MIRA INFORM REPORT

Report Date :

16.09.2013

IDENTIFICATION DETAILS

Name :	KIM ANN ENGINEERING PRIVATE LIMITED
Registered Office :	3C, Joo Koon Circle, 629035
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	07.05.1974
Com. Reg. No.:	197400799-C
Legal Form :	Exempt Private
Line of Business :	Subject is engaged in Steel Services And Machining.
No. of Employees :	168

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 :	Good
Payment Behaviour :	Regular
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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

Adopted abbreviations :	SC - Subject Company (the company enquired by you)
	N/A - Not Applicable

EXECUTIVE SUMMARY

REGISTRATION NO.

:

197400799-C

COMPANY NAME

:

KIM ANN ENGINEERING PRIVATE LIMITED

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/05/1974

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

3C, JOO KOON CIRCLE, 629035, SINGAPORE.

BUSINESS ADDRESS

:

10 & 12, SIXTH LOK YANG ROAD, 628108, SINGAPORE.

TEL.NO.

:

65-68624888

FAX.NO.

:

65-68612066

WEB SITE

:

WWW.KIMANN.COM

CONTACT PERSON

:

LOW SIM YAM ( DIRECTOR )

PRINCIPAL ACTIVITY

:

STEEL SERVICES AND MACHINING

ISSUED AND PAID UP CAPITAL

:

20,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 20,000,000.00

SALES

:

SGD 91,494,085 [2012]

NET WORTH

:

SGD 87,786,469 [2012]

STAFF STRENGTH

:

168 [2013]

BANKER (S)

:

UNITED OVERSEAS BANK LIMITED

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

HISTORY / BACKGROUND

The SC is an exempt private company whose shares are not held by any corporate body and has no more than 20 shareholders who are all natural persons. An exempt company is a type of private limited company. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, suing or be sued by other companies. An exempt private company with an annual turnover of less than SGD5 million are exempted from statutory auditing requirements. Instead of filing audited annual accounts, the SC has to file in a document duly signed by its director in charge of its finance and the company secretary stating that the SC is able to meet all its obligations as and when they fall due. The SC is not required to have their accounts audited. However, the SC will prepare unaudited accounts for purposes of AGMs and filing with Registry Office if it is unable to meet all its obligations as and when they fall due .

The SC is principally engaged in the (as a / as an) steel services and machining.

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
LOW SIM ANN +	4B ELLIOT ROAD, 458691, SINGAPORE.	S1145147J	4,000,000.00	20.00
LOW SENG PHEOW +	160 HAIG ROAD, 16-02, HAIG COURT, 438795, SINGAPORE.	S1237426G	4,000,000.00	20.00
LOW SIM YAM +	55 JALAN LIMAU MANIS, BEDOK GARDENS, 468383, SINGAPORE.	S0015095I	4,000,000.00	20.00
LOW SIM SEAH +	80 JALAN SIMPANG BEDOK, CANARY PARK, 488210, SINGAPORE.	S0030017I	4,000,000.00	20.00
LAU TAI SAN +	1 BEDOK CLOSE, 469867, SINGAPORE.	S0206887G	4,000,000.00	20.00
			---------------	------
			20,000,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
198904960D	SINGAPORE	KIMANN MARKETING PTE LTD	100.00	31/12/2012
601379W	MALAYSIA	KIMSTAHL SPECIALTY METALS SDN. BHD.	100.00	31/12/2012
011243	CHINA	KIMANN (SUZHOU) METAL MATERIAL CO., LTD	100.00	31/12/2012
210467M	MALAYSIA	KIMSTAHL SDN. BHD.	58.00	31/12/2012
209172P	MALAYSIA	WINGKOH SPECIALTY METALS SDN. BHD.	55.00	31/12/2012

DIRECTORS

DIRECTOR 1

Name Of Subject	:	LOW SIM ANN
Address	:	4B ELLIOT ROAD, 458691, SINGAPORE.
IC / PP No	:	S1145147J
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/01/2000

DIRECTOR 2

Name Of Subject	:	LOW SIM YAM
Address	:	55 JALAN LIMAU MANIS, BEDOK GARDENS, 468383, SINGAPORE.
IC / PP No	:	S0015095I
Nationality	:	SINGAPOREAN
Date of Appointment	:	14/05/1974

DIRECTOR 3

Name Of Subject	:	LOW SIM SEAH
Address	:	80 JALAN SIMPANG BEDOK, CANARY PARK, 488210, SINGAPORE.
IC / PP No	:	S0030017I
Nationality	:	SINGAPOREAN
Date of Appointment	:	14/05/1974

DIRECTOR 4

Name Of Subject	:	LOW SENG PHEOW
Address	:	160 HAIG ROAD, 16-02, HAIG COURT, 438795, SINGAPORE.
IC / PP No	:	S1237426G
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/01/2000

DIRECTOR 5

Name Of Subject	:	LAU TAI SAN
Address	:	1 BEDOK CLOSE, 469867, SINGAPORE.
IC / PP No	:	S0206887G
Nationality	:	SINGAPOREAN
Date of Appointment	:	14/05/1974

MANAGEMENT

1)	Name of Subject	:	LOW SIM YAM
	Position	:	DIRECTOR

AUDITOR

Auditor	:	KPMG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	LOW SIM YAM
	IC / PP No	:	S0015095I
	Address	:	55 JALAN LIMAU MANIS, BEDOK GARDENS, 468383, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

UNITED OVERSEAS BANK LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201306616	15/05/2013	N/A	UNITED OVERSEAS BANK LIMITED	N/A	Unsatisfied

LEGAL CHECK AGAINST SC

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

LEGAL ACTION
Code No	:	99	Case No	:	531
Year	:	2008	Place	:	SINGAPORE
Court	:	DISTRICT COURT
Date Filed	:	14/02/2008
Solicitor	:	YAP TAI SAN PAUL
Solicitor Ref	:	JC-INS-PC-40125-06-IL
Solicitor Firm	:	VISION LAW LLC
Plaintiff	:	CHEW JOSEPHINE
Defendants	:	KIM ANN ENGINEERING PRIVATE LIMITED (197400799)
Amount Claimed	:	2006.15
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 wo 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 SC 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	:	ASIA
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

The SC's customer base consists of industrial players from the Precision Engineering, Oil & Gas, Electronics and Aerospace / Defense segments. 

OPERATIONS

Services

:

STEEL SERVICES AND MACHINING

Total Number of Employees:
YEAR	2013
GROUP	N/A
COMPANY	168

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) steel services and machining. 

The SC is a “one-stop supply service centre” offering a comprehensive range of specialty metals and related value-adding services such as material cutting, sizing, machining (blanking, milling, grinding) and heat treatment.

The SC Offers the followings:
* Products / Metal sales
* Heat Treatment services
* Value-added Processing services
* Supply Chain Management (SCM) services

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	65 68634162
Current Telephone Number	:	65-68624888
Match	:	NO
Address Provided by Client	:	3C, JOO KOON CIRCLE, SINGAPORE 628035.
Current Address	:	10 & 12, SIXTH LOK YANG ROAD, 628108, SINGAPORE.
Match	:	NO

Other Investigations

On 4th September 2013 we contacted on of the staff from the SC and she provided some information on the SC.

The address provided is under renovation.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	6.20%	]
Profit/(Loss) Before Tax	:	Decreased	[	10.39%	]
Return on Shareholder Funds	:	Unfavourable	[	7.90%	]
Return on Net Assets	:	Acceptable	[	10.39%	]
The lower turnover could be due to the unfavourable market conditions.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Unfavourable	[	210 Days	]
Debtor Ratio	:	Unfavourable	[	88 Days	]
Creditors Ratio	:	Favourable	[	43 Days	]
The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The SC had a favourable creditors' ratio where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.81 Times	]
Current Ratio	:	Favourable	[	3.63 Times	]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Favourable	[	16.95 Times	]
Gearing Ratio	:	Favourable	[	0.02 Times	]
The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
The SC's performance deteriorated over the years with lower turnover and profit. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC : STRONG

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 :	ECONOMY
According to Ministry of Trade and Industry (MTI), the Singapore economy is expected to grow by 1.0 to 3.0% in 2013 as growth in the global economy is likely to remain subdued despite macroeconomic conditions stablising in recent months of 2013.
However, the global economic outlook is still clouded with uncertainties. Notably, concerns remain over the extent of the fiscal cutback with the budget sequester in the US and potential flareup of the debt crisis in the Eurozone. Should any of these risks materialise, Singapore's economic growth could come in lower than expected.
Although resilient domestic demand in emerging Asia will provide some support to global demand, it will not fully mitigate the effects of an economic slowdown in the advanced economies. Consequently, Singapore's externally-oriented sectors such as electronics and wholesale trade will continue to perform poorly, while the financial services sector will be affected by heightened uncertainties in the external environment. Nevertheless, there will be some modest support to growth from the biomedical manufacturing cluster and tourism-related sectors. The former will likely see increased production of active pharmaceutical ingredients and biologics while the latter will benefit from rising visitor arrivals from the region.
For the whole of 2012, Singapore's GDP growth slowed to 1.3%, from 5.2% in 2011, mainly due to weakness in the externally-oriented sectors. Manufacturing sector growth slowed sharply from 7.8% in the year 2011 to 0.1%. The hudge decline was largely due to a rebound in the output of the biomedical manufacturing and transport engineering clusters, which together helped to mitigate part of the fall in output in the electronics cluster. By contrast, the construction sector growth accelerated from 6.3% to 8.2% in 2012, due to the expansion in both public and private building activities.
Growth in the services producing industries also moderated to 1.2% in 2012, compared to 4.6% in 2011. This was mainly due to the slowdown in wholesale and retail trade, accommodation and food services as well as other services industries. In particular, the wholesale and retail trade sector contracted by 0.7%, compared to the 1.6% growth in year 2011. The accommodation and food services as well as other services industries posted lower gains of 2.8% and 0.1% respectively, compared to 8.2% and 6.3% in 2011.
For the whole of 2012, all sectors, except the wholesale and retail trade, contributed to growth. Business services was the largest contributor with 0.4 percentage-points, followed by construction with 0.3 percentage-points and transportation and storage at 0.2 percentagepoints. Besides, growth in total demand moderated to 2.4%, compared to 4.2% in 2011. Domestic demand was the key contributor to total demand growth, accounting for 2.2 percentage-points, or over 90 per cent, of the increase.
In 2012, total domestic demand rose by 9.7%, following the 6.5% increase in 2011. The growth in total domestic demand was broad-based across consumption, gross fixed capital formation (GFCF) and changes in inventories. The total consumption expenditure in 2012 grew slightly by 0.9%, easing from the 3.7% growth in 2011. Public consumption expenditure fell by 3.6%, reversing the 0.5% growth in 2011. Private consumption expenditure registered a 2.2% gain, moderating from the 4.6% increase in the preceding year.
Overall, the Singapore economy is expected to grow by 1.0 to 3.0% in 2013.
OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1974, the SC is a Exempt Private company, focusing on steel services and machining. With its long presence in the industry coupled with its vast experiences in the business, the SC should have built up certain goodwill with its clients over times. The SC has strong capital position. We are confident with the SC's business and its future growth prospect. 

Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. The SC is a fairly large and rapidly growing company with over 168 staff in its operations Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC. 

The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC 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 lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at SGD 87,786,469, the SC should be able to maintain its business in the near terms. 

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC'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 SC has a good control over its resources. 

Overall, the SC's payment habit is good as the SC 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 maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the SC's future performance is very much depend on its marketing strategies in order to retain its position in the market. 

Based on the above condition, we recommend credit be granted to the SC promptly.

PROFIT AND LOSS ACCOUNT

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

KIM ANN ENGINEERING PRIVATE LIMITED

Financial Year End	2012-12-31	2011-12-31
Months	12	12
Consolidated Account	GROUP	GROUP
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	SGD	SGD
TURNOVER	91,494,085	97,543,319
Other Income	2,758,482	2,743,280
	----------------	----------------
Total Turnover	94,252,567	100,286,599
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	8,742,194	9,756,295
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	8,742,194	9,756,295
Taxation	<1,715,089>	<1,017,542>
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	7,027,105	8,738,753
Minority interests	<96,354>	9,551
	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	6,930,751	8,748,304
	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	6,930,751	8,748,304
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	65,863,020	77,114,716
	----------------	----------------
As restated	65,863,020	77,114,716
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	72,793,771	85,863,020
TRANSFER TO RESERVES - General	<228,044>	-
CAPITALISATION FOR BONUS ISSUES	-	<15,000,000>
DIVIDENDS - Ordinary (paid & proposed)	<6,000,000>	<5,000,000>
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	66,565,727	65,863,020
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	4,997	-
Lease interest	8,804	8,066
Term loan / Borrowing	53,070	51,146
Trust receipts	481,293	516,334
	----------------	----------------
	548,164	575,546
	=============	=============

BALANCE SHEET

KIM ANN ENGINEERING PRIVATE LIMITED

ASSETS EMPLOYED:
FIXED ASSETS	13,320,851	11,914,178
	----------------	----------------
TOTAL LONG TERM ASSETS	13,320,851	11,914,178
CURRENT ASSETS
Stocks	52,753,635	53,339,194
Trade debtors	22,131,985	24,917,512
Other debtors, deposits & prepayments	731,562	652,865
Short term deposits	216,485	9,713,200
Cash & bank balances	29,285,240	25,108,194
	----------------	----------------
TOTAL CURRENT ASSETS	105,118,907	113,730,965
	----------------	----------------
TOTAL ASSET	118,439,758	125,645,143
	=============	=============
CURRENT LIABILITIES
Trade creditors	10,784,898	13,581,410
Other creditors & accruals	576,517	428,445
Bank overdraft	216,648	-
Short term borrowings/Term loans	126,201	511,382
Other liabilities & accruals	15,339,560	21,228,772
Provision for taxation	1,757,913	1,592,994
Lease payables	195,815	119,824
	----------------	----------------
TOTAL CURRENT LIABILITIES	28,997,552	37,462,827
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	76,121,355	76,268,138
	----------------	----------------
TOTAL NET ASSETS	89,442,206	88,182,316
	=============	=============
SHARE CAPITAL
Ordinary share capital	20,000,000	20,000,000
	----------------	----------------
TOTAL SHARE CAPITAL	20,000,000	20,000,000
RESERVES
Exchange equalisation/fluctuation reserve	<336,306>	<175,572>
Retained profit/(loss) carried forward	66,565,727	65,863,020
	----------------	----------------
TOTAL RESERVES	66,229,421	65,687,448
MINORITY INTEREST	1,557,048	1,575,457
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	87,786,469	87,262,905
LONG TERM LIABILITIES
Long term loans	1,094,569	650,557
Lease obligations	320,698	24,028
Deferred taxation	240,470	244,826
	----------------	----------------
TOTAL LONG TERM LIABILITIES	1,655,737	919,411
	----------------	----------------
	89,442,206	88,182,316
	=============	=============

FINANCIAL RATIO

KIM ANN ENGINEERING PRIVATE LIMITED

TYPES OF FUNDS
Cash	29,501,725	34,821,394
Net Liquid Funds	29,285,077	34,821,394
Net Liquid Assets	23,367,720	22,928,944
Net Current Assets/(Liabilities)	76,121,355	76,268,138
Net Tangible Assets	89,442,206	88,182,316
Net Monetary Assets	21,711,983	22,009,533
BALANCE SHEET ITEMS
Total Borrowings	1,758,116	1,185,967
Total Liabilities	30,653,289	38,382,238
Total Assets	118,439,758	125,645,143
Net Assets	89,442,206	88,182,316
Net Assets Backing	87,786,469	87,262,905
Shareholders' Funds	87,786,469	87,262,905
Total Share Capital	20,000,000	20,000,000
Total Reserves	66,229,421	65,687,448
LIQUIDITY (Times)
Cash Ratio	1.02	0.93
Liquid Ratio	1.81	1.61
Current Ratio	3.63	3.04
WORKING CAPITAL CONTROL (Days)
Stock Ratio	210	200
Debtors Ratio	88	93
Creditors Ratio	43	51
SOLVENCY RATIOS (Times)
Gearing Ratio	0.02	0.01
Liabilities Ratio	0.35	0.44
Times Interest Earned Ratio	16.95	17.95
Assets Backing Ratio	4.47	4.41
PERFORMANCE RATIO (%)
Operating Profit Margin	9.55	10.00
Net Profit Margin	7.58	8.97
Return On Net Assets	10.39	11.72
Return On Capital Employed	10.19	11.51
Return On Shareholders' Funds/Equity	7.90	10.03
Dividend Pay Out Ratio (Times)	0.87	0.57
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.79
UK Pound	1	Rs.100.70
Euro	1	Rs.84.67

INFORMATION DETAILS

Report Prepared by :

NIS

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.