MIRA INFORM REPORT

Report Date :

12.11.2014

IDENTIFICATION DETAILS

Name :	C.V. LAM HONG
Registered Office :	Jalan Rangkah 5 No. 22, Surabaya, 60135, East Java
Country :	Indonesia
Date of Incorporation :	1969’s
Legal Form :	Partnership with Sleeping Partner
Line of Business :	Trading and Exporter of Agriculture 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 :	Slow but correct
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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Indonesia	B1	A2

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, 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

BASIC SEARCH

Name of Company :

C.V. LAM HONG

Address :

Head Office

Jalan Rangkah 5 No. 22

Surabaya, 60135

East Java

Indonesia

Phone - (62-31) 371 4883

E-mail - stevani.budiman@hotmail.com

poosandhi@gmail.com

Building Area - 1 storey

Office Space - 120 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation :

1969’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. 250 million

Owners :

a. Mr. Stevani Budiman (Active Partner)

b. Mr. Koh Poo Poo (Silent Partner)

BUSINESS ACTIVITIES

Lines of Business :

Trading and Exporter of Agriculture Products

Production Capacity :

None

Total Investment :

None

Started Operation :

1969

Brand Name :

Lam Hong

Technical Assistance :

None

Number of Employee :

11 persons

Marketing Area :

Local - 100%

Main Customer :

Buyers in Pakistan and India

Market Situation :

Very Competitive

Main Competitors :

a. C.V. ADHIYAKSA SUKSES MANDIRI

b. P.T. ADI SAMPOERNO

c. P.T. DAKAI IMPEX

d. UD. SUMBER JAYA

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

P.T. Bank CENTRAL ASIA Tbk

Jalan Veteran No. 18-24

Surabaya, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2011 – Rp. 6.0 billion

2012 – Rp. 6.6 billion

2013 – Rp. 7.0 billion

2014 – Rp. 3.7 billion (January – June)

Net Profit (estimated) :

2011 – Rp. 360 million

2012 – Rp. 396 million

2013 – Rp. 420 million

2014 – Rp. 220 million (January – June)

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Stevani Budiman

Manager - Mr. Antonius

Board of Commissioners :

Commissioner - Mr. Koh Poo Poo

Signatories :

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

CAPABILITIES

Management Capability :

Satisfactory

Business Morality :

Satisfactory

OVERALL PERFORMANCE

C.V. LAM HONG (C.V. LH) was established in Surabaya, East Java in 1969’s with the legal status of C.V. (Commanditaire Vennootschap) or Partnership with Sleeping Partner. The founding owners of the company are Mr. Koh Poo Poo as silent partner and his son Mr. Stevani Budiman as active partner, both of are Indonesian business family 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. 250 million.

C.V. LH is a private company started to be operating since 1969’s dealing with trading and exporter of agriculture products. The agriculture products are tamarind seeds, cashew nuts, clove, cumin seeds and others. The whole agriculture product is obtained from East Java, Central Java and other Eastern of Indonesia (Sulawesi). According information from Mr. Antonius explained the whole product is exporter to SABRI TRADING CO, LTD., Pakistan and India based on job order basis. We observe that C.V. LH is classified a small sized company of its kinds in the country with 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 C.V. LH to be in a quite favorable position for having already got hold of a steady clientele in Pakistan and India.

Until this time C.V. LH 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 estimated that total sales turnover of the company in 2011 amounted to Rp. 6.0 billion rose to Rp. 6.6 billion in 2012 increased to Rp. 7.0 billion in 2013. As from January to June 2014 the sales turnover has reached at least Rp. 3.7 billion with a net profit of at least Rp. 220 million. It is projected the sales will be rising by at least 5% in 2015. 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 LH is led by Mr. Stevani Budiman (50) a businessman with experience in trading and exporter of agriculture products. 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. LAM HONG is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.55
UK Pound	1	Rs.97.53
Euro	1	Rs.76.48

INFORMATION DETAILS

Analysis Done by :	DIV
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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