MIRA INFORM REPORT

Report Date :

26.12.2013

IDENTIFICATION DETAILS

Name :	HITACHI ELEVATOR ASIA PTE. LTD.
Formerly Known As :	HITACHI ELEVATOR ENGINEERING (SINGAPORE) PRIVATE LIMITED
Registered Office :	10, Toh Guan Road East, 608597
Country :	Singapore
Financials (as on) :	31.03.2013
Date of Incorporation :	20.10.1972
Com. Reg. No.:	197201468-W
Legal Form :	Private Limited Company
Line of Business :	Subject is involved in sales installation and maintenance of elevators, escalators and moving sidewalks in Singapore.
No. of Employees :	650 [2013]

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 :	Exists

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 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
Singapore	A1	A1

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

Singapore ECONOMIC OVERVIEW

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 8.6% between 2004 and 2007. The economy contracted 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to 5.2% in 2011 and 1.3% in 2012, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to an average of about 1.0% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.	:	197201468-W
COMPANY NAME	:	HITACHI ELEVATOR ASIA PTE. LTD.
FORMER NAME	:	HITACHI ELEVATOR ENGINEERING (SINGAPORE) PRIVATE LIMITED (30/08/2010)
INCORPORATION DATE	:	20/10/1972
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	10, TOH GUAN ROAD EAST, 608597, SINGAPORE.
BUSINESS ADDRESS	:	10, TOH GUAN ROAD EAST, HITACHI ELEVATOR BUILDING, 608597, SINGAPORE.
TEL.NO.	:	65-64161711
FAX.NO.	:	65-65610991
WEB SITE	:	WWW.HEA.HITACHI.COM.SG
CONTACT PERSON	:	TAKAHASHI YUSUKE ( MANAGING DIRECTOR )
PRINCIPAL ACTIVITY	:	MANUFACTURE AND REPAIR OF LIFTS AND ESCALATORS
ISSUED AND PAID UP CAPITAL	:	67,600.00 ORDINARY SHARE, OF A VALUE OF SGD 33,800,000.00
SALES	:	SGD 167,027,719 [2013]
NET WORTH	:	SGD 55,352,763 [2013]
STAFF STRENGTH	:	650 [2013]
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	GOOD
INDUSTRY OUTLOOK	:	MATURE

HISTORY / BACKGROUND

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) manufacture and repair of lifts and escalators.

The immediate and ultimate holding company of the Subject is HITACHI, LTD., a company incorporated in JAPAN.

Share Capital History

Date	Issue & Paid Up Capital
07/08/2013	SGD 33,800,000.00

The major shareholder(s) of the Subject are shown as follows :

Name	Address	IC/PP/Loc No	Shareholding	(%)
HITACHI, LTD.	6-6, MARUNOUCHI 1-CHOME, CHIYODA-KU, TOKYO, 100-8280, JAPAN.	T03UF1364	36,098.00	53.40
HITACHI BUILDING SYSTEMS CO., LTD	7, KANDA-MITOSHIRO-CHO, CHIYODA-KU, TOKYO, 101-8941, JAPAN.	T07UF0161	24,742.00	36.60
YUNGTAY ENGINEERING COMPANY LIMITED	99, FU HSING NORTH RD, TAIPEI, 11TH FLOOR, TAIWAN.	T07UF0050	6,760.00	10.00
			---------------	------
			67,600.00	100.00
			============	=====

+ Also Director

The Subject interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No	Country	Company	(%)	As At
38677D	MALAYSIA	HITACHI ELEVATOR ENGINEERING (MALAYSIA) SDN BHD	100.00	31/03/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. TAKAHASHI YUSUKE
Address	:	221, QUEENSWAY, 02-12, VIZ AT HOLLAND, 276750, SINGAPORE.
IC / PP No	:	G0459750N
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2011

DIRECTOR 2

Name Of Subject	:	NOBORU ARABORI
Address	:	15-19-36, YACHIYODAI KITA, YACHIYO-SHI, CHIBA, 276-0031, JAPAN.
IC / PP No	:	TK4929321
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2012

DIRECTOR 3

Name Of Subject	:	ISHIKAWA AKIHIKO
Address	:	6, ALEXANDRA VIEW, 18-02, METROPOLITAN CONDOMINUIM, 158746, SINGAPORE.
IC / PP No	:	G5863387P
Nationality	:	JAPANESE
Date of Appointment	:	01/10/2012

DIRECTOR 4

Name Of Subject	:	JOHNNY YEO ENG KWEE
Address	:	458, CHOA CHU KANG, AVNUE 4, 05-205, 680458, SINGAPORE.
IC / PP No	:	S1464403B
Nationality	:	SINGAPOREAN
Date of Appointment	:	22/06/2011

DIRECTOR 5

Name Of Subject	:	EIICHI SASAKI
Address	:	PARK TOWER UENO-IKENOHATA, 203, 1-1, IKENOHATA 2-CHOME, TAITO-KU, TOKYO, 110-0008, JAPAN.
IC / PP No	:	TH1343546
Nationality	:	JAPANESE
Date of Appointment	:	08/06/2011

DIRECTOR 6

Name Of Subject	:	TOSHIO IKEMURA
Address	:	22-8, MATSUBARA 5-CHOME, SETAGAYA-KU, TOKYO, 156-0043, JAPAN.
IC / PP No	:	TH0168467
Nationality	:	JAPANESE
Date of Appointment	:	08/06/2011

DIRECTOR 7

Name Of Subject	:	YUKIO TOYOSHIMA
Address	:	5, KEPPEL BAY VIEW, 06-18, REFLECTIONS AT KEPPEL BAY, 098404, SINGAPORE.
IC / PP No	:	G5350679N
Nationality	:	JAPANESE
Date of Appointment	:	01/10/2012

DIRECTOR 8

Name Of Subject	:	SHINJI MIZUMOTO
Address	:	2-30-16-411, HASUNE ITABASHI-KU, TOKYO, JAPAN.
IC / PP No	:	TZ0549500
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2009

MANAGEMENT

1)	Name of Subject	:	TAKAHASHI YUSUKE
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	ERNST & YOUNG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	FOO SOON SOO
	IC / PP No	:	S1310912E
	Address	:	34, SELETAR HILLS DRIVE, SELETAR HILLS ESTATE, 807049, SINGAPORE.

BANKING

No Banker found in our databank. 

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation. 

LEGAL CHECK AGAINST SUBJECT

* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation. 

LEGAL ACTION
Code No	:	99	Case No	:	2058
Year	:	2011	Place	:	SINGAPORE
Court	:	DISTRICT COURT
Date Filed	:	07/07/2011
Solicitor Ref	:	KR 8050.09.10
Solicitor Firm	:	K RAVI LAW CORPORATION
Plaintiff	:	KASILINGAM RAMAN
Defendants	:	HITACHI ELEVATOR ASIA PTE. LTD. (197201468)
Amount Claimed	:	90000
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person who has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

No winding up petition was found in our databank

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[	X	]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[		]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	SOUTH EAST ASIA MIDDLE-ASIA

OPERATIONS

Goods Traded

:

LIFTS AND ESCALATORS

Total Number of Employees:
YEAR	2013
GROUP	N/A
COMPANY	650

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacture and repair of lifts and escalators. 

The Subject is involved in sales installation and maintenance of elevators, escalators and moving sidewalks in Singapore.

The Subject's management system, design system, process control engineering and methodologies are reviewed regularly and continually improved to cope with the global market demand for higher quality products and services.

The Subject's trademark excellent services can be seen from their proud achievements of track, from Singapore’s Changi International Airport Terminal 3 (year 2008), to Macau’s Las Vegas Sands Casino (dating back to year 1996). 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-64161711
Match	:	N/A
Address Provided by Client	:	10 TOH GUAN ROAD EAST, HITACHI ELEVATOR BUILDING SINGAPORE 608597
Current Address	:	10, TOH GUAN ROAD EAST, HITACHI ELEVATOR BUILDING, 608597, SINGAPORE.
Match	:	YES

Other Investigations

we contacted one of the staff from the Subject and she provided some information on the Subject.

The Subject refused to disclose its banker.

The fax number provided belongs to the Subject's Admin department.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	0.83%	]
Profit/(Loss) Before Tax	:	Decreased	[	<117.91%>	]
Return on Shareholder Funds	:	Unfavourable	[	0.50%	]
Return on Net Assets	:	Unfavourable	[	2.13%	]
The higher turnover could be attributed to the favourable market condition.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Unfavourable	[	81 Days	]
Debtor Ratio	:	Favourable	[	45 Days	]
Creditors Ratio	:	Favourable	[	49 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.38 Times	]
Current Ratio	:	Unfavourable	[	1.59 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
The higher turnover had helped to reduce the Subject's losses. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.
Overall financial condition of the Subject : FAIR

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2008	2009	2010	2011	2012
Population (Million)	4.84	4.98	5.08	5.18	5.31
Gross Domestic Products ( % )	1.5	<0.8>	14.5	4.9	1.3
Consumer Price Index	6.6	0.6	2.8	5.2	4.6
Total Imports (Million)	450,892.6	356,299.3	423,221.8	459,655.1	474,554.0
Total Exports (Million)	476,762.2	391,118.1	478,840.7	514,741.2	510,329.0
Unemployment Rate (%)	2.2	3.2	2.2	2.1	2.0
Tourist Arrival (Million)	10.12	9.68	11.64	13.17	14.37
Hotel Occupancy Rate (%)	81.0	75.8	85.6	86.5	86.4
Cellular Phone Subscriber (Million)	1.31	1.37	1.43	1.50	1.52
Registration of New Companies (No.)	25,327	26,414	29,798	32,317	31,892
Registration of New Companies (%)	<2.2>	4.3	12.8	8.5	<1.3>
Liquidation of Companies (No.)	10,493	22,393	15,126	19,005	17,218
Liquidation of Companies (%)	13.7	113.4	<32.5>	25.6	9.4
Registration of New Businesses (No.)	24,850	26,876	23,978	23,494	24,788
Registration of New Businesses (%)	0.36	8.15	<10.78>	2.02	5.51
Liquidation of Businesses (No.)	21,150	23,552	24,211	23,005	22,489
Liquidation of Businesses (%)	<0.8>	11.4	2.8	<5>	<2.2>
Bankruptcy Orders (No.)	2,326	2,058	1,537	1,527	1,748
Bankruptcy Orders (%)	<15.9>	<11.5>	<25.3>	<0.7>	14.5
Bankruptcy Discharges (No.)	1,500	3,056	2,252	1,391	1,881
Bankruptcy Discharges (%)	<7.7>	103.7	<26.3>	<38.2>	35.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	<0.32>	3.25	<0.48>	4.25	3.64
Fish Supply & Wholesale	<6.31>	<1.93>	<10.5>	12.10	<0.5>
Manufacturing *	74.6	71.5	92.8	100.0	100.3
Food, Beverages & Tobacco	94.8	90.4	96.4	100.0	103.5
Textiles	180.1	145.9	122.1	100.0	104.0
Wearing Apparel	334.6	211.0	123.3	100.0	92.1
Leather Products & Footwear	128.2	79.5	81.8	100.0	98.6
Wood & Wood Products	132.0	101.4	104.0	100.0	95.5
Paper & Paper Products	101.0	95.4	106.1	100.0	97.4
Printing & Media	118.2	100.9	103.5	100.0	93.0
Crude Oil Refineries	113.1	96.4	95.6	100.0	99.4
Chemical & Chemical Products	84.5	80.3	97.6	100.0	100.5
Pharmaceutical Products	43.7	49.1	75.3	100.0	109.7
Rubber & Plastic Products	120.1	101.2	112.3	100.0	96.5
Non-metallic Mineral	96.5	91.9	92.5	100.0	98.2
Basic Metals	109.8	92.6	102.2	100.0	90.6
Fabricated Metal Products	101.3	90.8	103.6	100.0	104.3
Machinery & Equipment	65.0	57.3	78.5	100.0	112.9
Electrical Machinery	81.7	86.8	124.1	100.0	99.3
Electronic Components	93.1	85.2	113.6	100.0	90.6
Transport Equipment	102.0	96.0	94.0	100.0	106.3
Construction	45.90	<36.9>	14.20	20.50	28.70
Real Estate	<11.2>	1.4	21.3	25.4	31.9
Services
Electricity, Gas & Water	<1.3>	1.70	4.00	7.00	6.30
Transport, Storage & Communication	11.60	3.90	12.80	7.40	5.30
Finance & Insurance	<5.9>	<16.4>	<0.4>	8.90	0.50
Government Services	17.40	4.50	9.70	6.90	6.00
Education Services	0.50	0.10	<0.9>	<1.4>	0.30
* Based on Index of Industrial Production (2011 = 100)
(Source : Department of Statistics)

INDUSTRY ANALYSIS

INDUSTRY :	MANUFACTURING
The manufacturing sector contracted by 1.1% in the fourth quarter of 2012, led by declines in the electronics and precision engineering clusters. These clusters were weighed down by weak global demand for semiconductors and semiconductor-related equipment. For the whole year of 2012, the manufacturing sector grew by 0.1%, significantly lower than the 7.8% recorded in 2011 when the sector was boosted by a surge in the growth of the biomedical manufacturing cluster.
Output of the biomedical manufacturing cluster grew by 2.4% in the fourth quarter. The expansion was driven by the medical technology segment which grew by a healthy 9.2%, benefitting from robust export demand for medical devices. The pharmaceuticals segment also grew by a modest 1.1%. For 2012, the biomedical manufacturing cluster expanded by 9.9%.
Output of the transport engineering cluster expanded by 4.9% in the fourth quarter. The aerospace segment grew by 6.2%, supported by higher demand for repair jobs from commercial airlines. Similarly, the marine & offshore engineering segment expanded by 5.0%, on the back of higher contributions from oil rig projects and oilfield equipment components. In the year 2012, the transport engineering cluster surged by 11%.
The output of the precision engineering cluster shrank by 1.3% in the fourth quarter. The decline was led by the 5.3% contraction in the machinery & systems segment, which saw weak export demand for semiconductor-related equipment. On the other hand, the precision modules & components segment grew by 2.9%, supported by higher production of optical instruments & photographic equipment and electronic connectors. In 2012, the precision engineering cluster expanded by 1.3%.
The general manufacturing cluster's output grew by 1.2% in the fourth quarter, driven by the 6.4% growth in the miscellaneous industries segment. The segment's growth was supported by higher production of batteries and constructionrelated materials. By contrast, the printing and food, beverages & tobacco segments declined by 6.4% and 1.3% respectively. For 2012, the general manufacturing cluster grew by 2.0%.
The chemicals cluster's output grew by 7.7% in the fourth quarter. The petrochemicals and petroleum segments registered growth of 9.3% and 6.3% respectively, partly due to the low base from plant shutdowns in end of 2011. The specialty chemicals segment also expanded by 8.0% on the back of higher regional demand. For the year 2012, the chemicals cluster declined by 0.4%, primarily due to weak regional demand for specialty chemicals in the second and third quarter of 2012.
Output of the electronics cluster contracted by 10% in the fourth quarter, led by the semiconductors and computer peripherals segments which contracted by 13% and 15% respectively. By contrast, the data storage segment grew by 7.8%, mainly due to the low base in end of 2011 when floods in Thailand had disrupted the supply chain for data storage products. For the whole of 2012, the electronics cluster contracted by 11%.
OVERALL INDUSTRY OUTLOOK : MATURE

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1972, the Subject is a Private Limited company, focusing on manufacture and repair of lifts and escalators. The Subject has been in business for over 4 decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. Having strong support from its shareholder has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect. 

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a large entity, the Subject has a steady workforce of 650 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, the Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at SGD 55,352,763, the Subject should be able to maintain its business in the near terms. 

The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources. 

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors. 

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. As the Subject is long presence in the market, it should have acquired competitive edge against other players in the same fields. 

Based on the above condition, we recommend credit be granted to the Subject normally.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

HITACHI ELEVATOR ASIA PTE. LTD.

Financial Year End	2013-03-31	2012-03-31
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	SGD	SGD
TURNOVER	167,027,719	165,648,053
Other Income	2,402,828	2,684,980
	----------------	----------------
Total Turnover	169,430,547	168,333,033
Costs of Goods Sold	<150,794,748>	<159,765,950>
	----------------	----------------
Gross Profit	18,635,799	8,567,083
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	1,294,960	<7,232,248>
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	1,294,960	<7,232,248>
Taxation	<1,018,167>	1,244,024
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	276,793	<5,988,224>
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	21,275,970	27,701,694
	----------------	----------------
As restated	21,275,970	27,701,694
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	21,552,763	21,713,470
DIVIDENDS - Ordinary (paid & proposed)	-	<437,500>
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	21,552,763	21,275,970
	=============	=============

BALANCE SHEET

HITACHI ELEVATOR ASIA PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	825,749	942,882
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	1,502,871	1,502,871
Associated companies	15,586,581	15,586,581
Investment securities	1,404,739	1,404,739
Deferred assets	5,875,660	7,586,398
Deposits	2,312,584	2,265,134
Others	235,594	271,444
	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	26,918,029	28,617,167
INTANGIBLE ASSETS
Others	74,001	74,001
	----------------	----------------
TOTAL INTANGIBLE ASSETS	74,001	74,001
	----------------	----------------
TOTAL LONG TERM ASSETS	27,817,779	29,634,050
CURRENT ASSETS
Stocks	12,087,462	8,721,332
Contract work-in-progress	25,072,194	41,859,162
Trade debtors	20,682,850	40,092,578
Other debtors, deposits & prepayments	3,496,017	3,128,042
Amount due from holding company	484,250	10,493
Amount due from related companies	86,946	116,716
Cash & bank balances	27,120,980	11,581,682
	----------------	----------------
TOTAL CURRENT ASSETS	89,030,699	105,510,005
	----------------	----------------
TOTAL ASSET	116,848,478	135,144,055
	=============	=============
CURRENT LIABILITIES
Trade creditors	20,303,379	27,675,239
Other creditors & accruals	18,266,245	12,903,735
Deposits from customers	9,562,373	10,033,379
Amounts owing to holding company	846,830	940,346
Provision for taxation	-	694,271
Other liabilities	6,935,334	37,334,056
	----------------	----------------
TOTAL CURRENT LIABILITIES	55,914,161	89,581,026
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	33,116,538	15,928,979
	----------------	----------------
TOTAL NET ASSETS	60,934,317	45,563,029
	=============	=============
SHARE CAPITAL
Ordinary share capital	33,800,000	17,800,000
	----------------	----------------
TOTAL SHARE CAPITAL	33,800,000	17,800,000
RESERVES
Retained profit/(loss) carried forward	21,552,763	21,275,970
	----------------	----------------
TOTAL RESERVES	21,552,763	21,275,970
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	55,352,763	39,075,970
LONG TERM LIABILITIES
Others	5,581,554	6,487,059
	----------------	----------------
TOTAL LONG TERM LIABILITIES	5,581,554	6,487,059
	----------------	----------------
	60,934,317	45,563,029
	=============	=============

FINANCIAL RATIO

HITACHI ELEVATOR ASIA PTE. LTD.

TYPES OF FUNDS
Cash	27,120,980	11,581,682
Net Liquid Funds	27,120,980	11,581,682
Net Liquid Assets	21,029,076	7,207,647
Net Current Assets/(Liabilities)	33,116,538	15,928,979
Net Tangible Assets	60,860,316	45,489,028
Net Monetary Assets	15,447,522	720,588
BALANCE SHEET ITEMS
Total Borrowings	0	0
Total Liabilities	61,495,715	96,068,085
Total Assets	116,848,478	135,144,055
Net Assets	60,934,317	45,563,029
Net Assets Backing	55,352,763	39,075,970
Shareholders' Funds	55,352,763	39,075,970
Total Share Capital	33,800,000	17,800,000
Total Reserves	21,552,763	21,275,970
LIQUIDITY (Times)
Cash Ratio	0.49	0.13
Liquid Ratio	1.38	1.08
Current Ratio	1.59	1.18
WORKING CAPITAL CONTROL (Days)
Stock Ratio	81	111
Debtors Ratio	45	88
Creditors Ratio	49	63
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00
Liabilities Ratio	1.11	2.46
Times Interest Earned Ratio	0.00	0.00
Assets Backing Ratio	1.80	2.56
PERFORMANCE RATIO (%)
Operating Profit Margin	0.78	<4.37>
Net Profit Margin	0.17	<3.62>
Return On Net Assets	2.13	<15.87>
Return On Capital Employed	2.12	<15.85>
Return On Shareholders' Funds/Equity	0.50	<15.32>
Dividend Pay Out Ratio (Times)	0.00	0.07
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.87
UK Pound	1	Rs.101.10
Euro	1	Rs.84.65

INFORMATION DETAILS

Report Prepared by :

MNL

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%)

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.