MIRA INFORM REPORT

Report Date :

06.02.2012

IDENTIFICATION DETAILS

Correct Name :	P.T. HAJI LATUNRUNG LISTRIK & KONSTRUKSI
Registered Office :	Jl. Mangadel No. 61, Kelurahan Ujung Pandang Baru, Makassar 90214, South Sulawesi
Country :	Indonesia
Date of Incorporation :	27.06.1994
Com. Reg. No.:	No. AHU-25032.AH.01.02.Tahun 2011
Legal Form :	Limited Liability Company
Line of Business :	Power Plant Development and Contracting Services
No. of Employees :	60

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$ 706,000
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 – 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

Correct Name of Company

P.T. HAJI LATUNRUNG LISTRIK & KONSTRUKSI

company Address

Head Office

Jl. Mangadel No. 61

Kelurahan Ujung Pandang Baru

Makassar 90214, South Sulawesi

Indonesia

Phones - (62-411) 448276, 448278-9

Fax - (62-411) 452261

Building Area - 2 storey

Office Space - 240 sq. meters

Region - Commercial

Status - Owned

Date of Incorporation

27 June 1994

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

a. No. C2-9.541.HT.01.01.TH.97

Dated 17 September 1997

b. No. C-21649.HT.01.04.TH.2002

Dated 07 November 2002

c. No. AHU-25032.AH.01.02.Tahun 2011

Dated 19 May 2011

Company Status

National Private Company

Permit by the Government Department

The Department of Finance

NPWP No. 01.250.569.9-801.000

Affiliated/Associated Company

Not available

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 2,000,000,000.-

Issued Capital - Rp. 2,000,000,000.-

Paid up Capital - Rp. 2,000,000,000.-

Shareholders/Owners :

a. Mrs. Hajjah Andi Silvi La Tinro - Rp. 660,000,000.- (33.00%)

b. Miss Andi Sugiratu La Tinro - Rp. 335,000,000.- (16.75%)

c. Mr. Andi Sanggalangi La Tinro - Rp. 335,000,000.- (16.75%)

d. Mr. Andi Tenri Liwang La Tindro - Rp. 335,000,000.- (16.75%)

e. Mr. Andi Liu Were Latinro - Rp. 335,000,000.- (16.75%)

BUSINESS ACTIVITIES

Lines of Business :

Power Plant Development and Contracting Services

Production Capacity :

None

Total Investment :

None

Started Operation :

1995

Brand Name :

HAJI LATUNRUNG

Technical Assistance :

None

Number of Employee :

60 persons

Marketing Area :

Local - 100%

Main Customers :

a. PT. Perusahaan Listrik Negara (PLN)

b. Regional Drinking Water Company (PDAM)

c. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. PT. Sulawesi Indo Energy

b. PT. Bosowa Energy

c. PT. Energy Sengkang

d. PT. Prodigy Energy Resources

e. PT. Makassar Power

f. PT. Poso Energi

g. PT. Sulawesi Mini Hidro

h. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank MANDIRI Tbk

Makassar Branch

Jl. R.A. Kartini No. 12-14

Makassar, South Sulawesi

Indonesia

b. P.T. Bank CENTRAL ASIA Tbk

Makassar Branch

Jl. Jend. A. Yani No. 31-31A

Makassar, South Sulwesi

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Total Income/Sale (estimated) :

2008 – Rp. 42.0 billion

2009 – Rp. 51.0 billion

2010 – Rp. 57.0 billion

2011 – Rp. 66.0 billion

Net Profit (estimated) :

2008 – Rp. 1.9 billion

2009 – Rp. 2.4 billion

2010 – Rp. 2.7 billion

2011 – Rp. 3.2 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Rizal Makmur

Director s - a. Miss Andi Sugiratu La Tinro

b. Mr. Andi Sanggalangi La Tinro

c. Mr. Andi Oddang Rio

Board of Commissioner :

President Commissioner - Mrs. Hajjah Andi Silvi

Commissioners - a. Mr. Andi Tenri Liwang La Tinro

b. Mr. Andi Liu Were Latinro

Signatories :

President Director (Mr. Rizal Makmur) or one of the Directors (Miss Andi Sugiratu La Tinro, Mr. andi Sanggalangi La Tinro and Mr. Andi Oddang rio) which must be approved by Board of Commissioner (Mrs. Hajjah Andi Silvi).

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

Credit Risk :

Below average

Credit Recommendation :

Credit can be proceeded normally

Proposed Credit Limit :

Moderate amount

Maximum Credit Limit :

US$ 706,000 on 90 days D/A

OVERALL PERFORMANCE

The complete name of the company is P.T. HAJI LATUNRUNG LISTRIK & KONSTRUKSI (P.T. HLLK) was established in Makassar (South Sulawesi) on September 17, 1977 with an authorized capital of Rp 500,000,000 of which Rp. 100,000,000 was issued and fuly paid up. The founding shareholders of the company are Mrs. Hajjah Andi Silvi La Tinro, her daughter Miss Andi Sugiratu La Tinro and her sons Mr. Andi Sanggalangi La tinro, Mr. Andi Tenri Liwang La tinro, Mr. Andi Liu Were La Tinro and her business partner Mr. Andi Oddang Rio. They are indigenous businessmen and woman family. The company's notarial act was since revised a couple of times. In 2002 the authorized capital was increased to Rp 2,000,000,000.- entirely was issued and fully paid up. In April 2011, Mr. Andi Oddang Rio pulled out and his shares are sold to Mrs. Hajjah Andi Silvi La Tinro. Since the time, the shareholders of P.T. HLLK are Mrs. Hajjah Andi Silvi La Tinro and her daughters and her sons. We observe that Mrs. Hajjah Andi Silvi La Tinro is wife of Mr. Ir. H. La Tinro La Tunrung (56), now served as Regent of Enrekang Regency (2009-2014).

P.T. HLLK has been operating since 1978 in the development and supply of electric power, which cover type of business: development of electricity generation, power transmission and power distribution. It also moves in building contractors and consulting services related to electric power, construction and installation of electricity equipment and development of equipment technology which supports electricity provision. In its operation P.T. HLLK also acts as a supplier of electrical equipment for the needs of the State Electricity Company (PT. PLN), for Enrekang region, one of level II regions in South Sulawesi province. In the field of building contractor services, P.T. HLLK has been working on several residential areas development projects (real estate), retail and office buildings in Enrekang regency. In mid-2011, P.T. HLLK and P.T. PLN signed a power purchase agreement for the construction of mini hydro power plant in the Bungin district, Enrekang regency of 2 x 1.5 MW capacities. P.T. HLLK expected that construction of this project will begin immediately and was expected to be completed before 2014.

In general, we observed that currently electric power is in crisis in several regions in Indonesia, including in the area of South Sulawesi. To overcome the energy crisis and electric power emergency in South Sulawesi, the National Energy Board (one of the institutions established by the President to handle electricity crisis in Indonesia) and several high-ranking officials of State Electricity Company PLN, invited a number of investors and developers to engage in construction of electric power in certain provinces. Several power projects new were newly completed are Steam Power Plant Barru of 2 x 50 MW capacities and operated on July 2001 and 2011. In addition, there are several other power plant projects recently completed among them Sengkang power plant, power plant Poso, Micro Power Plant Tangka Manipi and Power Plant Bosowa.

Currently there were number of private companies that were involved in the field of power plant construction in South Sulawesi region in addition to PT HLLK, among others PT. Sulawesi Indo Energy, PT. Bowosa Energy, PT. Energy Sengkang, PT. Makassar Power, PT. Poso Energy, PT. Radiant Energy Resources and PT. Sulawesi Mini Hindro. It is expected that power plant construction to continue to increase in coming years.

The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly. P.T. HLLK’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated that total sales turnover of the company in 2008 increased to Rp. 42.0 billion increased to Rp. 51.0 billion in 2009 to Rp. 57.0 billion in 2010 and rose again to Rp. 66.0 billion in 2011. The operation of the company in 2011 is estimated to have gained a net profit of Rp. 3.2 billion with a total networth of Rp. 20.0 billion. It’s the sales turnover is projected to be rising by 8% in 2012. So far, we did not hear that P.T. HLLK has been black listed by Bank Indonesia (Central Bank) or involved in detrimental cases being settled in the court. The payment habit of the company has been running smoothly ranging from 1 to 3 months.

The management of P.T. HLLK is headed by Mr. Rizal Maknun (46), a professional manager who experienced for more than 10 years in the field of power plant development and contracting services. In daily activities, he is assisted by Miss Andi Sugiratu La Tinro (24), Mr. Andi Sanggalangi La tinro (23) and Mr. Andi Oddang Rio (48), respectively as directors. The management has maintained a wide marketing network among consuming industries and among private businessmen at home and abroad as well as among governmental sectors. As far as business is concerned the management has never involved in any fraudulent dealings or detrimental case was recorded at the local court.

We believe that P.T. HAJI LATUNRUNG LISTRIK & KONSTRUKSI is good for normal business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.96
UK Pound	1	Rs.77.47
Euro	1	Rs.64.39

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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