MIRA INFORM REPORT

Report Date :

14.09.2007

IDENTIFICATION DETAILS

Name :	P.T. ROMAN CERAMIC INTERNATIONAL

Registered Office :	Lyman Wing Kota-BNI 6^th Floor, Jalan Jend. Sudirman Kav. 1, Jakarta Pusat, 10220

Country :	Indonesia

Date of Incorporation :	6 February 2006

Legal Form :	Limited Liability Company

Line of Business :	Ceramic Floor and Wall Tile Manufacturing .

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	US$ 46,000

Status :	Small Company

Payment Behaviour :	Regular

Litigation :	Clear

Name of Company

P.T. ROMAN CERAMIC INTERNATIONAL

Address

Head Office

Lyman Wing Kota-BNI 6^th Floor

Jalan Jend. Sudirman Kav. 1

Jakarta Pusat, 10220

Indonesia

Phone - (62-21) 572 2006 (Hunting)

Fax. - (62-21) 570 2060

Building Area - 32 storey

Building Space - 400 sq. meters

Region - Commercial Building

Status - Rent

Factory

Kawasan Ngoro Industri Persada

Block P No. 3, Ngoro

Mojokerto

East Java

Phones - (62-321) 616 241-8

Fax - (62-321) 616 251

Land Area - 20,000 sq. meters

Building Area - 11,000 sq. meters

Region - Industrial Estate

Status - Owned

Date of Incorporation

6 February 2006

Legal Form

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

Company Reg. No.

The Ministry of Justice and Human Rights

No. C-11177 HT.01.01.TH.2006

Dated 20 April 2006

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Directorate General of Tax

NPWP No. 02.026.767.0-052.000

Related Company

The LYMAN or SATYA DJAYA RAYA Group Members

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : US$ 10,000,000.-

Issued Capital : US$ 10,000,000.-

Paid up Capital : US$ 10,000,000.-

Shareholders/Owners :

a. RICH RESOURCES INVESTMENT Pte. Ltd. - US$ 9,000,000.-

Address : 128 Tanjong Pagar Road

Singapore 088535

Singapore

b. P.T. LYMAN INVESTINDO - US$ 1,000,000.-

Address : Lyman Wing Kota-BNI 6^th Floo

Jl. Jend. Sudirman Kav. 1

Jakarta Pusat

Indonesia

BUSINESS ACTIVITIES

Lines of Business:

Ceramic Floor and Wall Tile Manufacturing

Production Capacity

a. Wall Tiles - 2,500,000 sq. meters p.a.

b. Floor Tiles - 2,500,000 sq. meters p.a.

Total Investment

a. Equity Capital - US$ 10.0 million

b. Loan Capital - US$ 15.0 million

c. Total Investment - US$ 25.0 million

Started Operation

July 2007

Brand Name

ROMAN

Technical Assistance

RICH RESOURCES of Singapore

Number of Employee

400 persons

Marketing Area

Domestic - 70%

Export - 30%

Main Customers

a. P.T. SATYA LANGGENG SENTOSA

b. P.T. CATUR SENTOSA ADIPRANA

c. P.T. CATUR KARDA DEPO BANGUNAN

d. P.T. CATUR MITRA SEJATI SENTOSA

e. Building Material Trading

f. Etc.,

Market Situation

Very Competitive

Main Competitors

a. P.T. SATYARAYA KERAMIKINDAH

b. P.T. MULIAKERAMIK INDAHRAYA Tbk

c. P.T. KERAMINDO MEGAH PERTIWI

d. P.T. HAENG NAM SEJAHTERA INDONESIA

e. Etc.,

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank NEGARA INDONESIA Tbk

Wisma BNI

Jalan Jend. Sudirman Kav. 1

Jakarta Pusat

Indonesia

b. P.T. Bank DBS INDONESIA Tbk

Plaza BRI

Jalan Basuki Rachmat 122

Surabaya, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2007 – Rp. 3.5 billion (July-August)

Net Profit (Loss) :

None

Payment Manner :

Above Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Lie Po Teng

Directors - a. Mr. Tho Tuck Foo

b. Mr. Leopard Lyman

Board of Commissioners :

President Commissioner - Mr. Royson Lyman

Commissioner - Mr. Poedji Koentarso

Signatories :

President Director (Mr. Lie Po Teng) or one of the Directors (Mr. Tho Tuck Foo and Mr. Leopard Lyman) which must be approved by Supervisory Board.

CAPABILITIES

Management Capability :

Good

Business Morality

Good

Credit Risk

Above Average

Credit Recommendation

Credit should be extended under guarantee

Proposed Credit Limit

C.O.D. To small amount

Maximum Credit Limit

US$ 46,000.- on the 90 days of payments

OVERALL PERFOMANCE

P.T. ROMAN CERAMIC INTERNATIONAL (P.T. RCI) was established in Jakarta on 6 February 2006 with an authorized capital of US$ 10,000,000.- entirely issued and paid up. The founding shareholders of the company are RICH RESOURCES INVESTMENT Pte. Ltd., of Singapore as foreign partner and P.T. LYMAN INVESTINDO as local partner. The deed of amendment was made by Mr. Sutjipto, SH., a public notary in Jakarta under Company Registration Number C-11177 HT.01.01.TH.2006, dated April 20, 2006. We observe the local partner namely P.T. LYMAN INVESTINDO is a private company in investment holding and majority shares is controlled by Mr. Susanta Lyman AKA Lie Siong Thay and his family members. Mr. Susanta Lyman is also founder and majority shareholders of the LYMAN Group or SATYA DJAYA RAYA Group members, a medium-sized group in Indonesia.

P.T. RCI acquired a Foreign Investment (PMA) facility for dealing with in floor and wall ceramic tile manufacturing whose plant located in Kawasan Ngoro Industri Persada Block P No. 3, Ngoro, Mojokerto, East Java on a land of 20,000 sq. meters. The plant has been in operation since July 2007 by produces of wall tiles of 2,500,000 sq. meters and floor tiles of 2,500,000 sq. meters respectively per annum. Its whole products were originally marketed domestically under popular brands ROMAN. The plant has absorbed an investment of US$ 25.0 million come from owned capital of US$ 10.0 million and the rest is loans. Some 30% of its products is directly exported to Asian countries, European countries and the rest 70% is marketed domestically through its sister company P.T. SATYA LENGGENG SENTOSA as a distributor. But for direct local sales is handled by a number of dealers appointed by the above distributor like P.T. ISATANA KEJORA, P.T. DUTA BANGUNAN, P.T. CATUR SENTOSA ADIPRANA and other building supermarket such as MITRA 10, DEPO BANGUNAN and other building material trading. We observe that P.T. RCI is still newly in operation and a medium-size of its kind in floor and wall tile manufacturing.

In overall views we find the demand for ceramic tiles, sanitary wares and the like had been rising by 10% to 12% per year in the last five years, in line with the rapid growth of property sector like hotel, apartment, real-estate, office building, etc. Its projected the demand for ceramic tile will be rising in the last five years. While competition, is very tight due to a large number of similar companies operating in the country. The economic crisis battering the country since mid 1997 followed by the sharp rupiah depreciation against US$, Japan Yen, Germany Mark and other hard foreign currencies has brought bad impact to the property and constructing businesses such as the development of housings, real estates, office buildings, shopping buildings, apartments and others.

Production and Supply of Ceramic, 2000-2005 (M2)

Year

Production

Export

Import

Supply

2000

2001

2002

2003

2004

2005

202.145.086

219.460.190

229.348.751

238.749.581

241.487.952

243.875.657

20.891.905

24.107.793

26.603.651

31.422.758

35.193.489

31.838.221

560.325

920.060

171.427

3.779.582

4.346.829

10.490.953

181.813.506

196.272.457

202.916.527

211.106.675

210.641.293

222.528.389

Source : Central Bureau of Statistic (BPS), processed by ICB

Until this time P.T. RCI 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 the first year operation from January-August 2007 amounted to Rp. 3.5 billion. The operation in 2007 has no yielded because the company has newly in operation. It is estimated the company has an estimated total networth at least Rp. 122.0 billion. It is projected that total sales turnover of the company will increase at least 8% in 2008. We observe that P.T. RCI is supported by financially 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. RCI is led by Mr. Lie Po Teng (45) a businessman with 12 years of experience in the ceramic floor and wall tile manufacturing. Previously he has a general manager of P.T. SATYARAYA KERAMINDOINDAH dealing with ceramic floor and wall tile manufacturing. Daily operation, he is assisted by two directors namely Mr. Tho Tuck Foo (56) and Mr. Leopard Lyman (33). The management is quite creative and dynamic, having maintained a wide business relation with private businessmen at home and abroad 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. ROMAN CERAMIC INTERNATIONAL is sufficiently 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.	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%)

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