MIRA INFORM REPORT

Report Date :

11.07.2014

IDENTIFICATION DETAILS

Name :	TAIYO & CO LTD

Registered Office :	4-42-9 Niwashirodai Minamiku Sakai Osaka-Pref 590-0133

Country :	Japan

Financials (as on) :	31.12.2013

Date of Incorporation :	October 2009

Com. Reg. No.:	1201-01-028654

Legal Form :	Limited Company

Line of Business :	Export of steel plates, sheets

No. of Employees	01

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

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 and address

TAIYO & CO LTD

REGD NAME: Taiyo Tsusho KK

MAIN OFFICE: 4-42-9 Niwashirodai Minamiku Sakai Osaka-Pref 590-0133 JAPAN

Tel: 072-298-3317 Fax: 072-298-3319

URL: N/A

ACTIVITIES

Export of steel plates, sheets

BRANCHES

Nil

OFFICERS

MASAKATSU NAKAGAWA, PRES

Keiko Nakagawa, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES R/WEAK A/SALES Yen 300 M

PAYMENTS NO COMPLAINTS CAPITAL Yen 0.5 M

TREND SLOW WORTH Yen 45 M

STARTED 2009 EMPLOYES 1

COMMENT

TRADING FIRM FOR EXPORT OF STEEL SHEETS.

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

HIGHLIGHTS

The subject company was established originally in 1978 by Masakatsu Nakagawa but was reorganized in Oct 2009 and started anew from then. This is a trading firm for export of steel sheets & plates. Goods are exported to India, Pakistan, Sri Lanka, Bangladesh, Hong Kong, Taiwan, other.

FINANCIAL INFORMATION

Financials are only partially disclosed. Profits are not precisely disclosed and only estimated.

The sales volume for the Dec/2013 fiscal term amounted to Yen 300 million, a 25% down from Yen 400 million. The net profit is estimated posted at Yen 5 million, compared with Yen 10 million a year ago.

For the current term ending Dec 2014 the net profit is projected at Yen 8 million, on a 17% rise in turnover, to Yen 350 million.

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.

REGISTRATION

Date Registered: Oct 2009

Regd No.: 1201-01-028654 (Osaka-Sakai-Minamiku)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 40 shares

Issued: 10 shares

Sum: Yen 500,000.00

Major shareholders (%): Masakatsu Nakagawa (100)

Nothing detrimental is known as to his commercial morality.

OPERATION

Activities: Trading firm for exporting steel sheets, plates, other (--100%)

Clients: [Mfrs, wholesalers] Exports to India, Bangladesh, Pakistan, Sri Lanka, Hong Kong, Taiwan, Arab Emirates, other

No. of accounts: Unavailable

Domestic areas of activities: Centered in greater-Osaka

Suppliers: Mfrs, wholesalers, other

Payment record: No complaints

Location: Business area in Sakai, Osaka-Pref. Office premises at the caption address are leased and maintained satisfactorily.

Bank References:

Tokushima Bank (Osaka)

SMBC (Itachibori)

Relations: Money deposits and transfers only

FINANCES

(In Million Yen)

Terms Ending:	31/12/2014	31/12/2013	31/12/2012	31/12/2011
Annual Sales	350	300	400	400
Recur. Profit	..	..	..	..
Net Profit	8	5	10	10
Total Assets		N/A	N/A	N/A
Net Worth		45	40	30
Capital, Paid-Up		0.5	0.5	0.5
Div.P.Share(¥)		0.00	0.00	0.00
*<Analytical Data>*	(%)	(%)	(%)	(%)
S.Growth Rate	16.67	-25.00	0.00	33.33
Current Ratio		..	..	..
N.Worth Ratio		..	..	..
N.Profit/Sales	2.29	1.67	2.50	2.50

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/12/2014 fiscal term

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.88
UK Pound	1	Rs.102.59
Euro	1	Rs.81.69

INFORMATION DETAILS

Analysis Done by :	SUM

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%)

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