MIRA INFORM REPORT

Report Date :

24.02.2014

IDENTIFICATION DETAILS

Name :	P.T. CITRA MULIA
Registered Office :	Jalan Jembatan Tiga Block F Kav. 6-7, Jakarta Barat, 14440
Country :	Indonesia
Date of Incorporation :	21.02.2003
Com. Reg. No.:	No. C-07370 HT.01.01.TH.2003
Legal Form :	Limited Liability Company
Line of Business :	trader, importer, wholesaler and distributor of luxury watches products
No. of Employees	17

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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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. CITRA MULIA

company Address

Head Office

Jalan Jembatan Tiga Block F Kav. 6-7

Jakarta Barat, 14440

Indonesia

Phones - (62-21) 668 5452 (Hunting)

Fax - (62-21) 666 01953

Building Area - 1 storey

Office Space - 120 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation

21 February 2003

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

No. C-07370 HT.01.01.TH.2003

Dated 7 April 2003

Company Status

National Private Company

Permit by the Government Department

The Department of Finance

NPWP No. 02.271.383.8-407.000

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 1,000,000,000.-

Issued Capital : Rp. 250,000,000.-

Paid up Capital : Rp. 250,000,000.-

Shareholders/Owners :

a. Mr. Drs. Nus Mahadi Purnomo - Rp. 100,000,000.-

Address : Jl. Taman Duta Barat Block D-1 No. 2, RT. 06

RW. 10, Kelurahan harjamukti, Kecamatan

Cimanggis, Depok, West Java

Indonesia

b. Mr. Gatot Sutrasto - Rp. 75,000,000.-

Address : Jl. Oman Jaya III No. 5, RT. 003 RW. 008

Kelurahan Pejuang, Kecamatan Bekasi Timur

Bekasi, West Java

Indonesia

c. Mr. Arif Hadi Purnawan, M.Sc. - Rp. 75,000,000.-

Address : Jl. Cempaka Putih Tengah 26 A No. 18 A,

RT. 004 RW. 006. Kelurahan Cempaka Putih

Tengah, Kecamatan Cempaka Putih

Jakarta Pusat, Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Trading, Wholesale and Distribution of Luxury Watches Products

Production Capacity :

None

Total Investment :

None

Started Operation :

2003

Brand Name :

Citra Mulia

Technical Assistance :

None

Number of Employee :

17 persons

Marketing Area :

Local - 100%

Main Customer :

Retailers and Shop

Market Situation :

Very Competitive

Main Competitors :

a. P.T. CINDERAMATA INDONESIA

b. P.T. DRANINDO CITRA PESONA

c. P.T. EUROBUTIK BANGUN INDONESIA

d. P.T. TIMES INTERNATIONAL

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

P.T. Bank CENTRAL ASIA Tbk

Jalan Jembatan Dua 82 BB-BC

Jakarta Barat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2011 – Rp. 11.6 billion

2012 – Rp. 12.5 billion

2013 – Rp. 13.8 billion

Net Profit (estimated) :

2011 – Rp. 0.7 billion

2012 – Rp. 0.8 billion

2013 – Rp. 1.0 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Arif Hadi Purnawan, M.Sc

Director - Mr. Gatot Sutrasto

Board of Commissioners :

Commissioner - Mr. Drs. Nus Mahadi Purnomo

Signatories :

President Director (Mr. Arif Hadi Purnawan, M.Sc.) or the Director (Mr. Gatot Sutrasto) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability :

Satisfactory

Business Morality :

Satisfactory

OVERALL PERFORMANCE

Based on investigation the correct name of the report is P.T. CITRA MULIA not P.T. CITRA MULIA (INDONESIA) as stated in your order ref. no. 254729 dated 14 February 2014.

P.T. CITRA MULIA (P.T. CM) was established in Jakarta based on notary deed Mr. Yudi Usfiansyah, SH., No. 2 dated 21 February 2003 with the authorized capital of Rp. 1,000,000,000 issued capital of Rp. 250,000,000 entirely paid up. The founding and shareholders of the company are Mr. Drs. Nus Mahadi Purnomo (40%), Mr. Gatot Sutrasto (30%) and Mr. Arif Hadi Purnawan, M.Sc., (30%) they are Indonesian businessmen of Chinese extraction. The notary deed of incorporation was approved by the Ministry of Law and Human Rights in its decision letter No. C-07370 HT.01.01.TH.2003 dated April 7, 2003.

P.T. CM is a national private company started to be operating since 2003 dealing with trading, import, wholesales and distribution of luxury watches products. According information the originally the company is an authorized distributor and service center of MOVADO watches. However since the end 2012 the company focused and appointed as distributor and services center for luxury watches with various brands such as ALEXANDRE CHRISTIE of Switzerland; JACQUE MARTIN, ESPIRIT, and EXPEDITION. The whole products imported from Europe, Switzerland, Italy, and Singapore and others. According information the company manages a number of outlets in Senayan City, Taman Anggrek Mall, Pondok Indah Mall and Artha Gading Malls. The whole luxury watches marketed locally through dealer and shops in Jakarta, Bandung, Semarang, Yogyakarta, Surabaya, Medan, Pekanbaru, Balikpapan, Makassar and other cities in Indonesia. We observe that P.T. CM is classified a small size company of its kinds with operation has been growing in the last three years.

Demand for luxury watches is expected to increase until the end of this year in line with national economic growth, new product launches and relatively unaffected impact of raising the price of subsidized fuel. It is also closely related to the lifestyle of the upper middle class economy that is likely higher as consumer lifestyle. The number of sales of luxury watches will increase more with the advent of new expensive brands of watches imported completely built up by a number of companies importer. However, since the economic crisis, and Depreciation against the U.S. Dollar a bad impact on the business sector watches. Depreciation Rupiah slumped against the U.S. dollar and other hard currencies resulted in import costs and prices of luxury watches will increase dramatically. It is estimated that demand for luxury watches will increase in the next few years.

Until this time P.T. CM has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. CM is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2011 amounted to Rp. 11.6 billion rose to Rp. 12.5 billion in 2012 increased to Rp. 13.8 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 1.0 billion and the company has an estimated total networth of at least Rp. 3.0 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. CM is led by Mr. Arif Hadi Purnawan (44) a businessman and professional manager with experience in trading, import, wholesales and distribution of luxury watches products. Daily operation he is assisted by Mr. Gatot Sutrasto (52) as Director. 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. CITRA MULIA is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.16
UK Pound	1	Rs.103.44
Euro	1	Rs.85.27

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.