MIRA INFORM REPORT

Report Date :

09.07.2007

IDENTIFICATION DETAILS

Name :	P.T. TANSOPUTRA ASIA
Registered Office :	Jalan Wala Abadi, Way Laga, Panjang, Bandar Lampung, Lampung Province
Country :	Indonesia
Date of Incorporation :	20 July 1995
Legal Form :	Limited Liability Company
Line of Business :	Activated Carbon Industry

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

Maximum Credit Limit :	US$ 212,000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Name of Company

P.T. TANSOPUTRA ASIA

Address

Head Office & Factory

Jalan Wala Abadi

Way Laga, Panjang,

Bandar Lampung

Lampung Province

Indonesia

Phone - (62-721) 350241(Hunting)

Fax. - (62-721) 350240

E-mail - tanso@lampung.wasantara.net.id

Building Area - Office & Factory

Factory Space - 3,500 sq. meters

Region - Industrial Zone

Status - Owned

Date of Incorporation

20 July 1995

Legal Form

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

Company Reg. No.

The Ministry of Justice and Human Rights

No. C-23968 HT.01.04.TH.2003

Dated 9 October 2003

Company Status

Private and Domestic Investment (PMDN) Company

Permit by the Government Department

The Capital Investment Coordinating Board

No. 482/I/PMDN/1995

Dated 1 September 1995

The Department of Finance

NPWP No.1.704.645.9-322

Related Company

P.T. HANINDO CARBON INDONESIA (Activated Carbon Manufacturing)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 3,000,000,000.-

Issued Capital : Rp. 3,000,000,000.-

Paid up Capital : Rp. 3,000,000,000.-

Shareholders/Owners :

a. Mr. Marga Djaja - Rp. 1,800,000,000.-

Address : Jl. Imam Bonjol No. 11

Samarinda Ilir, Samarinda

East Kalimantan

Indonesia

b. Mr. Jihan Mulkan Djaja - Rp. 1,200,000,000.-

Address : Jl. Kayu Jati III No. 9

Jakarta Timur

Indonesia

BUSINESS ACTIVITIES

Lines of Business:

Activated Carbon Industry

Production Capacity

a. Activated Carbon - 2,400 tons p.a.

b. Charcoal - 4,000 tons p.a.

c. Briquettes - 1,500 tons p.a.

Total Investment

a. Equity Capital - Rp. 3.0 billion

b. Loan Capital - Rp. 2.0 billion

c. Total Investment - Rp. 5.0 billion

Started Operation

1997

Brand Name

None

Technical Assistance

None

Number of Employee

250 persons

Marketing Area

Export - 80%

Domestic - 20%

Main Customer

Buyers in the USA, Netherlands, Japan, South Korea and etc.

Market Situation

Very Competitive

Main Competitors

a. P.T. AIMTOPINDO ACTIVATED CARBON

b. P.T. BARITO MURNISAKTI CHEMICAL

c. P.T. DAITI CARBON INDONESIA

d. P.T. INTAN PRIMA CARBON

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. PT. Bank International Indonesia Tbk

KCI Bandar Lampung

Jalan Ikan Hiu No. 3

Bandar Lampung

b. P.T. Bank CENTRAL ASIA Tbk

Bandar Lampung Main Branch

Lampung, Indonesia

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2004 – Rp. 13.0 billion

2005 – Rp. 14.0 billion

2006 – Rp. 15.3 billion

Net Profit (Loss) :

2004 – Rp. 1.2 billion

2005 – Rp. 1.3 billion

2006 – Rp. 1.5 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Jihan Mulkan Djaja

Board of Commissioners :

Commissioner - Mr. Marga Djaja

Signatories :

Director (Mr. Jihan Mulkan Djaja) 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$ 212,000.- on the 90 days of payments

OVERALL PERFOMANCE

P.T. TANSOPUTRA ASIA (P.T. TPA) was established in Bandar Lampung, Lampung Province in July 1995 with an authorized capital of Rp. 1,500,000,000.- entirely issued and paid up. The founding shareholders are Mr. Djaya Suryana, Mrs. Lim Mutsika Wati and Mr. Shabu Riswan. They are Indonesian businessmen of Chinese extraction. The articles of association has been changed a couple of times. The latest in October 2003, the authorized capital was increased to Rp. 3,000,000,000.- entirely issued and paid up. On the same occasion, the whole shares of the company has been controlled by Mr. Marga Djaja and his son Mr. Jihan Mulkan Djaja, both are Indonesian business family of Chinese origin. The latest deed of amendment was made by Mrs. Grace Parulian Hutagalung, SH., a public notary in Bandar Lampung, under Company Registration Number C-23968 HT.01.04.TH. 2003, dated October 9, 2003.

We observe that majority business stakes of the company is controlled by Mr. Marga Djaja and his son. They also founder and majority business stakes owner of P.T. HANIN CARBON INDONESIA dealing with activated carbon manufacturing whose plant located in Tangerang, Banten Province.

P.T. TPA was brought into existence by the virtue of a Domestic Capital Investment (PMDN) status issued by Investment Coordinating Board (BKPM) to engage in activated carbon industry. Its plant is located at Jalan Wala Abadi, Way Laga, Panjang, Bandar Lampung, Lampung Province on a land of 3,500 sq. metes. The plant has commenced with operation in 1997 by using one basic materials namely coconut shell. The plant produced activated carbon of 2,400 tons, charcoal of 4,000 tons and briquettes of 1,500 tons respectively per annum. The plant has absorbed an investment of Rp. 5.0 billion, come from owned capital of Rp. 3.0 billion and the rest is loans. Products include a wide range of food grade activated carbon products in powdered, granulated and washing-type from. Under each product category, a variety of chemical compositions are available allowing for selection tailored to customer needs. The above products are mostly used as water purification, oil & gas water filter industry, mineral water industry, sorbitol, glycerin and citric acid industry, monosodium glutamate industry and carbon dioxide industry. The activated carbon stands at its highest to work maximum at any application it is used ; solvent, purification, recovery, odour removal, decolourisation, adsobtion, filters, catalyst support, gold recovery and etc. About 80% of the products is exporting to various countries in the world such as Japan, South Korea, Taiwan, Thailand, Philippines, Vietnam, the USA and the Netherlands. Meanwhile, its major local costumers are state owned enterprises like P.T.KRAKATAU STEEL, P.T. PERKEBUNAN NUSANTARA IV, etc. The operation of P.T. TPA had been running in the last three years.

Generally outlook, the demand for activated carbon has kept on rising in the last five years in line with the growth of various industrial sector as its consumers including cement manufacturing industry, oil refinery, mineral water bottling, carbonate industry, syrup & packed tea industry, sorbitol, glycerine citric acid industry, monosodium glutamate industry and others. But, as from the end of 1997, its business has been diminishing affected by the incessant economic crisis battering Indonesia. The economic crisis weakened the absorption power of its consumer companies. We consider P.T. TPA to be in a quite favorable position for having already got hold of a steady clientele in the country and some 80% of the products is exported.

Until this time P.T. TPA 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. 13.0 billion increased to Rp. 14.0 billion in 2005 and to Rp. 15.3 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 1.5 billion and the company has an estimated total networth at Rp. 7.5 billion. It is projected that total sales turnover of the company will be higher by at least 8% in 2007. We observe that P.T. TPA 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 disclosed that the company usually pays its debts punctually to suppliers.

P.T. TPA management is led by Mr. Jihan Mulkan Djaja (36), a businessman who experienced for more than 7 years in the field of activated carbon industry and trade. He also the director of sister company namely P.T. HANIN CARBON INDONESIA. But, we believed that the primemover of the company is Mr. Marga Djaja (70). The management is well-experienced and it is handled by professional staff in the above business. We observed that management’s reputation in said business is fairly good. Their relation with the government is fairly good. So far, we have never heard 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. TANSOPUTRA ASIA 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