MIRA INFORM REPORT

Report Date :

07.12.2012

IDENTIFICATION DETAILS

Name :	P.T. SAFIRPUTRA PERDANA
Registered Office :	Komplek Sepanjang town House,. Jl. Raya Kalijaten No. 71-73, Block C9-10, Taman, Sidoarjo, East Java
Country :	Indonesia
Year of Establishment :	2006
Com. Reg. No.:	No. AHU-19913.AH.01.02.Tahun 2012
Legal Form :	Limited Liability Company
Line of Business :	Trading, Import and Distribution of Women Beauty Equipment and Accessories
No. of Employees :	12 employees

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

Status :	Satisfactory
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Indonesia	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Indonesia - ECONOMIC OVERVIEW

Indonesia, a vast polyglot nation, grew an estimated 6.1% and 6.4% in 2010 and 2011, respectively. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a small current account surplus, a fiscal deficit below 2%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2012 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of rising oil prices.

Source : CIA

Name of Company

P.T. SAFIRPUTRA PERDANA

Company Address

Head Office

Komplek Sepanjang town House

Jl. Raya Kalijaten No. 71-73, Block C9-10

Taman, Sidoarjo, East Java

Indonesia

Phones - (62-31) 787 3500

Fax - (62-31)

Building Area - 3 storey

Office Space - 210 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation

2006

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

No. AHU-19913.AH.01.02.Tahun 2012

Dated 18 April 2012

Company Status

National Private Company

Permit by the Government Department

The Department of Finance

NPWP No. 01.743.623.9-603.000

Related Company

TIAN SHOP ONLINE (Trading and Distribution of Women Accessories)

CAPITAL AND OWNERSHIP

Capital Structure :

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

Issued Capital - Rp. 125,000,000.-

Paid up Capital - Rp. 125,000,000.-

Shareholders/Owners :

a. Mr. Said Awad Hayaza - Rp. 75,000,000.- (60%)

Address : Jl. Wonocolo, RT.06, RW.03

Kec. Taman, Sidoarjo

East Java

Indonesia

b. Mr. Abdillah Badnen - Rp. 50,000,000.- (40%)

Address : Jl. Petukangan I/8, RT.007, RW.005

Kec. Ampel, Semampir

Surabaya, East Java

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Trading, Import and Distribution of Women Beauty Equipment and Accessories

Production Capacity :

None

Total Investment :

Owned Capital - Rp. 500 million

Started Operation :

2006

Brand Name :

Safirputra Perdana

Technical Assistance :

None

Number of Employee :

12 persons

Marketing Area :

Local - 100%

Main Customer :

a. TIAN SHOP ONLINE

b. Corporate and Individual

Market Situation :

Very Competitive

Main Competitors :

a. PT. Madusari Indotama

b. PT. GAP Agrifood Export

c. PT. Sarana Bali Utama

d. PT. Mahkota Sakti Jaya

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

P.T. Bank CENTRAL ASIA Tbk

Sidoarjo Branch

Jl. Raya Wonocolo No. 59, Taman

Sepanjang, Sidoarjo, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2009 – Rp. 11.0 billion

2010 – Rp. 13.5 billion

2011 – Rp. 15.8 billion

2012 – Rp. 8.6 billion (January – June)

Net Profit (estimated) :

2009 – Rp. 605 million

2010 – Rp. 743 million

2011 – Rp. 869 million

2012 – Rp. 472 million (January – June)

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Said Awad Hayaza

Board of Commissioners :

Commissioner - Mr. Abdillah Badnen

Signatories :

Director (Mr. Said Awad Hayaza) which must be approved by Board of Commissioner (Mr. Abdillah Badnen)

CAPABILITIES

Management Capability :

Satisfactory

Business Morality :

Satisfactory

OVERALL PERFORMANCE

P.T. SAFIRPUTRA PERDANA (P.T. SPP) was established in 2006 in Sidoarjo, East Java. However, we don’t know the amount of the company’s capital and initial shareholders. The articles of association of the company have been revised, most recently by notarial deed of Tantien Bintarti, SH., No. 69 dated October 26, 2011 the authorized capital was Rp. 500,000,000.- of which Rp. 125,000,000.- was issued and fully paid up. Since at the time, the shareholders of the Company are Mr. Said Awad Hayaza (60%) and Mr. Abdillah Badnen (40%), both are Indonesian businessmen of Saudi Arabia extraction. The amendment to Article of Association has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-19913.AH.01.02.Tahun 2012 dated April 18, 2012. No changes have been effected in term of its shareholding composition and capital structures to date.

P.T. SSP has been operating since 2006 in trading, import and distribution of women beauty equipment and accessories. Ms. Ningsih, an administrative staff of the company explained that P.T. SSP sells a various of female beauty equipment and accessories such as cosmetics, sleeping bust beauty, corset 4 step shape, walk fit platinum, germanium slimming suit, silicon messaging gel, sleeping beauty hip pant, sexy pad underwear, slimming nigh legging and others. The above products are imported from China, Japan, Taiwan and others. Ms. Ninggsih added that the products are marketed locally to its affiliate Tian Shop Online, Corporate and Individuals in Sidoarjo, Surabaya, Malang and other cities in East Java. P.T. SSP is classified as a small 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 female beauty equipment and accessories had been rising by the average 6% to 8% per year within the last five years in line with the growth of the electricity (power plant) industry in the country. But since the global economic crisis and tight money policy being imposed by Bank Indonesia in October 2008 the demand was decreased within due to a poor economic condition, decreasing income per capita and a weak in public purchasing power. The demand was increasing in the early 2009 due to economic condition was gradually recovery in the country. The growth rate is now estimated at 5% to 7% per year. Market competition is very tight due to a large number of similar companies operating in the country. Business position of P.T. SSP is favorable for it has controlled a wide marketing network at home especially in Sidoarjo, Surabaya, Malang and other cities in East Java.

Until this time P.T. SPP has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. SPP 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. 11.0 billion increased to Rp.13.5 billion in 2010 rose again to Rp. 15.8 billion in 2011 and projected to go on rising by at least 10% in 2012. The operation in 2011 yielded an estimated net profit of at least Rp. 869 million and the company has an estimated total net worth of at least Rp. 1.0 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. SPP is led by Mr. Said Awad Hayaza (47) as Director, a businessman of Arab descent with more than 15 years experience in trading and distribution of female beauty equipment and accessories. He is assisted by Mr. Abdillah Badnen (49) as Commissioner and a number of expert staffs 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. SAFIRPUTRA PERDANA is sufficiently fairly good for business transaction. But owing to economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.47
UK Pound	1	Rs.87.63
Euro	1	Rs.71.12

INFORMATION DETAILS

Report Prepared by :

MNL

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.