MIRA INFORM REPORT

Report Date :

23.09.2013

IDENTIFICATION DETAILS

Name :	P.T. FONKO INTERNATIONAL PHARMACEUTICALS
Registered Office :	Dexa Development Centre, Kawasan Industri Jababeka II, Jalan Industri Selatan VII Block PP 7, Cikarang Selatan, Cikarang, Bekasi, 17550, West Java
Country :	Indonesia
Date of Incorporation :	20.01.2011
Com. Reg. No.:	No. AHU-08925.AH.01.01.TH.2011
Legal Form :	Limited Liability Company
Line of Business :	Manufacturing of Pharmaceutical
No. of Employees :	155

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Yet to commence operation
Payment Behaviour :	Unknown
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

BASIC SEARCH

Name of Company :

P.T. FONKO INTERNATIONAL PHARMACEUTICALS

A d d r e s s :

Head Office & Factory

Dexa Development Centre

Kawasan Industri Jababeka II

Jalan Industri Selatan VII Block PP 7

Cikarang Selatan, Cikarang

Bekasi, 17550

West Java

Indonesia

Phones - (62-21) 295 66 000 (Hunting)

Fax - (62-21) 295 66 001

Land Area - 10,000 sq. meters

Building Space - 7,000 sq. meters

Region - Industrial Estate

Status - Owned

Date of Incorporation :

20 January 2011

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-08925.AH.01.01.TH.2011

Dated 22 February 2011

Company Status :

Foreign Investment (PMA) Company

Permit by the Government Department :

The Department of Finance

Not Available

The Capital Investment Coordinating Board

No. 02677/1/PMA/2010

Dated 2 December 2010

Related Company :

A Member Company of the DEXA Group (see attachment)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 30,000,000,000.-

Issued Capital : Rp. 30,000,000,000.-

Paid up Capital : Rp. 30,000,000,000.-

Shareholders/Owners :

a. P.T. WAHANA INTI PRIMA - Rp. 24,000,000.-

Address : Titan Center Ground Floor

Jl. Boulevard Bintaro Block B7/B1 No. 05

Bintaro Jaya Sector 7

Kelurahan Pondok Jaya, Kecamatan Pondok

Aren, Tangerang, Banten Province

Indonesia

b. BENDALIS GmbH - Rp. 6,000,000.-

Address : Keltenring 17, 82041 Oberhaching

Landkreis Muenchen

Germany

BUSINESS ACTIVITIES

Lines of Business :

Pharmaceutical Manufacturing

Production Capacity :

b. Capsules - 10,000,000 pieces p.a.

c. Tablet - 100,000,000 pieces p.a.

Total Investment :

a. Equity Capital - Rp. 30.0 billion

b. Loan Capital - Rp. 30.0 billion

c. Total Investment - Rp. 60.0 billion

Started Operation :

2014 (Planned)

Brand Name :

Fonko International Pharmaceutical

Technical Assistance :

Bendalis GmbH., Germany

Number of Employee :

155 persons

Marketing Area :

Local - 100%

Main Customer :

Distributors, Hospitals

Market Situation :

Very Competitive

Main Competitors :

a. P.T. KALBE FARMA Tbk

b. P.T. KIMIA FARMA Tbk

c. P.T. PHAPROS Tbk

d. P.T. SANBE FARMA

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r s :

a. Deutsche Bank AG

Wisma Deutsche Bank

Jalan Imam Bonjol No. 61

Jakarta Pusat

Indonesia

b. P.T. Bank MANDIRI Tbk

Plaza Mandiri

Jalan Jend. Gatot Subroto Kav. 36-38

Jakarta Selatan

Indonesia

c. P.T. Bank CENTRAL ASIA Tbk.

Wisma BCA

Jalan Jend. Sudirman Kav. 22-23

Jakarta Pusat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

None

Net Profit (estimated) :

None

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Drs. Djoko Sujono, Apt, MBA

Board of Commissioners :

President Commissioner - Mrs. Gracianti Soetikno

Commissioners - DR. Lothar Franz Boening

Signatories :

Director (Mr. Drs. Djoko Sujono) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability :

Satisfactory

Business Morality :

Satisfactory

Credit Risk :

High

Credit Recommendation :

Credit is not recommended

Proposed Credit Limit :

C.O.D.

OVERALL PERFORMANCE

P.T. FONKO INTERNATIONAL PHARMACEUTICALS (P.T. FIP) was established in Bekasi, West Java based on notary deed of Mr. Mrs. Winati Lukman Widjaja, SH., No. 05 dated 20 January 2011 with the authorized capital of Rp. 30,000,000,000 wholly issued and paid up. The founding and shareholders of the company are P.T. WAHANA INTI PRIMA (80%) as local partner and BENDALIS GmbH of Germany (20%) as foreign partners. The notary deed of incorporation was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-08925.AH.01.01.TH.2011 dated February 22, 2011.

We see that local partner P.T. WAHANA INTI PRIMA is a member company of the DEXA MEDICA Group, a medium sized company in pharmaceutical industry led by Mr. Drs. Rudy Soetikno.

P.T. FIP operates under Foreign Investment (PMA) facilities to deal with pharmaceutical manufacturing. The plant is located at Kawasan Industri Jababeka II, Jalan Industri Selatan VII Block PP No. 7, Cikarang, Bekasi, West Java standing on a land of 10,000 sq. meters. The plant will be produces of cancer medicine and will be commenced production in 2014. According information the plant has been begun construction since early 2012, while the installation of machinery and laboratory equipment under still finished. The construction of the plant has absorbed an investment of Rp. 60.0 billion come from own capital of Rp. 30.0 billion while the rest is loans. To produces of the cancer medicine, the company has been awarded technical assistance from Bendalis GmbH of Germany. According information most of pharmaceutical raw materials will imported from Germany and other Europe union. The whole products will be marketed locally through distributors and also supplied to various private hospitals, state hospital, drugstore and others. We observe that P.T. FIP is a new company having yet to be in operation commercially.

We refrain from informing the business prospect of the company for having yet to be in operation up to now. Considering P.T. FIP having yet to be in operation, the financial condition of the company is just as it’s paid up capital of Rp. 30.0 billion as stated in its article of association. The financial condition of the company strongly depends on the financial condition of its shareholders. P.T. FIP is backed up by the BENDALIS GmbH of Germany which has financially strong behind it.

The management of P.T. FIP is headed by Mr. Drs. Djoko Sujono, Apt, MBA (59) a professional manager with experience in pharmaceutical manufacturing. He graduated Master of Business Administration in Management Pharmacist from University of Gadjah Mada. 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. Considering P.T. FONKO INTERNATIONAL PHARMACEUTICAL has yet been commenced commercial production we recommend to treat prudently in extending a loan to the company.

Attachment:

List of the DEXA MEDICA Group

1. ANUGRAH ARGON MEDICA, P.T. (Trading and Distribution of Pharmaceutical Products)

2. Apotik CILANDAK (Dispensary Management)

3. DJEMBATAN DUA, P.T. (Trading and Distribution of Pharmaceutical Products)

4. DEXA MEDICA, P.T. (Pharmaceutical Manufacturing and Investment Holding)

5. EKON PRIMA, P.T. (Investment Holding)

6. FERRON PAR PHARMACEUTICAL, P.T. (Pharmaceutical Manufacturing)

7. FONKO INTERNATIONAL PHARMACEUTICALS, P.T. (Pharmaceutical Industry)

8. INERTIA UTAMA, P.T. (Investment Holding)

9. WAHANA INTI PRIMA, P.T. (Investment Holding)

10. Etc

* * *

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.24
UK Pound	1	Rs.99.89
Euro	1	Rs.84.22

INFORMATION DETAILS

Report Prepared by :

PDT

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.