MIRA INFORM REPORT

Report Date :

27.08.2007

IDENTIFICATION DETAILS

Name :	P.T. PRINTCOLOR INDONESIA

Registered Office :	Kampung Pengkolan RT. 01/RW.04, Desa Kalijaya, Cibitung, Bekasi 17520, West Java

Country :	Indonesia

Date of Incorporation :	6 July 1990

Legal Form :	Limited Liability Company

Line of Business :	Printing Ink Industry

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	US$ 1,500,000

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Name of Company

P.T. PRINTCOLOR INDONESIA

Address

Head Office & Factory

Kampung Pengkolan RT. 01/RW.04

Desa Kalijaya

Cibitung, Bekasi 17520

West Java

Indonesia

Phone - (62-21) 8900303, 8900304

Fax. - (62-21) 8900606

E-mail - info.id@printcolor.ch

Land Area - 15,000 sq. meters

Building Space - 7,800 sq. meters

Region - Industrial Zone

Status - Owned

Date of Incorporation

6 July 1990

Legal Form

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

Company Reg. No.

C-UM.02.01.16417

Dated 11 November 2005

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The President of the Republic of Indonesia

No. B-137/Pres/5/1990

Dated 8 May 1990

The Capital Investment Coordinating Board

No. 146/I/PMA/1990

Dated 21 May 1990

The Department of Finance

NPWP No. 01.357.639.2-052.000

Related Companies

The GUDANG GARAM Group Members

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : US$ 2,000,000.-

Issued Capital : US$ 670,000.-

Paid up Capital : US$ 670,000.-

Shareholders/Owners :

a. PRINTCOLOR Ltd. - US$ 221,000.-

Address : CH-8968 Mutschellen

Zurich, Switzerland

b. Mr. Winarko Sulistyo - US$ 201,000.-

Address : Jl. Perniagaan No. 16

Jakarta Barat

Indonesia

c. Mrs. Yulianti - US$ 67,000.-

Address : Jl. Panglima Sudirman 5 Z

Embong, Kaliasin, Genteng

Surabaya

Indonesia

d. Mrs. Melani - US$ 50,520.-

Address : Jl. Manyar Kertoarjo III /43

Surabaya, East Java

Indonesia

e. Mrs. Fransisca Fifi Yong - US$ 50,250.-

Address : Jl. Manyar Kertoarjo VI / 62

Gubeng, Surabaya, East Java

Indonesia

f. DR. Agan Soelaiman Dajoh - US$ 33,500.-

Address : Jl. Kelapa Sawit V Block GG No. 19

Kelapa Gading, Jakarta Utara

Indonesia

g. Mr. Roy Teguh - US$ 33,500.-

Address : Jl. Otista No. 9, Bali Mester

Jakarta Timur

Indonesia

b. Mr. Intan Johan - US$ 13,400.-

Address : Kompl. Taman Mutiara Block MG No. 6

Rt. 006/04, Wijaya Kusuma, Grogol

Jakarta Barat

Indonesia

BUSINESS ACTIVITIES

Lines of Business:

Printing Ink Industry

Production Capacity

Printing Ink (Liquid Paste) - 9,000 tons p.a.

Total Investment

a. Equity Capital - US$ 670,000.-

b. Loan Capital - US$ 1,730,000.-

c. Total Investment - US$ 2,400,000.-

Started Operation

1992

Brand Name

Printcolor

Technical Assistance

PRINTCOLOR Ltd., Switzerland

Number of Employee

65 persons

Marketing Area

Local - 100%

Main Customer

Rotogravure printing, dealers and printing shops

Market Situation

Very Competitive

Main Competitors

a. P.T. HI-TECK INK INDONESIA

b. P.T. CEMANI TOKA

c. P.T. SIEGWERK INDONESIA

d. P.T. SAKATA INX INDONESIA

e. P.T. COLORPARK INDONESIA Tbk

f. Etc.,

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank NEGARA INDONESIA Tbk

Jalan Jend. Sudirman Kav. 1

Jakarta Pusat

Indonesia

b. JP MORGAN CHASE Bank

Chase Plaza

Jalan Jend. Sudirman No. 21

Jakarta Pusat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2004 – Rp. 105.0 billion

2005 – Rp. 110.0 billion

2006 – Rp. 115.0 billion

Net Profit (Loss) :

2004 – Rp. 7.3 billion

2005 – Rp. 7.7 billion

2006 – Rp. 8.0 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - DR. Agan Soelaiman Dajoh

Director - Mr. Dipl. Ing. Fathoni Tamzis

Board of Commissioners :

President Commissioner - Mr. Winarko Sulistyo

Commissioners - a. Mr. Henkie Hendra Wibawa

b. Mr. Suresh Ponnudurai

Signatories :

President Director (DR. Agan Soelaiman Dajoh) or the Director (Mr. Dipl. Ing. Fathoni Tamzis) which must be approved by Supervisory Board.

CAPABILITIES

Management Capability :

Good

Business Morality

Good

Credit Risk

Average

Credit Recommendation

Credit should be proceeded with monitor

Proposed Credit Limit

Small amount – periodical review

Maximum Credit Limit

US$ 1,500,000 on 90 days D/A

OVERALL PERFOMANCE

P.T. PRINTCOLOR INDONESIA (P.T. PI) was established in July 1990 with an authorized capital of US$ 2,000,000.- issued capital of US$ 670,000.- wholly issued and paid up. Founders and shareholders are Mr. Winarko Sulistyo, Mrs. Yulianti, Mrs. Melani, Mrs. Francisca Fifi Yong, DR. Agan Soelaiman Dajoh, Mr. Roy Teguh, Mr. Intan Johan wholly Indonesian of Chinese ethnic and PRINTCOLOR LTD., of Switzerland.The articles of association has been changed. The deed of amendment was made by Mr. Zacharias Omawele, SH., a public notary in Jakarta under Company Registration Number C-UM.02.01.16417, dated November 11, 2005. Its shareholders repectively Mrs. Yuliati, Mrs. Franciscus Fifi Yong and Mrs. Melani are daugters of Mr. Bintoro Tanjung AKA Tan Ming Wong, one of the owners of the GUDANG GARAM Group, a big-sized national private business group in clove cigarette manufacturing in Indonesia.

P.T. PI started with operation in 1992 in printing ink industry whose plant located in Kampung Pengkolan, Desa Kalijaya, Cibitung, Bekasi (West Java) standing on 15,000 square meters land. The plant has a capacity to produce 9,000 tons of printing ink (liquid paste) per annum. The supplies of basic materials in the form of resin is imported from Germany and Belgium and a part of the basic materials is obtained from domestic market like pigment etc. The products are entirely marketed domestically under Printcolor brand mainly to various packaging industry, rotogravure printing industry, printing offset manufacturing, newspaper publishers, magazines, etc. The economic crisis and sharp rupiah depreciation against the US Dollar, Poundstering and other hard foreign currencies has negative impact on P.T. PI's operation due to drastical increase on production cost and imported basic materials prices.

We note that generally the printing ink processing industry in Indonesia has kept on rising in the last five years in line with growth demand for the product in the country. Later since the middle of 2004 the printing ink industry started resurging up to the present. Meanwhile, the above trade is heavily competitive with some 11 companies now active in the same business line in the country and with imported products being also widely available in the domestic market. The development of the printing ink industry is shown by the data on the industry's production and utilization below.

Development of Printing Ink Capacity, Production and

Utilization Rate in Indonesia

Printing Ink	2003	2004	2005	2006
Capacity (tons)	50,220	50,220	50,220	50,220
Production (tons)	35,154	35,154	36,209	37,295
Utility (%)	70.00	70.00	72.10	74.26

Source : The Department of Industry and Trade

Until this time P.T. PI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We observed that total sales turnover of the company in 2004 amounted to Rp. 105.0 billion increased to Rp. 110.0 billion in 2005 and to Rp. 115.0 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 8.0 million and the company has an estimated total net worth at Rp. 21.7 billion. It is projected that total sales turnover of the company will be higher by at least 8% in 2007. The financial condition of the company is backed up by financially strong and sound foreign business partner behind it. So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia). The company disclosed that the company usually pays its debts punctually to suppliers.

The management of P.T. PI is headed by DR. Agan Soelaiman Dajoh (58), a businessman and professional manager who has experienced for more than 15 years in the field of printing ink industry and trade. Daily operation, he assisted by Mr. Dipl. Ing. Fathoni Tamzis (55) as a director. We observed that management’s reputation in said business is fairly good. The management of the company is handled by experienced professional manager having wide relation with private businessmen of home and overseas as well as with the government sectors. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. PT. PRINTCOLOR INDONESIA is fairly good for 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.

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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