MIRA INFORM REPORT

Report Date :

13.11.2013

IDENTIFICATION DETAILS

Name :	PHYSICAL DIALOG CO LTD

Registered Office :	2-7-1 Kuriki Asoku Kawasaki Kanagawa-Pref 215-0033

Country :	Japan

Date of Incorporation :	July, 2010

Legal Form :	Limited Company (Kabushiki Kaisha)

Line of Business :	Wholesale, retail survival kit for disaster

No. of Employees :	Not Available

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

Status :	Moderate

Payment Behaviour :	Unknown

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

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

NOTE

In absence of financials, no credit limit could be recommended.

company name

PHYSICAL DIALOG CO LTD

REGD NAME

KK Physical Dialog

MAIN OFFICE

2-7-1 Kuriki Asoku Kawasaki Kanagawa-Pref 215-0033 JAPAN

Tel: 044-987-6560

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

E-mail: (thru the URL)

ACTIVITIES

Wholesale, retail survival kit for disaster

BRANCHES

Nil

OFFICER(S)

SHINICHIRO MINAKAWA REP DIR

MASATO FUKAGAWA, PRES

FINDINGS

This is a trading firm for import, wholesale and retail of special supplies for disaster: portable toilets/shower, sleeping bags, glasses, masks, lantern, other. This firm does not disclose any financials and the registered address is different from the as given. We asked number of times for regd address and financials but the firm (Masato Fukagawa) was very adamant not to disclose other than is stipulated in the report

REGISTRATION

Date Registered: Jul 2010

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 1,040

Issued: 260 shares

Sum: Yen 13 million

Major shareholders (%): Shinichiro Minakawa, Masato Fukagawa (but this not confirmed)

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

OPERATION

Activities: Imports, wholesales and retails (including online shops) emergency/disaster supplies: sleeping bags, portable toilet/shower, glasses, lantern, masks, other (--100%).

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

Bank References:

SMBC (Kawasaki)

Relations: Satisfactory

FINANCES

(In Million Yen)

NOT DISCLOSED AND UNAVAILABLE.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.59
UK Pound	1	Rs.101.56
Euro	1	Rs.85.15

INFORMATION DETAILS

Report Prepared by :

SDA

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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