MIRA INFORM REPORT

Report Date :

18.12.2014

IDENTIFICATION DETAILS

Name :	MASHIN SHOKAI LIMITED
Registered Office :	12-26, Hamamachi, Moji-Ku, Kita-Kyushu City, Fukuoka 801-0856
Country :	Japan
Date of Incorporation :	01.03.1984
Com. Reg. No.:	2908-01-005714 (Fukuoka)
Legal Form :	Private Limited Company
Line of Business :	Engaged in Consumable Supplies for Vessel, including Painting and Coating Materials, Machines and Machine Parts, as well as other Materials and Devices
No of Employees :	92

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

MASHIN SHOKAI LIMITED

Company OUTLINE

Company name: MASHIN SHOKAI LIMITED.

Name in local language: MASHIN SHOKAI, K.K.

Office address: 12-26, Hamamachi, Moji-ku, Kita-kyushu city, Fukuoka 801-0856

Country: Japan

Office tel: 093-331-5111

Office fax: 093-321-7032

Website: www.mashin-shokai.com/

Business type: Trader

Industry: Consumable supplies for vessel

Established: March 1, 1984

Capital: Jp. 45,000,000 yen

Employees: 92

Corporate formation: Private

Corporation No.: 2908-01-005714 (Fukuoka Legal Affairs Bureau)

MAJOR SHAREHOLDERS

Paid in capital : Jp. 45,000,000 yen

Number of authorized shares : 900 shares

Shares issued : 810 shares

Number of shareholder : 10

Name of shareholders Number of shares (%)

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

Mr. Kazuo Goto, chairman 273 shares (33.7)

Mr. Toshiyuki Goto, president 166 shares (20.5)

Mr. Taizo Goto, auditor 148 shares (18.3)

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Total 587 shares (72.5)

DETAILED PRODUCT CLASSFICATION & ACTIVITY

Activity Product/Service Description

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

Trading Consumable supplies for vessel

COMPANY MANAGEMENT

President Mr. Toshiyuki Goto (*)

Nationality: Japan

Chairman Mr. Kazuo Goto (*)

Nationality: Japan

Managing Director Mr. Mamoru Kawachi

Nationality: Japan

Director Mr. Hiroyuki Ishida

Nationality: Japan

Director Mr. Junji Kimura

Nationality: Japan

Auditor Mr. Taizo Goto

Nationality: Japan

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

(*) = representative directors

*Key Personnel*

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

Mr. Toshiyuki Goto

President and representative director since March 1984

Born on April 10, 1973

Business career:

April 2007: Director.

April 2013: Representative director and president.

Home address: 2-4-3, Tanimachi, Moji-ku, Kita-kyushu city, Fukuoka 801-0872

FINANCIALS

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2009	4,634,787,000	25,573,000
2010	4,828,360,000	46,419,000
2011	4,731,345,000	47,950,000
2012	4,858,356,000	36,099,000
2013	4,931,262,000	45,157,000
2014	5,384,244,000	128,947,000

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 : Kita-kyushu Bank, Ltd.

Branch : Moji

Bank Name : Oita Bank, Ltd.

Branch : Moji-ekimae

Bank Name : Iyo Bank, Ltd.

Branch : Kita-kyushu

Credit Opinion

The subject is a time-honored firm specializing in supply of a wide range of consumable items for vessel.

The subject established an excellent way of supplying a package of items, procured abroad such as Shanghai and Singapore, and deliver them to major ports worldwide at competitive costs.

A steady performance has been maintained for years with close relationship with reliable customers.

A record high performance was posted for Feb. 2014 term.

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

Negative factors are not observed in particular at present.

LOCAL BRANCHES & MANAGEMENT

Branch name: Tokyo business department

Branch address: 5-26-8, Shinbashi, Minato-ku, Tokyo

Branch tel: 03-5408-5865

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

Branch name: Yokohama branch

Branch address: 43-18, Honmokumakado, Naka-ku, Yokohama city, Kanagawa

Branch tel: 045-624-5611

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

Branch name: Osaka sales office

Branch address: 7-4-48, Shinkitajima, Suminoe-ku, Osaka city, Osaka

Branch tel: 06-6683-5701

Other than the above branches the subject has been operating four local braches in Kobe, Imabari, Kita-kyushu and Fukuoka cities.

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Products & Services*

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

A wide range of consumable supplies for vessel, including painting and coating materials, machines and machine parts, and other materials and devices

The list of products and merchandise:

Quote:

1. GENERAL MARINE STORES　[ DECK & ENGINE DEPT. ITEMS ]

STEEL WIRE ROPE-SYNTHETICFIBRE ROPE

PAINT-CHEMICAL PRODUCTS

INFLATABLE LIFERAFT

BLOCKS-SHACKLES

SAFETY EQUIPMENT &MATERIALS

CRANE & DERRICK FITTINGS

NAVIGATION EQUIPMENT

SAFETY PROTECTIVE GEAR

MACHINE TOOLS

WELDING EQUIPMENT &MATERIALS

ELECTRICAL APPLIANCE

VALVES & COCKS

INDUSTRIAL MACHINERY & EQUIPMENT

MARINE SPARE PARTS

GENERAL MARINE STORES

ANCHOR

E.E.B.D. GAS DETECTOR

NAVIGATION LAMP LINE THROWING APPARATUS

IMMERSION SUIT

MARINE PAINT INFLATABLE LIFERAFT

PACKING JOINT SHEET MOORING SHACKLE

STEEL WIRE ROPE HAWSER ROPE

BUTTERFLY VALVE FIRE EXTINGUISHER

PRESSURE GAUGE MECHANICAL SEAL

2. MACHINE & ENGINE SPARE PARTS

MARINE

( MAIN-AUXILIARY ) ENGINE

BOILER

OIL PURIFIER

PUMP

REFRIGERATOR

AIR-CONDITIONER

FIRE EXTINGUISHING

EQUIPMENT

HIGH PRESSURE CLEANERS

OTHER MACHINERY

PUMP

OIL PURIFIER

M/E D/E TURBO CHARGER

M/E FUEL INJECTION EQUIPMENT

( NOZZLE TIPS & PLUNGERS )

M/E PISTON CROWN

M/E CYLINDER COVER

M/E EXHAUST VALVE SPINDLES & VALVE SEATS

D/G

CYLINDER LINER

PISTON CROWN

PISTON PIN ( BUSH )

PISTON RING

REAMER BOLT

Unquote:

ORGANIZATION STRUCTURE

*Address*

=========

Registered address is the same as the operational address.

Both of the quoted number appear to be fax numbers, which belong to the subject.

Company History

Date Development

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

August 1892 Started business as a sole proprietorship.

March 1,l 984 Incorporated.

2008 ISO9001 certified.

May 10, 2013 Increased the capital to 45 million yen from 40 million yen.

TRADE REFERENCES

*Suppliers*

==========

Nippon Paint Co., Ltd.

Nippon Paint Marine Coatings Co., Ltd.

Nippon Paint Hanbai Co., Ltd.

Tokyo Rope Mfg. Co., Ltd.

Tokyo Seiko Rope Mfg. Co., Ltd.

Daishin Corp.

Niwa Shoten Co., Ltd.

Koyo Electric Co., Ltd.

*Customers*

==========

Domestic Shipping Companies

Harbor work companies

Shipbuilding companies

Japan Coast Guard Agency

Customs Offices

Overseas shipbuilding companies

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

Company name: Mashin Shokai (Korea) Ltd. (Seoul & Busan)

Country: R.O.K.

Status: Subsidiary

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

Company name: Wei Hsing Marine International Trading (Shanghai) Co., Ltd.

Country: China

Status: Subsidiary

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

Company name: Mashin Shokai (Hong Kong) Limited

Country: Hong Kong

Status: Subsidiary

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

RELATED PARTIES DESCRIPTION

*Subsidiaries & Affiliates*

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

As of February 28, 2014 the subject owns and controls a total of 21 subsidiaries and affiliates at home and abroad.

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 :	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%)

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.