MIRA INFORM REPORT

Report Date :

05.08.2014

IDENTIFICATION DETAILS

Name :	INTER TRACTOR SERVICE CO LTD

Registered Office :	1-5-1Nishi 23-Jo Kita Obihiro City Hokkaido 080-2643

Country :	Japan

Financials (as on) :	28.02.2014

Date of Incorporation :	September 1982

Com. Reg. No.:	4601-01-000115

Legal Form :	Limited Company

Line of Business :	Import, export, wholesale of tractors, agricultural machinery/equipment.

No. of Employees	45

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limits :	69.0 Million
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 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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 and address

INTER TRACTOR SERVICE CO LTD

REGD NAME: Inter Tractor Service KK

MAIN OFFICE: 1-5-1Nishi 23-Jo Kita Obihiro City Hokkaido 080-2643 JAPAN

Tel: 0155-37-3291 Fax: 0155-38-7233

URL: N/A

ACTIVITIES

Import, export, wholesale of tractors, agricultural machinery/equipment

BRANCHES

Hokkaido (5)

FACTORIES

At the caption address (repairing, maintenance works)

OFFICERS

HIROMI ARISHIRO, PRES

Teruyuki Tsukamoto, mgn dir

Toshimi Tosen, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 3,760 M

PAYMENTS NO COMPLAINTS CAPITAL Yen 40 M

TREND UP WORTH Yen 337 M

STARTED 1982 EMPLOYES 45

COMMENT

TRADING FIRM SPECIALIZING IN TRACTORS, OTHER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: ESTIMATED AT YEN 69.0 MILLION, ON 30 DAYS

NORMAL TERMS

HIGHLIGHTS

The subject company is a trading firm specializing in tractors, agricultural machinery & equipment, other. It offers repairing & maintenance services, too. Tractors are imported and exported. Clients include agricultural coops nationwide, and farming houses, other.

FINANCIAL INFORMATION

Financials are disclosed only partially.

The sales volume for Feb/2014 fiscal term amounted to Yen 3,760 million, a 65% up from Yen 2,270 million in the previous term. Demand rose abruptly and substantially after the Great North Earthquake, which destroyed farmland and others. The net profit was posted at Yen 80 million, compared with Yen 40 million a year ago.

For the current term ending Feb 2015 the net profit is projected at Yen 85 million, on a 5% rise in turnover, to Yen 3,950 million. Business is seen expanding steadily.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 69.0 million, on 30 days normal terms.

REGISTRATION

Date Registered: Sept 1982

Regd No.: 4601-01-000115 (Hokkaido-Obihiro)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 320,000 shares

Issued: 80,000 shares

Sum: Yen 40 million

Major shareholders (%): Hiromi Arishiro (14), Teruyuki Tsukamoto (11), Toshimi Tosen (10), Kazuyasu Kihara (7), other

No. of shareholders: 23

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

OPERATION

Activities: Imports, exports and wholesales tractors, agricultural machinery & equipment (power tillers, planters, combine harvesters, binders, other), offering repairing & maintenance services, others (--100%)

Clients: [Mfrs, wholesalers] Distributed to and thru Agricultural Coops nationwide and farmers, also to Corns AG, Mitsubishi Agricultural Machinery, other

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] McCormick & Co, Komatsu Ltd, Picon Japan, CNH International SA, other.

Payment record: No complaints

Location: Business area in Obihiro City, Hokkaido. Office premises at the caption address are owned and maintained satisfactory.

Bank References:

Hokkaido Bank (Obihiro-Nishi)

Obihiro Shinkin Bank (Nishi)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:	28/02/2015	28/02/2014	28/02/2013	29/02/2012
Annual Sales	3,950	3,760	2,270	350
Recur. Profit	..	..	..	..
Net Profit	85	80	40	34
Total Assets		N/A	N/A	N/A
Net Worth		337	281	253
Capital, Paid-Up		40	40	40
Div.P.Share(¥)		0.00	0.00	0.00
*<Analytical Data>*	(%)	(%)	(%)	(%)
S.Growth Rate	5.05	65.64	548.57	-84.78
Current Ratio		..	..	..
N.Worth Ratio		..	..	..
N.Profit/Sales	2.15	2.13	1.76	9.71

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 28/02/2015 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.02
UK Pound	1	Rs.102.69
Euro	1	Rs.81.91

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	NIS

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.