MIRA INFORM REPORT

Report Date :

09.05.2007

IDENTIFICATION DETAILS

Name :	P.T. EAC INDONESIA

Registered Office :	Graha PRATAMA, 17^th Floor, Jalan M.T. Haryono Kav. 15, Jakarta 12810

Country :	Indonesia

Date of Incorporation :	15 May 1995

Legal Form :	Limited Liability Company

Line of Business :	General Trading, Importer and Distributor of Industrial Chemical and Consumer Products

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$ 1.220,000

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Name of company

P.T. EAC INDONESIA

Address

Head Office

Graha PRATAMA, 17^th Floor

Jalan M.T. Haryono Kav. 15

Jakarta 12810 - Indonesia

Phones - (021) 8379-0755 (Hunting)

Fax - (021) 8379-0760

E-mail - info@eacchemical.com

Website - http://www.eac.co.th

Building Area - 20 storey

Office Space - 260 sq. meters

Region - Commercial

Status - Owned

Branches

a. Jalan Soekarno Hatta 503 A

Bandung, 40265

West Java - Indonesia

Phone - (022) 731-5593

Fax - (022) 731-5594

b. Jalan Veteran 200

Solo, 57149

Central Java - Indonesia

Phone - (0271) 661-892

Fax - (0271) 522-53

c. Jalan Kalibutuh 215

Surabaya, 60173

East Java - Indonesia

Phone - (031) 546-9136

Fax - (031) 546-9137

d. Jalan Soekarno Hatta 180 B

Semarang 50199

Central Java - Indonesia

Phone - (024) 673-2840

Fax - (024) 670-6158

e. Jalan Wahidin 56/4-FF

Medan, 20211

North Sumatra - Indonesia

Phone - (061) 451-1876

Fax - (061) 455-0826

Date of Incorporation

a. 15 May 1995 as P.T. EKA ASIACHARTA

b. 2 October 2000 as P.T. EAC INDONESIA

Legal Form

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

Company Reg. No.

a. No. C-20348 HT.01.04.TH.2001

Dated 9 November 2001

b. No. C-UM.02.01.1797

Dated 08 February 2005

Company Status

Foreign Investment Company (PMA)

Permit by the Government Department

a. The Department of Industry & Trade

SIUP No. 1.242/2232-P/09-04/PB/V/99

Dated 5 May 1999

b. The Capital Investment Coordinating Board

- No. 108//V/PMA/2000

Dated 3 August 2000

- No. 306/III/PMA/2001

Dated 21 March 2001

- No. 750/III/PMA/2001

Dated 18 June 2001

Related Companies

a. EAC CHEMICALS SINGAPORE Pte. Ltd., of Singapore (Investment Holding)

b. P.T. KEMIKA SEJATI RAYA of Indonesia (Investment Holding)

CAPITAL AND OWNERSHIP

Capital Structure :

a. Authorized Capital - Rp 58,638,000,000.-

b. Issued Capital - Rp 58,638,000,000.-

c. Paid up Capital - Rp 58,638,000,000.-

Shareholders/Owners :

a. EAC CHEMICALS SINGAPORE Pte. Ltd., of Singapore - 94.96%

Address : 4 A Clementi Loop

Singapore, SINGAPORE

b. P.T. KEMIKA SEJATI RAYA of Indonesia - 5.04%

Address : Graha Pratama Building

Jl. M.T. Haryono Kav. 15

Jakarta 12810 - Indonesia

BUSINESS ACTIVITIES

Lines of Business:

General Trading, Importer and Distributor of Industrial Chemical and Consumer Products

Agent and Distribution of :

Crompton Textile Chemicals of the USA
Pyosa Food Chemicals of Mexico
Chemical Products and Food Ingredients of Southeast Asia
Etc.

Production Capacity

None

Total Investment

None

Started Operation

1995

Brand Name

None

Technical Assistance

None

Number of Employee

78 persons

Marketing Area

Domestic (Local) - 100%

Main Customers

a. Textile Industries

b. Cosmetic Manufacturing Industries

c. Paint and Ink Industries

d. Flexible Packaging Industries

e. Glass and Ceramic Tile Manufacturing Industries

f. Automotive Assembling Industries

g. Etc.

Market Situation

Very Competitive

Main Competitors

a. P.T. PANCASAKTI PRAKARSAMULYA

b. P.T. HIDUP MAKMUR LESTARIABADI

c. P.T. MULTI CITRA KIMIA

d. P.T. TRIMITRA SEJATI TANNINDO

e. P.T. GALIC BINA MADA, Etc.

Business Trend

Growing

BANKER, AUDITOR & LITIGATION

Banker :

The STANDARD CHARTERED Bank

Wisma Standard Chartered Bank

Jl. Jend. Sudirman Kav. 33-A

Jakarta 10220

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Sales Turnover (estimated) :

2004 – Rp. 76.0 billion

2005 – Rp. 82.0 billion

2006 – Rp. 90.0 billion

Net Profit (Loss) :

2004 – Rp. 3.7 billion

2005 – Rp. 4.0 billion

2006 – Rp. 4.6 billion

Payment Manner :

Promptly

Financial Comments :

Fairly Strong

KEY EXECUTIVES

Board of Management :

President Director - Mr. Tony Susanto

Directors - a. Mr. Agus Santosa Sutandi

b. Mr. Jouni Asikainen

Board of Commissioner :

Commissioner - Mr. Jan Dan Pedersen

Signatories :

President Directors (Mr. Tony Susanto) or one of the Directors (Mr. Agus Santosa Sutandi or Mr. Jouni Asikainen) which must be approved by the Board of Commissioner (Mr. Jan Dan Pedersen)

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$ 1.220,000.- on the 90 days of payment

OVERALL PERFOMANCE

Initially the company named P.T. EKA ASIACHARTA was established in May 1995 in Jakarta with an authorized capital of Rp 250,000,000.-, issued and paid up capital of Rp100,000,000.-. The founding shareholders are P.T. AMANDA ABADI, a national private company and Mr. Timbul Thomas Lubis SH, a native businessman. The company's notarial act had frequently been revised. In October 2000, new shareholders joined in namely EAC CONSUMERS PRODUCTS LTD APS of Denmark, P.T. KEMIKA SEJATI RAYA of Indonesia, and concurrently the company status was converted into foreign capital investment (PMA) and renamed P.T. EAC INDONESIA (P.T. EACI) with an authorized capital of Rp 58,638,000,000.-, entirely was issued and paid up. In June 2001 EAC CONSUMERS PRODUCTS LTD APS of Denmark pulled out and replaced by EAC CHEMICALS SINGAPORE Pte.Ltd., of Singapore. The deed of amended was made by Ms. Silvia Veronica, SH, a public notary in Jakarta, under Company Registration Number C-UM.02.01.1797, dated February 8, 2005. We see, that majority business stakes is controlled by EACH CHEMICALS SINGAPORE Pte. Ltd., (94.96%) of Singapore.

P.T. EAC had been operating since June 1995 in general trading, importing and distribution of industrial chemicals and consumer products. It used to be a distributor of Zeneca coloring matter (pigment) of the UK. But since February 1997 the distributorship was held by P.T. TIRA WAHARI LESTARI. Mr. Gunawan Sungkar, the logistic manager of P.T. EACI stated that the company is now as a distributor of Crompton textile chemicals of the USA through the sole agent in Hong Kong, Pyosa food chemicals of Mexico, chemical products and food ingredients of Southeast Asia. Besides, the company is also trading consumer products like canned food, etc., those imported from Australia, Taiwan, Singapore and other countries. The commodities are Borax and Boric acid, Dense & Light Soda Ash, Sodium Bicarbonate, STPP, Feldspar, Zirconium Silicates, Selenium Powder, Cobalt/Nickel Oxide, Grinding Media, Resin, Biocides, Pigment, Carbon Blacks, Dispersing Agents, Fillers and Extenders, Laminating Adhesives, Chlorinated Paraffin Plasticiser, PTSA, Titanium Dioxide, Bronze and Aluminum Powder, Dyes, Surfactants, Emulsifiers, Cosmetic and toiletries ingredients for hair care and skin care, emulsifiers, oleochemicals, stearid acids, fumed and precipitated silica.

That textile chemical are supplied to textile industries among others P.T. ARTOSTEX, P.T. NAINTEX, and other industries like cosmetic, paint & ink, plastic, film, flexible packaging, glass, ceramics, automotive, electrical, formulation (incl. agrichemicals, household products) and other industries. Food chemicals and food ingredients are supplied to food and drink processing industries operating in Jakarta, Bandung, Surabaya, Solo and Medan. Canned food is supplied to retailers and supermarkets operating in Jakarta, Bandung, Surabaya and other major cities. It seems the operation of P.T. EACI had been growing slowly amid economic crisis occurred in the country.

The domestic demand for various type of chemical products had been rising by 8% to 10% on the average per annum until mid of 1997 in line with the rapid growth of various industrial sectors including paint industry, plastic, ink, textile, rubber, printing and others in the above period of times as the consumers. But, later dwindled as the impact of incessant economic crisis striking Indonesia followed by tight money policy imposed by Indonesian Central Bank (Bank Indonesia) as from the mid of 1997. The demand growth started to awake in 2001 in line with the amelioration of economic condition in the country. Market competition is very tough on account of large number of other similar companies operating in the country. P.T. EACI business position in this case is not too badly because it has built regular customers and extensive marketing network all across the country. We are convinced that P.T. EACI is in position to further thrive its business in the future.

The management is very reclusive and rejected to disclose its financial condition. We estimate the total sales turnover of P.T. EACI in 2004 amounted to Rp 76.0 billion increased to Rp 82.0 billion in 2005 to Rp 90.0 billion in 2006 and projected it will be higher by at least 8% in 2007. The operation in 2006 yielded an estimated net profit at least Rp 4.6 billion and the company has an estimated total networth at least Rp 60.0 billion. P.T. EACI is supported by a financially quite strong and healthy foreign partner of Singapore.

The management is headed by Mr. Tony Susanto (41), a professional manger with 12 years experience in chemical products trading and distribution. Daily he is assisted by Mr. Agus Santosa Sutandi (34) and Mr. Jouni Asikainen (47) of Finland, both as directors. The management is also handled by a number of experienced professional managers in this business, having maintained a wide business relation with private businessmen at home and abroad as well as with government sectors. So far we have never yet heard of the company’s management having been involved in business malpractices. or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

We have investigated to the district court and the high court in Indonesia, but there is no file contained civil or criminal cases involved the company management. We appraise that P.T. EACI is quite feasible for business transaction. But owing to economic condition in the country to remain unstable, we recommend to treat prudently in extending loan to the company.

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