MIRA INFORM REPORT

Report Date :

28.02.2011

IDENTIFICATION DETAILS

Name :	P.T. PRICOL SURYA
Registered Office :	Kawasan Industri KIIC, Jalan Permata Raya Lot FF-2, Karawang 41361, West Java
Country :	Indonesia
Date of Incorporation :	01.12.2005
Com. Reg. No.:	No. AHU-AH.01.10-01407
Legal Form :	Limited Liability Company
Line of Business :	Motorcar and Motorcycle Component Manufacturing

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	US$ 1,500,000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
Indonesia	b1	b1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Name of Company

P.T. PRICOL SURYA

company Address

Head Office & Factory

Kawasan Industri KIIC

Jalan Permata Raya Lot FF-2

Karawang 41361

West Java

Indonesia

Phones - (62-21) 89119471-73

Fax - (62-21) 89119474

Land Area - 7,000 sq. meters

Office Space - 5,800 sq. meters

Region - Industrial Estate

Status - Owned

Date of Incorporation

1 December 2005

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

- No. C-34667 HT.01.01.TH.2005

Dated 28 December 2005

- No. AHU-AH.01.10-01407

Dated 14 January 2011

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Department of Finance

NPWP No. 02.519.815.1-408.001

The Capital Investment Coordinating Board

- No. 1141/I/PMA/2005

Dated 13 October 2005

- No. 110/III/PMA/2007

Dated 26 January 2007

- No. 17/B.1/A.8/2007

Dated 7 January 2007

Related Company

PRICOL HOLDINGS LIMITED, India

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : US$ 1,500,000.-

Issued Capital : US$ 1,500,000.-

Paid up Capital : US$ 1,500,000.-

Shareholders/Owners :

a. PRICOL LIMITED - US$ 1,499,000.-

Address : 1087-A, Avanashi Road

Coimbatore 641 037

India

b. PRICOL HOLDINGS LIMITED - US$ 1,000.-

Address : 1087-A, Avanashi Road

Coimbatore 641 037

India

BUSINESS ACTIVITIES

Lines of Business :

Motorcar and Motorcycle Component Manufacturing

Production Capacity :

a. Instrument Cluster - 2,135,000 pieces p.a.

b. Oil Pumps - 2,000,000 pieces p.a.

c. Fuel Sensors - 2,000,000 pieces p.a.

d. Chain Tensioner - 1,000,000 pieces p.a.

e. Auto Fuel Cook - 600,000 pieces p.a.

Total Investment :

a. Equity Capital - US$ 1.5 million

b. Loan Capital - US$ 3.5 million

c. Total Investment - US$ 5.0 million

Started Operation :

11 April 2007 Commercial Operation

Brand Name :

Pricol Surya

Technical Assistance :

Pricol Limited, India

Number of Employee :

173 persons

Marketing Area :

Local - 100%

Main Customer :

Automotive and Motorcycle Assembling Industry

Market Situation :

Very Competitive

Main Competitors :

a. P.T. ARTIMA INDUSTRY INDONESIA

b. P.T. CHEMCO HARAPAN NUSANTARA

c. P.T. DHARMA POLIMETAL

d. P.T. SHINDENGAN INDONESIA

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank INTERNATIONAL INDONESIA Tbk

Plaza BII

Jalan M.H. Thamrin No. 50-51

Jakarta Pusat

Indonesia

b. Hongkong and Shanghai Banking Corp. Ltd.

World Trade Centre

Jalan Jend. Sudirman Kav. 29-31

Jakarta Selatan

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 128.0 billion

2009 – Rp. 135.0 billion

2010 – Rp. 142.0 billion

Net Profit (estimated) :

2008 – Rp. 8.5 billion

2009 – Rp. 9.2 billion

2010 – Rp. 10.5 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Magge Ramanathan Anil Kumar

Directors - a. Mr. Krishnan Kutty Udhaya Kumar

b. Mr. Venkatraman Ramakrishnan

Board of Commissioners :

Commissioner - Mr. Damotharan Vijay Mohan

Signatories :

President Director (Mr. Magge Ramanathan Anil Kumar) or one the Directors (Mr. Krishnan Kutty Udhaya Kumar or Mr. Venkatraman Ramakrishnan) 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$ 1,500,000 on 90 days D/A

OVERALL PERFORMANCE

P.T. PRICOL SURYA (P.T. PS) was incorporated in Karawang, West Java with an authorized capital of US$ 1,500,000 wholly issued and paid up. The founding shareholders of the company are PRICOL LIMITED (99.93%) and PRICOL FINANCE LIMITED (0.07%), both are private company of India. The company notary deed has been changed a couple of times. In May 2005, PRICOL FINANCE LIMITED pulled out and replaced by PRICOL HOLDINGS LIMITED of India as new shareholder. With this time the composition of its shareholders has been changed to become PRICOL LIMITED (99.99%) and PRICOL HOLDINGS LIMITED (0.01%). The latest in December 2010 the board of directors and the board of commissioner of the company has been changed (see profile of this report). The latest revision of notary documents was made by Mr. Tafieldi Nevawan, SH., a public notary in Karawang, West Java and was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-01407 dated January 14, 2011.

P.T. PS obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with automotive and motorcycle components and parts manufacturing. Its plant is located on KIIC Industrial Park, Jalan Permata Raya Lot FF-2, Karawang, West Java on a land of 7,000 square meters. The plant has been commenced in operation since April 2007 producing and selling motorcar and motorcycle component and parts for two and four wheel motor vehicles. The plant annually produces 2,135,000 pieces of instrument cluster, 2,000,000 pieces of oil pumps, 2,000,000 pieces of fuel sensors, 1,000,000 of chain tensioner, and 600,000 pieces of auto fuel cock respectively per annum for two and four-wheel motor vehicles. The development of the plant is estimated to have absorbed an investment of US$ 5.0 million coming from own capital of US$ 1.5 million and the rest from loans. The supporting materials for producing automotive components and parts are still imported from India.

Whole products of the company are locally marketed especially to P.T. ASTRA HONDA MOTOR, P.T. BAJAJ AUTO INDONESIA, P.T. TVS MOTOR INDONESIA, P.T. KAWASAKI MOTOR INDONESIA, P.T. INDOMOBIL SUZUKI INTERNATIONAL, P.T. YAMAHA MOTOR MANUFACTURING INDONESIA, P.T. HONDA PROSPECT MOTOR etc. The operation of P.T. PS has been growing in the last three years.

Generally, demand for motorcar, motorcycles and components and spare parts of motorcycles has kept on increasing in line with the development of the production of motorcycles in the country. One of factors supporting the growing demand for motorcycles is the role of financial and banking institutions seriously backing up the motorcycle & motorcar purchasing with installment system. With a little Down Payment (DP), the public can obtain the motorcar and motorcycles. The competition is very tight on account of many motorcycles and motorcar producers operating in the country including Chinese motorcycles offered with cheaper prices. However, Japanese motorcycles still dominate the local motorcycle markets like HONDA controls 60% of the market segment, SUZUKI (19%), YAMAHA (16%), KAWASAKI (2%) and others 3%. The development of motorcycle production in the country in detail is as illustrated in the following table :

Indonesia’s Production and Wholesales of Motorcycle, 2005-2010*

Year	Production (AISI) (Units)	Wholesales (Units)
2005	5,113,487	5,089,426
2006	4,459,000	4,470,722
2007	4,722,000	4,713,895
2008	6,264,265	6,280,799
2009	5,884,000	5,882,000
2010*	5,600,000	5,650,000

Indonesia’s Wholesales of Motorcar, 2005-2010*

Year	Production (AISI) (Units)	Wholesales (Units)
2005	500,710	534,000
2006	296,008	319,000
2007	411,638	433,000
2008	600,628	604,000
2009	464,816	483,000
2010*	500,000	720,000

*) Projected, Source: AISI

Until this time P.T. PS has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. PS is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2008 amounted to Rp. 128.0 billion rose to Rp. 135.0 billion in 2009 increased to Rp. 142.0 billion in 2010 and projected to go on rising by at least 5% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 10.5 billion and the company has an estimated total networth of at least Rp. 29.0 billion. We observe that P.T. PS is supported by foreign partner with has financially strong and sound behind it. So far, we did not heard 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. PS is led by Mr. Magge Ramanathan Anil Kumar (47) a professional manager with experience in automotive and motorcycle component manufacturing. In daily activity he is assisted by Mr. Krishnan Kutty Udhaya Kumar (60) and Mr. Venkatraman Ramakrishnan (55) as directors. The company's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. PRICOL SURYA is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.37
UK Pound	1	Rs.73.25
Euro	1	Rs.62.68

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	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

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.