MIRA INFORM REPORT

Report Date :

14.01.2012

IDENTIFICATION DETAILS

Name :	SAKAI DYESTUFF CO LTD

Registered Office :	3-19-1 Matsumoto Fukui 910-0003

Country :	Japan

Financials (as on) :	31.12.2011

Date of Incorporation :	Jan 1970

Com. Reg. No.:	Fukui-Fukui) 001426

Legal Form :	Limited Company

Line of Business :	Import, Export, Wholesale of Dyestuffs, Chemicals, Floor Heating Systems

No. of Employees :	12

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	Yen 6.2 Million
Status :	Poor
Payment Behaviour :	Unknown
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 – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Japan

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

Company name

SAKAI DYESTUFF CO LTD

REGD NAME

KK Sakai Senryo Shokai

MAIN OFFICE

3-19-1 Matsumoto Fukui 910-0003 JAPAN

Tel: 0776-24-1018

Fax: 0776-27-6167

URL: N/A

ACTIVITIES

Import, export, wholesale of dyestuffs, chemicals, floor heating systems

BRANCHES

Takagi (Fukui)

FACTORIES

China, India, Indonesia (--subcontracted)

OFFICERS

YASUYUKI SAKAI, PRES

Yasusuke Sakai, s/mgn dir

Norio Sakai, dir

Yen Amount

In million Yen, unless otherwise stated

SUMMARY

FINANCES WEAK A/SALES Yen 520 M

PAYMENTS UNKNOWN CAPITAL Yen 10 M

TREND SLOW WORTH Yen (-) 98 M

STARTED 1970 EMPLOYES 12

COMMENT

TRADING FIRM SPECIALIZING IN DYESTUFFS & FLOOR HEATING SYSTEMS.

FINANCIAL SITUATION CONSIDERED WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMETNS.

MAX CREDIT LIMIT: YEN 6.2 MILLION, 30 DAYS, RECOMMENDING FULLY SECURED TERMS ON NEW TRANSACTIONS. NEGATIVE NET WORTH.

HIGHLIGHTS

The subject company was established originally in 1936 by father of Yasuyuki Sakai in order to make most of his experience in the subject line of business. Incorporated in 1970 the firm has been succeeded by his descendants. This is a trading firm for import, export and wholesale of dyestuffs and chemicals, floor heating systems, other. Operations diversified from dyestuffs & chemical trading to floor heating systems, other. Goods are manufactured at subcontracted factories in China, India and Indonesia.

FINANCIAL INFORMATION

Financial are only partially disclosed as from the Dec/2006 fiscal term.

The sales volume for Dec/2010 fiscal term amounted to Yen 520 million, a 7% down from Yen 560 million in the previous term. The net profit was posted at Yen 2 million, compared with Yen 10 million net losses a year ago.

For the term that just ended Dec 2011 the net profit was projected at Yen 2 million, on a 2% rise in turnover, to Yen 530 million. Final results are yet to be released.

The financial situation is considered WEAK but should be good for MODERATE business engagements. Max credit limit is estimated at Yen 6.2 million, on 30 days normal terms. We recommend fully secured terms on new transactions. Negative net worth.

REGISTRATION

Date Registered: Jan 1970

Regd No.: (Fukui-Fukui) 001426

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 80,000 shares

Issued: 20,000 shares

Sum: Yen 10 million

Major shareholders (%): Yasuyuki Sakai (37), Yasusuke Sakai (16.5), Hiroko Sakai (12.5), Toshinori Sakai (10), Tatsuji Sakai (10)

No. of shareholders: 7

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

OPERATION

Activities: Imports, exports and wholesales dyestuffs (30%), industrial chemicals, others (--30%), wholesales storage-type floor heating facilities & systems, including installation works (--40%).

Clients: [Mfrs, wholesalers] Seiren Co, Fukuvi Chemical Ind, Sakai Ovex Co, URASE Corp, Hokuriku Electric Power, Furukawa-Sky Aluminum Corp, Shin-Etsu Semiconductors, other

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Itochu Corp, Sumitomo Corp, Matsuura & Co, Miki & Co, Kiwa Chemical Ind, Kyoeisha Chemical Co, other.

Imports from China, India, Indonesia, other

Payment record: Unknown

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

Bank References:

· Fukui Bank (Matsumoto)

· Fukui Shinkin Bank (Matsumoto)

· Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:	31/12/2011	31/12/2010	31/12/2009	31/12/2008
Annual Sales	530	520	560	530
Recur. Profit
Net Profit	2	2	-10	-4
Total Assets		N/A	N/A	N/A
Net Worth		-98	-100	-90
Capital, Paid-Up		10	10	10
Div.P.Share(¥)		0.00	0.00	0.00
<Analytical Data>	(%)	(%)	(%)	(%)
S.Growth Rate	1.92	-7.14	5.66	-8.62
Current Ratio		..	..	..
N.Worth Ratio		..	..	..
N.Profit/Sales	0.38	0.38	-1.79	-0.75

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/12/2011 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.43
UK Pound	1	Rs.79.10
Euro	1	Rs.66.17

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.