MIRA INFORM REPORT

Report Date :

25.01.2011

IDENTIFICATION DETAILS

Name :	P.T. PETROKIMIA KAYAKU
Registered Office :	Jl. Jendral A. Yani PO Box 107, Gresik 61101, East Java
Country :	Indonesia
Date of Incorporation :	18.02.1976
Com. Reg. No.:	No. AHU-AH.01.10-30250
Legal Form :	Limited Liability Company
Line of Business :	Pesticide Formulation

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$ 2,580,000
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. PETROKIMIA KAYAKU

company Address

Head Office & Factory

Jl. Jendral A. Yani PO Box 107

Gresik 61101, East Java

Indonesia

Phones - (62-31) 398 1815 (hunting)

Fax - (62-31) 398 1830

Building Area - 4 storey

Office Space - 260 sq. meters

Region - Commercial

Status - Owned

Date of Incorporation

18 February 1976

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

a. No. AHU-12046.AH.01.02.Tahun 2010

Dated 08 March 2010

a. No. AHU-AH.01.10-30250

Dated 25 November 2010

Company Status

Foreign Investment Company (PMA)

Permit by the Government Department

The Department of Finance

NPWP No. 02.002.184.8-051.000

The Department of Industry

No. 137/M/SK/5/1988

Dated 3 May 1988

Affiliated Companies

a. P.T. PETROKIMIA GRESIK Tbk. (Petrochemical industry and Investment Holding)

b. MITSUBISHI Corp., of Japan (Investment Holding)

c. NIPPON KAYAKU Co. Ltd., of Japan (Investment Holding)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 1,016,400,000.-

Issued Capital - Rp. 1,016,400,000.-

Paid up Capital - Rp. 1,016,400,000.-

Shareholders/Owners :

Local Partners

P.T. PETROKIMIA GRESIK Tbk. - Rp. 609,840,000.- (60%)

Foreign Partners

a. MITSUBISHI CORPORATION - Rp. 203,280,000.- (20%)

b. ALBEST INVESTMENT Pte. Ltd. - Rp. 203,280,000.- (20%)

BUSINESS ACTIVITIES

Lines of Business :

Pesticide formulation (Insecticide, Fungicide and Herbicide) and becomes the fertilizer distributor of PT. Petrokimia Gresik.

Production Capacity :

a. Liquid Pesticides - 3,600 kiloliters p.a.

b. Granular Pesticides - 12,600 tons p.a.

c. Powder Pesticides - 1,800 tons p.a.

Total Investment :

Owned Capital - Rp. 80.0 billion

Started Operation :

1977

Brand Name :

PETROKIMIA KAYAKU

Technical Assistance :

None

Number of Employee :

320 persons

Marketing Area :

Local - 100%

Main Customers :

a. PT. PTPN VII (Persero)

b. PT. Gunung Sejahtera Puti Pesona

c. PT. Gerrindo Surya Makmur

d. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. PT. DuPont Agriculture

b. PT. Tani Mas Subur

c. PT. Agrocarb Indonesia

d. PT. Maskitani

e. PT. Biotis Agrindo

f. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank MEGA Tbk

Komplek Multi Sarana Plaza A-8

Jl. Gubernur Suryo - Gresik

East Java

Indonesia

b. P.T. Bank CIMB NIAGA Tbk

Gresik Branch

Jl. RA Kartini No. 236 Kav. 2&3

Gresik, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Total Sale (estimated) :

2007 – Rp. 120.0 billion

2008 – Rp. 138.0 billion

2009 – Rp. 162.0 billion

2010 – Rp. 186.0 billion

Net Profit (estimated):

2007 – Rp. 9.3 billion

2008 – Rp. 10.7 billion

2009 – Rp. 12.6 billion

2010 – Rp. 14.5 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Ir. Slamet Subagyo

Directors - a. Mr. Ir. Ilham Setiabudi

b. Mr. Ir. Nur Salim

HRD Department Head - Mr. Sumarlan

Financial Department Head - Mr. Purwoko Danardono

Board of Commissioners :

President Commissioner - Mr. Sidi Pranyoto

Commissioners - a. Mr. Osamu Kikuno

b. Mr. Wahyudi

Signatories :

President Director (Mr. Ir. Slamet Subagyo) or one of Directors (Mr. Ir. Ilham Setiabudi and Mr. Ir. Nur Salim) which must be approved by Board of Commissioners (Mr. Sidi Pranyoto, Mr. Osamu Kikuno and Mr. Wahyudi).

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$ 2,580,000 on the 90 days of payments

OVERALL PERFORMANCE

P.T. PETROKIMIA KAYAKU was established in Gresik (East Java) in February 1976 with an authorized capital of Rp. 415,000,000 (US$.1,000,000) entirely was issued and Rp. 41,500,000.- (US$ 100,000) was paid up. The founding shareholders of the company are P.T. PETROMIKIA GRESIK of Indonesia (60%), MITSUBISHI Corp., (20%) and NIPPON KAYAKU (20%), both are of Japan. The company's notarial act was since revised a number of times. In July 2008, the authorized capital was raised to Rp. 1,016,400,000.- entirely was issued and fully paid up. The shareholders of the company are still P.T. PETROMIKIA GRESIK (60%), MITSUBISHI Corp., (20%) and NIPPON KAYAKU (20%). The latest deed of amendment was made by Mrs. Erna Anggraini Hutabarat , SH, a public notary in Surabaya under Company Registration No. AHU-12046.AH.01.02.Tahun 2010 dated 8 March 2010 and No. AHU-AH.01.10-30250 dated 25 November 2010. No changes have been effected in term of its shareholding composition and capital structures to date.

P.T. PETROKIMIA KAYAKU (P.T. PKK) is engaged in the field of pesticide formulation (Insecticide, Fungicide and Herbicide) and becomes the fertilizer distributor of PT. Petrokimia Gresik. The company operates a plant located at Jalan A. Yani, Gresik, East Java According to its license, the plant has annual production capacity of 3,600 kiloliters of liquid pesticides, 12,600 tons of granular pesticides and 1,800 tons of powder pesticides per annum. The plant has absorbed an investment of US$ 5.3 million come from owned capital of US$ 1.0 million and the rest is loans. The plant has been in operation since 1977 and some 80% of the products are marketed locally and the rest of some 20% is exported to Vietnam, Pakistan, India, Thailand, Middle East and others. P.T. PKK 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.

Generally, demand for pesticide products has been growing in the last five years in line with the increasingly growing demand for agricultural and plantation products. It is estimated that the demand will kept on rising in the coming two-three years. Meanwhile, the competition is very tight on account of lots of similar companies operating in the country. P.T. PKK's business position is good because its products brand has been quite popular on the domestic market.

Until this time P.T. PKK has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. PKK is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2007 amounted to Rp. 120.0 billion rose to Rp. 138.0 billion in 2008 increased to Rp. 162.0 billion in 2009 and estimated rising again to Rp. 186.0 billion in 2010. The operation in 2009 yielded an estimated net profit of Rp. 12.6 billion rose to Rp. 14.5 billion in 2010 and the company has an estimated total networth of at least Rp. 120.0 billion.

We observe that P.T. PKK is supported by PT. PETROKIMIA GRESIK and two foreign partners 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. PKK is led by Ir. Mr. Slamet Subagyo (48) an Indonesian professional manager of the PETROKIMIA Group with experience in pesticide formulation industry. In daily activities, he is assisted by Mr. Ir. Ilham Setiabudi and Mr. Ir. Nur Salim, both are as directors. Beside, the company's management is handled by professional manager 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. PETROKIMIA KAYAKU is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.58
UK Pound	1	Rs.72.79
Euro	1	Rs.62.01

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.