MIRA INFORM REPORT

Report Date :

21.11.2012

IDENTIFICATION DETAILS

Name :	LOST ARROW INC

Registered Office :	1386-6 Suneori Tsurugashima Saitama-Pref 350-2213

Country :	Japan

Financials (as on) :	31.08.2012

Date of Incorporation :	September 1984

Com. Reg. No.:	0300-01-069217 (Saitama-Tsurugashima)

Legal Form :	Limited Company

Line of Business :	Import, wholesale, retail of sports outdoor goods & wear

No. of Employees :	35 employees

RATING & COMMENTS

MIRA’s Rating :

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 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Japan

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 tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. 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. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 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 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further 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 in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA

Company name

LOST ARROW INC

REGD NAME

KK Lost Arrow

MAIN OFFICE

1386-6 Suneori Tsurugashima Saitama-Pref 350-2213 JAPAN

Tel: 049-271-7111 Fax: 049-271-7112

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

E-Mail address: webmaster@lostarrow.co.jp

ACTIVITIES

Import, wholesale, retail of sports outdoor goods & wear

BRANCHES

Nil

OFFICERS

NAOE SAKASHITA, PRES

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 2,100 M

PAYMENTS No Complaints CAPITAL Yen 70 M

TREND UP WORTH Yen 1,960 M

STARTED 1984 EMPLOYES 35

COMMENT

TRADING FIRM SPECIALIZNG SPORTING GOODS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

HIGHLIGHTS

The subject company was established by T Sakashita in order to make most of his experience in the subject line of business. Naoe is his wife. This is a family-based trading firm specializing in import and wholesale of sporting goods & wear: climbing, mountaineering, winter sports, other. Goods are imported from USA, Europe, Asia, other. Goods are also sold online.

FINANCIAL INFORMATION

Financials are only partially disclosed as is the case with family-based companies.

The sales volume for Aug/2011 fiscal term amounted to Yen 2,100 million, a 24% up from Yen 1,700 million in the previous term. The net profit was posted at Yen 200 million, compared with Yen 120 million a year ago.

For the term that ended Aug 2012 the net profit was projected at Yen 210 million, on a 5% rise in turnover, to Yen 2,200 million. Final results are yet to be released.

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

REGISTRATION

Date Registered: Sept 1984

Regd No.: 0300-01-069217 (Saitama-Tsurugashima)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 5,600 shares

Issued: 1,400 shares

Sum: Yen 70 million

Major shareholders (%): Naoe Sakashita (95), Mutuko Sakashita (5)

No. of shareholders: 2

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

OPERATION

Activities: Imports, wholesales and retails sporting outdoor goods & wear for: climbing, winter-climbing, mountaineering, ski, other (--100%)

Clients: [Mfrs, wholesalers] ICI Ishii Sports, Kojitsu Co, Sakaiya Sports, Kamoshita Sports, other

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Black Diamond Inc, Beal France, Ospray, Smart Wool, Scarpa, Boreal, other.

Payment record: No Complaints

Location: Business area in Tsurugashima, Saitama-Pref. Office premises at the caption address are owned and maintained satisfactorily.

Bank References:

Saitama Resona Bank (Sakado)

Mizuho Bank (Kawagoe)

Relations: Satisfactory

FINANCES

(In Million Yen)

	31/08/2012	31/08/2011	31/08/2010	31/08/2009
Annual Sales	2,200	2,100	1,700	1,500
Recur. Profit
Net Profit	210	200	120	96
Total Assets		N/A	N/A	N/A
Net Worth		1,960	1,760	1,640
Capital, Paid-Up		70	70	70
Div.P.Share(¥)
*<Analytical Data>*	(%)	(%)	(%)	(%)
S.Growth Rate	4.76	23.53	13.33	7.14
Current Ratio		..	..	..
N.Worth Ratio		..	..	..
N.Profit/Sales	9.55	9.52	7.06	6.40

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/08/2012 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.91
UK Pound	1	Rs.87.38
Euro	1	Rs.70.24

INFORMATION DETAILS

Report Prepared by :

MNL

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.