MIRA INFORM REPORT

Report Date :

08.04.2011

IDENTIFICATION DETAILS

Correct Name :	HOXAN CORPORATION

Registered Office :	1-7-6 Shinkiba Kotoku Tokyo 136-0082

Country :	Japan

Financials (as on) :	31.03.2011

Date of Incorporation :	September 1948

Com. Reg. No.:	(Tokyo-Kotoku) 007798

Legal Form :	Limited Company

Line of Business :	Manufacturer of fancy veneer & plywood

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	Yen 84.1 Million
Status :	Moderate
Payment Behaviour :	Regular
Litigation :	----

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, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Japan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

HOXAN CORPORATION

REGD NAME

Hokusan KK

MAIN OFFICE

1-7-6 Shinkiba Kotoku Tokyo 136-0082 JAPAN

Tel: 03-3521-2111 Fax: 03-3521-6644

*.. The given address is of its Chiba Branch Office (Chiba Center)

URL: www.hoxan.co.jp

E-mail: hox-tokyo@hoxan.co.jp

ACTIVITIES

Mfg of fancy veneer & plywood

BRANCHES

Chiba, Nagoya, Shizuoka

OVERSEAS

USA, Brazil, Bolivia

FACTORIES

Ryugasaki (Ibaraki-Pref), Shizuoka

OFFICER(S)

SHIN’ICHI OYAMA, PRES Osamu Kato, dir

Toshiyuki Ozeki, dir Kazuhiko Sakai, dir

Hidemi Katahira, dir Hisashi Tobe, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 4,834 M

PAYMENTS REGULAR CAPITAL Yen 369 M

TREND SLOW WORTH Yen 1,752 M

STARTED 1948 EMPLOYES 243

COMMENT

MFR OF FANCY VENEER PLYWOOD.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

MAX CREDIT LIMIT: YEN 84.1 MILLION, 30 DAYS NORMAL TERMS

HIGHLIGHTS

The subject company was established originally in 1918 by Kanematsu Oyama as a footwear shop in Hokkaido, on his account. In 1924 established Hokusan Shokai, on his account, and started to sell veneer plywood. Incorporated in 1948 and the firm has been succeeded by his descendants. In 1951 started to produce veneer overlaid plywood. This is a specialized mfr of decorative fancy veneer as a mainline. Produces one million square meters of veneer monthly from logs that come from all over the world. Products are also imported and exported.

Re queries raised: No such negative information is reported in the market. No direct relationship with military or governments in the parties mentioned. Board members are all free from military or government employment.

FINANCIAL INFORMATION

The sales volume for Mar/2010 fiscal term amounted to Yen 4,834 million, a 22% down from Yen 6,218 million in the previous term, as affected by the global economic downturn. The domestic construction/housing markets were substantially down pressed with no newbuilding orders heard as much as before. The operations continued in the red to register Yen 376 million recurring loss and Yen 524 million net loss, respectively, compared with Yen 181 million recurring loss and Yen 197 million net losses, respectively, a year ago. .

For the term that just ended Mar 2011 the operations were projected to come back to profitability to post Yen 100 million recurring profit and Yen 100 million net profit, respectively, on a 3% rise in turnover to Yen 5,000 million. Newbuilding or house remodeling/refurbishing orders revived. Final results are yet to be released.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 84.1 million, on 30 days normal terms.

REGISTRATION

Date Registered: Sept 1948

Regd No.: (Tokyo-Kotoku) 007798

Legal Status: 　Limited Company (Kabushiki Kaisha)

Authorized: 　24 million shares

Issued: 　 7,385,000 shares

Sum: 　Yen 369,280,000.00

Major shareholders (%): Nortresd Japan* (52), Mizuho Bank (0.8), MUFG (0.8), Resona Bank (0.8), Johoku Shinkin Bank (0.8)

*.. Holding company of the group firms

No. of shareholders: 247

Nothing detrimental is known as to the commercial morality of executives.

OPERATION

Activities: Manufactures decorative fancy veneer, flexible veneer sheet, plywood, timber, other (--100%).

Material woods are imported from USA, Canada, South America, Africa, other

Clients: [Mfrs, wholesalers] Karimoku Group, Panasonic Electric Ind, Yamaha Corp, Jacaranda Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Suto Inc, Itochu Building Materials, Hokusan Hokkaido, other.

Imports from USA, Canada, Brazil, Bolivia, S/E Asia, other

Payment record: Regular

Location: Business area in Tokyo. Office premises at the caption address are owned and maintained satisfactorily.

Bank References:

Mizuho Bank (Fukagawa)

MUFG (Fukagawa)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:	31/03/2011	31/03/2010	31/03/2009	31/03/2008
Annual Sales	5,000	4,834	6,218	8,669
Recur. Profit	100	-376	-181
Net Profit	100	-524	-197	182
Total Assets		7,197	8,570	8,864
Current Assets		5,147	6,411
Current Liabs		2,469	3,456
Net Worth		1,752	2,244	2,544
Capital, Paid-Up		369	369	369
Div.P.Share(¥)		0.00	0.00	0.00
*<Analytical Data>*	(%)	(%)	(%)	(%)
S.Growth Rate	3.43	-22.26	-28.27	0.52
Current Ratio	..	208.46	185.50	..
N.Worth Ratio	..	24.34	26.18	28.70
R.Profit/Sales	2.00	-7.78	-2.91	..
N.Profit/Sales	2.00	-10.84	-3.17	2.10
Return On Equity	..	-29.91	-8.78	7.15

Notes: Forecast (or estimated) figures for the 31/03/2011 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.22
UK Pound	1	Rs.71.97
Euro	1	Rs.63.23

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

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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