MIRA INFORM REPORT

Report Date :

14.01.2014

IDENTIFICATION DETAILS

Name :	MAKINO ASIA PTE LTD
Formerly Known As :	LEBLOND MAKINO ASIA PTE LTD
Registered Office :	2, Gul Avenue, 629649
Country :	Singapore
Financials (as on) :	31.03.2013
Date of Incorporation :	23.05.1973
Com. Reg. No.:	197300960-K
Legal Form :	Private Limited Company
Line of Business :	Engaged in manufacturing and repairing of machinery and machine- tools - metal cutting types
No. of Employees :	500 [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 :	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.	:	197300960-K
COMPANY NAME	:	MAKINO ASIA PTE LTD
FORMER NAME	:	LEBLOND MAKINO ASIA PTE LTD (07/05/1992)
INCORPORATION DATE	:	23/05/1973
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	2, GUL AVENUE, 629649, SINGAPORE.
BUSINESS ADDRESS	:	2 GUL AVENUE, 629649, SINGAPORE.
TEL.NO.	:	65-68615722
FAX.NO.	:	65-68611600
WEB SITE	:	WWW.MAKINO.COM.SG
CONTACT PERSON	:	DR MOH CHONG TAU ( DIRECTOR )
PRINCIPAL ACTIVITY	:	MANUFACTURE AND REPAIR OF MACHINERY AND MACHINE- TOOLS - METAL CUTTING TYPES
ISSUED AND PAID UP CAPITAL	:	1,641,377.00 ORDINARY SHARE, OF A VALUE OF SGD 13,626,377.00
SALES	:	SGD 628,171,509 [2013]
NET WORTH	:	SGD 287,026,905 [2013]
STAFF STRENGTH	:	500 [2014]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	STRONG
PAYMENT	:	AVERAGE
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 machinery and machine- tools - metal cutting types.

The ultimate holding company of the Subject is MAKINO MILLING MACHINE CO., LTD, a company incorporated in JAPAN.

Share Capital History

Date	Issue & Paid Up Capital
15/02/2013	SGD 13,626,377.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MAKINO MILLING MACHINE CO., LTD	3-19, NAKANE 2, CHO-ME, MEGURO-KU, TOKYO, 152-8578, JAPAN.	T05UF0531	1,641,377.00	100.00
			---------------	------
			1,641,377.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	INDONESIA	PT MAKINO INDONESIA	100.00	31/03/2013
	THAILAND	MAKINO (THAILAND) CO., LTD	100.00	31/03/2013
	INDIA	MAKINO (INDIA) PRIVATE LIMITED	100.00	31/03/2013
	CHINA	MAKINO (CHINA) CO., LTD	100.00	31/03/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MATSUNAGA KAZUHIKO
Address	:	33, HUME AVENUE, 10-08, SYMPHONY HEIGHTS, 598734, SINGAPORE.
IC / PP No	:	TZ0560257
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2008

DIRECTOR 2

Name Of Subject	:	TAMURA YASUYUKI
Address	:	1-14-1-707, KAMOI MIDORI-KU, YOKOHAMA, KANAGAWA 226-0003, JAPAN.
IC / PP No	:	TH3774429
Nationality	:	JAPANESE
Date of Appointment	:	19/07/2011

DIRECTOR 3

Name Of Subject	:	KUMBAKONAM SUBRAMANIAM SANKARAN
Address	:	1, JALAN ANGKLONG, FABER GARDEN, 578705, SINGAPORE.
IC / PP No	:	S2201992I
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/01/2002

DIRECTOR 4

Name Of Subject	:	SUZUKI SHINGO
Address	:	3-3-10, MIWAMIDORIYAMA MACHIDA, TOKYO, JAPAN.
IC / PP No	:	TH8078180
Nationality	:	JAPANESE
Date of Appointment	:	01/08/2013

DIRECTOR 5

Name Of Subject	:	TOSHIYUKI NAGANO
Address	:	SAKAEMACHI 119-1, USHIKU CITY, IBARAKI-KEN, JAPAN.
IC / PP No	:	TH1412301
Nationality	:	JAPANESE
Date of Appointment	:	01/08/2010

DIRECTOR 6

Name Of Subject	:	SHUN MAKINO
Address	:	4-35-5, UTSUKUSHIGAOKA MIDORI-KU, YOKOHAMA CITY, KANAGAWA PREF, JAPAN.
IC / PP No	:	TG7871690
Nationality	:	JAPANESE
Date of Appointment	:	31/07/1987

DIRECTOR 7

Name Of Subject	:	DR MOH CHONG TAU
Address	:	30, SIMON PLACE, 545972, SINGAPORE.
IC / PP No	:	S1283127G
Nationality	:	SINGAPOREAN
Date of Appointment	:	23/04/1985

MANAGEMENT

1)	Name of Subject	:	DR MOH CHONG TAU
	Position	:	DIRECTOR

AUDITOR

Auditor	:	DELOITTE & TOUCHE LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	DR MOH CHONG TAU
	IC / PP No	:	S1283127G
	Address	:	30, SIMON PLACE, 545972, 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. 

No legal action was found in our databank. 

No winding up petition was found in our databank. 

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	N/A
Overseas	:	N/A

The Subject refused to disclose its suppliers. 

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	:	WORLDWIDE
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

MACHINERY AND MACHINE- TOOLS - METAL CUTTING TYPES

Total Number of Employees:
YEAR	2014
GROUP	N/A
COMPANY	500

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacture and repair of machinery and machine- tools - metal cutting types. 

Makino Asia developed into a fully integrated manufacturing company, incorporating Research and Development (R&D), engineering production and business administration under one roof. 

Advanced processing, manufacturing and assembly are the key integral functions of its enterprise. 

Makino Asia produces the F- and E-series milling machines as well as the EDAF- and EDGE- electrical discharge machines and DUO-series and newly launched U3 wire electrical discharge machines on site. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-68615722
Match	:	N/A
Address Provided by Client	:	2 GUL AVENUE, SINGAPORE 629649
Current Address	:	2 GUL AVENUE, 629649, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	28.42%	]
Profit/(Loss) Before Tax	:	Increased	[	22.65%	]
Return on Shareholder Funds	:	Acceptable	[	12.25%	]
Return on Net Assets	:	Acceptable	[	13.94%	]
The higher turnover could be attributed to the favourable market condition and the Subject could be gaining the market share progressively.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	:	Acceptable	[	56 Days	]
Debtor Ratio	:	Acceptable	[	62 Days	]
Creditors Ratio	:	Unfavourable	[	67 Days	]
The Subject kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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	[	1.54 Times	]
Current Ratio	:	Favourable	[	2.15 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	[	125.77 Times	]
Gearing Ratio	:	Favourable	[	0.01 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 :
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 :	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 1973, the Subject is a Private Limited company, focusing on manufacture and repair of machinery and machine- tools - metal cutting types. With its long presence in the industry coupled with its vast experiences in the business, the Subject should have built up certain goodwill with its clients over times. 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 500 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. 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 287,026,905, 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 payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts. 

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market. 

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.

MAKINO ASIA PTE LTD

Financial Year End	2013-03-31	2012-03-31	2011-03-31
Months	12	12	12
Consolidated Account	GROUP	GROUP	Company
Audited Account	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES
Financial Type	FULL	FULL	SUMMARY
Currency	SGD	SGD	SGD
TURNOVER	628,171,509	489,171,945	452,700,440
	----------------	----------------	----------------
Total Turnover	628,171,509	489,171,945	452,700,440
Costs of Goods Sold	(525,454,890)	(402,002,123)	-
	----------------	----------------	----------------
Gross Profit	102,716,619	87,169,822	-
	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	40,405,825	32,944,828	23,113,219
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	40,405,825	32,944,828	23,113,219
Taxation	(5,231,655)	(5,598,846)	(3,084,372)
	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	35,174,170	27,345,982	20,028,847
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	256,320,440	234,974,458	217,489,797
	----------------	----------------	----------------
As restated	256,320,440	234,974,458	217,489,797
	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	291,494,610	262,320,440	237,518,644
DIVIDENDS - Ordinary (paid & proposed)	(10,000,000)	(6,000,000)	-
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	281,494,610	256,320,440	237,518,644
	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	-	12,801	-
Others	323,853	266,841	-
	----------------	----------------	----------------
	323,853	279,642	-
	=============	=============

BALANCE SHEET

MAKINO ASIA PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	104,957,134	96,258,567	102,440,127
LONG TERM INVESTMENTS/OTHER ASSETS
Deferred assets	624,674	632,217	-
Deposits	1,122,874	1,085,395	-
Others	3,148,629	3,763,648	-
	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	4,896,177	5,481,260	-
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	54,733	33,106	-
Others	1,694,636	-	-
	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	1,749,369	33,106	-
	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	111,602,680	101,772,933	102,440,127
CURRENT ASSETS
Stocks	96,420,992	102,027,668	-
Trade debtors	106,542,637	124,432,248	-
Other debtors, deposits & prepayments	13,648,104	14,623,417	-
Short term deposits	36,234,464	4,405	-
Cash & bank balances	84,298,412	87,025,006	-
Others	61,501	87,526	-
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	337,206,110	328,200,270	337,179,342
	----------------	----------------	----------------
TOTAL ASSET	448,808,790	429,973,203	439,619,469
	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	96,966,174	104,346,740	-
Other creditors & accruals	54,923,669	54,247,684	-
Hire purchase & lease creditors	-	817	-
Provision for taxation	4,648,597	4,222,419	-
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	156,538,440	162,817,660	188,474,448
	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	180,667,670	165,382,610	148,704,894
	----------------	----------------	----------------
TOTAL NET ASSETS	292,270,350	267,155,543	251,145,021
	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	13,626,377	13,626,377	13,626,377
	----------------	----------------	----------------
TOTAL SHARE CAPITAL	13,626,377	13,626,377	13,626,377
RESERVES
General reserve	(8,094,082)	(5,621,730)	-
Retained profit/(loss) carried forward	281,494,610	256,320,440	237,518,644
	----------------	----------------	----------------
TOTAL RESERVES	273,400,528	250,698,710	237,518,644
	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	287,026,905	264,325,087	251,145,021
LONG TERM LIABILITIES
Hire purchase creditors	2,523,000	-	-
Deferred taxation	2,720,445	2,830,456	-
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	5,243,445	2,830,456	-
	----------------	----------------	----------------
	292,270,350	267,155,543	251,145,021
	=============	=============	=============

FINANCIAL RATIO

MAKINO ASIA PTE LTD

TYPES OF FUNDS
Cash	120,532,876	87,029,411	-
Net Liquid Funds	120,532,876	87,029,411	-
Net Liquid Assets	84,246,678	63,354,942	148,704,894
Net Current Assets/(Liabilities)	180,667,670	165,382,610	148,704,894
Net Tangible Assets	290,520,981	267,122,437	251,145,021
Net Monetary Assets	79,003,233	60,524,486	148,704,894
BALANCE SHEET ITEMS
Total Borrowings	2,523,000	817	-
Total Liabilities	161,781,885	165,648,116	188,474,448
Total Assets	448,808,790	429,973,203	439,619,469
Net Assets	292,270,350	267,155,543	251,145,021
Net Assets Backing	287,026,905	264,325,087	251,145,021
Shareholders' Funds	287,026,905	264,325,087	251,145,021
Total Share Capital	13,626,377	13,626,377	13,626,377
Total Reserves	273,400,528	250,698,710	237,518,644
LIQUIDITY (Times)
Cash Ratio	0.77	0.53	-
Liquid Ratio	1.54	1.39	-
Current Ratio	2.15	2.02	1.79
WORKING CAPITAL CONTROL (Days)
Stock Ratio	56	76	-
Debtors Ratio	62	93	-
Creditors Ratio	67	95	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.01	0.00	-
Liabilities Ratio	0.56	0.63	0.75
Times Interest Earned Ratio	125.77	118.81	-
Assets Backing Ratio	21.32	19.60	18.43
PERFORMANCE RATIO (%)
Operating Profit Margin	6.43	6.73	5.11
Net Profit Margin	5.60	5.59	4.42
Return On Net Assets	13.94	12.44	9.20
Return On Capital Employed	13.85	12.43	9.20
Return On Shareholders' Funds/Equity	12.25	10.35	7.98
Dividend Pay Out Ratio (Times)	0.28	0.22	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.52
UK Pound	1	Rs.101.48
Euro	1	Rs.84.11

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.