MIRA INFORM REPORT

Report Date :

13.12.2014

IDENTIFICATION DETAILS

Name :	P.T. DRAGON PACK
Registered Office :	Jl. Pangeran Jayakarta No. 139 D-E Jakarta 10730
Country :	Indonesia
Date of Incorporation :	30.11.2010
Com. Reg. No.:	AHU-AH.01.10-02846
Legal Form :	Limited Liability Company
Line of Business :	Manufacturing of Disposable Paper.
No of Employees :	260 Persons

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Indonesia	A2	A2

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, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% 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 also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

Source : CIA

Name of company

P.T. DRAGON PACK

Address

Head Office

Jl. Pangeran Jayakarta No. 139 D-E

Jakarta 10730

Phones - (62-21) 600 9800 (hunting)

F a x - (62-21) 649 5035

Email - export@dragon-pack.com

Website - http://www.dragon-pack.com

Building Area - 3 storey

Office Space - 360 sq. meters

Region - Commercial

Status - Owned

Factory

Jl. Raya Cileungsi Km. 17,5

Cikreuwis, Limusnunggal

Cileungsi, Bogor 16820

West Java, Indonesia

Phones - (62-22) 6012408, 6291096

F a x - (62-22) 6495035

Land Area - 3.5 hectares

Office Space - 1.6 hectares

Region - Industrial Zone

Status - Owned

Date of Incorporation

30 November 2010

Legal Form

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

Company Reg. No.

The Minister of Law and Human Rights

a. No. AHU-59479.AH.01.01.Tahun 2010

Dated 21 December 2010

b. No. AHU-AH.01.10-02846

Dated 04 February 2013

Company Status

Foreign Investment Company (PMA)

Permits by the Government Department

a. The Department of Finance

NPWP No. 03.048.322.6-026.000

b. The Capital Investment Coordinating Board

No. 02575/I/PPM/PMA/2010

Dated 26 November 2010

Related/Affiliated Companies

a. P.T. SINAR HOPERINDO (Paper Manufacturing

b. P.T. CAHAYA INTI UTAMA (Investment Holding)

c. P.T. CITRA SUKSES ABADI (Investment Holding)

d. P.T. KARANG ANUGERAH MURNI (Investment Holding)

e. PD. TOBA SINAR BAHAGIA (Trading)

CAPITAL AND OWNERSHIP

Capital Structure

Authorized Capital - US$ 800,000.- (Rp. 7,166,400,000.-)

Issued Capital - US$ 300,000.- (Rp. 2,687,400,000.-)

Paid up Capital - US$ 300,000.- (Rp. 8,687,400,000.-)

Shareholders/Owners

a. Mr. Emadmohamed Abdelbassir Alghandour - US$. 240,000.- (80%)

Address : Caine, Egypt

Egypt

b. Mrs. Lily Chandradinata - US$. 60,000.- (20%)

Address : Jl. Raya Gading Indah Ni 1/15

Kelapa Gading, North Jakarta

Indonesia

BUSINESS ACTIVITIES

Lines of Business

Disposable paper Manufacturing

Production Capacity

Disposable Paper Product – on the order basis

Total Investment

a. Owned Capital - US$. 800,000.-

b. Loan Capital - US$. 1,700,000.-

c. Total Investment - US$. 2,500,000.-

Started Operation

January 2011

Brand Name

DRAGON PACK

Technical Assistance

None

Number of Employee

260 persons

Marketing Area

Domestic - 20%

Export - 80%

Main Customers

a. Food and Beverage Industries

b. Export to Southeast Asia, Middle East, Western Europe and Central America

c. Food courts and restaurants

d. Retail Shops

e. Etc.

Market Situation

Very Competitive

Main Competitors

a. PT. Cipta Kemas Abadi

b. PT. Bina Plaspac Indonesia

c. PT. Eiwa Plastic Industry

d. PT. Muliapack Intisempurna

e. PT. Norita Multiplastindo

f. PT. D&P Packaging Indonesia

g. Etc.

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers

a. P.T. Bank PERMATA Tbk

Jalan Pangeran Jayakarta

Jakarta Pusat

Indonesia

b. JP Morgan Chase Bank

Chase Plaza

Jalan Jend. Sudirman Kav. 21

Jakarta Selatan

Indonesia

Auditor

Internal Auditor

Litigation

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated)

2011 – Rp. 56.0 billion

2012 – Rp. 120.0 billion

2013 – Rp. 146.0 billion

2014 – Rp. 92.0 billion (January – June)

Net Profit (estimated)

2011 – Rp. 2.4 billion

2012 – Rp. 6.5 billion

2013 – Rp. 7.9 billion

2014 – Rp. 5.0 billion (January – June)

Payment Manner

Almost promptly

Financial Comments

Satisfactory

KEY EXECUTIVES

Board of Management

Director - Mr. Emadmohamed Abdelbassir Alghandour AKA Mohamed Adel

Board of Commissioner

Commissioner - Mrs. Lily Chandradinata

Signatories

Director (Mr. Emadmohamed Abdelbassir Alghandour AKA Mohamed Adel) which must be approved by the Board of Commissioner (Mrs. Lily Chandradinata)

CAPABILITIES

Management Capability

Satisfactory

Business Morality

Satisfactory

Credit Risk

Average

OVERALL PERFORMANCE

P.T. DRAGON PACK was established in Jakarta based on Notarial Deed No. 50 dated 30 November 2010 of Hadijah, SH., notary in Jakarta with an authorized capital of US$ 800,000 (Rp. 7,166,400,000) of which US$ 300,000.- (Rp 2,687,400,000.-) was issued and fully paid up. The founding shareholders of the company are Mr. Emodmohamed Abdelbassir Alghandour AKA Mohamed Abdel of Egypt (80%) and Mrs. Lily Chandradinata of Indonesia (20%). The deed of establishment has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decision Letter No. AHU-59479.AH.01.01.Tahun 2010 dated 21 December 2010 and the deed of amendment with No. AHU-AH.01.10-02846 dated 04 February 2013. However, no changes have been effected in term of its shareholding composition and capital structures to date. We observe that Mrs. Lily Chandradinata is a commissioner of P.T. SINAR HOPERINDO is engaged in paper industry.

P.T. DRAGON PACK was established within the framework of foreign investment (PMA), which has received permit from the Investment Coordinating Board (BKPM) with Number 02575/I/PPM/PMA/2010 dated November 26, 2010, to be engaged in disposable paper product industry. Its plant located at Jl. Raya Cileungsi Km. 17.5, Cileungsi, Bogor, West Java where it stands on 3.5 hectares land. The factory is equipped with the latest of the art technology machinery which ensures maximum efficiency and quality of products. Mr. Agus Muman, a marketing staff of the company explained that the Company’s plant has been commenced commercial production since early 2011 by produces of converting disposable paper products for food industry such as paper cake case, paper coaster, doilies paper, flat paper bag, gift wrap, glass paper cover, sandwich paper, etc. Mr. Agus Muman also said that about 20% of the company's production is sold on the domestic market and the remaining 80% being exported to Southeast Asia, Middle East, Western Europe and Central America. We observe that the operation of P.T. DRAGON PACK has been growing and developing well in the last three years.

Generally, the demand for disposable paper products in the country had significantly rising by 8% to 10% per year in the last five years, in line with the growth of food industries including snack, food and beverage product, biscuit, confectioneries, fast food restaurant, food court, pharmaceutical, cosmetic industries, etc. But, as from October 2008, the demand growth for flexible packaging and printing has kept on dwindling as an impact of global economic crisis as told above. Beside, the competition is very tight on account many similar companies operating in the country. 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. Business position of P.T. DRAGON PACK remains quite good because the product is largely exported.

The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly. The Company’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated that total sales turnover of the company in 2011 increased to Rp. 56.0 billion increased to Rp. 120.0 billion in 2012 and rose again to Rp. 146.0 billion in 2013. The operation of the company in 2013 is estimated to have gained a net profit of Rp. 7.9 billion with a total networth of Rp. 80.0 billion. It’s the sales turnover is projected to be rising by at least 12% in 2014. So far, we did not hear that P.T. DRAGON PACK has been black listed by Bank Indonesia (Central Bank) or involved in detrimental cases being settled in the court. The company usually pays its debts punctually to suppliers.

The management of P.T. DRAGON PACK is headed by Mr. Emadmohamed Abdelbassir Alghandour AKA Mohamed Abdel (39), a businessman of Egypt with more than 11 years experienced in disposable paper product industry. In his daily activities, he is assisted by Mrs. Lily Chandradinata (46) of Indonesia and a number of professional staffs in the above business. The management of the company is having wide relation with private businessmen of home and overseas. 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.

We believe that P.T. DRAGON PACK is sufficiently fairly good for business transaction. However, in view of the economic condition in the country slowdown, we recommend to treat prudently in business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs. 77.44

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	ANK

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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