MIRA INFORM REPORT

Report Date :

07.01.2011

IDENTIFICATION DETAILS

Name :	THIRDWAVE CORPORATION

Registered Office :	Dai-2 Dempa Bldg 8F/9F, 2-14-10 Sotokanda Chiyodaku Tokyo 101-002

Country :	Japan

Financials (as on) :	31.07.2010

Date of Incorporation :	March 1984

Com. Reg. No.:	(Tokyo-Chiyodaku) 018053

Legal Form :	Limited Company

Line of Business :	Import, Export, Wholesale, Retail of PCs, AV equipment, peripherals

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	Yen 1,604.2 Million
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	---

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 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Japan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

THIRDWAVE CORPORATION

REGD NAME

KK Third Wave

MAIN OFFICE

Dai-2 Dempa Bldg 8F/9F, 2-14-10 Sotokanda Chiyodaku Tokyo 101-002, JAPAN　

Tel: 03-5294-6327 Fax: 03-5294-6332

URL: http://www.twave.co.jp/

E-mail: (thru the URL)

ACTIVITIES

Import, export, wholesale, retail of PCs, AV equipment, peripherals

SHOPS

· Osaka, Nagoya, Sapporo, Sendai, Chiba, Kawasaki, Omiya, Shizuoka,

· Kyoto, Kobe, Okayama, Hiroshima, Fukuoka, other (Tot 34 shops)

OFFICER(S)

· KENSUKE OZAKI, PRES

· Yusuke Ozaki, dir

· Mitsumasa Ueki, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 26,449 M

PAYMENTS REGULAR CAPITAL Yen 40 M

TREND STEADY WORTH Yen 6,029 M

STARTED 1999 EMPLOYES 590

COMMENT

IMPORTER AND WHOLESALER OF PCS, AV EQUIPMENT, PERIPHERALS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$600,000 / O/A 60 DAYS

MAX CREDIT LIMIT: YEN 1,604.2 MILLION, 30 DAYS NORMAL TERMS

HIGHLIGHTS

The subject company was established for sales of PC & peripherals, as Thirdwave Corporation. Opened the first shop in Akihabara, known as the Electric Town, Tokyo. Operates a total 34 stores nationwide, named “DOSPARA”. This is a trading firm specializing in import, export, retail and wholesale of PCs & peripherals (See OPERATION). 75% of the goods are retailed. In 1992, started sales of IBM compatible PC parts. In Apr 2008, the firm formed a Holding Company, Thirdwave Holdings Corporation, and became its subsidiary. Under the holding company are two subsidiaries: Thirdwave Corporation and Evergreen Corporation.

FINANCIAL INFORMATION

Financials are disclosed in digested form only, but not for the 31/07/2010 fiscal term.

The sales volume for Jul/2010 fiscal term amounted to Yen 26,449 million, a similar amount in the previous term. The newly developed “Smart Phone” sales contributed. The net profit was posted at Yen 260 million, compared with Yen 500 million a year ago.

For the current term ending Jul 2011 the net profit is projected at Yen 265 million, on a 4% rise in turnover, to Yen 27,500 million. Sales are seen steadily rising on the back of rising demand for “Smart Phone”, other.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,604.2 million, on 30 days normal terms. The proposed amount for 60 days terms is considered well within the firm’s financial capacities.

REGISTRATION

Date Registered: Mar 1984

Regd No.: (Tokyo-Chiyodaku) 018053

Legal Status: 　 Limited Company (Kabushiki Kaisha)

Authorized: 　 320,000 shares

Issued: 80,000 shares

Sum: 　 Yen 40 million

Major shareholders (%): Thirdwave Holdings Corp* (100)

*.. Holding company owned by Kensuke Ozaki

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

OPERATION

Activities: Retails & wholesales PCs & peripherals (--100%).

(Handling items): desktop PCs, notebooks, servers, CPUs, memory modules, hard drives, DVD, CD-ROM, CD-TW, MO, FDD (diskette drives), motherboards, VGS cards, sound cards, network cards, monitors, printers, video capture cards, modems, PC cases, keyboards, mouse, speakers, cables, connectors, media (CD-R/RW, DVD-R/RW), other.

Clients: [Consumers, PC stores, business firms] Consumers (75%), Online sales (15%), Corporations, universities, research institutes, schools (--10%)

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Okaya Electronics (20%), CFD Sales Corp (8%), LG Electronics Japan, Unidax Inc, Acer Japan, other. Imports from USA, other.

Payment record: Regular

Location: Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.

Bank References:

· SMBC (Kanda)

· Resona Bank (Akihabara)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:	31/07/2011	31/07/2010	31/07/2009	31/07/2008
Annual Sales	27,500	26,449	26,449	25,003
Recur. Profit
Net Profit	265	260	500	352
Total Assets			6,029	5,678
Current Assets			4,505	4,113
Current Liabs			2,176	2,105
Net Worth			2,646	2,247
Capital, Paid-Up		40	40	40
Div.P.Share(¥)		0.00	0.00	0.00
*<Analytical Data>*	(%)	(%)	(%)	(%)
S.Growth Rate	3.97	0.00	5.78	11.98
Current Ratio	..	..	207.03	195.39
N.Worth Ratio	..	..	43.89	39.57
R.Profit/Sales	..	..	..	..
N.Profit/Sales	0.96	0.98	1.89	1.41
Return On Equity	..	..	18.90	15.67

Notes: Financials are disclosed in digested form, and only partially for the 31/07/2010 fiscal term.

Forecast (or estimated) figures for the 31/07/2011 fiscal term

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.31
UK Pound	1	Rs.70.26
Euro	1	Rs.59.56

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.