MIRA INFORM REPORT

Report Date :

08.06.2007

IDENTIFICATION DETAILS

Name :	EASTMAN CHEMICAL LTD
Registered Office :	^3 Killiney Road, #05-04^, Winsland House,^Singapore^–^239519
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^11/04/1977
Com. Reg. No.:	^F 02640K
Legal Form :	Foreign Company
Line of Business :	Wholesale of Chemicals and Chemical Products.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Status :	Foreign Company
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

EASTMAN CHEMICAL LTD

Line Of Business 

WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS.

Parent Company

NA

Financial Elements

FY 2005

BRANCH

Sales : S$165,129,029

Networth : NA

Paid-Up Capital : NA

Net result : S$5,136,695

Net Margin(%) : 3.11

Return on Equity(%) : NA

Leverage Ratio : NA

COMPANY IDENTIFICATION

^{Subject Company : EASTMAN CHEMICAL LTD.}

^{Former Name : EASTMAN CHEMICAL INTERNATIONAL LTD}

^{Business Address : 3 KILLINEY ROAD}

^#05-04

^{WINSLAND HOUSE}

^{Town : SINGAPORE}

^{Postcode : 239519}

^{County : -}

^{Country : Singapore}

^{Telephone : 6735 3100}

^{Fax : 6735 4930}

^{ROC Number : F 02640K}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{EASTMAN CHEMICAL INTERNATIONAL LTD (DATE OF CHANGE OF NAME:31/12/1992)}

SUMMARY

^{All amounts in this report are in : SGD}

^{Legal Form : Foreign Company}

^{Date Inc. : 11/04/1977}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 165,129,029}

^{Networth : -}

^{Capital : -}

^{Paid-Up Capital : -}

^{Employees : 50}

^{Net result : 5,136,695}

^{Share value : -}

^{Auditor : NIL}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 11/04/1977}

PRINCIPAL(S)

No principals recorded in our Database

DIRECTOR(S)

^{JAMES P. ROGERS 111395929 Director}

^{Appointed on : 01/12/2003}

^{Street : 105 COVENTRY WYNDE}

^{KINGSPORT, TN 37664}

^{Town : -}

^{Postcode : -}

^{Country : United States}

^{TEO BEE LUANG ANGELA S0017677Z Agent}

^{Appointed on : 15/05/2006}

^{Street : 112 ENG NEO AVENUE}

^{Town : SINGAPORE}

^{Postcode : 289569}

^{Country : Singapore}

^{SIEW BOON HIM S2143789A Agent}

^{Appointed on : 15/05/2006}

^{Street : 347 HOUGANG AVENUE 7}

^#02-581

^{HOUGANG N3 (HUDC)}

^{Town : SINGAPORE}

^{Postcode : 530347}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{CHEN CHOONG JOONG S2034716C}

^{GERARD ANTHONY CORDEIRO S0194059G}

^{LIM OON TEIK EUGENE S1301334I}

ACTIVITY(IES)

^{CHEMICALS Code: 3970}

^{BASED ON ACRA'S RECORD AS AT 04/06/2007}

^{1. WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS NEC}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{CITIBANK N.A.}

SHAREHOLDERS(S)

No Shareholders In Our Database

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality : AVERAGE

^{Liquidity : LACKING}

^{Payments : REGULAR}

^{Trend : UNKNOWN}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

^{Balance Sheet Date: 31/12/2005 31/12/2002}

^{Number of weeks: 52 52}

^{Consolidation Code: BRANCH BRANCH}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 358,924 92,498}

^{Investments 77,456 493,116}

^{Total Fixed Assets: 436,380 585,614}

^{Inventories: 4,148,553 12,036,381}

^{Receivables: 16,248,884 20,889,248}

^{Cash,Banks, Securitis: 1,136,533 1,154,600}

^{Other current assets: 13,132,605 27,168,446}

^{Total Current Assets: 34,666,575 61,248,675}

^{TOTAL ASSETS: 35,102,955 61,834,289}

^{--- LIABILITIES ---}

^{Trade Creditors: 502,610 147,900}

^{Prepay. & Def. charges: 427,929}

^{Other Short term Liab.: 34,172,416 61,686,389}

^{Total short term Liab.: 35,102,955 61,834,289}

^{TOTAL LIABILITIES: 35,102,955 61,834,289}

PROFIT & LOSS ACCOUNT

^{Net Sales 165,129,029 -155,205,787}

^{Purchases,Sces & Other Goods: 148,214,719 149,117,931}

^{Gross Profit: 16,914,311 -6,087,856}

^{NET RESULT BEFORE TAX: 5,136,695 2,011,880}

^{Net income/loss year: 5,136,695 2,011,880}

^{Depreciation: 91,225 80,939}

^{Financial Income: 122}

RATIOS

^{31/12/2005 31/12/2002}

^{Turnover per employee: 3302580.58 -3104115.74}

^{Net result / Turnover(%): 0.03 -0.01}

^{Fin. Charges / Turnover(%): 0.00 -0.00}

^{Stock / Turnover(%): 0.03 -0.08}

^{Net Margin(%): 3.11 -1.30}

^{Return on Assets(%): 14.63 3.25}

^{Net Working capital: -436380.00 -585614.00}

^{Cash Ratio: 0.03 0.02}

^{Quick Ratio: 0.50 0.36}

^{Current ratio: 0.99 0.99}

^{Receivables Turnover: 35.42 -48.45}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Net Working capital : (Total current assets - Total short term liabilities)}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities + Receivables)/Total Short term Liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

FINANCIAL COMMENTS

^{NOTE: ONLY 2005 FINANCIAL STATEMENTS ARE AVAILABLE AT THE TIME OF THIS REPORT. HENCE, FINANCIAL ANALYSIS IS CONDUCTED FOR 2005 ONLY AS THE PREVIOUS FINANCIAL REPORT WAS DATED 2002.}

^{THE FINANCIAL CONDITION OF THE BRANCH WAS SEEN TO BE FAIR TO LIMITED IN VIEW OF THE FOLLOWING:}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS WEAK AS SEEN FROM THE DEFICIT NET WORKING CAPITAL OF S$436,380 AND LOW LIQUIDITY RATIOS. QUICK RATIO WAS COMPUTED AT 0.50 TIMES WHILE CURRENT RATIO WAS COMPUTED AT 0.99 TIMES.}

^LEVERAGE:

^{SUBJECT WAS LARGELY FINANCED BY OTHER SHORT TERM LIABILITIES WHICH MADE UP 97.35% OF THE TOTAL CURRENT LIABILITIES. DUE TO EASTMAN COMPANIES WAS CLASSIFIED AS OTHER SHORT TERM LIABILITIES.}

^{PROFITABILITY:}

^{SUBJECT POSTED REVENUE OF S$165,129,029 WHIILE NET EARNINGS WAS COMPUTED AT S$5,136,695. AS A RESULT, NET MARGIN WAS COMPUTED AT 3.11%.}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IT WAS NOTED THAT AVERAGE COLLECTION WAS COMPUTED AT 35 DAYS.}

BACKGROUND/OPERATION

^{SUBJECT WAS INCORPORATED IN ENGLAND, AND REGISTERED AS A FOREIGN BRANCH IN THE UNITED STATES OF AMERICA, ON 11/04/1977 AS "EASTMAN CHEMICAL INTERNATIONAL LTD".}

^{SUBSEQUENTLY, ON 31/12/1992, SUBJECT CHANGED ITS NAME STYLE TO "EASTMAN CHEMICAL LTD.".}

^{AS AT 04/06/2007, SUBJECT HAS AN AUTHORISED CAPITAL OF US$200,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{(1) WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS}

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: CHEMICALS}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^BACKGROUND:

^{* SUBJECT PROCURES ITS SUPPLIES FROM HOME OFFICE (UNITED STATES) AND RELATED COMPANIES.}

^{PRODUCTS AND SERVICES:}

^{* PLASTIC RAW MATERIALS}

^{* SYNTHETICS, SYNTHETIC PRODUCTS & SERVICES}

^{* PLASTIC RAW MATERIALS & SUPPLIES}

^{NO. OF EMPLOYEES:}

^{* BRANCH - 2005: 50 OVER (2004: NOT PROVIDED)}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 08/06/2007, NO TRADE INFORMATION WAS AVAILABLE AS SUBJECT'S PERSONNEL DECLINED TO PROVIDE.}

^{REGISTERED ADDRESS:}

^{24 RAFFLES PLACE}

^{#15-00 CLIFFORD CENTRE}

^{SINGAPORE 048621}

^{- DATE OF CHANGE OF ADDRESS: 30/01/2004}

^{BUSINESS ADDRESS:}

^{3 KILLINEY ROAD}

^{#05-04 WINSLAND HOUSE}

^{SINGAPORE 239519}

^{- PREMISE OWNED BY: WINSLAND INVESTMENT PTE LTD}

^{WEBSITE: http://www.eastman.com}

^{E-MAIL : -}

MANAGEMENT

^{THE DIRECTOR AT THE TIME OF THIS REPORT IS:}

^{(1) JAMES P. ROGERS, AN AMERICAN}

^{- BASED IN UNITED STATES OF AMERICA}

SINGAPORE'S COUNTRY RATING 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

DOMESTIC WHOLESALE TRADE INDEX

DOMESTIC WHOLESALE TRADE IN 4Q 2006 HAS DECLINED BY 6.9%. EXCLUDING PETROLEUM, DOMESTIC SALES REMAINED AT SIMILAR LEVEL COMPARED TO THE PREVIOUS QUARTER.

GENERAL WHOLESALE TRADE POSTED THE LARGEST SALES DECREASE OF 16.6%, FOLLOWED BY THE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS OF 15.7% AND HOUSEHOLD EQUIPMENT AND FURNITURE OF 13.2%.

SECTORS OF INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED GROWTHS OF 17.0% AND 12.3%, RESPECTIVELY.

FOREIGN WHOLESALE TRADE INDEX

ON A QUARTER-TO-QUARTER BASIS, OVERALL FOREIGN WHOLESALE TRADE CONTRACTED BY 7.9% IN 4Q 2006 AFTER TWO QUARTERS OF POSITIVE GROWTH. FOREIGN SALES WENT DOWN BY 1.6%, EXCLUDING PETROLEUM.

THE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS AND ELECTRONIC COMPONENTS MARKED LOWER OVERSEAS SALE OF 14.2% AND 11.6% RESPECTIVELY IN 4Q 2006 OVER 3Q 2006.

RETAIL TRADE

IN GENERAL, RETAIL SALES GREW BY 7.9% IN 4Q 2006, UP FROM THE 5.2% IN THE PREVIOUS QUARTER. THIS BROUGHT FULL YEAR GROWTH FOR 2006 TO 6.9%, DOWN FROM 9.0% IN 2005. EXCLUDING MOTOR VEHICLE SALES, RETAIL SALES ROSE 4.1%, SLOWING FROM THE 7.2% GAIN IN THE PREVIOUS YEAR.

MOST RETAIL SECTORS REPORTED BRISK BUSINESS IN DEC. 2006. SALES OF RECREATIONAL GOODS, DEPARTMENT STORES, WEARING APPAREL AND FOOTWEAR, FURNITURE AND HOUSEHOLD EQUIPMENT, WATCHES AND JEWELLERY CLIMBED BY 36.6% TO 44.2% IN DEC. 2006 COMPARED TO THE PREVIOUS MONTH.

LIKEWISE, RETAILERS OF OPTICAL GOODS AND BOOKS, TELECOMMUNICATIONS APPARATUS AND COMPUTERS, FOOD AND BEVERAGES, MEDICAL GOODS AND TOILETRIES AND SUPERMARKETS ENJOYED GROWTH BETWEEN 12.7% TO 26.0%.

OUTLOOK

FOR WHOLESALE TRADE, A NET WEIGHTED BALANCE OF 11% OF FIRMS ANTICIPATES BUSINESS TO BE LESS BRISK FOR COMING MONTHS. THOSE DEALING IN JEWELLERY AND WATCHES, INDUSTRIAL MACHINERY AND EQUIPMENT, TELECOMMUNICATIONS EQUIPMENT AND ELECTRONIC COMPONENTS ARE AMONG THOSE WHO FORESEE SLOWER BUSINESS IN THE COMING MONTHS.

FOR RETAILERS, A NET WEIGHTED BALANCE OF 8%, FORECAST THE BUSINESS CONDITIONS TO IMPROVE IN THE NEXT SIX MONTHS. DEPARTMENT STORES OWNERS AND RETAILERS OF FURNITURE AND FURNISHINGS ARE OPTIMISTIC ABOUT THE BUSINESS PROSPECTS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

TODAY

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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