MIRA INFORM REPORT

Report No. :	315810
Report Date :	16.04.2015

IDENTIFICATION DETAILS

Name :	NAGANUMA SHOJI CO LTD
Registered Office :	6-14 Fukurocho Naka-ku, Hiroshima city Hiroshima 730-0036
Country :	Japan
Financials (as on) :	31.08.2014
Date of Incorporation :	September 1957
Com. Reg. No.:	2400-01-007895
Legal Form :	Limited Company
Line of Business :	Wholesale/Export of electrical and electronic equipment, energy transport, information equipment, building equipment, network system construction, auto parts and electronic components, automotive and consumer wire harness electrical equipment, metals and light metal resin molded products and processed products, copper products, aluminum, industrial machinery Labor-saving automation equipment and logistics systems, others.
No. of Employees :	140

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 146.3 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

ENGLISH COMPANY NAME	NAGANUMA SHOJI CO LTD
Japanese company name	Naganuma Shoji KK
Registered Office
1. Street Number and District	6-14 Fukurocho Naka-ku
2. City and Perefecture	Hiroshima city Hiroshima
3. ZIP Code	730-0036
4. Country	JAPAN
TEL	082-248-0211
FAX	082-542-0180
URL	www. naganuma.co.jp/about.html
Email Address	thru the URL
Activities (Services & Products)	Wholesale/Export of electrical and electronic equipment, energy transport, information equipment, building equipment, network system construction, auto parts and electronic components, automotive and consumer wire harness electrical equipment, metals and light metal resin molded products and processed products, copper products, aluminum, industrial machinery Labor-saving automation equipment and logistics systems, others.
SUMMARY OF REPORT
Annual Sales (MM YEN)	22,659
Capital Amount (MM YEN)	57
Net Worth (MM YEN)	Unavailble
FINANCES	FAIR
TREND	UP
EMPLOYEES	140
CREDIT LIMIT PROPOSED(MM YEN)	146.3
OTHER INFORMATION FOLLOWS:
Year Started	1912
Month and Year Registered	Sep 1957
Regd No.	2400-01-007895
Major Shareholders
1	Naganuma Dengyo
2	Hiroshi Naganuma
3	Tsuyoshi Naganuma
Number of Shareholders	12
Authorized Shares	10,000,000
Issued Shares	908,000
Executives
PRESIDENT	TSUYOSHI NAGANUMA
Chairman
Vice President	Shin Naganuma
Mgn Director	Yuji Machiguchi
Mgn Director	Tetsuji Kubo
Director	Motoyasu Tanaka
Director	Masanobu Kyogoku
Director	Fumitaka Kayaki
Main Banks
1	Hiroshima Bank(Head Office)
2	SMBC(Hiroshima)
Relations	Satisfactory
Clients
1	Mazda
2	Chugoku Electric Power Co
3	Japan Climate Systems
4	Nesco
5	Others
Suppliers
1	Furukawa Electric Co
2	Viscas
3	Contitech Fluid Korea
4	Uacj
5	Others
Branches
1	Tokyo
2	Osaka
3	Okayama
4	Nagoya
5	Others(Tot 8)
Factories
1	None
Overseas
1	Hong Kong
2	Shanghai
3	Taipei
HIGHLIGHT and COMMENT	The subject company was established in 1957, a spin-off of the 1912 founded the commercial department of "Corporation Naganuma Dengyosha". In addition to the transactions with Chugoku Electric Power since its inception, in 1955's began in high growth, especially advanced by the development of motorization wire harness (automotive assembly wire) and automobile parts production equipment, start trading with Mazda. Activity area also went spread gradually.
FINANCIAL Information	Finance partially disclosed
	Financials are disclosed only partially. The sales volume for Aug/2014 fiscal term amounted to Yen 22,659 million, a 10.7% up from Yen 20,469 million in the previous term. The net profit amounted at Yen 265 million which is increased from Yen 241million in 2013. For the current term ending Aug/2015, the net profit at Yen 295 million is estimated based on a 10.7% rise in turnover, to Yen 25,083 million. Only sales figures and recur. profit for 2014 has been disclosed. Final results are yet to be released. The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 146.30 million, on 30 days normal terms.
PLEASE ATTACH THE FINANCIALS BELOW.
Terms Ending:	31/08/2015	31/08/2014	31/08/2013	31/08/2012
Annual Sales	25,083	22,659	20,469	16,066
Recur. Profit	..	534	..	..
Net Profit	295	265	241	115
Total Assets
Net Worth
Capital, Paid-Up
Div.P.Share(¥)		0.00	0.00	0.00
<Analytical Data>	(%)	(%)	(%)	(%)
S.Growth Rate	10.70	10.70	27.41
Current Ratio		..	..	..
N.Worth Ratio		..	..	..
N.Profit/Sales	1.18	1.17	1.18	0.72
Note: Forecast (or estimated) figures for the 31/08/2015 fiscal term

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.40
UK Pound	1	Rs.92.15
Euro	1	Rs.66.48

INFORMATION DETAILS

Analysis Done by :	DIV
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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