MIRA INFORM REPORT

Report Date :

22.03.2011

IDENTIFICATION DETAILS

Name :	P.T. FORTA LARESE
Registered Office :	Jalan Musi No. 16 Jakarta 10150
Country :	Indonesia
Date of Incorporation :	28.03.1972
Com. Reg. No.:	No. AHU-45151.AH.01.02.Tahun 2008
Legal Form :	Limited Liability Company
Line of Business :	Safety Shoes 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$ 4,580,000
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

P.T. FORTA LARESE

Address

Head Office

Jalan Musi No. 16

Jakarta 10150

Indonesia

Phones - (62-21) 3861018, 3859845

Fax. - (62-21) 3849409

Email - marketing@cheetahforta-larese.com

Website - http://www.cheetahforta-larese.com

Building Area - 2 storey

Office Space - 860 sq. meters

Region - Commercial

Status - Owned

Factory

Jalan Raya Bogor Km. 50

Bogor, West Java

Indonesia

Phones - (62-251) 652785

Fax. - (62-251) 652786

Land Area - 20,500 sq. meters

Building Space - 12,000 sq. meters

Region - Industrial Zone

Status - Owned

Date of Incorporation :

28 March 1972

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-45151.AH.01.02.Tahun 2008

Dated 28 July 2008

Company Status :

National Private Company

Permit by the Government Department :

The Department of Finance

NPWP No. 1.001.828.1-028

The Department of Industry and Trade

No. 227/DJAI/IUT-6/PMDN/VI/1988

Dated 20 June 1988

Related Company :

P.T. FORTA DWIJAYATAMA (Distribution of Fire and Safety Protective Equipment)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 750,000,000.-

Issued Capital - Rp. 750,000,000.-

Paid up Capital - Rp. 750,000,000.-

Shareholders/Owners

a. Mrs. Della Aristya Tjitra - Rp. 712,500,000.- (95%)

Address : Jl. Angsana X Blok D 13/5

Kebon Jeruk

Jakarta Barat – Indonesia

b. Mr. Daniel Tjitra - Rp. 37,500,000.- ( 5%)

Address : Jl. Angsana X Blok D 13/5

Kebon Jeruk

Jakarta Barat – Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Safety Shoes Industry

Production Capacity :

Safety Shoes - 850,000 pair p.a.

Total Investment :

a. Owned Capital - Rp. 12.5 billion

b. Loan Capital - Rp. 10.0 billion

c. Total Investment - Rp. 22.5 billion

Started Operation :

1973

Brand Name :

CHEETAH Safety Shoes

Technical Assistance :

None

Number of Employee :

320 persons

Marketing Area :

Domestic (Local) - 90%

Export (Overseas) - 10%

Main Customers :

a. P.T. PERTAMINA, state oil and gas company

b. Automotive Industries, Hotels and any other industrial companies that require full food Protection.

Market Situation :

Very Competitive

Main Competitors :

a. P.T. OSHA ASIA

b. P.T. HENGTRACO PROTECSINDO

c. P.T. MITRA GABATA DINAMIKA

d. C.V. GRAND SHOE INDUSTRY

e. P.T. BUANA PANDU CAHAYA

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r s :

a. P.T. Bank MANDIRI Tbk.

Jalan Suryopranoto No. 48C-D

Jakarta Pusat

Indonesia

b. P.T. Bank NEGARA INDONESIA Tbk

Jalan Ir H. Juandar No. 28

Jakarta Pusat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2007 – Rp. 220.0 billion

2008 – Rp. 238.0 billion

2009 – Rp. 260.0 billion

2010 – Rp. 330.0 billion

Net Profit (Loss) :

2007 – Rp. 13.6 billion

2008 – Rp. 14.8 billion

2009 – Rp. 16.0 billion

2010 – Rp. 20.2 billion

Payment Manner :

Almost promptly

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mrs. Della Aristya Tjitra

Finance Manager - Miss Yolanda M. Tjitra

Board of Commissioner :

Commissioner - Mr. Daniel Tjitra

Signatories :

Director (Mrs. Della Aristya Tjitra) which must be approved by board of commissioner (Mr. Daniel Tjitra)

CAPABILITIES

Management Capability :

G o o d

Business Morality :

G o o d

Credit Risk :

Below Average

Credit Recommendation :

Credit can be proceeded normally

Proposed Credit Limit :

Moderate amount

Maximum Credit Limit :

US$ 4,580,000 on the 90 days of the payment

OVERALL PERFORMANCE

P.T. FORTA LARESE (P.T. FLR) was established in March 1972 with the authorized capital of Rp. 200,000,000.- wholly fully issued and f paid up. The founding shareholders of the company are Mrs. Della Aristya Tjira (95%) and her husband Mr. Hendra Wijaya Tjitra (5%), both are Indonesian business woman and businessman of Chinese extraction. The company’s notary deed has frequently been revised. Lastly in September 2005 the authorized capital was raised to Rp. 750,000,000.- wholly fully issued and paid up. By the same time Mr. Hendra Wijaya Tjitra pulled out and the whole shares sold to his son Mr. Daniel Tjitra. The deed of amendment was made by Mr. Buntario Tigris, SH., a public notary in Jakarta under Company Registration Number C-UM. 02.01.13752 dated September 19, 2005 and No. AHU-45151.AH.01.02.Tahun 2008 dated July 28, 2008. No changes have been effected in term of its shareholding composition and capital structures to date.

Initially, P.T. FLR produced sandal shoes for the local marketplace and Army Boots for the Republic of Indonesia Defense Ministry and other institutions. Its plant is located at Jalan Raya Bogor Km. 50, Bogor, West Java. In 1982, P.T. FLR diversified its business in safety shoes using a new brand name “CHEETAH” as their product brand. P.T. FLR produces its owns line of footwear beginning form design process, cutting, stitching, insole, molding and injection. With support from the local industry, experience, tight quality control and utilizing high technology directly from Italy, P.T. FLR has successfully developed safety shoes with an emphasis on safety and comport. P.T. FLR has also received certification from SII (Standard of Indonesian Industry), SNI (Standard Nasional Indonesia), DIN and European Norm. Its main clients are in and off shore oil companies, factories, hotels, and any other industrial companies that require full foot protection. Some 90% of its products sold locally marketed by its sister company PT. FORTA DWIJAYATAMA and the rest of 10% is exported to Brunei Darussalam, Malaysia, Philippine, and others. We observe that P.T. FLR is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.

Generally, demand for safety shoes has been increasing by 6% to 8% in the last five years in which it had drastically been decreasing as the impact of the economic crisis in the country in 1997. However, the competition is very tight on account of lots of similar companies dealing with shoe safety manufacturing such as P.T. OSHA ASIA, P.T. HENGTRACO PROTECSINDO, P.T. MITRA GABATA DINAMIKA, C.V. GRAND SHOE INDUSTRY, P.T. KINGS SAFETY SHOES and others. Beside in domestic markets, the safety shoes of the company are also exported to Asia, Europe and the USA. The business position of P.T. FLR is favorable for having established wide marketing networks within and outside the country.

The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statements publicly. We estimated that total sales turnover of P.T. FLR in 2008 amounted to Rp. 238.0 billion increased to Rp. 260.0 billion in 2009 rose again to Rp. 330.0 billion in 2010 and projected to be rising by at least 12% in 2011. The operation of the company in 2010 is estimated to have gained a net profit of Rp. 20.2 billion with total assets of Rp. 110.0 billion. So far we have never heard that P.T. FLR has been black listed by Bank Indonesia (central bank) or detrimental cases being settled in local district court. Payment condition for domestic and overseas suppliers is good with the credit payment system of 1 month to 3 months.

The management of P.T. FLR is led by Mrs. Della Aristya Tjitra (52) a businesswoman with more than 22 years of experience in sandal and safety shoes manufacturing. Daily operation, she is assisted by his son Mr. Daniel Tjitra (27) as commissioner and his daughter Miss Yolanda M. Tjitra (26) as financial manager. The management is quite creative and dynamic, having maintained a wide business relation with private businessmen at home and abroad and with the government sectors as well. We observed that management’s reputation in said business is fairly good. So far, we did not hear 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 believe that P.T. FORTA LARESE is appraised to be good for normal business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.05
UK Pound	1	Rs.73.05
Euro	1	Rs.63.81

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%)

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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.