MIRA INFORM REPORT

Report Date :

11.12.2014

IDENTIFICATION DETAILS

Name :	SEIKATSU CLUB COOPERATIVE ASSOCIATION
Registered Office :	Well Ship Higashi-shinjuku 5F., 6-24-20, Shinjuku, Shinjuku-ku, Tokyo 160-0022
Country :	Japan
Date of Incorporation :	12.03.1990
Com. Reg. No.:	0111-05-001059 (Tokyo)
Legal Form :	Private Limited Company
Line of Business :	· Engaged in Trading of Food and beverages Engaged in Trading of Non-Food Consumer Goods Subject products are as follows: Cooking of vegetables Cuisine of cooking meat of meat Fish dish fish dishes Cuisine of cooking eggs, beans of egg-beans Milk and dairy products milk and dairy products Seaweed, dry matter, konjac seaweed, dry matter, konjac Also of Rice rice Noodles noodles Pasta pizza pasta pizza Soup soup Stew stew La carte la carte Marinated Vinegared food Pickled Salad Dumpling Spring roll Cake, dessert cake, dessert Bread sandwich bread sandwich Healthy Cooking Healthy Cooking Quick Meals Quick Meals Baby food, baby food
No of Employees :	94 (headquarters only)

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	US$ 500,000
Status :	Moderate
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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. 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

SEIKATSU CLUB COOPERATIVE ASSOCIATION

Company OUTLINE

Company name: SEIKATSU CLUB COOPERATIVE ASSOCIATION

Name in local language: SEIKATSU CLUB JIGYO RENGO SEIKATSU KYODO KUMIAI RENGOKAI

Office address: Well Ship Higashi-shinjuku 5F., 6-24-20, Shinjuku, Shinjuku-ku, Tokyo 160-0022

Country: Japan

Office tel: 03-5285-1771

Office fax: 03-5285-1837

Website: www.seikatsuclub.coop

Business type: Trader

Industry: Consumer goods

Established: March 12, 1990

Capital: Funding paid-in: Jp. 4,341,400 yen

Employees: 94 (headquarters only)

Corporate formation: Private

Corporation No.: 0111-05-001059 (Tokyo Legal Affairs Bureau)

MAJOR SHAREHOLDERS

As of March 31, 2014:

Funding paid--in : Jp. 4,341,400,000 yen

Number of authorized shares : Not required for funding

Shares issued : ditto

Number of stakeholders : 33 local cooperatives (342,739 individual members)

Name of local cooperatives Number of shares (%)

----------------------------------------------------------------------------------------------

Seikatsu Club Cooperative Tokyo n. a.

Seikatsu Club Cooperative Kanagawa n. a.

Shonan Seikatsu Club Cooperative n. a.

Seikatsu Club Cooperative Nagano n. a.

Seikatsu Club Cooperative Iwate n. a.

Total 33 local cooperatives

Notes:

Record of change of the amount of funding paid-in

----------------------------------------------------------------------

Date Amount

----------------------------------------------------------------------

March 31, 2010 JPY 3,835,600,000

March 31, 2011 JPY 3,835,900,000

March 31, 2013 JPY 4,336,400,000

March 31, 2014 JPY 4,341,400,000

Funding unit: JPY 100,000

Activity

Activity Product/Service Description

----------------------------------------------------------

Trading Foods and beverages

Trading Non-food consumer goods

Product details

· Cooking of vegetables

Cuisine of cooking meat of meat

Fish dish fish dishes

Cuisine of cooking eggs, beans of egg-beans

Milk and dairy products milk and dairy products

Seaweed, dry matter, konjac seaweed, dry matter, konjac

Also of Rice rice

Noodles noodles

Pasta pizza pasta pizza

Soup soup

Stew stew

La carte la carte

Marinated

Vinegared food

Pickled

Salad

Dumpling

Spring roll

Cake, dessert cake, dessert

Bread sandwich bread sandwich

Healthy Cooking Healthy Cooking

Quick Meals Quick Meals

Baby food, baby food

COMPANY MANAGEMENT

Representative Director Mr. Koichi Kato (acting as the president)

Nationality: Japan

Representative Director Mr. Yoshiyuki Fukuoka (acting as senior managing director)

Nationality: Japan

Representative Director Mr. Takayuki Watabe (acting as managing director)

Nationality: Japan

Note: The names of director(s) and auditor(s) are phonetically spelt.

Key Personnel

Mr. Koichi Kato

President and representative director

Born on November 30, 1956

Home address: 56-1, Yotsuya, Zama-shi, Kanagawa pref. 252-0025

FINANCIALS

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

Year | Sales | Net Income

-------------------------------------------------------------------------------------

2007	55,478,471,000	loss 433,028,000
2008	58,619,307,000	479,151,000
2009	61,964,528,000	365,120,000
2010	59,994,140,000	225,764,000
2011	56,816,760,000	loss 83,129,000
2012	57,038,151,000	3,420,000
2013	54,484,393,000	9,378,000
2014	54,688,336,000	67,954,000

FINANCIAL DESCRIPTION

*Book Closing*

============

March 31st

*Financials*

==========

As a cooperative association, no official financial statement is required to be disclosed publicly.

Bank Details

Bank Name : Labor Bank(Workers’ Credit Union)

Branch : Head office

Bank Name : Sumitomo Mitsui Banking Corp.

Branch : Setagaya

Bank Name : Resona Bank, Ltd.

Branch : Gohtokuji

Credit Opinion

The subject is an aggregated business entity, funded by a total of 33 local cooperatives in the nation, which is not an ordinary type of corporation with limited liabilities.

The subject is advocating three principles, “Safety, Health & Eco-friendly” for its business activities.

There are nearly 600 cooperatives in the nation, and 33 out of 600 join the business of the subject.

Sales has been almost flat with some fluctuation of the net income recently.

Although the exact financial condition is not available due to non-disclosure of its financial statements, there would be a certain amount of retained earnings.

Negative factors are not observed in particular at present.

Our standard suggestion would be up to US$ 500,000 on terms of 90 days.

LOCAL BRANCHES & MANAGEMENT

Branch name: Seikatsu Club Cooperative Tokyo

Branch address: Miyasaka, Setagaya-ku, Tokyo

----------------------------------------------------------------------------------------------------

Branch name: Seikatsu Club Cooperative Kanagawa

Branch address: Shin-yokohama, Kohoku-ku, Yokohama-shi

----------------------------------------------------------------------------------------------------

Branch name: Shonan Seikatsu Club Cooperative

Branch address: Takada, Chigasaki-shi, Kanagawa pref.

A total of 33 local cooperatives are functioning as branch networks in 21 prefectures.

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Products & Services*

======================

Food and beverages

Non-food consumer goods

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

Han-noh delivery center: Han-noh-shi, Saitama pref.

ORGANIZATION STRUCTURE

*Address*

=========

Registered address is the same as the operational address.

Company History

Date Development

-----------------------------------------------------------------------------------------------

June 1965 “Seikatsu Club” was founded in Tokyo.

Started a joint purchasing of milk.

1981 Launched “Soap Movement” to eliminate the synthetic detergents.

March 12, 1990 Incorporated as a form of cooperatives association.

1993 Launched “Self Sufficiency of Foods Movement” to enhance the

consumption of local foodstuffs.

Launched “Green System” to advocate the recycle of glass and other

containers.

1997 Announced “Not To Accept GM Foods.”

1999 Launched “Dioxin Watching Movement.”

2005 Donated for the victims of Sumatra Earthquake.

2008 Enhanced inspection on the imported frozen foods, following the

incident of frozen dumpling in China.

2011 Launched “Reconstruction Support Movement” for the March 11^th

Disaster.

2013 Founded “The Foundation to Support Producers/Growers” in the

disaster-stricken area suffered by the Fukushima Nuclear Power

Plant after rumor damage caused by The Great East Japan

Earthquake.

TRADE REFERENCES

*Suppliers*

==========

Shinsei Dairy Farm Co., Ltd.

Hirata Dairy Farm Ltd.

Taiyo Foods Sales Co., Ltd.

Kodaira Dairy Farm Co., Ltd.

Japan Fruits Industry Co., Ltd.

Hiramaki Dairy Farm Co., Ltd.

Snow Brand Megumilk Ltd.

S.K. Soap Co., Ltd.

*Customers*

==========

33 local cooperatives(funding members) in 21 prefectures

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

Company name: Taiyo Foods Sales Co., Ltd.

Country: Japan

Status: Affiliate

----------------------------------------------------------------------------------------------------

Company name: Shinsei Dairy Farm Co., Ltd.

Country: Japan

Status: Affiliate

----------------------------------------------------------------------------------------------------

Company name: U Agency Inc.

Country: Japan

Status: Affiliate

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.95
UK Pound	1	Rs.97.16
Euro	1	Rs.76.75

INFORMATION DETAILS

Analysis Done by :	SUB
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%)

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.