MIRA INFORM REPORT

Report Date :

25.03.2011

IDENTIFICATION DETAILS

Name :	P.T. BARALOGAM MULTIJAYA
Registered Office :	Jalan Teh No. 28-B, Taman Sari, Jakarta Barat, 11110
Country :	Indonesia
Date of Incorporation :	02.02.1987
Com. Reg. No.:	No. AHU-15650.AH.01.02.TH.2010
Legal Form :	Limited Liability Company
Line of Business :	Trading and Distribution of Iron and Steel Casting

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$ 197,300
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. BARALOGAM MULTIJAYA

company Address

Head Office

Jalan Teh No. 28-B

Taman Sari

Jakarta Barat, 11110

Indonesia

Phones - (62-21) 6902130 (Hunting)

Fax - (62-21) 6908017

E-mail - baralgm@cbn.net.id

Building Area - 2 storey

Office Space - 130 sq. meters

Region - Commercial

Status - Owned

Date of Incorporation

2 February 1987

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

No. AHU-15650.AH.01.02.TH.2010

Dated 25 March 2010

Company Status

Private National Company

Permit by the Government Department :

The Department of Finance

NPWP No. 01.319.159.8-037.000

The Department of Trade

SIUP No. 1337/1045-P/09-03/PB/VI/92

Dated 3 June 1992

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 2,000,000,000.-

Issued Capital : Rp. 520,000,000.-

Paid up Capital : Rp. 520,000,000.-

Shareholders/Owners :

a. Mr. Antoeng Sendjaja - Rp. 260,000,000.-

Address : Jl. Tembaga Block Y No. 169, RT. 011

RW. 003, Kel. Harapan Jaya, Kec.

Kemayoran, Jakarta Pusat

Indonesia

b. Mr. Farid Sendjaya - Rp. 130,000,000.-

Address : Jl. Kelapa Puan Timur I NC I/23, RT. 001

RW. 012, Kel. Pegangsaan Dua, Kec.

Kelapa Gading, Jakarta Utara

Indonesia

c. Mr. Halim Sendjaya - Rp. 130,000,000.-

Address : Jl. Kelapa Puan Timur I NC I/23, RT. 001

RW. 012, Kel. Pegangsaan Dua, Kec.

Kelapa Gading, Jakarta Utara

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Trading and Distribution of Iron and Steel Casting

Production Capacity :

None

Total Investment :

None

Started Operation :

1983

Brand Name :

Baralogam Multijaya

Technical Assistance :

None

Number of Employee :

27 persons

Marketing Area :

Local - 100%

Main Customer :

a. Automotive Assembling and Car Body Repairing

b. Building Contracting

c. Household Appliances

d. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. P.T. BARAMULTI METALIKA

b. P.T. BERKAH MAKMUR UTAMA

c. P.T. CAST METALS INDONESIA

d. P.T. SUTINDO RAYA MULIA

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

P.T. Bank CENTRAL ASIA Tbk

Jalan Cengkeh No. 5

Jakarta Pusat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 13.0 billion

2009 – Rp. 14.0 billion

2010 – Rp. 15.0 billion

Net Profit (estimated) :

2008 – Rp. 0.7 billion

2009 – Rp. 0.9 billion

2010 – Rp. 1.0 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Antoeng Sendjaja

Director - Mr. Farid Sendjaya

Board of Commissioners :

Commissioner - Mr. Halim Sendjaja

Signatories :

President Director (Mr. Antoeng Sendjaja) or the Director (Mr. Farid Sendjaya) 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$ 197,300 on 90 days D/A

OVERALL PERFORMANCE

P.T. BARALOGAM MULTIJAYA (P.T. BM) was incorporated in Jakarta on February 2, 1987 with the authorized capital of Rp. 300,000,000 issued capital of Rp. 200,000,000entirely paid up. The founding shareholders of the company are Mr. Antoeng Sendjaja (Sendjaya) and his sons Mr. Farid Sendjaya and Mr. Halim Sendjaya, they are Indonesian business family of Chinese descent. The company notary deed has been changed a couple of times. In August 2008 the authorized capital was increased to Rp. 1,000,000,000 issued capital to Rp. 300,000,000 entirely paid up. The latest in March 2010 the authorized capital was raised again to Rp. 2,000,000,000 issued capital to Rp. 520,000,000 fully and paid up. With this development the composition of its shareholders has been changed to become Mr. Antoeng Sendjaja (50%), Mr. Farid Sendjaya (25%) and Mr. Halim Sendjaya (25%). The latest revision of notary act was made by Mrs. Irene Yulia, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-15650.AH.01.02.TH.2010, dated March 25, 2010.

P.T. BM in operation since 1987 in the field of trading, distribution, suppliers and importers of metal foundry feedstock. The merchandising good products are ferro alloy, pig iron, iron and steel, retail trade in steel or iron for construction materials. Basically, the activity of P.T. BM is to take over and continue the activities of the UD. BARA METAL which was founded in 1983 by Mr. Antoeng Sendjaja. Currently, P.T. BM is and agent and distributor holder of NOLTINA GmbH., Crucibles of Germany, LONDON SKANDINAVIAN METALURGICAL Co. Ltd., Ferro Alloy of the UK., Ervin AMA STEEL, Steel Shot and Grit of the UK and EMVOY Flake of Taiwan. Most products merchandise is sold to the metal casting industry in Jakarta, West Java, Central Java and East Java. In addition, they also market products merchandise through stores of raw materials throughout the metal casting big cities in Indonesia. Besides, the products also marketed in Kalimantan islands, Sumatra islands etc. The operation of P.T. BM is running smoothly in the last three years.

Generally outlook we find the demand for ferro alloy, pig iron, steel, stainless steel sheet, stainless steel pipe, aluminum sheet, brass sheet, etc., had been rising by 6% to 8% per year in the last five years. It links closely with the growth of auto body industries, factory development, housing development and household appliance industries. Besides, lustrous development of property projects like shopping centers, hotels, apartments, office buildings and others in the country in the last three years is estimated to increase demand for steel products in the country. However, the retail high price of steel products in the country is an obstacle faced by consumers. Besides, the increasing electric base tariff and oil and gas price has become a serious barrier faced by steel producers in the country. Competition is very tight due to a lot of similar products are for sales in the country. Business position of P.T. BM is favorable being strongly backed up by its group’s business networks.

Until this time P.T. BM has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. BM 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. 13.0 billion rose to Rp. 14.0 billion in 2009 increased to Rp. 15.0 billion in 2010 and projected to go on rising by at least 5% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 1.0 billion and the company has an estimated total networth of at least Rp. 3.0 billion. 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. BM is led by Mr. Antoeng Sendjaja (76) a businessman and professional manager with experience in trading, import and distribution of metal foundry, iron and steel casting. In his daily operation he is assisted by his son Mr. Farid Sendjaya (52) as director. The company's management is handled by professional staff 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. ALVADIWIPA ANUGERAH is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.77
UK Pound	1	Rs.72.66
Euro	1	Rs.63.06

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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