MIRA INFORM REPORT

Report Date :

11.11.2014

IDENTIFICATION DETAILS

Name :	EATON INDUSTRIES PTE. LTD.
Formerly Known As :	VICKERS SYSTEMS ASIA PACIFIC PTE. LTD.
Registered Office :	8, Marina Boulevard, 05-02, Marina Bay Financial Centre, 018981,
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	17.01.1997
Com. Reg. No.:	199700376-G
Legal Form :	Private Limited
Line of Business :	Trading of Electrical Machinery, Apparatus, Appliances and Supplies.
No. of Employees :	Not Available

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, 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. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.	:	199700376-G
COMPANY NAME	:	EATON INDUSTRIES PTE. LTD.
FORMER NAME	:	VICKERS SYSTEMS ASIA PACIFIC PTE. LTD. (26/08/2009) VICKERS SYSTEMS ASIA PACIFIC PTE LTD (18/01/1997)
INCORPORATION DATE	:	17/01/1997
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	8, MARINA BOULEVARD, 05-02, MARINA BAY FINANCIAL CENTRE, 018981, SINGAPORE.
BUSINESS ADDRESS	:	4 LOYANG LANE #04-01/02, 508914, SINGAPORE.
TEL.NO.	:	65-68251668
FAX.NO.	:	65-68251689
EMAIL	:	EATONSEA@EATON.COM
WEB SITE	:	POWERQUALITY.EATON.COM
CONTACT PERSON	:	KHOO TENG SEEN ( DIRECTOR )
PRINCIPAL ACTIVITY	:	TRADING OF ELECTRICAL MACHINERY, APPARATUS, APPLIANCES AND SUPPLIES
ISSUED AND PAID UP CAPITAL	:	18,592,150.00 ORDINARY SHARE, OF A VALUE OF SGD 62,604,018.00
SALES	:	SGD 231,026,375 [2013]
NET WORTH	:	SGD 208,956,078 [2013]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	NO COMPLAINTS
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
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) trading of electrical machinery, apparatus, appliances and supplies.

The immediate holding company of the Subject is EATON HOLDING II S.A.R.L., a company incorporated in LUXEMBOURG.

The ultimate holding company of the Subject is EATON CORPORATION, a company incorporated in UNITED STATES.

Share Capital History

Date	Issue & Paid Up Capital
12/02/2014	SGD 62,604,018.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
EATON HOLDING II S.A.R.L.	12, RUE EUGENE RUPPERT, L-2453, LUXEMBOURG.	T06UF0873	18,043,501.00	97.05
EATON HOLDING SE & CO. KG.	HEIN-MOELLER-STRASSE, 7-11, 53115 BONN, GERMANY.	T11UF4501	548,649.00	2.95
			---------------	------
			18,592,150.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	OWN SEAK CHIN @ WOON SEAK CHIN
Address	:	114, EDGEFIELD PLAINS, 09-358, 820114, SINGAPORE.
IC / PP No	:	S7771525H
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/03/2012

DIRECTOR 2

Name Of Subject	:	YAN JIN
Address	:	SAN LI TUN, NORTH 6 STREET 102, BEIJING, CHINA 100020, CHINA.
IC / PP No	:	G44765510
Nationality	:	CHINESE
Date of Appointment	:	29/04/2011

DIRECTOR 3

Name Of Subject	:	MR. KHOO TENG SEEN
Address	:	501, PASIR PANJANG ROAD, 05-03, THE SPECTRUM, 117506, SINGAPORE.
IC / PP No	:	S2631251E
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/12/2013

DIRECTOR 4

Name Of Subject	:	ALAN GARCIA DELA CRUZ
Address	:	6, BATAAN, AYALA HEIGHT, QUEZON CITY, 1126, PHILIPPINES.
IC / PP No	:	EB4366506
Nationality	:	FILIPINO
Date of Appointment	:	01/12/2013

MANAGEMENT

1)	Name of Subject	:	KHOO TENG SEEN
	Position	:	DIRECTOR

AUDITOR

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

COMPANY SECRETARIES

1)	Company Secretary	:	ANTHONY ANNE CATHARINE
	IC / PP No	:	S1347717E
	Address	:	8, LORONG 29, GEYLANG, 07-06, 388064, SINGAPORE.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

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

LITIGATION CHECK AGAINST SUBJECT

* A check has been conducted in our databank againt 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	[	X	]	Good 31-60 Days	[	]	Average 61-90 Days	[	]
Fair 91-120 Days	[		]	Poor >120 Days	[	]

CLIENTELE
Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	WORLDWIDE
Credit Term	:	30 - 90 DAYS
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

ELECTRICAL MACHINERY, APPARATUS, APPLIANCES

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of electrical machinery, apparatus, appliances and supplies.

The products dealings:
* air cooled heat exchangers
* ball valves
* cable connectors
* cables, equipment, supplies & services
* check valves
* connectors
* controls
* controls, control systems & services
* coolers
* electrical equipment, supplies & services
* electronic connectors
* electronic equipment, supplies & services
* filters
* filters, filtering equipment & supplies
* flow control equipment & services
* flow controls
* gear pumps
* heat exchangers
* heat exchangers, parts & services
* hose, hose couplings, fittings & accessories
* hoses
* hydraulic accumulators
* hydraulic controls
* hydraulic cylinders
* hydraulic engineers
* hydraulic equipment repair service
* hydraulic equipment, supplies & services
* hydraulic filters
* hydraulic hose
* hydraulic motors
* hydraulic power units
* hydraulic pumps
* hydraulic valves and motors
* oil coolers
* piston pumps
* pressure controls
* pumps
* pumps, parts & services
* solenoid valves
* valves
* valves, accessories & services
* vane pumps

Brands:
* aeroquip
* air-dro
* char-lynn
* dowmax
* duffield
* dynapower
* eaton
* haldex barnes
* hydro-line
* hydrokraft
* hydrowa
* internormen
* jeil
* komatsu
* mp-filter
* nacol
* nanno
* nihon spindle
* olaer
* orbit
* sehyco
* staffa
* tokimec
* ucc
* vickers

Trade names:
* aeroquip fluid conveying products (us)
* boston industrial hose & couplings (us)
* char-lynn motors & steering control units (us)
* duffield hose & fittings (au)
* eaton hydraulic components & systems (us)
* hydrokraft piston pumps & motors (de)
* hydro-line hydraulic cylinders (us)
* hydrowa customised & special cylinders (nl)
* vickers hydraulic components & systems (us)
* weatherhead fluid conveying products (us)

Total hydraulic solutions:
* design
* integration
* installation
* commissioning
* after-sales service

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that:

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-68251668
Match	:	N/A
Address Provided by Client	:	FILTRATION DIVISION 4 LOYANG LANE, #04-01/02, SINGAPORE 508914 SINGAPORE
Current Address	:	4 LOYANG LANE #04-01/02, 508914, SINGAPORE.
Match	:	NO

Other Investigations

We contacted one of the staff from the Subject and collect some information.

The Subject is not aware of the address provided.

The Subject refused to disclose its number of employees.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2010 - 2013	]
Profit/(Loss) Before Tax	:	Decreased	[	2010 - 2013	]
Return on Shareholder Funds	:	Unfavourable	[	4.84%	]
Return on Net Assets	:	Unfavourable	[	6.64%	]
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 profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	30 Days	]
Debtor Ratio	:	Unfavourable	[	86 Days	]
Creditors Ratio	:	Favourable	[	26 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 Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	2.94 Times	]
Current Ratio	:	Favourable	[	3.21 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.
Overall financial condition of the Subject : FAIR

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2009	2010	2011	2012	2013
Population (Million)	4.98	5.08	5.18	5.31	5.40
Gross Domestic Products ( % )	(0.8)	14.5	4.9	1.3	3.7
Consumer Price Index	0.6	2.8	5.2	4.6	2.4
Total Imports (Million)	356,299.3	423,221.8	459,655.1	474,554.0	466,762.0
Total Exports (Million)	391,118.1	478,840.7	514,741.2	510,329.0	513,391.0
Unemployment Rate (%)	3.2	2.2	2.1	2.0	1.9
Tourist Arrival (Million)	9.68	11.64	13.17	14.49	15.46
Hotel Occupancy Rate (%)	75.8	85.6	86.5	86.4	86.3
Cellular Phone Subscriber (Million)	1.37	1.43	1.50	1.52	1.97
Registration of New Companies (No.)	26,414	29,798	32,317	31,892	37,288
Registration of New Companies (%)	4.3	12.8	8.5	(1.3)	9.8
Liquidation of Companies (No.)	22,393	15,126	19,005	17,218	17,369
Liquidation of Companies (%)	113.4	(32.5)	25.6	9.4	(5.3)
Registration of New Businesses (No.)	26,876	23,978	23,494	24,788	22,893
Registration of New Businesses (%)	8.15	(10.78)	2.02	5.51	1.70
Liquidation of Businesses (No.)	23,552	24,211	23,005	22,489	22,598
Liquidation of Businesses (%)	11.4	2.8	(5)	(2.2)	0.5
Bankruptcy Orders (No.)	2,058	1,537	1,527	1,748	1,992
Bankruptcy Orders (%)	(11.5)	(25.3)	(0.7)	14.5	14.0
Bankruptcy Discharges (No.)	3,056	2,252	1,391	1,881	2,584
Bankruptcy Discharges (%)	103.7	(26.3)	(38.2)	35.2	37.4
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	3.25	(0.48)	4.25	3.64	-
Fish Supply & Wholesale	(1.93)	(10.5)	12.10	(0.5)	-
Manufacturing *	71.5	92.8	100.0	100.3	102.0
Food, Beverages & Tobacco	90.4	96.4	100.0	103.5	103.5
Textiles	145.9	122.1	100.0	104.0	87.1
Wearing Apparel	211.0	123.3	100.0	92.1	77.8
Leather Products & Footwear	79.5	81.8	100.0	98.6	109.8
Wood & Wood Products	101.4	104.0	100.0	95.5	107.4
Paper & Paper Products	95.4	106.1	100.0	97.4	103.2
Printing & Media	100.9	103.5	100.0	93.0	86.1
Crude Oil Refineries	96.4	95.6	100.0	99.4	93.5
Chemical & Chemical Products	80.3	97.6	100.0	100.5	104.1
Pharmaceutical Products	49.1	75.3	100.0	109.7	107.2
Rubber & Plastic Products	101.2	112.3	100.0	96.5	92.9
Non-metallic Mineral	91.9	92.5	100.0	98.2	97.6
Basic Metals	92.6	102.2	100.0	90.6	76.5
Fabricated Metal Products	90.8	103.6	100.0	104.3	105.1
Machinery & Equipment	57.3	78.5	100.0	112.9	114.5
Electrical Machinery	86.8	124.1	100.0	99.3	108.5
Electronic Components	85.2	113.6	100.0	90.6	94.3
Transport Equipment	96.0	94.0	100.0	106.3	107.5
Construction	(36.9)	14.20	20.50	28.70	-
Real Estate	1.4	21.3	25.4	31.9	-
Services
Electricity, Gas & Water	1.70	4.00	7.00	6.30	-
Transport, Storage & Communication	3.90	12.80	7.40	5.30	-
Finance & Insurance	(16.4)	(0.4)	8.90	0.50	-
Government Services	4.50	9.70	6.90	6.00	-
Education Services	0.10	(0.9)	(1.4)	0.30	-
* Based on Index of Industrial Production (2011 = 100)

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 1997, the Subject is a Private Limited company, focusing on trading of electrical machinery, apparatus, appliances and supplies. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The Subject is a large entity with strong capital position of SGD 62,604,018. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.

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.

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at SGD 208,956,078, 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. Overall the Subject has a good control over its resources.

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days.

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.

EATON INDUSTRIES PTE. LTD.

Financial Year End	2013-12-31	2012-12-31	2011-12-31	2010-12-31
Months	12	12	12	12
Consolidated Account	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL
Currency	SGD	SGD	SGD	SGD
TURNOVER	231,026,375	226,389,409	210,062,537	183,748,293
	----------------	----------------	----------------	----------------
Total Turnover	231,026,375	226,389,409	210,062,537	183,748,293
Costs of Goods Sold	(176,424,090)	(170,199,968)	(155,896,965)	(135,221,698)
	----------------	----------------	----------------	----------------
Gross Profit	54,602,285	56,189,441	54,165,572	48,526,595
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	14,017,628	26,393,655	27,366,284	20,809,535
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	14,017,628	26,393,655	27,366,284	20,809,535
Taxation	(2,033,855)	(3,095,075)	(6,356,977)	591,075
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	11,983,773	23,298,580	21,009,307	21,400,610
Pre-acquisition profit/(loss)	(1,864,617)	2,317,286	-	-
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	10,119,156	25,615,866	21,009,307	21,400,610
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	10,119,156	25,615,866	21,009,307	21,400,610
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	120,927,890	95,312,024	73,238,360	51,837,750
Prior year adjustment	-	-	1,064,357	-
	----------------	----------------	----------------	----------------
As restated	120,927,890	95,312,024	74,302,717	51,837,750
	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	131,047,046	120,927,890	95,312,024	73,238,360
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	131,047,046	120,927,890	95,312,024	73,238,360
	=============	=============	=============	=============

BALANCE SHEET

EATON INDUSTRIES PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	22,575,944	24,080,519	23,229,987	16,797,082
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	2,582,292	2,582,292	2,582,292	2,582,292
Deferred assets	-	-	-	32,417,126
	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	2,582,292	2,582,292	2,582,292	34,999,418
Own goodwill	11,980,663	11,980,663	11,980,663	-
Trademarks	11,458,267	11,458,267	11,458,267	-
Others	8,212,602	8,822,586	9,432,570	-
	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	31,651,532	32,261,516	32,871,500	-
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	56,809,768	58,924,327	58,683,779	51,796,500
Stocks	19,018,881	13,966,441	15,229,938	13,332,466
Trade debtors	54,375,427	35,591,106	34,046,873	26,684,128
Other debtors, deposits & prepayments	279,750	624,263	226,238	365,986
Amount due from related companies	138,959,375	120,895,951	90,963,559	211,700,445
Cash & bank balances	10,843,110	10,227,906	5,629,672	5,296,010
Others	613,522	1,287,232	2,785,024	4,661,412
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	224,090,065	182,592,899	148,881,304	262,040,447
	----------------	----------------	----------------	----------------
TOTAL ASSET	280,899,833	241,517,226	207,565,083	313,836,947
	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	12,329,842	8,512,186	12,771,310	9,376,378
Other creditors & accruals	13,303,808	10,663,752	10,572,592	11,253,375
Hire purchase & lease creditors	-	-	-	6,855
Amounts owing to related companies	42,184,589	18,355,012	14,574,929	147,989,613
Provision for taxation	1,984,423	4,878,496	4,910,546	3,742,733
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	69,802,662	42,409,446	42,829,377	172,368,954
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	154,287,403	140,183,453	106,051,927	89,671,493
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	211,097,171	199,107,780	164,735,706	141,467,993
	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	18,592,150	18,592,150	18,043,501	18,043,501
	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	18,592,150	18,592,150	18,043,501	18,043,501
Capital reserve	59,769,551	59,769,551	49,917,733	49,917,733
Exchange equalisation/fluctuation reserve	(452,669)	(2,317,286)	-	-
Retained profit/(loss) carried forward	131,047,046	120,927,890	95,312,024	73,238,360
	----------------	----------------	----------------	----------------
TOTAL RESERVES	190,363,928	178,380,155	145,229,757	123,156,093
	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	208,956,078	196,972,305	163,273,258	141,199,594
Deferred taxation	2,141,093	2,135,475	1,462,448	268,399
	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	2,141,093	2,135,475	1,462,448	268,399
	----------------	----------------	----------------	----------------
	211,097,171	199,107,780	164,735,706	141,467,993
	=============	=============	=============	=============

FINANCIAL RATIO

EATON INDUSTRIES PTE. LTD.

TYPES OF FUNDS
Cash	10,843,110	10,227,906	5,629,672	5,296,010
Net Liquid Funds	10,843,110	10,227,906	5,629,672	5,296,010
Net Liquid Assets	135,268,522	126,217,012	90,821,989	76,339,027
Net Current Assets/(Liabilities)	154,287,403	140,183,453	106,051,927	89,671,493
Net Tangible Assets	179,445,639	166,846,264	131,864,206	141,467,993
Net Monetary Assets	133,127,429	124,081,537	89,359,541	76,070,628
BALANCE SHEET ITEMS
Total Borrowings	0	0	0	6,855
Total Liabilities	71,943,755	44,544,921	44,291,825	172,637,353
Total Assets	280,899,833	241,517,226	207,565,083	313,836,947
Net Assets	211,097,171	199,107,780	164,735,706	141,467,993
Net Assets Backing	208,956,078	196,972,305	163,273,258	141,199,594
Shareholders' Funds	208,956,078	196,972,305	163,273,258	141,199,594
Total Share Capital	18,592,150	18,592,150	18,043,501	18,043,501
Total Reserves	190,363,928	178,380,155	145,229,757	123,156,093
LIQUIDITY (Times)
Cash Ratio	0.16	0.24	0.13	0.03
Liquid Ratio	2.94	3.98	3.12	1.44
Current Ratio	3.21	4.31	3.48	1.52
WORKING CAPITAL CONTROL (Days)
Stock Ratio	30	23	26	26
Debtors Ratio	86	57	59	53
Creditors Ratio	26	18	30	25
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	0.00	0.00
Liabilities Ratio	0.34	0.23	0.27	1.22
Times Interest Earned Ratio	0.00	0.00	0.00	0.00
Assets Backing Ratio	9.65	8.97	7.31	7.84
PERFORMANCE RATIO (%)
Operating Profit Margin	6.07	11.66	13.03	11.33
Net Profit Margin	4.38	11.31	10.00	11.65
Return On Net Assets	6.64	13.26	16.61	14.71
Return On Capital Employed	5.77	11.41	13.85	14.71
Return On Shareholders' Funds/Equity	4.84	13.00	12.87	15.16
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.52
UK Pound	1	Rs.97.39
Euro	1	Rs.76.16

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	NIT

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%)

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