MIRA INFORM REPORT

Report Date :

07.03.2011

IDENTIFICATION DETAILS

Name :	PD. ANFAS
Registered Office :	Jl. Blandongan (Tambora IV) No. 4 Jakarta Barat 11220
Country :	Indonesia
Year o0f Establishment :	1990’s
Legal Form :	Sole Proprietary Company
Line of Business :	Leather Tanning Industry

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$ 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 – 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

PD. ANFAS

Address

Head Office

Jl. Blandongan (Tambora IV) No. 4

Jakarta Barat 11220

Indonesia

Phones - (62-21) 6927051, 6927085, 6929328

Fax. - (62-21) 6900284, 6616133

Building Area - 2 storey

Office Space - 260 sq. meters

Region - Commercial

Status - Owned

Factory

Jl. Pluit Sakti XI/2

Jakarta Utara 14450

Indonesia

Phone - (62-21) 669 3453

Fax. - (62-21) 669 3453

Land Area - 1,600 sq. meters

Building Space - 1,200 sq. meters

Region - Commercial

Status - Owned

Date of Incorporation :

1990’s

Legal Form :

Sole Proprietary Company

Company Reg. No. :

Not Required

Company Status :

Private Company

Permit by the Government Department :

Not Available

Related Company :

None

CAPITAL AND OWNERSHIP

Capital Structure :

Owned Capital : Rp. 1,500.0 million

Owner :

Mr. Adung Anwar Riyadi - 100%

BUSINESS ACTIVITIES

Lines of Business :

Leather Tanning Industry

Production Capacity :

a. Wet Blue Leather - 1,200,000 sq. feet p.a.

b. Finished Leather - 1,200,000 sq. feet p.a.

Total Investment :

None

Started Operation :

1990’s

Brand Name :

None

Technical Assistance :

None

Number of Employee :

120 persons

Marketing Area :

Domestic - 100%

Main Customers :

a. Garment, Bag and Leather Shoe industries

c. Furniture and Car Body Manufacturing

d. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. PT. Kulit Murni Asia

b. PT. Budi Makmur Jaya

c. PT. Lembah Tidar Jaya

d. PT. Leather Prima Perkasa

e. PT. Usaha Loka

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank CENTRAL ASIA Tbk

Jl. Pluit Samudra No. 9 Blok N

Jakarta Utara

Indonesia

b. P.T. Bank MANDIRI Tbk

Jl. KH Moch. Mansyur No. 222

Jakarta Barat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2007 – Rp. 29.0 billion

2008 – Rp. 34.0 billion

2009 – Rp. 38.0 billion

2010 – Rp. 42.5 billion

Net Profit (estimated) :

2007 – Rp. 1.2 million

2008 – Rp. 1.5 billion

2009 – Rp. 1.7 billion

2010 – Rp. 2.1 billion

Payment Manner :

Promptly

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Adung Anwar Riyadi

Board of Commissioners :

None

Signatories :

Director (Mr. Adung Anwar Riyadi) is only the authorized person to sign the loan on behalf of the company.

CAPABILITIES

Management Capability :

Satisfactory

Business Morality :

Satisfactory

Credit Risk :

Average

Credit Recommendation :

Credit should be proceeded with monitor

Proposed Credit Limit :

Small amount – periodical review

Maximum Credit Limit :

US$ 580,000.- on the 90 days of payments

OVERALL PERFORMANCE

PD. ANFAS was established in Jakarta in 1990’s with a status of Sole Proprietary Company. Founder and owner of the company is Mr. Adung Anwar Riyadi, an Indonesian businessman of Chinese extraction. Being as Sole Proprietary Company, the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, the company has own capital of about Rp. 1,500 million and it will be rising in line with the progress of its business operation.

PD. ANFAS had been operating since 1990’s in leather tanning industry by managing a plant being located at Jl. Pluit Sakti XI/2, North Jakarta on a land of 1,600 square meters. Mr. Adung Anwar Riyadi, director of the company explained that raw materials such as wet leather was imported from India and also domestic leather or Java leather. According to Indonesian Leather Industries Association, the plant has installed capacity of 1.2 million wet blue and 1.2 million finished leather per year. The whole products are supplied to garment, Bag and leather shoe industries in Jakarta, Bekasi, Tangerang, Bogor and others. Beside that the company also supplied the products to furniture and car body manufacturing in local market. PD ANFAS is classified as a small sized company in the country dealing with tanning industry of which the operation has been running smoothly and growing in the last five years.

Generally, local demand for leathers had been increasing by 7% to 9% on the average per annum having close relation with the growing industrial sectors like shoe industries, bags, furniture, car seats and others in the above period as consumers. However, the competition is very tight on account of lots of similar companies operating in the country. The business position of P.T. MI is favorable for having established regular customers and wide marketing networks within and outside the country. We consider PD. ANFAS to be in a quite favorable position for having already got hold of a steady clientele in the country.

Until this time PD. ANFAS 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. 34.0 billion increased to Rp. 38.0 billion in 2009 and rose again to Rp. 42.5 billion in 2010. It is projected the company’s sales turnover will increase at least by 8% in 2011. The operation of PD. ANFAS in 2010 is estimated to have gained a profit of at least Rp. 2.1 billion with total assets at least Rp. 10.0 billion. 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.

The management of PD. ANFAS is headed by Mr. Adung Anwar Riyadi (55), a businessman with experienced more than 18 years in field of leather tanning industry. 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.

PD. ANFAS is appraised quite feasible for normal business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.99
UK Pound	1	Rs.73.24
Euro	1	Rs.62.80

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.