MIRA INFORM REPORT

Report Date :

20.11.2014

IDENTIFICATION DETAILS

Name :	P.T. ADVANCE STABILINDO INDUSTRY
Registered Office :	MM2100 Industrial Town, Jalan Sulawesi III Block M-29, Gandamekar, Cikarang Barat, Bekasi, 17520, West Java
Country :	Indonesia
Date of Incorporation :	09.12.1994
Com. Reg. No.:	AHU-50675.AH.01.02.TH.2013
Legal Form :	Limited Liability Company
Line of Business :	Manufacturer of Methyltin Stabilizer, Plastic Additives and Compound
No of Employees :	110

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

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Indonesia	B1	A2

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

INDONESIA - ECONOMIC OVERVIEW

Indonesia, a vast polyglot nation, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

Source : CIA

BASIC SEARCH

Name of Company :

P.T. ADVANCE STABILINDO INDUSTRY

Address :

Head Office & Factory

MM2100 Industrial Town

Jalan Sulawesi III Block M-29

Gandamekar, Cikarang Barat

Bekasi, 17520

West Java

Indonesia

Phones - (62-21) 898 0935 (Hunting)

Fax - (62-21) 898 0405

Land Area - 7,000 sq. meters

Building Space - 5,000 sq. meters

Region - Industrial Estate

Status - Owned

Date of Incorporation :

9 December 1994

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-8797 HT.01.01.TH.95

Dated 19 July 1995

- No. AHU-50675.AH.01.02.TH.2013

Dated 2 October 2013

Company Status :

National Private and Domestic Investment (PMDN) Company

Permit by the Government Department :

The Department of Finance

NPWP No. 01.660.084.3-413.000

The Capital Investment Coordinating Board

No. 293/I/PMDN/1995

Dated 30 May 1995

Related Company :

A Member of the LAUTAN LUAS Group (see attachment)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 35,000,000,000.-

Issued Capital : Rp. 35,000,000,000.-

Paid up Capital : Rp. 35,000,000,000.-

Shareholders/Owners :

a. P.T. LAUTAN LUAS Tbk - Rp. 34,650,000,000.-

Address : Jl. AIP II KS Tubun Raya No. 77

Kelurahan Slipi, Kecamatan Palmerah

Jakarta Barat

Indonesia

b. P.T. FUMASJAYA UTAMA - Rp. 350,000,000.-

Address : Jl. AIP II KS Tubun Raya No. 77

Kelurahan Slipi, Kecamatan Palmerah

Jakarta Barat

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Manufacturer of Methyltin Stabilizer, Plastic Additives and Compound

Production Capacity :

a. Methyltin Stabilizer - 2,250 tons p.a.

b. Masterbatch - 1,200 tons p.a.

c. Plastic Compound - 2,800 tons p.a.

Total Investment :

a. Owned Capital - Rp. 35.0 billion

b. Loan Capital - Rp. 3.7 billion

c. Total Investment - Rp. 38.7 billion

Started Operation :

March 1996

Brand Name :

Advance Stabilindo Industry

Technical Assistance :

None

Number of Employee :

110 persons

Marketing Area :

Local - 100%

Main Customer :

Plastic industries

Market Situation :

Very Competitive

Main Competitors :

a. P.T. BASF INDONESIA

b. P.T. CLARIANT INDONESIA

c. P.T. DIC INDONESIA

d. P.T. HOLLAND INDONESIA

e. P.T. INTER ANEKA LESTARI KIMIA

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank EKONOMI RAHARDJA Tbk

Graha Ekonomi

Jalan Setiabudi Selatan KAv. 7-8

Jakarta Selatan

Indonesia

b. P.T. Bank MANDIRI Tbk

Jalan Imam Bonjol No. 61

Jakarta Pusat

Indonesia

c. P.T. Bank CENTRAL ASIA Tbk

Jalan Asemka No. 27-31

Jakarta Barat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2011 – Rp. 127.0 billion

2012 – Rp. 136.0 billion

2013 – Rp. 145.0 billion

2014 – Rp. 77.5 billion (January – June)

Net Profit (estimated) :

2011 – Rp. 10.2 billion

2012 – Rp. 11.3 billion

2013 – Rp. 11.9 billion

2014 – Rp. 6.3 billion (January – June)

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

Director - Mr. Joshua Chandraputra Asali

General Manager - Mr. Aditya Ariasena

Board of Commissioners :

President Commissioner - Mr. Indrawan Masrin

Commissioners - a. Mr. Jimmy Masrin

b. Mr. Herman Santoso

Signatories :

Director (Mr. Joshua Chandraputra Asali) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

OVERALL PERFORMANCE

P.T. ADVANCE STABILINDO INDUSTRY (P.T. ASI) was established in Jakarta based on notary deed Mr. Frans Elsius Muliawan, SH., no. 57 dated 9 December 1994 with an authorized capital of Rp. 4,000,000,000 issued and paid up capital of Rp. 2,000,000,000. The founding shareholders are P.T. FUMASJAYA UTAMA and P.T. LAUTAN LUAS Tbk., both are national private companies. Its article of association had been changed a couple of times and according to the revision of notary deed in January 2009 the company authorized capital was increased to Rp. 35,000,000,000 wholly issued and paid up. With this development the composition of its shareholders has been changed to become P.T. LAUTAN LUAS Tbk (99%) and P.T. FUMASJAYA UTAMA (1%). The latest according to the revision of notary deed Mrs. Laurenseia Siti Nyoman, SH., no. 70 dated 26 April 2013 the company board of director and the board of commissioner had been changed. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-50675.AH.01.02.TH.2013 dated October 2, 2013.

We observe the majority shareholder P.T. LAUTAN LUAS Tbk., is a publicly listed national private company and holding firms of the LAUTAN LUAS Group, a national private company whose majority business stakes is owned and handled by Mr. Adyansyah Masrin AKA Keesi AKA Ng Kee Chun and his family members.

P.T. ASI is a domestic capital investment company (PMDN) dealing with chemicals industry under the license from MORTON INTERNATIONAL of the USA. Its plant is located at Industrial Estate MM-2100, Cibitung, West Java, on a land of some 7,000 sq. meters, and had been operating since March 1996. Initially the company produces of methyltin stabilizer and then expanded to increasing production capacity. Some 60% to 70% of basic materials namely dimethyltine dichloride and ethylheksile thio-glicolate is imported from the USA, France, Germany and Japan, and the rest from local. During the year, P.T. ASI obtained two additional manufacturing lines to expand its production capability. ASI officially began construction of its plastic compound and master batch factory in February 2006. This line will enable ASI to service customers in the electronic, household goods, plastic packaging and automotive industries. In October 2006, ASI acquired a plastic blow moulding and injection moulding. With this acquisition, ASI is able to service customers in the edible oil and gas industries. P.T. ASI produces methyltine stabilizer, plastic additive and compound. All products of P.T. ASI are now marketed locally to a numbers producer of PVC film, plastic bottles, plastic sheet, plastic profile and pipe. The customers are among others P.T. ZEBRA ASABA INDUSTRI, the MASPION Group, etc. We observe the operation of P.T. ASI has been growing and developing well in the last three years.

The demand for methyltin stabilizer, plastic compound, masterbatch is estimated to have gone on rising in 2013 despite relatively small. The masterbatch is produced by 8 producers respectively P.T. BASF INDONESIA, P.T. DIC INDONESIA, P.T. INTER ANEKA LESTARI KIMIA, P.T. HALIM SAMUDERA INTERUTAMA, P.T. JAMAYA PLASTIK INDUSTRI, P.T. CLARIANT INDONESIA, P.T. HOLLAND COLOR ASIA and P.T. NIPPISUN INDONESIA. It is estimated that the demand for masterbatch products will continue on rising in line with the growth of the demand for plastic bag, plastic foam, plastic component, plastic doll, plastic bottle, plastic pipe, plastic cable and others. Business position of P.T. ASI is remaining quite well and it has controlled a wide marketing network among electronic, household goods, plastic packaging and automotive industries in the country.

Until this time P.T. ASI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. ASI is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated that total sales turnover of the company in 2011 amounted to Rp. 127.0 billion rose to Rp. 136.0 billion in 2012 increased to Rp. 145.0 billion in 2013. As from January to June 2014 the sales turnover has reached at least Rp. 77.5 billion with a net profit of at least Rp. 6.3 billion. It is projected the sales turnover will be rising by at least 6% in 2015. The company has an estimated total networth of at least Rp. 75.0 billion. We observe that P.T. ASI is supported by the LAUTAN LUAS Group 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. ASI is led by Mr. Joshua Chandraputra Asali (60) a professional manager with experience in manufacturer of methyltine stabilizer, plastic additive and compound. Joshua is an Indonesian citizen, graduated from the University of Minnesota in 1977 with a Bachelor degree in Chemical Engineering, and from the University of Illinois in 1983 with a PhD in Chemical Engineering. Joshua joined PT LAUTAN LUAS Tbk in 1984 as a Sales Executive. Since then his career has included roles as Sales Manager (1987 - 1992), Marketing Manager (1992 - 1996), Marketing Director (1996 - 2007), and Managing Director and Business Development & Manufacturing Director (2007 - 2012), before being appointed as Managing Director and Business Development Director of the Company in 2012. Currently, Joshua is also on the Board of Commissioners or Directors of several companies within Lautan Luas Group. As Managing Director and Business Development Director, Joshua leads the Company's operations on a day-to-day basis, championing areas including human resources, and is responsible for new development activities.

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. ADVANCE STABILINDO INDUSTRY is sufficiently fairly good for business transaction.

Attachment

List of the LAUTAN LUAS Group Member

1. ADVANCE STABILINDO INDUSTRY, P.T. (Methyltine Stabilizer Processing)

2. ALBRIGHT AND WILSON MANYAR, P.T. (Alkyl Benzene Sulfonate, Alcohol Ether Sulphates and Alcohol Suphates Industry)

3. ASPIRASI LUHUR, P.T. (Investment Holding)

4. BUKITSUGIH SETIAMAS, P.T. (Contracting Service)

5. CATURKARSA MEGATUNGGAL, P.T. (Property Management)

6. CIPTA MAPAN LOGISTIC, P.T. (Freight Forwarding Services)

7. DAITI CARBON NUSANTARA, P.T. (Activated Carbon Manufacturing)

8. DUNIA KIMIA UTAMA, P.T. (Sulphuric Acid and Aluminum Sulphate Processing)

9. DUNIA KIMIA JAYA, P.T. (Poly Aluminum Chloride, Band Poly Lubricant and Textile Auxiliaries Processing)

10. DUTA KIMIA, P.T. (Chemical Trading)

11. FINDECO JAYA, P.T. (Alkyl Benzene Sulfonic Acid and Dodecyl Benzene Sulfonic Acid Industry)

12. HYDRO HITECH OPTIMA, P.T. (Water Solution Provider)

13. INDONESIAN ACID INDUSTRY, P.T. (Chemical Industry)

14. KRYTON LAUTAN INDONESIA, P.T. (Specialty Cements, Concrete Additives and Specialty Paints and Coating Industries)

15. LAUTAN JASINDO, P.T. (Trading & Investment Holding)

16. LAUTAN LUAS Tbk., P.T. (Industrial Chemical Distribution)

17. LAUTAN OTSUKA CHEMICAL, P.T. (Chemical Industry)

18. LAUTAN SULFAMAT LESTARI, P.T. (Sulfamic Acid Manufacturing)

19. LENTERA LAUT RAYA, P.T. (Chemical Trading)

20. LIKU TELAGA, P.T. (Chemical Processing)

21. MAHKOTA INDONESIA, P.T. (Industrial Chemical Industry)

22. METABISULPHITE NUSANTARA, P.T. (Sodium Metabisulphite Manufacturing)

23. MUSTIKA ARTA MAS, P.T. (Investment Holding)

24. PACINESIA CHEMICAL INDUSTRY, P.T. (Poly Aluminum Chlorida (PAC) Industry)

25. PERAK TIMUR PERMAI, P.T. (Tank Terminal Management)

26. PETRO CENTRAL, P.T. (Sodium Try Poly Sulphate Processing)

27. RHODIA MANYAR, P.T. (Alkyl Benzene Sulfonate, Alcohol Ether Sulphates

28. and Alcohol Sulphates Industry ; Importing and Distribution Services (inactive)

29. ROHA LAUTAN PEWARNA, P.T. (Additives Colour Manufacturing)

30. SAMUDRA LUAS, P.T. (Chemical Trading)

31. SERUNI GANDAMEKAR, P.T. (Sulphur Powders Processing)

32. SUKINDO JAYA, P.T. (Chemical Trading)

33. UNGGUL INDAH CORPORATION Tbk., P.T. (Alkyl Benzene Processing)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.83
UK Pound	1	Rs.96.56
Euro	1	Rs.77.42

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	SMN

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.