MIRA INFORM REPORT

Report Date :

06.06.2007

IDENTIFICATION DETAILS

Correct Name :	JAPFA COMFEED INDIA LIMITED
Formerly Known As:	JAPFA OBEROI AGRO LIMITED
Registered Office :	7 Sham Nath Marg, Delhi – 110 054.
Country :	India
Financials (as on) :	31.12.2005
Date of Incorporation :	17.11.1995
Com. Reg. No.:	55-73947
CIN No.: [Company Identification No.]	U01222DL1995PLC073947
TAN No.: [Tax Deduction & Collection Account No.]	PNEJ04694E / DELJ02388B
PAN No.: [Permanent Account No.]	AAACJ1855B
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	The company is engaged in Manufacturing and Exporting of Poultry / Cattle Feed/ Integrated Poultry.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	USD 1540000
Status :	Moderate
Payment Behaviour :	Slow and Delayed
Litigation :	Unknown
Comments :	Subject is a joint venture company of Japfa Comfeed, Singapore and Adijaya Guna Satwatama, Indonesia. Subject is an old and established company having moderate track. Company’s profitability is under severe pressure. It has some accumulated losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at ususal trade terms and conditions, with slightly caution initially.

LOCATIONS

Registered Office :	7 Sham Nath Marg, Delhi – 110 054, India
Tel. No.:	91-11-22525464
Fax No.:	91-11-22924958
E-Mail :	Headoffice@japfaindia.com
Factory :	125/126, Soharb Hall, 21 Sasson Road, Pune – 411 001, Maharashtra, India.
Tel. No.:	91-20-26059700
Fax No.:	91-20-26059123

DIRECTORS

Name :	Mr. Santosa Ferry Teguh Handojo
Designation :	Director
Address :	Pregolan Bunder, 32, Surabaya, Indonesia.
Date of Birth/Age :	15.04.1964
Date of Appointment :	19.03.2004
Name :	Mr. Chin Peter Chi Kee
Designation :	Managing Director
Address :	Taman Kebon Jeruk, Block D IV/ 6,Intercon Kebon, Jeruk, Jakarta, Indonesia
Date of Birth/Age :	15.03.1955
Date of Appointment :	27.07.1998
Name :	Mr. Marcus Koesbyanto Setyadharma
Designation :	Director
Address :	JL. Bogor Bagu, Block VIII/ 8, Bogor – 161 44, Indonesia.
Date of Birth/Age :	25.10.1958
Date of Appointment :	19.03.2004
Name :	Mr. Chin How Chung
Designation :	Director
Address :	90, Holland Road, #01-09, Singapore, Malaysian.
Date of Birth/Age :	10.01.1948
Date of Appointment :	12.02.2003
Name :	Mr. Wahjudi Gunawan
Designation :	Director
Address :	Office 400, Orchard Road, # 24-07 Orchard Towers, Singapore – 238 875, Indonesia.
Date of Birth/Age :	05.02.1967
Date of Appointment :	19.03.2004
Name :	Mr. Ashwani Chaloo
Designation :	Director
Address :	125/126, Soharb Hall, 21 Sasson Road, Pune – 411 001, Maharashtra, India.
Date of Birth/Age :	18.08.1969
Date of Appointment :	01.04.2004
Name :	Mr. Koesbyanto Setyadharma
Designation :	Director
Address :	Bogor Baru , Block D VII/8, Tegellega, Bogor 16144, Indonesia
Date of Birth/Age :	25.12.1958
Date of Appointment :	01.01.2003

KEY EXECUTIVES

Name :	Mr. Siddhartha Panda
Designation :	Company Secretary
Address :	8, Mahindra Society, Bagar Road, Pune 411 006, Maharashtra, India
Date of Birth/Age :	15.01.1974
Date of Appointment :	24.04.2007

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Foreign Holdings (Foreign Institutional Investors, Foreign Companies, Foreign Financial Institutions, Non-Resident Indian, or Overseas Corporate Bodies)	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The company is engaged in Manufacturing and Exporting of Poultry / Cattle Feed/ Integrated Poultry.
Products :	Poultry / Cattle Feed/ Integrated Poultry

GENERAL INFORMATION

Bankers :	UTI Bank, Statesman House 148, New Delfi – 110 001, India
Facilities :	--

Banking Relations :	Unknown
Auditors :	Ray and Ray
Name :	Mr. A P Verma Chartered Accountants
Address :	205, Ansal Bhawan, 2^nd Floor, 16, K G Marg, New Delhi – 110 001, India
Holding Company :	Japfa Comfeed International Pte Ltd

CAPITAL STRUCTURE

As on 26.05.2006

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs. 10/- each	Rs. 500.000 millions

As on 18.06.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs. 10/- each	Rs. 600.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39400000	Equity Shares	Rs. 10/- each	Rs. 394.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2005	31.12.2004
SHAREHOLDERS FUNDS
1] Share Capital		394.000	237.761
2] Reserves & Surplus		0.000	0.000
3] (Accumulated Losses)		(9.688)	(10.901)
NETWORTH		384.312	226.860
LOAN FUNDS
1] Secured Loans		403.755	95.738
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		403.755	95.738
TOTAL		788.067	322.598
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		342.428	199.659
Capital work-in-progress		195.946	26.040
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	227.642	57.854
	Sundry Debtors	81.561	57.186
	Cash & Bank Balances	28.687	20.169
	Other Current Assets	4.871	6.407
	Loans & Advances	24.018	8.090
Total Current Assets		366.779	149.706
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	112.794	50.738
	Provisions	4.292	2.250
Total Current Liabilities		117.086	52.988
Net Current Assets		249.693	96.718
MISCELLANEOUS EXPENSES		0.000	0.181
TOTAL		788.067	322.598

PROFIT & LOSS ACCOUNT

PARTICULARS		31.12.2006	31.12.2005	31.12.2004
Sales Turnover		2109.360	1207.419	988.271
Other Income		3.755	1.420	3.897
Total Income		2113.115	1208.839	992.168
Profit/(Loss) Before Tax		(148.321)	4.151	1.789
Provision for Taxation		0.000	0.000	0.000
Profit/(Loss) After Tax		(148.321)	4.151	1.789
Expenditures :
	Raw Material Consumed	1569.633	883.715	621.313
	Consumption of stores and spares parts	25.512	12.726	0.000
	Increase/(Decrease) in Finished Goods	78.675	110.340	0.000
	Salaries, Wages, Bonus, etc.	25.536	23.225	18.054
	Managerial Remuneration	22.497	3.648	2.070
	Payment to Auditors	0.399	0.255	0.252
	Interest	36.242	0.000	0.000
	Insurance Expenses	4.380	2.377	1.976
	Power & Fuel	16.105	5.994	3.398
	Depreciation & Amortization	41.986	24.727	0.000
	Other Expenditure	440.469	285.474	343.316
Total Expenditure		2261.434	1352.481	990.379

KEY RATIOS

PARTICULARS		31.12.2006	31.12.2005	31.12.2004
PAT / Total Income	(%)	(7.02)	0.34	0.18
Net Profit Margin (PBT/Sales)	(%)	(7.02)	0.34	0.18
Return on Total Assets (PBT/Total Assets}	(%)	--	0.45	0.47
Return on Investment (ROI) (PBT/Networth)		--	0.01	0.01
Debt Equity Ratio (Total Liability/Networth)		--	2.35	1.65
Current Ratio (Current Asset/Current Liability)		--	3.13	2.82

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Name of the company	JAPFA COMFEED INDIA LIMITED
Presented By	Rajesh Bagga
1) Date and description of instrument creating the change	Deed of Hypothecation of Machinery and other movable fixed assets dated 25.10.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 78.700 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All the borrowers, movable fixed assets, both present and future, pertaining to the feed mill located at A-11,MIDC, Supa parner, Growth center, parner, Ahamandnagar, Maharashtra.
4) Gist of the terms and conditions and extent and operation of the charge.	As per annenture
5) Name and Address and description of the person entitled to the charge.	UTI Bank Limited, Trishai, 3^rd Floor, Ahamadanagar – 380 006, Branch Office at – 1262/B,Sterling, Plaza, Jangali Maharaj Road,Deecan Gymkhana, Pune – 411 004
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

Name of the company	JAPFA COMFEED INDIA LIMITED
Presented By	Rajesh Bagga
1) Date and description of instrument creating the change	Agreement for hypothecation of current assets dated 25.1.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 90.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All stock in trade, present and future raw material, finished goods, cash stocks in process and all other current assets including depot / sale print at feedmill at Ahmadnagar, Maharashtra, India.
4) Gist of the terms and conditions and extent and operation of the charge.	As per annexure
5) Name and Address and description of the person entitled to the charge.	UTI Bank Limited, Trishai, 3^rd Floor, Ahamadanagar – 380 006, Branch Office at – 1262/B,Sterling, Plaza, Jangali Maharaj Road,Deecan Gymkhana, Pune – 411 004
6) Date and brief description of instrument modifying the charge	N A
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	N A

Corporation identity number (CIN) or foreign company registrations number of the company	U01222DL1995PLC073947
Name of the company	JAPFA COMFEED INDIA LIMITED
Address	7 Sham Nath Marg, Delhi – 110 054, India
This Form is for	Modification of charge
Type of Charges	Equitable mortgage or mortgage of property by depending the title deeds
Particular of the charge holder	ICICI Bank Limited Kandmark Race Cource Circle, Alakpuri, Baroda – 390 015, Gujarat, India
Amount Secure by the charge	Rs. 108.000 millions
Description of the property charge whether it is a charge on	Immovable properties, book debts, stock in trade, others,
Particular of the property charged (including location of the property)	Land of the company as situated at district Nalagonda, state Andhra Pradesh and hatchery building situated at village Chale, district Pune as mentioned in schedule 1 of the declaration dated 26.05.2006 related to deposition of title deeds.
Modification charge Charge identification number of the charge to be modified	80002487
Brief description of the instrument modifying the charge under section 135	Declariation dated 26.05.2006 related to the title deeds
Date of instrument modifying the charge	26.05.2006
Particulars of the present modification	Deposition of title deeds in respect of immovable properties and movable properties.

AS PER WEBSITE:

CORPORATE HISTORY:

Japfa has its roots in copra pellet production back in its early history of the Nineteen-Seventies. The Company was established in 1971 under the name PT Java Pelletizing Factory as a 50 - 50 venture between PT Perusahaan Dagang & Industri Ometraco and International Graanhandel Thegra NV of the Netherlands.

In October 1989, in line with its expansion plan, the Company floated its shares on the Jakarta and Surabaya Stock Exchanges. The public listing, followed by a rights issue in 1990, provided the Company with the financial strength to launch into the animal feed industry.

Japfa subsequently made strategic acquisitions of four companies:
PT Comfeed Indonesia (animal feed), PT Ometraco Satwafeed (animal feed), PT Indopell Raya (pelletizing) and PT Suri Tani Pemuka (shrimp feed). A second wave of acquisitions took place in 1992 when Japfa bought PT Multibreeder Adirama Indonesia (poultry breeding), PT Ciomas Adisatwa (poultry processing operation) and the shrimp farming and cold storage operations of Suri Tani Pemuka.

The string of acquisitions transformed the Company into one of the largest and most integrated poultry / shrimp producers in the country.

POULTRY DIVISION:

Japfa’s Poultry Division is one of the most vertically integrated poultry operations in Indonesia. Its proven business strategy has become what is today a blueprint of success which the Company is using in diversifying into other food businesses and expanding into new markets overseas.

The Poultry division is Japfa’s largest revenue contributor accounting for approximately 83% of annual net sales. It is involved in three principal stages of the production chain: feed production, DOC breeding and chicken processing.

Industry Overview

The domestic poultry industry continues to offer one of the brightest growth prospects in Indonesia. The country’s per capita consumption of chicken is currently among the lowest in Asia. For a predominantly Moslem population, poultry forms the major meat diet.

Historically, poultry production in Indonesia has risen at an average rate of 15% per annum in the period from 1989 to the start of the economic crisis in 1997. Post crisis the growth trend has recommenced, underpinned by an increasing population and increased preference for poultry meat.

For a company to truly succeed in the poultry business, it needs to fully integrate its upstream and downstream operations.

This comprises six production activities: raw materials procurement, feed production, DOC breeding, chicken farming, chicken dressing and processing, and distribution.

In Indonesia, altough there are more than 15 feed companies, two top players (including Japfa) control more than 70% of the total supply.

In a typical poultry feed operation, raw materials account for 90% of the production cost. In 1 kg of poultry feed, half is made up of corn. The remaining ingredients are soybean, rice bran and fish meal. The price of corn thus has a significant effect on the business cost of a feed manufacturer. In addition, only with economies of scale can a feed miller secure raw materials at competitive prices in the international and local grain markets. Furthermore, the transportation cost per unit of raw materials is reduced by volume purchases.

The economic crisis resulted in a rationalization of the key players in the DOC market. Japfa has emerged from the crisis with a larger share of the market. Because of the strong underlying demand for DOCs, there is ample room for growth in both Broiler DOCs and Layer DOCs into the future.

Downstream poultry production involve the processing and distribution of slaughtered chicken. Almost 85% of poultry in Indonesia are sold as live birds and fresh meat at the traditional wet markets, some of which also act as slaugther yards.

The distribution trend is however fast changing. In recent years, Indonesia’s rapidly growing consumer market has fostered the emergence of fast-food restaurants all over the country. In line with this development, there is also increased demand for poultry processed foods, like chicken nuggets.

Feed Production & Milling

With a total production capacity of about 1.6 million tons per annum, Japfa is one of the leading feed manufacturers in the country commanding over one third of the total market. Of the total feed produced by Japfa today, 10% is used for internal breeding opeations while the rest is sold to local farmers and independent distributors.

The Company attributes its success in feed production to five critical factors: a sophisticated feed technology system, an excellent feed formulation strategy, a strong raw materials procurement capability, a high capacity utilization rate, and unrivalled distribution network.

Japfa places equal emphasis on producing high quality feed and maintaining quality consistency of its feed. The Company boasts of an advanced feed technology system which enables it to implement a stringent quality assurance program. By conducting regular bench-marking activities such as laboratory tests, Japfa stays assured that the quality of its feed is constantly higher than that of its major competitor.

In feed formulation, the Company has a team of qualified nutritionists who are capable of tailoring to a particular set of feed specifications. This capability is a major benefit to customers as a precisely formulated feed produces the best results and is also cost efficient.

As a major player, Japfa is in an advantageous position to secure a stable supply of raw materials at competitive prices from both overseas and local suppliers. It buys corn from the USA, China, South Africa, Brazil, and Argentina through forward contracts, and from local corn producers in East Java and Lampung. The Company’s strong procurement clout has enable it to constanly reduce the level of inventories, thus ensuring customers of
fresher products and uninterrupted supplies.

Poultry Breeding

In farming, Japfa enjoys a high level of integration with its subsidiary, PT Multibreeder Adirama Indonesia Tbk. Established in 1985 and publicly listed on the Jakarta and Surabaya Stock Exchanges in 1994, Multibreeder currently operates a number of poultry breeding farms to produce DOCs located throughtout Indonesia. Its annual production capacity is one of the largest in the country, and represents about 20% of the domestic market share. Most of Multibreeder’s DOCs are sold to local commercial farmers.

One of Multibreeder’s major competitive advantage is the provision of specific types of DOCs to best suit customer needs. Closely related to this is the use of strain-specific feed made by Japfa’s feed production plants. To ensure a consistenly high quality output, Multibreeder imports the finest grandparent stock from the world’s leading suppliers such as Aviagen and Lohmann Tierzucht, through which it produces parent stock and final stock, both for layers and broilers.

In staying ahead of the competition, Multibreeder has achieved a high level of operational efficiency. Two particular initiatives implemented in its breeding farms are indeed praiseworthy. The first is a biosecurity system which has dramatically improved sanitation standards. As a result, the farms now enjoyed higher productivity of the parent stock, low mortality rate, reduced loss through mishandling, as well as consistency in DOC size and weight.

The second system aimed at improving its breeding operations, is a performance benchmarking program. This involves defining quality parameters by which Multibreeder’s DOCs are compared farm-to-farm locally, and also against farms in other countries.

AQUACULTURE DIVISION:

Japfa’s Aquaculture Division is managed by a wholly-owned subsidiary, PT Suri Tani Pemuka which is dominant niche player in the local shrimp industry.

Suri Tani has a particular strength in the export of value-added shrimp products and is involved in shrimp breeding and farming, as well as the production of shrimp and fish feed.

Industry Overview

With a stable tropical temperature averaging 26% C throughout the year, Indonesia offers one of the best climates in the world for shrimp farming. Being an archipelago of islands also lends the country to better water conditions surrounding its islands. This conducive feature makes it possible for shrimp farmers to reap at least two harvests per year, which translates into quicker pay back on investment.

The shrimp industry in Indonesia serves primarily the export market. Most of the shrimp produced in Indonesia are exported, mainly to the developed markets such as the US, Japan and Europe. Because shrimp is an expensive source of meat protein in Indonesia, the industry is expected to remain export-oriented until the country’s per capita income improves substantially.

There are a number of local companies engaged in shrimp farming, contributing an annual aggregate production of about 100,000 tons per year. This output makes Indonesia one of the largest shrimp producing countries in Asia after Thailand. Only a few companies including PT Suri Tani Pemuka are major integrated shrimp operators in Indonesia.

Shrimp Processing

The production of downstream shrimp products is Suri Tani Pemuka’s biggest revenue generator. Its vertically integrated shrimp operations have resulted in the company making such high quality shrimp products as ebi sushi, hau kau, shrimp soup and ebi chakin. Most of its sales come from the export markets, the largest being Japan followed by the USA, Canada and Europe.

In addition, it has began to enter the local market, marketing breaded shrimp under the So Good brand. With mounting pressures from the world environment protection bodies which discourage the sourcing of sea-catch shrimps, Suri Tani Pemuka is set to benefit from the rising demand for cultured shrimps. This is evidenced by the increase in the number of international food distributors buying its value-added shrimp products.

Shrimp Culture & Feed Production

100% of Suri Tani Pemuka’s shrimps are cultured to support its internal production, especially of value added products. The Company owns and operates 400 hectares of shrimp farms in East Java and 1,000 hectares in South Kalimantan. In its constant endeavors towards improving the quality of its shrimps, Suri Tani Pemuka has established a multi-species hatchery in 1996 to produce high quality shrimp fries. Located on the pristine waters of North Bali, this first-of-its-kind hatchery is a distinct competitive advantage as it enables the Company to breed exactly the right shrimp species for a particular customer or market.

This innovative facility contributes positively to the Company’s bottom line as the specially cultured shrimp fries reduce mortality rate, thus generating costs savings and higher margins. Suri Tani Pemuka total shrimp fry production capacity exceeds 200 milion per annum.

The Company’s aquaculture feed production exceeds 50,000 tons, is sold to independent aquaculture farmers in Indonesia.

Of the total feed production, 80% is fish feed while the balance is shrimp feed. In the near future, Suri Tani Pemuka plans to further expand its shrimp and fish feed production, especially in other parts of the country.

CONSUMER BUSINESS DIVISION:

The consumer Business Division was formed in late 1996 as a strategic business unit of Japfa. The intention is for this Division to act as a strategic change agent to initiate and create the necessary evolutionary momentum to achieve Japfa’s vision of becoming a mainstream food company.

Accordingly, the aim of the Division is to assemble and build the critical organizational capabilities and culture of a consumer branded food business. Its mission is to apply this capability to intensify the downstream value adding activities to Japfa’s core products.

The Consumer Business Division’s product portfolio today includes processed meat products, confectionary, beverage, value added meat and dairy products. To consolidate its fledging product portfolio, there are plans to expand the business scope to related supplementary products areas over the medium term.

Although only established recently, the Division has already acquired some traditional regional household brands including ‘Hollanda’ for biscuit products, ‘Miami’ for confectionary products and ‘Fresh’ & ‘Orson’ for beverage products. To complement these established brands, it is also developing a distribution network for some new brands including ‘So Good’ for value added meat products and ‘Greenfields and Yahuii’ for dairy products.

With 7 manufacturing sites located close to major population centers, the Divison markets and sells it products through its own distribution network of 4 regional sales branches, servicing directly or indirectly some 250,000 retail customers spread across 25 primary and 117 secondary cities within the archipelago of Indonesia. In addition it has exported to over 30 countries.

To effectively supplement its distribution and sales penetration through traditional distribution channel, the Division has recently invested in the development of an innovative end-user-direct distribution channel in Indonesia. This enables the Division to effectively market its products directly to consumers within large population catchment areas in and around the primary cities of the Java island. This development is driven primarily by the need for a shorter distribution channel for the efficient marketing of frozen and chilled products (value added processed meat products) and fresh or short shelf life products (bakery goods and dairy products).

INTERNATIONAL DIVISION:

Looking beyond Indonesia, Japfa has set its sights on the fast- growing emerging markets of Asia. It is replicating its succes in integrated poultry production in countries that offer tremendous growth potential and where the competition is very fragmented.

Management, however, is adopting a prudent and conservative approach in tackling these new markets. The Company will expand operations only when a solid foundation has been laid.

In 1995, Japfa established its first overseas subsidiary, Japfa Comfeed International Pte Ltd (JCI). Through this Singapore-based company, Japfa is spearheading its international expansion program, capitalizing on the Company’s core competencies in making a differential advantage in new markets. The result of this was the founding of joint venture operations in the promising markets of India and vietnam.

India

In November 1995, JCI formed a joint venture with the Oberoi Group of India to set up an integrated poultry facility in the state of Maharasthra.

As the second most populous country in the world, India’s one billion people offer a market that no major consumer company in the region can afford to ignore. The Indian poultry industry is currently very fragmented with hundreds of small and medium-sized operators.

There are three major players but not one is fully integrated. With an annual per capita consumption of less than 1 kg of poultry, India’s potential for growth in the poultry business is indeed staggering.

Vietnam

JCI formed a subsidiary in Vietnam (Japfa Comfeed Vietnam Ltd.) which will be involved in poultry breeding, the production and marketing of animal feed, the import and export of agriculture products as well as commercial broiler farming. Prospects for the poultry business in vietnam are very attractive given the country’s sizeable population of over 80 milion and an extremely low per capita poultry consumption of 4 kg per annum.

STRATEGIC BUSINESS DIVISION:

Japfa’s investments in strategic businesses are aimed at leveraging on its fundamental business of animal feed production. These strategic operations enable Japfa to improve its product quality and overall competitiveness, while maximizing profit margins across the board.

Poultry Processing

Japfa’s poultry processing operations rank among one of the largest in the country. It owns processing plants in Tangerang, Lampung and Surabaya, which together have the capacity to handle 6,000 birds per hour. The chickens for processing are sourced from independent farmers, contract farmers and Japfa’s commercial farms.

By using state of the art processing plants, Japfa is able to meet the stringent customer demand for consistency, freshness and hygiene. Japfa products have been certified as having met the higest quality standards.

Because of its commitment towards quality excellence, the Company has successfully built a base of institutional customers such as fast-food restaurants and supermarkets chains which account for about 70% of Japfa’s total output.

Woven Bags Manufacturing

In a move to further integrate its operations, Japfa acquired a woven sack factory in 1990. At the time, its output was only 10 milion sacks a year. Since then, its production capacity hasprogressively increased in line with Japfa’s expansion in the feed production business. In 1995, the factory was relocated to bigger premises in East Java where additional manufacturing machinery was installed.

Today, with efficiency improvements in its production line, the woven bag factory produces about 24 milion sacks a year, of which 80% are used to pack Japfa’s animal feed. The balance 20% is exported.

Trading

The trading arm of Japfa plays a supporting role to its poultry business by procuring raw materials for internal feedmill operations. Lower margin trading activities will continue to decrease as the Company steps up its activities in higher margin product lines.

Although the trading activities are small in terms of profit contribution, they are pivotal to the overall performance of the feed business. For in the light of a fluctuating grain market where critical shortages can sometimes happen, the success of the trading arm in securing sufficient supply of raw materials makes all the difference (while other feed manufacturers have to shut down operations). Hence, in leveraging on its knowledge of the grains market, the trading arm is indeed an integral part of Japfa’s feed business.

A Leading Integrated Food Company in the Making

PT JAPFA COMFEED INDONESIA Tbk is one of the largest and most integrated agri-food companies in the country. Its core business activities include animal feed manufacturing, chicken breeding, poultry processing and aquaculture farming.

The company’s outstanding competitive advantages are vertical integration and economies of scale. By linking its upstream and downstream operations, it is able to guarantee superior quality outputs at every level - from feed to value-added food products.

Integration brings the benefits of protection against price volatility, a high degree of biosecurity and enhanced customer-driven practices. Its economies of scale have made Japfa one of the lowest cost food producers in Indonesia.

Japfa already commands a significant share of the domestic poultry market and has successfully achieved strong market positions in many of its business lines. Leveraging on its solid foundation as an agri-based company, Japfa is looking to make new inroads into value added and consumer branded foods with a view to establishing Japfa as a leading integrated food company.

LIST OF ADDRESS:

PT JAPFA COMFEED INDONESIA Tbk

HEAD OFFICE

GRHA PRABA SAMANTA
Jl. Daan Mogot Km. 12 No. 9, Cengkareng
Jakarta 11730, Indonesia
Tel: (62-21) 5448710 / 5448731-32
Fax: 5448709 / 5448683

BRANCH OFFICE

1. WISMA JCI
Jl. HRM. Mangundiprojo Km. 3,5
Sidoarjo 61252, East Java
Tel: (031)8921961
Fax: (031)8963269 / 8921272

2. JCI LAMPUNG
Jl. Laks. Malahayati No. 33
Bandar Lampung 35223, South Sumatera
Tel: (0721)486067/481404/485814
Fax: (0721)486512

3. JCI CIREBON
Jl. A Yani No. 31
Cirebon 45113, West Java
Tel:(0231)2044597
Fax: (0231)208858

4. JCI TANGERANG
Jl. Raya Serang Km. 14,2 - Cikupa
Tangerang 15001, West java
Tel:(62-21)5961888
Fax:(62-21)5960953

5. PT. MULTIPHALA AGRINUSA
Jl. Raya Duyungan (Raya Sragen)
Km 4.5 PO Box 122
Sidoharjo - Sragen 57281
Central Java
Tel:(0271)890609-10, 892651
Fax:(0271)890608

PT MULTIBREEDER ADIRAMA INDONESIA Tbk

HEAD OFFICE

GRHA PRABA SAMANTA
Jl. Daan Mogot Km. 12 No. 9, Cengkareng
Jakarta 11730, Indonesia
Tel: (62-21) 5448710 / 5448731-32

BRANCH OFFICE

1. WISMA JCI 4th Fl
Jl. Hr Moch Mangundiprojo Km. 3,5
Po. Box 204
Sidoarjo 61252, East Java
Tel: (031)8964534
Faxl: (031)8964543

2. Jl. Veteran No. 242
Purwakarta, West Java
Tel: (0264)201040
Faxl: (0264)209360

3. Jl. Laksamana Malahayati 33
Bandar Lampung 35223
Tel: (0721)486067
Faxl: (0721

Fax: 5448709 / 5448683

GRANDPARENT FARM AND HATCHERY

1. MB GUNUNG KAWI
Jl. Nganjum - Gendogo, Desa Balesari
Kec. Ngajum, Kab. Malang

2. PT MULTIPHALA AGRINUSA
Kp. Nenggeng, Desa Neglasari
Kec. Darangdan, Kab. Purwakarta

3. MB BOJONG
Desa Sukamanah, Kec. Bojong Ka.

PARENTSTOCK AND HATCHERY

1. MB DAWUHAN
Jl. Raya Purwodadi - Tutur/Nongkojajar
Desa Dawuhan Sengon
Kec. Purwodadi, Kab. Pasuruan
East Java

2. MB PUCANGSARI
Jl. Raya Bakalan - Sengon Agung
Desa Pucangsari & Sengon Agung
Kec. Purwosari, Kab. Pasuruan

3. MB TOYOMARTO
Jl. Raya Songsong - BIB
Desa Toyomarto
Kec. Singosari, Kab. Malang
Eaat Java

4. MB LEBAK REJO
Jl. Raya Purwodadi - Tutur/Nongkojajar
Desa Lebak Rejo
Kec. Purwodadi, Kab. Pasuruan
East Java

5. MB SUKODERMO
Jl. Raya Bakalan - Sengon Agung
Desa Sukodermo
Kec. Purwosari, Kab. Pasuruan
East Java

6. MB MOJOKERTO
Jl. Raya Pungging - Trawas
Desa Sekargadung & Tempuran
Kec. Pungging, Kab. Mojokerto
East Java

7. MB GRATI (Under Construction)
Desa Celeng, Kelurahan Plososari
Kec. Grati, Kab. Pasuruan
East Java

8. MB BALI
Jl. Raya Antosari - Sririt
Desa Batungsel
Kec. Pupuan, Kab. Tabanan
Bali

9. MB UJUNG PANDANG
Jl. Raya Macopa - Masale
Desa Tompobulu & Damai
Kec. Tanralili, Kab. Maros
South Sulawesi

10. MB CITAPEN
Kp. Citapen, Desa Sukajaya
Kec. Plered, Kab. Purwakarta
West Java

11. MB DARANGDAN
Kp. Sadarkarya, Desa Sadarkarya
Kec. Darangdan, Kab. Purwakarta
West Java

12. MB BOGOR
Desa Sukamantri, Kec. Ciomas
Kab. Bogor
West Java

13. MB KERTASARI
Desa Kertasari, Kec. Bojong
Kab. Purwakarta
West Java

14. MB PAWENANG
Desa Pawenang, Kec. Bojong
Kab. Purwakarta
West Java

15. MB SUBANG I
Desa Tanjung, Kec. Cipunagara
Kab. Subang
West Java

16. MB SUBANG II
Desa Tanjung, Kec. Cipunagara
Kab. Subang
West Java

17. MB GISTING
Desa Gisting Atas Blok 20
Talang Padang, Kec. Tanggamus, Lampung
South Sumatera

18. MB CAMPANG
Desa Campang
Talang Padang, Kec. Tanggamus, Lampung
South Sumatera

19. MB PEMALANG
Desa Kalisaleh, Kec. Belik, Pemalang
Central Java

20. MB SAMARINDA
Desa Tani Bhakti, Kec. Loa Janan,
Kab. Kutai Kertanegara

21. MB PALEMBANG
Desa Segayam, Kec. Gelumbang
Kab. Muara Enim, Palembang

HATCHERY:

1. BATURITI
Dusun Sekar Gula, Desa Mekar Sari
Kecamatan Baturiti,
Kabupaten Tabanan
Bali

2. CIPUNEGARA
Desa Parigimulya,
Kecamatan Cipunegara, Purwakarta
West Java

3. MOJOKERTO
Jl. Raya Pungging, Trawas
Desa Sekargadung,
Kecamatan Pungging, Mojokerto
East Java

4. PEMALANG
Desa Kalisaleh
Kecamatan Belik, Pemalang
West Java

5. TENGARAN
Jl. Raya Salatiga Km 8 - Boyolali
Desa Klero, Kecamatan Tengaran
Semarang
Central Java

6. UJUNG PANDANG
Jl. Raya Macopa, Desa Damai
Kecamatan Tanralili, Kabupaten Maron
Makassar

7. SANDING
Desa Sanding, Kecamatan Petir
Serang, Banten
West Java

PT INDOJAYA AGRINUSA

HEAD OFFICE

 Jl. Medan - Tanjung Morawa
Km.12,8, Ds. Bangunsari,
Deli Serdang

BREEDING FARM

Desa Kacinambun
Kecamatan Tiga Panah
Kaban Jahe

HATCHERY

Tanjung Morawa
Jl. Tirtadeli
Desa Tanjung Morawa A
Kecamatan Tanjung Morawa

BREEDING FARM & HATCHERY

  Jl. Raya Pakan Baru
Bangkinang Km 27.8
Ds.Kualu, Kec. Tambang
Pakanbaru

PT CIOMAS ADISATWA

HEAD OFFICE

 GRHA PRABA SAMANTA
Jl. Daan Mogot Km. 12 No. 9, Cengkareng
Jakarta 11730, Indonesia

POULTRY PROCESSING:

 1. Jl. Raya Popoh, Desa Semambung
Wonoayu, Sidoarjo
East Java

2. Jl. Raya Negeri Sakti Km. 12
Lampung, South Sumatera

BRANCH OFFICE:

1. Jl. Puncak Buring Indah B7 No. 10
Malang
East Java

2. Jl. Ikan Belida No. 74
Teluk Betung, Lampung
South Sumatera

COMMERCIAL BROILER FARM:

1. BULULAWANG I
Desa Kasri, Kecamatan Bululawang
Malang
East Java

2. BULULAWANG II
Desa Kasri, Kecamatan Bululawang
Malang
East Java

3. BULULAWANG III
Desa Kasri, Kecamatan Bululawang
Malang
East Java

4. TAMANSARI
Dusun Bernung, Desa Taman Sari
Kecamatan Gedong Tataan
South Lampung

5. BATANG HARI
Desa Batang Hari Ogan
Kecamatan Tegineneng
South Lampung

6. SALAHUDIN
Dusun Salahudin, Desa Negeri Sakti
Kecamatan Gedong Tataan
South Lampung

PT SURI TANI PEMUKA

HEAD OFFICE

Jl. Hrm. Mangundiprojo Km. 3,5
Sidoarjo 61252
East Java

BRANCH OFFICE

Jl. Tj. Morawa Km. 12,8
Desa Bangunsari, Medan
North Sumatera

SHRIMP AND FISH FEED MILL

1. Jl. Gatot Subroto 100
Bulusan, Klatak, Banyuwangi
East Java

2. Jl. Hrm. Mangundiprojo Km. 3,5
Sidoarjo 61252
East Java

3. Jl. A. Yani No. 31
Cirebon 45113
West Java

COLD STORAGE

1. Jl. Gatot Subroto 100
Bulusan, Klatak, Banyuwangi
East Java

2. Ujung Baru, Bati-bati
South Kalimantan

SHRIMP POND

1. Watukebo, Rogojampi
Banyuwangi
East Java

2. Bomo I, II, III, Rogojampi
Banyuwangi
East Java

3. Telaga Langsat & Kuala Tambangan
Tanah Laut, Takisung
South Kalimantan

4. PT. ARTHA LAUTAN MULYA - Karang Tekok
Sumber Anyer, Banyu Putih
Situbondo
East Java

5. PT. KRAKSAAN WINDU
Asembakor & Kebon Agung, Kraksaan
Probolinggo
East Java

6. PT. BUMI ASRI LESTARI
Lamongan, Arjasa, Situbondo
East Java

7. PT. SUMATERA KREASI SAMUDERA
Tanjung Ibus, Purwosari, Secanggang
Langkat
North Sumatera

8. Sobo, Banyuwangi
East Java

SHRIMP HATCHERY:

1. Desa Pemuteran, Kec. Gerogak
Kab. Buleleng, Singaraja
Bali

2. Jl. HM. Nurung Rt 3
Desa Kp. Baru, Pagatan
Kab. Kota Baru
South Kalimantan

PT SUPRA SUMBER CIPTA

HEAD OFFICE:

GRHA PRABA SAMANTA
Jl. Daan Mogot Km. 12 No. 9, Cengkareng
Jakarta 11730, Indonesia

BRANCH OFFICE:

1.GRHA PRABA SAMANTA
Jl. Daan Mogot Km. 12 No. 9, Cengkareng
Jakarta 11730, Indonesia

2.Jl. Halteu Selatan No. 7/77
Jend. Sudirman, Bandung
West Java

3.Jl. Tapak No. 1 A
Tugu, Semarang
Central java

4.Jl. Kali Kepiting No. 145
Surabaya
East Java

STRATEGIC BUSINESS:

1. CORN DRIER:

Sinar Sari, Kalirejo
Central Lampung - Lampung

Seputih Jaya, Gunung Sugih
Central Lampung - Lampung

Labuhan Ratu, Way Jepara
Central Lampung - Lampung

Trimulyo, Metro Kibang
Central Lampung - Lampung

Ketapang, Penengahan
South Lampung - Lampung

Jl. Yos Sudarso No. 2
Denanyar - Jombang

Desa Tegal Panjang
Kecamatan Wanaraja - Garut

Jl. Raya 162
Asem Bagus - East Java

Jl. Raya Pallangga No. 5
Gowa - Makassar

2. EDIBLE OIL AND PALLETIZING:

Jl. Nilam Barat 5-9
Surabaya 60165, East Java

Indonesia Pelleting
Jl. Ir. Sutami Km. 18,2
Tanjung Bintang
South Lampung

3. WOVEN PLASTIC BAG FACTORY:

Jl. Popoh
Semambung, Wonoayu
Sidoarjo 61261, East Java

4.. TRADING AND INVESTMENT

JAPFA COMFEED INTERNATIONAL PTE. LTD.
400 Orchard Road
#24-07 Orchard Towers
Singapore 238875

JAPFA OBEROI AGRO LTD.
125 Sasson Road
Pune 41 1001
India

JAPFA COMFEED VIETNAM LTD.
Huong Canh Townlet
Binh Xuyen District
Vinh Phuc Province
Vietnam

5. EXPERIMENT FARM & TRAINING

Expo Farm
Banjarkemantren, Buduran
Sidoarjo - East Java

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.40.98
UK Pound	1	Rs.80.98
Euro	1	Rs.54.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		38

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%)

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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