MIRA INFORM REPORT

Report No. :	315812
Report Date :	17.04.2015

IDENTIFICATION DETAILS

Name :	TECHNO ASSOCIE CO., LTD
Registered Office :	3-3-17 Tosabori, Nishi-ku Osaka City, OSAKA 550-0001
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	August, 1946
Com. Reg. No.:	1200-01-039195
Legal Form :	Not Available
Line of Business :	Sales of fasteners, processed components, raw steel, electrical components, construction, chemical products, industrial instruments
No. of Employee :	1,785

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 4,610.2
Status :	Good
Payment Behaviour :	Regular
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	TECHNO ASSOCIE CO., LTD
	Japanese company name	KK Techno Associe
	Registered Office
	1. Street Number and District	3-3-17 Tosabori, Nishi-ku
	2. City and Perefecture	Osaka City, OSAKA
	3. ZIP Code	550-0001
	4. Country	JAPAN
	TEL	06-6459-2101
	FAX
	URL	www.technoassocie.co.jp
	Email Address	thru the URL
	Activities (Services & Products)	Sales of fasteners, processed components, raw steel, electrical components, construction, chemical products, industrial instruments, etc., and associated activities
SUMMARY OF REPORT
	Annual Sales (MM YEN)	98,778
	Capital Amount (MM YEN)	5,101
	Net Worth (MM YEN)	39,215
	FINANCES	FAIR
	TREND	UP
	EMPLOYEES	1,785
	CREDIT LIMIT PROPOSED(MM YEN)	4,610.2
	OTHER INFORMATION FOLLOWS:
	Year Started	1946
	Month and Year Registered	August, 1946
	Regd No.	1200-01-039195
	Major Shareholders
	1	Sumitomo Electiric
	2	Employees Shareholding association
	3	JP Morgan Chase
	Number of Shareholders	1,785
	Authorized Shares (MM)	80
	Issued Shares (MM)	20
	Executives
	PRESIDENT	HISATO SHINGU
	Chairman	Osamu Hashimoto
	Senior Mgn Director	Hiroaki Takayasu
	Mgn Director	Jun Ito
	Mgn Director	Michio Fujiwara
	Mgn Director	Ryuichi Hayashida
	Mgn Director	Shunji Oshima
	Main Banks
	1	SMBC (Funaba)
	2	Sumitomo Mitsui Trust (H/O)
	Relations	Satisfactory
	Clients
	1	Sharp
	2	Panasonic
	3	Toshiba
	4	Daikin
	5	Sankyo Tateyama
	Suppliers
	1	UTI Inc.
	2	DHP
	3	Sumitomo 3M
	4	NSC
	Branches
	1	Tokyo
	2	Osaka
	3	Saitama
	4	Toyama
	5	Fukuoka
	Factories
	1	None
	Overseas
	1	U.S.A
	2	Taiwan
	3	China and ohers
	HIGHLIGHT and COMMENT	Design, manufacture, and sale of fasteners, processed components, metal materials, electrical components, construction, chemical products, industrial machinery, and others, and incidental or related businesses
	FINANCIAL information	Finance partially disclosed
		Financials are disclosed only partially. The sales volume for Mar/2014 fiscal term amounted to Yen 98,778 million, a 7% up from Yen 91,974 million in the previous term. The recurring profit was posted at Yen 3,574 million and the net profit at Yen 3,187 million, respectively, compared with Yen 1,970 million recurring profit and Yen 2,750 million net profit, respectively, a year ago. For the term that ended Mar 2015 the recurring profit was projected at Yen 2,400 million and the net profit at Yen 1,700 million, respectively, on a 11% fall in turnover, to Yen 88,000 million. Sales/Profits are estimated to be worsen due to lower sales of solar energy generation system. 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 4,610.2 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	78,989	2,017	1,286	(%)	33,245
	31/03/2012	78,644	1,648	1,127	-0.44	33,939
	31/03/2013	91,974	1,970	2,750	16.95	36,528
	31/03/2014	98,778	3,574	3,187	7.40	39,215
	31/03/2015	88,000	2,400	1,700	-10.91	40,915
*..Unit: Million Yen
FINANCES: (Consolidated in million yen)
			Terms Ending:	31/03/2014	31/03/2013
	INCOME STATEMENT
		Annual Sales		98,778	91,974
		Cost of Sales		80,885	76,011
		GROSS PROFIT		17,893	15,963
		Selling & Adm Costs		14,603	14,168
		OPERATING PROFIT		3,290	1,795
		Non-Operating P/L		284	175
		RECURRING PROFIT		3,574	1,970
		NET PROFIT		3,187	2,750
	BALANCE SHEET
		Cash		5,025	4,409
		Receivables		27,481	31,687
		Inventory		8,436	10,121
		Securities, Marketable		0	94
		Other Current Assets		2,319	2,957
		TOTAL CURRENT ASSETS		43,261	49,268
		Property & Equipment		10,967	11,745
		Intangibles		509	645
		Investments, Other Fixed Assets		2,598	2,388
		TOTAL ASSETS		57,335	64,046
		Payables		12,194	17,062
		Short-Term Bank Loans		432	5,620
		Other Current Liabs		2,611	3,560
		TOTAL CURRENT LIABS		15,237	26,242
		Debentures
		Long-Term Bank Loans		2,200	604
		Reserve for Retirement Allw		436	341
		Other Debts		247	331
		TOTAL LIABILITIES		18,120	27,518
		MINORITY INTERESTS
		Common stock		5,001	5,001
		Additional paid-in capital		5,137	5,137
		Retained earnings		28,117	26,310
		Evaluation p/l on investments/securities
		Others		1,505	628
		Treasury stock, at cost		(545)	(548)
		TOTAL S/HOLDERS` EQUITY		39,215	36,528
		TOTAL EQUITIES		57,335	64,046
	CONSOLIDATED CASH FLOWS
			Terms ending:	31/03/2014	31/03/2013
		Cash Flows from Operating Activities		4,991	1,671
		Cash Flows from Investment Activities		-67	-485
		Cash Flows from Financing Activities		-4,228	-118
		Cash, Bank Deposits at the Term End		4,954	4,258
	ANALYTICAL RATIOS Terms ending:			31/03/2014	31/03/2013
			Net Worth (S/Holders' Equity)	39,215	36,528
			Current Ratio (%)	283.92	187.74
			Net Worth Ratio (%)	68.40	57.03
			Recurring Profit Ratio (%)	3.62	2.14
			Net Profit Ratio (%)	3.23	2.99
			Return On Equity (%)	8.13	7.53

FINANCES (Consolidated in million yen)
		Terms Ending:		31/03/2014	31/03/2013	IND/03/2014
INCOME STATEMENT
	Annual Sales			98,778	91,974
	Cost of Sales			80,885	76,011
	GROSS PROFIT			17,893	15,963	0
	Selling & Adm Costs			14,603	14,168
	OPERATING PROFIT			3,290	1,795	0
	Non-Operating P/L			284	175
	RECURRING PROFIT			3,574	1,970	0
	NET PROFIT			3,187	2,750
BALANCE SHEET
	Cash			5,025	4,409
	Receivables			27,481	31,687
	Inventory			8,436	10,121
	Securities, Marketable			0	94
	Other Current Assets			2,319	2,957	0
	TOTAL CURRENT ASSETS			43,261	49,268
	Property & Equipment			10,967	11,745
	Intangibles			509	645
	Investments, Other Fixed Assets			2,598	2,388	0
	TOTAL ASSETS			57,335	64,046
	Payables			12,194	17,062
	Short-Term Bank Loans			432	5,620
	Other Current Liabs			2,611	3,560	0
	TOTAL CURRENT LIABS			15,237	26,242
	Debentures
	Long-Term Bank Loans			2,200	604
	Reserve for Retirement Allw			436	341
	Other Debts			247	331	0
	TOTAL LIABILITIES			18,120	27,518
	MINORITY INTERESTS					..
	Common stock			5,001	5,001
	Additional paid-in capital			5,137	5,137
	Retained earnings			28,117	26,310
	Evaluation p/l on investments/securities
	Others			1,505	628	0
	Treasury stock, at cost			(545)	(548)
	TOTAL S/HOLDERS` EQUITY			39,215	36,528
	TOTAL EQUITIES			57,335	64,046	0
CONSOLIDATED CASH FLOWS
		Terms ending:		31/03/2014	31/03/2013	31/03/2012
	Cash Flows from Operating Activities			4,991	1,671
	Cash Flows from Investment Activities			-67	-485
	Cash Flows from Financing Activities			-4,228	-118
	Cash, Bank Deposits at the Term End			4,954	4,258
ANALYTICAL RATIOS Terms ending:				31/03/2014	31/03/2013	IND/03/2014
		Net Worth (S/Holders' Equity)		39,215	36,528	0
		Current Ratio (%)		283.92	187.74	..
		Net Worth Ratio (%)		68.40	57.03	..
		Recurring Profit Ratio (%)		3.62	2.14	..
		Net Profit Ratio (%)		3.23	2.99	..
		Return On Equity (%)		8.13	7.53	..
Notes: Audited by CPA. IND/xx/yyyy.. Non-consolidated figures for (xx month)/(yyyy year) term.
		Current Sales	98,778
		Credit Limit	4,610.2

Techno Associe#315812
Business	Terms Ending	Annual Sales*	R.Profit*	N.Profit*	S.Growth	Net Worth*
Results:	31/03/2011	78,989	2,017	1,286	(%)	33,245
(Consolidated)	31/03/2012	78,644	1,648	1,127	-0.44	33,939
	31/03/2013	91,974	1,970	2,750	16.95	36,528
	31/03/2014	98,778	3,574	3,187	7.40	39,215
	31/03/2015	88,000	2,400	1,700	-10.91	40,915
	Forecast (or estimated) figures for 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 :	KAR
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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