MIRA INFORM REPORT

Report Date :

19.11.2012

IDENTIFICATION DETAILS

Name :	P.T. GEMILANG SUKSES GARMINDO

Registered Office :	Jalan Pluit Selatan Raya, Ruko CBD Pluit Garden House Block B No. 8-J, Jakarta Utara, 14440

Country :	Indonesia

Date of Incorporation :	17.06.1997

Com. Reg. No.:	No. AHU-21134.AH.01.02.TH.2010

Legal Form :	Limited Liability Company

Line of Business :	Trading, Distribution and Retail Fashion Men’s Formal Wears

No. of Employees :	280 employees

RATING & COMMENTS

MIRA’s Rating :

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

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. GEMILANG SUKSES GARMINDO

company Address

Head Office

Jalan Pluit Selatan Raya

Ruko CBD Pluit Garden House Block B No. 8-J

Jakarta Utara, 14440

Indonesia

Phones - (62-21) 6667 2952 (Hunting)

Fax - (62-21) 6667 2950

E-mail - jackerton_4men@yahoo.com

Building Area - 3 storey

Office Space - 230 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation

17 June 1997

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

- No. C2-11712.HT.01.01.TH.98

Dated 20 August 1998

- No. AHU-21134.AH.01.02.TH.2010

Dated 26 April 2010

Company Status

Private National Company

Permit by the Government Department

The Department of Finance

NPWP No. 01.799.927.7-033.000

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 100,000,000.-

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

Paid up Capital : Rp. 40,000,000.-

Shareholders/Owners :

a. Mr. Liaw Edi Wirawan - Rp. 39,000,000.-

Address : Apartment CBD Garden House Block B No. 8J

RT. 022, RW. 008, Kelurahan Penjaringan

Kecamatan Penjaringan, Jakarta Utara

Indonesia

b. Ms. Liaw Nany - Rp. 500,000.-

Address : Muara Karang Block T4, U/43, RT. 009 RW. 003

Kelurahan Pluit, Kecamatan Penjaringan

Jakarta Utara

Indonesia

c. Mr. Drs. Soemito Mito Sima - Rp. 500,000.-

Address : Jl. Kali Baru, RT. 008 RW. 014

Kelurahan Kali Baru, Kecamatan Cilincing

Jakarta Utara

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Trading, Distribution and Retail Fashion Men’s Formal Wears

Production Capacity :

Jackerton Fashion - 40 outlets

Total Investment :

Owned Capital - Rp. 1.0 billion

Started Operation :

August 1997

Brand Name :

Gemilang Sukses Garmindo

Technical Assistance :

None

Number of Employee :

280 persons

Marketing Area :

Local - 100%

Main Customer :

End Users (Individuals)

Market Situation :

Very Competitive

Main Competitors :

a. P.T. BUSANA CAHAYA SENTOSA

b. P.T. KRISTANUSA GARMINDOTAMA

c. P.T. PESONA CIPTA KARYA

d. P.T. PRIMAVERA INDONESIA

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

P.T. Bank CENTRAL ASIA Tbk

Apartment CBD Pluit Block B No. 9 & 10

Jalan Pluit Selatan Raya

Jakarta Utara

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2009 – Rp. 11.5 billion

2010 – Rp. 12.3 billion

2011 – Rp. 13.6 billion

2012 – Rp. 7.8 billion (January – June)

Net Profit (estimated) :

2009 – Rp. 0.9 billion

2010 – Rp. 1.1 billion

2011 – Rp. 1.3 billion

2012 – Rp. 0.7 billion (January – June)

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Liaw Edi Wirawan

Director - Ms. Liaw Nany

General Manager - Mr. Gunawan S. Tejokusumo

Board of Commissioners :

Commissioner - Mr. Drs. Soemito Mito Sima

Signatories :

President Director (Mr. Liaw Edi Wirawan) or the Director (Ms. Liaw Nany) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

OVERALL PERFORMANCE

P.T. GEMILANG SUKSES GARMINDO (P.T. GSG) was established in Jakarta on 17 June 1997 with the authorized capital of Rp. 100,000,000 issued capital of Rp. 40,000,000 fully and paid up. The founding shareholders of the company originally were Mr. Haryanto and Mr. Liaw Edi Wirawan, both are Indonesian businessmen of Chinese descents. The company notary deed had been changed a couple of times. Later in May 2006, Mr. Haryanto pulled out and the whole share sold to Ms. Liaw Nany and Mr. Drs. Soemito Mito Sima as new shareholders. Then according to the latest revision of notary documents of Mrs. Merry Eddy, SH., No. 31 dated 22 February 2010 the latest composition of its shareholders has been changed to become Mr. Liaw Edi Wirawan (97.5%), Ms. Liaw Nany (1.25%) and Mr. Drs. Soemito Mito Sima (1.25%). On the same occasion the company’s board of director and the board of commissioner had been changed to lead and run of the company’s operation. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-21134.AH.01.02.TH.2010 dated April 26, 2010.

P.T. GSG is a private national company started to be operating since 1997 to deal with trading, distribution and retail fashion men’s formal wears. P.T. GSG produces and sell men’s formal wears including trousers, suits, pants, shirts, daily working uniform and vest by using JACKERTON brand. The company serves any request of making uniforms in all size, all models, and all types of fabrics. To produces trousers done outsourcing to another garment factory. As for marketing through several counters are Pasaraya Block M and Sarinah Dept. Store and in 1998, the products has entered Jackerton in Sogo Dept. Store. Later in 2002, its operations and its sales declined and since then P.T. GSG closing some outlets counters were judged to be productive. As a result of the 40 outlets counter that had developed in 2002 decreased to 25 outlets. Jackerton outlets spread in Medan, jaakrta, Semarang, Surabaya and the operation began to grow and today they operate about 40 outlets throughout Indonesia with 10 showrooms. P.T. GSG producing average about 1,200 pieces of shirts, suits 1,200 pieces, jackets 1,000 pieces and 2,000 pieces of uniforms per months. All Jackerton products are manufactured by the garment manufacturing in Jakarta. We observe the operation of P.T. GSG has been growing and developing well in the last three years.

Generally, the demand for textile and garment has been fluctuating within the last five years in line with the fluctuating of Indonesian textile industry in general. 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 rose to 450.9 ton (7,801.5 million) in 2011. 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 decreased to 1,493.3 tons (5,563.3 million) in 2011.

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. 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 2011 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

2011

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

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

7,801.5

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

1,493.3

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

5,563.3

Source: Central Bureau of Statistic

Until this time P.T. GSG has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. GSG 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. 11.5 billion rose to Rp. 12.3 billion in 2010 increased to Rp. 13.6 billion in 2011. As from January to June 2012 the sales turnover has reached at least Rp. 7.8 billion with a net profit of Rp. 0.7 billion and projected to go on rising by at least 5% in 2013. The company has an estimated total networth of at least Rp. 2.5 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. GSG is led by Mr. Liaw Edi Wirawan (43) a businessman and professional manager with experience in trading, distribution and retail fashion men’s wear. He graduate from Tarumanegara University, majoring in accounting. Daily activity he is assisted by Ms. Liaw Nany (38) as Director. 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. GEMILANG SUKSES GARMINDO is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.99
UK Pound	1	Rs.87.21
Euro	1	Rs.70.22

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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