MIRA INFORM REPORT

Report Date :

08.01.2011

IDENTIFICATION DETAILS

Name :	P.T. RIKEN OF ASIA
Registered Office :	Jalan Kebon Sirih No. 96 X, Jakarta Pusat, 10340
Country :	Indonesia
Date of Incorporation :	10.08.2009
Com. Reg. No.:	No. AHU-AH.01.10-17613
Legal Form :	Limited Liability Company
Line of Business :	Trading, Export Import of Automotive and Motorcycle Component and Parts

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	US$ 183,000
Status :	New Company
Payment Behaviour :	No Complaints
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. RIKEN OF ASIA

company Address

Head Office

Jalan Kebon Sirih No. 96 X

Jakarta Pusat, 10340

Indonesia

Phones - (62-21) 3860750 (Hunting)

Fax - (62-21) 3860751

Building Area - 2 storey

Office Space - 120 sq. meters

Region - Commercial

Status - Rent

Date of Incorporation

10 August 2009

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

- No. AHU-46995.AH.01.01.TH.2009

Dated 30 September 2009

- No. AHU-AH.01.10-17613

Dated 13 July 2010

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Department of Finance

Not Available

The Capital Investment Coordinating Board

No. 892/I/PMA/2009

Dated 28 July 2009

Related Company

P.T. PAKARTI RIKEN INDONESIA (Automotive Component Manufacturing)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : US$ 300,000.-

Issued Capital : US$ 200,000.-

Paid up Capital : US$ 200,000.-

Shareholders/Owners :

a. RIKEN CORPORATION - US$ 180,000.-

Address : 13-5, Kudankita I – chome,

Chiyoda-ku, Tokyo

Japan

b. Mr. Noritada Okano - US$ 20,000.-

Address : 605 Kusumo Kamagaya II

663 Awano, Kamagaya City, Ciba

Japan

BUSINESS ACTIVITIES

Lines of Business :

Trading, Export Import of Automotive and Motorcycle Component and Parts

Production Capacity :

a. Distribution of Automotive Component - US$ 13,940,000.-

b. Export of Automotive Component - US$ 200,000.-

c. Import of Automotive Component - US$ 13,920,000.-

Total Investment :

a. Equity Capital - US$ 200,000.-

b. Loan Capital - US$ 300,000.-

c. Total Investment - US$ 500,000.-

Started Operation :

October 2009

Brand Name :

Riken of Asia

Technical Assistance :

Riken Corporation, Japan

Number of Employee :

12 persons

Marketing Area :

Local - 100%

Main Customer :

P.T. PAKARTI RIKEN INDONESIA

Market Situation :

Very Competitive

Main Competitors :

a. P.T. ASTRA AUTOPARTS Tbk

b. P.T. ASTRA KOMPONENT INDONESIA

c. P.T. AUTOTECH INDONESIA

d. P.T. DENSO INDONESIA

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker:

P.T. Bank DANAMON INDONESIA Tbk

Jalan Kebon Sirih No. 120

Jakarta Pusat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2009 – Rp. 5.0 billion (October – December)

2010 – Rp. 15.0 billion

Net Profit (estimated) :

2009 – None

2010 – Rp. 1.5 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Hidenori Kobayashi

Vice President Director - Mr. Toru Suzuki

Director - Mr. Kenichi Aruga

Board of Commissioners :

President Commissioner - Mr. Noritada Okano

Commissioners - a. Mr. Noboru Nakatani

b. Mr. Takashi Fuji

Signatories :

President Director (Mr. Hidenori Kobayashi) or Vice President Director (Mr. Toru Suzuki) or the Director (Mr. Kenichi Aruga) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability :

Satisfactory

Business Morality :

Satisfactory

Credit Risk :

Average

Credit Recommendation :

Credit should be proceeded with monitor

Proposed Credit Limit :

Small amount – periodical review

Maximum Credit Limit :

US$ 183,000 on 90 days D/A

OVERALL PERFORMANCE

P.T. RIKEN OF ASIA (P.T. ROA) was established in Jakarta on August 10, 2009 with the authorized capital of US$ 300,000 issued capital of US$ 200,000 entirely paid up. The company was founded by RIKEN CORPORATION of Japan (90%) and Mr. Noritada Okano (10%), a businessman of Japan. The company notary deed has been changed and in June 2010 the board of director and the board of commissioner had been changed (see profile of this report). The latest revision of company notary act was made by Mr. Gunawan Budilaksono, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-17613, dated July 13, 2010.

We observe RIKEN CORPORATION, is a private company in Japan which also hold business stakes in P.T. PAKARTI RIKEN INDONESIA which engaged in automotive and motorcycle component manufacturing.

P.T. ROA was established in the frame work of Foreign Investment (PMA) Company to deal with trading, export import of automotive and motorcycle component and parts. The whole automotive and motorcycle component and parts sell by the company such as piston rings, seal rings for automobiles and two-wheeled vehicle, industrial machines, various kinds of products, cast iron material and products.

The whole merchandise goods is imported from Thailand, India, Taiwan, China, America and Japan. The whole products supplied to P.T. PAKARTI RIKEN INDONESIA, P.T. GEMALA KEMPA DAYA, distributor and other shops of automotive & motorcycle component which operating in Jakarta and other cities in the country. Besides, some of the automotive and motorcycle components products made in Indonesia is also exported based on order basis from their clients in abroad. But at present the company just imports and distribution of automotive and motorcycles components which import from China, India, Taiwan, Thailand and Japan. We observe the operation of P.T. ROA has been developing well in the last two years.

Generally, demand for motorcar and motorcycles and components and spare parts of motorcycles has kept on increasing in line with the development of the production of motorcar and 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 purchasing with installment system. With a little Down Payment (DP), the public can obtain the motorcycles. The competition is very tight on account of many motorcycle 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. ROA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. ROA is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in the first year operation as from October to December 2009 amounted to Rp. 5.0 billion rose to Rp. 15.0 billion in 2010 and projected to go on rising by at least 6% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 1.5 billion and the company has an estimated total networth of at least Rp. 5.0 billion. We observe that P.T. ROA 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. ROA is led by Mr. Hidenori Kobayashi (48) a professional manager of Japan with experience in trading, import and distribution of automotive and motorcycle component and parts. Daily activity he is assisted by Mr. Toru Suzuki (49) as Vice President Director and Mr. Kenichi Aruga (53) as Director, both are professional managers of Japan. 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. RIKEN OF ASIA is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.37
UK Pound	1	Rs.70.38
Euro	1	Rs.58.93

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
----	NB	New Business	----

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