MIRA INFORM REPORT

Report Date :

21.01.2011

IDENTIFICATION DETAILS

Correct Name :	P.T. LATRADE BATAM INDONESIA
Registered Office :	Latrade Industrial Park Block E-3, Jalan Sei Binti, Tanjung Uncang, Batam 29422, Kepulauan Riau Province
Country :	Indonesia
Date of Incorporation :	31.05.2000
Com. Reg. No.:	No. AHU-AH.01.10-12912
Legal Form :	Limited Liability Company
Line of Business :	Manufacturer of Plastic Injection Moulding

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$ 1,899,000
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 – 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. LATRADE BATAM INDONESIA

company Address

Head Office & Industrial Estate Site

Latrade Industrial Park Block E-3

Jalan Sei Binti, Tanjung Uncang

Batam 29422

Kepulauan Riau Province

Indonesia

Phones - (62-778) 393899, 393218, 393238, 396807, 396888

Fax - (62-778) 393299, 393217, 393886

E-mail - latrade@latrade.co.id

Website - http://www.latrade.com.sg

Land Area - 100,000 sq. meters

Office Space - 66,000 sq. meters

Region - Industrial Estate

Status - Owned

Date of Incorporation

31 May 2000

Legal Form

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

Company Reg.No.

The Ministry of Law and Human Rights

- No. C-16625 HT.01.01.TH.2000

Dated 4 August 2000

- No. AHU-AH.01.10-12912

Dated 26 May 2010

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Department of Finance

NPWP No. 01.633.458.3-215.000

The Capital Investment Coordinating Board

No. 410/I/PMA/2000

Dated 26 May 2000

Related Company

LATRADE Pte Ltd, Singapore (Investment Holding)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : US$ 650,000.-

Issued Capital : US$ 650,000.-

Paid up Capital : US$ 650,000.-

Shareholders/Owners :

a. LATRADE Pte. Ltd. - US$ 643,500.-

Address : 118 West Wood Ave

Singapore

b. Mr. Teo Pea Ngo - US$ 6,500.-

Address : 118 West Wood Ave

Singapore

BUSINESS ACTIVITIES

Lines of Business :

a. Plastic Injection Moulding Manufacturing

b. Industrial Estate Development and Management

Production Capacity :

a. Plastic Injection Moulding - 1,200 tons p.a.

b. Industrial Parks - 25 meter x 100 meter

Total Investment :

a. Equity Capital - US$ 650,000.-

b. Loan Capital - US$ 1,850,000.-

c. Total Investment - US$ 2,500,000.-

Started Operation :

2000

Brand Name :

Latrade Industrial Park

Technical Assistance :

Latrade Pte., Ltd., Singapore

Number of Employee :

107 persons

Marketing Area :

Local - 100%

Main Customer :

a. Buyers in Singapore (Plastic Injection Moulding)

b. Industrial Manufacturing (tenants) of Industrial Park

Market Situation :

Very Competitive

Main Competitors :

a. P.T. BATAM INDUSTRIAL PARK

b. P.T. KAWASAN INDUSTRI MAKASSAR

c. P.T. KAWASAN INDUSTRI MEDAN

d. P.T. KAWASAN INDUSTRI PULOGADUNG

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

Hongkong and Shanghai Banking Corp Ltd

Batam Main Branch

Kepulauan Riau Province

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 135.0 billion

2009 – Rp. 145.0 billion

2010 – Rp. 155.0 billion

Net Profit (estimated) :

2008 – Rp. 12.1 billion

2009 – Rp. 13.0 billion

2010 – Rp. 13.9 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Teo Pea Ngo

Director - Mr. David Chang Tehwai

Board of Commissioners :

Commissioner - Mrs. Choo Guek Hook

Signatories :

President Director (Mr. Teo Pea Ngo) or the Director (Mr. David Chang Tehwai) which must be approved by Board of Commissioner

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$ 1,899,000 on 90 days D/A

OVERALL PERFORMANCE

LATRADE PTE., LTD., is a private company established in Singapore based on law of Singapore. Based on investigation through address that the company is registered on P.T. LATRADE BATAM INDONESIA not LATRADE Pte., Ltd. However LATRADE PTE., LTD., is the business stakes owner of P.T. LATRADE BATAM INDONESIA.

P.T. LATRADE BATAM INDONESIA (P.T. LBI) was established in Batam, Kepulauan Riau province on May 31, 2000 with the authorized capital of US$ 650,000 wholly issued and paid up. The company was founded by LATRADE PTE., LTD., Singapore and Mr. Teo Pea Ngo, a businessman of Singapore. The company notary deed had been changed and in August 2008 the board of director and the board of commissioner had been changed. The latest in April 2010 the board of director and the board of commissioner reappointed again to lead of the company’s operation (see profile of this report). The latest revision of notary deed was made by Mrs. maria Anastasia Halim, SH., was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-12912 dated May 26, 2010.

P.T. LBI is one of the foreign company engaged in plastic injection moulding manufacturing and industrial park development and management. The plastic injection molding plant located at Latrade Industrial Park Block E-3, Jalan Sei Binti, Tanjung Uncang, Batam. Besides, P.T. LBI is also engaged in industrial park development and management by manages Latrade Industrial Park (LIP) on a land of 100,000 sq. meters land. Latrade Industrial Park caters to the various operational requirement of the light to medium industries including textiles, garments, shoes, valve, sofa, electric assembly, packaging, printing, material processing, plastic moulding, knock-down furniture, biosciences & chemical, and engineering works. The Latrade Industrial Park equipped with various facility such as telephone, clean water, security and other facilities. The Latrade Industrial Park rents to various industrial sectors (Tenants) such as P.T. POWER FOAM BATAM, P.T. TEKNICAST INDONESIA, P.T. KSW BATAM, P.T. WEARSMART TEXTILE, P.T. ESPRO BATAM, P.T. BRANDSMART TEXTILES, P.T. LESCO, P.T. BIOWORLD BIOSCIENCES MANUFACTURING INDUSTRIES, P.T. UNIVERSAL LABORATORY, P.T. FURNIFLUS ASIA, P.T. TOMOE VALVE BATAM, P.T. SKP MARINE ENGINEERING and P.T. ZC INDSUTRIES VALVE MANUFACTURING. We observe the operation of P.T. LBI has been growing and developing well in the last three years.

In overall, demand for industrial park has kept on increasing by 5% to 6% in the last five years in line with the growth of industrial sectors extremely requiring the above products and services. Besides, the Indonesian economy has weathered the storm and is currently accelerating. As for the global economy, it is also in a recovery phase and this recovery is expected to continue in 2010. Overall, the prospects for the Indonesian economy in 2010 are brighter than in 2009. The global economic recession has exerted significant downward pressures on the Indonesia economy. In the first quarter of 2009 the economy grew by 4.4 percent, or significantly lower than in the fourth quarter of 2008 when the economy grew by 5.2 percent and lower than in the third quarter of 2008 when the economy grew by 6.4 percent.

Eventually, the impact of the fiscal and monetary stimuli on the economy could be seen. This was reflected in the brisker pace of growth in Indonesia despite the global economic recession. In the second quarter of 2009 the Indonesian economy grew by 4.0 percent, and in the third quarter of the year it grew by 4.2 percent. The economic is expected to accelerate further in the fourth quarter of 2009. Ant for the whole of 2009 the Indonesian economy is expected tot grow by 4.7 percent and 6.0 percent in 2010. Several factors support brisker economic growth in 2010. First, the global economic conditions are expected to be better in 2010 than in 2009. This is evident in the global economic recover that is expected to continue well into 2010. The US economy, for example, is expected to grow by 2.5 percent in 2010 compared to a contraction of 2.4 percent in 2009. Meanwhile, the Japanese economy is predicted to grow by around 1.2 percent in 2010 in contrast to an expected contraction of around 5.7 percent in 2009. As for Europe, it is expected to grow by 1.1 percent in 2010 compared to an expected contraction of around 3.8 percent in 2009. Against this backdrop, Indonesian exports are expected to grow by 12.9 percent 2010.

Indonesia’s economic growth in 2008, 2009 and forecast for 2010

No.	Sector	2008	2009	2010
1.	Agriculture	4.8	3.6	3.3
2.	Mining and Quarrying	0.5	3.7	3.7
3.	Manufacturing	3.7	2.2	2.2
4.	Electricity, Gas, and Clean Water	10.9	13.4	13.4
5.	Construction	7.3	7.1	7.0
6.	Trade, Hotel, and Restaurant	7.2	1.2	5.8
7.	Transportation and Communication	16.7	17.4	16.7
8.	Finance, Leasing and Business Services	8.2	5.5	6.3
9.	Services	6.4	6.7	6.9
Gross Domestic Product (GDP)		6.1	4.7	6.0

Source: Indonesia Economic Almanac 2010 by Bisnis Indonesia

Until this time P.T. LBI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. LBI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2008 amounted to Rp. 135.0 billion rose to Rp. 145.0 billion in 2009 increased to Rp. 155.0 billion in 2010 and projected to go on rising by at least 4% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 13.9 billion and the company has an estimated total networth of at least Rp. 29.0 billion. We observe that P.T. LBI is supported by foreign partner with has financially strong and sound behind it. 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. LBI is led by Mr. Teo Pea Ngo (57) a businessman and professional manager of Singapore with experience in industrial park development and management. Daily operation he is assisted by Mr. David Chang Tehwai (30) as director. The company's management is handled by professional managers in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. LATRADE BATAM INDONESIA is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.58
UK Pound	1	Rs.72.73
Euro	1	Rs.61.45

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.