MIRA INFORM REPORT

Report No. :	326817.2
Report Date :	22.06.2015

IDENTIFICATION DETAILS

Name :	MITSUBISHI CORPORATION

Registered Office :	1, Temasek Avenue, 19-00, Millenia Tower, 039192

Country :	Singapore

Financials (as on) :	31.03.2014

Date of Incorporation :	17.11.1955

Com. Reg. No.:	S55FC1163-C

Legal Form :	Foreign

Line of Business :	Building construction, infrastructure & trading of chemical, machinery.

No. of Employees :	120 [2015]

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Slow but correct

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

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.	:	S55FC1163-C
COMPANY NAME	:	MITSUBISHI CORPORATION
FORMER NAME	:	N/A
INCORPORATION DATE	:	17/11/1955


COMPANY STATUS	:	EXIST
LEGAL FORM	:	FOREIGN
LISTED STATUS	:	NO


REGISTERED ADDRESS	:	1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.
BUSINESS ADDRESS	:	1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.
TEL.NO.	:	65-63381100
FAX.NO.	:	65-63388361
CONTACT PERSON	:	KENJI TAKAHASHI ( GENERAL MANAGER )


PRINCIPAL ACTIVITY	:	BUILDING CONSTRUCTION, INFRASTRUCTURE & TRADING OF CHEMICAL, MACHINERY
AUTHORISED CAPITAL	:	JPY 125,000,000,000.00


SALES	:	USD 648,044,958 [2014]
NET WORTH	:	USD 51,303,147 [2014]

STAFF STRENGTH	:	120 [2015]

BANKER (S)		MIZUHO CORPORATE BANK, LTD THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)

LITIGATION	:	TRACED
FINANCIAL CONDITION	:	POOR
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE

COMMERCIAL RISK	:	MODERATE
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

The Subject is principally engaged in the (as a / as an) building construction, infrastructure & trading of chemical, machinery.

The immediate holding company of the Subject is MITSUBISHI CORPORATION, a company incorporated in JAPAN.

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
12/03/2015	JPY 125,000,000,000.00	JPY 0.00

No shareholders was found in our databank at the time of investigation

DIRECTORS

DIRECTOR 1

Name Of Subject	:	KUNIO ITO
Address	:	33-23, FUJIMIDAI, 2-CHOME, KUNITACHI-SHI, TOKYO, JAPAN.
IC / PP No	:	TF5985832



Nationality	:	JAPANESE
Date of Appointment	:	26/06/2007

DIRECTOR 2

Name Of Subject	:	KAZUYUKI MORI
Address	:	1-12-23 SAGINUMA, MIYAMAE-KU, KAWASAKI-SHI, KANAGAWA JAPAN, JAPAN.
IC / PP No	:	TH8624521



Nationality	:	JAPANESE
Date of Appointment	:	20/06/2014

DIRECTOR 3

Name Of Subject	:	KEN KOBAYASHI
Address	:	24-30, KAMARIYAMINAMI 4-CHOME, KANAZAWA-KU, YOKOHAMA-SHI, KANAGAWA-KEN, JAPAN.
IC / PP No	:	TZ0216956



Nationality	:	JAPANESE
Date of Appointment	:	24/06/2010

DIRECTOR 4

Name Of Subject	:	TAKAHISA MIYAUCHI
Address	:	3-8-2, KITASENZOKU, OTA-KU, TOKYO, JAPAN.
IC / PP No	:	TK9181890



Nationality	:	JAPANESE
Date of Appointment	:	21/06/2013

DIRECTOR 5

Name Of Subject	:	HIDEHIRO KONNO
Address	:	28-3, KAMISOSHIGAYA, 7-CHOME, SETAGAYA-KU, TOKYO, JAPAN.
IC / PP No	:	TF9769245



Nationality	:	JAPANESE
Date of Appointment	:	24/06/2010

DIRECTOR 6

Name Of Subject	:	SHUMA UCHINO
Address	:	2-16-6, IKEHANA YOTSUKAIDO-SHIM, CHIBA, JAPAN.
IC / PP No	:	TH9224185



Nationality	:	JAPANESE
Date of Appointment	:	21/06/2013

DIRECTOR 7

Name Of Subject	:	RYOZO KATO
Address	:	1-15-507, TAKANAWA, 2-CHOME, MINATO-KU, TOKYO, JAPAN.
IC / PP No	:	TH6470706



Nationality	:	JAPANESE
Date of Appointment	:	24/06/2009

DIRECTOR 8

Name Of Subject	:	SAKIE TACHIBANA FUKUSHIMA
Address	:	11-40-2302, AKASAKA 1-CHOME, MINATOKU, TOKYO, JAPAN.
IC / PP No	:	TK0233839



Nationality	:	JAPANESE
Date of Appointment	:	21/06/2013

DIRECTOR 9

Name Of Subject	:	JUN YANAI
Address	:	4-6, GOBANCHO, CHIYODA-KU, TOKYO, JAPAN.
IC / PP No	:	TH6363546



Nationality	:	JAPANESE
Date of Appointment	:	21/06/2013

DIRECTOR 10

Name Of Subject	:	YASUHITO HIROTA
Address	:	6-52-14, SHIMOUMA, SETAGAYA-KU, TOKYO, JAPAN.
IC / PP No	:	TH7412139



Nationality	:	JAPANESE
Date of Appointment	:	20/06/2014

DIRECTOR 11

Name Of Subject	:	HIDETO NAKAHARA
Address	:	6-504, SANBANCHO, 9-CHOME, CHIYODA-KU, TOKYO, JAPAN.
IC / PP No	:	TZ0253998



Nationality	:	JAPANESE
Date of Appointment	:	24/06/2009

DIRECTOR 12

Name Of Subject	:	JUN KINUKAWA
Address	:	1-20-6, NAKAMACHI, SETAGAYA-KU, TOKYO, JAPAN.
IC / PP No	:	TK4296095



Nationality	:	JAPANESE
Date of Appointment	:	21/06/2013

DIRECTOR 13

Name Of Subject	:	KAZUO TSUKUDA
Address	:	26-2-1402, SHIMOMARUKO 4- CHOME, OTA-KU, TOKYO, JAPAN.
IC / PP No	:	TH1551180



Nationality	:	JAPANESE
Date of Appointment	:	25/06/2008

DIRECTOR 14

Name Of Subject	:	YORIHIKO KOJIMA
Address	:	5-53, MIYAZAKI 6-CHOME, MIYAMAE-KU, KAWASAKI-SHI, KANAGAWA, JAPAN.
IC / PP No	:	TE3145927



Nationality	:	JAPANESE
Date of Appointment	:	29/06/1995

MANAGEMENT

1)	Name of Subject	:	KENJI TAKAHASHI
	Position	:	GENERAL MANAGER

AUDITOR

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

COMPANY SECRETARIES

1)	Company Secretary	:	KENJI TAKAHASHI
	IC / PP No	:	G5138397X

	Address	:	6, NAROOMA ROAD, DUNEARN ESTATE, 298300, SINGAPORE.

	Remarks	:	AGENT

2)	Company Secretary	:	KUNIO FUKUMOTO
	IC / PP No	:	G5365956Q

	Address	:	1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

	Remarks	:	AGENT

BANKING

Banking relations are maintained principally with :

1)	Name	:	MIZUHO CORPORATE BANK, LTD

Name

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201113090	17/10/2011	N/A	SHINSEI BANK, LIMITED	-	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

Case No

106

Year

2008

Place

SINGAPORE

Court

SESSIONS COURT

Date Filed

15/02/2008

Solicitor

KRISHANASAMY RAVINTHERAN

Solicitor Ref

KR.0197.06

Solicitor Firm

K RAVI ASSOCIATES

Plaintiff

SHAZAHAN JAMAL UDDIN

Defendants

MITSUBISHI CORPORATION (S55FC1163)

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

Amount Claimed

350000

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

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	JAPAN
Credit Term	:	AS AGREED

Payment Mode	:	TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

CHEMICAL, MACHINERY

Services

BUILDING CONSTRUCTION, INFRASTRUCTURE

Total Number of Employees:
YEAR	2015	2014	2013	2012	2011
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	120	120	115	115	110

Branch

Other Information:

The Subject is principally engaged in the (as a / as an) building construction, infrastructure & trading of chemical, machinery.

The Subject's business fields cover the followings:

* Energy, Machinery/Metal/Global Environment
* Infrastructure, construction Business
* Logistics & Development
* Chemicals and Living Essentials

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that:

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-63381100
Match	:	N/A

Address Provided by Client	:	1, TEMASEK AVENUE, 19-00, MILLENIA TOWER,039192,SINGAPORE
Current Address	:	1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.
Match	:	YES

Other Investigations

On 17th June 2015 we contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2010 - 2014	]
Profit/(Loss) Before Tax	:	Increased	[	2010 - 2014	]
Return on Shareholder Funds	:	Unfavourable	[	(5.03%)	]
Return on Net Assets	:	Unfavourable	[	(3.42%)	]

The fluctuating turnover reflects the fierce competition among the existing and new market players.Higher losses before tax during the year could be due to the higher operating costs incurred. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

Working Capital Control
Stock Ratio	:	Favourable	[	1 Days	]
Debtor Ratio	:	Favourable	[	52 Days	]
Creditors Ratio	:	Favourable	[	41 Days	]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. 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	[	1.18 Times	]
Current Ratio	:	Unfavourable	[	1.19 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	:	Unfavourable	[	(2.13 Times)	]
Gearing Ratio	:	Unfavourable	[	2.75 Times	]

The Subject incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.


Overall Assessment :
The Subject's losses increased but its turnover showed a fluctuating trend. This indicate the Subject was slowly losing its market share due to its competitors. 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's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : POOR

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2009	2010	2011	2012

Population (Million)	4.98	5.08	5.18	5.31
Gross Domestic Products ( % )	(0.8)	14.5	4.9	1.3
Consumer Price Index	0.6	2.8	5.2	4.6
Total Imports (Million)	356,299.3	423,221.8	459,655.1	474,554.0
Total Exports (Million)	391,118.1	478,840.7	514,741.2	510,329.0

Unemployment Rate (%)	3.2	2.2	2.1	2.0
Tourist Arrival (Million)	9.68	11.64	13.17	14.49
Hotel Occupancy Rate (%)	75.8	85.6	86.5	86.4
Cellular Phone Subscriber (Million)	1.37	1.43	1.50	1.52

Registration of New Companies (No.)	26,414	29,798	32,317	31,892
Registration of New Companies (%)	4.3	12.8	8.5	(1.3)
Liquidation of Companies (No.)	22,393	15,126	19,005	17,218
Liquidation of Companies (%)	113.4	(32.5)	25.6	9.4

Registration of New Businesses (No.)	26,876	23,978	23,494	24,788
Registration of New Businesses (%)	8.15	(10.78)	2.02	5.51
Liquidation of Businesses (No.)	23,552	24,211	23,005	22,489
Liquidation of Businesses (%)	11.4	2.8	(5)	(2.2)

Bankruptcy Orders (No.)	2,058	1,537	1,527	1,748
Bankruptcy Orders (%)	(11.5)	(25.3)	(0.7)	14.5
Bankruptcy Discharges (No.)	3,056	2,252	1,391	1,881
Bankruptcy Discharges (%)	103.7	(26.3)	(38.2)	35.2

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
Food, Beverages & Tobacco	90.4	96.4	100.0	103.5
Textiles	145.9	122.1	100.0	104.0
Wearing Apparel	211.0	123.3	100.0	92.1
Leather Products & Footwear	79.5	81.8	100.0	98.6
Wood & Wood Products	101.4	104.0	100.0	95.5
Paper & Paper Products	95.4	106.1	100.0	97.4
Printing & Media	100.9	103.5	100.0	93.0
Crude Oil Refineries	96.4	95.6	100.0	99.4
Chemical & Chemical Products	80.3	97.6	100.0	100.5
Pharmaceutical Products	49.1	75.3	100.0	109.7
Rubber & Plastic Products	101.2	112.3	100.0	96.5
Non-metallic Mineral	91.9	92.5	100.0	98.2
Basic Metals	92.6	102.2	100.0	90.6
Fabricated Metal Products	90.8	103.6	100.0	104.3
Machinery & Equipment	57.3	78.5	100.0	112.9
Electrical Machinery	86.8	124.1	100.0	99.3
Electronic Components	85.2	113.6	100.0	90.6
Transport Equipment	96.0	94.0	100.0	106.3

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 :	CONSTRUCTION


For the whole of 2013, the sector expanded by 5.9%, slower than the growth of 8.6% in the previous year. Total construction output increased by 5.4% on the back of robust private and public residential building activities. Besides, total construction demand increased by 17% to $36 billion in 2013, setting a new record high. The increase was driven by robust construction demand from the public sector.

Public sector construction demand rose by 56% to $15 billion in 2013. The increase was supported by a ramp-up of public-housing developments and significant increase in civil engineering construction demand on account of the award of various Thomson MRT Line contracts. Besides, despite a slight drop of 1.1%, total private sector construction demand remained relatively strong at $21 billion. Demand was fuelled by residential developments, where contracts awarded increased by 15% to reach $9.8 billion in 2013, the highest on record. Besides, civil engineering construction demand contracted by 45% due to the high base in 2012. However, the value of civil engineering contracts awarded in 2013 was still higher than that achieved between 2009 and 2011, supported largely by the construction of major utilities and berth facilities.

In 2013, construction output has increased by 5.4% to reach $33 billion, surpassing the previous peak of $32 billion in 2012. Growth was underpinned by strong on-site construction activities for public and private residential, private industrial and civil engineering developments. Total construction output in 2014 is projected to rise to between $34 billion and $36 billion, supported by record high levels of contracts awarded in 2013 and continued robust on-site activities from the high levels of demand since 2011.

Public sector construction output reached $12 billion in 2013, comparable to that achieved in 2012, supported largely by an increase in onsite construction activities for public housing (18%) and institutional and other building (4.7%) projects. Some of the major institutional building projects under construction included the Singapore University of Technology and Design (SUTD) Campus Phase 1, Ng Teng Fong Hospital, National Heart Centre, National Art Gallery and Victoria Concert Hall. Additionally, even though civil engineering construction output has contracted by 9.6% in 2013, progress payments remained robust at $4.8 billion, supported by new rail construction such as the Downtown Line Stages 2 & 3 as well as other infrastructure projects like Tuas West Extension and Marina Coastal Expressway.

Private sector construction output expanded by 8.3% to $21 billion in 2013, underpinned by growth across all development types. In particular, robust growth in on-site construction activities for residential developments (13%) and civil engineering (14%) projects supported overall output growth.

BCA forecasts total construction demand in 2014 to be between $31 billion and $38 billion. Demand from the public sector is expected to strengthen to between $19 billion and $22 billion, contributing close to 60% of projected total construction demand. The boost to overall demand is likely to come from stronger institutional and civil engineering construction works. At the same time, private sector demand is projected to soften to between $12 billion and $16 billion, due to the anticipated reduction in residential construction demand as property market sentiments remain subdued following the various property cooling measures.

Furthermore, BMI continues to expect construction and infrastructure growth in Singapore to moderate over the 2014-2020 period. Real growth for the construction sector is forecast to slow from 5.9% in 2014 to3.0% in 2019, while real growth for the infrastructure sector is expected to fall from 12.7% in 2014 to 4.0%in 2019. This moderation is primarily due to declining housing demand, longer construction periods for planned infrastructure projects and a poor export outlook, which could curb investment in non-residential buildings.

In September 2014, Singapore's Land Transit Authority (LTA) announced that Phase 2 of the Mass Rapid Transit (MRT) system's Downtown Line would open ahead of schedule in Q116. The project had previously been delayed by financial troubles at one of its key contractors, and was expected to come online only by Q216. Phase 2 of the Downtown Line will include 12 stations, nine of which will be completely new. The project's total cost is estimated at approximately SGD800mn.

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1955, the Subject is a Foreign company, focusing on building construction & provide other related service. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares.

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 120 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.

Despite the higher turnover, the Subject suffered pre-tax losses which reflected a highly competitive business environment. 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. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at USD 51,303,147, the Subject should be able to maintain its business in the near terms.

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth . 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.

In view of the above, we recommend credit be granted to the Subject with close monitoring.

PROFIT AND LOSS ACCOUNT

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

Financial Year End	2014-03-31	2013-03-31	2012-03-31	2011-03-31	2010-03-31
Months	12	12	12	12	12
Consolidated Account	Company	Company	Company	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	FULL	FULL
Currency	USD	USD	USD	USD	USD

TURNOVER	648,044,958	646,847,535	984,801,787	807,286,317	512,037,864
	----------------	----------------	----------------	----------------	----------------
Total Turnover	648,044,958	646,847,535	984,801,787	807,286,317	512,037,864
Costs of Goods Sold	(631,045,054)	(623,479,704)	(953,617,458)	(785,992,954)	(491,859,645)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	16,999,904	23,367,831	31,184,329	21,293,363	20,178,219
	----------------	----------------	----------------	----------------	----------------

PROFIT/(LOSS) FROM OPERATIONS	(2,579,826)	(501,672)	11,859,472	5,849,509	1,229,242
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	(2,579,826)	(501,672)	11,859,472	5,849,509	1,229,242
Taxation	-	(76,675)	(1,972,610)	(1,466,549)	(427,275)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	(2,579,826)	(578,347)	9,886,862	4,382,960	801,967
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	53,882,973	54,461,320	44,574,458	40,191,498	39,389,531
	----------------	----------------	----------------	----------------	----------------
As restated	53,882,973	54,461,320	44,574,458	40,191,498	39,389,531
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	51,303,147	53,882,973	54,461,320	44,574,458	40,191,498
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	51,303,147	53,882,973	54,461,320	44,574,458	40,191,498
	=============	=============	=============	=============	=============

INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	134,331	198,817	247,769	345,517	197,523
Term loan / Borrowing	203,911	908,790	498,666	547,931	-
Others	484,713	40,616	318,123	417,686	1,500,202
	----------------	----------------	----------------	----------------	----------------
	822,955	1,148,223	1,064,558	1,311,134	1,697,725
	=============	=============	=============	=============	=============

DEPRECIATION (as per notes to P&L)	345,701	361,391	409,714	293,908	349,299
	----------------	----------------	----------------	----------------	----------------
	345,701	361,391	409,714	293,908	349,299
	=============	=============	=============	=============	=============

BALANCE SHEET

ASSETS EMPLOYED:
FIXED ASSETS	2,996,462	2,673,449	2,977,386	2,314,061

Others	-	-	652,487	652,487
	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	-	-	652,487	652,487

INTANGIBLE ASSETS
Deferred/Expenditure carried forward	652,487	652,487	-	-
	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	652,487	652,487	-	-
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	3,648,949	3,325,936	3,629,873	2,966,548

Stocks	2,082,679	2,220,420	2,451,075	1,434,062
Contract work-in-progress	219,320	11,678	-	-
Trade debtors	92,761,221	92,316,510	83,884,929	81,074,875
Other debtors, deposits & prepayments	181,663,313	193,964,543	241,100,421	207,639,033
Amount due from related companies	1,273,113	-	4,863,901	-
Cash & bank balances	19,585,546	20,008,197	15,682,805	19,019,303
Others	-	-	397,239	3,047
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	297,585,192	308,521,348	348,380,370	309,170,320
	----------------	----------------	----------------	----------------
TOTAL ASSET	301,234,141	311,847,284	352,010,243	312,136,868
	=============	=============	=============	=============

CURRENT LIABILITIES
Trade creditors	70,982,461	64,488,252	92,235,888	78,517,685
Other creditors & accruals	30,066,562	44,807,716	17,564,466	14,027,238
Bank overdraft	15,832,768	23,852,558	24,168,302	165,156,888
Short term borrowings/Term loans	89,729,784	39,188,533	-	-
Other borrowings	35,602,589	84,985,053	116,155,899	-
Amounts owing to related companies	-	-	44,757,510	-
Provision for taxation	506,000	541,520	2,591,743	1,432,232
Other liabilities	7,135,715	25,564	-	8,089,289
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	249,855,879	257,889,196	297,473,808	267,223,332
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	47,729,313	50,632,152	50,906,562	41,946,988
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	51,378,262	53,958,088	54,536,435	44,913,536
	=============	=============	=============	=============

Retained profit/(loss) carried forward	51,303,147	53,882,973	54,461,320	44,574,458
	----------------	----------------	----------------	----------------
TOTAL RESERVES	51,303,147	53,882,973	54,461,320	44,574,458

	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	51,303,147	53,882,973	54,461,320	44,574,458

Deferred taxation	75,115	75,115	75,115	339,078
	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	75,115	75,115	75,115	339,078
	----------------	----------------	----------------	----------------
	51,378,262	53,958,088	54,536,435	44,913,536
	=============	=============	=============	=============

FINANCIAL RATIO

TYPES OF FUNDS
Cash	19,585,546	20,008,197	15,682,805	19,019,303
Net Liquid Funds	3,752,778	(3,844,361)	(8,485,497)	(146,137,585)
Net Liquid Assets	45,646,634	48,411,732	48,455,487	40,512,926
Net Current Assets/(Liabilities)	47,729,313	50,632,152	50,906,562	41,946,988
Net Tangible Assets	50,725,775	53,305,601	54,536,435	44,913,536
Net Monetary Assets	45,571,519	48,336,617	48,380,372	40,173,848
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	(1,756,871)	646,551	12,924,030	7,160,643
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	(1,411,170)	1,007,942	13,333,744	7,454,551
BALANCE SHEET ITEMS
Total Borrowings	141,165,141	148,026,144	140,324,201	165,156,888
Total Liabilities	249,930,994	257,964,311	297,548,923	267,562,410
Total Assets	301,234,141	311,847,284	352,010,243	312,136,868
Net Assets	51,378,262	53,958,088	54,536,435	44,913,536
Net Assets Backing	51,303,147	53,882,973	54,461,320	44,574,458
Shareholders' Funds	51,303,147	53,882,973	54,461,320	44,574,458
Total Share Capital	0	0	0	0
Total Reserves	51,303,147	53,882,973	54,461,320	44,574,458
LIQUIDITY (Times)
Cash Ratio	0.08	0.08	0.05	0.07
Liquid Ratio	1.18	1.19	1.16	1.15
Current Ratio	1.19	1.20	1.17	1.16
WORKING CAPITAL CONTROL (Days)
Stock Ratio	1	1	1	1
Debtors Ratio	52	52	31	37
Creditors Ratio	41	38	35	36
SOLVENCY RATIOS (Times)
Gearing Ratio	2.75	2.75	2.58	3.71
Liabilities Ratio	4.87	4.79	5.46	6.00
Times Interest Earned Ratio	(2.13)	0.56	12.14	5.46
Assets Backing Ratio	-	-	-	-
PERFORMANCE RATIO (%)
Operating Profit Margin	(0.40)	(0.08)	1.20	0.72
Net Profit Margin	(0.40)	(0.09)	1.00	0.54
Return On Net Assets	(3.42)	1.20	23.70	15.94
Return On Capital Employed	(2.59)	0.82	16.42	3.41
Return On Shareholders' Funds/Equity	(5.03)	(1.07)	18.15	9.83
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.63.51
UK Pound	1	Rs.100.94
Euro	1	Rs.72.32

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	VNT

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.