MIRA INFORM REPORT

Report Date :

28.11.2008

IDENTIFICATION DETAILS

Name :	P.T. KOMOTECH INDONESIA
Registered Office :	Jalan Raya KIG Barat Kav. G No. 7, Kawasan Industri Gresik, Gresik 61121, East Jav
Country :	Indonesia
Date of Incorporation :	04.04.2002
Com. Reg. No.:	No. C-19075 HT.01.01.TH.2003
Legal Form :	Limited Liability Company
Line of Business :	Manufacturing of Plat Hard Facing

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$ 526,000
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

Name of Company

P.T. KOMOTECH INDONESIA

Address

Head Office

Jalan Raya KIG Barat Kav. G No. 7

Kawasan Industri Gresik

Gresik 61121

East Java

Indonesia

Phones - (62-31) 3986817, 3986818

Fax - (62-31) 3986814

E-mail - komotech@rad.net.id

Land Area - 10,000 sq. meters

Building Area - 8,500 sq. meters

Region - Industrial Zone

Status - Rent

Date of Incorporation

4 April 2002

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

No. C-19075 HT.01.01.TH.2003

Dated 13 August 2003

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Department of Finance

NPWP No. 02.115.679.9-612.001

The Capital Investment Coordinating Board

- No. 15/35/I/PMA/2002

Dated 26 March 2002

- No. 38/35/PMA/2003

Dated 28 May 2003

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : US$ 300,000.-

Issued Capital : US$ 150,000.-

Paid up Capital : US$ 150,000.-

Shareholders/Owners :

a. Mr. Lee Won Keun of South Korea - US$ 105,000.-

b. Mrs. Kim Hye Jin of South Korea - US$ 45,000.-

BUSINESS ACTIVITIES

Lines of Business:

Plat Hard Facing Manufacturing

Production Capacity :

a. Plat Hard Facing (Liner, Raw, Coal,

Cement Mill, Crusher, etc.,) - 72 tons p.a.

b. Recondition of Hard Facing - 180 tons p.a.

Total Investment :

a. Equity Capital - US$ 150,000.-

b. Loan Capital - US$ 150,000.-

c. Total Investment - US$ 300,000.-

Started Operation :

June 2002

Brand Name :

None

Technical Assistance :

Technology of South Korea

Number of Employee :

110 persons

Marketing Area :

Local - 95%

Export - 5%

Main Customer :

a. P.T. TAMBANG BATU BARA BUKIT ASAM Tbk

b. P.T. BERAU COAL

c. P.T. PAITON ENERGY

d. P.T. PLN Tbk

e. P.T. SEMEN GRESIK Tbk

Market Situation :

Very Competitive

Main Competitor :

P.T. ARTAWA INDONESIA

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank MANDIRI Tbk

Jalan Jend. Basuki Rachmat 128

Surabaya, East Java

Indonesia

b. P.T. Bank MEGA Tbk

Jalan Raya Gresik

Gresik, East Java

Indonesia

c. P.T. Bank PERMATA Tbk

Jalan Raya Gresik

Gresik, East Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2005 – Rp. 53.5 billion

2006 – Rp. 54.5 billion

2007 – Rp. 55.6 billion

2008 – Rp. 28.5 billion (January-June)

Net Profit (estimated) :

2005 – Rp. 3.7 billion

2006 – Rp. 3.8 billion

2007 – Rp. 3.9 billion

2008 – Rp. 2.0 billion (January-June)

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Lee Won Keun

Board of Commissioners :

Commissioner - Mrs. Kim Hye Jin

Signatories :

Director (Mr. Lee Won Keun) which must be approved by Board of Commissioner.

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$ 526,000 on 90 days D/A

OVERALL PERFOMANCE

P.T. KOMOTECH INDONESIA (P.T. KI) was established in Gresik, East Java, on April 4, 2002 with the authorized capital of US$ 300,000 entirely issued and paid up. The founding shareholders of the company are Mr. Lee Won Keun and his wife Mrs. Kim Hye Jin of South Korea. The company notary deed has been changed and in June 2003 the issued capital was decreased to US$ 150,000 of which paid up. The deed of amendment was made by Mr. Soehartono, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. C-19075 HT.01.01.TH.2003, dated August 13, 2003.

P.T. KI was established in the frame works of Foreign Investment (PMA) facility to deal with manufacture of hard faced wear plated and hard facing application (liner, raw, coal, cement, mill, crusher, etc). The plant is located at Jalan Raya KIG Barat Kav. G No. 7, Kawasan Industri Gresik, Gresik, East Java on a land of some 10,000 sq. meters. The company has been in operation since June 2002 by produces of plat hard facing of 72 tons and recondition of hard facing of 180 tons per annum respectively. The construction of the plant has absorbed an investment of US$ 300,000 come from owned capital of US$ 150,000 and the rest from loans.

Mr. Fathony Wijaya, the executive marketing staff of the company explained some 95% of the products is marketed locally to various industrial such as cement industry, coal mining, sugar refinery, power plant, tin mining and processing and the rest 5% re-exporting to Malaysia. The customers of the company are P.T. PLN Tbk, P.T. INDONESIA POWER, P.T. PAITON ENERGY, P.T. SEMEN GRESIK Tbk, P.T. SEMEN PADANG, P.T. SEMEN TONASA, P.T. HOLCHIM INDONESIA Tbk, P.T. INDOCEMENT TUNGGAL PRAKARSA Tbk, P.T. TAMBANG BATUBARA BUKIT ASAM Tbk, P.T. BERAU COAL, P.T. PETROKIMIA GRESIK, P.T. RAJAWALI NUSANTARA INDONESIA dealing with sugar refinery (RNI Group) and others. We observe that the operation of the company had been running smoothly and developing well in the last three years.

Generally outlook we find the demand for technical goods and engineering services has been rising by 6% to 8% per year in the last five years, in line with the growth of industrial sectors like chemical, textile, cement, natural oil industries, etc. The demand for the industrial pump will be rising by 6% in the next five years. The products are largely imported and the prices increased sharply while the purchasing power dropped down. Competition is very tight due to a lot of similar imported products are offered in the market. Business position of P.T. KI remains quite good for it has already controlled wide marketing chains in many major cities in the country.

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 2005 amounted to Rp. 53.5 billion rose to Rp. 54.5 billion in 2006 increased to Rp. 55.6 billion in 2007. We estimated the sales turnover as from January to June 2008 amounted to Rp. 28.5 billion with a net profit of Rp. 2.0 billion. The total sales turnover its projected to go on rising by at least 5% in 2009. The company has an estimated total networth of at least Rp. 12.5 billion. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

The management of P.T. KI is led by Mr. Lee Won Keun (47) a businessman and professional manager of South Korea with experience in plat hard facing manufacturing. The management is handled by experienced staff in this business, having maintained a wide business relation with private businessmen at home and abroad as well as with government sectors. 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. P.T. KOMOTECH INDONESIA 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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.84
UK Pound	1	Rs.76.81
Euro	1	Rs.64.38

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