MIRA INFORM REPORT

Report Date :

06.06.2007

IDENTIFICATION DETAILS

Name :	P.T. MULIAPACK INTISEMPURNA

Registered Office :	Jalan Pluit Raya No. 195, Jakarta Barat, 14440

Country :	Indonesia

Date of Incorporation :	04 November 1994

Legal Form :	Limited Liability Company

Line of Business :	Flexible Packaging 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$ 657,000

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Correct Name of Company

P.T. MULIAPACK INTISEMPURNA

Address

Head Office

Jalan Pluit Raya No. 195

Jakarta Barat, 14440

Indonesia

Phone - (62-21) 668 4358, 662 6865, 662 6866

Fax. - (62-21) 668 4359

E-mail - muliapack@yahoo.com

Building Area - 2 storey

Office Space - 800 sq. meters

Region - Commercial Building

Status - Owned

Factory

Jalan Raya Serang Km. 60

Pancatama Raya II, Cikande

Serang, Banten Province

Indonesia

Phone - (62-254) 402 482, 402 483, 402 484

Fax. - (62-254) 402 485

E-mail - muliapack@yahoo.com

Land Area - 10,000 sq. meters

Factory Space - 5,600 sq. meters

Region - Industrial Zone

Status - Owned

Date of Incorporation

04 November 1994

Legal Form

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

Company Reg. No.

The Ministry of Justice and Human Rights

No. C-2589 HT.01.04.TH.99

Dated 8 February 1999

Company Status

Private and Domestic Investment (PMDN) Company

Permit by the Government Department

The Capital Investment Coordinating Board

No. 15/I/PMDN/1995

Dated 12 January 1995

The Department of Finance

NPWP No. 1.696.544.4-041

Related Company

P.T. AYAM MERAK (Coffee Powder and Investment Holding)

CAPITAL AND OWNERSHIP

Capital Structure :

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

Issued Capital : Rp. 4,400,000,000.-

Paid up Capital : Rp. 4,400,000,000.-

Shareholders/Owners :

a. Mr. Suhardi Muliawan - Rp. 748,000,000.-

b. Mr. Berlen Sulaiman - Rp. 748,000,000.-

c. Mr. Djulizon Sulaiman - Rp. 748,000,000.-

d. Mr. Martun Sulaiman - Rp. 748,000,000.-

e. P.T. AYAM MERAK - Rp. 528,000,000.-

f. Mr. Tandy Wanto - Rp. 440,000,000.-

g. Mr. Drs. Handy Noerjnto, MBA - Rp. 220,000,000.-

h. Mr. Drs. Haryo Suparmun - Rp. 220,000,000.-

BUSINESS ACTIVITIES

Lines of Business:

Flexible Packaging Manufacturing

Production Capacity

Flexible Packaging - 2,500 tons p.a.

Total Investment

a. Equity Capital - Rp. 4.4 billion

b. Loan Capital - Rp. 5.1 billion

c. Total Investment - Rp. 9.5 billion

Started Operation

1996

Brand Name

None

Technical Assistance

None

Number of Employee

63 persons

Marketing Area

Domestic - 95%

Export - 5%

Main Customer

a. P.T. MANADUNIA BOGA

b. P.T. CASTROL INDONESIA

c. P.T. AYAM MERAK

d. The ABC Group

Market Situation

Very Competitive

Main Competitors

a. P.T. SIWANI MAKMUR Tbk.

b. P.T. BELLA PRIMA PERKASA

c. P.T. TOPPAN SAMPOERNA INDONESIA

d. P.T. CIPTA KEMAS ABADI

e. P.T. AVESTA CONTINENTAL PACK

f. Etc.,

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank CENTRAL ASIA Tbk

Jalan Pluit Raya

Jakarta Barat

Indonesia

b. P.T. Bank NEGARA INDONESIA Tbk

Jalan Pluit Raya

Jakarta Barat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2004 – Rp. 44.0 billion

2005 – Rp. 47.0 billion

2006 – Rp. 50.0 billion

Net Profit (Loss) :

2004 – Rp. 3.1 billion

2005 – Rp. 3.3 billion

2006 – Rp. 3.5 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Drs. Handy Noerjanto, MBA

Director - Mr. Drs. Haryo Suparmun

Board of Commissioners :

President Commissioner - Mr. Suhardi Muliawan

Commissioner - Mr. Berlen Sulaiman

Signatories :

President Director (Mr. Drs. Handy Noerjanto, MBA) or the Director (Mr. Drs. Haryo Suparmun) 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$ 657,000.- on the 90 days of payments

OVERALL PERFOMANCE

P.T. MULIAPACK INTISEMPURNA (P.T. MI) was established in November 1994 with an authorized capital of Rp. 1,000,000,000.- of which Rp. 500,000,000.- was issued and paid-up. The founding shareholders of the company are Mr. Suhardi Muliawan, Mr. Berlen Sulaiman, Mr. Tandy Wanto, Mr. Drs. Handy Noerjanto, MBA, Mr. Drs. Haryo Suparmun (all Indonesian business of Chinese extraction) and P.T. AYAM MERAK (a national private company). The company's notarial act has been revised. On 9 October 1997 the authorized capital was raised to Rp. 5,000,000,000.-, issued capital of Rp. 4,400,000,000.- entirely issued and paid up. By the same time Mr. Djulizon Sulaiman and Mr. Martun Sulaiman joined in as new shareholders. The deed of amendment was made by Mr. Haji Muhammad Afdal Gazali, SH., a public notary in Jakarta under Company Registration Number No. C-2589.HT.01.04.TH.1999, dated February 2, 1999. The majority business stakes of P.T. MI is controlled by Mr. Berlen Sulaiman and family, who are also the majority business stakes owners of holding company P.T. AYAM MERAK dealing with powdered coffee industry and investment holding.

P.T. MI operates under Domestic Investment (PMDN) facilities in the plastic packaging industry with its plant located on a some 1.0 hectare landsite at Jalan Raya Serang Km. 60, Pancatama Raya II, Cikande, Serang (Banten Province). The plant, which went into operation in yearly 1996 with a production capacity of 2,500 tons of flexible packaging per year, used up an investment of Rp. 9.5 billion, with Rp. 4.4 billion having come from company capital and the balance from loans. Mr. Tandy Wanto, a general marketing staff of the company, disclosed to our inquiry that the basic materials used like OPP Film, PET Film, Nylon Film, PP, PE, CPP are mostly local products, only a small amount imported. The company produced various packaging requirements for food, beverages, cosmetics, drugs, chemical and so forth. Some 95% of the products is marketed to food product industries, detergent, oil and other industries, and among the customers are P.T. MANADUNIA BOGA, the ABC Group, P.T. CASTROL INDONESIA, its holding company P.T. AYAM MERAK, etc., and the rest 5% is exported to Singapore and other countries on job-order basis. P.T. MI belongs to a medium-sized company of its kind in the country and the operation had been growing within the last three years.

We note that the demand for flexible packaging has been volatile in the last five years in line with the development of industries requiring such packaging like industries producing instant noodles, peppermint, candy, chocolate, snacks, powdered coffee as well as pharmaceuticals, cosmetics and other consumer products. Competition is very tight on account of the many such type of companies in operation in the country. P.T. MI is considered to be still in a quite good business position for having already got hold of a clientele and having established a wide marketing network among foods and drinks processing industries in East Java and other big cities. Development of the Indonesian flexible packaging production is shown in table below.

The Volume and Value of Flexible Packaging Production, 2001-2006

Year

Volume (Ton)

Trend (%)

Value

(US$ 000)

Trend (%)

2001

2002

2003

2004

2005

2006

67,912

74,788

81,143

88,755

93,203

103,095

10.1

8.5

9.4

5.0

10.6

180,515

133,080

121,909

151,586

227,545

200,317

(26.3)

(8.4)

24.3

50.1

(12.0)

Average

8.7

5.6

Source : Central Bureau of Statistic and processing by ICB

Until this time P.T. MI 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. 44.0 billion increased to Rp. 47.0 billion in 2005 and to Rp. 50.0 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 3.5 billion and the company has an estimated total net worth at Rp. 17.0 billion. It is projected that total sales turnover of the company will increase at least 6% in 2007. We observe that P.T. MI 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 usually pays its debts punctually to suppliers.

The management of P.T. MI is led by Mr. Drs. Handy Noerjanto, MBA (54) with 12 years of flexible packaging 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. MULIAPACK INTISEMPURNA 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