MIRA INFORM REPORT

Report Date :

23.10.2013

IDENTIFICATION DETAILS

Name :	P.T. LEUWIJAYA UTAMA TEXTILE

Registered Office :	Jalan Cibaligo Km. 1.75 Leuwigajah – Cimahi Bandung, West Java

Country :	Indonesia

Date of Incorporation :	23.12.1987

Com. Reg. No.:	No. AHU-AH.01.10-12905

Legal Form :	Limited Liability Company

Line of Business :	Integrated Textile Industry

No. of Employees :	760 persons

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 – March, 31^st,2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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

BASIC SEARCH

Name of company :

P.T. LEUWIJAYA UTAMA TEXTILE

Address :

Head Office & Factory

Jalan Cibaligo Km. 1.75

Leuwigajah - Cimahi

Bandung, West Java\

Indonesia

Phones - (62-22) 6032710, 6077883

Fax. - (62-22) 6044348

Email - starlet@leuwitex.co.id

Website - http://www.leuwitex.co.id

Land Area - 2.2 hectares

Office Space - 1.5 hectares

Region - Industrial Zone

Status - Owned

Date of Incorporation :

23 December 1987

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C2-7589.HT.01.01.TH.89

Dated 16 August 1989

b. No. C2-2780.HT.01.04.TH.98

Dated 30 March 1998

c No. AHU-59391.02.Tahun 2008

Dated 05 September 2008

d. No. AHU-AH.01.10-12905

Dated 13 August 2009

Company Status :

Domestic Investment Company (PMDN)

Permit by the Government Department :

a. The Department of Finance

NPWP No. 01.448.131.1-421.000

b. The Capital Investment Coordinating Board

- No. 101/I/PMDN/1988

Dated 22 February 1988

- No. 43/II/PMDN/1994

Dated 14 February 1994

- No. 153/II/PMDN/1996

Dated 10 July 1996

Related/Affiliated Company :

C.V. KENCANA HEGAR (Integrated Textile Industry)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 70,000,000,000.-

Issued Capital - Rp. 62,100,000,000.-

Paid up Capital - Rp. 62,100,000,000.-

Shareholders/Owners :

a. Mr. Yogi Tanu - Rp. 62,099,000,000.-

Address : Jl. Surapati No. 25

Bandung, West Java

Indonesia

b. Mr. Lucky Tanu - Rp. 1,000,000.-

Address : Jl. Surapati No. 25

Bandung, West Java

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Integrated Textile Industry

Production Capacity :

a. Grey Fabrics - 38.0 million meters p.a.

b. Finished Fabrics - 32.0 million meters p.a.

Total Investment :

a. Equity Capital - Rp. 62.1 billion

b. Loan Capital - Rp. 60.4 billion

c. Total Investment - Rp. 122.5 billion

Started Operation :

1990

Brand Name :

LEUWITEX

Technical Assistance :

None

Number of Employee :

760 persons

Marketing Area :

Domestic (Local) - 40%

Export - 60%

Main Customers :

a. Textile Wholesalers and Distributor

b. Overseas buyer in China, United Kingdom, Singapore, Japan, Malaysia, Hong Kong, United Arab Emirate, Saudi Arabia and others.

Market Situation :

Very Competitive

Main Competitors :

a. PT. Apac Inti Corpora

b. PT. Argo Pantes Tbk.

c. PT. Ungaran Sari Garment

d. PT. Panasia Indosyntex Tbk.

e. PT. Candratex Sejati

f. PT. Sinar Padasuka Textile (Sipatex)

g. PT. Bintang Adi Busana

h. PT. Metro Garment

i. Etc.

Business Trend :

Fluctuating

BANKER, AUDITOR & LITIGATION

B a n k e r s :

P.T. Bank CIMB NIAGA Tbk

Bandung Branch

Jl. Lembong No. 7

Bandung, West Java

P.T. Bank NEGARA INDONESIA Tbk

Bandung Branch

Jalan Asia Afrika No. 119

Bandung West Java

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2009 – Rp. 328.0 billion

2010 – Rp. 370.0 billion

2011 – Rp. 426.0 billion

2012 – Rp. 410.0 billion

2013 – Rp. 215.0 billion (January – June)

Net Profit (Loss) :

2009 – Rp. 17.5 billion

2010 – Rp. 20.0 billion

2011 – Rp. 22.8 billion

2012 – Rp. 21.0 billion

2013 – Rp. 12.3 billion (January – June)

Payment Manner :

Almost Promptly

Financial Comments :

Fairly good

KEY EXECUTIVES

Board of Management :

Director - Mr. Yogi Tanu

Board of Commissioner :

Commissioner - Mrs. Maria Elena Tanu

Signatories :

Director (Mr. Yogi Tanu) which must be approved by the Board of Commissioner (Mrs. Maria Elena Tanu)

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

Credit Risk :

Below Average

Credit Recommendation :

Credit can be proceeded normally

Proposed Credit Limit :

Moderate amount

OVERALL PERFORMANCE

P.T. LEUWIJAYA UTAMA TEXTILE (P.T. LEUWITEX), domiciled in Bandung, West Java, was established on 23 December 1987 with the authorized capital of Rp 625,000,000,- entirely was issued and fully paid up. The founding shareholders of the company are Mr. Yogi Tanu AKA Tan Boe Gie and his older brother Mr. Oey Khie Tjieng. They are Indonesian businessmen of Chinese extraction. This Deed of Establishment had obtained the approval of the Minister of Justice of Republic of Indonesia with number; C2-7589.HT.01.01.TH.89 dated 16 August 1989. The articles of association of the company have frequently been changed. In May 1996, Mr. Oey Khie Tjieng pulled out and the whole shares are sold to Mr. Yogi Tanu. Concurrently, the authorized capita was raised to Rp 2,500,000,000.- entirely was issued and fully paid up. In August 2000, the authorized capital was raised again to Rp 7,500,000,000.- entirely was issued and fully paid up. Since at the time, the shareholders of the company are Mr. Yogi Tanu (99.99%) and his son Mr. Lucky Tanu (0.01%). Latest, on 21 July 2009 the authorized capital was raised again to Rp 70,000,000,000.- of which Rp 62,100,000,000.- was issued and fully paid up. This Deed of amendment had obtained the approval of the Minister of Law and Human Rights of Republic of Indonesia with number; AHU-AH. 01.10-12905 dated 13 August 2009.

P.T. LEUWITEX obtained a domestic investment company (PMDM) facility issued by Investment Coordinating Board (BKPM) in 1988 for dealing with textile industry with its plant located at Jl. Cibaligo Km. 1.75, Leuwigajah, Cimindi, Cimahi, Bandung, West Java where it stands on a 2.2 hectares landsite. The plant has been in operation since February 1989 with an installed production capacity of 26.0 million meters of grey fabrics and 22.0 million meters of finished fabrics per year. The annual production capacity of the plant has frequently been expanded. Today, the plant has annual production capacity of 38 million meters of grey fabrics and 32.000 million of finished fabrics with total investment as shown on page-3 of this report. Some 60% of the products were exported to China, United Kingdom, Singapore, Japan, Malaysia, Hong Kong, United Arab Emirate, Saudi Arabia and others, and the rest is marketed locally to garment industries, textile wholesalers and distributors. We observed that P.T. LEUWITEX is classified as a medium-sized company of its kind in the country of which the operation has been fluctuating in the last five years.

Generally, demand for textile and textile product including cotton yarn, polyester textured yarn, finished fabrics, garment, textile chemicals and raw materials has been fluctuating in the last five years. According to the Central Bureau of Statistics (BPS) the Indonesian 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 1,477.800 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 declined to 1,312,200 tons (US$ 4,127.9 million) in 2008 to 1,369,600 tons (US$ 3,602.8 million) in 2009 to 1,525,900 tons (US$ 4,721.8 million) in 2010 declined to 1,493,3000 tons (US$ 5,563.3 million) in 2011 and rose again to 1,508,500 tons (US$ 5,278.1 million) in 2012. The export volume and value of the national TPT products and garment in 2002 to 2012 are pictured on the following table.

Year

Textile Products

Garment

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

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

1,508.5

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

5,278.1

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

450.2

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

7,801.5

7,304.8

Source: Central Bureau of Statistic

Until this time P.T. LEUWITEX has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. Therefore, the company has no obligation to publish financial statement publicly. P.T. LEUWITEX’s management is very reclusive to outsider and rejecting to disclose its financial condition. We observed that total sales turnover of the company in 2010 is Rp. 370.0 billion increased to Rp. 426.0 billion in 2011 and dropped to Rp. 410.0 billion in 2012. The operation in 2012 yielded an estimated net profit at least Rp. 21.0 billion and the company has an estimated total networth at Rp. 160.0 billion. It is forecasted that total sales turnover of the company will increase at least 4% in 2013. So far, we have never heard of the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.

The Company’s management is headed by Mr. Yogi Tanu AKA Tan Boe Gie (60) as Director na CEO of the Company, with more than 30 years experience in trading and industry of textile products. In his daily activities, he is assisted by his wife Mrs. Maria Elena Tanu (57) as Commissioner. The management handled by professional managers having wire relation with overseas and national private businessmen as well as with the government sectors. As far as business is concerned the management of P.T. NC has never involved in any fraudulent dealings being settled in the court.

P.T. LEUWITEX is appraised to be good for business transaction. However, in view of the economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.78
UK Pound	1	Rs.99.66
Euro	1	Rs.84.49

INFORMATION DETAILS

Report Prepared by :

SDA

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.