MIRA INFORM REPORT

Report Date :

16.01.2014

IDENTIFICATION DETAILS

Name :	P.T. DK GLOBAL INDONESIA
Registered Office :	Perkantoran Sequis Center 10^th Floor, Jalan Jend. Sudirman Kav. 71, Senayan, Kebayoran Baru, Jakarta Selatan, 12190
Country :	Indonesia
Date of Incorporation :	12.07.2013
Com. Reg. No.:	AHU-AH.01.10-36599
Legal Form :	Limited Liability Company
Line of Business :	Trader, Distributer and Wholesaler of Cellular Telephone
No of Employees :	17

RATING & COMMENTS

MIRA’s Rating :

NB

RATING		STATUS	PROPOSED CREDIT LINE
-	NB	New Business	-

Status :	New Business
Payment Behaviour :	Slow But Correct
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, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

COMPANY NAME

P.T. DK GLOBAL INDONESIA

COMPANY ADDRESS

Head Office

Perkantoran Sequis Center 10^th Floor

Jalan Jend. Sudirman Kav. 71

Senayan, Kebayoran Baru

Jakarta Selatan, 12190

Indonesia

Phones - (62-21) 527 0046 (Hunting)

Fax - (62-21) 527 0047

E-mail - dkglobalindo@gmail.com

Building Area - 14 storey

Office Space - 100 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation

12 July 2013

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

- No. AHU-41474.AH.01.01.TH.2013

Dated 31 July 2013

- No. AHU-AH.01.10-36599

Dated 3 September 2013

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Department of Finance

Not Available

The Capital Investment Coordinating Board

No. 600/1/IP/PMA/2013

Dated 9 July 2013

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : US$ 300,000.-

Issued Capital : US$ 300,000.-

Paid up Capital : US$ 300,000.-

Shareholders/Owners :

a. Mr. Lee Dong Kyu - US$ 270,000.-

Address : Pacific Place Residence Tower 1, 108^th Floor

Kawasan Sudirman Central Business District

Jl. Jend. Sudirman Kav. 52-53

Jakarta Selatan, Indonesia

b. Mr. Lee Boo Hyung - US$ 30,000.-

Address : Pacific Place Residence Tower 1, 108^th Floor

Kawasan Sudirman Central Business District

Jl. Jend. Sudirman Kav. 52-53

Jakarta Selatan, Indonesia

BUSINESS ACTIVITIES

Lines of Business

Trading, Distribution and Wholesales of Cellular Telephone

Production Capacity

None

Total Investment

None

Started Operation

October 2013

Brand Name

DK Global Indonesia

Technical Assistance

None

Number of Employee

17 persons

Marketing Area

Local - 100%

Main Customer

Corporate and Traders of Cellular Phone

Market Situation

Very Competitive

Main Competitors

a. P.T. AXINDO INFOTAMA

b. P.T. KRESNATE INDONESIA

c. P.T. NEXIAN INDONESIA

d. P.T. PARASTAR ECHORINDO

e. P.T. VITELL MOBILE INDONESIA

f. Etc.

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers

c. P.T. Bank KEB INDONESIA

Jalan Jend. Sudirman No. 28

Jakarta 10220 - Indonesia

d. P.T. Bank WOORI INDONESIA

Jakarta Stock Exchange Building 16^th Floor

Jalan Jend. Sudirman Kav. 52

Jakarta 12190 – Indonesia

Auditor

Internal Auditor

Litigation

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated)

2013 – Rp. 1.0 billion (October – December)

Net Profit (estimated)

2013 – None

Payment Manner

Average

Financial Comments

Satisfactory

KEY EXECUTIVES

Board of Management

President Director - Mr. Lee Dong Kyu

Director - Mrs. Angela Aprilia

Board of Commissioners

Commissioner - Mr. Lee Boo Hyung

Signatories

President Director (Mr. Lee Dong Kyu) or the Director (Mrs. Angela Aprilia) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability

Satisfactory

Business Morality

Satisfactory

Credit Risk

Average

Credit Recommendation

Credit should be proceeded with monitor

Proposed Credit Limit

Small amount – periodical review

OVERALL PERFORMANCE

P.T. DK GLOBAL INDONESIA (P.T. DGI) was set-up in Jakarta based on notary deed Mr. Haji Djoko Oetoro, SH., No. 06 dated 12 July 2013 with the authorized capital of US$ 300,000 wholly issued and paid up. The founding and shareholders of the company are Mr. Lee Dong Kyu (90%) and his father Mr. Lee Boo Hyung, both are South Korean business citizenship. The company notary deed has been changed and according to the revision of notary deed Mr. Haji Djoko Oetoro, SH., No. 04 dated 29 August 2013 the company board of director and the board of commissioner had been changed where Mrs. Angela Aprilia was appointed as director of the company. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-36599 dated September 3, 2013.

P.T. DGI operates under the Foreign Capital Investment (PMA) to be engaged in the field of trading and distribution of cellular telephones. The company is selling cellular telephones SAMSUNG, LG and others of South Korea with GSM (Global System for Mobile Communications) and also CDMA (Code Division Multiple Access) types and also handheld computer and computer tablets. In its operations, P.T. DGI is cooperating with managers of cellular telephone networks like P.T. P.T. TELEKOMUNIKASI SELULAR INDONESIA (TELKOMSEL) and P.T. XL AXIATA Tbk, P.T. INDOSAT Tbk, P.T. HUCHISON 3 INODNESIA, P.T. SAMPOERNA TELECOM INDONESIA, P.T. SMARTFREN INDONESIA Tbk, P.T. BAKRIE TELECOM Tbk. All the above trading products are sold either direct to end users/individuals or through cellular telephone dealers across the Jakarta area and surroundings and as well as with has distribution networks in Java, Sumatera, Kalimantan and Sulawesi islands. We consider P.T. DGI's operations to have been slow in developing in the last two months.

The Indonesian telecommunication industry is among the fastest growing in the world. In 2008, Indonesia with 170.9 million mobile telephone subscribers was the third largest telecommunication market in Asia, after China with 615.7 subscribers and India with 346.8 subscribers. According to research conducted by Mobil World Database, the research institution also place Indonesia in sixth place in its top 20 mobile market rankings, above several developed countries, such as Germany, Japan and Italy. At the same time, Indonesia is still considered to have low penetration rate compared to other Asian countries. In 2008, Indonesia’s penetration rate stood at 69%. Given the fact that many subscribers have more than one SIM-card, the actual penetration rate is estimated to be below 50%. With such low penetration rate, Indonesia which has a large and growing population and increasing disposable incomes, undoubtedly remain a large potential market for the telecommunication industry. Indonesia has 11 networks providers offering both GSM and CDMA based mobile phone services. The number of network providers in the country is quite high compared those in neighboring countries. Malaysia, for example, has only three providers; Singapore, three; India, seven and Australia four. The telecommunication industry in 2012 showed quite rapid growth. The quickest growth has been showing by cellular telephone and internet. Meanwhile, based on communication products grabbled by P.T. TELKOM Tbk in 2012 has also increased. Details on the growth of cable telephone production facility are as shown on the table below:

Growth, Development of Fixed Telephone and Cellular Telephone Subscriber 2005-2012

Year	Fixed Telephone	Cellular Telephone
2005 2006 2007 2008 2009 2010 2011 2012	13.0 million 14.0 million 16.2 million 20.0 million 26.0 million 28.2 million 31.0 million 33.0 million	46.9 million 63.8 million 96.4 million 170.9 million 172.4 million 221.0 million 260.0 million 285.0 million

Until this time P.T. DGI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. DGI is very reclusive towards outsiders and rejected to disclose its financial condition.

We observed that total sales turnover of the company in the first year operation October to December 2013 amounted to Rp. 1.0 billion and projected to go on rising by at least 6% in 2014. The operation in 2013 has no yielded a net profit due to still new in operation. 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. DGI is led by Mr. Lee Dong Kyu (29) a young businessman and professional manager of South Korea with experience in trading, import and distribution of industrial cellular phone, and computer tablets. Daily operation he is assisted by Mrs. Angela Aprilia (56) as Director. 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. P.T. DK GLOBAL INDONESIA is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 61.58
UK Pound	1	Rs. 101.09
Euro	1	Rs. 83.99

INFORMATION DETAILS

Report Prepared by :

DPT

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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