MIRA INFORM REPORT

Report Date :

14.03.2012

IDENTIFICATION DETAILS

Name :	P.T. ASTIKA SAMBO HAIR INTERNATIONAL

Registered Office :	Jalan Raya Ciampea Km. 11, Bogor, 16620, West Java

Country :	Indonesia

Date of Incorporation :	08.10.1991

Com. Reg. No.:	No. AHU-68319.AH.01.02.TH.2008

Legal Form :	Limited Liability Company

Line of Business :	Wig Manufacturing

No. of Employees :	500

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$ 118,400
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 – September 30^th, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Indonesia

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. ASTIKA SAMBO HAIR INTERNATIONAL

company Address

Head Office & Factory

Jalan Raya Ciampea Km. 11

Bogor, 16620

West Java

Indonesia

Phones - (62-251) 862 2136, 862 2086

Fax - (62-251) 862 3322

E-mail - sambohair@yahoo.com

Land Area - 8,000 sq. meters

Building Space - 5,500 sq. meters

Region - Industrial Zone

Status - Rent

Date of Incorporation

8 October 1991

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

- No. W8-HT.01.04-1483

Dated 10 July 2007

- No. AHU-68319.AH.01.02.TH.2008

Dated 23 September 2008

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Department of Finance

NPWP No. 01.536.106.6-404.000

The Department of Industry

No. 169/T/Industri/2001

Dated 17 April 2001

The Capital Investment Coordinating Board

- No. 38/V/PMA/1997

Dated 17 June 1997

- No. 522/III/PMA/1999

Dated 7 May 1999

- No. 487/III/PMA/2000

Dated 10 April 2000

- No. 1319/III/PMA/2001

Dated 1 October 2001

- No. 391/III/PMA/2003

Dated 11 April 2003

Related Company

None

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 550,000,000.-

Issued Capital : Rp. 550,000,000.-

Paid up Capital : Rp. 550,000,000.-

Shareholders/Owners :

a. Mr. Soung Jun Lee - Rp. 525,000,000.-

Address : Jl. Puri Pangeran No. 26 IGE, RT. 001 RW. 008

Desa Cijayanti, Kec. Babakan Madang

Bogor, West Java

Indonesia

b. Mrs. Sook Bun Lee - Rp. 25,000,000.-

Address : Rafles Hill Block E-9 No. 10

Kel. Harjamukti, Kec. Cimanggis

Depok, West Java

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Wig Manufacturing

Production Capacity :

Wig/Customs - 172,800 pieces p.a.

Total Investment :

a. Equity Capital - Rp. 550.0 million

b. Loan Capital - None

c. Total Investment - Rp. 550.0 million

Started Operation :

1991

Brand Name :

Astika Sambo Hair International

Technical Assistance :

None

Number of Employee :

500 persons

Marketing Area :

Export - 100%

Main Customer :

Buyers in Europe Union, the USA and Asia

Market Situation :

Very Competitive

Main Competitors :

a. P.T. CITRA KREASI MEGAH

b. P.T. HAIR STAR INDONESIA

c. P.T. INDOKORES SAHABAT

d. P.T. SUN STARINDO WIRAHUSADA

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank KEB INDONESIA

Wisma GKBI 20^th Floor

Jalan Jend. Sudirman No. 28

Jakarta Pusat

Indonesia

b. P.T. Bank WOORI INDONESIA

Indonesia Stock Exchange Building Tower 1

Jalan Jend. Sudirman Kav. 52-53

Jakarta Selatan, 12190

Indonesia

c. P.T. Bank MANDIRI Tbk

Jalan Kapten Muslihat No. 17

Bogor, West Java

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2009 – Rp. 7.2 billion

2010 – Rp. 8.1 billion

2011 – Rp. 9.0 billion

Net Profit (estimated) :

2009 – Rp. 0.6 billion

2010 – Rp. 0.7 billion

2011 – Rp. 0.8 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Soung Jun Lee

Board of Commissioners :

Commissioner - Mrs. Sook Bun Lee

Signatories :

Director (Mr. Soung Jun Lee) 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$ 118,400 on 90 days D/A

OVERALL PERFORMANCE

P.T. ASTIKA SAMBO HAIR INTERNATIONAL (P.T. ASHI) was incorporated in Bogor, West Java based on notary deed of Mrs. Lanny Hartono, SH., No. 31 dated 8 October 1991 with the authorized capital of Rp. 550,000,000 wholly issued and paid up. The founding shareholders of the company are Mr. Soung Jung Lee and his wife Mrs. Sook Bun Lee, both are South Korean business family. The company notary deed has frequently been amendments and according to the latest revision of notary documents of Mrs. Lanny Lestari, SH., No. 16 dated 7 August 2008 the board of director and the board of commissioner reappointed to lead and runs of the company’s operation. However the capitalization structure and shareholders composition remained the same. The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-68319.AH.01.02.TH.2008 dated September 23, 2008.

P.T. ASHI obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with wig manufacturing. The plant is located at Jalan Raya Ciampea Km. 11, Bogor, West Java standing on 8,000 sq. meters of lands. The plant has been operating since 1991 by produces of wig/custom 172,800 pieces per annum with an investment of Rp. 550.0 million originally come from owned capital. P.T. ASHI type of products are Hair Extension with V-Type, Flat-Type and I-Type; Weft Hair with Pu-Skin and Hand – Tied; Wavy/Curly Texture with Natural Straight, Slightly Straight, Body Wavy, Medium Wavy, Tight Wavy and Medium Curly; and Toupee with Regular Custom Unit, Hollywood Front Lace Unit and Micro Thin Skin Unit. P.T. ASHI produces 100% Remy Hair Pre-bonded Extension, PU Skin Weft Hair, Single machine-made Weft Hair, Hand-tied Weft hair, Custom Wigs for Men & Women, 100% Remy D / D Indian Hair. The whole product is exported to Europe Union, the USA and Asian countries. We observe the operation of P.T. ASHI is classified a small size company of its kinds which operation has been growing slowly in the last three years.

In general, we note that the demand for hairpieces and wigs continue to rise in the last five years in line with the increasing demand of international market. It is estimated demand for the hairpieces and wigs will still increase by about 5% to 7% in three years to come. Meanwhile competition in this business is very tight because a lot of similar companies operating within the country. Besides production costs also rose due to rising imported raw material prices, rising electricity tariffs and other resources. Business position of P.T. ASHI still considered good enough because all of its production for the export market.

Until this time P.T. ASHI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. ASHI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2009 amounted to Rp. 7.2 billion rose to Rp. 8.1 billion in 2010 increased to Rp. 9.0 billion in 2011 and projected to go on rising by at least 4% in 2012. The operation in 2011 yielded an estimated net profit of at least Rp. 0.8 billion and the company has an estimated total net worth of at least Rp. 2.2 billion. We observe that P.T. ASHI 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. ASHI is led by Mr. Soung Jun Lee (59) a businessman and professional manager of South Korea with experience in wig/custom manufacturing and trading. 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. ASTIKA SAMBO HAIR INTERNATIONAL is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.85
UK Pound	1	Rs.77.97
Euro	1	Rs.65.62

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.