MIRA INFORM REPORT

Report Date :

22.08.2013

IDENTIFICATION DETAILS

Name :	P.T. PRISEL GIUGA SINERGI
Registered Office :	Perum Griya Nusantara, Jalan Transyogi No. A. 05, Nagrag, Gunung Putri, Bogor, 16967, West Java
Country :	Indonesia
Date of Incorporation :	02.12.2010
Com. Reg. No.:	No. AHU-59636.AH.01.01.TH.2010
Legal Form :	Limited Liability Company
Line of Business :	trader, importer and distributor of food additives such as sugar boiled confectionery, soft drink, cattle food, meat, seafood, dairy products & bakery.
No. of Employees :	07

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 – March 31^st 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 more than 6% annually in 2010-12. 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 fiscal deficit below 3%, 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 2013 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 high oil prices.

Source : CIA

Name of Company

P.T. PRISEL GIUGA SINERGI

Company Address

Head Office

Perum Griya Nusantara

Jalan Transyogi No. A. 05

Nagrag, Gunung Putri

Bogor, 16967

West Java

Indonesia

Phone - (62-21) 8248 2224

Fax - (62-21) 82482207

Building Area - 1 storey

Office Space - 100 sq. meters

Region - Housing Complex

Status - Rent

Date of Incorporation

2 December 2010

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

No. AHU-59636.AH.01.01.TH.2010

Dated 22 December 2010

Company Status

Private National Company

Permit by the Government Department

The Department of Finance

Not Available

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 450,000,000.-

Issued Capital : Rp. 450,000,000.-

Paid up Capital : Rp. 450,000,000.-

Shareholders/Owners :

a. Mr. Khoe Shin Hwa - Rp. 405,000,000.-

Address : Kampung Menceng, RT. 005 RW. 006

Kelurahan Tegal Alur, Kecamatan Kalideres

Jakarta Barat

Indonesia

b. Mrs. Khoe Suen Hoa - Rp. 45,000,000.-

Address : Kampung Menceng, RT. 005 RW. 006

Kelurahan Tegal Alur, Kecamatan Kalideres

Jakarta Barat

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Trading and Distribution of Food Additives

Production Capacity :

None

Total Investment :

None

Started Operation :

2011

Brand Name :

Prisel Giuga Sinergi

Technical Assistance :

None

Number of Employee :

7 persons

Marketing Area :

Local - 100%

Main Customer :

Food and Beverages Processing

Market Situation :

Very Competitive

Main Competitors :

a. P.T. ABADIKIMIA INTERNUSA

b. P.T. BRATACO

c. P.T. CHEMIFIN JAYA UTAMA

d. P.T. ROHA LAUTAN PEWARNA

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank CENTRAL ASIA Tbk

Jalan Raya Transyogi Km. 3

Perumahan Kota Wisata

Cibubur, Bogor

West Java

Indonesia

b. P.T. Bank MANDIRI Tbk

Kota Wisata Ruko Sentra Eropa Block A No. 6

Perumahan Kota Wisata

Jalan Tranyogi Km. 6

Cibubur, Bogor

West Java, Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2011 – Rp. 5.0 billion

2012 – Rp. 6.2 billion

Net Profit (estimated) :

2011 – Rp. 300 million

2012 – Rp. 372 million

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Khoe Shin Hwa

Board of Commissioners :

Commissioner - Mrs. Khoe Suen Hoa

Signatories :

Director (Mr. Khoe Shin Hwa) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability :

Satisfactory

Business Morality :

Satisfactory

OVERALL PERFORMANCE

P.T. PRISEL GIUGA SINERGI (P.T. PGS) was incorporated in Cibubur, Gunung Putri, Bogor, West Java based on notary deed of Mrs. Viva Prihatina, SH., No. 01 dated 2 December 2010 with the authorized capital of Rp. 450,000,000 wholly issued and paid up. The founding shareholders of the company are Mr. Khoe Shin Hwa (90%) and his wife Mrs. Khoe Suen Hoa (10%), both are Indonesian business family of Chinese descent. Based on our knowledge up to writing the report the notary documents of the company have not undergone any changes. The company notary deed was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-59636.AH.01.01.TH.2010 dated December 22, 2010.

P.T. PGS is a private national company operating since 2011 engaged in the field of trading, import and distribution of food additives. P.T. PGS sells all type of pigment for foods, sugar boiled confectionery, soft drink, cattle food, meat, seafood, dairy products & bakery. The types of food additive are flavor, essence, food colours and others. Food Additive is a substance / mixture of ingredients that are naturally not part of the raw materials of food, but added to food to affect the nature or form of food, such as dyes, preservatives, flavors, anti-clot, and thickeners.

Food additive is a material that is not consumed directly as food and not a food raw material, and the addition to the food is intended to alter the properties of foods such as shape, texture, color, flavor, aroma, to preserve or to facilitate processing. Mr. Andree, accounting staff of the company said, after operating since 2011, the company has imported food additive wholly from India. Then the whole products supplied to various snack food processing, bakery and bread processing, and others food industries in Gunung Putri, Bogor, and West Java. P.T. PGS is still classifiable as a small-size company in the above business in Indonesia and its business operation has evidently been running smoothly in the last one year.

We note that generally the demand for food chemicals was rising by some 10% - 12% per year in the last five years in line with the growth of food processing industries as the consumers. But since the end of 2008 the demand has been falling under the impact of the global economic crisis in the worldwide. The crisis has badly hurt various industrial sectors, particularly those relying on imports for their basic materials or feedstock. Moreover, the intake capacity of chemical consuming industries has been shrinking due to many food-processing companies having cut down production. On the other hand, the food chemical business is highly competitive on account of the many companies with similar activities and selling comparable imported products in the country. We find the demand for food chemical will be increasing in the next two years as a result of the improving economic condition in Indonesia. P.T. PGS is appraised to still have quite good business prospects once the economy starts recovering.

Until this time P.T. PGS has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. PGS 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 2011 amounted to Rp. 5.0 billion increased to Rp. 6.2 billion and projected to go on rising by at least 5% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 372 million and the company has an estimated total networth 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. PGS is led by Mr. Khoe Shin Hwa (48) a businessman and professional manager with experience in trading, import and distribution of food additives. 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. PRISEL GIUGA SINERGI is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.46
UK Pound	1	Rs.99.42
Euro	1	Rs.85.12

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.