MIRA INFORM REPORT

Report Date :

16.09.2014

IDENTIFICATION DETAILS

Name :	TAIWA CO LTD
Registered Office :	811 Ichihiraga Seki Gifu-Pref 501-3822
Country :	Japan
Financials (as on) :	31.12.2013
Date of Incorporation :	October 1971
Com. Reg. No.:	(Gifu-Seki) 019305
Legal Form :	Limited Company
Line of Business :	Mfg of forged products, metal molds, horse shoes, automobile equipment
No. of Employees :	50

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 :	Yen 27.0 Million
Status :	Moderate / Satisfactory
Payment Behaviour :	Unknown / Slow but correct / 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 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Japan	A1	A1

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

TAIWA CO LTD

REGD NAME: Taiwa Kogyo KK

MAIN OFFICE: 811 Ichihiraga Seki Gifu-Pref 501-3822 JAPAN

Tel: 0575-24-1111 Fax: 0575-24-7110

URL: http://www.taiwa-co.com

E-Mail address: info@taiwa-co.com

ACTIVITIES

Mfg of forged products, metal molds, horse shoes, automobile equipment

BRANCHES

Chiba

OVERSEAS

Australia

FACTORIES

At the caption address

OVERSEAS

Shanghai (China)

OFFICERS

KAZUHIRO HASEGAWA, PRES

Hisako Hasegawa, ch Yuji Hayakawa, dir

Satoshi Ogura, dir Yuki Hasegawa, dir

Yumiko Hasegawa, dir Hirofumi Ukai, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 1,470 M

PAYMENTSno complaints CAPITAL Yen 45 M

TREND UP WORTH Yen 157 M

STARTED 1971 EMPLOYES 50

COMMENT

MFR OF METAL MOLDS, FORGED PRODUCTS, AUTOMOBILE PARTS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: YEN 27.0 MILLION, 30 DAYS NORMAL TERMS

HIGHLIGHTS

The subject company was established by Taizo Hasegawa in order to make most of his experience in the subject line of business. Kazuhiro is his son, who took the pres office in Dec 1990. This is a family-based mfr, wholly owned by the Hasegawa family, of forged products (aluminum, copper, other), metal molds, horse shoes, hoofs, other. In 1988, started mfg horse shoes, hoofs, other, having over 80% market share in Japan. From 2010, the firm switched the mainline mfg items to automobile equipment and parts, such as lead and aluminum pin-fin heat sinks for EV (Electric car) and HV (hybrid car), etc, and sales have expanded steeply. Operates mfg factory in Shanghai (China), founded in 2003, where the products are produced to local market and exports. Clients include machinery makers, wholesalers, other.

FINANCIAL INFORMATION

Financial are only partially disclosed. The financials for Dec/2013 fiscal term are not precisely disclosed and only reported.

The sales volume for Dec/2013 fiscal term is reported amounted to Yen 1,470 million, a 4% up from Yen 1,420 million in the previous term. Forged products for automobiles & bicycles rose, and exports earnings rose in Yen terms by the weaker Yen. The net profit is reported posted at Yen 25 million, compared with Yen 21 million a year ago.

For the current term ending Dec 2014 the net profit is projected at Yen 30 million, on a 5% rise in turnover, to Yen 1,550 million. Production at Shanghai Factory is increasing steadily.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 27.0 million, on 30 days normal terms.

REGISTRATION

Date Registered: Oct 1971

Regd No.: (Gifu-Seki) 019305

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 360,000 shares

Issued: 90,000 shares

Sum: Yen 45 million

Major shareholders (%): Hisako Hasegawa, Kazuhiro Hasegawa (--100)

No. of shareholders: 2

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

OPERATION

Activities: Manufactures forged products for automobiles (aluminum & copper pin-fin heat sinks for EV & HV, other), bicycle industries, metal molds (aluminum, copper, magnesium, die cast, forged cast, other), horse shoes, hoofs, other (--100%)

Clients: [Mfrs, wholesalers] Howa Machinery Ltd, KYB Co, Aisin Seiki Co, Wako Filter Technology Co, Hitachi Ltd, Yamaha Motor Co, Shimano Inc, Miki Pulley Co, Barudan Co, Panasonic Corp, MOTO, Bridgestone Corp, T Rad Co, other

No. of accounts: 300

Domestic areas of activities: Centered in greater-Nagoya

Suppliers: [Mfrs, wholesalers] Koyama Steel Ltd, Apple Inc, Kawamura Netsuren Co, other

Imports from China, Australia, other

Payment record: no complaints

Location: Business area in Seki City, Gifu-Pref. Office premises at the caption address are owned and maintained satisfactorily.

Bank References:

Jyuroku Bank (Seki)

Ogaki Kyoritsu Bank (Seki)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:		31/12/2014	31/12/2013	31/12/2012	31/12/2011
Annual Sales		1,550	1,470	1,420	1,400
Recur. Profit		..	..	..	..
Net Profit		30	25	21	2
Total Assets			N/A	N/A	N/A
Net Worth			157	140	126
Capital, Paid-Up			45	45	45
Div.P.Share(¥)			0.00	0.00	0.00
<Analytical Data>		(%)	(%)	(%)	(%)
S.Growth Rate		5.44	3.52	1.43	133.33
Current Ratio			..	..	..
N.Worth Ratio			..	..	..
N.Profit/Sales		1.94	1.70	1.48	0.14

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.60.99
UK Pound	1	Rs.99.09
Euro	1	Rs.79.03

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	PDT

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.