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V. MANAGEMENT’S DISCUSSIONS AND ANALYSIS
The management’s discussions and analysis on financial condition and operating results presented in this section must be read together with the Company’s consolidated financial statements for the fiscal
years ended on December 31, 2016, 2015, and 2014, and related notes, which are presented in Independent Auditor’s Report and the Company’s Consolidated Financial Statement. The discussions
and analysis presented below contain forward-looking statements that are subject to a certain level of risks and uncertainties. The Company’s future consolidated financial and operating results may differ
significantly with the projections contained in these forward-looking statements. Factors that may cause significant differences from the projections contained in these forward-looking statements are discussed
in, but not limited to, the following discussions and other related sections in this Prospectus, particularly Risk Factors.
The following discussions have been prepared based on the Company’s consolidated statement of financial position as of December 31, 2016, 2015, and 2014, and consolidated statement of profit or loss
and comprehensive income for the years ended on December 31, 2016, 2015, and 2014. The Company’s consolidated financial statement as of December 31, 2016, 2015, and 2014, were audited by
Teramihardja, Pradhono Chandra Rödl Partner, Registered Pubic Accountants, with an unmodified opinion and an emphasis of matter in relation to the change of the functional currency of the Company
and certain Subsidiaries from USD to Rupiah in its report signed by Agustina Felisa dated April 28, 2017.
1. OVERVIEW
The Company was established under the name of PT Integra Indocabinet pursuant to the Deed of Establishment of the Limited Liability Company PT Integra Indocabinet No. 147 dated May 19, 1989,
drawn up before Soetjpto, S.H., a Notary in Surabaya, which was approved by the Minister of Justice and Human Rights of the Republic of Indonesia under Decree No. C2-320.HT.01.01.TH.90 dated
January 20, 1990, and was registered in the registry of the Surabaya District Court under No. 1801990 dated February 21, 1990 the Deed of Establishment.
The latest amendment to the Company’s Articles of Association was set out in the Deed of Minutes of Extraordinary General Meeting of Shareholders of PT Integra Indocabinet No. 17 dated March 7, 2017,
drawn up before Fathiah Helmi, S.H., a Notary in Jakarta, which was i approved by the MoLHR under Decree No. AHU-0005787.AH.01.02.TAHUN 2017 dated March 8, 2017, and was i received and
registered in the database of the Legal Entity Administration System of the Ministry of Law and Human Rights, each under No. AHU-AH.01.03-0116016 for the amendment of the Company’s Articles of
Association and No. AHU-AH.01.03-0116017 for the Company’s data change dated March 8, 2017, and was registered in the Company Register under No. AHU-0005787.AH.01.02.TAHUN 2017 dated
March 8, 2017, which, among others, set out the approval of the Shareholders on i the amendment of the Articles of Association in its entirety to conform to the prevailing laws and regulations in the capital
market; ii the change of the Company’s status from a private company to a public company; iii the issuance of the Offering Shares from the portfolio; iv the issuance of new shares from the Company’s
portfolio issued pursuant to the allocation of new shares in the Company to be issued under the ESA program and v the issuance of new shares pursuant to the MESOP the Deed No. 172017.
As set forth in the Deed No. 172017, the Company’s aims and objectives are to engage in the industrial, trade and service businesses.
In order to achieve the aforementioned aims and objectives, the Company may carry out the following business activities:
Main Business Activities:
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1. To engage in industrial businesses, among others, furniture and wood, wood and cork products,
and bamboo and rattan wickerwork industries and other similar industries. 2.
To engage in trade, including export-import, inter-island and local trade, of products produced independently or by other parties that are marketed by the Company; act as a wholesaler,
purveyorsupplier, franchisee, and commission house and other related business activities; act as a distributor, agent and representative of other domestic and international enterprises; and trade of
the industrial products referred to above.
3. To engage in services business, except for legal and tax services.
Supporting Business Activities:
Creative business activities relating to the creation of graphic design, interior design, product design, industrial design, corporate identity consulting, market research service and product packaging services,
and packaging services.
Current Main Business Activities:
The Company’s current business activities are focused on the of production of wood-based furniture and other wooden products, forestry concession and furniture distribution, as well as home decorations
through the Group.
2. FACTORS AFFECTING THE COMPANY’S FINANCIAL CONDITION AND RESULTS
