MIRA INFORM REPORT

Report Date :

09.11.2011

IDENTIFICATION DETAILS

Name :	P.T. SETIA KAWAN ABADI
Registered Office :	Jl. Sunter Paradise, Komplek Sunter Nirwana, Asri Tahap II Blok A No. 35 Sunter Agung Podomoro, Jakarta 11150
Country :	Indonesia
Date of Incorporation :	05.12.2003
Com. Reg. No.:	No. AHU-AH.01.10-28666.
Legal Form :	Limited Liability Company
Line of Business :	Trading, Import and Distribution of Pharmaceutical Raw Materials and Food Supplement

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	US$ 390,000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. SETIA KAWAN ABADI

company Address

Head Office

Previous address

Jl. Mangga Besar IV No. 18C

Taman Sari,

Jakarta 11150

Indonesia

New address

Jl. Sunter Paradise, Komplek Sunter Nirwana

Asri Tahap II Blok A No. 35

Sunter Agung Podomoro

Jakarta 11150

Indonesia

Phone - (62-21) 6583 6859 (hunting)

Fax - (62-21) 6414651

Building Area - 3 storey

Office Space - 220 sq. meters

Region - Commercial

Status - Owned

Branch

Mutiara Taman Palem Blok B1 No. 38

Jl. Outer Ring Road, Cengkareng

Jakarta 11730

Indonesia

Phone - (62-21) 54356615, 6012039

Fax - (62-21) 54356612

Building Area - 3 storey

Office Space - 180 sq. meters

Region - Commercial

Status - Owned

Date of Incorporation

05 December 2003

Legal Form

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

Company Reg.No.

The Ministry of Laws and Human Rights

a. No. AHU-30231.AH.01.02.Tahun 2008

Dated 04 June 2008

b. No. AHU-37120.AH.01.02.Tahun 2011

Dated 25 July 2011

c. No. AHU-AH.01.10-28666.

Dated 09 September 2011

Company Status

National Private Company

Permit by the Government Department

The Department of Finance

NPWP No. 02.321.038.8-032.000

Related Companies

Not available

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 5,000,000,000.-

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

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

Shareholders/Owners :

a. Mr. Hermanto - Rp. 1,350,000,000.-

Address : Jl. Kamboja No. 40

Dumai Kota, Dumai

Riau Province

Indonesia

b. Mr. Lokman Jamil - Rp. 1,200,000,000.-

Address : Jl. Kamboja No. 40

Dumai Kota, Dumai

Riau Province

Indonesia

c. Mr. Ramli - Rp. 450,000,000.-

Address : Jl. Tanah Kusir, RT006/RW.011

Jakarta Selatan

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

a. Trading, Import and Distribution of Pharmaceutical Raw Materials and Food Supplement

b. Manufacturing of SKA Nutraceutical (herbal medicines, supplements and natural health food and

drinks)

Production Capacity :

On the order basis

Total Investment :

Owned Capital - Rp. 5.0 billion

Started Operation :

2004

Brand Name :

SKA Nutraceutical

Technical Assistance :

None

Number of Employee :

48 persons

Marketing Area :

Domestic - 100%

Main Customers :

a. PT. Interbat

b. PT. Aventis Pharma

c. PT. Anugrah Argon Medica

d. PT. Dasa Esa Farma

e. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. PT. Sinar Intermak

b. PT. Talenta Sukma Sejati

c. PT. Tirta Husada Pharma

d. PT. Tirta Buana Chemindo

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

P.T. Bank CENTRAL ASIA Tbk

Sunter Mall Branch

Jl. Danau Sunter Utara Blok G7 III No. 1-2

Sunter Podomoro

North Jakarta

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 13.8 billion

2009 – Rp. 16.5 billion

2010 – Rp. 28.2 billion

2011 – Rp. 18.0 billion (January – June)

Net Profit (Loss) :

2008 – Rp. 690 million

2009 – Rp . 820 million

2010 – Rp. 1,400 million

2011 – Rp. 890 million (January – June)

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Ramli

Board of Commissioners :

President Commissioner - Mr. Hermanto

Commissioner - Mr. Lokman Jamil

Signatories :

The Director (Mr. Ramli) which must be approved by Board of Commissioners (Mr. Hermanto and Mr. Lokman Jamil)

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$ 390,000.- on the 90 days of payments

OVERALL PERFORMANCE

P.T. SETIA KAWAN ABADI (P.T. SKA) was established in Jakarta in December 2003 with the authorized capital of Rp. 5,000,000,000 of which Rp. 1,250,000,000 was issued and fully paid up. The founding shareholders of the company are Mr. Hermanto, Mr. Lokman Jamil, Mr. Among and Mr. Hai Liong, all Indonesian businessmen of Chinese extraction. The company’s Articles of Association has been changed and in May 2008 the issued capital was raised to Rp. 3,000,000,000 and fully paid up. With this development the composition of its shareholders has been changed to become Mr. Hermanto (45%), Mr. Lokman Jamil (40%) and Mr. Ramli (15%). The latest amendment to Articles of Association was made by Mr. Tio Jeffrens Marannella, SH., a public notary in Jakarta based on natarial deed No. 10, dated April 8, 2011 and it was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-28666, dated September 09, 2011. No changes have been effected in term of its shareholding composition and capital structures to date.

P.T. SKA is dealing with trading and importing of pharmaceutical raw materials, nutraceutical and herbal extracts. Ms. Umihani Sukma, an administrative staff of P.T. SKA, said that a large extent of the pharmaceutical chemicals is imported from China, India, Belgium, Germany, France, Swiss and other European countries. Whole products of the company are locally marketed among pharmaceutical industries including P.T. INTERBAT, P.T. DASA ESA FARMA, P.T. AVENTIS PHARMA, P.T. ANUGRAH ARGON MEDICA and others. The operation of the company has been increasing since its initial operation in 2004. In September 2007, P.T. SKA produces of SKA Nutraceutical and focused on the production of drugs, supplements and natural health food and drinks based nutraceutical (nutraceutical grade). The products are marketed through the MLM marketing system. We observe that P.T. SKA 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 we find the demand for pharmaceutical basic materials had been rising in the last five years in line with the growing of pharmaceutical industry in the country. The pharmaceutical products had been growing 6% to 7% per year in line with the development of hospitals, public clinics, dispensaries, drugstores, etc. Business prospect in the long run for pharmaceutical products is quite promising once unstable economic condition starts recovery. But competition is very tight due to a large number of similar companies operating in the country. The business position of P.T. SKA is a sufficiently good because the company has captive market namely the pharmaceutical companies in the country.

Until this time P.T. SKA 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. 13.8 billion, increased to Rp. 16.5 billion in 2009 rose again to Rp. 28.2 billion in 2010 and projected to go on rising by at least 10% in 2011. It is estimated the company has yielded a net profit of at least Rp. 1.4 billion in 2010 and the company has an estimated total networth at least Rp. 5.0 billion. We observe that P.T. SKA is supported by financially strong behind it. 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 P.T. SKA is led by Mr. Ramli (43) as director, a businessman with more than 7 years of experience in trading and distribution of pharmaceutical raw materials. In daily activities, he is assisted by a number of professional staffs having wide relation with private businessmen of home and overseas as well as with the government sectors. 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 business malpractices 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 believed that P.T. SETIA KAWAN ABADI is sufficiently fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.38
UK Pound	1	Rs.79.20
Euro	1	Rs.67.84

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.