MIRA INFORM REPORT

Report Date :

06.06.2007

IDENTIFICATION DETAILS

Name :	P.T. CAPSUGEL INDONESIA

Registered Office :	Jalan Raya Bogor Km. 42, Cibinong 16916, West Java

Country :	Indonesia

Date of Incorporation :	14 February 1996

Legal Form :	Limited Liability Company

Line of Business :	Gelatine Capsule Manufacturing

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$ 2,400,000

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Name of Company

P.T. CAPSUGEL INDONESIA

Address

Head Office & Factory

Jalan Raya Bogor Km. 42

Cibinong 16916

West Java

Indonesia

Phone - (62-21) 875 2226 (Hunting)

Fax. - (62-21) 875 2227

Land Area - 9,300 sq. meters

Factory Space - 7,600 sq. meters

Region - Industrial Zone

Status - Owned

Date of Incorporation

14 February 1996

Legal Form

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

Company Reg. No.

The Ministry of Justice and Human Rights

No. C-30274 HT.01.04.TH.2003

Dated 31 December 2003

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Capital Investment Coordinating Board

- No. 144/I/PMA/1996

Dated 12 February 1996

- No. 1646/III/PMA/1998

Dated 19 November 1998

- No. 02/II/PMA/2000

Dated 6 June 2000

- No. 231/II/PMA/2002

Dated 30 October 2002

The Department of Finance

NPWP No. 01.071.413.7-052.000

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : US$ 7,500,000.-

Issued Capital : US$ 7,500,000.-

Paid up Capital : US$ 7,500,000.-

Shareholders/Owners :

a. WARNER LAMBERST COMPANY LLC - US$ 6,750,000.-

Address : 1209 Orange Street Corporation

Trust Center, United Stated of America

USA

b. INTERNATIONAL AFFILIATED CORP. LLC - US$ 750,000.-

Address : 1209 Orange Street Corporation

Trust Center, United Stated of America

USA

BUSINESS ACTIVITIES

Lines of Business:

Gelatine Capsule Manufacturing

Production Capacity

a. Gelatine Capsules - 3,950 million pcs. p.a.

b. Trading and Import Services - US$ 2.0 million

Total Investment

a. Equity Capital - US$ 7.5 million

b. Reinvested Profit - US$ 1.5 million

c. Loan Capital - US$ 10.2 million

d. Total Investment - US$ 19.2 million

Started Operation

1996

Brand Name

Gelatine

Technical Assistance

WARNER LAMBERT of the USA

Number of Employee

145 persons

Marketing Area

Domestic - 65%

Export - 35%

Main Customer

Pharmaceutical industry, etc.

Market Situation

Very Competitive

Main Competitors

a. P.T. KALBE FARMA Tbk.

b. P.T. KIMIA FARMA Tbk.

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers

a. CITIBANK N.A.

Landmark Center

Jalan Jend. Sudirman No. 1

Jakarta Pusat

Indonesia

b. AMERICAN EXPRESS Bank

American Express Bank Building

Jalan H.R. Rasuna Said Block X-1

Jakarta Selatan

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2004 – Rp. 167.0 billion

2005 – Rp. 172.0 billion

2006 – Rp. 185.0 billion

Net Profit (Loss) :

2004 – Rp. 10.0 billion

2005 – Rp. 10.3 billion

2006 – Rp. 11.1 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Eddy Suyadi

Directors - a. Mr. Muhammad Said Bernard

b. Mrs. Sapti Damajanti

c. Mr. Charles Robert Danjaut

Board of Commissioners :

President Commissioner - Mr. Guido Edouard Driesen

Commissioners - a. Mr. Edward Allan Gabor

b. Mr. Drs. Thomas Dharmasaputra

Signatories :

President Director (Mr. Eddy Suyadi) or one of the Directors (Mr. Charles Robert Danjaut, Mr. Muhammad Said Bernard or Mrs. Sapti Damajanti) 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$ 2,400,000.- on the 90 days of payments

OVERALL PERFOMANCE

P.T. CAPSUGEL INDONESIA (P.T. CI) was established in February 1996 with the authorized capital of US$ 3,500,000 wholly issued and paid up. The founding shareholders of the company are WARNER LAMBERT COMPANY and INTERNATIONAL AFFILIATED CORPORATION, both of the USA. The articles of association of the company have frequently been revised. In December 1998, the authorized capital of the company was raised to US$ 7,500,000 wholly issued and paid up. The deed of amendment was made by Mr. Singgih Susilo, SH., a public notary in Jakarta under Company Registration Number C-30274HT.01.04.TH.2003, dated December 31, 2003.

P.T. CI obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with Gelatin Capsule industry having been in operation since 1996 by taking over the activities and assets of P.T. GELATINDO MUKTI GRAHA having been in operation since 1984. Its plant is located at Jalan Raya Bogor Km. 42, Cibinong, West Java on a land of 9,300 square meters having frequently been revised. The plant has been expansion frequently to increasing production capacity in gelatine capsules of 3,950 million pcs per annum, with an investment of US$ 19.2 million, come from owned capital of US$ 7.5 million, reinvested profit of US$ 1.5 million and the rest from loans. Some 65% of the products is locally marketed among pharmaceutical industries such as P.T. SANBE FARMA, P.T. DEXA MEDICA, P.T. FERRON FARMA, P.T. INDOFARMA and others. Meanwhile, the rest 35% of this is exported to several Asian countries. We observe the operation of P.T. CI has been growing within the last five years.

Generally, demand for gelatine capsules and various pharmaceutical products had been growing in the last five years up to the end 2004 as pictured in sales value of national pharmaceutical products, import value and export value issued by the Food and Drug Controlling Board (BPOM). According the BPOM that national pharmaceutical sales, import and export value of pharmaceutical products as shown are as the following table.

Export and Import value of pharmaceutical products and basic material

Year	Export (US$ Million)	Import (US$ Million)	National Sales (Rp. Trilliun)
1998	44.40	196.51	5.01
1999	61.03	194.91	7.56
2000	59.87	234.15	10.0
2001	69.92	195.62	13.0
2002	80.00	200.00	15.2
2003	98.80	210.00	17.0
2004	100.0	215.00	20.0

Source : Food and Drug Controlling Board (BPOM)

The national pharmaceutical sales, export and import value of products are estimated to be rising by 6% to 8% in the next year. The competition is very tight on account many similar companies operating in the country. The business position of P.T. CI is a sufficiently good for controlling marketing network in the big cities.

Until this time P.T. CI 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. 167.0 billion increased to Rp. 172.0 billion in 2005 and to Rp. 185.0 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 11.1 billion and the company has an estimated total net worth at Rp. 102.0 billion. It is projected that total sales turnover of the company will increase at least 8% in 2007. We observe that P.T. CI is supported by financially strong foreign partners behind it. So far, we have never heard of 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. CI is led by Mr. Eddy Suyadi (45) with 12 years of experience in the gelatine capsules 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 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. CAPSUGEL 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