MIRA INFORM REPORT

Report Date :

13.05.2011

IDENTIFICATION DETAILS

Name :	P.T. GRASINDO PRIMASUKSES
Registered Office :	Kawasan Industri Pancatama Jalan Pancatama IV A Kav. 38 B Serang Banten Province
Country :	Indonesia
Date of Incorporation :	17.04.2003
Com. Reg. No.:	No. AHU-51113.AH.01.02.TH.2008
Legal Form :	Limited Liability Company
Line of Business :	Marble and Granite Manufacturing

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$ 473,600
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. GRASINDO PRIMASUKSES

Address

Head Office & Factory

Kawasan Industri Pancatama

Jalan Pancatama IV A Kav. 38 B

Serang

Banten Province

Indonesia

Phones - (62-254) 4401555 (Hunting)

Fax - (62-254) 4042555

Land Area - 15,700 sq. meters

Building Area - 12,000 sq. meters

Region - Industrial Estate

Status - Owned

Registration data

Date of Incorporation :

17 April 2003

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-51113.AH.01.02.TH.2008

Dated 14 August 2008

Company Status :

Private National Company

Permit by the Government Department :

The Department of Finance

NPWP No. 02.249.951.1-415.000

Related Company :

P.T. GRASINDO PRIMADAYA (Marble and Granite Manufacturing)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 3,500,000,000.-

Issued Capital : Rp. 3,000,000,000.-

Paid up Capital : Rp. 3,000,000,000.-

Shareholders/Owners :

a. Mr. Sugianto BudhyWibowo - Rp. 1,500,000,000.-

Address : Wiyung Permai Selatan 4/16

Surabaya, East Java

Indonesia

b. Mr. Marlin Budhy Wibowo - Rp. 1,500,000,000.-

Address : Jl. Kecilung No. 25

Surabaya, East Java

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Marble and Granite Manufacturing

Production Capacity :

Marble - 300,000 sq. meters

Total Investment :

Owned Capital - 3.5 billion

Started Operation :

2004

Brand Name :

Grasindo Primasukses

Technical Assistance :

None

Number of Employee :

112 persons

Marketing Area :

Local - 100%

Main Customer :

Building materials shops

Market Situation :

Very Competitive

Main Competitors :

a. P.T. PUSAKA MARMER INDAHRAYA

b. P.T. PRIMASETYA MAKMUR

c. P.T. MULTI MARMER ALAM

d. P.T. INTINUSA SELAREKSA Tbk

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

Jalan Raya Serang

Banten Province

Indonesia

b. P.T. Bank CENTRAL ASIA Tbk

Jalan Raya Serang

Banten Province

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 33.0 billion

2009 – Rp. 35.0 billion

2010 – Rp. 36.0 billion

Net Profit (estimated) :

2008 – Rp. 2.5 billion

2009 – Rp. 2.8 billion

2010 – Rp. 3.0 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Sugianto Budhy Wibowo

Board of Commissioners :

Commissioner - Mr. Marlin Budhy Wibowo

Signatories :

Director (Mr. Sugianto Budhy Wibowo) 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$ 473,600 on 90 days D/A

OVERALL PERFORMANCE

P.T. GRASINDO PRIMASUKSES (P.T. GPS) was established in Serang, Banten Province on April 17, 2003 with the authorized capital of Rp. 3,500,000,000 issued capital of Rp. 1,500,000,000 entirely paid up. Founding and shareholders of the company are Mr. Marlin Budhy Wibowo and his son Mr. Sugianto Budhy Wibowo, both are Indonesian business family of Chinese extraction. The company notary deed has been changed and in July 2008 the issued capital was raised to Rp. 3,000,000,000 fully and paid up. With this development the composition of its shareholders has been changed to become Mr. Sugianto Budhy Wibowo (50%) and Mr. Marlin Budhy Wibowo (50%). The deed of amendment was made by Mrs. Agustina Junaedi, SH., a public notary in Serang and was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-51113.HT.01.02.TH.2008, dated August 14, 2008.

We observe that Mr. Marlin Budhy Wibowo and his son Mr. Sugianto Budhy Wibowo are also founders and business stakes owner of P.T. GRASINDO PRIMADAYA engaged in the field of marble manufacturing.

P.T. GPS started with operating since 2004 to deal with marble and granite manufacturing by manages a plant located at Kawasan Industri Pancatama, Jalan Pancatama IV A Kav. 38 B, Serang, Banten Province standing on 15,700 sq. meters of lands. The plants produce of marble and granite with capacity of 300,000 sq. meters per annum. The construction of the plant has absorbed an investment of Rp. 3.5 billion originating come from owned capital. The company has a complete set of advanced processing equipment, such as block cutter machines, automatic polishing processing lines and slabs, Gangsaw machines with 600 blades & special craft machines tumble, borders and irregular shaped processing equipment from Spain and Italy. The whole products marketed locally to various distributors and trader of stones in Jakarta, Serang, Cilegon, Karawang and Bandung (West Java), Semarang (Central Java) other cities in Indonesia. Some of the basic materials like marble slabs is imported from India and China. We observe that P.T. GPS 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.

In overall views we find the demand for ceramic tiles, sanitary wares and the like had been rising by 10% to 12% per year in the last five years, in line with the rapid growth of property sector like hotel, apartment, real-estate, office building, etc. Its projected the demand for ceramic tile will be rising in the last five years. While competition, is very tight due to a large number of similar companies operating in the country. The global economic crisis battering the country since October 2008 followed by the sharp Rupiah depreciation against US$, Japan Yen, EUR and other hard foreign currencies has brought bad impact to the property and constructing businesses such as the development of housings, real estates, office buildings, shopping buildings, apartments and others.

The Growth of Ceramics in Indonesia

Period 2006 – 2009

Description	2006	2007	2008	2009
Total Production (ton)	4,997,700	4,997,700	4,997,700	4,997,700
Real Production (ton)	4,796,864	4,193,955	4,162,500	3,871,200
Domestic Demand (ton)	2,484,124	2,500,000	3,926,527	3,760,111
Export (ton)	525,058	451,454	434,151	302,360
Import (ton)	212,318	148,354	198,178	168,921
Number of Employee (person)	200,000	200,000	200,000	200,000

Source: Department of Industry, Processed by ICB

Until this time P.T. GPS has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. GPS 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. 33.0 billion rose to Rp. 35.0 billion in 2009 increased to Rp. 36.0 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. 3.0 billion and the company has an estimated total networth of at least Rp. 9.0 billion. We observe that P.T. GPS 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. GPS is led by Mr. Sugianto Budhy Wibowo (48) a businessman and professional manager with experience in natural marble manufacturing and trade. 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. GRASINDO PRIMASUKSES is sufficiently fairly good for business transaction. However, in view of the global economic slowdown we recommend to treat prudently in extending a loan to the company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.79
UK Pound	1	Rs.73.19
Euro	1	Rs.63.59

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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