MIRA INFORM REPORT

Report Date :

16.09.2014

IDENTIFICATION DETAILS

Name :	C.V. SIDO MAKMUR JAYA
Registered Office :	Jalan Karang Asem 4 No. 1A, Kelurahan Gading, Kecamatan Tambaksari, Surabaya, 60133, East Java
Country :	Indonesia
Date of Incorporation :	2008’s
Legal Form :	Partnership with Sleeping Partner
Line of Business :	Trading and Exporter of Agricultural Commodities Products
No. of Employees :	5

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 – June 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

BASIC SEARCH

Name of Company :

C.V. SIDO MAKMUR JAYA

A d d r e s s :

Head Office

Jalan Karang Asem 4 No. 1A

Kelurahan Gading, Kecamatan Tambaksari

Surabaya, 60133

East Java

Indonesia

Phones - (62-31) 381 4695, 352 5555

Fax - (62-31) 381 4238

Building Area - 1 storey

Office Space - 80 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation :

2008’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

Owners :

a. Mr. Hadi (Active Partner)

b. Mrs. Hadi Pujiastuti (Silent Partner)

BUSINESS ACTIVITIES

Lines of Business :

Trading and Exporter of Agricultural Commodities Products

Production Capacity :

None

Total Investment :

None

Started Operation :

2008’s

Brand Name :

Sido Makmur Jaya

Technical Assistance :

None

Number of Employee :

5 persons

Marketing Area :

Export - 100%

Main Customer :

Buyers in Asian countries, Europe

Market Situation :

Very Competitive

Main Competitors :

a. C.V. AGRO NUSA PERMAI

b. P.T. ASIA AGROMAS ABADI

c. C.V. BUMI DJAJA

d. C.V. PUTRA NUSA

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r :

P.T. Bank MANDIRI Tbk

Jalan Veteran 18-24

Gading, Tambaksari

Surabaya, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2011 – Rp. 3.7 billion

2012 – Rp. 4.5 billion

2013 – Rp. 5.1 billion

Net Profit (estimated) :

2011 – Rp. 0.2 billion

2012 – Rp. 0.3 billion

2013 – Rp. 0.4 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Hadi

Board of Commissioners :

Not Available

Signatories :

Director (Mr. Hadi) 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. SIDO MAKMUR JAYA (C.V. SMJ) was established in 2008’s in Surabaya, 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. Hadi as active partner and his wife as silent partner. Both are Indonesian businessmen of Chinese descent. 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. SMJ has been n operation since 2008 in trading, distribution and exporter of agricultural commodities products. Mrs. Eka, the company’s executive staff, said the products being sold are clove, nutmeg, coffee, and sesame. The whole commodities product is obtained from East Java, East Nusa Tenggara, Cental Sulawesi, North Sulawesi, South Sulawesi, Maluku, North Maluku and Sumatera. Later the whole product is exported to Asian countries, Europe, and other countries. Besides, the clove is also supplied to various clove cigarettes industries which operating in East java and surroundings. The global economic crisis and very sharp depreciation of the Rupiah to foreign currencies have adversely affected the company’s operations for having caused the sales prices of the clove, nutmeg, coffee and sesame was soaring, while the demand was dropped. We found that C.V. SMJ’s operations have been growing slowly in the 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. Besides, that generally the domestic demand for fruit has been rising by about 6% - 8% per year in the last five years in line with the growing population and increasing income of part of the population in the country. The demand is projected to go on rising each year in the next five years. Meanwhile, competition is quite heavy in the fruit trade with many companies now doing business in this field in Indonesia.

Until this time C.V. SMJ 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 2011 amounted to Rp. 3.7 billion rose to Rp. 4.5 billion in 2012 increased to Rp. 5.1 billion in 2013 and projected to go on rising by at least 3% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 0.4 billion. 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. SMJ is led by Mr. Hadi (54) a businessman with experience in trading, export import and distribution of agricultural commodities 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. SIDO MAKMUR JAYA is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.99
UK Pound	1	Rs.99.09
Euro	1	Rs.79.03

INFORMATION DETAILS

Report Prepared by :

PDT

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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