MIRA INFORM REPORT

Report Date :

08.05.2014

IDENTIFICATION DETAILS

Name :	P.T. SUMITOMO INDONESIA

Registered Office :	Summitmas Tower I, 12^th Floor, Jl. Jend. Sudirman Kav. 61-62, Jakarta 12190

Country :	Indonesia

Financials (as on) :	31.03.2012

Date of Incorporation :	09.02.1999

Com. Reg. No.:	No. AHU-AH.01.10-38809

Legal Form :	Limited Liability Company

Line of Business :	· General trading, Export and Import Services · Management Consulting Services · Investment Holding

No. of Employees :	160

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, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Indonesia

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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

BASIC SEARCH

Name of Company :

P.T. SUMITOMO INDONESIA

A d d r e s s :

Head Office

Summitmas Tower I, 12^th Floor

Jl. Jend. Sudirman Kav. 61-62

Jakarta 12190

Indonesia

Phones - (62-21) 5251550 (hunting)

Fax. - (62-21) 5201291, 5255169

Building Area - 34 storey

Office Space - 260 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation :

09 February 1999

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C2-6248 HT.01.01.Th.99

Dated 7 April 1999

b. No. AHU-53103.AH.01.02.Tahun 2008

Dated 5 June 2008

c. No. AHU-AH.01.10-38809

Dated 31 October 2012

Company Status :

Foreign Investment Company (PMA)

Permit by the Government Department :

a. The Department of Finance

NPWP No. 01.868.973.7-059.000

b. The Capital Investment Coordinating Board

- No. 567/I/PMA/1998

Dated 24 September 1998

- No. 263/II/PMA/1999

Dated 03 December 1999

- No. 115/II/PMA/2001

Dated 24 April 2001

- No. 139/III/PMA/2002

Dated 20 December 2002

Holding Company:

SUMITOMO CORPORATION ASIA Pte. Ltd., of Singapore (Investment Holding)

Related/Affiliated Companies :

A member of SUMITOMO Group of Japan

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - US$ 50,000,000 (Rp 421,350,000,000)

Issued Capital - US$ 34,000,000 (Rp 286,518,000,000)

Paid up Capital - US$ 34,000,000 (Rp 286,518,000,000)

Shareholders/Owners :

a. SUMITOMO CORPORATION ASIA Pte. Ltd., - US$ 33,980,000 (99.94%)

Address: 60 Anson Road #05-01

Mapletree Anson,

Singapore 079914

b. SUMITOMO CORPORATION - US$ 20,000 ( 0.06%)

Address: 8-11 Harumi I Chome,

Chuo-ku, Tokyo

Japan

BUSINESS ACTIVITIES

Lines of Business :

a. General trading, Export and Import Services

b. Management Consulting Services

c. Investment Holding

Production Capacity :

None

Total Investment :

a. Equity Capital - US$ 68.9 million

b. Loan Capital - US$ 43.3 million

c. Total Investment - US$ 112.2 million

Started Operation :

April 1999

Brand Name :

SUMITOMO INDONESIA

Technical Assistance :

SUMITOMO CORPORATON ASIA Pte. Ltd., of Japan

Number of Employee :

160 persons

Marketing Area :

Local - 50%

Export - 50%

Main Customers :

a. PT. Sumicon Utama

b. PT. Sumi Rubber Indonesia

c. PT. Sumitomo Chemical Engineering

d. PT. Sumitomo Forestry Co. Ltd.

e. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. PT. Mitsui Indonesia

b. PT. Marubeni Indonesia

c. PT. Sojitz Indonesia

d. PT. Shimizu Indonesia

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r :

PT. Bank Sumitomo Mitsui Indonesia

Summitmas Tower II, 10th Floor

Jl. Jend. Sudirman Kav. 61-62

South Jakarta

Auditor :

Siddharta Siddharta & Widjaja

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Net Income/Revenues :

2011 – US$ 178.4 million

2012 – US$ 211.4 million

2013 – US$ 243.0 million (estimated)

Net Profit (Loss) :

2011 – US$ 7.1 million

2012 – US$ 8.4 million

2013 – US$ 9.6 million (estimated)

Payment Manner :

Promptly

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Yutaka Sekine

Vice President Director - a. Mr. Hidehiko Kashima

b. Mr. Takashi Suhama

Directors - a. Mr. Martunus Djoemak

b. Mr. Hironori Amano

c. Mr. Hiroshi Hara

d. Mr. Hajime Ishikawa

e. Mr. Yasuki Sato

f. Mr. Taketo Kokubo

Board of Commissioners :

President Commissioner - Mr. Kohei Hirao

Commissioner - Mr. Masatoshi Deguchi

Signatories :

President Director (Mr. Yutaka Sekine) or Vice President Directors (Mr. Hidehiko Kashima and Mr. Takashi Suhama) or one of the Directors (Mr. Martunus Djoemak, Mr. Hironori Amano, Mr. Hiroshi Hara, Mr. Hajime Ishikawa, Mr. Yasuki Sato or Mr. Taketo Kokubo) which must be approved by Board of Commissioner (Mr. Koehi Hirao and Mr. Masatoshi Deguchi)

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

OVERALL PERFORMANCE

P.T. SUMITOMO INDONESIA was established on February 9, 1999 under the framework of Foreign Investment Law No. 1 year 1967 (amended by Law No. 11 Year 1970 and No. 25 Year 2007) based on notarial Deed No. 56 of Sutjipto, SH., a notary in Jakarta. The authorized capital of the Company is US$ 50,000,000 of which US$ 20,000,000 was issued and US$ 10,000,000.- was paid up. The founding shareholders of the company are SUMITOMO Corp. of Japan (99.9%) and P.T. SUMMIT NIAGA Corp, a private company (0.1%). The Article of Association has been approved by the Minister of Justice of the Republic of Indonesia through Decision Letter No. C2-6248 HT.01.01.Th.99 dated April 7, 1999. The articles of association of the company have frequently been revised. In 2002, P.T. SUMMIT NIAGA Corp. withdrew and replaced by SUMMIT GLOBAL MANAGEMENT B.V., a company of the Netherlands and concurrently the paid capital was raised to US$ 20,000,000. The founding shareholders of the company are SUMITOMO Corp (0.1%) and SUMMIT GLOBAL MANAGEMENT B.V. of the Netherlands (99.9%).

Most recently by notarial deed of Siti Safarijah, SH., No. 29 dated September 28, 2012 the issued capital was raised from US$ 20,000,000 to US$ 34,000,000.- and fully paid up. Since the time, the shareholders of the company are SUMITOMO CORPORATION ASIA Pte Ltd., of Singapore (99.94%) and SUMITOMO CORPORATION of Japan (0.06%). The amendment to Article of Association has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-38809 dated October 31, 2012. No changes have been effected in term of its shareholding composition and capital structures to date.

P.T. SUMITOMO INDONSIA (“the Company”) or P.T. SI has been in operation since April 1999 dealing with export and import, trading and distribution of pesticides, chemicals, metal equipment, vehicles, tools and machinery, transportation tools, telecommunication tools, electricity and electronic tools, textile and textile products, agriculture and sea crop products, paper and wood products. The main customers of P.T. SI from its own members include PT. Sumicon Utama, PT. Sumi Rubber Indonesia, PT. Sumitomo Chemical engineering, PT. Sumitoro Forestry Co. ltd., and outside the group members include PT. DuPont Agriculture Product, PT. McDermott Indonesia, PT. Indotama Putera Jaya and others.

Besides, P.T. SI is also dealing with investment holding and consulting management services including in marketing strategy, management and development of human resources development and the financial management. The composition of the Company’s investments in shares of unlisted companies (related parties) is as follows:

Company’s Investment in Shares	2012		2011
Company’s Investment in Shares	Percentage of ownership	Amount (US$)	Percentage of Ownership	Amount (US$)
PT. Summit Otto Finance	10.00	15,619,265	10.00	15,619,265
PT. Super Steel Karawang	7.98	1,789,576	7.98	1,789,576
PT. Summit Niaga	2.53	1,642,659	2.53	1,642,659
PT. Traktor Nusantara	10.00	1,400,000	10.00	1,400,000
PT. Sumisho Global Logistics Indonesia	15.00	761,366	15.00	761,366
PT. SMFL Leasing Indonesia	6.00	646,900	6.00	646,900
PT. Super Steel Indah	4.99	616,862	4.99	616,862

Source: PT. Sumitomo Indonesia

In May 2011, the Company and PT. summit Auto Group (“SAG”) established PT. Summit Investment Indonesia (“SII”). The Company’s initial investment in SII is IDR 10 million (USD 1,166) for the subscription of 1 share, representing 0.02% of ownership. The establishment of SII was approved by the Minister of Law and Human Rights on May 20, 2011. Based on Share Sale and Purchase Agreement on 24 February 2012, the Company agreed to pay IDR 11,142 million (US$ 1,226,468) for the purchase of 1,009 shares of SII from SAG, representing 19.98% of ownership with an investment book value of IDR 10,990 (US$ 1,209,687). On the same occasion, The Company’s investment in SII is US$ 11,152 million (US$ 1,227,634) for the Subscription of 1,100 shares, representing 20% of ownership.

According to statement of financial position, the total sales or income of P.T. SUMITOMO INDONESIA (PT. SI) in fiscal 2011 amounted to US$ 178.4 million with a net profit of US$ 7.1 million increased to US$ 211.4 million with a net profit of US$ 8.4 million in 2012. The company’s balance sheets and statement of income in fiscal 2011 and 2012 are attached. Up to present, we have yet to gain the statement of income of P.T. SI in fiscal 2013. However, we estimated that total sales of the company in 2013 rose again to US$. 243.0 million with a net profit of US$.9.6 million. So far we did not hear that the P.T. SI has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court. The company usually pays its debts punctually to suppliers.

Since September 2012, the management of the company led by Mr. Yutaka Sekine (58), replacing Mr. Masayuki Hyodo (62) as President Director. In his daily activities he is assisted by two Vice President Director namely Mr. Hidehiko Kashima (56) and Mr. Takashi Suhama (54), and six Directors namely Mr. Martunus Djoemak (60) of Indonesia, Mr. Hironori Amano (50), Mr. Hiroshi Hara (59), Mr. Hajime Ishikawa (51), Mr. Yasuki Sato (42) and Mr. Taketo Kokubo (42), all of Japan. The management of the company has 20 years of experience in export-import, trading and distribution of various products. The management of the company also has wide relation with overseas and national private businessmen as well as with the government sectors.

We believed that P.T. SUMITOMO INDONESIA is good for normal business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

Attachment

PT. SUMITOMO INDONESIA

STATEMENTS OF FINANCIAL POSITION

For the Year Ended 31 March 2012 And 2011

(in US Dollar)

D E S C R I P T I O N	31 March
D E S C R I P T I O N	2012	2011
ASSETS
a. Current Assets
- Cash	3,212,771	3,535,807
- Trade and other receivables, net	37,599,599	37,680,619
- Inventories	28,883,808	23,012,144
- Prepaid taxes	4,375,454	2,718,375
- Other current assets	1,061,480	948,579
Total Current Assets	75,133,112	67,895,524
b. Non Current Assets
- Fixed assets, net	1,308,459	1,362,736
- Investments in shares	22,476,628	22,992,791
- Investment in equity – accounted invest	12,763,241	--
- Refundable taxes	764,665	--
- Deferred tax assets, net	549,553	557,156
- Intangible assets, net	449,275	121,452
- Other non-current assets	646,528	668,095
Total Non Current Assets	38,958,349	25,702,230
TOTAL ASSETS = TOTAL LIABILITIES AND EQUITY	114,091,461	93,597,754
LIABILITIES AND EQUITY
a. Current Liabilities
- Trade and other payables	29,502,860	27,510,463
- Income tax payable	7,287	91,954
- Advances received	325,563	134,248
- Loan from a related party	13,507,576	5,744,414
Total Current Liabilities	43,343,286	33,481,079
b. Non Current Liabilities
- Post-employment benefits obligation	1,853,325	1,900,854
c. Equity
- Share capital	34,000,000	34,000,000
- Other equity components	(5,010,341)	(7,272,013)
- Retained Earnings	39,905,191	31,487,834
Total Equity	68,894,850	58,215,821

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
Revenues	211,369,677	178,424,295
Cost of Revenues	(186,673,656)	(156,277,308)
Gross Profit	24,696,021	22,146,987
Operating Expenses	(15,077,702)	(12,648,574)
Operating Income	9,618,319	9,648,413
Other Income (Expenses)	1,703,427	230,639
Profit Before Income Tax	11,321,746	9,879,052
Income Tax Expense	(2,904,389)	(2,730,646)
Net Profit	8,417,357	7,148,406

Notes: Audited by Siddharta Siddharta & Widjaja (Registered Public Accountants)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.04
UK Pound	1	Rs.101.97
Euro	1	Rs.83.58

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	NNA

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.