MIRA INFORM REPORT

Report Date :

12.12.2014

IDENTIFICATION DETAILS

Name :	TAJIMA INDUSTRIES LTD.
Registered Office :	Tajima Bldg. 3-19-22, Shirakabe, Higashi-ku, Nagoya-shi, Aichi pref. 461-0011
Country :	Japan
Date of Incorporation :	06.05.1970
Com. Reg. No.:	1800-01-017306 (Nagoya )
Legal Form :	Private Limited Company
Line of Business :	Engaged in Sales and export of Automated Multi-Head Embroidery Machines bearing the Brand name “Tajima”
No of Employees :	54

RATING & COMMENTS

MIRA’s Rating :

B

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

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

TAJIMA INDUSTRIES LTD.

Company OUTLINE

Company name: TAJIMA INDUSTRIES LTD.

Name in local language: TAJIMA KOGYO K.K

Office address: Tajima Bldg. 3-19-22, Shirakabe, Higashi-ku, Nagoya-shi, Aichi pref. 461-0011

Country: Japan

Office tel: 052-932-3811/3445

Office fax: 052-932-0899/3449

Website: www.tajima.com

Business type: Trader

Industry: Embroidery machines

Established: May 6, 1970

Capital: Jp. 65,500,000 yen

Employees: 54

Corporate formation: Private

Corporation No.: 1800-01-017306 (Nagoya Legal Affairs Bureau)

MAJOR SHAREHOLDERS

Paid in capital : Jp. 65,500,000 yen

Number of authorized shares : 256,000 shares

Shares issued : 131 ,000 shares

Number of shareholder : 15

Name of shareholders Number of shares (%)

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

T.I.K. Corp. 20,000 shares (15.3)

Mr. Hitoshi Tajima, President 12,791 shares ( 9.8)

Employees shareholders fund n. a.

DETAILED PRODUCT CLASSFICATION & ACTIVITY

Activity Product/Service Description

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

Trading Embroidery machines

COMPANY MANAGEMENT

President Mr. Hitoshi Tajima

Nationality: Japan

Vice President Mr. Kenji Tajima

Nationality: Japan

Director Ms. Hitomi Tajima

Nationality: Japan

Director Ms. Ikumi Kojima

Nationality: Japan

Director Mr. Minoru Tominaga

Nationality: Japan

Director Mr. Yoshinobu Nakamura

Nationality: Japan

Director Mr. Hideki Tajima

Nationality: Japan

Auditor Mr. Ktsumi Oshima

Nationality: Japan

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

Key Personnel

Mr. Hitoshi Tajima

President and representative director

Born on September 11, 1942

Home address: 3-19, Machikita, Moriyama-ku, Nagoya-shi 463-0074

FINANCIALS

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2008	17,827,638,000	346,489,000
2009	9,560,257,000	loss 54,241,000
2010	5,598,000,000	loss 443,519,000
2011	9,738,826,000	loss 255,376,000
2012	7,899,657,000	loss 362,436,000
2013	6,391,000,000	483,000,000
2014	8,498,000,000	337,000,000

FINANCIAL DESCRIPTION

*Book Closing*

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

End of February

*Financials*

==========

As a private limited company, no official financial statement is required to be disclosed publicly.

Bank Details

Bank Name : Chukyo Bank, Ltd.

Branch : Daikan-cho

Bank Name : Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch : Higashi

Credit Opinion

The subject was originally founded as a sales company of Tajima multi-head automated embroidery machines, but became as a core company of Tajima group business.

When it comes to an automated embroidery machine, the name, “TAJIMA” is well-known rather among overseas customers.

Performance has been picking up since it hit a bottom in 2010 when Japanese currency was appreciated.

The sales, however, has not reached the level of heyday as the group shifted its production base out of Japan.

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

Negative factors are not observed in particular at present.

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Products & Services*

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

Engaged in Sales and export of Automated Multi-Head Embroidery Machines bearing the Brand name “Tajima”

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

Production is conducted by affiliated companies at home and abroad.

ORGANIZATION STRUCTURE

*Address*

Registered address is the same as the operational address.

Company History

Date Development

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

April 1944 Founded “Tokai Industrial Machine Co., Ltd.,” aiming at sales and

repair of industrial sewing machines.

March 1964 The above company invented a multi-head automated embroidery

machine.

May 6, 1970 The subject incorporated under the current company name as a sales

firm of the above machines.

February 1990 Founded “Tajima America Corp.”

November 2004 Shanghai Tajima Precision Machine Co., Ltd. in China.

November 2008 Founded a subsidiary, “TM Koki Co., Ltd.” in Japan.

September 2011 Founded “Tajima Europe S.A.R.L.” in France.

July 2013 Founded “Tajima Do Brasil Ltda.” In Brazil.

TRADE REFERENCES

*Suppliers*

==========

Tokai Industrial Machines Co., Ltd.

Pals Micro Systems Inc.

*Customers*

==========

Naka-Nippon Juki Co., Ltd.

Yokoyama Special Machines Co., Ltd.

Seiken Corporation

Export to more than 100 countries

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

Company name: Tokai Industrial Machines Co., Ltd.

Country: Japan

Status: Affiliate

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

Company name: Tajima America Corporation

Country: U.S.A.

Status: Affiliate

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

Company name: Shanghai Tajima Precision Machines Co., Ltd.

Country: China

Status: Affiliate

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

RELATED PARTIES DESCRIPTION

*Subsidiaries & Affiliates*

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

As of February 28, 2014 the subject owns and controls a total of five affiliates at home and abroad.

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 :	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%)

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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.