MIRA INFORM REPORT

Report Date :

26.08.2014

IDENTIFICATION DETAILS

Name :	SI SOLAR CO LTD

Registered Office :	No.2 Koura Bldg 4F, 1-1-8 Nihombashi-Kayabacho Chuoku Tokyo 103-0025

Country :	Japan

Financials (as on) :	31.08.2013

Date of Incorporation :	August 2012

Com. Reg. No.:	0100-01-148739

Legal Form :	Limited Company

Line of Business :	Wholesale of solar systems.

No. of Employees	25

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 :	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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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 three 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. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. 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 2013 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 new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which is exceeding 230% 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 the year 2015. 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

SI SOLAR CO LTD

REGD NAME: KK SI Solar

MAIN OFFICE: No.2 Koura Bldg 4F, 1-1-8 Nihombashi-Kayabacho Chuoku Tokyo 103-0025

JAPAN

Tel: 03-5642-3733

URL: http://www.sisolar.jp

E-Mail address: (thru the URL)

ACTIVITIES

Wholesale of solar systems

BRANCHES

Okayama

OFFICERS

HIROAKI ISHIHARA, PRES Takeshi Yoda, ch

Ryuichiro Yao, rep dir Takayoshi Yamamoto, mgn dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 3,884 M

PAYMENTSSLOW BUT CORRECT CAPITAL Yen 50 M

TREND UP WORTH Yen 394 M

STARTED 2012 EMPLOYES 25

COMMENT

TRADING FIRM SPECIALIZING IN SOLAR SYSTEMS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

HIGHLIGHTS

The subject company was established on the basis of a division separated from Ishin Holdings Inc, housing franchiser, Okayama (See REGISTRATION). Hiroaki Ishihara is concurrently pres at the parent. This is a trading firm specializing in solar systems. Goods are traded well thru the parent channels.

FINANCIAL INFORMATION

The sales volume for the initial accounting term ended Aug/2013 fiscal term amounted to Yen 3,884 million, with recurring profit posted at Yen 615 million and the net profit at Yen 344 million. Sales fared well thru the parent to housing makers, individual houses, etc.

For the current term ending Aug 2014 the recurring profit is projected at Yen 670 million and the net profit at Yen 380 million, respectively, on a 9% rise in turnover, to Yen 4,250 million. Sales of solar systems are increasing.

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

REGISTRATION

Date Registered: Aug 2012

Regd No.: 0100-01-148739 (Tokyo-Chuoku)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 4,000 shares

Issued: 1,000 shares

Sum: Yen 50 million

Major shareholders (%): Ishin Holdings Inc* (70), Takeshi Yoda (30)

No. of shareholders: 2

*.. Ishin Holdings Inc, housing franchiser, Okayama, founded 1990, capital Yen 99,000 million, sales Yen 2,847 million, net profit Yen 252 million, employees 20, pres Hiroaki Ishihara, concurrently

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

OPERATION

Activities: Wholesales solar systems, attachments, other (--100%)

Clients: [Mfrs, wholesalers] Ishin Holdings Inc, World Brains, other

No. of accounts: 5 (Direct clients)

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] AU Optronics, SMA, Sun Power, World Brains, KK Nissei, Uehara Co, Itaya Metal Ind, other,

Payment record: Slow but correct

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

Bank References:

Chugoku Bank (Tsuyama-Kita)

MUFG (Okayama)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:	31/08/2014	31/08/2013
Annual Sales	4,250	3,884
Recur. Profit	630	615
Net Profit	380	344
Total Assets		1,481
Current Assets		1,474
Current Liabs		992
Net Worth		394
Capital, Paid-Up		50
Div.P.Share(¥)		0.00
*<Analytical Data>*	(%)	(%)
S.Growth Rate	9.42	- - -
Current Ratio	..	148.59
N.Worth Ratio	..	26.60
R.Profit/Sales	14.82	15.83
N.Profit/Sales	8.94	8.86
Return On Equity	..	87.31

Notes: The 31/08/2013 term is the initial accounting term from the inception.

Forecast (or estimated) figures for the 31/08/2014 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.42
UK Pound	1	Rs.100.11
Euro	1	Rs.79.74

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	NIS

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.