MIRA INFORM REPORT

Report Date :

10.10.2014

IDENTIFICATION DETAILS

Name :	JFE ADVANTECH CO LTD
Registered Office :	3-48 Takahatacho Nishinomiya Hyogo-Pref
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	November 1973
Legal Form :	Limited Corporation
Line of Business :	Manufactures measurement instruments, sensors, weighting equipment, other (--100%)
No of Employees :	285

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	Yen 208.1 Million
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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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 & address

JFE ADVANTECH CO LTD

REGD NAME

JFE Advantech KK

MAIN OFFICE

3-48 Takahatacho Nishinomiya Hyogo-Pref Japan

Tel: 0798-66-1783

Fax: 078-66-1654

*.. The given Postcode 111-0051 is its Tokyo Office location

URL: http://www.jfe-advantech.co.jp

E-Mail address: (thru the URL)

ACTIVITIES: Mfg of submersion level meters, scales, others

BRANCHES: Tokyo, Sendai, Nagoya, Hiroshima, Fukuoka, other (Tot 9)

FACTORIES: At the caption address, Kobe

OFFICERS: SHOGO TOMITA, PRES Yoshiharu Yamamoto, mgn dir

Yoshizo Ishikawa, mgn dir Yoshitaka Hayashi, dir

Minoru Yamazaki, dir Isao Tatsumi, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 5,668 M

PAYMENTS NO COMPLAINTS CAPITAL Yen 319 M

TREND UP WORTH Yen 3,535 M

STARTED 1973 EMPLOYES 285

COMMENT: MFR OF MEASUREMENT INSTRUMENTS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: ESTIMATED AT YEN 208.1 MILLION, ON 30 DAYS NORMAL TERMS.

HIGHLIGHTS

The subject company is a JFE Group firm under JFE Steel Corporation, Tokyo (See REGISTRATION). This is a specialized mfr of measuring instruments: submission level meter, vehicle scales, river ultrasonic flowmeter, other. Goods are exported. Clients include electronics makers, other.

FINANCIAL INFORMATION

The sales volume for Mar/2014 fiscal term amounted to Yen 5,668 million, a 9% up from Yen 5,185 million in the previous term. Demand increased, due to frequent floods, etc. The recurring profit was posted at Yen 654 million and the net profit at Yen 410 million, respectively, compared with Yen 518 million recurring profit and Yen 330 million net profit, respectively, a year ago.

For the current term ending Mar 2015 the recurring profit is projected at Yen 700 million and the net profit at Yen 450 million, respectively, on a 5% rise in turnover, to Yen 5,950 million.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 208.1 million, on 30 days normal terms.

REGISTRATION

Date Registered: Nov 1973

Regd No.: ^

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 2.5 million shares

Issued: 639,000 shares

Sum: Yen 319.5 million

Major shareholders (%): JFE Steel Corp* (100)

*.. Steel mfr, Tokyo, founded 1950, capital Yen 239,600 million, sales Yen 1,822,625 million, net loss Yen 29 million, employees 13,917, pres Eiji Hayashida

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

OPERATION

Activities: Manufactures measurement instruments, sensors, weighting equipment, other (--100%)

(Mfr items):

Water Environment Division: submersion level meters, current direction & speed meters, sludge densitometers, river flow meters;

Measuring & Diagnosis Division: on-line machine diagnosis systems, machine diagnosis instruments, vibration sensors, ultrasonic thickness gauges and ultrasonic hardness checkers, ultrasonic measurement systems, special measurement systems, other;

Weighing Systems Division: truck scales (vehicle scales), belt weighers, hopper scales, crane scales, automatic weighing systems, constant feeders, load cells, force weighers, various types of converters, indicators;

River & Channel Flow Measurement Division: river ultrasonic flowmeter

Clients: [Mfrs, wholesalers] JFE Steel, ERS Holdings, Shin-Meiwa Corp, Sanyo Special Steel, Toyo Electronics, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] NIVUA GmbH, ADT, Nortec AS, Fujitsu Micro Device, other

Payment record: No Complaints

Location: Business area in Nishinomiya, Hyogo-Pref. Office premises at the caption address are owned and maintained satisfactory.

Bank References:

Mizuho Bank (Kobe)

SMBC (Kobe)

Relations: Satisfactory

FINANCES

(In Million Yen) (Non-Consolidated Financials)

Terms Ending:		31/03/2015	31/03/2014	31/03/2013	31/03/2012
Annual Sales		5,950	5,668	5,185	4,984
Recur. Profit		700	654	518
Net Profit		450	410	330	330
Total Assets			5,895	5,383	5,115
Current Assets			4,871	4,375
Current Liabs			1,760	1,540
Net Worth			3,535	3,293	3,131
Capital, Paid-Up			319	319	319
Div.Ttl in Million (¥)			176.4	171.6	118.2
<Analytical Data>		(%)	(%)	(%)	(%)
S.Growth Rate		4.98	9.32	4.03	2.03
Current Ratio		..	276.76	284.09	..
N.Worth Ratio		..	59.97	61.17	61.21
R.Profit/Sales		11.76	11.54	9.99	..
N.Profit/Sales		7.56	7.23	6.36	6.62
Return On Equity		..	11.60	10.02	10.54

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/03/2015 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.04
UK Pound	1	Rs.98.64
Euro	1	Rs.77.74

INFORMATION DETAILS

Analysis Done by :	KAR
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%)

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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.