MIRA INFORM REPORT

Report Date :

26.12.2014

IDENTIFICATION DETAILS

Name :	FANDF CO., LTD
Registered Office :	SD Bldg. 3F., 3-7-3, Ueno, Taito-ku, Tokyo 110-0005
Country :	Japan
Date of Incorporation :	20.10.1997
Com. Reg. No.:	0100-01-068320
Legal Form :	Private Company
Line of Business :	Trader of Machinery and Electronic Components.
No. of Employee :	40

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$ 150,000
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

FANDF CO., LTD.

OUTLINE

Country: Japan

Company name: FANDF CO., LTD.

Name in local language: FANDF K.K.

Office address: SD Bldg. 3F., 3-7-3, Ueno, Taito-ku, Tokyo 110-0005

Office tel: 03-5817-2215

Office fax: 03-5817-2217

Website: www.fandf-hi.co.jp

Business type: Trader

Industry: Machinery and electronic components

Established: October 20, 1997

Capital: Jp. 30,000,000 yen

Employees: 40

Corporate formation: Private

Corporation No.: 0100-01-068320 (Tokyo Legal Affairs Bureau)

MAJOR SHAREHOLDERS

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

Number of authorized shares : 800 shares

Shares issued : 425 shares

Number of shareholder : 6

Name of shareholders Number of shares (%)

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

Mr. Shoichi Iwai, president 198 shares (46.6)

Ms. Junko Hayashi, auditor 160 shares (37.6)

Mr. Yoshio Kurihara, director 34 shares ( 8.0)

Ms. Hiromi Akaike, director 21 shares ( 4.9)

Mr. Takeo Shirosako, director 9 shares ( 2.1)

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

Total 422 shares (99.3)

DETAILED PRODUCT CLASSFICATION & ACTIVITY

Activity Product/Service Description

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

Trading Machinery

Trading Electronic and structural components

Service Installation work

Service Maintenance work

COMPANY MANAGEMENT

President Mr. Shoichi Iwai

Nationality: Japan

Director Ms. Hiromi Akaike

Nationality: Japan

Director Mr. Yoshio Kurihara

Nationality: Japan

Director Mr. Takeo Shirosako

Nationality: Japan

Director Mr. Shu-Feng Wang (王樹峰)

Nationality: n. a.

Auditor Ms. Junko Hayashi

Nationality: Japan

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

*Key Personnel*

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

Mr. Shoichi Iwai

President and representative director

Born on January 31, 2956

Business career:

October 25, 2009: Representative director and president of the subject.

Home address: 2-4-1, Shitaya, Taito-ku, Tokyo 110-0004

FINANCIALS

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2008	1,777,712,000	22,309,000
2009	1,237,662,000	loss 29,450,000
2010	1,614,210,000	21,735,000
2011	1,729,710,000	21,859,000
2012	1,651,808,000	19,085,000
2013	2,401,444,000	23,633,000

FINANCIAL DESCRIPTION

*Book Closing*

August 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 : Ueno

Bank Name : Mizuho Bank, Ltd.

Branch : Ueno

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

Branch : Akihabara

*Credit Opinion*

The subject is a Tokyo-based firm, which originally started as an importer of foreign semiconductors.

Recently the subject has been putting a focus on medical instruments.

Customers are excellent and reliable.

Many of suppliers are reliable ones, too.

Sales jumped up for August 2013 term, of which reason has not been disclosed.

The net income, however, has remained almost in the same level as that of the past.

As a whole a steady performance has been maintained for years except for Aug. 2009 term.

Our standard suggestion would be up to US$ 150,000 on terms of 90 days.

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Products & Services*

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

Designing, manufacture(by subcontractor) and sales of:

- Equipment and devices relating to information system

- Equipment and devices relating to communications

- Medical instruments

-

Wholesale of:

- Electronic components

- Structural components

Others

- Agency work for production on contract basis

- Installation work

- Maintenance work

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

Hachioji facility: Ishikawa-cho, Hachioji-shi, Tokyo

ORGANIZATION STRUCTURE

*Address*

========

Registered address is the same as the operational address.

*Company History*

Date Development

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

October 20, 1997 Incorporated.

April 1, 2013 Relocated to the current address from the following:

5-1-5, Sotokanda, Chiyoda-ku, Tokyo

2003 Started manufacturing medical instruments.

2005 Founded the first manufacturing facility in China.

2006 ISO14001 and 9001 certified.

TRADE REFERENCES

*Suppliers*

==========

PFU Corp.

Takebishi Corp.

Okaya Electronics Co., Ltd.

Donghan Electric Co., Ltd.

Unidax Corp.

Yamashita Material Co., Ltd.

Tyco Electronics Japan K.K.

Nagano Tectron Co., Ltd.

Tech Wind Co., Ltd.

*Customers*

==========

GE Healthcare Japan K.K.

GE Medical System China Co., Ltd.

Okaya Eelctronics Co., Ltd.

Hitachi Procurement Service Ltd.

PJ Electronics Inc.

Konami Manufacturing Co., Ltd.

Toshiba Semiconductor Co., Ltd.

Toshiba Business & Life Service Co., Ltd.

Arcs Corp.

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

Company name: FandF Electron (Wuxi), Co., Ltd.

Country: China

Status: Subsidiary

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

Company name: Shanghai FandF International Trade Co., Ltd.

Country: China

Status: Subsidiary

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

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 :	KAR
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.