MIRA INFORM REPORT

Report Date :

14.04.2012

IDENTIFICATION DETAILS

Name :	P.T. PRAKARSA ALAM SEGAR
Registered Office :	Jalan Raya Kaliabang Bangur RT 001 RW 001 pejung Medan Satria Bekasi 17131 West java
Country :	Indonesia
Date of Incorporation :	February, 2003
Com. Reg. No.:	No. AHU-AH.01.10-27217
Legal Form :	Limited Liability Company
Line of Business :	Instant Noodles Processing
No. of Employees :	1,600 persons

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$ 2,500,000
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 – September 30, 2011

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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. PRAKARSA ALAM SEGAR

Address of Company

Head Office & Factory

Jalan Raya Kaliabang Bungur RT. 001, RW. 001

Pejuang, Medan Satria

Bekasi, 17131

West Java

Indonesia

Phones - (62-21) 88872348, 88976716

Fax - (62-21) 88976676

E-mail - info@prakarsaalamsegar.co.id

Land Area - 111,000 sq. meters

Building Space - 78,900 sq. meters

Region - Industrial Zone

Status - Owned

Date of Incorporation

February 2003

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

- No. C-20305 HT.01.04.TH.2005

Dated 22 July 2005

- No. AHU-84263.AH.01.02.TH.2008

Dated 11 November 2008

- No. AHU-61177.AH.01.02.TH.2009

Dated 15 December 2009

- No. AHU-AH.01.10-27217

Dated 27 October 2010

Company Status

National Private Company

Permit by the Government Department :

The Department of Finance

NPWP No. 02.181.940.4-431.000

The Department of Industry and Trade

TDP No. 102611501733

Dated 4 August 2005

Related Company

A Member Company of the WINGS Group (see attachment)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 200,000,000,000.-

Issued Capital : Rp. 139,200,000,000.-

Paid up Capital : Rp. 139,200,000,000.-

Shareholders/Owners :

a. P.T. MITRAJAYA EKAPRANA - Rp. 138,950,000,000.-

Address : Jl. Kopi No. 2 K, Roa Malaka

Jakarta Barat

Indonesia

b. Mr. Finney Henry Katuari - Rp. 125,000,000.-

Address : Jl. Perdatam Raya No. 2

Pancoran, Jakarta Selatan

Indonesia

c. Mr. Hanny Sutanto - Rp. 125,000,000.-

Address : Simprug Garden II B. F8.9

Grogol Selatan, Jakarta Selatan

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Instant Noodles Processing

Production Capacity :

Instant Noodles - 80,000 tons p.a.

Total Investment :

Owned Capital - Rp. 138.0 billion

Started Operation :

December 2003

Brand Name :

Mie Sedaap

Technical Assistance :

None

Number of Employee :

1,600 persons

Marketing Area :

Local - 100%

Main Customers :

a. Distributors

b. Supermarkets

c. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. P.T. ABC PRESIDENT ENTERPRISES

b. P.T. ASIAFOOD SEJAHTERA

c. P.T. INDOFOOD SUKSES MAKMUR Tbk

d. P.T. ULTRA PRIMA PANGAN LESTARI

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

a. P.T. Bank NEGARA INDONESIA Tbk

Jalan Raya Pejuangan, Medan Satria

Bekasi, West Java

Indonesia

b. P.T. Bank MANDIRI Tbk

Jalan Jend. Gatot Subroto Kav. 36-38

Jakarta Selatan

Indonesia

c. P.T. Bank PERMATA Tbk

Jalan Jend. Sudirman Kav. 28

Jakarta Pusat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2009 – Rp. 136.0 billion

2010 – Rp. 144.0 billion

2011 – Rp. 155.0 billion

Net Profit (estimated) :

2009 – Rp. 11.6 billion

2010 – Rp. 12.9 billion

2011 – Rp. 14.0 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Eddy William Katuari

Vice President Director - Mr. John Michael Sutanto

Directors - a. Mr. Hanny Sutanto

b. Mr. Ronald Suciawan

c. Mr. Andrew Katuari

Board of Commissioners :

President Commissioner - Mr. Hendrik Tanoyo

Commissioners - a. Mr. Handoyo Sutanto

b. Mr. Teddy Jeffrey Katuari

Signatories :

President Director (Mr. Eddy William Katuari) or Vice President Director (Mr. Johan Michael Sutanto) or one of the Directors (Mr. Hanny Sutanto, Mr. Ronald Suciawan or Mr. Andrew Katuari) 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$ 2,500,000 on 90 days D/A

OVERALL PERFORMANCE

P.T. PRAKARSA ALAM SEGAR (P.T. PAS) was established in Bekasi, West Java in February 2003 with an authorized capital of Rp. 8,500,000,000 entirely issued and paid up. The founding shareholders of the company are Mr. Hanny Sutanto, Mr. Finney Henry Katuari and P.T. MITRAJAYA EKAPRANA, a national private company in investment holding. The company notary deed has been changed a couple of times. Then, in December 2003 the authorized capital was raised to Rp. 14,750,000,000 entirely issued and paid up. In July 2005, the authorized capital raised again to Rp. 50,000,000,000 issued capital to Rp. 35,000,000,000 fully and paid up. Then in October 2008 the authorized capital was increased to Rp. 100,000,000,000 issued capital to Rp. 89,200,000,000 entirely paid up. The deed of amendment was made by Mr. Benny Kristianto, SH., was approved by the Ministry of Law and Human Right with the latest Decision Letter No. AHU-84263.AH.01.02.TH.2008, dated November 11, 2008. Later according to the latest revision of notary documents of Dr. Irawan Soerodjo, SH., M.Si., No. 55 dated 3 September 2010 the authorized capital was raised to Rp. 200,000,000,000 issued capital to Rp. 139,200,000,000 fully and paid up. With this development the composition of its shareholder has been changed to become P.T. MITRAJAYA EKAPRANA (99.82%), Mr. Hanny Sutanto (0.09%) and Mr. Finney Henry Katuari (0.09%). The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-27217 dated October 27, 2010.

The majority shareholder namely P.T. MITRAJAYA EKAPRANA is a national private company in investment holding and the majority business stakes is controlled by the late Mr. Johannes Ferdinand Katuari AKA Oen Jong Khing and his family and Mr. Harjo Sutanto AKA Tan Siek Miauw and family. Both families are also the founders and majority business stakes owners of the WINGS Group, a large business group specializing in detergent products industry and distribution in the country.

P.T. PAS is a national private company dealing with instant noodles processing industry by managing a plant located at Jalan Raya Kaliabang Bungur, RT. 001/001, Pejuang, Medan Satria, Bekasi, West Java on a land of some 111,000 sq. meters. The plant is located on an 11 ha site, formerly a textile factory, in an industrial area of Bekasi, and opened in December 2003. The plant currently has existing noodle lines and expects to add more in the next years. Electricity is provided from the local grid, with small backup diesel generating sets. Steam is used to heat oil for cooking, and is produced currently in 3 diesel-fired boilers of 10, 7 and 5 T/hr respectively. As part of the plant improvements, a 20 T/hr gas-fired boiler will be added, and all units will be converted to use gas as a fuel. Sanitary wastes are currently treated in septic systems which are pumped out frequently. Process wastewater is currently de-greased and pumped to a storage pond on site for passive oxidation and infiltration to ground. Solid wastes include largely waste plastics from packaging which are currently stockpiled on site but will be recycled for packaging.

Other wastes such as paper and scrap metal are also recycled if possible, or sold to other users, with any remainder being sent to the Bekasi municipal landfill. Used cooking oil is reused, and also sold for refining. This plant plans to get ISO 9001 quality certification, along with Good Management Practices (GMP) certification. The plant has been operating since December 2003 producing instant noodles of 80,000 tons per annum. Some of the raw materials like ingredients imported from China and India and the rest from locals. Meanwhile wheat flour is obtained from P.T. PANGANMAS INTI PERSADA, P.T. BOGASARI FLOUR MILLS and P.T. SRIBOGA RATURAYA. About 95% of instant noodle products are marketed locally under trademark MIE SEDAAP (containing 40 per box) and the rest 5% is exported. We observe the operation of P.T. PAS has been growing well in the last three years.

In overall we find the demand for fruit juice drinks had been fluctuating within the last five years. The Department of Industry and Trade indicated the realization production capacity of juice had been fluctuating within the last five years. Production of instant noodles in Indonesia had been rising within the last six years, it links closely with the booming of instant noodles producers by the existence of new producers like P.T. SENTRAFOOD INDONUSA CORPORATION, P.T. SENTRABOGA INTI SELERA, P.T. MILLENIA PANGAN MAKMUR and P.T. TSUN FOOD INDONESIA. The latest brand is the entering P.T. PAS by launching instant noodles with Mie Sedaap brands in 2003. Competition is very tight due to a large number of similar companies operating in the country with popular brands INDOMIE, SARIMIE produced by P.T. INDOFOOD SUKSES MAKMUR Tbk, and others.

Production Growth of Instant Noodles, Wet Noodles

Dry Noodles in Indonesia, 2005 – 2010*

Year	Instant Noodles (Ton)	Wet Noodles (Ton)	Dry Noodles (Ton)
2005	1,357,630	382,046	85,481
2006	1,392,956	392,742	89,156
2007	1,455,427	412,560	91,757
2008	1,500,000	400,921	89,134
2009	1,800,000	452,255	96,044
2010*	1,940,000	488,435	103,727

Source: Central Bureau of Statistics (BPS) processed by ICB*) Projected

Until this time P.T. PAS 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 2009 amounted to Rp. 136.0 billion rose to Rp. 144.0 billion in 2010 increased to Rp. 155.0 billion in 2011. It is projected the sales turnover will be rising by at least 5% in 2012. Its estimated the company has gained a net profit of at least Rp. 14.0 billion with an estimated total net worth of at least Rp. 141.0 billion. We observe that P.T. PAS is supported by the WINGS Group, 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. PAS is headed by Mr. Eddy William Katuari (61), a professional manager and top figure of the WINGS Group, with experience for some 27 years in many business activities including health drinks and instant noodles processing and in detergent industry and distribution. Daily activity he is assisted by Mr. John Michael Sutanto (42) as Vice President Director. The management is also handled by other professional managers, having maintained a wide relation with private businessmen at home and abroad as well as with government sectors. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. PRAKARSA ALAM SEGAR is sufficiently fairly good for business transaction.

Attachment:

List of the W I N G S Group Members

1. ADYABUANA PERSADA, P.T. (Ceramic Floor Tile Manufacturing)

2. AKTIF INDONESIA INDAH, P.T. (Industrial Chemicals Processing)

3. ASPIRASI LUHUR, P.T. (Investment Holding)

4. BIMA MAS SEJATI JAYA, P.T. (General Trading)

5. BIMA NUSA RAJAWALI, P.T. (General Trading)

6. CIPTA SEGAR HARUM, P.T. (Cosmetic Manufacturing)

7. DIAN LESTARI PERDANA, P.T. (Office Block Rental Management)

8. EKA TATA MAKMUR, P.T. (Real Estate and Housing Development)

9. EKATAMA RAYAINDAH, P.T. (Housing Development)

10. EKONOMI RAHARJA, P.T. Bank (Banking)

11. FOSFINDO, P.T. (Investment Holding)

12. FINDECO JAYA, P.T. (Alkyl Benzene Sulfonate Processing)

13. KARUNIA ALAM SEGAR, P.T. (Instant Noodles Processing Industry)

14. LION WINGS, P.T. (Cosmetic, Detergent, Toothpaste and Sanitary Napkin Manufacturing)

1. MULTI INDOMANDIRI, P.T. (Glass Tablewares Manufacturing)

2. MULTINUSA LESTARI, P.T. (Housing Development)

3. MULTIPACK UNGGUL, P.T. (Corrugated Box, Printing and Soft Packaging Manufacturing)

4. PETRO CENTRAL, P.T. (Industrial Chemical Processing)

5. PRAKARSA ALAM SEGAR, P.T. (Instant Noodles Processing Industry)

6. PONDOK PALEMINDAH, P.T. (Housing Development)

7. PONDOK PALEM INDAH PERMAI, P.T. (Housing Development)

8. PONDOK PALEM INDAH RAYA, P.T. (Housing Development)

9. SAYAP MAS UTAMA, P.T. (Soap and Cosmetic Industry)

10. SADHANAGRAHA ADHIKA, P.T. (Investment Holding)

11. SARANAGRIYA LESTARI KERAMIK, P.T. (Ceramic Industry)

12. SATYAWADA MITRAUSAHA (Investment Holding)

13. SIAM-INDO CONCRETE PRODUCTS, P.T. (Natural Fiber Cement/Roofing Sheets Manufacturing)

14. SIAM-INDO GYPSUM INDUSTRY, P.T. (Gypsum Plasters and Compound Manufacturing)

15. SRIWIJAYA ALAM SEGAR, P.T. (Food Processing Industry)

16. TIRTA ALAM SEGAR, P.T. (Food and Beverages Processing Industry)

17. UNGGUL INDAH CORPORATION, (Industrial Chemical Processing)

18. VARIA INDOWIN PERKASA, P.T. (Integrated Shrimp Culture)

19. WINGS SURYA, P.T. (Soap, Detergent, Waterglass and Plastic Packaging Industry)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.41
UK Pound	1	Rs.81.93
Euro	1	Rs.67.66

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.