MIRA INFORM REPORT

 

 

Report Date :

22.09.2014

 

IDENTIFICATION DETAILS

 

Name :

PRIMA COMMODITY LTD

 

 

Registered Office :

Jalan Araya B 8 – 4, Malang, 65126, East Java

 

 

Country :

Indonesia

 

 

Date of Establishment :

1986

 

 

Legal Form :

Sole Proprietary Company

 

 

Line of Business :

Trading and Exporter of Agricultural Commodity Products

 

 

No. of Employees :

5 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 :

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

 


Name of Company

 

PRIMA COMMODITY LTD

 

 

Company Address

 

Head Office

Jalan Araya B 8 – 4

Malang, 65126

East Java

Indonesia

Phones             - (62-341) 2223298, 7056978, 402130

Mobile Phone    - 08135 7514358

Fax                   - (62-341) 485183

E-mail               - primacommodity@yahoo.com

                          primacommodity@hotmail.com

Website            - http://www.vanillaprimacommodity.com

Building Area     - 1 storey

Office Space      - 200 sq. meters

Region              - Housing Complex

Status               - Rent

 

Warehouse

Jalan Araya J 7 No. 20

Malang, 65126

East Java

Indonesia

Phones             - (62-341) 402130

Fax                   - (62-341) 485183

Building Area     - 1 storey

Office Space      - 300 sq. meters

Region              - Industrial Zone

Status               - Rent

 

Date of Incorporation :

1986’s

 

Legal Form :

Sole Proprietary Company

 

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 :

Capital                                            : Rp. 250 million

 

Owners :

Mr. Hermanto Sasmita

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading and Exporter of Agricultural Commodity Products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1986

 

Brand Name :

Prima Commodity

 

Technical Assistance :

None

 

Number of Employee :

5 persons

 

Marketing Area :

Export      - 100%

 

Main Customer :

Buyers in Hong Kong, Australia, England, Philippine, India, and China

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ASIA AGROMAS ABADI

b. C.V. BUMI DJAJA

c. C.V. PUTRA NUSA

d. P.T. TUNASUTAMA SARIPERKASA, Etc

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

P.T. Bank CENTRAL ASIA Tbk

Jalan Jend. A. Yani No. 183

Malang, East Java

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 4.5 billion

2012 – Rp. 5.0 billion

2013 – Rp. 5.5 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. Hermanto Sasmita

 

Board of Commissioners :

None

 

Signatories :

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

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

 

OVERALL PERFORMANCE

 

Based on investigation the correct name of the Subject is PRIMA COMMODITY LTD., not HERMANTO SASMIA PRIMA COMMODITY LTD., as stated in your order ref. no. 286184 dated 13 September 2014.

 

PRIMA COMMODITY LTD., (PC) is a sole proprietary company was established in Malang, East Java in 1986. Founders and owner of the company is Mr. Hermanto Sasmita, an Indonesian businessman of Chinese descent. Being as Sole Proprietary Company, the amount of its authorized capital was not mentioned at the time of its establishment. We estimate, PC has own capital of about Rp. 250 million and it will be rising in line with the progress of its business operation.

 

PC is a sole proprietary company has been operating since 1986 dealing with trading and exporter of agricultural commodities products. The merchandise goods products are vanilla, cardamom, long pepper, nutmeg, pepper, tamarind, black white pepper, chili, spice. The whole products obtained from East Java, Central Java, Lampung, Sulawesi and other cities in the country. Besides, the company is also export of sappan wood, rattan, timber, furniture and wood. The whole agriculture products exported to Hong Kong, Australia, Philippine, India, China, England, and USA. Meanwhile, furniture, art wood and sappan wood exported to England and other counties. We observe that PRIMA COMMODITY LTD., is classified as small sized company of its kinds in the country with operation has been growing and developing well 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 PC to be in a quite favorable position for having already got hold of a steady clientele in overseas.

 

Until this time PC has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of PC 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. 4.5 billion rose to Rp. 5.0 billion in 2012 increased to Rp. 5.5 billion 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. 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 PC is led by Mr. Hermanto Sasmita (57) a businessman with experience in trading, and exporter 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. PRIMA COMMODITY LTD., is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.81

UK Pound

1

Rs.100.06

Euro

1

Rs.78.47

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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.