MIRA INFORM REPORT

Report Date :

19.10.2013

IDENTIFICATION DETAILS

Name :	LNG JAPAN CORPORATION
Registered Office :	Roppongi First Bldg 14F, 1-9-9 Roppongi Minatoku Tokyo 106-0032
Country :	Japan
Financials (as on) :	31.03.2013
Date of Incorporation :	October 2001
Com. Reg. No.:	0104-01-004861 (Tokyo-Minatoku
Legal Form :	Limited Company
Line of Business :	LNG project development, importer & wholesaler of LNG
No. of Employees :	63

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

LNG JAPAN CORPORATION

REGD NAME

LNG Japan KK

MAIN OFFICE

Roppongi First Bldg 14F, 1-9-9 Roppongi Minatoku Tokyo 106-0032 JAPAN

Tel: 03-6229-3400 Fax: 03-3588-1094

URL: http://www.lngjapan.com/

E-Mail address: info@lngjapan.com

ACTIVITIES

Import, wholesale of LNG

BRANCHES

Osaka, Nagoya, Hiroshima, Fukuoka

OVERSEAS

Jakarta, Doha, Houston, London

LNGJ USA Inc (New York) (subsidiary)

OFFICER(S)

YASUNORI TAKAGI, PRES Tatsusaburo Kimura, v pres

Satoru Takahama, dir Hiroshi Kawahara, dir

Shingo Ueno, dir Kazuyuki Onose, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 424,073 M

PAYMENTS No Complaints CAPITAL Yen 8,002 M

TREND SLOW WORTH Yen 29,330 M

STARTED 2001 EMPLOYES 63

COMMENT

IMPORTER & WHOLESALER OF LNG, JOINTLY OWNED BY SOJITZ CORP & SUMITOMO CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

HIGHLIGHTS

The subject company was established originally in 1973 on signing sales contract with Pertamina (Indonesia) for importing LNG and founded Japan Indonesia Co Ltd by Nissho Iwai Corp (now Sojitz Corp). The contract was for buying 740,000 tons/year from Pertamina. In Aug 1977, the first LNG tanker arrived. In 1987, established a JV with PT Pertamina, Nusantara Gas Service Co Inc. In 1990, sales contract signed with Badak IV LNG. In 1997, invested capital to Ras Laffan LNG Co Ltd in Qatar. In 1999, acquired Muturi Block in Indonesia for Tangguh LNG project. In 2001, reorganized and established the subject jointly with Sumitomo Corp. Engaged in LNG project development, imports & wholesale of LNG, transportation, LNG intelligent service (website), other. LNG is imported from Indonesia. Clients include electric power companies, city gas companies, steel maker, other, nationwide.

FINANCIAL INFORMATION

The sales volume for Mar/2013 fiscal term amounted to Yen 424,073 million, an 18% down from Yen 519,585 million in the previous term. Spot buying was decreased from the highest last year. The recurring profit was posted at Yen 7,049 million and the net profit at Yen 2,897 million, respectively, compared with Yen 5,402 million recurring profit and Yen 2,656 million net profit, respectively, a year ago.

For the current term ending Mar 2014 the recurring profit is projected at Yen 7,100 million and the net profit at Yen 3,000 million, on a 5% rise in turnover, to Yen 445,000 million.

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

REGISTRATION

Date Registered: Oct 2001

Regd No.: 0104-01-004861 (Tokyo-Minatoku)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 160,000 shares

Issued: 160,000 shares

Sum: Yen 8,002 million

Major shareholders (%): Sojitz Corp* (50), Sumitomo Corp** (50)

No. of shareholders: 2

* Trading company born by merger of former Nissho-Iwai Corp and Nichimen Corp, founded 2003, listed Tokyo S/E, capital Yen 160,339 million, turnover Yen 4,494,237 million, operating profit Yen 33,305 million, recurring profit Yen 34,478 million, net profit Yen 14,263 million, total assets Yen 2,183,114 million, net worth Yen 407,498 million, employees 16,273, pres Yoji Sato

** General trading company, nucleus of Sumitomo group, founded 1919, listed Tokyo, Nagoya, Fukuoka S/E’s, capital Yen 219,279 million, turnover Yen 7,502,724 million, operating profit Yen 162,481 million, recurring profit Yen 319,021 million, net profit Yen 232,451 million, total assets Yen 7,999,640 million, net worth Yen 2,183,744 million, employees 73,953, pres Kuniharu Nakamura

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

OPERATION

Activities: LNG project development, imports & wholesales LNG, others (100%)

LNG imports & wholesales (95%), marine fuels (5%).

LNG is transported by own vessels and chartered vessels form NYK and Mitsui OSK Lines.

Clients: [Electric powers, gas firms, steel makers] Chubu Electric Power, Kansai Electric Power , Osaka Gas Co, Kyushu Electric Power, Tokyo Gas Energy, Toho Gas, JX Nippon Oil & Sumikin Metals, Hiroshima Gas, other.

No. of accounts: 50

Domestic areas of activities: Nationwide

Suppliers: [Oil refineries] PT Pertamina (Indonesia), other Charters ships from NYK and Mitsui OSK Lines for transport.

Payment record: No Complaints

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

Bank References:

Mizuho Bank (H/O)

MUFG (Tokyo)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:		31/03/2014	31/03/2013	31/03/2012	31/03/2011
Annual Sales		445,000	424,073	519,585	559,475
Recur. Profit		7,100	7,049	5,402	3,212
Net Profit		3,000	2,897	2,656	549
Total Assets			90,803	94,983	89,471
Current Assets			28,281	30,823	24,384
Current Liabs			35,634	42,963	36,641
Net Worth			29,330	28,200	25,902
Capital, Paid-Up			8,002	8,002	8,002
Div.P.Share(¥)			0.00	0.00	0.00
<Analytical Data>		(%)	(%)	(%)	(%)
S.Growth Rate		4.93	-18.38	-7.13	18.57
Current Ratio		..	79.37	71.74	66.55
N.Worth Ratio		..	32.30	29.69	28.95
R.Profit/Sales		1.60	1.66	1.04	0.57
N.Profit/Sales		0.67	0.68	0.51	0.10
Return On Equity		..	9.88	9.42	2.12

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.28
UK Pound	1	Rs.99.03
Euro	1	Rs.83.80

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.