MIRA INFORM REPORT

Report Date :

11.11.2013

IDENTIFICATION DETAILS

Name :	TSUNEISHI SHIPBUILDING CO LTD
Registered Office :	1083 Tsuneishi Numakumacho Fukuyama Hiroshima-Pref 720-0313
Country :	Japan
Financials (as on) :	31.12.2012
Date of Incorporation :	Jan, 2012
Com. Reg. No.:	2400-01-037704 (Shizuoka-Numazu)
Legal Form :	Limited Company (Kabushiki Kaisha)
Line of Business :	Shipbuilding: bulk carriers, tankers, car carriers, container carriers, wood chip carriers, ship repairs.
No. of Employees :	990

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, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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 and Address

TSUNEISHI SHIPBUILDING CO LTD

REGD NAME: Tsuneishi Zosen KK

MAIN OFFICE: 1083 Tsuneishi Numakumacho Fukuyama Hiroshima-Pref 720-0313 JAPAN

Tel: 084-987-1111 Fax: 084-987-0336

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

E-Mail address: (thru the URL)

ACTIVITIES

Shipbuilding, repairs

BRANCHES

Tokyo, Fukuoka

OVERSEAS

Philippines, China

FACTORIES

At the caption address, Tadotsu (subsidiary)

OVERSEAS

Cebu (Philippines), Zhoushan (China)

OFFICERS

TAKAO KAWAMOTO, PRES Akihiko Mishima, s/mgn dir

Kenichi Mori, ch Kenji Kawano, mgn dir

Yasunori Obatake, mgn dir Shigeru Fujii, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 189,984 M

PAYMENTSNO COMPLAINTS CAPITAL Yen 100 M

TREND UP WORTH Yen 33,976 M

STARTED 2012 EMPLOYES 990

COMMENT

SHIPBUILDER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

HIGHLIGHTS

The subject company was established originally in 1942 by Katsutaro Kambara as a ship operator, on his account. Incorporated in 1944 as Kambara Kisen Kaisha Ltd, and renamed as captioned later. This is a shipbuilder. In Jan 2007, merged 11 group firms to form newly a holding company, Tsuneishi Holdings Corporation. The holding firm had three core operation divisions (in-house division companies): shipbuilding (Tsuneishi Shipbuilding Company), shipping (Kambara Kisen Company), and support/others (Koshien Warehousing, other division companies). In Jan 2012, the subject spun off from the Holding Company and became independent.

FINANCIAL INFORMATION

The sales volume for Dec/2012 fiscal term amounted to Yen 189,984 million, a 12% up from Yen 169,437 million in the previous term. This is the second term after the inception, and the shipping market revived, with more demand for newbuilding ships. The recurring profit was posted at Yen 20,086 million and the net profit at Yen 14,313 million respectively, compared with Yen 13,348 million recurring profit and Yen 2,691 million net profit, respectively, a year ago (for the initial accounting term).

For the current term ending Dec 2013 the recurring profit is projected at Yen 22,000 million and the net profit at Yen 15,000 million, respectively, on a 5% rise in turnover, to Yen 200,000 million. Business is seen steadily expanding.

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

REGISTRATION

Date Registered: Jan 2012

Regd No.: 2400-01-037704 (Shizuoka-Numazu)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 8,000 shares

Issued: 2,000 shares

Sum: Yen 100 million

Major shareholders (%): Tsuneishi Holdings Corp* (100)

*.. Holding Company, founded 2007, capital Yen 100 million, sales Yen 5,990 million, net profit Yen 4,710 million, employees 24, pres Yasuharu Fushimi

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

OPERATION

Activities: Shipbuilding: bulk carriers, tankers, car carriers, container carriers, wood chip carriers, ship repairs (--100%)

Clients: [Mfrs, wholesalers] Mitsui & Co, Itochu Corp, Mitsubishi Corp, Kawasaki Kisen Kaisha, Mitsui OSK, Sumitomo Corp, Ugland, Mitsubishi Ore Transport Co, other

No. of accounts: 50

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Itochu Corp, Mitsubishi Corp, Tsuneishi Trading, THI, TZS, other

Payment record: No Complaints

Location: Business area in Fukuyama, Hiroshima-Pref. Office premises at the caption address are owned and maintained satisfactorily.

Bank References:

Chugoku Bank (Fukuyama)

Hiroshima Bank (Fukuyama)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:		31/12/2013	31/12/2012	31/12/2011
Annual Sales		200,000	189,984	169,437
Recur. Profit		22,000	20,086	13,348
Net Profit		15,000	14,313	2,691
Total Assets			218,090	231,147
Current Assets			179,139	102,010
Current Liabs			146,246	186,001
Net Worth			33,976	21,067
Capital, Paid-Up			100	100
Div.P.Share(¥)			0.00	0.00
<Analytical Data>		(%)	(%)	(%)
S.Growth Rate		5.27	12.13	..- - -
Current Ratio		..	122.49	54.84
N.Worth Ratio		..	15.58	9.11
R.Profit/Sales		11.00	10.57	7.88
N.Profit/Sales		7.50	7.53	1.59
Return On Equity		..	42.13	12.77

Notes: The 31/12/2011 fiscal term is the initial accounting term from the inception.

Forecast (or estimated) figures for the 31/12/2013 fiscal term

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.73
UK Pound	1	Rs.100.92
Euro	1	Rs.84.06

INFORMATION DETAILS

Report Prepared by :

NIT

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.