20250820_ESTI_Tanggapan atas Permintaan Penjelasan Bursa_31934068_lamp2.pdf

     Note:

     *)   There is an adjustment for the audited financial statements for the period of March 31, 2025
          that have not been recorded in the Company's in-house financial statements for the period
          of June 30, 2025, where the Company's in-house financial statements for the period of June
          30, 2025 have been submitted on July 31, 2025. Meanwhile, the audited financial statements
          for the period of March 31, 2025 will only be completed in August 2025 and submitted on
          August 11, 2025 along with the Information Disclosure report.

     b.   Background or adjustment of the audit process carried out so that miscellaneous income
          (audit) as of March 31, 2025 is greater than other income (in-house) as of June 30, 2025.



     Management response:

     The adjustment for the miscellaneous income account as of March 31, 2025 consists of:

     1.   Adjustment for the recognition of profits from the write-off of outstanding debt amounted to
          USD 443,061.
     2.   Adjustment for the adjustment of exchange rate difference profit amounted to USD 253,234.


     Background adjustment:

     1.   The adjustment for the elimination of unbilled debt of USD 443,061 is based on a further review
          by management that the debt balance comes from purchase transactions that have been
          returned/canceled in 2014 and 2016 but are still recorded in the Company's financial
          statements until the period of March 31, 2025 so that there has never been a realization of
          collection by the vendor concerned until now.

     1.   The adjustment for the exchange rate difference profit of USD 253,234 was based on the
          adjustment of the exchange rate difference for other debt accounts.


2.   Based on the Audited Financial Statements for the period of March 31, 2025, the Company's
     profitability has increased significantly where operating profit and profit for the current period
     increased by 116% and 598% when compared to the previous period of March 31, 2024. However,
     in the Cash Flow Report, cash flow from operations decreased from the previous period of positive
     value of USD 2,479,743 to negative USD 60,750. For this, it should be conveyed:

     a.   Background there is an increase in payments to suppliers.



          Management response:




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     As shown in the table above, the increase in payments to its main suppliers is driven by:

     1. Increased repayment of supplier debt in the 3-month period ending March 31, 2025 compared
          to the 3-month period ending March 31, 2024.

     2. An increase in inventory balance on March 31, 2025 compared to March 31, 2024.


     b.   Details and nature of transactions from the receipt of other business activities as of March 31,
          2025 and March 31, 2024.



     Management response:




3.   The background of the accrual expenses of salaries, wages, and other benefits as well as utilities
     increased by 1,035% and 32.84% as of March 31, 2025.



     Management response:
     Salary accrual expenses increased in the period of March 31, 2025, mainly due to the additional
     calculation of overtime expenses. This increase is influenced by the Eid holiday at the end of March
     2025. The accrual expense of utilities increases according to the actual increase in production that
     occurs.



4.   Background and objectives there is an increase in consumer financing debt of subsidiaries of PT
     Bank Danamon Tbk and Chailiease International Financial Services Co. Ltd. amounting to USD
     349,751 and USD 162,889, respectively.



     Management response:

     The increase in consumer financing debt was caused by the purchase of several new machine
     units. This purchase is motivated by the Company's need to regenerate its old machines, to
     increase the efficiency and effectiveness of the production process, increase production capacity,
     optimize labor use, save fuel and repair costs, and improve product quality.




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5.   Based on the Company's business strategy that has been submitted, to convey:

     a.        Background The Company chooses to increase sales from domestic rather than export.

     Management response:
     The Company chose to increase its focus on domestic sales due to the global economic crisis,
     which was characterized by trade/tariff wars and international conflicts, resulting in a decrease in
     export demand and a significant surge in logistics costs, including the cost of shipping export sales.
     Other factors are that the large number of Indonesia's population is a large market share to be
     seriously worked on. The closure of several textile factories left market opportunities that could be
     maximized by the Company. Furthermore, with the existence of Trade Minister Regulation No. 17
     of 2025 concerning Policies and Regulations on the Import of Textiles and Textile Products in terms
     of efforts to limit the import of textile products, it is expected to support the Company's focus on
     shifting to the domestic market.



     b.       The production capacity is compared to its use by the Company currently and in the future (if
              there are additional machines and equipment).

     Management response:
     The Company's current capacity that has been utilized is 47%. The Company targets that in the
     next 6 years, it can increase capacity to 75% (table below) through a series of optimal and
     comprehensive capital expenditures.


                                                  2024             2025             2026             2027             2028             2029             2030
            Production machine capacity
            Kain Tenun (Yard)
     Wofen Fabrics                45.000.000         21.143.988     23.436.958       25.182.470       27.047.651       29.062.047       31.237.594       33.587.185
                                                            47%            52%              56%              60%              65%              69%              75%
                                               Increase per year            5%               4%               4%               4%               5%               5%

             Kain Rajut (Kg)
     Knit Fabrics                  1.800.000            464.779           519.519          561.081          605.967          654.444          706.800          763.344
                                                            26%               29%              31%              34%              36%              39%              42%
                                               Increase per year               3%               2%               2%               3%               3%               3%

     Yarns    Benang (Kg)         21.600.000          4.958.905      5.272.405        5.567.047        5.794.531        6.036.801        6.294.819        6.569.607
                                                            23%            24%              26%              27%              28%              29%              30%
                                               Increase per year            1%               1%               1%               1%               1%               1%



     c.       The sales strategy is carried out digitally.

     Management response:

     The Company in increasing sales and cost savings, digitizing marketing, but besides that still
     carries out marketing and sales conventionally. For example, maximizing digital sales efforts
     which is expected to provide a wider reach to domestic consumers and even be able to reach
     remote parts of Indonesia with more efficient costs such as the use of social media platforms.


6.   In order to convey information from the Company's coordination with OJK in connection with the
     Quasi-Reorganization plan to be implemented.

     Management response:

     On August 7, 2025, the Company held a coordination meeting with the Financial Services
     Authority (OJK). During the meeting, the OJK stated that a response letter regarding the
     disclosure of information and supporting documents had been submitted to the Company and

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Copy:

-   Head of the Directorate of Securities Transaction Supervision, Otoritas Jasa Keuangan

-   Dear Head of the Directorate of Supervision of Issuers and Public Companies 1, Otoritas Jasa
    Keuangan

-   Dear Head of the Directorate of Supervision of Issuers and Public Companies 2, Otoritas Jasa
    Keuangan




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