MIRA INFORM REPORT

 

 

Report Date :

27.05.2014              

 

IDENTIFICATION DETAILS

 

Name :

C.V. SEKAWAN

 

 

Registered Office :

Jl. Orde Baru No. 4, (Jl. Raya Binjai Km. 12.5), Medan, North Sumatra

 

 

Country :

Indonesia 

 

 

Year of Establishment :

1987

 

 

Legal Form :

Partnership with Sleeping Partner

 

 

Line of Business :

Export Import of Agricultural Products.

 

 

No. of Employees :

50 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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Indonesia 

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% 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 also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

 

Source : CIA

 

 

 


Company name

 

C.V. SEKAWAN

 

 

AddresS

 

Head Office & Warehousing

Jl. Orde Baru No. 4

(Jl. Raya Binjai Km. 12.5)

Medan

North Sumatra

Indonesia

Phones             - (62-61) 8451189, 8467526

Fax                   - (62-61) 8467252

Email                - heriadylian@cvsekawan.com

Website            - http://www.cvsekawan.com

Land Area         - 2,000 sq. meters

Office Space      - 1,600 sq. meters

Region              - Industrial Zone

Status               - Rent

 

 

Date of Incorporation

 

1987

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

Not Required

 

 

Company Status

 

National Private Company

 

 

Permit by the Government Department

 

Not Available

 

 

Related Company

 

C.V. AGRO MAS (Trading and Exporter of Agricultural Products)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital   : Rp. 2.5 billion

 

Owners :

a.  Mr. Heriady Lian (Active Partner)

b. Miss Dewi Lian (Silent Partner)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Export Import of Agricultural Products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1987

 

Brand Name :

None

 

Technical Assistance :

None

 

Number of Employee :

50 persons

 

Marketing Area :

a. Export    - 98%

b. Local      -   2%

 

Main Customer :

Buyers in Malaysia, Singapore, India, Pakistan, Nepal, Philippine, China and local distributors

 

Market Situation :

Very Competitive

 

Main Competitors :

a. C.V. PRIMATAMA

b. P.T. MULTIMULIA LANGGENG

c. C.V. ARSAM PRATAMA

d. P.T. USTRANESIA

e. C.V. MUKTI JABAR

 

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. P.T. Bank CENTRAL ASIA Tbk

    Jalan Jend. Sudirman No. 33

   Medan, North Sumatera

   Indonesia

b. P.T. Bank LIPPO Tbk

    Jalan Pemuda

    Medan, North Sumatera

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 12.0 billion

2012 – Rp. 13.0 billion

2013 – Rp. 14.0 billion

 

Net Profit (estimated) :

2011 – Rp. 1.0 billion

2012 – Rp. 1.2 billion

2013 – Rp. 1.3 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                         - Mr. Heriady Lian

 

Board of Commissioners :

Commissioner               - Ms. Dewi Lian

 

Signatories :

Director (Mr. Heriady Lian) 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

 

 

OVERALL PERFOMANCE

 

C.V. SEKAWAN was established in 1987 in Medan, North Sumatera, with the legal status of Commanditaire Vennootschaaf (C.V) or partnership with sleeping partner. Founders and owners of the company are Mr. Heriady Lian as active partner and his daughter Miss Dewi Lian as silent partner. Both are of Indonesian business family of Chinese origins.  Being as a C.V. company, the amount of its authorized capital was not mentioned at the time of its establishment. We estimate, C.V.  SEKAWAN has own capital of about Rp. 2.5 billion and it will be rising in line with the progress of its business operation. We observe Mr. Heriady Lian is also founder and majority business stakes owners of C.V. AGRO MAS dealing with trading and exporter of agricultural products.

 

C.V. SEKAWAN started with operation since 1987 in the field of export import of agricultural products such as fruits, groundnuts, vegetable, brown beans, mung beans, tobacco products, betel nuts, spices and seasoning, tea, coffee bean, garlic and others. Mr. Heriady Lian, the director and owner of the company explained that the whole products such as groundnuts imported from India, garlic from China and others from others countries. He explained that mung beans, ginger, betel nuts, spices, tea, coffee beans, tobacco, cloves, desiccated coconut, cassia vera, long pepper, dammar batu, gum, cocoa beans and other products is collected from mainland of Indonesia such as from North Sumatera, Nangroe Aceh Darusalam and other cities of Sumatera. The whole products are exported to Malaysia, Singapore, India, Pakistan China, and Nepal. The whole products also supplied through traditional market in North Sumatera such as Medan, Tebing Tinggi, Pematang Siantar. We observe that operation of C.V. SEKAWAN has been growing in the last three years.

 

We have noticed that the demand for agricultural products such as nutmeg and nutmeg oil had increased some 8% to 10% 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 5% to 6% 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. SEKAWAN to be in a quite favorable position for having already got hold of a steady clientele in the Medan. and surroundings.

 

Until this time C.V. SEKAWAN has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. Mr. Heriady Lian explained that sales turnover of the company in 2011 amounted to Rp. 12.0 billion increased to Rp. 13.0 billion in 2012 and rose again to Rp. 14.0 billion in 2013 and projected to go on rising by at least 4% in 2014. It is estimated the company’s operation has gained a net profit of R[/ 1.3 billion. So far, we did not hear 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. SEKAWAN is headed by Mr. Heriady Lian (55), a professional manager and businessman with has experienced for more than 25 years in the field of export import of agricultural products. The management of the company is handled by experienced professional manager having wide relation with private businessmen of home and overseas as well as with the government sectors. 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 of Indonesian political situation is not stable we recommend to treat prudently in extending a loan to the company.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.59

UK Pound

1

Rs.98.66

Euro

1

Rs.79.81

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NIT

 

               

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.