MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	CANADIAN SOLAR JAPAN K.K.
Registered Office :	Round Cross Shinjuku 5-chome 8F., 5-17, Shinjuku, Shinjuku-ku, Tokyo 160 0022
Country :	Japan
Date of Incorporation :	11.06.2009
Com. Reg. No.:	0111-01-053451
Legal Form :	Private
Line of Business :	Trader of Solar Power Related Equipment
No of Employees :	100

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$ 300,000
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

CANADIAN SOLAR JAPAN K.K.

OUTLINE

========

Country: Japan

Company name: CANADIAN SOLAR JAPAN K.K.

Name in local language: CANADIAN SOLAR JAPAN K.K.

Office address: Round Cross Shinjuku 5-chome 8F., 5-17, Shinjuku, Shinjuku-ku, Tokyo 160-0022

Office tel: 03-5291-8591

Website: http://canadiansolar.co.jp

Business type: Trader

Industry: Solar power-related equipment

Established: June 11, 2009

Capital: Jp. 297,000,000 yen

Employees: 100

Corporate formation: Private

Corporation No.: 0111-01-053451 (Tokyo Legal Affairs Bureau)

MAJOR SHAREHOLDERS

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

Paid in capital : Jp. 297,000,000 yen

Number of authorized shares : 100,000 shares

Shares issued : 29,700 shares

Number of shareholder : 3

Name of shareholders Number of shares (%)

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

Canadian Solar Ltd. 26,730 shares (90.0)

West Holdings Inc. n. a.

Exol Inc. n. a.

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

Total 29,700 shares (100.0)

DETAILED PRODUCT CLASSFICATION & ACTIVITY

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

Activity Product/Service Description

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

Trading Solar power-related equipment

Trading Equipment relating to other energy generation

COMPANY MANAGEMENT

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

President Mr. Tae-gyu Son (孫台圭) (*) (non-resident)

Nationality: R.O.K.

Director Mr. Tomokazu Ueno (*)

Nationality: Japan

Director Mr. Shawn Coo

Nationality: n. a.

Director Mr. Chuang Yang

Nationality: n. a.

Director Mr. Junichi Miyagi

Nationality: Japan

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

(*): Representative directors

*Key Personnel*

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

Mr. Tae-gyu Son

President and representative director

Born on July 10, 1969

Business career:

June 3, 2013: Representative director and president of the subject.

Home address: Seoul, R.O.K.

Mr. Tomokazu Ueno

Representative director

Business career:

June 3, 2013: Representative director.

Home address: 2-22-11, Kyodo, Setagaya-ku, Tokyo

FINANCIALS

===========

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

May 2010	974,141,000	4,838,000
Dec. 2011	4,905,737,000	118,113,000	(seven months)
Dec. 2012	9,438,793,000	199,589,000
Dec. 2013	47,474,296,000	668,466,000

FINANCIAL DESCRIPTION

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

*Book Closing*

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

December 31st

*Financials*

==========

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

*Bank Details*

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

Bank Name : Mizuho Bank, Ltd.

Branch : Shinjuku

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

Branch : Nakano-ekimae

Bank Name : Sumitomo Mitsui Banking Corp.

Branch : Shinjuku-nishiguchi

*Credit Opinion*

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

The subject is a subsidiary, held by Canadian Solar Ltd., based in Canada, specializing in import and sales of solar power-related equipment.

Blessed with clean energy boom and increasing interests in new alternative energy, the performance of the subject seems to be about to take off.

On the other hand there are some negative aspects; i.e. some major power companies are becoming unwilling to purchase the electricity generated by solar power due mainly to fixed buying cost.

It would be advisable to research the latest status of the parent to make sure who they really are.

Mr. Tomokazu Ueno is in a position to manage daily operation of the subject.

Our standard suggestion would be up to US$ 300,000 on terms of 90 days.

LOCAL BRANCHES & MANAGEMENT

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

Branch name: Project business headquarters

Branch address: Shinjuku Mitsui Bldg. 50F, 2-2-1, Nishi-shinjuku, Shinjuku-ku, Tokyo

Branch tel: 03-6911-2901

Branch fax: 03-3349-1310

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

Branch name: Kansai branch

Branch address: Yodogawa-ku, Osaka-shi

Branch tel: 06-6390-1225

Branch fax: 06-6390-1227

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

Branch name: Sendai sales office

Branch address: Aoba-ku, Sendai-shi

Branch tel: 022-217-7640

Branch fax: 022-217-7646

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

Branch name: Fukuoka sales office

Branch address: Hakata-ku, Fukuoka-shi

Branch tel: 092-483-7533

Branch fax: 092-483-7543

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

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

*Main Products & Services*

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

Import and sales of the following equipment:

Equipment and facilities relating to solar power generation

Equipment and facilities relating to other energy generation

ORGANIZATION STRUCTURE

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

*Address*

=========

Registered address is the same as the operational address.

The quoted address in the order information is for the Project Business Headquarters office in Tokyo, which is separate from the head office.

*Company History*

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

Date Development

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

November 2001 The parent company, “Canadian Solar Ltd.” was founded in Ontario

Province, Canada.

June 11, 2009 Incorporated.

December 2009 Started business operation.

December 2010 Sales of units reached 5,000.

July 2011 Opened Osaka office.

TRADE REFERENCES

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

*Suppliers*

==========

Canadian Solar Ltd.

Ryoden Shoji Co., Ltd.

Omron Corp.

Mitsubishi Electric Corp.

Kitani Electric Co., Ltd.

Delta Electronics Inc.

Roof Technology Institute Inc.

*Customers*

==========

Exol Inc.

West Begin Inc.

Hakuto Co., Ltd.

Copia Energy Corp.

Hitachi Ltd.

Hinode Electric Co., Ltd.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.65
UK Pound	1	Rs.98.53
Euro	1	Rs.78.02

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

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.