MIRA INFORM REPORT

Report No. :	319235
Report Date :	29.04.2015

IDENTIFICATION DETAILS

Name :	KIM ANN ENGINEERING PRIVATE LIMITED
Registered Office :	3C, Joo Koon Circle, 629035
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	07.05.1974
Com. Reg. No.:	197400799-C
Legal Form :	Exempt Private
Line of Business :	Subject is engaged in steel services and machining
No. of Employee :	168 [2015]

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 :	Exist

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 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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. Unemployment is very low. 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. Growth in 2014 was slower at 13.9%, 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. Singapore is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

197400799-C

COMPANY NAME

:

KIM ANN ENGINEERING PRIVATE LIMITED

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/05/1974

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

3C, JOO KOON CIRCLE, 629035, SINGAPORE.

BUSINESS ADDRESS

:

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

TEL.NO.

:

65-68624888

FAX.NO.

:

65-68612066

WEB SITE

:

WWW.KIMANN.COM

CONTACT PERSON

:

LAU TAI SAN ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

STEEL SERVICES AND MACHINING

ISSUED AND PAID UP CAPITAL

:

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

SALES

:

SGD 96,293,637 [2013]

NET WORTH

:

SGD 86,064,101 [2013]

STAFF STRENGTH

:

168 [2015]

BANKER (S)

:

UNITED OVERSEAS BANK LIMITED OVERSEA-CHINESE BANKING CORPORATION LIMITED

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

HISTORY / BACKGROUND

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

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

Share Capital History

Date	Issue & Paid Up Capital
28/04/2015	SGD 20,000,000.00

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

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

+ Also Director

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

Local No	Country	Company	(%)	As At
198904960D	SINGAPORE	KIMANN MARKETING PTE LTD	100.00	31/12/2013

DIRECTORS

DIRECTOR 1

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

DIRECTOR 2

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

DIRECTOR 3

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

DIRECTOR 4

Name Of Subject	:	LAU TAI SAN
Address	:	1, BEDOK CLOSE, 469867, SINGAPORE.
IC / PP No	:	S0206887G
Nationality	:	SINGAPOREAN
Date of Appointment	:	15/06/2010

DIRECTOR 5

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

MANAGEMENT

1)	Name of Subject	:	LAU TAI SAN
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	KPMG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

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

BANKING

Banking relations are maintained principally with :

1)

Name

:

UNITED OVERSEAS BANK LIMITED

2)

Name

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201306616	15/05/2013	N/A	UNITED OVERSEAS BANK LIMITED	-	Unsatisfied
C201408207	05/08/2014	N/A	OVERSEA-CHINESE BANKING CORPORATION LIMITED	SGD 3,000,000.00	Unsatisfied

LITIGATION CHECK AGAINST SUBJECT

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

LEGAL ACTION
Code No	:	99	Case No	:	531
Year	:	2008	Place	:	SINGAPORE
Court	:	DISTRICT COURT
Date Filed	:	14/02/2008
Solicitor	:	YAP TAI SAN PAUL
Solicitor Ref	:	JC-INS-PC-40125-06-IL
Solicitor Firm	:	VISION LAW LLC
Plaintiff	:	CHEW JOSEPHINE
Defendants	:	KIM ANN ENGINEERING PRIVATE LIMITED (197400799)
Amount Claimed	:	2006.15
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE

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

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	ASIA
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

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

OPERATIONS

Services

:

STEEL SERVICES AND MACHINING

Total Number of Employees:
YEAR	2015	2014	2013
GROUP	N/A	N/A	N/A
COMPANY	168	168	168

Branch

:

NO

Other Information:

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

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

The Subject Offers the followings:

* Products / Metal sales
* Heat Treatment services
* Value-added Processing services
* Supply Chain Management (SCM) services

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

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

Other Investigations

On 24th April 2015 we contacted one of the staff from the Subject and she provided some information.

The address provided belongs to the Subject's headquarters but it is incomplete.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Decreased	[	2009 - 2013	]
Return on Shareholder Funds	:	Unfavourable	[	7.90%	]
Return on Net Assets	:	Unfavourable	[	9.90%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. 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	:	Unfavourable	[	197 Days	]
Debtor Ratio	:	Unfavourable	[	89 Days	]
Creditors Ratio	:	Favourable	[	44 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 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	[	1.65 Times	]
Current Ratio	:	Favourable	[	3.30 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	[	19.58 Times	]
Gearing Ratio	:	Favourable	[	0.25 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 :
The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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 :	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 :	ECONOMY
The Ministry of Trade and Industry (MTI) announced that it expects the Singapore economy to grow by around 3.0% in 2014, and by 2.0 to 4.0% in 2015. Besides that in 2013, the economy grew by 4.1%, higher than the 1.9% growth in 2012. This was mainly due to strong growth in the services producing industries, particularly the finance & insurance, as well as wholesale & retail trade sectors.
In 2013, all sectors contributed positively to growth. Finance & insurance was the largest contributor (1.2 percentage-points), followed by wholesale & retail trade (0.8 percentage-points) and business services (0.6 percentage-points). Growth in the manufacturing sector was improved by 1.7%, on the back of strong growth in the electronics and transport engineering clusters. By contrast, growth in the construction sector moderated to 5.9%, from 8.6% in 2012.
Growth in the services producing industries picked up to 5.3% in 2013, from 2.0% in 2012. This was mainly due to stronger growth in the finance & insurance and wholesale & retail trade sectors. The finance & insurance sector grew by 11%, up from 1.3% in the previous year. The wholesale & retail trade sector has expanded by 5.0%, after declining by 1.4% the year before.
For the whole of 2013, growth in total demand was 3.1%, similar to the pace of growth in 2012. External demand was the key contributor to total demand growth, accounting for 2.7 percentage-points, or almost 90%, of the increase. External demand grew at a faster pace of 3.6%, compared to the 1.4% growth in 2012. This was supported mainly by growth in the exports of machinery & transport equipment, miscellaneous manufactures, and transport services. Total domestic demand rose by a modest 1.7%, following the 8.6% increase in 2012. The slower growth in total domestic demand was primarily due to the decline in gross fixed capital formation (GFCF).
For the full year, total consumption expenditure grew by 4.4% in 2013, faster than the 2.8% growth in 2012. Public consumption expenditure increased by 11%, a strong rebound from the 1.9% decline in 2012. Private consumption expenditure recorded gains of 2.7%, moderating from the 4.1% increase in the preceding year.
Furthermore, in the first three quarters of 2014, the Singapore economy grew by 3.3% on a year-on-year basis. For the rest of the year, growth is expected to ease slightly on a year-on-year basis, in line with a projected slowdown in the global economy. Externally-oriented sectors such as the manufacturing and transportation & storage sectors are likely to slow, whereas growth in the construction sector will continue to be weighed down by the weakness in private sector construction activities. On the other hand, domestically-oriented sectors like business services are likely to remain resilient.
Additionally, the labour market in Singapore is expected to remain tight in 2015, with low unemployment and rising vacancy rates. Against this global and domestic backdrop, the growth outlook for the Singapore economy remains modest. In tandem with the expected pick-up in external demand, externally-oriented sectors such as manufacturing, wholesale trade and finance & insurance are likely to provide support to growth. While some domestically-oriented sectors such as businesses services are expected to remain resilient, labour-intensive ones like construction, retail and food services may see their growth weighed down by labour constraints.
OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1974, the Subject is an Exempt Private company, focusing on steel services and machining. The Subject has been in business for over two 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. With a paid up capital of SGD 20,000,000, the Subject has greater opportunities to expand its business when the needs arise. Under the control of its directors, we considered that the Subject's business position in the market is much dependent on their abilities.

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 is a fairly large and rapidly growing company with over 168 staff in its 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.

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 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 86,064,101, 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.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

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

Based on the above condition, we recommend credit be granted to the Subject normally.

PROFIT AND LOSS ACCOUNT

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

KIM ANN ENGINEERING PRIVATE LIMITED

Financial Year End	2013-12-31	2012-12-31	2011-12-31	2010-12-31	2009-12-31
Months	12	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	SUMMARY	SUMMARY
Currency	SGD	SGD	SGD	SGD	SGD
TURNOVER	96,293,637	91,494,085	97,543,319	93,316,524	77,338,884
Other Income	2,123,312	2,758,482	2,743,280	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	98,416,949	94,252,567	100,286,599	93,316,524	77,338,884
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	8,504,901	8,742,194	9,756,295	12,813,325	9,864,821
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	8,504,901	8,742,194	9,756,295	12,813,325	9,864,821
Taxation	(1,589,357)	(1,715,089)	(1,017,542)	(2,715,462)	(799,505)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	6,915,544	7,027,105	8,738,753	10,097,863	9,065,316
Minority interests	(119,802)	(96,354)	9,551	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	6,795,742	6,930,751	8,748,304	10,097,863	9,065,316
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	6,795,742	6,930,751	8,748,304	10,097,863	9,065,316
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	66,565,727	65,863,020	77,114,716	56,734,447	47,669,131
Prior year adjustment	-	-	-	(4,583,403)	-
	----------------	----------------	----------------	----------------	----------------
As restated	66,565,727	65,863,020	77,114,716	52,151,044	47,669,131
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	73,361,469	72,793,771	85,863,020	62,248,907	56,734,447
TRANSFER TO RESERVES - General	-	(228,044)	(15,000,000)	-	-
DIVIDENDS - Ordinary (paid & proposed)	(8,500,000)	(6,000,000)	(5,000,000)	-	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	64,861,469	66,565,727	65,863,020	62,248,907	56,734,447
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	5,871	4,997	-	-	-
Lease interest	27,208	8,804	8,066	-	-
Term loan / Borrowing	75,304	53,070	51,146	-	-
Trust receipts	349,261	481,293	516,334	-	-
	----------------	----------------	----------------	----------------	----------------
	457,644	548,164	575,546	-	-
	=============	=============	=============	-	-
DEPRECIATION (as per notes to P&L)	1,576,527	1,394,394	1,427,120	-	-
	----------------	----------------	----------------	----------------	----------------
	1,576,527	1,394,394	1,427,120	-	-
	=============	=============	=============

BALANCE SHEET

KIM ANN ENGINEERING PRIVATE LIMITED

ASSETS EMPLOYED:
FIXED ASSETS	18,250,947	13,320,851	11,914,178	13,112,991	12,465,467
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	18,250,947	13,320,851	11,914,178	13,112,991	12,465,467
Stocks	51,912,331	52,753,635	53,339,194	-	-
Trade debtors	23,391,924	21,662,450	24,747,222	-	-
Other debtors, deposits & prepayments	1,362,985	731,562	652,865	-	-
Short term deposits	217,508	216,485	9,713,200	-	-
Amount due from related companies	454,848	469,535	170,290	-	-
Cash & bank balances	26,401,308	29,285,240	25,108,194	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	103,740,904	105,118,907	113,730,965	96,218,771	91,665,190
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	121,991,851	118,439,758	125,645,143	109,331,762	104,130,657
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	11,488,310	10,784,898	13,577,981	-	-
Other creditors & accruals	529,588	570,665	406,177	-	-
Hire purchase & lease creditors	386,378	195,815	119,824	-	-
Bank overdraft	152,692	216,648	-	-	-
Short term borrowings/Term loans	470,592	126,201	511,382	-	-
Other borrowings	16,600,396	15,339,560	21,228,772	-	-
Amounts owing to related companies	-	5,852	25,697	-	-
Provision for taxation	1,852,468	1,757,913	1,592,994	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	31,480,424	28,997,552	37,462,827	26,132,255	25,922,654
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	72,260,480	76,121,355	76,268,138	70,086,516	65,742,536
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	90,511,427	89,442,206	88,182,316	83,199,507	78,208,003
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	20,000,000	20,000,000	20,000,000	20,000,000	20,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	20,000,000	20,000,000	20,000,000	20,000,000	20,000,000
Exchange equalisation/fluctuation reserve	(312,831)	(336,306)	(175,572)	-	-
Retained profit/(loss) carried forward	64,861,469	66,565,727	65,863,020	62,248,907	56,734,447
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	64,548,638	66,229,421	65,687,448	62,248,907	56,734,447
MINORITY INTEREST	1,515,463	1,557,048	1,575,457	-	-
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	86,064,101	87,786,469	87,262,905	82,248,907	76,734,447
Long term loans	3,705,765	1,094,569	650,557	-	-
Lease obligations	504,806	320,698	24,028	-	-
Deferred taxation	236,755	240,470	244,826	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	4,447,326	1,655,737	919,411	950,600	1,473,556
	----------------	----------------	----------------	----------------	----------------
	90,511,427	89,442,206	88,182,316	83,199,507	78,208,003
	=============	=============	=============	=============	=============

FINANCIAL RATIO

KIM ANN ENGINEERING PRIVATE LIMITED

TYPES OF FUNDS
Cash	26,618,816	29,501,725	34,821,394	-	-
Net Liquid Funds	26,466,124	29,285,077	34,821,394	-	-
Net Liquid Assets	20,348,149	23,367,720	22,928,944	70,086,516	65,742,536
Net Current Assets/(Liabilities)	72,260,480	76,121,355	76,268,138	70,086,516	65,742,536
Net Tangible Assets	90,511,427	89,442,206	88,182,316	83,199,507	78,208,003
Net Monetary Assets	15,900,823	21,711,983	22,009,533	69,135,916	64,268,980
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	8,962,545	9,290,358	10,331,841	-	-
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	10,539,072	10,684,752	11,758,961	-	-
BALANCE SHEET ITEMS
Total Borrowings	21,820,629	17,293,491	22,534,563	-	-
Total Liabilities	35,927,750	30,653,289	38,382,238	27,082,855	27,396,210
Total Assets	121,991,851	118,439,758	125,645,143	109,331,762	104,130,657
Net Assets	90,511,427	89,442,206	88,182,316	83,199,507	78,208,003
Net Assets Backing	86,064,101	87,786,469	87,262,905	82,248,907	76,734,447
Shareholders' Funds	86,064,101	87,786,469	87,262,905	82,248,907	76,734,447
Total Share Capital	20,000,000	20,000,000	20,000,000	20,000,000	20,000,000
Total Reserves	64,548,638	66,229,421	65,687,448	62,248,907	56,734,447
LIQUIDITY (Times)
Cash Ratio	0.85	1.02	0.93	-	-
Liquid Ratio	1.65	1.81	1.61	-	-
Current Ratio	3.30	3.63	3.04	3.68	3.54
WORKING CAPITAL CONTROL (Days)
Stock Ratio	197	210	200	-	-
Debtors Ratio	89	86	93	-	-
Creditors Ratio	44	43	51	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.25	0.20	0.26	-	-
Liabilities Ratio	0.42	0.35	0.44	0.33	0.36
Times Interest Earned Ratio	19.58	16.95	17.95	-	-
Assets Backing Ratio	4.53	4.47	4.41	4.16	3.91
PERFORMANCE RATIO (%)
Operating Profit Margin	8.83	9.55	10.00	13.73	12.76
Net Profit Margin	7.06	7.58	8.97	10.82	11.72
Return On Net Assets	9.90	10.39	11.72	15.40	12.61
Return On Capital Employed	9.68	10.16	11.50	15.40	12.61
Return On Shareholders' Funds/Equity	7.90	7.90	10.03	12.28	11.81
Dividend Pay Out Ratio (Times)	1.25	0.87	0.57	-	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.33
UK Pound	1	Rs.96.55
Euro	1	Rs.68.93

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	ASH

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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