MIRA INFORM REPORT

Report Date :

19.07.2014

IDENTIFICATION DETAILS

Name :	YAMABUN CO LTD

Registered Office :	3-1-29 Noda Kitaku Okayama 700-0971

Country :	Japan

Financials (as on) :	31.05.2014 (Estimated)

Date of Incorporation :	November 2012

Com. Reg. No.:	2600-01-625410 (Okayama-Kitaku)

Legal Form :	Limited Company (Kabushiki Kaisha)

Line of Business :	Importer and wholesaler of Photovoltaic Module System & Water Heaters

No. of Employees	05

RATING & COMMENTS

MIRA’s Rating :

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 – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

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

YAMABUN CO LTD

REGD NAME

KK Yamabun

MAIN OFFICE

3-1-29 Noda Kitaku Okayama 700-0971 JAPAN

Tel: 086-800-0007 Fax: 086-242-6221

URL: N/A

ACTIVITIES

Importer and wholesaler of Photovoltaic Module System & Water Heaters

BRANCHES

Nil

OFFICERS

MASAFUMI SETOYAMA, PRES

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES UNDETD A/SALES Yen 997 M

PAYMENTSno Complaints CAPITAL Yen 4 M

TREND UNDETD WORTH Yen 14 M

STARTED 2012 EMPLOYES 5

COMMENT

TRADING FIRM SPECIALIZING IN PHOTOVOLTAIC MODULE SYSTEM.

FINANCIAL SITUATION UNDETERMINED DUE TO THE RECENT INCEPTION BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

HIGHLIGHTS

The subject company was established by Masafumi Setoyama in order to make most of his experience in the subject line of business. This is a trading firm for import and wholesale of photovoltaic module system, water heater, other. 90% of the products are supplied to Eco System Group firms. .

FINANCIAL INFORMATION

Financials are disclosed only partially.

The sales volume for the initial fiscal term ended May/2013 amounted to Yen 997 million. The net profit was posted at Yen 10 million.

For the term that ended May 2014 the net profit was projected at Yen 15 million, on a 15% rise in turnover, to Yen 1,050 million. Final results are yet to be released.

The financial situation is considered FAIR and good for ORDINARY business engagements.

REGISTRATION

Date Registered: Nov 2012

Regd No.: 2600-01-625410 (Okayama-Kitaku)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 320 shares

Issued: 80 shares

Sum: Yen 4 million

Major shareholders (%): Masafumi Setoyama (50), Eco System Group (37.5), Koji Shinano (5), Yoshinari Moriyama (5)

No. of shareholders: 7

Nothing detrimental is known as to the commercial morality of executives.

OPERATION

Activities: Imports and wholesales photovoltaic module system, water heaters, other (--100%)

Clients: [Mfrs, wholesalers] Eco System Group firms (90%), Eisho Kiki (3%), Proeco Co (2%)

No. of accounts: 50

Domestic areas of activities: Centered in Okayama-Pref

Suppliers: [Mfrs, wholesalers] Ablytec Co (50%), Hanhwa Sales Q Japan (17%), Chuseki Co (16%), House Care Co (11%), other

Payment record: no complaints

Location: Business area in Okayama. Office premises at the caption address are leased and maintained satisfactory.

Bank References:

Chugoku Bank (Okayama-Minami)

Mizuho Bank (Okayama)

Relations: ^Satisfactory

FINANCES

(In Million Yen)

Terms Ending:	31/05/2014	31/05/2013
Annual Sales	1,050	997
Recur. Profit	20	17
Net Profit	15	10
Total Assets		309
Net Worth		14
Capital, Paid-Up		4
Div.P.Share(¥)		0.00
*<Analytical Data>*	(%)	(%)
S.Growth Rate	5.32	- - -
Current Ratio		..
N.Worth Ratio		4.53
N.Profit/Sales	1.43	1.00

Notes: The 31/05/2013 is the initial fiscal term. Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/05/2014 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.33
UK Pound	1	Rs.103.18
Euro	1	Rs.81.58

INFORMATION DETAILS

Analysis Done by :	RAS

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%)

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