MIRA INFORM REPORT

Report Date :

27.09.2014

IDENTIFICATION DETAILS

Name :	MARUBENI TEKMATEX CORPORATION
Registered Office :	Nishikicho Trad Bldg 4F, 3-20 Kanda-Nishikicho Chiyodaku Tokyo
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	October 1973
Com. Reg. No.:	0100-01-057341
Legal Form :	Limited Company
Line of Business :	Import, export, wholesale of textile machinery
No. of Employees :	70

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

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 and address

MARUBENI TEKMATEX CORPORATION

REGD NAME: Marubeni Tekmatex KK

MAIN OFFICE: Nishikicho Trad Bldg 4F, 3-20 Kanda-Nishikicho Chiyodaku Tokyo 101-0054

JAPAN

Tel: 03-3293-3501 Fax: 03-3293-3508

URL: http//:www.tekmatex.jp

E-mail: info@tekmatex.jp

ACTIVITIES

Import, export, wholesale of textile machinery

BRANCHES

Nil

OFFICER(S)

SHINYA WATANOB, PRES Katsuhiro Suzuki, mgn dir

Ichiro Enomoto, dir Kazuhiko Hayashi, dir

Isao Nakagawa, dir Hiroshi Tanaka, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 62,920 M*

PAYMENTSno compliant CAPITAL Yen 480 M

TREND STEADY WORTH Yen 3,866 M

STARTED 1973 EMPLOYES 70

*.. Not precisely disclosed and estimated only

COMMENT

TRADING FIRM SPECIALIZING IN TEXTILE MACHINERY, OWNED BY MARUBENI CORATION.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

HIGHLIGHTS

The subject company was established on the basis of a textile division separated from Marubeni Corp, leading general trading house, Tokyo (See REGISTRATION). This is a trading firm specializing in textile machinery, and other industrial machinery. In 1976, succeeded the domestic sales & importing businesses of the Textile Machinery Dept of Marubeni Corp. In 1989, succeeded a part of importing business of the Dept, and advances simultaneously into the industrial machinery field. In 1997, merged a sister company, Marubeni Tekmatex International Ltd, and renamed as captioned. In 2000, merged a sister company, Tekma Engineering Co Ltd, to create a newly organized Marubeni Tekmatex Corp. Goods are actively exported to China and S/E Asian countries through the overseas branch office of the parent and its clients

FINANCIAL INFORMATION

Financials are consolidated by the parent, Marubeni Corp, and disclosed in digested form. Sales figures for the Mar/2014 fiscal term are not precisely disclosed and only estimated.

The sales volume for Mar/2014 fiscal term is reported amounted to Yen 62,920 million, a 10% up from Yen 57,200 million in the previous term. The weaker Yen may have raised export earnings in Yen terms. The net profit was posted at Yen 1,402 million, compared with Yen 488 million a year ago. .

For the current term ending Mar 2015 the net profit is projected at Yen 1,450 million, on a 6% rise in turnover, to Yen 66,500 million. Exports to China and other S/E Asian countries continue increasing.

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

REGISTRATION

Date Registered: Oct 1973

Regd No.: 0100-01-057341 (Tokyo-Chiyodaku)

Legal Status: 　Limited Company (Kabushiki Kaisha)

Authorized: 　3.84 million shares

Issued: 　960,000 shares

Sum: 　Yen 480 million

Major shareholders (%): Marubeni Corp* (100)

*.. One of big 5 general trading houses, Tokyo, founded 1949, listed Tokyo S/E, capital Yen 262,686 million, turnover Yen 13,633,520 million, operating profit Yen 157,462 million, recurring profit Yen 236,373 million, net profit Yen 210,945 million, total assets Yen 7,255,380 million, net worth Yen 1,385,313 million, employees 39,465, pres Fumiya Kokubu

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

OPERATION

Activities: Imports, exports and wholesales textile machinery: spinning equipment, weaving equipment, printing/dyeing equipment, knitting equipment, other industrial machinery (--100%).

Clients: [Mfrs, wholesalers] Tekmatex Inc (USA), Tekmatex Europe, Marubeni Corp, Toray Ind, Mitsubishi Rayon Engineering, Nitto Boseki Co, Unitika Ltd, Toyobo Co, Kondo Cotton Spinning Co, Nisshinbo Textile Inc, other

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Tsudakoma Corp, Murata Machinery, Toyota Industries Corp, Shimadz Corp, Hitachi Ltd, Toray Ind, Inoue Steel Works, Arioli, Liba, other.

Payment record: no complaints

Location: Business area in Tokyo. Office premises at the caption address are owned by the parent, Marubeni Corp, and maintained satisfactorily.

Bank References:

Mizuho Bank (Iidabashi)

SMBC (Asakusabashi)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:		31/03/2015	31/03/2014	31/03/2013	31/03/2012
Annual Sales		66,500	62,920	57,200	56,000
Recur. Profit
Net Profit		1,450	1,402	488	572
Total Assets			17,438	11,088	19,267
Current Assets			16,800	12,770	19,100
Current Liabs			13,393	10,399	17,000
Net Worth			3,866	2,445	2,180
Capital, Paid-Up			480	480	480
Div.P.Share(¥)			0.00	0.00	0.00
<Analytical Data>		(%)	(%)	(%)	(%)
S.Growth Rate		5.69	10.00	2.14	9.27
Current Ratio		..	125.44	122.80	112.35
N.Worth Ratio		..	22.17	22.05	11.31
R.Profit/Sales		..	..	..	..
N.Profit/Sales		2.18	2.23	0.85	1.02
Return On Equity		..	36.26	19.96	26.24

Notes: Sales figures for the 31/03/2014 fiscal term are not precisely disclosed and only estimated.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.57
UK Pound	1	Rs.100.42
Euro	1	Rs.78.44

INFORMATION DETAILS

Analysis Done by :	KAR
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.