MIRA INFORM REPORT

Report Date :

24.09.2012

IDENTIFICATION DETAILS

Name :	TODO SEISAKUSHO LTD

Registered Office :	No. 10 Hase Bldg 2F, 391 Osakacho Karasuma-5-jyo Shimogyoku Kyoto 600-8177

Country :	Japan

Financials (as on) :	31.12.2011

Date of Incorporation :	January 1945

Com. Reg. No.:	(Kyoto-Shimogyoku) 018180

Legal Form :	Limited Company

Line of Business :	Manufacturer of textile machines

No. of Employees :	73 employees

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
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

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

TODO SEISAKUSHO LTD

REGD NAME

KK Todo Seisakusho

MAIN OFFICE

No. 10 Hase Bldg 2F, 391 Osakacho Karasuma-5-jyo Shimogyoku Kyoto 600-8177 JAPAN

Tel: 075-371-0701 Fax: 075-371-0708

URL: http://www.todo-ltd.co.jp/

E-Mail address: td-somu@todo-ltd.co.jp

ACTIVITIES

Mfg of textile machines

BRANCHES

Osaka

OVERSEAS AGENTS

Yuil Texma Co Ltd (Korea); PD Surya Lestari (Indonesia); Trans World Marketing (India); Mr Tsai Chia Shu

(Taiwan) Peden Textile Equipment Co (USA); Shanghai Todo Machinery Mfg Co Ltd (China)

FACTORIES

Shiga

OVERSEAS

Shanghai Todo Machinery Mfg (China) (subsidiary)

OFFICERS

TAKASHI WADA, PRES Toshiyuki Todo, ch

Yoshiaki Ikeda, dir Kazuo Fukada, dir

Shigetaka Ashida, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES R/WEAK A/SALES Yen 1,117 M

PAYMENTS SLOW CAPITAL Yen 100 M

TREND SLOW WORTH Yen 246 M

STARTED 1945 EMPLOYES 73

COMMENT

MFR SPECIALIZING IN TEXTILE MACHINES.

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

HIGHLIGHTS

The subject company was established originally in 1905 by a certain Todo in order to make most of his experience in the subject line of business, on his account, and has been succeeded by his descendants. This is a specialized mfr of textile machines & equipment (See OPERATION). Has a subsidiary factory in China, Shanghai Todo Machinery Mfg Co Ltd, founded in 1994. 6 appointed agents centrally in Asian countries, including one in USA. Clients are major electronics devices mfrs nationwide. Goods are also imported and exported.

FINANCIAL INFORMATION

Financials are only partially disclosed for the 31/12/2011 fiscal term.

The sales volume for Dec/2011 fiscal term amounted to Yen 1,117 million, a 4% down from Yen 1,169 million in the previous term. The high Yen ate into earnings & profits in Yen terms. The operations came back to profitability to post Yen 3 million net profit, compared with Yen 63 million net losses a year ago.

For the current term ending Dec 2012 the net profit is projected at Yen 10 million, on a 3% rise in turnover, to Yen 1,150 million.

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.

REGISTRATION

Date Registered: Jan 1945

Regd No.: (Kyoto-Shimogyoku) 018180

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 800,000 shares

Issued: 200,000 shares

Sum: Yen 100 million

Major shareholders (%): Toshiyuki Todo (18.8), Akiko Kitamura (12.6), Takashi Wada (6.8)

No. of shareholders: 54

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

OPERATION

Activities: Manufactures semiconductor-related machines, textile machines;

Other (--100%)

Goods are also imported and exported.

(Mfg products):

Automated Machinery Div: tape & reeling machines, direct-in taping machines, auto reel charger, inserter/remover for burn-in board, automatic IC inserter/remover for burn-in board;

Textile Machinery Div: automatic drawing machines, warp typing machines, reed drawing machines, warp leasing machines, reaching machines, dropper pinning machines;

Storage & Transport Equipment Div: (for the weaving factory) warp flow system, warp beam carrier, manual warp beam carrier, cloth roll doffer carrier, warp jointer, beam stocker

Clients: [Electronics mfrs, wholesalers] Sony Corp, NEC, Mitsubishi Electric, NEC Factory Engineering, Toshiba Corp, Sharp Corp, Rohm Co, Oki Electric Ind, Panasonic Electronic Device, Renesas Technology, Toyota Tsusho Corp, Marubeni Corp, Fujitsu Ltd, Asahi Kasei Micro System, Nissan Kiko Co, other.

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sanko Kiko Co, Takebishi Electric Sales, Kyoto Eikosha, Kolec Co, KISTEM Co, Yamashina Engineering, Hokuriku Kogyo Co, Kyoei Nichiyu Co, Kolec Co, other.

Imports from China, etc.

Payment record: slow

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

Bank References:

Bank of Kyoto (H/O)

MUFG (Kyoto-Chuo)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:	31/12/2011	31/12/2010	31/12/2009	31/12/2008
Annual Sales	1,117	1,169	814	1,571
Recur. Profit		-186	-186
Net Profit	3	-63	-193	5
Total Assets		1,527	1,691	1,579
Current Assets		997	1,155
Current Liabs		586	603
Net Worth	246	243	307	500
Capital, Paid-Up		100	100	100
Div.P.Share(¥)		0.00	0.00	0.00
*<Analytical Data>*	(%)	(%)	(%)	(%)
S.Growth Rate	-4.45	43.61	-48.19	-19.10
Current Ratio	..	170.14	191.54	..
N.Worth Ratio	..	15.91	18.15	31.67
R.Profit/Sales	..	-15.91	-22.85	..
N.Profit/Sales	0.27	-5.39	-23.71	0.32
Return On Equity	..	-25.93	-62.87	1.00

Notes: Resulted figures for the 31/12/2011 fiscal term, which only partially disclosed.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.91
UK Pound	1	Rs.87.60
Euro	1	Rs.70.01

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.