MIRA INFORM REPORT

Report Date :

26.12.2014

IDENTIFICATION DETAILS

Name :	SEIDENSHA CO., LTD
Registered Office :	2-4-3, Ton-ya-machi, Takasaki-shi, Gunma pref. 370-0006
Country :	Japan
Financials (as on) :	20.04.2014
Date of Incorporation :	01.08.1958
Com. Reg. No.:	0700-01-007361
Legal Form :	Private Company
Line of Business :	Trader of Electric and electronic parts and components, FA equipment & devices
No. of Employees :	94

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

SEIDENSHA CO., LTD.

Company summary

Country: Japan

Company name: SEIDENSHA CO., LTD.

Name in local language: SEIDENSHA, K.K. (株式会社成電社)

Office address: 2-4-3, Ton-ya-machi, Takasaki-shi, Gunma pref. 370-0006

Office tel: 027-362-5111

Office fax: 027-362-5950

Website: www.sdnsha.co.jp

Business type: Trader

Industry: Electric and electronic parts and components, FA equipment & devices

Established: August 1, 1958

Capital: Jp. 30,000,000 yen

Employees: 94

Corporate formation: Private

Corporation No.: 0700-01-007361 (Maebashi Legal Affairs Bureau)

MAJOR SHAREHOLDERS

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

Number of authorized shares : 240,000 shares

Shares issued : 60,000 shares

Number of shareholder : 26

Name of shareholders Number of shares (%)

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

Mr. Eiichi Takizawa, president 14,450 shares (24.1)

Seiwa Kosan Co., Ltd. 11,608 shares (19.3)

Mr. Kazuki Matsuda, managing director 5,935 shares ( 9.9)

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

Total 31,993 shares (53.3)

DETAILED PRODUCT CLASSFICATION & ACTIVITY

Activity Product/Service Description

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

Trading Electric and electronic parts and components

Trading FA equipment and devices

COMPANY MANAGEMENT

President Mr. Eiichi Takizawa

Nationality: Japan

Managing Director Mr. Kazuki Matsuda

Nationality: Japan

Director Mr. Hiroshi Takizawa

Nationality: Japan

Director Ms. Yoshiko Takizawa

Nationality: Japan

Director Mr. Katsunori Munakata

Nationality: Japan

Auditor Mr. Fumihiro Shimazu

Nationality: Japan

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

*Key Personnel*

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

Mr. Eiichi Takizawa

President and representative director

Born on June 16, 1957

Home address: 1-18-11, Kataoka-cho, Takasaki-shi, Gunma pref. 370-0862

FINANCIALS

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2009	6,173,234,000	9,317,000
2010	5,704,539,000	5,050,000
2011	6,481,358,000	138,685,000
2012	6,955,825,000	120,677,000
2013	7,378,333,000	129,466,000
2014	7,559,190,000	76,862,000

FINANCIAL DESCRIPTION

*Book Closing*

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

April 20th

*Financials*

==========

Balance Sheet
Unit: millions of JP yen
	4/20/2012	4/20/2013	4/20/2014
Current assets	3,488	3,471	3,936
Cash & deposits	514	570	526
Account receivables	2,633	2,553	2,945
Inventories	350	354	436
Others	-9	-6	29
Fixed assets	565	615	652
Tangible assets	300	314	316
Intangible assets	3	2	2
Investments & others	261	299	333
Total Assets	4,053	4,087	4,588
Current liabilities	1,874	1,783	2,212
Account payables	1,748	1,678	2,130
Outstanding taxes	87	41	31
Others	39	64	51
Fixed liabilities	0	0	0
Shareholders' equity	2,179	2,304	2,376
Paid up capital	30	30	30
Retained earnings	2,149	2,274	2,346
Total Liabilities & Net Assets	4,053	4,087	4,588
Income Statement
Unit : millions of JP yen
	4/20/2012	4/20/2013	4/20/2014
Sales	6,955	7,378	7,559
Cost of goods sold	6,214	6,639	6,777
Gross profit(loss)	741	739	782
Sales/administrative expenses	588	605	702
Operating profit(loss)	153	133	79
Non operating income	57	84	48
Non operating expenses	1	0	0
Ordinary profit(loss)	209	218	128
Special profits	-	4	0
Special losses	-	12	-
Pretax profit	208	210	127
Taxes & adjustment	87	81	50
Net profit	120	129	76

*Bank Details*

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

Bank Name : Gunma Bank, Ltd.

Branch : Takasaki

*Credit Opinion*

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

The subject is a local firm, located in Takasaki City, Gunma Prefecture, specializing in wholesale of electric and electronic parts and components as well as FA equipment and devices with its business focused on the region of Kanto District and its surrounding areas.

Sales has been picking up after it hit a bottom in the wake of The Lehman Shock.

The net income level has been recovered since then except for the recent Apr. 2014 term.

Financial condition is sound.

Suppliers and customers are reliable.

Negative factors are not observed in particular except for a weaker currency for the imported items.

LOCAL BRANCHES & MANAGEMENT

Branch name: Oyama sales office

Branch address: Higashi-jonan, Oyama-shi, Tochigi pref

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

Branch name: Nagano sales office

Branch address: Shimo-shiojiri, Ueda-shi, Nagano pref.

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

Branch name: Saitama sales office

Branch address: Suneori, Tsurugashia-shi, Saitama pref.

Four other local sales offices are in Ota-shi(Gunma), Nagaoka-shi(Niigata), Koriyama-shi(Fukushima) and Hitachi-shi(Ibaraki).

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Products & Services*

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

Wholesale of the following products:

Electric and electronic parts and components

FA equipment and devices

Imported products

Electric engineering work

Overseas business support

Key board & harness assembly work(by its subsidiaries)

ORGANIZATION STRUCTURE

*Address*

=========

Registered address is the same as the operational address.

*Company History*

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

Date Development

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

April 20, 1949 Started business under the name of “Seidensha.”

August 1, 1958 Incorporated.

May 1967 Relocated the head office to the current address.

October 1972 Founded a subsidiary, “Seiden Kogyo Co., Ltd.” by separating the

manufacturing operation from the subject.

April 1985 Founded a subsidiary, “Seiden Semiconductor Co., Ltd.” by a company

split of Seiden Kogyo Co., Ltd.

April 1993 Completed the head office building.

February 2002 ISO9001 certified.

February 2005 Founded a subsidiary, “Seidensha(Hong Kong) Ltd.”

TRADE REFERENCES

*Suppliers*

==========

Panasonic Device Sales Co., Ltd.

Panasonic Corp.

IDEC Corp.

Nippon Chemicon Co., Ltd.

NIDEC Copal Co., Ltd.

Mitsubishi Electric Corp.

Teikoku Tsushin Kogyo Co., Ltd.

*Customers*

==========

Sanden Corp.

Mitsuba Corp.

Panasonic Corp.

OKI Electric Co., Ltd.

Fuji Heavy Industries, Ltd.

Taiyo Yuden Co., Ltd.

Toshiba Carrier Co., Ltd.

Tamura Seisakusho Co., Ltd.

Ikegami Tsushinki Co., Ltd.

NSK Ltd.

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

Company name: Seiden Kogyo Co., Ltd.

Country: Japan

Status: Subsidiary

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

Company name: Seiden Semiconductor Co., Ltd.

Country: Japan

Status: Subsidiary

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

Company name: Seidensha(Hong Kong) Ltd.

Country: Hong Kong

Status: Subsidiary

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

RELATED PARTIES DESCRIPTION

*Subsidiaries & Affiliates*

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

As of April 30, 2014 the subject owns and controls a total of three subsidiaries at home and abroad.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.45
UK Pound	1	Rs.98.88
Euro	1	Rs.77.62

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIS

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.

S