MIRA INFORM REPORT

Report Date :

15.12.2014

IDENTIFICATION DETAILS

Name :	SOKEN BEVERAGE CO., LTD.
Registered Office :	2810-3, Enzan-takemori, Koshu City, Yamanashi Pref. 404-0051
Country :	Japan
Date of Incorporation :	12.10.1998
Com. Reg. No.:	0900-01-009122 (Kofu Legal Affairs Bureau)
Legal Form :	Private Company
Line of Business :	Manufacturer of Mineral Water.
No of Employees :	15

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 :	Slow but correct
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

SOKEN BEVERAGE CO., LTD.

OUTLINE

Country: Japan

Company name: SOKEN BEVERAGE CO., LTD.

Name in local language: SOKEN BEVERAGE, K.K.

Office address: 2810-3, Enzan-takemori, Koshu City, Yamanashi Pref. 404-0051

Office tel: 0553-32-4320

Office fax: 0553-32-3600

Website: www.soken-beverage.com/

Business type: Manufacturer

Industry: Beverages

Established: October 12, 1998

Capital: Jp. 10,000,000 yen

Employees: 15

Corporate formation: Private

Corporation No.: 0900-01-009122 (Kofu Legal Affairs Bureau)

MAJOR SHAREHOLDERS

Paid up capital Jp. 10,000,000 yen

Number of authorized shares 800 shares

Number of outstanding shares 200 shares

Number of shareholder 1

Mr. Kenichiro Soh, president, holds 100%.

DETAILED PRODUCT CLASSFICATION & ACTIVITY

Activity Product / Service Description

Manufacturing Mineral water

Brands & Trade marks

Daibosatsu Meisui

Fuji Panadium

COMPANY MANAGEMENT

President Mr. Kenichiro Soh

Nationality: Japan

Director Mr. Masanobu Soh

Nationality: Japan

Auditor Mr. Kohki Soh

Nationality: Japan

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

*Key Personnel*

Mr. Kenichiro Soh

Representative director since its establishment

Born on November 15, 1938 in Tokyo

Registered home address: Palace Try 21, 1-1-2-503, Shitaya, Taito-ku, Tokyo 110-0004

FINANCIALS

Currency: (local currency - Jp. yen)

Year	Sales	Net Income
2009	800,000,000	363,000
2010	723,455,000	1,184,000
2011	678,501,000	702,000
2012	847,363,000	232,000
2013	500,000,000	500,000
2014	540,000,000	250,000

FINANCIAL DESCRIPTION

*Book Closing*

March 31st

*Financials*

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

*Bank Details*

Bank Name: Sumitomo Mitsui Banking Corp.

Branch: Hibiya

Bank Name: Kofu Shinkin Bank

Branch: Enzan

Bank Name: Yamanashi Prefectural Credit Association

Branch: Enzan

Bank Name: Yamanashi Chuo Bank, Ltd.

Branch: Enzan

Bank Name: Yamanashi Shinkin Bank

Branch: Enzan

*Credit Opinion*

The subject is a small-sized company specializing in bottling and sales of mineral water available from the foot of Mt. Fuji.

According to its website, further expansion of the bottling facility is expected to be completed in 2013. However, nothing has happened so far as of December 2014.

The sales for 2012 term grew by nearly 25 percent from the year earlier, but the net income remained at a lower level. No growth has been seen thereafter.

The shareholders' equity may not appear to be sufficient though the exact financial condition is not available due to non disclosure of its financial statements.

There was an office in Tokyo when we researched in January 2013, but was shut down in October 2013.

The only office, located in Taipei, Taiwan, is said to be related with “Soh Construction Co.,” but no specific information has been available at all.

The business owner, 76 years old, relocated his registered address from Kofu City to Tokyo in November 2013.

It would be advisable to enter into any business under well-secured conditions.

LOCAL BRANCHES & MANAGEMENT

Branch name: TAIPEI SALES OFFICE (Taiwan)

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Business*

Bottling and sales of mineral water.

Brand names: Daibosatsu Meisui , Kiramekinomizu

　　　　　　 Bichikusui

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

*Bottling Facilities*

#1 Plant.......................Enzan-Kamihagiwara, Koshu City

#2 Plant.......................Enzan-Takemori, Koshu City

ORGANIZATION STRUCTURE

*Address*

Registered address is same as that of the operational head office, where the second plant is located.

*Company History*

Date Development

Oct. 12, 1998 Incorporated under the name of "Soken Co., Ltd." at the following address,

where the first plant is located now.

Aug. 2005 Changed the company name to the current "Soken Beverage Co., Ltd."

April 2010 Relocated the head office to the current address while keeping the first plant

at the previous address.

TRADE REFERENCES

*Suppliers*

Ryosei Resin Co., Ltd.

Kofu Dai-ichi Jitsugyo Co., Ltd.

Kisoh Kogyo Co., Ltd.

Kobayashi Glass Co., Ltd.

Osaka Ceiling Co., Ltd.

Saboh Kasei Kogyo Co., Ltd.

CBJ Corp.

*Customers*

Mistubishi Shokuhin Co., Ltd.

Tominaga Trading Co., Ltd.

Beisia Corporation

Hanamasa Co., Ltd.

Sunny Foods Co., Ltd.

Sanai Foods Co., Ltd.

Kokubu & Co., Ltd.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs. 77.44

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	ANK

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.