MIRA INFORM REPORT

Report Date :

18.12.2014

IDENTIFICATION DETAILS

Name :	KIBUN TRADING, INC.
Registered Office :	2-1-7, Kaigan, Minato-ku, Tokyo 1050022
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	01.04.1964
Com. Reg. No.:	0104-01-070787
Legal Form :	Private Company
Line of Business :	Wholesale of a wide range of processed foods
No of Employees :	45

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 :	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 Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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

KIBUN TRADING, INC.

OUTLINE

Country: Japan

Company name: KIBUN TRADING, INC.

Name in local language: KIBUN SANGYO, K.K. (株式会社紀文産業)

Office address: 2-1-7, Kaigan, Minato-ku, Tokyo 1050022

Office tel: 03-6891-5171

Office fax: 03-6891-3498

Website: www.kibun-ti.co.jp/

Business type: Trader

Industry: Food Products

Established: April 1, 1964

Capital: Jp. 100,000,000 yen

Employees: 45

Corporate formation: Private

Corporation No.: 0104-01-070787 (Tokyo Legal Affairs Bureau)

MAJOR SHAREHOLDERS

Paid in Capital: Jp. 100,000,000 yen

Number of shareholder: 1

Number of shares issued: 2,000,000 shares

Kibun Foods, Inc. holds 100%.

DETAILED PRODUCT CLASSFICATION & ACTIVITY

Activity Product/Service Description

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

Trading Processed foods

Trading Packaging materials

COMPANY MANAGEMENT

President Mr. Yasuhide Doi

Nationality: Japan

Chairman Mr. Masahito Hoashi (Chairman of the parent company)

Nationality: Japan

Vice President Mr. Hisashi Kuwata

Nationality: Japan

Managing Director Mr. Hideki Enokida

Nationality: Japan

Managing Director Mr. Teiji Taniguchi

Nationality: Japan

Managing Director Mr. Hiroyuki Ueda

Nationality: Japan

Director Mr. Yukio Kurihara

Nationality: Japan

Director Mr. Shin Fujiyoshi

Nationality: Japan

Auditor Mr. Masayuki Ochiai

Nationality: Japan

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

*Key Personnel*

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

Mr. Yasuhide Doi, representative director and president

Born on: December 26, 1948

Home Adress:655-17,Kobuchi,Kasukabe-City,Saitama-Pref. 3440007

FINANCIALS

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2009	13,601,631,000	98,117,000
2010	11,565,071,000	loss 28,627,000
2011	12,393,266,000	loss 27,695,000
2012	12,952,511,000	98,047,000
2013	13,893,149,000	82,103,000
2014	14,108,788,000	102,928,000

FINANCIAL DESCRIPTION

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

*Book Closing*

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

March 31st

*Financials*

===========

Balance Sheet
Unit: millions of JP yen
	03/31/2012	03/31/2013	03/31/2014
Current assets	3,571	3,788	3,959
Fixed assets	43	51	31
Total Assets	3,618	3,839	3,990

Current liabilities	3,101	3,240	3,460
Fixed liabilities	249	284	177
Shareholders' equity	268	300	353
Paid-in capital	100	100	100
Retained earnings	168	200	253
Valuation & adjustment	-98	-147	-102
Total Liabilities & Net Assets	3,618	3,839	3,990

*Bank Details*

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

Bank Name: Mizuho Bank, Ltd.

Branch: Tsukiji

Bank Name: Shoko Chukin Bank

Branch: Head office

Bank Name: Sumitomo Mitsui Banking Corp.

Branch: Shinbashi

*Credit Opinion*

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

The subject is a subsidiary, wholly owned by Kibun Foods, Inc. a leading manufacturer of marine food products.

The latest summary of the parent is as follows:

Date of foundation: April 1964

Capital paid in: JPY 100 million

Sales for Mar. 2014: JPY 60,982 million

Net income for Mar. 2014: JPY 231 million(The previous years had much bigger net incomes)

Number of employees: 1,343

Some losses, posted in the past, were due to impairment transaction of financial products kept by the subject.

A steady performance of its main business has been maintained, backed by Kibun Group companies. Negative factors are not observed in particular at present.

Our standard suggestion would be up to US$ 110,000 on terms of 90 days.

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

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

*Main Operation*

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

Wholesale of a wide range of processed foods

ORGANIZATION STRUCTURE

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

*Address*

=========

Registered address is the same as the operational address.

*Company History*

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

Date Development

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

April 1, 1964: Incorporated as Hosho Shoji Co., Ltd., aiming at distribution of food

products. Address: 7-14-13, Ginza, Chuo-ku, Tokyo

Jul 1975: Became a member of Kibun Group companies.

Mar. 1985: Re-formation of trading division. Paid-in capital: 200,000,000 yen.

Jun. 1992: Changed the company name to "Kibun Trading Co., Ltd."

Feb. 1998: Paid-in capital: 670,000,000 yen.

Jan. 2005: Liquidated the company and assigned the business to the newly established

Kibun Trading Co., Ltd. under the strategy of parent company, Kibun Foods,

Inc."

Feb. 2005: Paid-in capital: 100,000,000 yen.

Jul. 2007: Moved the head office to the current location.

TRADE REFERENCES

*Suppliers*

=========

Kibun Foods USA

Kibun Thailand

Pacific Marine Products

Pacific Fish Precessive

Mori Paper Sales Co., Ltd.

Rengoh Paper Business Co., Ltd.

Yuasa Funashoku Co., Ltd.

Dainihon Packs Co., Ltd.

Mitsubishi Shoji Plastics Corporation

Kokusai Pulp & Paper Co., Ltd.

Nissho Iwai Pulp & Paper Corporation

*Customers*

==========

Kikkoman Soyfoods Company

Hokushoku Co., Ltd.

Kewpie Egg World Trading Co., Ltd.

Tohkai Denpun Co., Ltd.

Matsuda Sangyo Co., Ltd

Nikkoku Seifun Corporation

Kaitsuka Masao Shoten Co., Ltd.

Kikkoman Biochemifa Company

Kibun Foods USA

Kadoya Sesami Mills Incorporated

Takemoto Oil & Fat Co., Ltd.

Mori Paper Sales

Jinbo Co., Ltd.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.58
UK Pound	1	Rs. 99.98
Euro	1	Rs. 79.39

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	DPT

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.