MIRA INFORM REPORT

 

 

Report Date :

06.02.2014

 

IDENTIFICATION DETAILS

 

Name :

STAR LABORATORIES

 

 

Registered Office :

Jl. Kapas Krampung 135 Surabaya, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

January 2002

 

 

Legal Form :

Sole Proprietary Company

 

 

Line of Business :

Trading, Export and Distribution of Agriculture Products

 

 

No. of Employees :

04

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

STAR LABORATORIES

 

 

Address

 

Head Office

Jl. Kapas Krampung 135

Surabaya, East Java

Indonesia

Phones             - (62-31) 7326592, 70979907

Cell Phone        - (62-816) 525328

Fax                   - (62-31) 7329988

Building Area     - 1 storey

Office Space      - 110 sq. meters

Region              - Commercial

Status               - Rent

 

 

Date of Incorporation :

January 2002

 

Legal Form :

Sole Proprietary Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

Not Available

 

Company Status :

Private Company

 

Permit by the Government Department :

The Department of Finance

Not Available

 

Related Company :

Not available

 


 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital               - Rp. 200 million

 

Owner :

Mr. Budi Harto - 100%

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Export and Distribution of Agriculture Products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

2002

 

Brand Name :

STAR LABORATORIES

 

Technical Assistance :

None

 

Number of Employee :

4 persons

 

Marketing Area :

Domestic (Local)    - 100%

 

Main Customers :

Individuals and Corporate in Surabaya and its surrounding

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ALAM INDORAMA

b. C.V. BUMI DJAJA

c. P.T. ADI SAMPOERNO

d. C.V. PUTRA NUSA

e. C.V. SUMBER BUMI JAYA

f.  C.V. ARSAM PRATAMA

g. C.V. MUKTI JABAR

h. C.V. PRIMATAMA

i.  Etc.

 

Business Trend :

Growing but only slowly

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

Surabaya Branch

Jl. Indrapura No. 35

Surabaya, Branch

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 4,840 million

2012 – Rp. 5,500 million

2013 – Rp. 6,250 million

 

Net Profit (estimated) :

2011 – Rp. 360 million

2012 – Rp. 412 million

2013 – Rp. 470 million

 

Payment Manner :

Almost Promptly

 

Financial Comments :

Satisfactory


 

KEY EXECUTIVES

 

Board of Management :

Director                         - Mr. Budi Harto

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. Budi Harto) is the only person who is authorized to sign the loan on behalf of the company

 

 

CAPABILITIES

 

Management Capability :

Fairly good

 

Business Morality :

Fairly good

 

Credit Risk :

Above average

 

Credit Recommendation :

Credit should be extended under guarantee

 

 

OVERALL PERFORMANCE

 

STAR LABORATORIES (SL) was established in Surabaya (East Java) in January 2002 with the legal status of sole proprietary company. The founder and owner of the company is Mr. Budi Harto, an Indonesian businessman of Chinese extraction. As other companies with the legal status of sole proprietary, the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, at present the company has own capital of about Rp. 200 million and it will be rising in line with the progress of its business operation.  So far, we did not hear that the founders and owners of SL have other businesses within and outside the country.

 

SL has been in operation since 2002 in trading, export import and distribution of agricultural products.   Mr. Siswanto, an export-import staff of the company explained that the whole agricultural products likes slice dried turmeric, dried patchouli leave, clove stem, clove flower, cassia, ginger, slice dried ginger, nutmeg, mace, cardamom, pepper, sesame seed, gum dammar, gum rosin, gum Benjamin, gum copal and many others.  The whole products obtained and bought from farmer in East Java, Sulawesi, Sumatra and others island of Indonesia.  Then, the whole products are exported to the United States of America and Europe Union.  Besides, the company also exported of raw cashew nut to India.  We observed that SL is classified as a small sized company of its kind in the country of which the operation has been 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.   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 SL to be in a quite favorable position for having already got hold of a steady clientele in the East Java and surroundings.    

 

Until this time SL has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.  The management of SL is very reclusive towards outsiders and rejected to disclose its financial condition. We estimate the Company's sales turnover in 2011 reached Rp. 4,840 million increased to Rp. 5,500 million in 2012 rose again to Rp. 6,250 million in 2013 and projected to go on rising by at least 6% in 2014.  The operation in 2013 yielded an estimated net profit of at least Rp. 470 million and the company has an estimated total net worth of at least Rp. 600 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 STAR LABORATORIES is led by Mr. Budi Harto (45) as director, a businessman with more than 10 years of experience in trading and distribution of agricultural products and spice. The company is handled by businessman having wide relation with private businessmen of home and overseas. So far, we have never heard that the company has been filed to the court for controversial cases.

 

STAR LABORATORIES is appraised to be good for business transaction.  However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.45

UK Pound

1

Rs.102.01

Euro

1

Rs.84.35

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.