MIRA INFORM REPORT

Report Date :

07.01.2014

IDENTIFICATION DETAILS

Name :	KIAN ANN ENGINEERING PTE. LTD.
Formerly Known As :	KIAN ANN ENGINEERING LTD
Registered Office :	7, Changi South Lane, 486119
Country :	Singapore
Financials (as on) :	30.06.2012
Date of Incorporation :	06.10.1971
Com. Reg. No.:	197101102-H
Legal Form :	Private Limited Company
Line of Business :	distributors of heavy machinery parts and diesel engine components for excavators, bulldozers, wheel loaders, motor graders, trucks, trailers, power generation sets and marine engines.
No. of Employees :	120 [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 :	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 – September 30, 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

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

EXECUTIVE SUMMARY

REGISTRATION NO.

:

197101102-H

COMPANY NAME

:

KIAN ANN ENGINEERING PTE. LTD.

FORMER NAME

:

KIAN ANN ENGINEERING LTD (08/03/2013)
KIAN ANN ENGINEERING COMPANY (PTE) LTD. (22/10/1996)

INCORPORATION DATE

:

06/10/1971

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

LISTED DATE

:

12/11/1996

REGISTERED ADDRESS

:

7, CHANGI SOUTH LANE, 486119, SINGAPORE.

BUSINESS ADDRESS

:

7 CHANGI SOUTH LANE, 486119, SINGAPORE.

TEL.NO.

:

65-62981011

FAX.NO.

:

65-62970087

WEB SITE

:

WWW.KIANANN.COM.SG

CONTACT PERSON

:

LAW PENG KWEE ( DIRECTOR )

PRINCIPAL ACTIVITY

:

WHOLESALE OF INDUSTRIAL MACHINERY AND EQUIPMENT

ISSUED AND PAID UP CAPITAL

:

437,828,928.00 ORDINARY SHARE, OF A VALUE OF SGD 80,186,285.15 

SALES

:

SGD 169,966,000 [2012]

NET WORTH

:

SGD 158,080,000 [2012]

STAFF STRENGTH

:

120 [2013]

BANKER (S)

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

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) wholesale of industrial machinery and equipment.

Share Capital History

Date	Issue & Paid Up Capital
08/11/2012	SGD 80,186,285.15

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
INVICTA ASIAN HOLDINGS PTE. LTD.	7 CHANGI SOUTH LANE, KIAN ANN BUILDING, 486119, SINGAPORE.	201223395	437,828,928.00	100.00
			---------------	------
			437,828,928.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
201026798C	SINGAPORE	KIAN ANN INVESTMENT PTE. LTD.	100.00	30/06/2012
	CHINA	KIAN ANN ENGINEERING TRADING (SHANGHAI) CO., LTD	100.00	30/06/2012
199702117E	SINGAPORE	KIAN ANN DISTRICENTRE PTE LTD	100.00	30/06/2012
	INDONESIA	PT. HANEAGLE HEAVYPARTS INDONESIA	98.50	30/06/2012
200702148H	SINGAPORE	KIAN CHUE HWA (INDUSTRIES ) PTE. LTD.	80.00	30/06/2012
198903303R	SINGAPORE	TRANSMEC ENGINEERING PTE LTD	51.00	30/06/2012

DIRECTORS

DIRECTOR 1

Name Of Subject	:	CRAIG BARNARD
Address	:	4, HAMILTON AVENUE, BRYANSTON, 2194, SOUTH AFRICA.
IC / PP No	:	M00029655
Nationality	:	SOUTH AFRICAN
Date of Appointment	:	06/03/2013

DIRECTOR 2

Name Of Subject	:	LOY SOO CHEW @ LI SHIZHOU
Address	:	20, JALAN TANI, 548558, SINGAPORE.
IC / PP No	:	S1803647I
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/12/2009

DIRECTOR 3

Name Of Subject	:	GEOFFREY EDWIN BALSHAW
Address	:	728 BROADBURY CIRCLE, CORNWALL HILL ESTATE, 0178, SOUTH AFRICA.
IC / PP No	:	A02650603
Nationality	:	SOUTH AFRICAN
Date of Appointment	:	06/03/2013

DIRECTOR 4

Name Of Subject	:	LAW PENG KWEE
Address	:	111, LORONG L TELOK KURAU, 425545, SINGAPORE.
IC / PP No	:	S0902615J
Nationality	:	SINGAPOREAN
Date of Appointment	:	06/10/1971

DIRECTOR 5

Name Of Subject	:	LAW CHER CHUAN
Address	:	41, LORONG G, TELOK KURAU, 426319, SINGAPORE.
IC / PP No	:	S1808503H
Nationality	:	SINGAPOREAN
Date of Appointment	:	16/09/2002

DIRECTOR 6

Name Of Subject	:	ANTHONY MICHAEL SINCLAIR
Address	:	6 GEORGIA BOULEVARD, AUGUSTA, GILLETTS, 6070, SOUTH AFRICA.
IC / PP No	:	470069705
Nationality	:	SOUTH AFRICAN
Date of Appointment	:	06/03/2013

MANAGEMENT

1)	Name of Subject	:	LAW PENG KWEE
	Position	:	DIRECTOR

AUDITOR

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

COMPANY SECRETARIES

1)	Company Secretary	:	TAN WEE KOK
	IC / PP No	:	S0021813H
	Address	:	124 JURONG EAST STREET 13, 10 - 17, IVORY HEIGHTS, 600124, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201308653	26/06/2013	N/A	OVERSEA-CHINESE BANKING CORPORATION LIMITED	SGD 170,500,000.00	Unsatisfied
C201308654	26/06/2013	N/A	OVERSEA-CHINESE BANKING CORPORATION LIMITED	SGD 170,500,000.00	Unsatisfied
C201308656	26/06/2013	N/A	OVERSEA-CHINESE BANKING CORPORATION LIMITED	SGD 170,500,000.00	Unsatisfied
C201308657	26/06/2013	N/A	OVERSEA-CHINESE BANKING CORPORATION LIMITED	SGD 170,500,000.00	Unsatisfied
C201308660	26/06/2013	N/A	OVERSEA-CHINESE BANKING CORPORATION LIMITED	SGD 170,500,000.00	Unsatisfied

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	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	ASIA AUSTRALIA NEW ZEALAND EUROPE RUSSIA MIDDLE EAST AFRICA PAPUA NEW GUINEA SOLOMON ISLANDS UNITED STATES
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

INDUSTRIAL MACHINERY AND EQUIPMENT

Total Number of Employees:
YEAR	2013	2010
GROUP	N/A	N/A
COMPANY	120	100

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) wholesale of industrial machinery and equipment. 

The Subject's principal activities are in the trading of heavy machinery and diesel engine parts. 

The principal businesses of its subsidiaries are that of: 
a) trading of heavy machinery, diesel engine, gears and engineering parts;
b) trading of commercial and industrial vehicles parts; 
c) manufacturing of machinery parts; and 
d) rental of office, warehouse, logistics and distribution service provider.

The Subject engages in the following activity: 
distributors of heavy machinery parts and diesel engine components for

excavators, bulldozers, wheel loaders, motor graders, trucks, trailers,

power generation sets and marine engines.

Products and services: 
* extensive range of machinery spare parts, diesel engine parts for
major models of bulldozers, trucks, excavators, power generation, 
sets and marine engines. 

The Subject is a member of the following entities:
* singapore chinese chambers of commerce 
* industry and member of independent distributors association (ida)

The Subject offers parts of diesel engine, electrical, filters, ground engaging tools, hydraullic, transmission and final drive, under carriage and other quality replacement brands. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6565873488
Current Telephone Number	:	65-62981011
Match	:	NO
Address Provided by Client	:	KIAN ANN BUILDING, 7 CHANGI SOUTH LANE, SINGAPORE 486119
Current Address	:	7 CHANGI SOUTH LANE, 486119, SINGAPORE.
Match	:	NO

Other Investigations

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

The address provided is incorrect.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2010 - 2012	]
Profit/(Loss) Before Tax	:	Increased	[	2010 - 2012	]
Return on Shareholder Funds	:	Acceptable	[	11.99%	]
Return on Net Assets	:	Acceptable	[	14.19%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.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	:	Unfavourable	[	214 Days	]
Debtor Ratio	:	Unfavourable	[	111 Days	]
Creditors Ratio	:	Unfavourable	[	65 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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	:	Favourable	[	1.47 Times	]
Current Ratio	:	Favourable	[	3.29 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	:	Favourable	[	40.43 Times	]
Gearing Ratio	:	Favourable	[	0.18 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 was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
Generally, the Subject's performance has improved with higher turnover and profit. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject 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 Subject : 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 :	TRADING
The wholesale and retail trade sector contracted by 1.5% in the fourth quarter of 2012, extending the 0.2% decline in the preceding quarter. For the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth in 2011. The sector was weighed down primarily by the wholesale trade segment. In 2012, the wholesale trade segment contracted by 1.0%, a reversal from the 1.4% growth in 2011. Growth of the retail trade segment also moderated to 2.0%, from 3.2% in the year 2011.
The domestic wholesale trade index grew by 1.2% in the fourth quarter of 2012, an improvement from the 5.4% decline in the third quarter. This was partly due to an increase in the sales of chemicals & chemical products and ship chandlers & bunkering. For the full year of 2012, the domestic wholesale trade index contracted by 2.2%, extending the 1.7% decline in 2011. The foreign wholesale trade index grew by 8.6% in the fourth quarter, an increase from the 6.6% growth in the third quarter. The expansion was partly due to resilient sales of petroleum & petroleum products. For the whole of 2012, the foreign wholesale trade index expanded by 9.1%, faster than the 4.3% increase in 2011.
In the fourth quarter of 2012, retail sales volume declined by 2.0%, extending the 0.3% decline in the third quarter. Excluding motor vehicles, retail sales volume grew by 0.4%, a slight moderation compared to the 1.5% gain in the third quarter of 2012. The sales volume of motor vehicles fell by 11% in the fourth quarter of 2012, after contracting by 6.1% in the third quarter. The sales of several discretionary items also declined in the fourth quarter. Besides, the sales of optical goods & books in 2012 fell by 3.6%, while the sales of telecommunications apparatus & computers declined by 1.4%.
For 2012 as a whole, retail sales volume grew by 1.3%, compared to the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012. Medical goods & toiletries registered the largest increase (9.3%) in sales, followed by telecommunications apparatus & computers (6.9%). By contrast, the sales of watches & jewellery (-2.2%) and optical goods & books (-3.6%) declined.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1971, the Subject is a Private Limited company, focusing on wholesale of industrial machinery and equipment. 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 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. 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. 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 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 Subject 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 158,080,000, 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. 

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry. 

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.

KIAN ANN ENGINEERING PTE. LTD.

Financial Year End	2012-06-30	2011-06-30	2010-06-30
Months	12	12	12
Consolidated Account	GROUP	GROUP	GROUP
Audited Account	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES
Financial Type	FULL	FULL	FULL
Currency	SGD	SGD	SGD
TURNOVER	169,966,000	162,315,000	149,364,000
Other Income	2,855,000	1,080,000	1,353,000
	----------------	----------------	----------------
Total Turnover	172,821,000	163,395,000	150,717,000
Costs of Goods Sold	<123,507,000>	<116,212,000>	<111,443,000>
	----------------	----------------	----------------
Gross Profit	49,314,000	47,183,000	39,274,000
	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	23,227,000	20,841,000	16,575,000
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	23,227,000	20,841,000	16,575,000
Taxation	<3,808,000>	<3,239,000>	<2,959,000>
	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	19,419,000	17,602,000	13,616,000
Minority interests	<461,000>	<832,000>	<369,000>
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	18,958,000	16,770,000	13,247,000
	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	18,958,000	16,770,000	13,247,000
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	60,071,000	47,904,000	38,252,000
	----------------	----------------	----------------
As restated	60,071,000	47,904,000	38,252,000
	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	79,029,000	64,674,000	51,499,000
TRANSFER TO RESERVES - Statutory	-	-	<91,000>
TRANSFER TO RESERVES - General	<149,000>	<112,000>	-
DIVIDENDS - Ordinary (paid & proposed)	<4,836,000>	<4,491,000>	<3,504,000>
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	74,044,000	60,071,000	47,904,000
	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	36,000	47,000	52,000
Hire purchase	-	-	1,000
Lease interest	11,000	5,000	-
Term loan / Borrowing	220,000	253,000	399,000
Others	322,000	167,000	263,000
	----------------	----------------	----------------
	589,000	472,000	715,000
	=============	=============	=============

BALANCE SHEET

KIAN ANN ENGINEERING PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	26,109,000	23,664,000	23,806,000
LONG TERM INVESTMENTS/OTHER ASSETS
Investment properties	727,000	2,397,000	2,464,000
Investments	171,000	157,000	157,000
Deferred assets	233,000	210,000	83,000
Others	13,000,000	13,000,000	-
	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	14,131,000	15,764,000	2,704,000
INTANGIBLE ASSETS
Own goodwill	1,200,000	1,200,000	1,200,000
Goodwill on consolidation	-	-	1,366,000
Computer software	184,000	-	-
Trademarks	840,000	-	-
Others	-	1,086,000	-
	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	2,224,000	2,286,000	2,566,000
	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	42,464,000	41,714,000	29,076,000
CURRENT ASSETS
Stocks	99,602,000	83,377,000	69,798,000
Trade debtors	51,806,000	50,875,000	46,694,000
Other debtors, deposits & prepayments	2,290,000	1,926,000	275,000
Short term deposits	16,962,000	13,160,000	17,188,000
Loans & advances - current portion	-	-	1,009,000
Cash & bank balances	9,224,000	10,176,000	10,480,000
Others	180,000	232,000	194,000
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	180,064,000	159,746,000	145,638,000
	----------------	----------------	----------------
TOTAL ASSET	222,528,000	201,460,000	174,714,000
	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	21,828,000	22,513,000	15,426,000
Other creditors & accruals	5,649,000	5,340,000	5,496,000
Hire purchase & lease creditors	39,000	22,000	4,000
Bank overdraft	473,000	636,000	759,000
Short term borrowings/Term loans	6,102,000	2,750,000	3,550,000
Other borrowings	1,053,000	474,000	-
Bill & acceptances payable	12,371,000	13,985,000	4,680,000
Amounts owing to related companies	16,000	32,000	-
Amounts owing to director	3,170,000	2,962,000	2,399,000
Provision for taxation	3,965,000	3,345,000	2,914,000
Other liabilities	10,000	45,000	-
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	54,676,000	52,104,000	35,228,000
	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	125,388,000	107,642,000	110,410,000
	----------------	----------------	----------------
TOTAL NET ASSETS	167,852,000	149,356,000	139,486,000
	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	80,245,000	80,245,000	80,245,000
	----------------	----------------	----------------
TOTAL SHARE CAPITAL	80,245,000	80,245,000	80,245,000
RESERVES
Exchange equalisation/fluctuation reserve	<313,000>	<527,000>	132,000
General reserve	882,000	745,000	-
Retained profit/(loss) carried forward	74,044,000	60,071,000	47,904,000
Others	<59,000>	-	642,000
	----------------	----------------	----------------
TOTAL RESERVES	74,554,000	60,289,000	48,678,000
MINORITY INTEREST	3,281,000	2,827,000	1,937,000
	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	158,080,000	143,361,000	130,860,000
LONG TERM LIABILITIES
Long term loans	6,404,000	2,750,000	5,500,000
Other long term borrowings	1,900,000	1,950,000	1,950,000
Lease obligations	38,000	33,000	-
Hire purchase creditors	-	-	3,000
Deferred taxation	1,430,000	1,262,000	1,173,000
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	9,772,000	5,995,000	8,626,000
	----------------	----------------	----------------
	167,852,000	149,356,000	139,486,000
	=============	=============	=============

FINANCIAL RATIO

KIAN ANN ENGINEERING PTE. LTD.

TYPES OF FUNDS
Cash	26,186,000	23,336,000	27,668,000
Net Liquid Funds	13,342,000	8,715,000	22,229,000
Net Liquid Assets	25,786,000	24,265,000	40,612,000
Net Current Assets/(Liabilities)	125,388,000	107,642,000	110,410,000
Net Tangible Assets	165,628,000	147,070,000	136,920,000
Net Monetary Assets	16,014,000	18,270,000	31,986,000
BALANCE SHEET ITEMS
Total Borrowings	28,380,000	22,600,000	16,446,000
Total Liabilities	64,448,000	58,099,000	43,854,000
Total Assets	222,528,000	201,460,000	174,714,000
Net Assets	167,852,000	149,356,000	139,486,000
Net Assets Backing	158,080,000	143,361,000	130,860,000
Shareholders' Funds	158,080,000	143,361,000	130,860,000
Total Share Capital	80,245,000	80,245,000	80,245,000
Total Reserves	74,554,000	60,289,000	48,678,000
LIQUIDITY (Times)
Cash Ratio	0.48	0.45	0.79
Liquid Ratio	1.47	1.47	2.15
Current Ratio	3.29	3.07	4.13
WORKING CAPITAL CONTROL (Days)
Stock Ratio	214	187	171
Debtors Ratio	111	114	114
Creditors Ratio	65	71	51
SOLVENCY RATIOS (Times)
Gearing Ratio	0.18	0.16	0.13
Liabilities Ratio	0.41	0.41	0.34
Times Interest Earned Ratio	40.43	45.15	24.18
Assets Backing Ratio	2.06	1.83	1.71
PERFORMANCE RATIO (%)
Operating Profit Margin	13.67	12.84	11.10
Net Profit Margin	11.15	10.33	8.87
Return On Net Assets	14.19	14.27	12.40
Return On Capital Employed	13.70	13.74	11.94
Return On Shareholders' Funds/Equity	11.99	11.70	10.12
Dividend Pay Out Ratio (Times)	0.26	0.27	0.26
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.33
UK Pound	1	Rs.101.99
Euro	1	Rs.84.62

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.