MIRA INFORM REPORT

Report Date :

17.09.2012

IDENTIFICATION DETAILS

Name :	CHUKAN BUTSU LTD
Registered Office :	Shiono Nissei Bldg 7F, 2-6-6 Doshomachi Chuoku Osaka 541-0045
Country :	Japan
Financials (as on) :	31.12.2011
Date of Incorporation :	February 1990
Com. Reg. No.:	(Osaka-Chuoku) 084395
Legal Form :	Limited Company
Line of Business :	Import, export, wholesale of industrial chemicals
No. of Employees :	21 employees

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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Japan	A1	A1

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

japan - ECONOMIC OVERVIEW

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA

Company name

CHUKAN BUTSU LTD

REGD NAME

Chukan Butsu Shoji KK

MAIN OFFICE

Shiono Nissei Bldg 7F, 2-6-6 Doshomachi Chuoku Osaka 541-0045 JAPAN

Tel: 06-6231-5127 Fax: 06-6222-5126

URL: http://www.chukan.co.jp/

E-Mail address: nishioka@chukan.co.jp

ACTIVITIES

Import, export, wholesale of industrial chemicals

BRANCHES

Tokyo, Hyogo (Distribution Center)

OVERSEAS

Nantong (China), Pune (India) (--rep offices)

OVERSEAS

Taizhou Yutai Intermediate Factory (JV with Taizhou Zhogjian Co Ltd, China)

OFFICER(S)

SHINGO TSUKUDA, PRES Hiroki Kadota, dir

Takuya Nishioka, dir Tomohito Taniguchi, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 2,124 M

PAYMENTS No Complaints CAPITAL Yen 20 M

TREND STEADY WORTH Yen 269 M

STARTED 1990 EMPLOYES 21

COMMENT

TRADING FIRM SPECIALIZING IN INDUSTRIAL CHEMICALS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

HIGHLIGHTS

The subject company was established in order to succeed business operations of the former E Horibata Co Ltd, founded 1929, for importing intermediates for colorants, pharmaceuticals, pigments, dyestuffs, other intermediates from Germany. Reorganized in 1990, the firm was renamed as captioned. This is a specialized trading firm for import, export and wholesale of industrial chemicals: pharmaceuticals intermediates, pigments, dyestuffs, other industrial chemicals. About 60% of the goods are imported from China and India. The firm offers technical transfer, outsourcing and OEM services, too. Founded Yashiro Distribution Center in 1994, authorized warehouse for medical supplies, dangerous & poisonous cargoes. In 1995 formed Taizhou Yutai Intermediate Factory, Taizhou, Jiangu (China), JV with Taizhou Zhogjian Co Ltd, China. In 1996 opened Nantong Branch Office, China. In 2006 opened representative office in Pune, India. Clients are specialized chemical mfrs nationwide.

FINANCIAL INFORMATION

The sales volume for Dec/2011 fiscal term amounted to Yen 2,124 million, an 18% up from Yen 1,804 million in the previous term. Exports and imports from and into China & India were robust and leaped. Price hikes of the materials also assisted. The recurring profit was posted at Yen 111 million and the net profit at Yen 17 million, respectively, compared with Yen 56 million recurring profit and Yen 59 million net profit, respectively, a year ago. Foreign currency exchange losses were incurred, as reported.

For the current term ending Dec 2012 the recurring profit is projected at Yen 120 million and the net profit at Yen 20 million, respectively, on a 4% rise in turnover, to Yen 2,200 million. Production in China is rising. Demand is rising both at home and abroad.

The financial situation is considered FAIR and good for ORDINARY business engagements.

REGISTRATION

Date Registered: Feb 1990

Regd No.: (Osaka-Chuoku) 084395

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 1,600 shares

Issued: 800 shares

Sum: Yen 20 million

Major shareholders (%): Chukan Butsu Butsuryu* (46) * Subsidiary

No. of shareholders: 4

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

OPERATION

Activities: Imports, exports and wholesales food additives, olive oils, other fine chemicals (--55%), intermediate for pharmaceuticals & agrochemicals, pigments, others (--20%), technical transfer, consulting, others (--25%).

Clients: [Chemical mfrs, wholesalers] Clariant (Japan) KK, Nippon Kayaku, Mikuni Pharmaceutical Ind, Nichijun Chemical, Sansui Shikiso Kogyo, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Chemical mfrs] Clauson-Kaas (Denmark), Hovione (Portugal), Palident Ltd (Israel), Organica Feinchemie GmbH (Germany), RRJ Dyes & Intermediates, Balaji Amines Ltd (--India), Taizhou Yatai Intermediate Factory (China), Dalchem (Russia), other from Czech, Russia, Hungary, etc.

Also supplied for exports from DIC, Sakai Chemical Ind, Kanto Chemical, other.

Payment record: No Complaints

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

Bank References:

MUFG (Osaka-Chuo)

Kinki Osaka Bank (Semba)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:		31/12/2012	31/12/2011	31/12/2010	31/12/2009
Annual Sales		2,200	2,124	1,804	1,598
Recur. Profit		120	111	56	13
Net Profit		20	17	59	16
Total Assets			1,452	1,274	1,146
Current Assets			1,061	840	721
Current Liabs			711	773	552
Net Worth			269	254	195
Capital, Paid-Up			20	20	20
Div.P.Share(¥)			0.00	0.00	0.00
<Analytical Data>		(%)	(%)	(%)	(%)
S.Growth Rate		3.58	17.74	12.89	-42.14
Current Ratio		..	149.23	108.67	130.62
N.Worth Ratio		..	18.53	19.94	17.02
R.Profit/Sales		5.45	5.23	3.10	0.81
N.Profit/Sales		0.91	0.80	3.27	1.00
Return On Equity		..	6.32	23.23	8.21

Notes: Forecast (or estimated) figures for the 31/12/2012 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.73
UK Pound	1	Rs.88.61
Euro	1	Rs.71.34

INFORMATION DETAILS

Report Prepared by :

MNL

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.