MIRA INFORM REPORT

Report Date :

07.04.2011

IDENTIFICATION DETAILS

Name :	P.T. INJA PERKASA TAMA
Formerly Known As :	C.V. INDONESIA JAYA
Registered Office :	Jl. Kertopaten No. 58, Surabaya 60144, East Java
Country :	Indonesia
Year of Establishment :	1940
Com. Reg. No.:	No. AHU-AH.01.10-09589
Legal Form :	Limited Liability Company
Line of Business :	Trading, Import and Distribution of Plastic Sacks, Gunny Bag & Jutes, Foundry Materials and Chemical Products

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

Maximum Credit Limit :	US$ 870,000
Status :	Satisfactory
Payment Behaviour :	Usually 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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Indonesia	b1	b1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Name of Company

P.T. INJA PERKASA TAMA

company Address

Head Office

Jl. Kertopaten No. 58

Surabaya 60144

East Java -Indonesia

Phones - (62-31) 3717966 (Hunting)

Fax - (62-31) 3718692, 3765846

E-mail - ipt@inja.co.id

Website - http://www.inja.co.id

Building Area - 2 storey

Office Space - 230 sq. meters

Region - Commercial

Status - Owned

Branch Office

Jl. Cangkring II Gg Bima III 34

Cirebon 45123

West Java -Indonesia

Phone - (62-231) 201530

Fax - (62-231) 204993

Building Area - 1 storey

Office Space - 120 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation

a. 1940’s as UD. SERBA RUKUN

b. 1970’s as C.V. INDONESIA JAYA

c. 1985 as P.T. INJA PERKASA TAMA

Legal Form

P.T. (Perseroan Terbatas) or Limited Liability Company

Company Reg. No.

The Ministry of Law and Human Rights

a. No. AHU-19499.AH.01.02.TH.2008

Dated 18 April 2008

b. No. AHU-AH.01.10-09589

Dated 21 April 2010

Company Status

National Private Company

Permit by the Government Department :

The Department of Finance

NPWP No. 01.109.091.7-631.000

Related Company

P.T. INJAPLAST (Plastic Woven Bags Manufacturing)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 2,492,000,000.-

Issued Capital - Rp. 2,492,000,000.-

Paid up Capital - Rp. 2,492,000,000.-

Shareholders/Owners :

a. Mr. Hermanto Poernomo - Rp. 1,424,000,000.- (57.14%)

Address : Jl. Dharmahusada Utara 2/2

Surabaya, East Java

Indonesia

b. Mr. Ir. Hasan Poernomo - Rp. 1,068,000,000.- (42.86%)

Address : Jl. Dharmahusada 62

Surabaya, East Java

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Trading, Import and Distribution of Plastic Sacks, Gunny Bag & Jutes, Foundry Materials and Chemical Products

Production Capacity :

None

Total Investment :

None

Started Operation :

1940’s

Brand Name :

IPT

Technical Assistance :

None

Number of Employee :

45 persons

Marketing Area :

Local - 100%

Main Customers :

a. P.T. JAYA SENTOSA

b. P.T. MADJU WARNA STEEL

c. P.T. PERKEBUNAN NUSANTARA X

d. P.T. PERKEBUNAN NUSANTARA XII

e. P.T. RAJAWALI NUSANTARA INDONESIA

f. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. P.T. SIDO BANGUN

b. P.T. HARDO SOLO PLAST

c. P.T. INDO CALI PLAST

d. P.T. SIMONGAN PLASTIC FACTORY

e. P.T. SURYA MULTI INDOPACK

f. P.T. BENUA

g. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank MANDIRI Tbk

Jalan Kembang Jepun No. 168-170

Surabaya, East Java

Indonesia

b. P.T. Bank CENTRAL ASIA Tb

Jalan Kertopaten No. 19 – A

Surabaya, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database and local courts

FINANCIAL FIGURE

Annual Sales (estimated) :

2007 – Rp. 46.0 billion

2008 – Rp. 51.6 billion

2009 – Rp. 58.0 billion

2010 – Rp. 62.5 billion

Net Profit (estimated) :

2007 – Rp. 2.3 billion

2008 – Rp. 2.5 billion

2009 – Rp. 2.9 billion

2010 – Rp. 3.4 billion

Payment Manner :

Almost promplty

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Hermanto Poernomo

Director - Mr. Drs. Tan Leonardus

Board of Commissioners :

Commissioner - Mr. Ir. Hasan Poernomo

Signatories :

President Director (Mr. Hermanto Poernomo) or the Director (Mr. Drs. Tan Leonardus) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

Credit Risk :

Below average

Credit Recommendation :

Credit can be proceeded normally

Proposed Credit Limit :

Moderate amount

Maximum Credit Limit :

US$ 870,000 on 90 days D/A

OVERALL PERFORMANCE

Originally named U.D. SERBA RUKUN, the company was established in Surabaya, East Java in the 1940’s under the status of sole proprietary business by the late Mr. Poo Liok Tong, an Indonesian businessman of Chinese extraction as the original owner. Then in 1970 the company’s name was changed to C.V. INDONESIA JAYA with legal status CV (Commanditaire Vennotschap) or Partnership with sleeping partner. Since the death of Mr. Poo Liok Tong in the late 1970-s all the company's business stakes were taken over by his sons, namely Mr. Tirto Tjahjono Poernomo, Mr. Ir. Hasan Poernomo, Mr. Hermanto Poernomo, Mr. Sigit Poernomo and Mr. Po Cipto Poernomo.

In 1985 the company's name was changed again to P.T. INJA PERKASA TAMA (P.T. IPT) with legal status PT (Perseroan Terbatas) or Limited Liability Company. The company's authorized capital was at that time set at Rp. 500,000,000 wholly issued and paid up. The company notary deed has been changed a couple of times. Originally shareholders of the company are children of the late Mr. Poo Liok Tong. The latest in March 2008, the authorized capital was increased to Rp. 2,492,000,000 entirely was issued and paid up. On the same occasion the whole shares has been controlled by Mr. Hermanto Poernomo (57.14%) and his youngest brother Mr. Ir. Hasan Poernomo (42.86%). The deed of amendment was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-19499.AH.01.02.TH.2008 dated 18 April 2008 and No. AHU-AH.01.10-09589 dated 21 April 2009. No changes have been effected in term of its shareholding composition and capital structures to date. We observe that Mr. Hermanto Poernomo and Mr. Ir. Hasan Poernomo is the founder and business stakes owner of P.T. INJAPLAST, which operates in the plastic sack industry.

P.T. IPT has been in operation since the 1950’s as an importer, trader and supplier of various chemicals, industrial machines, foundry materials and spare parts. Their head office is located in Surabaya, East java with a satellite (branch) office in Cirebon, West Java. The company has been appointed by a Japanese company, SUMITOMO CORPORATION, as an agent for the marketing of metal casting furnaces of the SUMITOMO brand in Indonesia. The products are supplied to a number of metal casting industries in Java Island and in Eastern Indonesia. However, because of the tight competition in the sugar refinery machinery trade, P.T. IPT has been focusing business more on the metal foundry stove and plastic sack industries.

The company now operates in trading and import of gunny bags, jute bags, jute twine and Hessian cloth. Other than that they also import foundry materials such as foundry cokes, foundry pig iron, Ferro silicon, Ferro manganese and graphite powder and chemicals such as phosphoric acid, caustic soda solid and caustic soda flakes. The whole gunny bags and jute is imported from India. In plastic products distribution, P.T. IPT is a distributor for its sister company P.T. INJAPLAST engaged in plastic sack manufacturing. Meanwhile, P.T. IPT is also sells of foundry materials which import from China. The company also import of chemical products from China and other country with above various types.

The whole merchandising goods likes chemical and foundry materials supplied to various metal casting industries among others are P.T. JAYA SENTOSA, P.T. SUMBER BENGAL, P.T. MADJU WARNA STEEL, P.T. BHIRAWA STEEL etc. Meanwhile the plastic sacks, gunny bags and jute supplied to various sugar cane industries among others are P.T. PERKEBUNAN NUSANTARA X, P.T. PERKEBUNAN NUSANTARA X1, P.T. PERKEBUNAN NUSANTARA XII, P.T. RAJAWALI NUSANTARA INDONESIA and other sugar manufacturing. Besides, some of the gunny bags marketed through gunny and plastic retailers in Java and Eastern Indonesia. We find that P.T. IPT is classified as a medium sized company of its kind in the country of which the operation has been growing in the last three years.

We  note  that  generally  the  domestic  demand  for  various  types  of chemicals, gunny bags and plastic bags was rising in the last five years in line with the growth and development of industries in the country. However, since the global economy slowdown since October 2008 the demand has been falling and the purchasing power of consumers has much weakened. The demand is expected to go down further by at least 6% in the next two years as the improving of economic condition in the country since the middle of 2009. Meanwhile, competition is very tight on account of the many companies with similar activities operating in Indonesia. P.T. IPT is not doing too badly in the above business for having already developed a quite wide marketing network, especially in Java.

P.T. ITP has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We estimated that total sales turnover of the company in 2008 amounted to Rp. 51.6 billion increased to Rp. 58.0 billion in 2009 rose again to Rp. 62.5 billion in 2010 and projected to go on rising by at least 8% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 3.4 billion and the company has an estimated total networth of at least Rp. 15.0 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 P.T. IPT is led by Mr. Hermanto Poernomo (63), the third son of the late Mr. Poo Liok Tong, the founder of the company. Mr. Hermanto Poernomo has experience more than 30 years in trading, import and distribution of gunny bags, plastic bas, chemical products and foundry materials. Daily operation he is assisted by Mr. Drs. Tan Leonardus (53) a professional manager as a director of the company. The management is handled by experienced staff in this business, having maintained a wide business relation with private businessmen at home and abroad as well as with government sectors. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. INJA PERKASA TAMA is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.22
UK Pound	1	Rs.72.25
Euro	1	Rs.63.09

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

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.