MIRA INFORM REPORT

Report Date :

26.12.2014

IDENTIFICATION DETAILS

Name :	DAIICHI INDUSTRIAL CO., LTD.
Registered Office :	474, Hoshiro, Himeji-shi, Hyogo pref. 670-0804
Country :	Japan
Financials (as on) :	31.08.2013
Date of Incorporation :	01.03.1958
Com. Reg. No.:	1400-01-059709
Legal Form :	Private
Line of Business :	Manufacturer of Machinery
No. of Employee :	35

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

DAIICHI INDUSTRIAL CO., LTD.

OUTLINE

========

Country: Japan

Company name: DAIICHI INDUSTRIAL CO., LTD.

Name in local language: DAIICHI KOGYO K.K.

Office address: 474, Hoshiro, Himeji-shi, Hyogo pref. 670-0804

Office tel: 079-224-3331

Office fax: 079-288-2088

Website: www.firstline.jp

Business type: Manufacturer

Industry: Machinery

Established: March 1, 1958

Capital: Jp. 30,000,000 yen

Employees: 35

Corporate formation: Private

Corporation No.: 1400-01-059709 (Kobe Legal Affairs Bureau)

MAJOR SHAREHOLDERS

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

Paid in capital : Jp. 30,000,000 yen

Number of authorized shares : 96,000 shares

Shares issued : 60,000 shares

Number of shareholder : 31

Name of shareholders Number of shares (%)

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

Mr. Hiraku Inoue, president 21,900 shares (36.5)

Business partners shareholders fund 8,700 shares (14.5)

Daiichi Kosan Co., Ltd. 8,300 shares (13.8)

Mr. Atsushi Inoue, senior managing director 7,800 shares (13.0)

Mr. Seigo Inoue 2,300 shares ( 3.8)

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

Total 49,000 shares (81.7)

DETAILED PRODUCT CLASSFICATION & ACTIVITY

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

Activity Product/Service Description

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

Manufacturing Chiller machines for food processing

Manufacturing Retorting(heat sterilization) machine for food processing

Service Plant design and supervision

Service Repair and maintenance

COMPANY MANAGEMENT

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

President Mr. Hiraku Inoue

Nationality: Japan

Senior Managing Director Mr. Atsushi Inoue

Nationality: Japan

Managing Director Ms. Tomoko Inoue

Nationality: Japan

Auditor Ms. Teruyo Kamaya

Nationality: Japan

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

*Key Personnel*

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

Mr. Hiraku Inoue

President and representative director

Born on July 28, 1954

Business career:

March 1983: Became the representative director & president.

Home address: 1-11-6, Daijudai, Himeji-shi, Hyogo pref. 670-0898

FINANCIALS

===========

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2008	678,734,000	16,411,000
2009	471,227,000	loss 62,581,000
2010	487,062,000	loss 14,645,000
2011	703,430,000	41,558,000
2012	617,655,000	25,583,000
2013	625,799,000	8,241,000

FINANCIAL DESCRIPTION

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

*Book Closing*

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

August 31st

*Financials*

==========

Balance Sheet
Unit: thousands of JP yen
	8/31/2012	8/31/2013
Current assets	678,682	769,766
Fixed assets	296,166	364,995
Total Assets	974,848	1,134,761

Current liabilities	177,470	245,181
Fixed liabilities	32,460	117,020
Shareholders' equity	764,918	772,559
Paid up capital	30,000	30,000
Retained earnings	734,918	742,559
Total Liabilities & Net Assets	974,848	1,134,761
Income Statement
Unit : thousands of JP yen
	8/31/2012	8/31/2013
Sales	617,655	625,799
Gross profit(loss)	165,166	173,566
Ordinary profit(loss)	11,864	6,118
Net profit	25,583	8,241

*Bank Details*

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

Bank Name : Himeji Shinkin Bank

Branch : Head office business banking department

Bank Name : Tan-yo Shinkin Bank

Branch : Jo-hoku

Bank Name : Sumitomo Mitsui Banking Corp.

Branch : Himeji

*Credit Opinion*

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

The subject is a local firm, located in the city of Himeji, specializing in manufacturing of chiller machines for food and brewery industries.

Although the sales size is not so big, the net income level is excellent.

Some of the suppliers and many of the customers are reputed companies.

Most of employees have multiple licenses for technical expertise.

Financial condition is sound for its business size.

Negative factors are not observed in particular at present.

LOCAL BRANCHES & MANAGEMENT

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

Branch name: Kobe sales office

Branch address: Shin-zaike-minami-machi, Nada-ku, Kobe-shi, Hyogo pref.

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

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

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

*Main Products & Services*

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

Design, manufacture, sales and installation of the following machines:

Low temperature water chiller machines for food processing

Chiller machine for various kinds of liquid

Ice used heat storage chiller system

Cooling roll

Heat sterilization equipment

Design and supervisory work of food plant etc.

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

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

At the location of the head office

ORGANIZATION STRUCTURE

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

*Address*

=========

Registered address is the same as the operational address.

*Company History*

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

Date Development

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

March 1953 Started business under the name of “Inoue Shokai.”

Technology alliance with Hasegawa Iron Works Co., Ltd.

March 1, 1958 Incorporated under the current company name with an investment of

JPY 500,000.

September 1961 Increased the capital to JPY 1.5 million.

September 1964 Increased the capital to JPY 4 million.

September 1968 Increased the capital to JPY 8 million.

July 1971 Business alliance with National Dairy Products Association.

May 1977 Founded an affiliate, “Daiichi Kosan Co., Ltd.”

July 1980 Technology alliance with then Hitachi Reiki Ltd.(now Hitachi

Appliance Ltd.”

March 1982 Opened an office in Kobe City.

September 1988 Increased the capital to JPY 20 million.

March 1991 Increased the capital to JPY 30 million.

June 2000 ISO9001 certified.

TRADE REFERENCES

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

*Suppliers*

==========

Fuyo Corp.

Ark Harima Co., Ltd.

K Three Inc.

Iwatani Techno Co., Ltd.

Tachibana Eletec Co., Ltd.

Hashimoto Sangyo Co., Ltd.

Taisei Co., Ltd.

Hisaka Seisakusho Co., Ltd.

Hyogo Shoji Co., Ltd.

Fuyo Maintenance System Inc.

*Customers*

==========

Hakutsuru Breweries Co., Ltd.

Seika Sangyo Corp.

Sawanotsuru Breweries Co., Ltd.

Hitachi Appliance Ltd.

Kenbishi Breweries Co., Ltd.

Ozeki Co., Ltd.

Takara Shuzo Co., Ltd.

Okano Food Industries Co., Ltd.

Yaegaki Shuzo Co., Ltd.

Taguchi Foods Co., Ltd.

Fujiwara Techno Art Co., Ltd.

Asahi Kogyo Co., Ltd.

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

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

Company name: Daiichi Kosan Co., Ltd.

Country: Japan

Status: Affiliate

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.46
UK Pound	1	Rs.98.51
Euro	1	Rs.77.31

INFORMATION DETAILS

Analysis Done by :	SUM
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.