastic Packaging Industry)

 

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 2.5 billion

 

Owners :

a. Mr. Charles Singgih (Active Partner)

b. Mr. Nicky Singgih (Silent Partner)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Canned Fish (Sardine) Processing

 

Production Capacity :

a.   Canned Fish                              - 5,000 tons p.a.

b.   Animal Feeds                            - 1,000 tons p.a.

 

Total Investment :

None

 

Started Operation :

1970

 

Brand Name :

Sumber Asia

 

Technical Assistance :

None

 

Number of Employee :

278 persons                                   

 

Marketing Area :

Export    - 80%

Local       - 20%

 

Main Customer :

Buyers in India, China, Middle East and Africa

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. AVILA PRIMA SENTRA MAKMUR

b. P.T. BLAMBANGAN FOODPACKERS

c. P.T. MAYA MUNCAR

d. C.V. PASIFIC HARVEST

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

Jalan A. Yani No. 39

Sidoarjo, East Java

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 28.0 billion

2010 – Rp. 30.0 billion

2011 – Rp. 32.0 billion

2012 – Rp. 17.0 billion (January – June)

 

Net Profit (estimated) :

2009 – Rp. 2.9 billion

2010 – Rp. 3.1 billion

2011 – Rp. 3.3 billion

2012 – Rp. 1.8 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Charles Singgih

Manager                                         - Mr. Ridwanto

 

Board of Commissioners :

Commissioner                                 - Mr.. Nicky Singgih

 

Signatories :

Director (Mr. Charles Singgih) is only the authorized person to sign the loan on behalf of the company.

 

 

CAPABILITIES

 

Management Capability :

Good

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

The correct name of the Subject is C.V. SUMBER ASIA not C.V. SUMBER ASIA TRADING COMPANY as stated in your order ref. No. 191434 dated 23 August 2012.

 

C.V. SUMBER ASIA (C.V. SA) was established in 1970 in Sidoarjo, East Java with the legal status of C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partner. The founding and owners of the company are Mr. Nicky Singgih as silent partner and his son Mr. Charles Singgih as active partners both are Indonesian businessmen of Chinese extraction. 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. 2.5 billion.

 

We observe that Mr. Charles Singgih is also founders and business stakes owners of P.T. INDAHPLASTIKA JAYA ABADI engaged in plastic products industry, P.T. NISON INDONESIA in canned fish processing and P.T. SURYA OPTIMA NUSA RAYA in plastic packaging industry.

 

C.V. SA is a private national company operates in 1970 in the field of canned fish (mackerel) processing. The company manages a cold storage located at Jalan Raya Kletek 196-197, Taman, Sidoarjo, East Java standing on 5,000 sq. meters land. Throughout the year, the company has developed a reliable history in the raw material for the animal feed industry. This was proved by numerous national and international clients that have trusted us with their businesses continuously over time. An animal feed material manufacturing division for steam bone meal was added since and C.V. SA has continued to grow better with higher market demands and a steady supply of clients. The company then developed the business even more by expanding into Warehousing in 2002 and Manufacturing Canned Goods at the end 2006. With these new departments, C.V. SA has grown quickly to become one of the foremost runs in the industry. The company produces of canned fish and animal feed products. Mr. Ridwanto, Manager of the company said most of raw material like fish imported from China, India and Yemen.

 

With the experience in fresh fish processing, C.V. SA added its business to include canned food as one of its major products in several types of taste and brands such as BONEX, NISON and FUJISAN. Besides, C.V. SA also produces canned sardines in several types of taste and brands depending on market needs and raw material availability. Besides, fishmeal is an excellent source of protein for poultry feed and aqua feed since it contains adequate quantities of all the essential amino acids required by chickens and fish. C.V. SA produces a wide range of steam dried fishmeal material grading, depending on their protein levels, ranging from 60%-65%. After processing, we conduct thorough tests on our fishmeal to ensure consistent level of high-quality products that satisfy the customer needs for standardization of all levels. The other products is crude fish oil made from fresh fish processing. Depending on the customer needs and requirements, fish oil with custom levels of FFA, Iodine, or Peroxide values are available and can be appropriated into the products. Steam bone meal has become one of the main raw material for poultry feed in the past 30 years. It is widely known as the source of Phosphor, Calcium, and Protein for poultry and can also be used for plants’ fertilizer. Mr. Ridwanto also explained that most of the mackerel (canned fish) exported to India, China, Middle East and Africa. Meanwhile animal feed supplied to various animal feed milling in the country. 

 

Besides, C.V. SA also rents of warehouses located in Kletek, Sidoarjo with sizes from 900m2 to 3735m2 are provided by C.V. SA to meet the customer’s demands. With reliable security, 24 hour access, telephone line, and forklift and scale rentals, the warehouses has been home to several big name companies like Indofood, Charoen Phokpand, Japfa Comfeed, and many more. We observe the operation of C.V. SA has been growing and developing well in the last three years.

 

In overall views we find the demand for fish meal, fish oil and feather meals had been rising by 5% to 6% per year in the last five years, in line with the growth of animal feed industry in the country. The Indonesian water particularly in Indonesian Economic Zone is still dominated by foreign fishing boats who catching fish illegally. The prolonged economic crisis caused the procurement of fishing boats to impede. The absent of banking support caused Indonesian businessmen to find difficulty to add their fishing boats. The Indonesian fisheries products export including shrimp, tuna and others has yet to make any progress in 2008. The protective law on export of Indonesian fisheries products imposed by developed countries including the United States and the European countries through embargo and or very strict security check (must be carried-out through Singapore) will adversely Indonesian 2005's fisheries business. Beside that the steep hike of fuel prices has also made domestic fisheries industry to bottom. The export volume and value of the national fish fresh/frozen and shrimps frozen products in 2005 to 2009 are pictured on the following table.

 

Year

Fish Fresh (Frozen)

Shrimps Frozen

(Thousand Tons)

(US$ Million)

(Thousand Tons)

(US$ Million)

2005

460.7

480.5

133.2

846.9

2006

478.3

479.8

146.2

980.2

2007

390.9

578.0

134.8

920.5

2008

418.1

703.7

140.8

979.8

2009

413.7

636.1

117.2

790.9

 Source: Central Bureau of Statistic (BPS)

 

 

 

 

 

Until this time C.V. SA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of C.V. SA 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. 28.0 billion rose to Rp. 30.0 billion in 2010 increased to Rp. 32.0 billion in 2011. As from January to June 2012 the sales turnover was amounted at Rp. 17.0 billion with an estimated net profit of Rp. 1.8 billion. It is projected the sales turnover will be higher by at least 4% in 2013. We observe that P.T. BBI 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.

 

The management of C.V. SA is headed by Mr. Charles Singgih (48) a businessman and professional manager in canned sardine processing and trading. 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. SUMBER ASIA is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.72

UK Pound

1

Rs.87.95

Euro

1

Rs.69.65

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.