MIRA INFORM REPORT

Report Date :

27.07.2007

IDENTIFICATION DETAILS

Name :	P.T. GROWTH ASIA
Registered Office :	Medan Industrial Estate, Jalan K.L Yos Sudarso Km. 10.5, Medan, North Sumatra
Country :	Indonesia
Date of Incorporation :	3 November 1989
Legal Form :	Limited Liability Company
Line of Business :	Iron and Steel Foundry

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$ 1,900,000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Name of Company

P.T. GROWTH ASIA

Address

Head Office & Factory

Medan Industrial Estate

Jalan K.L Yos Sudarso Km. 10.5

Medan, North Sumatra

Phones - (061) 6850206 (hunting)

Fax - (061) 6850208

Email - enquiry@ptgrowthasia.com

Website - http://www.ptgrowthasia.com

Land Area - 6.0 hectares

Building Space - 2.2 hectares

Region - Industrial Zone

Status - Owned

Branches

a. Australia Office

P.O. Box 2195

Kardinya, W.A. 6163, Australia

Phone - (+618) 9331 7877

Fax. - (+618) 9331 7855

b. Pacific Region Office

6 Redwood St. Kingston,

Queensland 4144, Australia

Phone - (+617) 3208 9530

Fax. - (+617) 3808 7554

Date of Incorporation

3 November 1989

Legal Form

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

Company Reg. No.

The Ministry of Justice and Human Rights

No. C2-3230.HT.01.4.TH.1998

Dated 03 April 1998

Company Status

National Private Company

Permit by the Government Department

The Capital Investment Coordinating Board

No. 359/I/PMDN/1990

Dated 19 April 1990

Related Companies

A member of the GROWTH SUMATERA Group

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 5,000,000,000.-

Issued Capital - Rp. 2,000,000,000.-

Paid up Capital - Rp. 2,000,000,000.-

Shareholders/Owners :

a. Mr. Fadjar Suhendra - Rp 1,200,000,000.-

b. Mr. Sugih Suhendra - Rp 800,000,000.-

BUSINESS ACTIVITIES

Lines of Business:

Iron and Steel Foundry

Production Capacity

a. Iron and Steel Casting - 9,600 tons p.a.

b. Fabricated Steel Structures - 12,000 tons p.a.

c. Machinery and Equipments - 6,000 tons p.a.

d. Automotive Parts - 1,000 tons p.a.

e. Mining Machinery Parts - 3,250 tons p.a.

Total Investment

a. Equity Capital - Rp. 5.0 billion

b. Loan Capital - Rp. 17.4 billion

c. Total Investment - Rp. 22.4 billion

Started Operation

April 1990

Brand Name

GROWTH ASIA

Technical Assistance

None

Number of Employee

280 persons

Marketing Area

Local (Domestic) - 70%

Export (Overseas) - 30%

Main Customer

a. Crumb rubber and oil palm processing industries, gold industries, coal and copper mining. Etc.

b. Export to Malaysia, Singapore, Philippines, Australia and Uruguay

Market Situation

Very Competitive

Main Competitors

a. P.T. BAJAPERSADA MULTIPERKASA

b. P.T. GUNA KATUP SEMESTA

c. P.T. ANEKA LOGAM

d. P.T. GETEKA FOUNINDO

e. P.T PROLIMAS UTAMA JAYA

f. C.V. PRIMA LOGAM

g. Etc.,

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank MANDIRI Tbk.

Jalan Diponegoro No. 100-109

Medan, North Sumatra

b. P.T. Bank PERMATA Tbk.

Jalan KH Zainul Arifin No. 49-50

Medan, North Sumatra

c. ABN AMBRO Bank

Jalan Imam Bonjol No. 26-A

Medan, North Sumatra

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2004 – Rp. 95.0 billion

2005 – Rp. 120.0 billion

2006 – Rp. 138.0 billion

Net Profit :

2004 – Rp. 4.9 billion

2005 – Rp. 5.5 billion

2006 – Rp. 6.2 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Fadjar Suhendra

Director - Mr. Jim Hudson

General Manager - Mrs. Catherine Widjaja

Sales Manager - Mr. Solihin Sofian

Board of Commissioners :

President Commissioner - Mr. Sugih Suhendra

Signatories :

President Director (Mr. Fadjar Suhendra) or Director (Mr. Jim Hudson) which must be approved by Board of Commissioners.

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$ 1,900,000.- on the 90 days of payments

OVERALL PERFOMANCE

P.T. GROWTH ASIA (P.T. GA) was established in 1989 with the authorized capital of Rp. 5,000,000,000 of which Rp. 2,000,000,000 was issued and fully paid up. The founding shareholders are Mr. Soe Tjoei, his wife Mrs. Joe A Kam and his four children namely Mr. Fadjar Suhendra, Mr.Trisno Suhendra, Mr. Surya Suhendra and Mr. Sugih Suhendra, all are Indonesian business family of Chinese extraction. However, in January 1998 whole shares of P.T. GA were taken over by Mr. Fadjar Suhendra (60%) and his younger brother Mr. Surya Suhendra (40%).

P.T. GA is a member of the GROWTH STEEL Group or the GROWTH SUMATERA Group, a small sized company group being led by Mr. Fadjar Suhendra (64). The group focuses its activities to deal with iron and steel casting, steel milling, shrimp culturing and cold storage, cassava pelletizing and chip manufacturing.

P.T. GA is dealing with iron and steel foundry by managing a plant located in Medan Industrial Estate, Jalan K.L. Yos Sudarso Km. 10.5, Medan, North Sumatra on a land of 6 hectares. The plant produces iron and steel casting, fabricating steel structures, machinery and equipment, automotive parts and mining machinery parts. The plant is equipped with machinery and modern equipment including spectrometer, universal testing machine, digital hardness tester, ultrasonic flaw detector, a hug heat treatment plant and others. Some 70% of the products of P.T. GA is locally sold especially to crumb rubber and oil palm processing industries, gold industries, coal and copper mining ones. The rest of 30% is exported to Malaysia, Singapore, the Philippines, Australia and Uruguay. P.T. GA is classified as a large sized company dealing with iron and steel foundry in North Sumatra. The operation of the company has gradually been growing in the last three years.

The economic crisis battering the country since mid 1997 followed by the sharp rupiah depreciation against foreign currencies has brought bad impact to P.T. GA on account of the drastic decrease in the public purchasing power in the country. However, since 1999 the demand for iron and steel casting has started increasing gradually in line with the amelioration of the unstable economic condition in the country. The business prospect of P.T. GA is favorable once the unstable economic condition starts recovery.

Until this time P.T. GA 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. 95.0 billion increased to Rp. 120.0 billion in 2005 and to Rp. 4138 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 6.2 billion and the company has an estimated total networth at Rp. 80.0 million. It is forecasted that total sales turnover of the company will be higher by at least 8% in 2007. We observe that P.T. GA is supported by financially fairly strong behind it. So far, we have never heard of 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 company is headed by Mr. Fadjar Suhendra (67), a businessman with 38 years of experience in steel making industry. He is also the prime mover of the GROWTH SUMATERA Group, a company group focusing its business to deal with iron and steel product industry. Daily, he is assisted by a team of experienced professional managers in steel and iron casting industry. The company has wide relation with overseas and national private businessmen as well as with the government sectors. We believed that P.T. GA is good for business transaction. However, in view 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