MIRA INFORM REPORT

Report Date :

26.04.2012

IDENTIFICATION DETAILS

Name :	P.T. LENTERA MUTIARA SEJATI
Registered Office :	Jalan Raya Padalarang No. 273, Padalarang, Bandung 40553, West Java
Country :	Indonesia
Date of Incorporation :	30.03.1989
Com. Reg. No.:	No. AHU-22555.AH.01.02.TH.2009
Legal Form :	Limited Liability Company
Line of Business :	Trading, Import and Distribution of Textile Chemicals.
No. of Employees :	27

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$ 476,300
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 – September 30, 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. LENTERA MUTIARA SEJATI

Address

Head Office

Jalan Raya Padalarang No. 273, Padalarang, Bandung 40553, West Java, Indonesia

Phones - (62-22) 680 5858 (Hunting), 580 5859

Fax - (62-22) 680 5880, 680 9094

E-mail - office@ptlentera.co.id

Website - http://www.letera.co.id

Building Area - 1 storey

Office Space - 230 sq. meters

Region - Commercial Building

Status - Rent

Warehouse

Jalan Ciburuy, Padalarang, Bandung, West Java, Indonesia

Phones - (62-22) 699090

Fax - (62-22) 699090

Land Area - 7,500 sq. meters

Building Space - 5,000 sq. meters

Region - Industrial Zone

Status - Owned

Date of Incorporation

30 March 1989

Legal Form

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

Company Reg. No

The Ministry of Law and Human Rights

- No. C2-10870.HT.01.01.TH.89

Dated 29 November 1989

- No. AHU-22555.AH.01.02.TH.2009

Dated 25 May 2009

Company Status

Private National Company

Permit by the Government Department

The Department of Finance

NPWP No. 01.448.064.4-441.000

The Department of Industry and Trade

TDP No. 10.2.41.5.20.2086

Dated 16 December 2003

Related Company

A Member Company of the KOWARA Group (see attachment)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 1,000,000,000.-

Issued Capital : Rp. 250,000,000.-

Paid up Capital : Rp. 250,000,000.-

Shareholders/Owners :

a. Mr. Kwok Tjing Sung - Rp. 125,000,000.-

Address : Bandung, West Java

Indonesia

b. Mrs. Theresia Weena Worang - Rp. 125,000,000.-

Address : Bandung, West Java

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Trading, Import and Distribution of Textile Chemicals

Production Capacity :

None

Total Investment :

None

Started Operation :

1989

Brand Name :

Lentera Mutiara Sejati

Technical Assistance :

None

Number of Employee :

27 persons

Marketing Area :

Local - 100%

Main Customer :

Textile Industries

Market Situation :

Very Competitive

Main Competitors :

a. P.T. ARTA TRISNA LESTARI

b. P.T. CHEMIFIN JAYA UTAMA

c. P.T. INDOKIMIA MAKMUR

d. P.T. STOCKINDO KURNIA LESTARI

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank INTERNATIONAL INDONESIA Tbk

Jalan Asia Afrika No. 95-97

Bandung, West Java

Indonesia

b. P.T. Bank CENTRAL ASIA Tbk

Jalan Setiabudi No. 146

Bandung, West Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2009 – Rp. 32.0 billion

2010 – Rp. 34.0 billion

2011 – Rp. 36.2 billion

Net Profit (estimated) :

2009 – Rp. 1.8 billion

2010 – Rp. 2.0 billion

2011 – Rp. 2.4 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Kwok Tjing Sung

Board of Commissioners :

Commissioner - Mr. Hendrew Sastra Husnandar

Signatories :

Director (Mr. Kwok Tjing Sung) 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$ 476,300 on 90 days D/A

OVERALL PERFORMANCE

P.T LENTERA MUTIARA SEJATI (P.T LMS) was established in Bandung, West Java on March 30, 1989 with an authorized capital of Rp. 1.000.000.000 of which Rp. 200.000.000 was issued and paid up. The founding shareholders of the company are Mr. Kwok ( Kwee ) Tjing Ming and his brother Mr. Kwok ( Kwee ) Tjing Sung, both are Indonesian businessmen of Chinese extraction. The company notary deed had been changed and in April 1998 Mr. Kwok (Kwee) Tjing Ming pulled out and replaced by his brother Mr. Dipl. Ing. Antojo Kowara AKA Kwee Tjing Ling as new shareholder. Later on 24 November 2001, Mr. Dipl. Ing Antojo Kowara AKA Kwee Tjin Ling died and his entire shares were taken over by his heirs (Miss. Josephine Vaness, Miss. Maria Natasha, Miss. Valerie Melisa and Miss. Patricia Ananda).

Based on its notarial act of 18 January 2002 No. 05/I/2002 made by Mr. Koesbiono Sarmanhadi, SH., the shares of the late Mr. Dipl., Ing. Antojo Kowara went over into his wife Mrs. Theresia Weena Worang as the mother of the above said adolescent. In August 2008 the issued capital was raised to Rp. 250,000,000 entirely paid up. With this development the composition of its shareholders has been changed to become Mr. Kwok Tjing Sung (50%) and Mrs. Theresa Weena Worang (50%). The latest revision of notary deed was made by Mr. Agus Muliadi, SH., a public notary in Bandung and was approved by the Minister of Law and Human Rights in its decision letter No. AHU-22555.AH.01.02.TH.2009 dated May 25, 2009.

We observed that the late Mr. Dipl., Ing. Antojo Kowara AKA Kwee Tjin Ling was founder and majority business stakes owners of the KOWARA Group, a medium-size business group in Indonesia.

P.T LMS has been in commercial operation since 1989 in trading and distribution of textile chemicals such as dyestuff and auxiliaries. Currently, it has grown to a reputable company which serves all demands of textile processing, from sizing, pre-treatment, dyeing, printing, and finishing in Indonesia. To support of its activities P.T. LMS is appointed as the sole agent and authorized distributor of Textile Chemie DR. PETRY GmbH and AGRANA Starke GmbH both are of Germany; EVERLIGHT CHEMICAL INDUSTRIAL Corp, SUN RISE CHEMICAL (Optical Brightening) and BLATTMAAN TAIWAN Corp., all of Taiwan. In mid 1998 the company expanded by producing Nitrocellulose Pencil Lacquer for the KOWARA Group. The production capacity has reached 500 tons per annum, some of which are exported to other countries. Being an environmentally responsible company, in 2008 we initiated a research to develop water based pencil lacquers, with production started in 2009. Considering that most of the company’s customers are located in Bandung, P.T. LMS had put their head quarter and laboratory in this beautiful city with branches in Jakarta and Solo.

The company policy is to achieve best results, which consistently satisfy their customers. Mr. Benyamin, the marketing manager of P.T LMS, explained that the company sells its products directly to the end users especially textile companies such as the HADTEX Group, the CANDRATEX Group, the FUJITEX Group, the BINTANG AGUNG Group, P.T GIRI ASIH JAYA, P.T ARGO PANTES and so forth. Some 80% of P.T LMS customers are located in Bandung, West Java and the others in Jakarta, Central Java and East Java. The company’s operation has kept on growing slowly in the last four years.

The domestic demand for various types of chemical products had been rising by 8% to 10% on the average per annum in the last five years in line with the rapid growth of various industrial sectors including paint industry, plastic, ink, textile, rubber, printing and others in the above period of times as the consumers. But, later dwindled as the global economic slowdown since October 2008, followed by tight money policy imposed by Indonesian Central Bank (Bank Indonesia) and also heated by political issue in the country. The demand growth started to awake in June 2009 in line with the amelioration of economic condition in the country. Market competition is very tough on account of large number of other similar companies operating in the country. P.T. LMS business position in this case is not too badly because it has built regular customers and extensive marketing network all across the

country.

Imports of Raw Materials and Auxiliary Goods, 2004-2010

Year	Food and Beverages Mainly for Industry (Million US$)		Raw Materials for Industry (Million US$)
	Primary	Processed	Primary	Processed
2004	1,456.7	568,6	2,236.3	15,357.8
2005	1,325.3	830,4	2,064.0	17,407.0
2006	1,352.2	909,1	2,438.7	18,050.7
2007	2,079.1	1,537.1	2,827.4	21,759.1
2008	3,244.5	1,271.6	4,722.3	40,312.9
2009	2,640.9	1,582.0	2,901.7	29,248.7
2010	3,074.8	2,165.9	4,539.5	41,714.3

Until this time P.T. LMS has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. LMS is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2009 amounted to Rp. 32.0 billion rose to Rp. 34.0 billion in 2010 increased to Rp. 36.2 billion in 2011 and projected to go on rising by at least 4% in 2012. The operation in 2011 yielded an estimated net profit of at least Rp. 2.4 billion and the company has an estimated total net worth of at least Rp. 5.5 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. LMS is led by Mr. Kwok Tjing Sung (52) a businessman and professional manager with experience in trading, import and distribution of chemical. 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. LENTERA MUTIARA SEJATI is sufficiently fairly good for business transaction.

Attachment:

List of the KOWARA Group Members

1. A.W. FABER CASTELL INDONESIA, P.T. (Pencil Color Manufacturing)

2. DYERA HUTAN LESTARI, P.T. (Forestry Concession)

3. FABERINDO PERKASA, P.T. (Trading and Distribution)

4. HIJAU INDAH, P.T. (Trading, Supplier and Distribution of Textile Chemicals)

5. LENTERA MUTIARA SEJATI, P.T. (Trading, Import and Distribution of Chemicals)

6. LENTERA MAHAPUTRA BUANA, P.T. (Woodbased Industry)

7. PENCIL LEAD INDONESIA, P.T. (Pencil Lead Manufacturing)

8. PENSILINDO PRATAMA, P.T. (Pencil Manufacturing)

9. XYLO INDAH PRATAMA, P.T. (Pencil Slates manufacturing and Investment Holding)

10. XYLORAMIN INDAHMANUNGGAL, P.T. (Woodworking Industry)

11. SENTOSA HASTA KREASI, P.T. (Trading)

12. Etc.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.49
UK Pound	1	Rs.84.66
Euro	1	Rs.69.25

INFORMATION DETAILS

Report Prepared by :

NIT

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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