MIRA INFORM REPORT

Report Date :

06.11.2013

IDENTIFICATION DETAILS

Name :	PETRA MARMER
Registered Office :	Jl. KH Hasyim Ashari No. 82 Cipondoh, Tangerang Banten Province
Country :	Indonesia
Financials (as on) :	2013
Date of Incorporation :	2000
Legal Form :	Sole Proprietary Company
Line of Business :	Trader, Supplier and Distribution of Marble and Granite Tiles
No. of Employees :	30

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

PETRA MARMER

A d d r e s s :

Head Office

Jl. KH Hasyim Ashari No. 82

Cipondoh, Tangerang

Banten Province

Indonesia

Phones - (62-21) 554 5644, 3386 8866

Fax - (62-21) 554 5644

Email - petramarmer@gmai.com

Building Area - 2 storey

Office Space - 160 sq. meters

Region - Commercial

Status - Owned

Branch & Warehouse

Pergudangan Nila Alam No.7-A

Jl. Raya Waru No. 1-A

Surabaya, East Java

Indonesia

Phones - (62-31) 853 3275

Fax - (62-31) 853 3276

Email - autindo@cbn.net.id

Land Area - 1,800 sq. meters

Building Space - 620 sq. meters

Region - Commercial

Status - Owned

Date of Incorporation :

2000’s

Legal Form :

Sole Proprietary Company

Company Reg. No. :

The Ministry of Law and Human Rights

Not Available

Company Status :

Private Company

Permit by the Government Department :

The Department of Finance

Not Available

Related Company :

Not available

CAPITAL AND OWNERSHIP

Capital Structure :

Owned Capital - Rp. 1.5 billion

Owner :

Mr. Nielsin Alfin - 100%

BUSINESS ACTIVITIES

Lines of Business :

Trader, Supplier and Distribution of Marble and Granite Tiles

Production Capacity :

None

Total Investment :

None

Started Operation :

2000

Brand Name :

PETRA MARMER

Technical Assistance :

None

Number of Employee :

30 persons

Marketing Area :

Domestic (Local) - 100%

Main Customers :

Individuals and Corporate in Jakarta and its surrounding

Market Situation :

Very Competitive

Main Competitors :

a. PT. Bandung Marmer Sejati Aam

b. PT. Gramer Industri marmer

c. PT. Hamparan Anekagranit

d. PT. Citatah Tbk., and others

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

a. Komplek pertokoan Modernland Blok DR No.2-3

Jl. Bypass - Cipondoh

Tangerang, Banten

Indonesia

b. Sidoarjo Branch

Jl. Kauman No. 25

Krian, Sidoarjo, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2010 – Rp. 40.5 billion

2011 – Rp. 46.0 billion

2012 – Rp. 52.0 billion

2013 – Rp. 28.5 billion (January – June)

Net Profit (estimated) :

2010 – Rp. 2.5 billion

2011 – Rp. 2.8 billion

2012 – Rp. 3.2 billion

2013 – Rp. 1.7 million (January – June)

Payment Manner :

Almost Promptly

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Nielsin Alfin AKA Nielsin

Board of Commissioners :

None

Signatories :

Director (Mr. Nielsin Alfin AKA Nielsin) is the only person who is authorized to sign the loan on behalf of the company

CAPABILITIES

Management Capability :

Fairly

Business Morality :

Fairly

Credit Risk :

Above average

Credit Recommendation :

Credit should be extended under guarantee

Proposed Credit Limit :

C.O.D. To small amount

OVERALL PERFORMANCE

PETRA MARMER was established in Tangerang, Banten province in 2000 with the legal status of sole proprietary company. The founder and owner of the company is Mr. Nielsin Alfin, an Indonesian businessman of Chinese extraction. As other companies with the legal status of sole proprietary, the amount of its authorized capital was not mentioned at the time of its establishment. In our estimate, at present the company has own capital of about Rp. 2.0 billion and it will be rising in line with the progress of its business operation. So far, we did not hear that the founders and owners of PETRA MARMER have other businesses within and outside the country.

PETRA MARMER is a sole proprietary which has been operating since 2000 in the field of trade, distributor and importer of marble and granite tiles. This company is located at Jl. K.H. Hasyim Ashari No. 82, Cipondoh, Tangerang, Banten province. Ms. Indah Wardani, marketing manager of PETRA MARMER when contacted recently said that the products (marble and granite tiles) are imported from China, India and Italy. Beside, the Company also sells local products from Tulungagung (East Java) and Makassar (South Sulawesi).

She added that the Company sells marble and granite tiles to local markets, among others hotels, office buildings, apartments, real estate, housing complex and others located in Jakarta, Tangerang and Surabaya, East Java. PETRA MARMER is classified as a medium sized company of its kind in the country of which the operation has been growing in the last three years.

Generally, the demand for marble tiles, ceramic tiles and granite tiles in the country had significantly rising by 8% to 10% per year in the last five years, in line with the growth of office building, hotels, apartment, real estate, housing and other properties. But, as from October 2008, the demand growth for marble tiles, granite tiles and ceramic tiles has kept on dwindling as an impact of global economic crisis as told above that making many property projects were discontinued and lower 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 PETRA MARMER is favorable for it has controlled a wide marketing network at Jakarta, Tangerang and Surabaya.

Until this time PETRA MARMER has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. PETRA MARMER’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover of the company in 2010 amounted to Rp. 40.5 billion increased to Rp. 46.0 billion in 2011 and rose again to Rp. 52.0 billion in 2012. The operation in 2012 yielded an estimated net profit of Rp. 3.2 billion and it is estimated the company has an estimated total assets at least Rp. 12.0 trillion. It is projected that total sales turnover of the company will increase at least 8% in 2013. So far, we did not hear 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 PETRA MARMER is led by Mr. Nielsin Alfin AKA Nielsin (46) a businessman with 15 years of experience in trading and distribution of building materials including marble and granite tiles. Daily operation, he is assisted by his business partner Ms. Indah Wardani (35) as Marketing Manager. The management is quite creative and dynamic, having maintained a wide business relation with private businessmen at home and abroad and with the government sectors as well. We observed that management’s reputation in said business is fairly good. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

PETRA MARMER is sufficiently fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.79
UK Pound	1	Rs.98.66
Euro	1	Rs.83.42

INFORMATION DETAILS

Report Prepared by :

NIS

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.