MIRA INFORM REPORT

Report Date :

06.02.2014

IDENTIFICATION DETAILS

Name :	MITSUBISHI HEAVY INDUSTRIES ENGINE SYSTEM ASIA PTE. LTD.
Formerly Known As :	MHI ENGINE SYSTEM ASIA PTE. LTD
Registered Office :	3, Tuas Avenue 12, 639024
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	20.06.1981
Com. Reg. No.:	198102850-N
Legal Form :	Private Limited Company
Line of Business :	· Engaged in manufacturing and repairing of electrical generators.  Marketing of Mitsubishi Diesel Generators, Marine Engine, Engine Management Service Distributor of Mitsubishi genuine parts & provides service maintenance for diesel generators
No. of Employees :	72 [2014]

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 :	Slow but Correct
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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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.

:

198102850-N

COMPANY NAME

:

MITSUBISHI HEAVY INDUSTRIES ENGINE SYSTEM ASIA PTE. LTD.

FORMER NAME

:

MHI ENGINE SYSTEM ASIA PTE. LTD. (02/01/2014)
MHI SOUTH EAST ASIA PTE LTD (03/04/2007)

INCORPORATION DATE

:

20/06/1981

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

3, TUAS AVENUE 12, 639024, SINGAPORE.

BUSINESS ADDRESS

:

3, TUAS AVENUE 12, 639024, SINGAPORE.

TEL.NO.

:

65-68622202

FAX.NO.

:

65-68625728

CONTACT PERSON

:

MOTOI KAWASHIMA ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

MANUFACTURE AND REPAIR OF ELECTRICAL GENERATORS

ISSUED AND PAID UP CAPITAL

:

12,235,282.00 ORDINARY SHARE, OF A VALUE OF SGD 12,235,282.00 

SALES

:

SGD 312,135,050 [2012]

NET WORTH

:

SGD 48,799,357 [2012]

STAFF STRENGTH

:

72 [2014]

BANKER (S)

:

BANK OF TOKYO-MITSUBISHI (MALAYSIA) BHD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

POOR

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 electrical generators.

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

Share Capital History

Date	Issue & Paid Up Capital
15/01/2014	SGD 12,235,282.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MITSUBISHI HEAVY INDUSTRIES, LTD	16-5, KONAN 2-CHOME, MINATO-KU, TOKYO 108-8215, JAPAN.	T03UF1477	12,235,282.00	100.00
			---------------	------
			12,235,282.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	CHINA	MHI ENGINE SYSTEM SHENZHEN LTD	100.00	31/12/2012
	MIDDLE EAST	MHI ENGINE SYSTEM MIDDLE EAST	100.00	31/12/2012
	INDONESIA	PT MHI ENGINE SYSTEM INDONESIA	100.00	31/12/2012
	PHILIPPINES	MHI ENGINE SYSTEM PHILIPPINES, INCORPORATED	100.00	31/12/2012
	HONG KONG	MHI ENGINE SYSTEM HONG KONG LTD	100.00	31/12/2012
	VIETNAM	MHI ENGINE SYSTEM VIETNAM CO. LTD	100.00	31/12/2012

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MITSUHIKO KAWAI
Address	:	1497-22, SHIMOTSURUMA, YAMATO KANAGAWA, 242-0001, JAPAN.
IC / PP No	:	TG2494204
Nationality	:	JAPANESE
Date of Appointment	:	02/04/2012

DIRECTOR 2

Name Of Subject	:	MASUDA SHUICHI
Address	:	1-19-8, UTSUKUSIGAOKA, AOBA-KU, YOKOHAMA-SHI, KANAGAWA 225-0002, JAPAN.
IC / PP No	:	TG4163342
Nationality	:	JAPANESE
Date of Appointment	:	02/04/2007

DIRECTOR 3

Name Of Subject	:	HIDEAKI SHIMA
Address	:	6, MARINA BOULEVARD, 45-21, THE SAIL @ MARINA BAY, 018985, SINGAPORE.
IC / PP No	:	G5403936R
Nationality	:	JAPANESE
Date of Appointment	:	31/03/2013

DIRECTOR 4

Name Of Subject	:	MOTOI KAWASHIMA
Address	:	1-20-15, YOKOYAMADAI, SAGAMIHARA, JAPAN.
IC / PP No	:	TH2783949
Nationality	:	JAPANESE
Date of Appointment	:	01/07/2013

MANAGEMENT

1)	Name of Subject	:	MOTOI KAWASHIMA
	Position	:	MANAGING DIRECTOR

AUDITOR

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

COMPANY SECRETARIES

1)	Company Secretary	:	JOANNA LIM LAN SIM
	IC / PP No	:	S1572261D
	Address	:	165, TAMPINES STREET 12, 09-305, 521165, SINGAPORE.

2)	Company Secretary	:	TAY TUAN LENG
	IC / PP No	:	S7432140B
	Address	:	635, PASIR RIS DRIVE 1, 11-600, 510635, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

BANK OF TOKYO-MITSUBISHI (MALAYSIA) BHD

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. 

No legal action was found in our databank. 

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	[		]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[	X	]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	WORLDWIDE
Credit Term	:	AS AGREED
Payment Mode	:	LETTER OF CREDIT (LC)

OPERATIONS

Products manufactured

:

ELECTRICAL GENERATORS

Services

:

REPAIR OF ELECTRICAL GENERATORS

Total Number of Employees:
YEAR	2014	2013
GROUP	N/A	N/A
COMPANY	72	72

Branch

:

NO

Other Information:

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

Marketing of Mitsubishi Diesel Generators, Marine Engine, Engine Management Service

Distributor of Mitsubishi genuine parts & provides service maintenance for diesel generators

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-68622202
Match	:	N/A
Address Provided by Client	:	NO 3 TUAS AVENUE 12 SINGAPORE 629193
Current Address	:	3, TUAS AVENUE 12, 639024, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	13.82%	]
Profit/(Loss) Before Tax	:	Increased	[	239.70%	]
Return on Shareholder Funds	:	Acceptable	[	21.87%	]
Return on Net Assets	:	Acceptable	[	25.18%	]
The lower turnover could be due to the intense market competition.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	54 Days	]
Debtor Ratio	:	Unfavourable	[	104 Days	]
Creditors Ratio	:	Unfavourable	[	153 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Acceptable	[	0.88 Times	]
Current Ratio	:	Unfavourable	[	1.21 Times	]
The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Favourable	[	8,313.90 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. 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 :
Due to the efficient control of its operating costs, the Subject was able to remain profitable despite lower turnover achieved during the year. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : STABLE

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 1981, the Subject is a Private Limited company, focusing on manufacture and repair of electrical generators. The Subject has been in business for over 3 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 holding company 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. The Subject has a total workforce of 72 employees in its business operations. 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. 

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its 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 48,799,357, the Subject should be able to maintain its business in the near terms. 

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 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. 

The poor payment habit may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies. 

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 promptly.

PROFIT AND LOSS ACCOUNT

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

MITSUBISHI HEAVY INDUSTRIES ENGINE SYSTEM ASIA PTE. LTD.

Financial Year End	2012-12-31	2011-12-31
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	312,135,050	362,184,790
Other Income	8,085,810	426,438
	----------------	----------------
Total Turnover	320,220,860	362,611,228
Costs of Goods Sold	(300,571,780)	(347,860,083)
	----------------	----------------
Gross Profit	19,649,080	14,751,145
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	12,286,464	3,616,905
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	12,286,464	3,616,905
Taxation	(1,615,233)	(435,180)
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	10,671,231	3,181,725
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	25,892,844	23,684,119
	----------------	----------------
As restated	25,892,844	23,684,119
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	36,564,075	26,865,844
DIVIDENDS - Ordinary (paid & proposed)	-	(973,000)
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	36,564,075	25,892,844
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Term loan / Borrowing	1,478	28,995
	----------------	----------------
	1,478	28,995
	=============	=============

BALANCE SHEET

MITSUBISHI HEAVY INDUSTRIES ENGINE SYSTEM ASIA PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	5,181,418	2,814,083
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	14,034,303	14,034,303
Investments	32,900	32,900
Deferred assets	299,238	812,057
	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	14,366,441	14,879,260
	----------------	----------------
TOTAL LONG TERM ASSETS	19,547,859	17,693,343
CURRENT ASSETS
Stocks	46,561,305	48,949,533
Trade debtors	88,768,001	134,259,742
Other debtors, deposits & prepayments	2,850,247	159,188
Amount due from holding company	174,797	201,204
Amount due from subsidiary companies	775,328	801,716
Cash & bank balances	19,427,987	22,875,620
Amount owing by customer	9,714,400	6,369,510
Others	521,846	420,700
	----------------	----------------
TOTAL CURRENT ASSETS	168,793,911	214,037,213
	----------------	----------------
TOTAL ASSET	188,341,770	231,730,556
	=============	=============
CURRENT LIABILITIES
Trade creditors	125,975,326	179,165,065
Other creditors & accruals	12,463,748	13,282,548
Provision for taxation	1,103,339	1,154,817
	----------------	----------------
TOTAL CURRENT LIABILITIES	139,542,413	193,602,430
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	29,251,498	20,434,783
	----------------	----------------
TOTAL NET ASSETS	48,799,357	38,128,126
	=============	=============
SHARE CAPITAL
Ordinary share capital	12,235,282	12,235,282
	----------------	----------------
TOTAL SHARE CAPITAL	12,235,282	12,235,282
RESERVES
Retained profit/(loss) carried forward	36,564,075	25,892,844
	----------------	----------------
TOTAL RESERVES	36,564,075	25,892,844
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	48,799,357	38,128,126
	----------------	----------------
	48,799,357	38,128,126
	=============	=============

FINANCIAL RATIO

MITSUBISHI HEAVY INDUSTRIES ENGINE SYSTEM ASIA PTE. LTD.

TYPES OF FUNDS
Cash	19,427,987	22,875,620
Net Liquid Funds	19,427,987	22,875,620
Net Liquid Assets	(17,309,807)	(28,514,750)
Net Current Assets/(Liabilities)	29,251,498	20,434,783
Net Tangible Assets	48,799,357	38,128,126
Net Monetary Assets	(17,309,807)	(28,514,750)
BALANCE SHEET ITEMS
Total Borrowings	0	0
Total Liabilities	139,542,413	193,602,430
Total Assets	188,341,770	231,730,556
Net Assets	48,799,357	38,128,126
Net Assets Backing	48,799,357	38,128,126
Shareholders' Funds	48,799,357	38,128,126
Total Share Capital	12,235,282	12,235,282
Total Reserves	36,564,075	25,892,844
LIQUIDITY (Times)
Cash Ratio	0.14	0.12
Liquid Ratio	0.88	0.85
Current Ratio	1.21	1.11
WORKING CAPITAL CONTROL (Days)
Stock Ratio	54	49
Debtors Ratio	104	135
Creditors Ratio	153	188
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00
Liabilities Ratio	2.86	5.08
Times Interest Earned Ratio	8,313.90	125.74
Assets Backing Ratio	3.99	3.12
PERFORMANCE RATIO (%)
Operating Profit Margin	3.94	1.00
Net Profit Margin	3.42	0.88
Return On Net Assets	25.18	9.56
Return On Capital Employed	25.18	9.56
Return On Shareholders' Funds/Equity	21.87	8.34
Dividend Pay Out Ratio (Times)	0.00	0.31
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.45
UK Pound	1	Rs.102.00
Euro	1	Rs.84.35

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.