MIRA INFORM REPORT

Report Date :

01.08.2014

IDENTIFICATION DETAILS

Name :	DKSH JAPAN KK
Registered Office :	3-4-19 Mita Minatoku Tokyo 108-0073
Country :	Japan
Financials (as on) :	31.12.2014 (Estimated)
Date of Incorporation :	September 1965
Com. Reg. No.:	(Tokyo-Minatoku) 110147
Legal Form :	Limited Company (Kabushiki Kaisha)
Line of Business :	· Subject is a general Trading House with Handling Items expanded, ranging from Industrial Chemicals, Industrial Machinery to Watches, Textiles, Healthcare and Other Consumer Goods. Subject has three main divisions such as Luxury & Life Style, Performance Materials and Technology importer of watches and machinery from Switz.
No of Employees :	298

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 – June 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Japan	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

Source : CIA

Company name

DKSH JAPAN KK

REGD NAME

DKSH Japan KK

MAIN OFFICE

3-4-19 Mita Minatoku Tokyo 108-0073JAPAN

Tel: 03-5730-7311 Fax: 03-5730-7333

*.. The given address is its Osaka Branch Office

URL: http://www.dksh.jp

E-Mail address: webnsh.tyo@dksh.jp

ACTIVITIES

· Subject is a general Trading House with Handling Items expanded, ranging from Industrial Chemicals, Industrial Machinery to Watches, Textiles, Healthcare and Other Consumer Goods.

Subject has three main divisions such as Luxury & Life Style, Performance Materials and Technology

importer of watches and machinery from Switz.

BRANCHES

Yokohama, Osaka, Nagoya, Sapporo, Fukuoka; Fukuroi (logistics center)

OFFICERS

PETER A KAEMMERER, PRES

Goerg Wolle, ch

Shigeru Ishihara, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 38,691 M

PAYMENTSNo Complaints CAPITAL Yen 1,600 M

TREND UP WORTH Yen 6,180 M

STARTED 1965 EMPLOYES 298

COMMENT

TRADING HOUSE OF SWISS CAPITAL.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

HIGHLIGHTS

This an old-established trading firm of Swiss origin dating back to 1865 when the firm of Siber & Brennwald entered the raw silk trade in Yokohama. The firm built Japan’s first gas plants for the first gas light in Yokohama & Ginza, Tokyo. Also, began importing watches and machinery from Switz. The firm was formally incorporated as Siebel Hegner Japan KK in 1965 to commemorate its 100^th anniversary in Japan. Renamed as captioned in Apr 2009. The firm has since developed into a general trading house with handling items expanded, ranging from industrial chemicals, industrial machinery to watches, textiles, healthcare and other consumer goods. The firm has three main divisions: Luxury & Life Style, Performance Materials and Technology (details see OPERATION). Clients include major food makers, dairy milk makers, pharmaceuticals, and other, nationwide.

FINANCIAL INFORMATION

The sales volume for Dec/2013 fiscal term amounted to Yen 38,691 million, an 11% up from Yen 34,837 million in the previous term. The recurring profit was posted at Yen 3,323 million and the net profit at Yen 2,036 million, respectively, compared with Yen 3,683 million recurring profit and Yen 2,155 million net profit, respectively, a year ago. Profits were deteriorated due to reduced gross profits of commodities.

For the current term ending Dec 2014 the recurring profit is projected at Yen 4,300 million and the net profit at Yen 2,500 million, respectively, on a 5% rise in turnover, to Yen 40,600 million.

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

REGISTRATION

Date Registered: Sept 1965

Regd No.: (Tokyo-Minatoku) 110147

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 160,000 shares

Issued: 160,000 shares

Sum: Yen 1,600 million

Major shareholders (%): DKSH Holding Ltd (Zurich, Switz) (100)

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

OPERATION

Activities: A general trading house of Swiss capital, with the following three core business divisions (100%)

(Three core sales divisions):

Luxury & Lifestyle Div (25%): watches, accessories & apparel, household luxury, consumer health;

Performance Materials Div (50%): specialty-chemicals & ingredients for Food & Beverage Industry, for Personal Care & Cosmetics Industry, for Specialty Chemicals Industry, for Pharmaceutical Industry, other;

Technology Div (25%): technical solutions for Food & Beverages, Research, advanced metals, other

Clients: [Food processors, mfrs, wholesalers] Merck Japan, Kagome, Morinaga & Co, Morinaga Milk Ind, DIC Corp, Oji Paper, Toyo Kasei Kogyo, DKSH group firms, Nichi-Iko Pharmaceuticals, Chino Watch, Morinaga & Co, MK Cheese, Astellas Ireland, Meiji Holdings Co, other.

Exports to S/E Asia.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Givaudan Japan, Leica Camera Japan, Darst Photo Technique, Leitz (Germany), DKSH group firms, Merck KAGG, Daido Steel, Toyo Kasei Kogyo, Sumitomo Light Metal Ind, other.

Payment record: No Complaints

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

Bank References:

Mizuho Bank (Yokohama)

MUFJ (Yokohama)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:		31/12/2014	31/12/2013	31/12/2012	31/12/2011
Annual Sales		40,600	38,691	34,837	34,522
Recur. Profit		4,300	3,323	3,683	3,029
Net Profit		2,500	2,036	2,155	1,711
Total Assets			20,443	18,996	16,546
Current Assets			18,574	16,983	14,356
Current Liabs			14,061	12,828	10,557
Net Worth			6,180	5,908	5,759
Capital, Paid-Up			1,600	1,600	1,600
Div.Ttl in Million (¥)			0.00	0.00	777
<Analytical Data>		(%)	(%)	(%)	(%)
S.Growth Rate		4.93	11.06	0.91	16.26
Current Ratio		..	132.10	132.39	135.99
N.Worth Ratio		..	30.23	31.10	34.81
R.Profit/Sales		10.59	8.59	10.57	8.77
N.Profit/Sales		6.16	5.26	6.19	4.96
Return On Equity		..	32.94	36.48	29.71

Notes: Forecast (or estimated) figures for the 31/12/2014 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.25
UK Pound	1	Rs.101.92
Euro	1	Rs.80.70

INFORMATION DETAILS

Analysis Done by :	KAR
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.