MIRA INFORM REPORT

Report Date :

20.04.2011

IDENTIFICATION DETAILS

Name :	P.T. ROCK INTERNATIONAL TOBACCO
Registered Office :	Citra Buana Centre Park 3 Lot 6-7, Jl. Engku Putri, Batam Centre, Batam, Kepri Province
Country :	Indonesia
Date of Incorporation :	20.03.2003
Com. Reg. No.:	No. AHU-75479.AH.01.02.Tahun 2008
Legal Form :	Limited Liability Company
Line of Business :	White Cigarette Manufacturing

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$ 2,500,000
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 – 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. ROCK INTERNATIONAL TOBACCO

company Address

Head Office & Factory

Citra Buana Centre Park 3 Lot 6-7

Jl. Engku Putri, Batam Centre

Batam, Kepri Province

Indonesia

Phones - (62-778) 471692, 471693

Fax - (62-778) 471699

Land Area - 12,620 sq. meters

Building Space - 6,800 sq. meters

Region - Industrial Zone

Status - Rent

Date of Incorporation

20 March 2003

Legal Form

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

Company Reg.No.

The Ministry of Law and Human Rights

No. AHU-75479.AH.01.02.Tahun 2008

Dated 20 October 2008

Company Status

Foreign Investment Company (PMA)

Permit by the Government Department

The Department of Finance

NPWP No. 02.319.627.2-215.000

The Capital Investment Coordinating Board

- No. 845/I/PMA/2002

Dated 02 December 2002

- No. 9/Industri/PMA/III/2005

Dated 28 March 2005

- No. 90/II/PMA/2006

Dated 03 April 2006

Holding Company

ROCK INTERNATIONAL HOLDING Ltd., of (Investment Holding)

Affiliated Company

PT. ROCK INTERNATIONAL INDONESIA (Trading, Export and Import of Consumer Goods)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - US$. 2,000,000.-

Issued Capital - US$. 1,200,000.-

Paid up Capital - US$. 1,200,000.-

Shareholders/Owners :

a. Rock International Holdings Limited - US$ 1,199,500.- (99.96%)

Address : 355 Barkly Wharf,

Le Caudan Waterfront Port Louis

Mauritius

b. Mr. Choo Tiong Choon - US$ 500.- ( 0.04%)

Address : 39 King Albert Park

Singapore 598321

Singapore

BUSINESS ACTIVITIES

Lines of Business :

White Cigarette Manufacturing

Production Capacity :

White Cigarettes - 1.0 billion sticks p.a.

Total Investment :

a. Equity Capital - US$. 950,000

b. Loan Capital - US$. 150,000

c. Total Investment - US$. 1,100,000

Started Operation :

2004

Brand Names :

a. ROCK

b. ROKI

c. Etc.

Technical Assistance :

None

Number of Employee :

310 persons

Marketing Area :

Domestic - 20%

Export - 80%

Main Customers :

The Publics and Export to Singapore, Malaysia, Korea, Thailand, India, etc.

Market Situation :

Very Competitive

Main Competitors :

a. P.T. GUDANG GARAM Tbk

b. P.T. HM SAMPOERNA Tbk

c. P.T. Pabrik Rokok DJARUM

d. P.T. PHILIP MORRIS INDONESIA

e. P.T. BENTOEL PRIMA

f. P.T. MINAK JINGGO

g. P.T. NOJORONO

h. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank UOB BUANA Tbk.

Jl. Imam Bonjol, Komplek

Buimi Indah Blok B No. 1

Batam 29432

Indonesia

b. P.T. Bank MANDIRI Tbk

Jl. Imam Bonjol No. 90

Batam, Kepri Province

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated):

2008 – Rp. 145.0 billion

2009 – Rp. 162.0 billion

2010 – Rp. 180.0 billion

Net Profit (estimated) :

2008 – Rp. 7.3 billion

2009 – Rp. 8.2 billion

2010 - Rp. 9.8 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Cheo Tiong Choon

Director - Mr. Lua Eng Jee

Board of Commissioners :

Commissioner - Mrs. Kwan Oon Keong

Signatories :

President Director (Mr. Cheo Tiong Choon) or Director (Mr. Lua Eng Jee) which must be approved by Supervisory Board (Mrs. Kwan Oon Keong)

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

Credit Risk :

Average

Credit Recommendation :

Credit should be proceeded with monitor

Proposed Credit Limit :

Small amount – periodical review

Maximum Credit Limit :

US$ 2,500,000.- on the 90 days of payments

OVERALL PERFORMANCE

P.T. ROCK INTERNATIONAL TOBACCO (P.T. RIT) was established in Batam (Kepulauan Riau Province) in March 2003 with an authorized capital of US 1,000,000 of which US$ 250,000 was issued and fully paid up. The founding shareholders of the company are ROCK INTERNATIONAL HOLDINGS Ltd., of Mauritius (99.96%) and Mr. Cheo Tiong Choon of Singapore (0.04%). The Articles of Association was made by Ruth Widyastuti, SH., a public notary in Batam and it was approved by the Ministry of Law and Human Right in its Decision Letter No. C-13071 HT.01.01.TH.2003 dated 10 June 2003.

The Articles of Association has been changed. In June 2008, the authrozied capital was raised to US$ 2,000,000 of which US$ 1,200,000 was issued and fully paid up. No changes have been effected in term of its shareholding composition and capital structures to date. The amendment Articles of Association was made by Mrs. Diah Guntari L. Soemarwoto, SH., a public notary in Jakarta and it was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-75479.AH.01.02.TH.2008, dated 20 October 2008.

P.T. RIT obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with cigarette manufacturing. The company operates a plant doubling as a head office in Citra Buana Center Park 3 Lot 6-7, Batam Center, Kepulaun Riau Province having been in commercial operation since early 2004 producing full flavor white cigarettes, menthol white cigarettes, light white cigarettes, and menthol light white cigarettes. According to its license, the plant has annual production capacity of 1.0 billion sticks white cigarettes per annum with ROCK, ROKI brand and others. Ms. Devi Setrianti, a corporate secretary of P.T. RIT explained that some 80% of the products are exported to Singapore, Malaysia, Korea, Thailand, India, China and the rest of some 20% is marketed domestically. P.T. RIT is classified as a small sized company of its kind in the country of which the operation has been growing in the last three years.

Generally, demand for cigarette papers has been growing in the last three years in line with the growth of industries and demand for various cigarette products in the country. According to data from the Department of Industry and Trade that the national capacity and production of cigarettes is pictured on the following table:

The production growth of National Cigarettes 2005-2009

(billion sticks)

Type	2005	2006	2007	2008	2009
Clove Cigarette	203.1	204.7	212.9	213.5	212.9
White Cigarette	16.0	21.3	25.1	27.2	28.6
Total	220.1	226.0	238.0	240.7	241.5

Source: Depperin and Gapri is processed by ICB.

The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statements publicly. We have checked to Department of Trade and Industry and found that no financial statement has been reported. The management is very reclusive and unlikely to expose its financial condition to outsider. We estimated that sales turnover of P.T. RIT in 2008 amounted to Rp. 145.0 billion increased to Rp. 162.0 billion in 2009 and rose again to Rp. 180.0 billion in 2010. The operation in 2010 yielded an estimated net profit of at least Rp. 9.8 billion and the company has an estimated total net worth of at least Rp. 60.0 billion.

It is projected that total sales turnover of the company will increase at least 8% in 2011. We observe that P.T. RIT is supported by financially strong behind it. So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.

P.T. RIT's management is headed by Mr. Cheo Tiong Choon (60), a quite creative and dynamic businessman with more than 20 years of experience in the cigarette industry and trade. In day-to-day operations, he is furthermore supported by Mr. Lua Eng Jee (47) as a director. They also are widely connected in national and foreign private business circles. They also maintain good relations with government authorities. 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. ROCK INTERNATIONAL TOBACCO is appraised fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.68
UK Pound	1	Rs.72.56
Euro	1	Rs.63.53

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%)

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