MIRA INFORM REPORT

 

 

Report Date :

16.09.2013

 

IDENTIFICATION DETAILS

 

Name :

C.V. CAHAYA CIPTA UTAMA

 

 

Registered Office :

Jalan Simo Katrungan Kidul VI No. 1, Kelurahan Banyu Urip, Kecamatan Sawahan, Surabaya, 60254, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

2005’s

 

 

Legal Form :

Partnership with Sleeping Partner

 

 

Line of Business :

Trading, Import and Distribution of Agriculture Commodities Products

 

 

No. of Employees :

8 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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

 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 more than 6% annually in 2010-12. 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 fiscal deficit below 3%, 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 2013 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 high oil prices.

 

Source : CIA

 

 


 

Name of Company

 

C.V. CAHAYA CIPTA UTAMA

 

 

Address

 

Head Office

Jalan Simo Katrungan Kidul VI No. 1

Kelurahan Banyu Urip, Kecamatan Sawahan

Surabaya, 60254

East Java

Indonesia

Phone               - (62-31) 3540240

Fax                   - (62-31) 4538090

E-mail               - lhpj76@gmail.com

Building Area    - 1 storey

Office Space    - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation

 

2005’s

 

 

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

Not Available

 

 

Related Company

 

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 200 million

 

Shareholders/Owners :

a. Mr. Leonardo (Active Partner)

b. His wife Mrs. Leonardo (Silent Partner)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Import and Distribution of Agriculture Commodities Products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

2005’s

 

Brand Name :

Cahaya Cipta Utama

 

Technical Assistance :

None

 

Number of Employee :

8 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Traditional markets

 

Market Situation :

Very Competitive

 

Main Competitors :

a. C.V. CAHAYA CITRA GEMILANG

b. C.V. HARAPAN PUTRA

c. C.V. MARINE RESOURCES PERKASA

d. C.V. PUTRA NUSA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

Jalan Dr. Sutomo 118

Surabaya, East Java

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 2.5 billion

2011 – Rp. 2.8 billion

2012 – Rp. 3.0 billion

 

Net Profit (estimated) :

2010 – Rp. 0.1 billion

2011 – Rp. 0.2 billion

2012 – Rp. 0.3 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Leonardo

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. Leonardo) 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

 

 

OVERALL PERFORMANCE

 

Based on investigation results the correct of the Subject is C.V. CAHAYA CIPTA UTAMA not C.V. CHAYA CIPTA UTAMA as stated in your order ref. no. 234786 dated 3 September 2013.

 

C.V. CAHAYA CIPTA UTAMA (C.V. CCU) was established in Surabaya, East Java in 2005’s with the legal status of C.V.(Commanditaire Vennootschap) or Partnership with Sleeping Partner. The founding owners of the company are Mr. Leonardo as active partner and his wife Mrs. Leonardo as silent partner. Both are indigenous business family. 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. 200 million.

 

C.V. CCU is a small size company started since 2005 engaged in the field of trading, import and distribution of agriculture commodities products. The company import of agriculture commodities products among others are ground nuts, garlic, red onion, mung bean and others. Mr. Leonardo, Director and owner of the company went on to say the company import of ground nuts and garlic of India; red onion from Thailand, Vietname, mung bean from China and others. Then, the whole product like garlic, red onion and ground nut marketed locally through traditional market in Gresik, Sidoarjo, Surabaya and East Java. We find that C.V. CCU'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 since August 2013 have adversely affected the company's operations for having caused the sales prices of the fruit and agro commodities product the company is selling, which have mostly been imported, to be very highly priced.

 

      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 C.V. CCU to be in a quite favorable position for having already got holds of a steady customer in the country.

 

 

 

Until this time C.V. CCU has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of the company is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2010 amounted to Rp. 2.5 billion rose to Rp. 2.8 billion in 2011 increased to Rp. 3.0 billion in 2012 and projected to go on rising by at least 4% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 300 million. 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. CCI is led by Mr. Leonardo (50) a businessman with experience in trading, import and distribution of agriculture commodities products. The company's management is handled by a number of 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. In view C.V. CAHAYA CIPTA UTAMA operation has been slowdown and classified a small size company we recommend to treat prudently in extending a loan to the company.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.78

UK Pound

1

Rs.100.70

Euro

1

Rs.84.66

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.