MIRA INFORM REPORT

Report Date :

24.01.2011

IDENTIFICATION DETAILS

Correct Name :	P.T. CANANG INDAH INDUSTRI PATICLE BOARD
Registered Office :	Jl. Prof. H.M. Yamin, SH. No. 46, Medan 20234, North Sumatra
Country :	Indonesia
Date of Incorporation :	10.07.1990
Com. Reg. No.:	No. AHU-AH.01.10-10813
Legal Form :	Limited Liability Company
Line of Business :	Particle Board and Medium Density Fiber (MDF) Board Manufacturing

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$ 9,160,000
Status :	Satisfactory
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

Full Name of Company

P.T. CANANG INDAH INDUSTRI PATICLE BOARD

company Address

Head Office

Jl. Prof. H.M. Yamin, SH. No. 46

Medan 20234, North Sumatra

Indonesia

Phones - (62-61) 4560571 (hunting), 4560573, 4525799

Fax - (62-61) 4524422, 4560574

Email - info@tjipta.com

Website - http://www.tjipta.com

Building Area - 4 storey

Office Space - 260 sq. meters

Region - Commercial

Status - Owned

Factory

Jl. PLTU Pulau Sicanang Belawan

Medan Belawan

North Sumatra

Indonesia

Land Area - 5.6 hectares

Building Space - 1.2 hectares

Region - Industrial Zone

Status - Owned

Date of Incorporation

10 July 1990

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

a. No. AHU-46589.AH.01.02.Tahun 2009

Dated 28 September 2009

b. No. AHU-AH.01.10-10813

Dated 05 May 2010

Company Status

Foreign Investment Company (PMA)

Permit by the Government Department

The Department of Finance

NPWP No. 01.516.703.4-112.000

Related Companies

a. P.T. TJIPTA RIMBA DJAYA (Plywood Manufacturing)

b. P.T. CIPTA PRIMA (Doorblank Manufacturing)

c. PATELLE ENTERPRISE Ltd., (Investment Holding)

d. ELBEST INVESTMENT Pte. Ltd., (Investment Holding)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 100,000,000,000.-

Issued Capital - Rp. 100,000,000,000.-

Paid up Capital - Rp. 100,000,000,000.-

Shareholders/Owners :

Foreign Partners

a. PATELLE ENTERPRISE Ltd. - Rp. 80,000,000,000.- (80.00%)

b. ALBEST INVESTMENT Pte. Ltd. - Rp. 10,000,000,000.- (10.00%)

Local Partners

a. Mr. Jandri Citra aka Jandri CitraOng - Rp. 2,500,000,000.- ( 2.50%)

b. Mr. Ong Tat Beng - Rp. 2,500,000,000.- ( 2.50%)

c. Mr. Suryawan Anwar - Rp. 1,250,000,000.- ( 1.25%)

d. Mr. Ariawan Anwar - Rp. 1,250,000,000.- ( 1.25%)

e. Mr. Dr. Zulkifli Halim - Rp. 2,500,000,000.- ( 2.50%)

BUSINESS ACTIVITIES

Lines of Business :

Particle Board and Medium Density Fiber (MDF) Board Manufacturing

Production Capacity :

a. Particle Boards - 240,000 cu. meters p.a.

b. MDF Board - 360,000 cu. meters p.a.

Total Investment :

None

Started Operation :

1991

Brand Name :

CANANG INDAH

Technical Assistance :

None

Number of Employee :

1,220 persons

Marketing Area :

Local - 100%

Main Customers :

a. Individuals

b. Public Listed Companies

Market Situation :

Very Competitive

Main Competitors :

a. PT. Sumatera Prima Fibreboard

b. PT. Hijau Lestari Raya Fibreboard

c. PT. Parindo Permai

d. PT. Rimba Partikel Indonesia

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. Hongkong and Shanghai Bank Corp. (HSBC)

Wisma HSBC

Jl. Diponegoro No. 11

Medan North Sumatra

Indonesia

b. P.T. Bank DANAMON Tbk

Wisma Danamon

Jl. Putri Hijau No. 2

Medan, North Sumatra

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Total Revenue (estimated) :

2007 – Rp. 470.0 billion

2008 – Rp. 520.0 billion

2009 – Rp. 590.0 billion

2010 – Rp. 660.0 billion

Net Profit (estimated):

2007 – Rp. 23.0 billion

2008 – Rp. 26.0 billion

2009 – Rp. 29.5 billion

2010 – Rp. 34.0 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Jandri Citra aka Jandri CitraOng

Directors - a. Mr. Ng Bie Tiong

b. Mr. Nurdin, SE.

Board of Commissioners :

President Commissioner - Mr. Suryawan Anwar

Commissioner - Mr. Eddy Luna aka Edy Luna

Signatories :

President Director (Mr. Jandri Citra) or one of Directors (Mr. Ng Bie Tiong or Mr. Nurdin, SE.) which must be approved by Board of Commissioners (Mr. Suryawan Anwar and Mr. Eddy Luna)

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

Credit Risk :

Below average

Credit Recommendation :

Credit can be proceeded normally

Proposed Credit Limit :

Moderate amount

Maximum Credit Limit :

US$ 9,160,000 on the 90 days of payments

OVERALL PERFORMANCE

Originally named P.T. SICANANG INDAH INDUSTRI PARTICLE BOARD, it was established in Medan in July 1990 with an authorized capital of Rp. 20,000,000,000 of which Rp. 5,000,000,000.- was issued and fully paid up. The founding shareholders of the company are Mr. Ripin Tjitra, Mr. Cipta Citra, Mr. Buyung Tjioe, Mr. Suhardiman Tjitra, Mr. Suwarno Tjitra and Mr. Suwan Citroen. They are Indonesian businessmen of Chinese extraction. The company's notarial act was since revised a number of times. In October 1990, the company’s name was changed to P.T. CANANG INDAH INDUSTRI PARTICLE BOARD, abbreviated PT. CANANG INDAH. The company's notarial act was since revised a number of times. In March 2001, the founding shareholders pulled out and the whole shares are sold to Mr. Jandri Citra aka jandri Citra Ong, Mr. Suryawan Anwar, Mr. Artawan Anwar, Dr. Zulkifli Halim and three foreign companies Patelle Enterprise Ltd., of British Virgin Island, Elbest Investent Ptd., Ltd., and Abram Investent Pte. Ltd., both are of Singapore.

Latest in March 2009, the authorized capital was raised to Rp. 100,000,000,000.- entirely was issued and fully paid up. Since that time, shareholders of the company are Patelle Enterprise Ltd., of British Virgin Island (80%), Albest Investment Pte. Ltd., of Singapore (10%), Mr. Jandri Citra (2.50%), Mr. Ong Tat Beng (2.50%), Mr.Suryawan Anwar (1.25%), Mr. Ariawan Anwar (1.25%) and Dr. Zulkifli Halim (2.50%). The latest deed of amendment was made by Mrs. Yanty Sulaiman Sihotang, SH, a public notary in Medan under Company Registration No. AHU-46589.AH.01.02.Tahun 2009 dated 28 September 2009 and No. AHU-AH.01.10-10813 dated 05 May 2010. No changes have been effected in term of its shareholding composition and capital structures to date.

P.T. CANANG INDAH obtained license from Indonesian Investment Coordinating Board for dealing with particle board and medium density fiber board (MDF) manufacturing by managing a plant located at Jalan PLTU Pulau Sicanang Belawan, North Sumatra standing on 5.6 hectares land operating as from 1991. The company’s particleboard is made with wood panel products consisting of discrete wood particle of various size that are bonded together with synthetic resin or binder under heat and pressure. And the company’s medium density fiberboard (MDF) is a wood based sheet material made from wood fiber bonded with synthetic resin adhesive. Miss Dewi, a marketing staff of P.T. CANANG INDAH explained that Some 60% of her company products is exported to various countries including South Korea, Middle East, Philippine, Vietnam, China, India and others, and the rest 40% is marketed locally to furniture manufacturing companies through out Indonesian major cities. We observe that P.T. CANANG INDAH is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.

Generally, demand for processed wood including medium density fiber (MDF) has been fluctuating in the last five years in line with the fluctuating export and domestic markets. It is estimated that the demand will kept on rising in the coming two-three years. Meanwhile, the competition is very tight on account of lots of similar companies operating in the country. P.T. CANANG INDAH's business position is good because its products brand has been quite popular on the domestic market.

Until this time P.T. CANANG INDAH has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. SPF is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2007 amounted to Rp. 470.0 billion rose to Rp. 520.0 billion in 2008 increased to Rp. 590.0 billion in 2009 and estimated rising again to Rp. 660.0 billion in 2010. The operation in 2009 yielded an estimated net profit of Rp. 29.5 billion rose to Rp. 34.0 billion in 2010 and the company has an estimated total networth of at least Rp. 450.0 billion. We observe that P.T. CANANG INDAH 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. CANANG INDAH is led by Mr. Jandri Citra aka Jandri Citra Ong (47) a businessman and professional manager of the TJIPTA Group with experience in particle board and medium density fiberboard manufacturing and trading. In daily activities, he is assisted by Mr. Ng Bie Tiong (48) and Mr. Nurdin, SE. (48), both are as directors. Beside, the company's management is handled by professional manager 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. CANANG is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.70
UK Pound	1	Rs.72.78
Euro	1	Rs.61.65

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.