MIRA INFORM REPORT

Report No. :	314980
Report Date :	17.04.2015

IDENTIFICATION DETAILS

Name :	DAIICHI COMMODITIES CO LTD
Registered Office :	Shinsen Place Bldg., 9-1 Shinsencho Shibuyaku Tokyo 150-0045
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	November 1972
Com. Reg. No.:	0110-01-013038
Line of Business :	Subject is engaged in the commodity futures trading business. It trades commodity futures, including spot futures, cash ettlement, index commodities and option trading in sugar, marine products, agriculture and feed, precious metal, oil aluminum and rubber markets. It trade commodity futures for both customers' and its own accounts.
No. of Employee :	429

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 113.9
Status :	Satisfactory
Payment Behaviour :	Slow but correct
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 and address

ENGLISH COMPANY NAME		DAIICHI COMMODITIES CO LTD
Japanese company name		DAIICHI SHOHIN KK
Registered Office
1. Street Number and District		Shinsen Place Bldg., 9-1 Shinsencho Shibuyaku
2. City and Perefecture		Tokyo
3. ZIP Code		150-0045
4. Country		JAPAN
TEL		03-3462-8011
FAX		03-3462-8018
URL		www.dai-ichi.co.jp/
Email Address		thru the URL
Activities (Services & Products)		Commodity trading, Subsection 1/2 financial instrument operation.
SUMMARY OF REPORT
Annual Sales (MM YEN)		6,399
Capital Amount (MM YEN)		2,693
Net Worth (MM YEN)		9,049
FINANCES		FAIR
TREND		SLOW
EMPLOYEES		429
CREDIT LIMIT PROPOSED(MM YEN)		113.9
OTHER INFORMATION FOLLOWS:
Year Started		1972
Month and Year Registered		Nov. 1972
Regd No.		0110-01-013038
Major Shareholders
1		Murasaki (10%)
2		Emiko Honda (9%)
3		Other
Number of Shareholders		4,379
Authorized Shares		501,28,000
Issued Shares		162,27,207
Executives
PRESIDENT		ATSUSHI YAMANAKA
Chairman		Minoru Murasaki
Vice Chairman		Kunitoshi Ochiiwa
Senior Mgn Director		Tatsuo Shogaki
Mgn Director		Shinobu Jono
Director		Masato Yoshikuni
Director		Takenao Suzumura
Director		Koichi Sugawara
Director		Masashi Mitani
Main Banks
1		Muzuho Bank (Kofunecho)
2		Resona Bank (Shibuya)
Relations		Satisfactory
Clients
1		Personal investers
2		Ordinary companies
Suppliers
1		Commodity traders
Branches
1		Sendai
2		Saitama
3		Osaka
4		Fukuoka
5		Other (total 14)
Factories
1		None
Overseas
1		None
HIGHLIGHT and COMMENT		The subject company was founded in 1972 and is headquartered in Tokyo. It manily engaged in the commodity futures trading business. It trades commodity futures, including spot futures, cash ettlement, index commodities and option trading in sugar, marine products, agriculture and feed, precious metal, oil aluminum and rubber markets. It trade commodity futures for both customers' and its own accounts.
FINANCIAL information		Financials fully disclosed
		The sales volume for March/2014 fiscal term amounted to Yen 6,399 million, a 20% down from Yen 8,005 million in the previous term. The recurring profit was posted at Yen -20 million and the net profit at Yen 62 million, respectively, compared with Yen 1,552 million recurring profit and Yen 639 million net profit, respectively, a year ago. For the term that ended March 2015 the recurring profit was projected at Yen 0 million and the net profit at Yen 0 million, respectively, on a 5% rise in turnover, to Yen 6,719 million. 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 113.9 million, on 30 days normal terms.
PLEASE ATTACH THE FINANCIALS BELOW.
Note: Forecast (or estimated) figures for the 31/03/2015 fiscal term
Terms Ending		Annual Sales*		R.Profit*			N.Profit*			S.Growth	Net Worth*
31/03/2011		7,025		323			167			(%)	8,207
31/03/2012		8,055		1,749			923			14.67	8,968
31/03/2013		8,005		1,552			639			-0.63	9,295
31/03/2014		6,399		-20			62			-20.06	9,049
31/03/2015		6,719		0			0			5.00	9,049
0Forecast (or estimated) figures for 31/3/2015 term.										*..Unit: Million Yen
FINANCES: (Consolidated in million yen)
				Terms Ending:			31/03/2014			31/03/2013
INCOME STATEMENT
	Annual Sales						6,399			8,005
	Cost of Sales						6,642			6,744
	GROSS PROFIT						-243			1,261
	Selling & Adm Costs						0			0
	OPERATING PROFIT						-243			1,261
	Non-Operating P/L						224			291
	RECURRING PROFIT						-20			1,552
	NET PROFIT					62				639
BALANCE SHEET
	Cash					14,509				15,319
	Receivables					649				30
	Inventory					623				668
	Securities, Marketable					7,216				4,582
	Other Current Assets					17,562				21,147
	TOTAL CURRENT ASSETS					40,559				41,747
	Property & Equipment					755				560
	Intangibles						133			101
	Investments, Other Fixed Assets					2,534				2,861
	TOTAL ASSETS					43,980				45,269
	Payables								2,165	79
	Short-Term Bank Loans
	Other Current Liabs							32,357		35,497
	TOTAL CURRENT LIABS						34,522			35,576
	Debentures
	Long-Term Bank Loans
	Reserve for Retirement Allw
	Other Debts						410			397
	TOTAL LIABILITIES					34,931				35,973
	MINORITY INTERESTS
	Common stock							2,693		2,693
	Additional paid-in capital						2,672			2,672
	Retained earnings							3,925		4,172
	Evaluation p/l on investments/securities
	Others								5	5
	Treasury stock, at cost					(246)				(246)
	TOTAL S/HOLDERS` EQUITY					9,049				9,295
	TOTAL EQUITIES					43,980				45,269
CONSOLIDATED CASH FLOWS
					Terms ending:	31/03/2014				31/03/2013
	Cash Flows from Operating Activities					1,834				205
	Cash Flows from Investment Activities					-73				-23
	Cash Flows from Financing Activities					-323				-326
	Cash, Bank Deposits at the Term End					5,328				3,890
ANALYTICAL RATIOS Terms ending:						31/03/2014				31/03/2013
			Net Worth (S/Holders' Equity)			9,049				9,295
			Current Ratio (%)			117.49				117.35
			Net Worth Ratio (%)			20.58				20.53
			Recurring Profit Ratio (%)			-0.31				19.39
			Net Profit Ratio (%)			0.97				7.98
			Return On Equity (%)			0.69				6.88

FINANCES (Consolidated in million yen)
			Terms Ending:	31/03/2014		31/03/2013	IND/03/2014
INCOME STATEMENT
	Annual Sales			6,399		8,005
	Cost of Sales			6,642		6,744
	GROSS PROFIT			-243		1,261	0
	Selling & Adm Costs			0		0
	OPERATING PROFIT			-243		1,261	0
	Non-Operating P/L			224		291
	RECURRING PROFIT			-20		1,552	0
	NET PROFIT			62		639
BALANCE SHEET
	Cash			14,509		15,319
	Receivables			649		30
	Inventory			623		668
	Securities, Marketable			7,216		4,582
	Other Current Assets			17,562		21,147	0
	TOTAL CURRENT ASSETS			40,559		41,747
	Property & Equipment			755		560
	Intangibles			133		101
	Investments, Other Fixed Assets			2,534		2,861	0
	TOTAL ASSETS			43,980		45,269
	Payables			2,165		79
	Short-Term Bank Loans
	Other Current Liabs			32,357		35,497	0
	TOTAL CURRENT LIABS			34,522		35,576
	Debentures
	Long-Term Bank Loans
	Reserve for Retirement Allw
	Other Debts			410		397	0
	TOTAL LIABILITIES			34,931		35,973
	MINORITY INTERESTS						..
	Common stock			2,693		2,693
	Additional paid-in capital			2,672		2,672
	Retained earnings			3,925		4,172
	Evaluation p/l on investments/securities
	Others			5		5	0
	Treasury stock, at cost			(246)		(246)
	TOTAL S/HOLDERS` EQUITY			9,049		9,295
	TOTAL EQUITIES			43,980		45,269	0
CONSOLIDATED CASH FLOWS
			Terms ending:	31/03/2014		31/03/2013	31/03/2012
	Cash Flows from Operating Activities			1,834		205
	Cash Flows from Investment Activities			-73		-23
	Cash Flows from Financing Activities			-323		-326
	Cash, Bank Deposits at the Term End			5,328		3,890
ANALYTICAL RATIOS Terms ending:				31/03/2014		31/03/2013	IND/03/2014
		Net Worth (S/Holders' Equity)		9,049		9,295	0
		Current Ratio (%)		117.49		117.35	..
		Net Worth Ratio (%)		20.58		20.53	..
		Recurring Profit Ratio (%)		-0.31		19.39	..
		Net Profit Ratio (%)		0.97		7.98	..
		Return On Equity (%)		0.69		6.88	..
Notes: Audited by CPA. IND/xx/yyyy.. Non-consolidated figures for (xx month)/(yyyy year) term.
			Current Sales		6,399
			Credit Limit		113.9

Daiichi Commodity#314980
Business	Terms Ending	Annual Sales*	R.Profit*	N.Profit*	S.Growth	Net Worth*
Results:	31/03/2011	7,025	323	167	(%)	8,207
(Consolidated)	31/03/2012	8,055	1,749	923	14.67	8,968
	31/03/2013	8,005	1,552	639	-0.63	9,295
	31/03/2014	6,399	-20	62	-20.06	9,049
	31/03/2015	6,719	0	0	5.00	9,049
	0Forecast (or estimated) figures for 31/3/2015 term.				*..Unit: Million Yen

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.37
UK Pound	1	Rs.92.44
Euro	1	Rs.66.56

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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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