MIRA INFORM REPORT

Report Date :

06.01.2011

IDENTIFICATION DETAILS

Correct Name :	P.T. KARYAMITRA BUDISENTOSA
Registered Office :	Ruko Sentra Fortuna Kav. 36, Jl. Jaksa Agung Soeprapto No. 39-41, Ketabang, Genteng, Surabaya 60272, East Java
Country :	Indonesia
Date of Incorporation :	03.01.1989
Com. Reg. No.:	No. AHU-62612.AH.01.02.Tahun 2008
Legal Form :	Limited Liability Company
Line of Business :	Leather Lady’s Shoe 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$ 1,900,000
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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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. KARYAMITRA BUDISENTOSA

company Address

Head Office

Ruko Sentra Fortuna Kav. 36

Jl. Jaksa Agung Soeprapto No. 39-41

Ketabang, Genteng

Surabaya 60272

East Java, Indonesia

Phones - (62-31) 5317843, 5320945, 5317637

Fax - (62-31) 5313799

Email - kmbs@sby.centrin.net.id

Building Area - 3 storey

Office Space - 140 sq. meters

Region - Commercial

Status - Owned

Factory

Jl. Gunung Gangsir No. 1A

Desa Nogosari, Kec. Pandaan

Pasuruan, East Java

Indonesia

Phones - (62-343) 631087, 631089

Fax - (62-343) 631088

Land Area - 3 storey

Building Space - 39,500 sq. meters

Region - 12,800 sq. meters

Status - Owned

Date of Incorporation

3 January 1989

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Right

a. No. C-27357.HT.01.04.TH.2004

Dated 02 November 2004

b. No. AHU-62612.AH.01.02.Tahun 2008

Dated 15 September 2008

Company Status

National Private Company

Permit by the Government Department

The Department of Finance

NPWP No. 01.469.153.9-616.000

The Government of Surabaya City

SKD No. 000/064/436814/2007

Dated 13 April 2007

Related Companies

a. P.T. TANJUNG BUMI SENTOSA (General Trading)

b. U.D. CEMPAKA (Trading)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 50,000,000,000.-

Issued Capital : Rp. 27,000,000,000.-

Paid up Capital : Rp. 27,000,000,000.-

Shareholders/Owners :

a. Mr. Tjandra Tanuwidjaja - Rp. 5,625,000,000.- (20.83%)

Address : Jl. Dharmahusada Indah No. 15A

Surabaya, East Java

Indonesia

b. Mr. Hindra Tanuwidjaja - Rp. 5,625,000,000.- (20.83%)

Address : Jl. Jaksa Agung Suprapto No. 55

Surabaya, East Java

Indonesia

c. Mr. Ali Tanuwidjaja - Rp. 5,625,000,000.- (20.83%)

Address : Jl. Jaksa Agung Suprapto No. 55

Surabaya, East Java

Indonesia

d. Mr. Wiharjo Soebagiyo - Rp. 2,533,500,000.- ( 9.38%)

Address : Jl. Jemursari No. 109-D

Surabaya, East Java

Indonesia

e. Mr. Budi Susanto - Rp. 5,566,500,000.- (20.83%)

Address : Jl. Raya Kertajaya Indah No. 97

Surabaya, East Java

Indonesia

f. Mr. Rusmanto Karsyono - Rp. 2,025,000,000.- ( 7.50%)

Address : Jl. Komplek BNI No. 46

Pesing, West Jakarta

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Leather Lady’s Shoe Manufacturing

Production Capacity :

Leather Lady’s Shoes - 1,200,000 pairs p.a. (main products; casual, sandals, boots, sports, fashion, shoes)

Total Investment :

Owned Capital - Rp. 50.0 billion

Started Operation :

1989

Brand Name :

Rotelli, Gosh and Bellagio brand

Technical Assistance :

None

Number of Employee :

1,810 persons

Marketing Area :

a. Export - 70%

b. Local - 30%

Main Customer :

a. Overseas buyers in Singapore, Australia and European countries

b. About 22 shoe stores in Jakarta, Surabaya, Yogyakarta, Bandung, Semarang, Bali, etc.

Market Situation :

Very Competitive

Main Competitors :

a. PT. Teguh Murni Perdana

b. CV. Grand Shoe Industry

c. PT. Forta Larese

d. PT. Daya Aneka Sempurna

e. PT. Putramaya Abadi

f. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank MANDIRI Tbk

Surabaya Branch

Jl. Basuki Rachmat No. 129-137

Surabaya, East Java

b. P.T. Bank UOB INDONESIA

Surabaya Branch

Jl. Embong Malang No. 61-65

Surabaya, East Java

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2007 – Rp. 115.0 billion

2008 – Rp. 126.0 billion

2009 – Rp. 142.0 billion

2010 – Rp. 160.0 billion

Net Profit (estimated) :

2007 – Rp. 5.8 billion

2008 – Rp. 6.3 billion

2009 – Rp. 7.0 billion

2010 – Rp. 7.6 billion

Payment Manner :

Fairly good

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Budi Susanto

Director - Mr. Ali Tanuwidjaja

Board of Commissioners :

President Commissioner - Mr. Tjandra Tanuwidjaja

Commissioners - a. Mr. Hindra Tanuwidjaja

b. Mr. Wiharjo Soebagiyo

Signatories :

President Director (Mr. Budi Susanto) or Director (Mr. Ali Tanuwidjaja) which must be approved by Board of Commissioners

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$ 1,900,000 on 90 days D/A

OVERALL PERFORMANCE

P.T. KARYAMITRA BUDISENTOSA (P.T. KB) was established in January 1989 with the authorized capital of Rp. 2,500,000,000 of which Rp. 500,000,000 was issued and fully paid up. The founding shareholders are Mr. Budi Susanto, Mr. Tjandra Tanuwidjaja, Mr. Hindra Tanuwidjaja, Mr. Hariyono Soebagiyo and Mr. Ali Tanuwidjaja, all are Indonesian businessmen of Chinese extraction. The articles of association of the company have frequently been revised. In October 2004, the authorized capital was raised to Rp 50,000,000,000.- of which Rp 27,000,000,000.- was issued and entirely paid up and concurrently whole shares of the company were controlled by Mr. Budi Susanto, Mr. Tjandra Tanuwidjaja, Mr. Hindra Tanuwidjaja, Mr. Hariyono Soebagiyo and Mr. Rusmanto Karsyono. The latest notary deed of amendment was approved by the Ministry of Law and Human Right in its Decision Letter No. C-27357.HT.01.04.TH.2004, dated 2 November 2004 and No. AHU-62612.AH.01.02.Tahun 2008 dated 15 September 2008. No changes have been effected in term of its shareholding composition and capital structures to date.

P.T. KB has been in operation since 1990 dealing with lady’s shoes manufacturing. Its plant is located at Jalan Gunggung Gangsir No. 1 A, Nogosari Sub district, Pandaan District, Pasuruan, East Java on a land of 3.9 hectares. According to its license, the company has annual production capacity of 1,200,000 pairs of lady’s shoes. Mrs. Amelia, an administration staff of the company said that, her company produces various ladies’ shoes including casuals, pumps, sandal boots, sports, fashions and others. She went on to say that some 70% of the company products are exported to European countries, Australia, Singapore and others while the rest 30% of the products is locally marketed using Rotelli, Gosh and Bellagio brands.

To support its local marketing, the company operates around 22 shoes outlets in major cities in the country like Jakarta, Surabaya, Yogyakarta, Bandung, Semarang, Solo, Medan, Pekan Baru, Manado, Makassar and Bali. P.T. KB is classified as a medium sized company of its kind in the country of which the operation has been growing slowly in the last four years. Generally, demand for lady’s shoes has been fluctuating in the last five years. It is estimated that the demand for lady’s shoes in either export or local markets will still be fluctuating in the coming three years. Meanwhile, the competition is very tight on account of lots of similar companies operating in the country. The business position of P.T. KB is favorable for having established customers and wide marketing networks in either export markets as well as local market. In general, data on national shoes export-import is as pictured in the following table:

National Shoe Exports and Imports, 2001-2008

(US$ million)

Year	Exports	Imports	Surplus	Growth
2001	1,502	66	1436	--
2002	1148	60	1088	24.2%
2003	1182	62	1120	2.9%
2004	1350	56	1264	12.9%
2005	1500	62	1438	13.8%
2006	1600	71	1529	6.3%
2007	1638	82	1556	1.8%
2008	1,675	86	1,589	2.1%
2009	1,733	116	1,617	1,8%

Source: BPS, processed

Until this time P.T. KB has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of the company is very reclusive towards outsiders and rejected to disclose its financial condition. However, we estimated that sales turnover of the company in 2008 amounted to Rp. 126.0 billion increased to Rp. 142.0 billion in 2009 to Rp. 160.0 billion in 2010 and projected will increase again at least 8% in 2011. It is estimated that P.T. KB’s operation has in 2010 yielded a total net profit of Rp 7.6 billion with a total networth of Rp 66.0 billion. We did not hear that the company having been black listed by Bank Indonesia (Central Bank) and registered in the court for detrimental cases.

The prime mover of the company is Mr. Budi Susanto (63) with more than 43 years of experience in trading and manufacturing of lady’s shoes. In daily activities of the company is handled by Mr. Ali Tanuwidjaja (52). Besides, the management of the company is handled by a team of professional managers having wide relation with overseas and national private businessmen as well as with the government sectors. So far, we did not hear that the company has been involved in business malpractice. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

P.T. KB is appraised to be good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.20
UK Pound	1	Rs.70.27
Euro	1	Rs.59.99

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.