MIRA INFORM REPORT

Report Date :

16.08.2011

IDENTIFICATION DETAILS

Name :	P.T. KARYA ANUGERAH JAYA
Registered Office :	Komplek Pergudangan Meiko Abadi Blok B-26 Jalan Raya Betro RT. 05 RW.02 Desa Wedi, Gedangan, Sidoarjo, East Java
Country :	Indonesia
Date of Incorporation :	21.12.2004
Com. Reg. No.:	No. AHU-AH.01.10-04646
Legal Form :	Limited Liability Company
Line of Business :	Trading, Importing and Distribution of Chemicals for food

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	US$ 390,000
Status :	Moderate
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 – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Indonesia	B1	B1

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

Correct Name of Company

P.T. KARYA ANUGERAH JAYA

Address

Head Office

Komplek Pergudangan Meiko Abadi Blok B-26

Jalan Raya Betro RT. 05 RW.02

Desa Wedi, Gedangan,

Sidoarjo, East Java

Indonesia

Phone - (62-21) 8670088, 8011602

Fax - (62-21) 8674052

Building Area - 2 storey

Office Space - 240 sq. meters

Region - Commercial

Status - Rent

Registration data

Date of Incorporation :

21 December 2004

Legal Form :

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

Company Reg. No. :

The Law of Law and Human Rights

a. No. AHU-97099.AH.01.02.Tahun 2008

Dated 16 December 2008

b. No. AHU-59420.AH.01.02.Tahun 2010

Dated 21 December 2010

c. No. AHU-AH.01.10-04646

Dated 21 October 2010

Company Status :

Private National Company

Permit by the Government Department :

The Department of Finance

NPWP No. 02.391.537.4-641.000

Related Company :

Not available

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 6,000,000,000.-

Issued Capital - Rp. 3,000,000,000.-

Paid up Capital - Rp. 3,000,000,000.-

Shareholders/Owners :

a. Mr. Drs. Handoko Hartono - Rp. 300,000,000.- (10%)

Address : Jl. Kalongan Besar No. 26

Surabaya, East Java

Indonesia

b. Mr. Drs. Wellim Hartono - Rp. 1,350,000,000.- (45%)

Address : Jl. Kalongan Besar No. 26

Surabaya, East Java

Indonesia

c. Mrs. Yunita Halim - Rp. 1,350,000,000.- (45%)

Address : Jl. Jambu III/E-42

Sidoarjo, East Java

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Trading, Importing and Distribution of Chemicals for food

Production Capacity :

None

Total Investment :

None

Started Operation :

2005

Brand Name :

None

Technical Assistance :

None

Number of Employee :

22 persons

Marketing Area :

Domestic - 100%

Main Customers :

a. P.T. NISSIN BISCUIT

b. P.T. TIMUR UTAMA PERKASA

c. P.T. SAHABAT EAST FOOD

d. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. P.T. CAFINDO CITRA RASA

b. P.T. ESSENCE INDONESIA

c. P.T. BRATACO CHEMIKA

d. P.T. ALAM KIMIA

e. P.T. TANDUK AIRMAS

f. P.T. KIMIA SARI JAYA SENTOSA

g. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r s :

a. P.T. Bank CENTRAL ASIA Tbk

Surabaya Branch

Jl. Raya No. 18

Gedangan, Sidoarjo

Surabaya, East Java

Indonesia

b. P.T. Bank NEGARA INDONESIA Tbk

Surabaya Branch

Jl. Gubernur Suryo No. 36

Surabaya, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 21.8 billion

2009 – Rp. 24.5 billion

2010 – Rp. 28.0 billion

Net Profit (Loss) :

2008 – Rp. 0.9 billion

2009 – Rp. 1.2 billion

2010 – Rp. 1.4 billion

Payment Manner :

Almost promptly

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Drs. Handoko Hartono

Director - Mr. Budi Hartono

Board of Commissioner :

President Commissioner - Mr. Drs. Wellim Hartono

Commissioner - Mrs. Yunita Halim

Signatories :

President director (Mr. Drs. Handoko Hartono) or Director (Mr. Budi Hartono) which must be approved by Board of Commissioner (Mr. Drs. Wellim Hartono and Mrs. Yunita Halim)

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$ 390,000.- on the 90 days of payments

OVERALL PERFORMANCE

P.T. KARYA ANUGERAH JAYA (P.T. KAJ) was established on December 21, 2004 with an authorized capital of Rp. 2,000,000,000.- of which Rp. 500,000,000.- was issued and fully paid up. The founding shareholders of the company were Mr. Drs. Handoko Hartono (10%), Mr. Drs. Wellim Hartono (45%) and Mrs. Yunita Halim (45%). They are Indonesian businessmen and businesswoman of Chinese extraction. The Articles of Association was made by Mr. Janto Kusuma Koe, SH., a public notary in Gresik (East Java) and it was approved by the Ministry of Law and Human Right in its Decision Letter No. C-05533 HT.01.01.TH.2005 dated March 3, 2005.

The articles of association of the company have frequently been revised. The latest, in October 2010, the authorized capital was raised to Rp. 6,000,000,000.- of which Rp. 3,000,000,000.- was issued and entirely paid up. The Articles of Association amendment was made by Mr. Janto Kusuma Koe, SH., a public notary in Gresik (East Java) under Company Registration Number AHU-59420.AH.01.02.Tahun 2010 dated December 21, 2010 and No. AHU-AH.01.10-04646 dated February 14, 2011. No changes have been effected in term of its shareholding composition and capital structures to date.

P.T. KAJ had been operating since 2005 in the trading, imports and distribution of various chemicals for food such as coloring food, soybean milk powder, health food and drink, food based rice products and others. Mrs. Maria, a marketing staff of the company explained that P.T. KAJ is an agent for ALCO Coloring Food and soybean milk powder, health food and drink products, is produced by P.T. Rajawali Jaya Anugerah of Indonesia. Mrs. Maria added that its coloring food product supplied to various local food and beverage processing plant in East Java like P.T. Nissin Biscuit, P.T. Timur Utama Perkasa, P.T. Sahabat East Food and other such as biscuit and snack food manufacturing, etc. We observed that P.T. KAJ 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.

The demand for coloring food, food ingredients and food seasoning products has kept on rising by 7% to 8% per annum in the last three years in line with the sustained growth in food and beverage processing industry in Indonesia as well as the improving of population income. The demand growth will go on rising by 5% to 6% per annum in the next three years. Market competition is very sharp considering many other similar imported products offering on the local markets such as P.T. Cafindo Citra Rasa, P.T. Essence Indonesia, P.T. Brataco Chemika, P.T. Alam Kimia, P.T. Tanduk Airmas, etc. We are sure that P.T. KAJ has high ability to further expand its business in the future.

Until this time P.T. KAJ has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We observed that total sales turnover of the company in 2008 amounted to Rp. 21.8 billion increased to Rp. 24.5 billion in 2009 and rose again to Rp. 28.0 billion in 2010. The operation in 2010 yielded an estimated net profit by at least Rp. 1.4 billion and the company has an estimated total net worth by at Rp. 6.5 billion. It is projected that total sales turnover of the company will increase at least 10% in 2011. So far, we have never heard of the company having been black listed by the Central Bank (Bank Indonesia). The company disclosed that the company usually pays its debts punctually to suppliers.

The management of P.T. KAJ is led by Mr. Drs. Handoko Hartono (46) as president director who has experienced for more than 12 years in the field of trading, import and supplies of coloring food and soybean milk powder. In daily activities, he is assisted by his younger brother Mr. Budi Hartono (39) as director. We observed that management’s reputation in said business is fairly good. The company has had wide relation in the realm of the private businessmen inside and outside the country. Their relation with the government is fairly good. So far, we have never heard 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.

We are convinced that P.T. KARYA ANUGERAH JAYA is sufficiently fairly good for normal business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.37
UK Pound	1	Rs.73.53
Euro	1	Rs.64.36

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.