MIRA INFORM REPORT

Report Date :

19.09.2007

IDENTIFICATION DETAILS

Name :	P.T. KURITA INDONESIA

Registered Office :	Jalan Jababeka XII-A, Kav. V-6, Kawasan Industri Jababeka Cikarang, Bekasi West Java

Country :	Indonesia

Date of Incorporation :	10 March 1986

Legal Form :	Limited Liability Company

Line of Business :	Water Treatment Chemical Manufacturing Water Treatment Works and Consulting Services

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$ 1,730,000

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Name of Company

P.T. KURITA INDONESIA

Address

Head Office & Factory

Jalan Jababeka XII-A, Kav. V-6

Kawasan Industri Jababeka

Cikarang, Bekasi

West Java

Phones - (021) 8936245 (Hunting)

Fax - (021) 8935158-9

land Area - 15,500 sq. meters

Building Area - 7,600 sq. meters

Region - Industrial Estate

Status - Rent

Date of Incorporation

10 March 1986

Legal Form

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

Company Reg. No.

The Ministry of Justice and Human Rights

No. C2-7546.HT.01.04.TH.98

Dated 25 June 1998

Company Status

Foreign Investment Company (PMA)

Permit by the Government Department

a. The President of the Republic of Indonesia

No. B - 02/Pres/I/1986

Dated 20 January 1986

b. The Capital Investment Coordinating Board

- No. 02/I/PMA/1986

Dated 28 January 1986

- No. 1193/III/PMA/1999

Dated 10 September 1999

- No.08/II/PMA/2000

Dated 12 January 2000

Related Companies

KURITA WATER INDUSTIES Ltd., of Japan

ITOCHU Corporation of Japan

KURITA WATER TREATMENT Ltd., of Japan

ITOCHU FINE Chemical Corp., of Japan

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - US$. 1,000,000.-

Issued Capital - US$. 1,000,000.-

Paid up Capital - US$. 1,000,000.-

Shareholders/Owners :

a. KURITA WATER INDUSTRIES Ltd., of Japan - US$. 900,000

b. ITOCHU FINE Chemical Corp. of Japan - US$. 100,000

BUSINESS ACTIVITIES

Lines of Business:

a. Water Treatment Chemical Manufacturing

b. Water Treatment Works and Consulting Services

Production Capacity

a. Boiler water treatment chemicals - 780 tons p.a.

b. Cooling water treatment chemicals - 1,310 tons p.a.

c. Flocculation and Coagulation Chemicals - 280 tons p.a.

d. Cleaning Chemicals - 90 tons p.a.

e. Monobastic Sodium phosphates - 540 tons p.a

Total Investment

a. Equity Capital - US$ 1,000,000.-

b. Loan Capital - US$ 1,400,000.-

c. Total Investment - US$ 2,400,000.-

Started Operation

February 1987

Brand Name

KURITA

Technical Assistance

a. KURITA WATER INDUSTRIES Ltd., of Japan

b. ITOCHU FINE Chemical Corp. of Japan

Number of Employee

130 persons

Marketing Area

Domestic - 100%

Main Customer

P.T. Pupuk SRIWIDJAJA
P.T. Pupuk ISKANDAR MUDA
P.T. Pupuk KALIMANTAN TIMUR
P.T. PETROKIMIA GRESIK
P.T. CIKARANG LISTRINDO

Market Situation

Very Competitive

Main Competitors

a. P.T. BENING KHATULISTIWA

b. P.T. BETA PRAMESTI

c. P.T. WIJAYA KUSUMA EMINDO

d. P.T. INTERCHEMICO UTAMA

e. Etc.

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank MANDIRI Tbk.

Jalan MH. Thamrin No. 5

Jakarta Pusat

b. The Bank of Tokyo - Mitsubishi Ltd.

Midplaza Buiilding

Jalan Jend. Sudirman Kav. 10-11

Jakarta Selatan

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2004 – Rp. 90.0 billion

2005 – Rp. 110.0 billion

2006 – Rp. 128.0 billion

Net Profit :

2004 – Rp. 9.5 billion

2005 – Rp. 11.2 billion

2006 – Rp. 12.5 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Yoshihiro Ogawa

Director - Mr. Hiroyuki Takenaka

General Manager - Mr. M. Takamizo

Board of Commissioners :

Commissioner - Mr. Shinzo Kusube

Signatories :

President Director (Mr. Yoshihiro Ogawa) or Director (Mr. Hiroyuki Takenaka) 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$ 1,730,000.- on the 90 days of payments

OVERALL PERFOMANCE

P.T. KURITA INDONESIA (P.T. KI) was established in 1986 with an authorized capital of US$ 500,000.- entirely issued, of which US$ 50,000.- was paid up. The company was founded by P.T. SAPTA PANJI MANGGALA (45%) of Indonesia, KURITA WATER INDUSTRIES Ltd. (50%) and ITOCHU CORPORATION (5%), both of Japan, as the original shareholders. In March 1998 the company's authorized capital was increased to US$ 1,000,000.- wholly issued and paid up. In September 1999 P.T. SAPTA PANDJI MANGGALA withdrew and all its shares were taken over by KURITA WATER INDUSTRIES Ltd. and ITOCHU FINE Chemical Corp., both of Japan. But this latest revision of the company's notarial act has yet been legalized by the Department of Justice.

Initially P.T. KI is one of members of the WANANDI Group, a large sized company group of which the majority shares are controlled by the Wanandi family, because P.T. SAPTA PANDJI MANGGALA is a member of the WANANDI Group. However, since September 1999 P.T. KI became a Foreign Capital Investment (PMA) company of which the shares are wholly controlled by foreign companies namely KURITA WATER INDUSTRI Ltd (90%), ITOCHU Corporation (5%) and ITOCHU FINE CHEMICAL Corp (5%), all are from Japan.

In January 2000, ITOCHU Corp withdrew and its shares were controlled by its sister company ITOCHU FINE CHEMICAL Corp. The deed of amendment was made by Mrs. Lisa Aryani, SH., a public notary in Bekasi (West Java) under Company Registration Number C2-7546.HT.01.04.TH.98, dated June 25, 1998.

P.T. KI has been in operation since 1987 under foreign investment (PMA) facilities in the water treatment chemicals industry. The company plant was at first located at Jalan Pulo Lentut Kav. II E.4. Pulogadung Industrial Estate, East Jakarta, but since January 1997 the plant was relocated to Jalan Jababeka 12A, Kav. V-6, Jababeka Industrial Estate, Cikarang, Bekasi (West Java). The plant produces boiler water treatment chemicals, cooling water treatment chemicals, flocculation and coagulation chemicals, and cleaning chemicals.

In January 2000, P.T. KI obtained an expanding license issued by the Capital Investment Coordinating Board (BKPM) to deal with consulting services and water treatment construction implementer including the engineering technical services, installation, civil work, pipes and architecture as well as after sales maintenance. Total investment being absorbed by the expanded project reached US$ 1.0 million totally coming from own capital.

Mr. Hendra Wijaya, a staff of P.T. KI, said that whole water treatment chemical products are sold by P.T. LAUTAN LUAS Tbk, a public company being appointed as its distributor. The main customers include P.T. PUPUK SRIWIDJAJA, P.T. PUPUK ISKANDAR MUDA, P.T. PUPUK KALTIM, P.T. PETROKIMIA GRESIK, P.T. CIKARANG LISTRINDO and others. Besides, P.T. KI is directly involved in consulting services and the installation of water treatment construction equipments. The operation of the company has been running smoothly and gradually growing.

The economic crisis battering the country since mid 1997 elicited bad impact to P.T. KI on account of the sluggish demand for water treatment chemicals. However, since end 1999 the operation of the company started increasing in line with the amelioration of economic condition in the country. The long-term business prospect of the company is favorable once unstable economic condition in the country starts recovery.

Until this time P.T. KI 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. 90.0 billion increased to Rp. 110.0 billion in 2005 and to Rp. 128.0 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 12.5 billion and the company has an estimated total net worth at Rp. 80.0 billion. It is projected that total sales turnover of the company will increase at least 12% in 2007. We observe that P.T. KI 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 the company is headed by Mr. Yoshihiro Ogawa (59), a Japanese businessman with 27 years of experience in water treatment chemical industry. In his daily activities, he is assisted by Mr. Hiroyuki Tanenaka as director and Mr. M Takamizo as general manager both are from Japan. The management of the company has wide relation with overseas and national private businessmen as well as with the government sectors. So far, we have never heard of the management of the company having been involved in business malpractices or detrimental cases being settled in local district court.

We believed that P.T. KURITA INDONESIA is good for normal 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%)

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