MIRA INFORM REPORT

Report No. :	307267
Report Date :	17.02.2015

IDENTIFICATION DETAILS

Name :	P.T. INDOPAK TRADING
Registered Office :	Jalan Bumi Perkemahan RT. 10, Desa Sangkit Lama, Kecamatan Sungai Gelam, Kabupaten Muaro Jambi, Jambi, 36148
Country :	Indonesia
Date of Incorporation :	23.05.2005
Com. Reg. No.:	No. AHU-29945.AH.01.02.TH.2013
Legal Form :	Limited Liability Company
Line of Business :	Engaged in trading and exporter of Agricultural Commodities Products including Betel Nuts and Broom Sticks, Nutmeg, Mace, Clove, Gum Copal, Gum Resin, Long Pepper, Cubed Cassia, Star & Betel Nut (Areca Nut) Aniseed
No of Employees :	34

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 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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. INDOPAK TRADING

company Address

Head Office & Warehouse

Jalan Bumi Perkemahan RT. 10

Desa Sangkit Lama, Kecamatan Sungai Gelam

Kabupaten Muaro Jambi

Jambi, 36148

Indonesia

Phone - (62-741) 7084786

Fax - (62-741) 573221

Mobile Phone - 0813 6663333

E-mail - mahek_mehwish@hotmail.com

Land Area - 2,500 sq. meters

Building Space - 2,000 sq. meters

Region - Industrial Zone

Status - Rent

Date of Incorporation

23 May 2005

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

- No. C-10979.HT.01.01.TH.2006

Dated 19 April 2006

- No. AHU-29945.AH.01.02.TH.2013

Dated 3 June 2013

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Department of Finance

NPWP No. 02.537.205.3-331.000

The Capital Investment Coordinating Board

No. 384/I/PMA/2005

Dated 14 April 2005

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - US$ 237,000.-

Issued Capital - US$ 237,000.-

Paid up Capital - US$ 237,000.-

Shareholders/Owners :

a. Mr. Mohammad Manowar - US$ 177,750.-

Address : 232/C New Dhoraji, Gulshan

E-Iqbal, Karachi

Pakistan

b. Mrs. Farida Nadjemunisa - US$ 59,250.-

Address : Jl. Bulak Tengah I No. 1

Jakarta Timur

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Engaged in trading and exporter of Agricultural Commodities Products including Betel Nuts and Broom Sticks, Nutmeg, Mace, Clove, Gum Copal, Gum Resin, Long Pepper, Cubed Cassia, Star & Betel Nut (Areca Nut) Aniseed

Production Capacity :

None

Total Investment :

a. Equity Capital - US$ 237,000.-

b. Loan Capital - None

c. Total Investment - US$ 237,000.-

Started Operation :

August 2005

Brand Name :

Indopak Trading

Technical Assistance :

None

Number of Employee :

34 persons

Marketing Area :

Export - 100%

Main Customer :

Buyers in Pakistan

Market Situation :

Very Competitive

Main Competitors :

a. P.T. ALAM INDORAMA

b. P.T. ASIA AGROMAS ABADI

c. P.T. GLOBAL VISION IMPEX

d. P.T. PINANG MAS JAMBI

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank BUKOPIN Tbk

Jalan Halim Perdana Kusumah No. 40-42

Jambi

Indonesia

b. P.T. Bank MANDIRI Tbk

Jalan Dr. Sutomo

Jambi

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2012 – Rp. 23.0 billion

2013 – Rp. 24.5 billion

2014 – Rp. 26.0 billion

Net Profit (estimated) :

2012 – Rp. 1.7 billion

2013 – Rp. 1.9 billion

2014 – Rp. 2.0 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Muhammad Manowar

Board of Commissioners :

Commissioner - Mrs. Farida Nadjemunisa

Signatories :

Director (Mr. Muhammad Manowar) which must be approved by Board of Commissioner (Mrs. Farida Nadjemunisa)

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

OVERALL PERFORMANCE

P.T. INDOPAK TRADING (P.T. IT) the company was established in Jambi based on notary deed of Mr. Muhammad Zen, SH., No. 54 dated 23 May 2005 with an authorized capital of US$ 237,000 wholly issued and paid up. The founding shareholders of the company are Mr. Mohammad Manowar of Pakistan (75%) and Mrs. Farida Nadjemunisa (25%) of Indonesia. The company notary deed had been changed and according to the revision of notary deed Mr. Muhammad Zen, SH., no. 201 dated 24 April 2013 the company board of director and the board of commissioner re-elected to lead and runs of the company’s operation. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-29945.AH.01.02.TH.2013 dated June 3, 2013.

P.T. IT operates under the framework of Foreign Investment (PMA) facilities in trading and exports of agricultural commodities products. P.T. IT started to be operating since August 2005 to deal with trading and exporter of agricultural commodities products. The company export of agro commodities like betel nut or areca nut, broom stick and others. The agricultural products likes betel nuts and broom sticks, nutmeg, mace, clove, gum copal, gum resin, long pepper, cubed cassia, star, betel nut (areca nut) aniseed & various consumer goods of Indonesia origin. The agricultural product bought from farmer in Jambi, Padang, Lampung, Medan and Nangroe Aceh Darusalam. Areca nut or betel nut is aromatic and as astringent and is said to intoxicate when first taken. Besides, the product is also used for medicine and cosmetic. Mr. Mohammad Manowar, director of P.T. IT went on to say the company is exported of betel nuts and broom sticks to Pakistan and the rest to India, Bangladesh, Nepal dan Sri Lanka. We observed that P.T. IT’s operation has been growing in the last three years.

We have noticed that the demand for agricultural products had increased some 10% to 11% per annum in the last five years in line with the growth of industrial manufacturing in the country and international market. In the coming years, the growth rate of demand is estimated at about 6% to 7% per annum. The present market situation for agricultural products is very competitive for a large number of similar companies operating in the country. Meanwhile, competition is quite heavy in the export import of agricultural products with many companies now doing business in this field in Indonesia. We consider P.T. IT to be in a quite favorable position for having already got hold of a steady clientele in overseas market.

Until this time P.T. IT has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. IT is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2012 amounted to Rp. 23.0 billion increased to Rp. 24.5 billion in 2013 rose to Rp. 26.0 billion in 2014 and projected to go on rising by at least 4% in 2015. The operation in 2014 yielded an estimated net profit of at least Rp. 2.0 billion and the company has an estimated total net worth of at least Rp. 5.0 billion. We observe that P.T. IT is supported by foreign partner with has financially strong and sound behind it. 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. IT is led by Mr. Muhammad Manowar (57), a professional manager of Pakistan with 25 years of experience in trading and export of agricultural commodities products. The management of the company is handled by professional managers having wide relation with private businessmen within and outside the country and with the government sectors as well. We observed that management’s reputation in said business is fairly good. 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. INDOPAK TRADING is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.20
UK Pound	1	Rs.95.99
Euro	1	Rs.71.00

INFORMATION DETAILS

Analysis Done by :	SUB
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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