MIRA INFORM REPORT

Report Date :

12.12.2014

IDENTIFICATION DETAILS

Name :	MEIJI CO., LTD.
Registered Office :	1-2-10, Shinsuna, Koto-ku, Tokyo 136-0075
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	21.12.1917
Com. Reg. No.:	0106-01-028138 (Tokyo)
Legal Form :	Private Limited Company
Line of Business :	Engaged in development, manufacture and sales of the following products: · Sweets & snacks Dairy food products Healthcare foods and quasi-drug products
No of Employees :	10,943

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 – 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

MEIJI CO., LTD.

Company OUTLINE

Company name: MEIJI CO., LTD.

Name in local language: MEIJI, K.K.

Office address: 1-2-10, Shinsuna, Koto-ku, Tokyo 136-0075

Country: Japan

Office tel: 03-5653-0301

Website: www.meiji.co.jp

Business type: Manufacturer

Industry: Food products

Established: December 21, 1917

Capital: Jp. 33,646,195,247 yen

Employees: 10,943

Corporate formation: Private

Corporation No.: 0106-01-028138 (Tokyo Legal Affairs Bureau)

MAJOR SHAREHOLDERS

Paid in capital : Jp. 33,646,195,247 yen

Number of authorized shares : 800,000,000 shares

Shares issued : 328,500,000 shares

Number of shareholder : 1

Meiji Holdings Co., Ltd.

DETAILED PRODUCT CLASSFICATION & ACTIVITY

Activity Product/Service Description

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

Manufacturing Sweets & snacks

Manufacturing Dairy products

Manufacturing Healthcare foods and quasi-drug products

Manufacturing Other food products

COMPANY MANAGEMENT

President Mr. Kazuo Kawamura (*) (Director of Meiji Holdings Co., Ltd.)

Nationality: Japan

Director Mr. Naoki Kato

Nationality: Japan

Director Mr. Yoshinaka Shimoda

Nationality: Japan

Director Mr. Takaaki Yanaka

Nationality: Japan

Director Mr. Shoichi Saito

Nationality: Japan

Director Mr. Junichi Otani

Nationality: Japan

Director Mr. Akio Uesaka

Nationality: Japan

Director Mr. Hirotada Nakamura

Nationality: Japan

Director Mr. Ikuo Tamaki

Nationality: Japan

Director Mr. Masahiko Matsuo

Nationality: Japan

Auditor Mr. Yasuyuki Murayama

Nationality: Japan

Auditor Mr. Yasuo Kanbe

Nationality: Japan

Auditor Mr. Kenya Hosaka

Nationality Japan

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

*Key Personnel*

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

Mr. Kazuo Kawamura

President and representative director

Born on August 25, 1953

Business career:

Apr. 1976: Employed by Meiji Nyugyo(Dairy Products) Co., Ltd.

Jun. 2007: Director of the above company.

Apr. 2011: Director of the subject, Meiji Co., Ltd.

Jun. 2012: Concurrently director of Meiji Holdings Co., Ltd.

Home address: 3-31-17-505, Miyamae, Suginami-ku, Tokyo

FINANCIALS

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2009	481,455,000,000	3,998,000,000
2010	492,372,000,000	8,465,000,000
2011	495,773,000,000	867,000,000
2012	674,983,000,000	153,000,000
2013	693,810,000,000	4,842,000,000
2014	703,701,000,000	11,628,000,000

FINANCIAL DESCRIPTION

*Book Closing*

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

March 31st

*Financials*

==========

Balance Sheet
Unit: millions of JP yen
	3/31/2014
Current assets	186,673
Cash & deposits	712
Account receivables	91,164
Inventories	63,727
Others	31,070
Fixed assets	303,830
Tangible assets	208,581
Intangible assets	5,841
Investments & others	89,407
Total Assets	490,503
Current liabilities	199,527
Account payables	62,224
Short term loans	44,600
Outstanding accounts	20,014
Outstanding taxes	7,535
Others	65,154

Fixed liabilities	100,775
Long term loans	76,233
Retirement benefits	13,409
Others	11,133
Shareholders' equity	185,853
Paid up capital	33,646
Capital reserves	59,821
Retained earnings	92,385
Valuation & adjustment	4,346
Total Net Assets	190,200
Total Liabilities & Net Assets	490,503
Income Statement
Unit : millions of JP yen
	3/31/2014
Sales	703,701
Cost of goods sold	462,119
Gross profit(loss)	241,582
Sales/administrative expenses	218,866
Operating profit(loss)	22,715
Non operating income	3,167
Non operating expenses	2,089
Ordinary profit(loss)	23,793
Special profits	709
Special losses	4,790
Pretax profit	19,712
Taxes & adjustment	8,083
Net profit	11,628

Bank Details

Bank Name : Mizuho Bank, Ltd.

Branch : Kyobashi

Bank Name : Resona Bank, Ltd.

Branch : Tokyo-chuo

Bank Name : Japan Finance Corporation

Branch : Head office

Credit Opinion

The latest status of the subject is a major subsidiary of Meiji Holdings Co., Ltd.

The business of the subject accounts for 88% of those of the whole group from Mar. 2014 term.

A steady performance has been maintained for years except for 2011 and 2012 terms.

The parent carries JPY 207,818 million of retained earnings as of September 30, 2014(3Q 2015 term).

Negative factors are not observed in particular at present.

LOCAL BRANCHES & MANAGEMENT

Branch name: Kanto branch

Branch address: Midori, Sumida-ku, Tokyo

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

Branch name: Chubu branch

Branch address: Aoi, Higashi-ku, Nagoya-shi

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

Branch name: Kansai branch

Branch address: Shiromi, Chuo-ku, Osaka-shi

Four other local branches are in Sapporo, Sendai, Hiroshima and Fukuoka cities.

Two overseas offices are in Bangkok and Taipei.

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Products & Services*

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

Development, manufacture and sales of the following products:

- Sweets & snacks

- Dairy food products

- Healthcare foods and quasi-drug products

- Other food products

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

A total of 31 domestic plants including the followings:

- Sapporo plant: Sapporo-shi, Hokkaido

- Moriya plant: Moriya-shi, Ibaraki prefecture

- Saitama plant: Saitama-shi, Saitama pref.

- Kanagawa plant: Chigasaki-shi, Kanagawa pref.

- Aichi plant: Inazawa-shi, Aichi pref.

- Kyoto plant: Kyotanabe-shi, Kyoto pref.

- Osaka plant: Takatsuki-shi, Osaka pref.

- Okayama plant: Kurashiki-shi, Okayama pref.

- Kyushu plant: Yame-shi, Fukuoka pref.

Note:

Eight plants are in Hokkaido as the original business of the subject was situated in the center of dairy products, such as milk, cheese and butter.

ORGANIZATION STRUCTURE

*Address*

=========

Registered address is the same as the operational address.

Company History

Date Development

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

1890 Suzuki Seito-sho(Sugar) was founded.

1895 Suzuki Seito was renamed as “Nippon Seito K.K.”

1906 Nippon Seito was renamed as Dai-Nippon Seito.

Meiji Seito K.K. was founded.

Feb. 1916 Meiji Seito founded “Taisho Seika Co., Ltd.”(later became “Meiji Seika.”)

Dec. 21, 1917 Meiji Seito founded “Kyokuto Ren-nyu(Condensed Milk) Co., Ltd.”(later

became Meiji Nyugyo Co., Ltd.). This is the origin of the subject.

Jul. 1996 Meiji Seito merged together with Dai-Nippon Seito Co., Ltd. and formed

“Dai-Nippon Seito Co., Ltd.”

At this time, Meiji Nyugyo(Dairy Products) Co., Ltd. and Meiji Seika(Sweets &

Snacks) Co., Ltd. became independent.

Dai-Nippon Seito became a subsidiary of Mitsubishi Corporation.

Sep. 2008 A merger & re-formation plan was announced by Meiji Nyugyo and Meiji Seika.

Apr. 1, 2009 Meiji Holdings Co., Ltd. was founded and listed on the TSE(#2269).

Meiji Nyugyo and Meiji Seika became subsidiaries of the holding company.

Sep. 2010 Further re-formation was announced.

April 1, 2011 Meiji Nyugyo acquired the business assets of sweets and snacks from Meiji

Seika.

Meiji Seika was renamed as “Meiji Seika Pharma Co., Ltd.” to be specializing

in medical and pharmaceutical products.

Meiji Nyugyo was renamed as “Meiji Co., Ltd.,” specializing in food products.

TRADE REFERENCES

*Suppliers*

==========

Hokuren Corp.

Dai-Nippon Printing Co., Ltd.

Kumamoto Prefecture Fruits Co.

Mitsubishi Corp.

Toyo Seikan Co., Ltd.

Kobayashi Glass Co., Ltd.

Max Com Corp.

Otsuka Packaging Co., Ltd.

Meiji Yushi(Fat & Oil) Co., Ltd.

Kobayashi Shoji Co., Ltd.

*Customers*

==========

Local distributors of milk nationwide

Meiji Fresh Network Co., Ltd.

Japan Access Corp.

Takayama Corp.

Alfresa Healthcare Co., Ltd.

Inao Dairy Products Co., Ltd.

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

Company name: Zao Foods Co., Ltd.

Country: Japan

Status: Subsidiary

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

Company name: Meiji Chewing Gum Co., Ltd.

Country: Japan

Status: Subsidiary

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

Company name: Tokai Nuts Co., Ltd.

Country: Japan

Status: Subsidiary

RELATED PARTIES DESCRIPTION

*Subsidiaries & Affiliates*

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

As of March 31, 2014 the subject owns and controls a total of seven subsidiaries in the nation.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.21
UK Pound	1	Rs.97.80
Euro	1	Rs.77.48

INFORMATION DETAILS

Analysis Done by :	DIV
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.