MIRA INFORM REPORT

Report Date :

09.07.2007

IDENTIFICATION DETAILS

Name :	P.T. COUNTRY FORM INDONESIA

Registered Office :	Jalan Pulau Tirang No. 9, Taman Lele, Tugurejo, Semarang 50151

Country :	Indonesia

Date of Incorporation :	30 January 2001

Legal Form :	Limited Liability Company

Line of Business :	Wooden Furniture Manufacturing and Exporter of Wooden Furniture

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$ 1,300,000

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Name of Company

P.T. COUNTRY FORM INDONESIA

Address

Head Office & Workshop

Jalan Pulau Tirang No. 9

Taman Lele, Tugurejo

Semarang 50151

Indonesia

Phone - (62-24) 866 3264 (Hunting)

Fax. - (62-24) 866 1524

Land Area - 6,500 sq. meters

Factory Space - 3,200 sq. meters

Region - Industrial Zone

Status - Owned

E-mail - country@indosat.net.id

Date of Incorporation

30 January 2001

Legal Form

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

Company Reg. No.

The Ministry of Justice and Human Rights

No. C-11405 HT.01.04.TH.2006

Dated 21 April 2006

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Directorate General of Tax

NPWP No. 01.951.418.1-057.000

The Department of Trade & Industry

TDP No. 0222/BH-11.01/VII/2003

Dated 9 July 2003

The Capital Investment Coordinating Board

- No. 02/03/I/PMA/2001

Dated 30 January 2001

- No. 382/III/PMA/2006

Dated 27 March 2006

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

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

Issued Capital : US$ 1,510,000.-

Paid up Capital : US$ 1,510,000.-

Shareholders/Owners :

a. WORTHFORT DEVELOPMENT Ltd. - US$ 1,434,500.-

Address : Romasco Place Wickham

Cay 1 Po. Box. 3140

Road Town

British Virgin Island

b. Mr. Herang Asturias - US$ 75,500.-

Address : Tugurejo Rt. 005, Rw. 003

Kelurahan Tugurejo, Semarang

Central Java

Indonesia

BUSINESS ACTIVITIES

Lines of Business:

Wooden Furniture Manufacturing and Exporter of Wooden Furniture

Production Capacity

Wooden Furniture - 12 containers (size 40 feet) per month

Total Investment

a. Equity Capital - US$ 2.0 million

b. Loan Capital - US$ 2.5 million

c. Total Investment - US$ 4.5 million

Started Operation

2002

Brand Name

COUNTRY FORM

Technical Assistance

None

Number of Employee

129 persons

Marketing Area

Export - 100%

Main Customer

100 clients (individual, corporate) customer in the United Kingdom

Market Situation

Very Competitive

Main Competitors

a. P.T. ALAM KAYU SAKTI

b. P.T. MARCELINDO JAYA PRATAMA

c. P.T. C.V. RODA JATI

d. P.T. ALLURE INDONESIA

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank NIAGA Tbk

Jalan Pemuda No. 21

Semarang, Central Java

Indonesia

b. P.T. Bank CENTRAL ASIA Tbk

Jalan Pemuda No. 90-92

Semarang, Central Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2004 – Rp. 90.0 billion

2005 – Rp. 96.0 billion

2006 – Rp. 100.0 billion

Net Profit (Loss) :

2004 – Rp. 6.3 billion

2005 – Rp. 6.7 billion

2006 – Rp. 7.0 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Herang Asturias

Board of Commissioners :

Commissioner - Mrs. Riyana Novita Sari

Signatories :

Director (Mr. Herang Asturias) 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$ 1,300,000.- on the 90 days of payments

OVERALL PERFOMANCE

P.T. COUNTRY FORM INDONESIA (P.T. CFI) was established in Semarang, Central Java in January 2001 with an authorized capital of US$ 800,000.- issued capital of US$ 200,000.- entirely paid up. The original founding shareholders are WORTHFORT DEVELOPMENT LTD, of British Virgin Island as foreign partner and Mr. Herang Asturias, of Indonesia as local partner. The notarial deed has frequently been revised. The latest in December 2005, the authorized capital was increased to US$ 2,000,000.- issued capital to US$ 1,510,000.- entirely paid up. The deed of amendment was made by Mrs. Engelique Tedjajuwana, SH, a public notary in Semarang under Company Registration Number C-11405 HT.01.04.TH.2006, dated April 21, 2006.

P.T. CFI acquired a Foreign Investment (PMA) license issued by Capital Investment Coordinating Board (BKPM) to deal wooden furniture manufacturing and exporter of furniture. The plant (warehouse) is located at Jalan Pulau Tirang No. 9, Taman Lele, Tugurejo, Semarang, Central Java on a land of 6,500 sq. meters. The company has been operating since 2002 by produces wooden furniture, home accessories such as table, chairs, site board and others. The company use local material such as mangoes wood (log), develop in design and presentation to reach homeware international market. Country Form is the brand that it used for this residential product. The whole wooden furniture is produced under job order basis from their buyers in United Kingdom. Mr. Johan Bachtiar, the export staff of the company disclosed some three (3) containers (size 40 feet) of rattan furniture per week or twelve (12) containers (size 40 feet) per month. Besides, P.T. CFI also collected some wooden furniture from other companies especially in Semarang, Central Java. The prolonged economic crisis and sharp Rupiah depreciation against the US Dollar and other hard currencies has positive impact on P.T. CFI’s financial condition for its whole products are exported.

In overall we find the demand for wooden and rattan furniture had been rising by 10% to 12% within 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 7% to 8% per annum. The present market situation for furniture products is very competitive for a large number of similar companies operating in the country. We consider Country Form to be in a quite favorable position for having already got hold of a steady clientele in overseas.

Developments, Export of Wooden Furniture

in Indonesia, 1999-2005

Years

Volume (Million Kg)

Value (Million US$)

1999

2000

2001

2002

2003

2004

2005

631,559

748,147

723,190

561,212

789,235

720,689

748,120

1,209

1,470

1,389

1,034

1,530

1,380

1,400

Developments, Export of Rattan In Indonesia, 2000-2005

Year

Volume (Million Kg)

Value (Million US$)

Average (US$/Kg)

2000

2001

2002

2003

2004

2005

117,98

115,94

133,39

136,89

136,45

128,84

313,54

290,31

302,06

313,49

336,89

347,07

2,66

2,50

2,26

2,29

2,47

2,69

Source : Central Bureau of Statistic, and ASMINDO

Until this time P.T. CFI 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. 90.0 billion increased to Rp. 96.0 billion in 2005 and to Rp. 100.0 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 7.0 billion and the company has an estimated total net worth at least Rp. 25.0 billion. It is projected that total sales turnover of the company will increase at least 6% in 2007. We observe that P.T. CFI is supported by financially fairly strong behind it. So far, we did not hear 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. CFI is led by Mr. Herang Asturias (40) with 9 years of experience in the wooden furniture manufacturing and trade. 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 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. COUNTRY FORM 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/normal.	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