MIRA INFORM REPORT

Report Date :

12.01.2012

IDENTIFICATION DETAILS

Name :	P.T. HASIL DAMAI TEXTILE

Registered Office :	Jalan Cisirung Km, 2, Kelurahan Cangkuang Barat, Kecamatan Dayeuhkolot Bandung, 40258,West Java

Country :	Indonesia

Date of Incorporation :	02.02.2011

Com. Reg. No.:	No. AHU-15994.AH.01.01.TH.2011

Legal Form :	Limited Liability Company

Line of Business :	Non woven fabric, polyester spunbond, needle punch and polyester recycle staple fiber manufacturing

No. of Employees :	115

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	US$ 328,900
Status :	New company
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

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. HASIL DAMAI TEXTILE

Company Address

Head Office & Factory

Jalan Cisirung Km, 2

Kelurahan Cangkuang Barat, Kecamatan Dayeuhkolot

Bandung, 40258

West Java

Indonesia

Phones - (62-22) 5224545, 5225050

Fax - (62-22) 5222552

E-mail - info@hadtex.com

Website - http://www.hadtex.com

Land Area - 10,000 sq. meters

Building Space - 7,800 sq. meters

Region - Industrial Zone

Status - Owned

Date of Incorporation

02 February 2011

Legal Form

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

Company Reg. No

The Ministry of Law and Human Rights

No. AHU-15994.AH.01.01.TH.2011

Dated 29 March 2011

Company Status

Private National Company

Permit by the Government Department

The Department of Finance

NPWP No. 31.278.301.2-445.000

Related Company

A Member of the HADTEX or PANASIA Group (see attachment)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 40,000,000,000.-

Issued Capital : Rp. 28,950,000,000.-

Paid up Capital : Rp. 28,950,000,000.-

Shareholders/Owners :

a. Mr. Henry Hidjaja - Rp. 14,475,000,000.-

Address : Jl. Kyai Gede Utama No. 19, RT. 003

RW. 008, Kel. Lebak Gede, Kec. Coblong

Bandung, West Java

Indonesia

b. Mr. Billy Jan Hidjaja - Rp. 5,790,000,000.-

Address : Jl. Kyai Gede Utama No. 19, RT. 003

RW. 008, Kel. Lebak Gede, Kec. Coblong

Bandung, West Java

Indonesia

c. Ms. Jeanie Novita Hidjaja - Rp. 5,790,000,000.-

Address : Jl. Kyai Gede Utama No. 19, RT. 003

RW. 008, Kel. Lebak Gede, Kec. Coblong

Bandung, West Java

Indonesia

d. Mrs. Magdalena Lauwita - Rp. 2,895,000,000.-

Address : Jl. Kyai Gede Utama No. 19, RT. 003

RW. 008, Kel. Lebak Gede, Kec. Coblong

Bandung, West Java

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Non Woven Fabric, Polyester Spunbond, Needle Punch and Polyester Recycle Staple Fiber Manufacturing

Production Capacity :

a. Non Woven Spun Bond - 2,500 tons p.a.

b. Non Woven Needle Punch - 1,500 tons p.a.

c. Polyester Recycle Staple Fiber - 1,500 tons p.a.

Total Investment :

a. Equity Capital - Rp. 28.9 billion

b. Loan Capital - Rp. 10.0 billion

c. Total Investment - Rp. 38.9 billion

Started Operation :

March 2011

Brand Name :

Hasil Damai Textile (Hadtex)

Technical Assistance :

None

Number of Employee :

115 persons

Marketing Area :

Local - 70%

Export - 30%

Main Customers :

a. Automotive Industries

b. Building Construction

c. Concrete Industries

d. Furniture Industries

e. Geotextile Industries

f. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. P.T. ANUGRAHPRIMA PERDANA

b. P.T. FALMACO INDONESIA

c. P.T. KUFNER TEXTILE INDONESIA

d. P.T. KURALON INDAH SEJAHTERA

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank MANDIRI Tbk

Jalan Asia Afrika No. 92

Bandung, West Java

Indonesia

b. P.T. Bank CENTRAL ASIA Tbk

Jalan Asia Afrika 122-124

Bandung, West Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2011 – Rp. 25.0 billion (March – December)

Net Profit (estimated) :

2011 – Rp. 2.0 billion (March – December)

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Billy Jan Hidjaja

Director - Ms. Jeanie Novita Hidjaja

Board of Commissioners :

Commissioner - Mr. Henry Hidjaja

Signatories :

President Director (Mr. Billy Jan Hidjaja) or the Director (Ms. Jeanie Novita Hidjaja) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability :

Satisfactory

Business Morality :

Satisfactory

Credit Risk :

Average

Credit Recommendation :

Credit should be proceeded with monitor

Proposed Credit Limit :

Small amount – periodical review

Maximum Credit Limit :

US$ 328,900 on 90 days D/A

OVERALL PERFORMANCE

P.T. HASIL DAMAI TEXTILE or abbreviated with trading style HADTEX was established in Bandung, West Java based on notary deed of Mr. Raden Tendy Suwarman, SH., No. 04 dated 2 February 2011 with an authorized capital of Rp. 40,000,000,000 issued capital of Rp. 28,950,000,000 entirely paid up. The founding and shareholders of the company are Mr. Henry Hidjaja, his wife Mrs. Magdalena Lauwita and their son and daughter namely Mr. Billy Jan Hidjaja and Ms. Jeanie Novita Hidjaja, they are Indonesian business family of Chinese descents. Based on our knowledge up to writing the report the notary documents of the company have not undergone any changes. The company notary document was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-15994.AH.01.01.TH.2011 dated March 29, 2011.

We observe that Mr. Henry Hidjaja is also founder and business stakes owner of the HADTEX or PANASIA Group, a big-sized in integrated textile manufacturing in Indonesia.

P.T. HADTEX is a private national company dealing with non woven fabric, spunbond, needle punch and recycle staple fiber manufacturing. P.T. HADTEX originally was a subsidiary of P.T. PANASIA INDOSYNTEC Tbk non woven and regenerated staple fiber division. The plant located at Jalan Cisirung Km. 2, Cangkuang Barat, Dayeuhkolot, Bandung, West Java standing on 10,000 sq. meters land. P.T. HADTEX is well known for its supply’s reliability and have been established strong business relationships with customers in major cities throughout Indonesia, and also worldwide. P.T. HADTEX is manufacturer of non woven fabric, such as spunbond and needle punch. Aside from non woven fabrics, they also producing recycled fiber polyester staple solid in various deniers and cut length. P.T. HADTEX is divided into 3 main divisions namely Spunbond, Needle Punch and Regenerated (Recycle) Staple Fiber. P.T. HADTEX products are Panabond is a product of spunbond manufactured at the company facility. It is made from 100% polyester chips. Spunbond is produced from 15 to 160 gram/m2, available in two colors, white and black. Spunbond can be used in various applications from spring bed, building construction, agriculture, garment, geotextile, furniture, shoes, filtration, cable, automotive, quilting, laminating and coating.

Hadtex produces non woven needle punch products made from polyesters fibers mixture, applicable for spring beds, jackets, coats, liners, blankets, quilting, filtration, etc. Hadtex’s recycled staple fibers are made from various polyester wastes like polyester filament and PET bottles. Generally, they are chopped into smaller pieces or flakes, and then are melted, and extruded to form the fibers in various deniers. Needle Punch is made from various textile materials. Hadtex produce its needle punch into two major types, which are NPC-2mm and NPC – 4mm (thickness), available from 400 to 1200 gram/m2. Needle punch is packed in form of rolls, or sheet, and width size starting from 125 cm, 165 cm, 185 cm, up to 205 cm, length for each roll is 50 meters. Needle punch can be used in various applications from spring bed, furniture, garment, automotive, sound proofing and more.

Regenerated (Recycle) Staple Fiber produced from various polyester materials and PET bottle flakes. Hadtex products is solid type available from 6 Denier up to 15 and 20 Denier with cut length from 25 mm to 110 mm, non siliconized and siliconized, color mainly white and black. Recycle Staple Fiber can be used as raw material to produce felt, carded for toy, pillow filling, Dacron, carpet or floor coverings and polyester fabrics.

Some 70% of the products is marketed locally under Panabond brand to various sanitary napkin, medicines surgical drapes and warps, bag industries, art canvas and tents; packaging industry for carrier bags and combined packaging of non woven; textile industry and shoes for disposable underwear & interlining; rug industry for under lay carpet and bed lining, furniture, curtain; household industry for laundry softener and additives, vacuum cleaner bags, book covers; automotive & vehicle for insulation materials, headliners, interior roof lining; agricultural & horticulture for greenhouse shading, crop and plant protection, packaging material for fruit & vegetables and specific industrial application for filtration, abrasive materials, cable wrapping, electronics (floppy disk liners) reinforcement. Besides, some 30% of the products is export to Europe and Australia. We observe the operation of P.T. HADTEX has been growing and developing well in the last one year.

The country’s garment industry is facing serious marketing problem not only in the country but also abroad. According to the Central Bureau of Statistics (BPS) the Indonesian garments export in 2002 amounted to 333,100 tons (US$ 3,887.2 million) to 339,000 tons (US$ 4,037.9 million) in 2003 to 327.300 tons (US$ 4,351.9 million) in 2004 to 369.500 tons (US$ 4,967.0 million) in 2005 to 399,600 tons (US$ 5,608.1 million) in 2006, to 399,800 tons (US$ 5,712.9 million) in 2007 rose to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393.400 tons (US$ 5,735.6 million) in 2009 and 445,200 tons (US$ 6,598.0 million) in 2010. The Indonesia textile products export in 2002 amounted to 1,425.9 tons (US$ 3,075.9 million) to 1,307.5 tons (US$ 3,064.6 million) in 2003 to 1,300.4 tons (US$ 3,354.6 million) in 2004 to 1,427.3 tons (US$ 3,704.0 million) in 2005 to 1,477.8 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 decrease to 1,312.2 tons (US$ 4,127.9 million) in 2008 rose to 1,369.6 tons (US$ 3,602.8 million) in 2009 and to 1,525.9 tons (US$ 4,721.8 million) in 2010.

The domestic textile producers are pessimism the textile export in 2009 could match the export numbers in 2008. The blow of the global economic crisis is resulted in the reduced of demand from the export destination countries like the United States (U.S.), Japan, and European Union region. The Export Textiles and the Textile Products (TPT) in 2009 is predicted to fall to 10.2 percent compared to the last year. In the year 2008 the export value reached 10.8 billion US dollars. While this year’s the exports expected fall into US$ 9.7 billion. The Chairman of the Indonesian Textile Association (API), Mr. Benny Soetrisno said that the decline in global purchasing power caused of the demand in the Indonesian textile products could not be able to grow as tight as 2008. The export volume and value of the national TPT products in 2002 to 2010 are pictured on the following table.

Year

Garment

Textile Products

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

3,887.2

4,037.9

4,351.9

4,967.0

5,608.1

5,712.9

6,092.2

5,735.6

6,598.0

1,425.9

1,307.5

1,300.4

1,427.3

1,477.8

1,473.6

1,312.2

1,369.6

1,525.9

3,075.9

3,064.6

3,354.6

3,704.0

3,908.6

4,178.0

4,127.9

3,602.8

4,721.8

Source: Central Bureau of Statistic

Until this time P.T. HADTEX has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. HADTEX is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in the first year operation as from March to December 2011 amounted at Rp. 25.0 billion and projected to go on rising by at least 6% in 2012. The operation in 2011 yielded an estimated net profit of at least Rp. 2.0 billion and the company has an estimated total net worth of at least Rp. 30.0 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. HADTEX is led by Mr. Billy Jan Hidjaja (28) a young businessman and professional manager with experience in non woven fabric, spunbond, needle punch and recycle staple fiber manufacturing. Daily activity he is assisted by his oldest sister namely Ms. Jeanie Novita Hidjaja (34) as Director. But we are sure the prime mover of the company is their father Mr. Henry Hidjaja (58) as Commissioner. 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. HASIL DAMAI TEXTILE or HADTEX is sufficiently fairly good for business transaction.

List of the HADTEX Group or the PANASIA Group Members

1. ANGGREK PURWAKARTA INDUSTRIAL ESTATE, P.T. (Industrial Estate Management)

2. BINTANG MAS JAYA (Trading)

3. BUDIMAN SEJAHTERA DEVELOPMENT, P.T. (Office Building Department)

4. CENTURY LIFINDO PERDANA, P.T. Asuransi Jiwa (Life Insurance)

5. DJASA ARTA, P.T. Bank (Banking)

6. FATATEX, P.D. (Textile Distribution)

7. FIBERINDO INTI PRIMA, P.T. (Textile Industry)

8. HARAPAN KITA, P.T. (Trading)

9. HASIL DAMAI TEXTILE, P.T. (Non Woven Fabric, Spunbond, Needle Punch and Recycle Staple Fiber Manufacturing)

10. HIDUP DJAYA TJEMERLANG MOTOR, P.T. (Car Distribution)

11. KOTAMAS JAYA (Trading)

12. KUNINGAN GRAHA SAMATAS, P.T. (Real Estate Development)

13. NOVAWOOL, P.T. (Spinning Mills)

14. PANASIA CENTRAL INDONESIA, P.T. (Integrated Textile Industry)

15. PANASIA CENTRAL PRIMATEX, P.T. (Integrated Textile Industry)

16. PANASIA FILAMENT INTI, P.T. (Textile Industry)

17. PANASIA INDOSYNTEC Tbk., P.T. (Integrated Textile Industry)

18. PANASIA INTERFI, P.T. (Textile Industry and Investment Holding)

19. PANASIA SURYA TIMUR, P.T. (Textile Industry)

20. PANASIA FIBERINDO, P.T. (Polyester Product Manufacturing)

21. PANASIA SYNTHETIC ABADI, P.T. (Investment Holding and Integrated Textile Industry)

22. PANASIA GOLDEN PRIMATEX, P.T. (Integrated Textile Industry)

23. POLYPRIMA KARYAREKSA, P.T. (Purified Terephthalic Acid (PTA) Processing)

24. RATNA SUTERA ALAM MILLS or RATNATEX, P.T. (Textile Mills)

25. SINAR PANTJA DJAJA, P.T. (Integrated Textile Industry)

26. TEHNIKA INDOKREASI, P.T. (Consulting, Engineering and General Contracting)

27. TRI AS, U.D. (Trading)

28. TRI HIKMAH, C.V. (Trading)

29. TRISTAR, U.D. (Trading)

30. TRITAMA TEXINDORAYA, P.T. (Integrated Textile Industry)

31. Etc.

* * *

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.75
UK Pound	1	Rs.80.01
Euro	1	Rs.65.99

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.