MIRA INFORM REPORT

Report Date :

08.12.2014

IDENTIFICATION DETAILS

Name :	KAWANO SHOJI CO., LTD.
Registered Office :	Flats Omotesando, 4-4-9, Jingumae, Shibuya-ku, Tokyo 150-0001
Country :	Japan
Date of Incorporation :	21.05.1985
Legal Form :	Private Limited Company
Line of Business :	Import and export of used clothing
No of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Japan	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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

KAWANO SHOJI CO., LTD.

OUTLINE

Country: Japan

Company name: KAWANO SHOJI CO., LTD.

Name in local language: KAWANO SHOJI, Y.K. (有限会社川野商事)

Office address: Flats Omotesando, 4-4-9, Jingumae, Shibuya-ku, Tokyo 150-0001

Office tel: Not registered

Business type: Trader

Industry: Used clothing

Established: May 21, 1985

Capital: Jp. 8,000,000 yen

Employees: n. a.

Corporate formation: Private

Corporation No.: 0110-02-002738 (Tokyo Legal Affairs Bureau)

MAJOR SHAREHOLDERS

Paid in capital : Jp. 8,000,000 yen

Number of authorized shares : 80 shares

Shares issued : 80 shares

Number of shareholder : n. a.

Either Mr. Teruaki Kawano, President, or Nippon Fiber Inc. holds majority(estimated).

DETAILED PRODUCT CLASSFICATION & ACTIVITY

Activity Product/Service Description

-------------------------------------------------------------------------------

Trading Used clothing

COMPANY MANAGEMENT

President Mr. Teruaki Kawano

Nationality: Japan

Director Ms. Kyoko Kawano

Nationality: Japan

Director Mr. Tatsuro Kawano

Nationality: Japan

Note: The names of director(s) and auditor(s) are phonetically spelt.

*Key Personnel*

Mr. Teruaki Kawano

President and representative director

Other responsibilities:

Owner and president of:

- Nippon Fiber Inc.

- Kawano Project Co., Ltd.

Home address: 51-1, Yanagawa, Mitsuhashi-machi, Yanagawa-shi, Fukuoka pref.

FINANCIAL DESCRIPTION

*Book Closing*

============

n. a.

*Financials*

==========

As a private limited company, no official financial statement is required to be disclosed publicly.

*Bank Details*

============

n. a.

*Credit Opinion*

=============

The subject is a member of Nippon Fiber Inc.(www.nippon-fi.co.jp), based in Fukuoka Prefecture, owned and managed by Mr. Teruaki Kawano, of which main business is as follows:

Address: 1489-1, Sanmaru, Okawa-shi, Fukuoka pref.

TEL: 0944-86-5771

FAX: 0944-86-5881

Business:

1. Recycle of clothing, fabrics, used newspaper, magazines, corrugated board

Operating four recycle plants in Yokohama(Kanagawa), Saitama, Ichihara(Chiba) and

Ibaraki(Osaka) prefectures.

2. Waste cloth for machine maintenance

3. Export of used clothing to Asian countries

4. Operating a shop, “Gallery Kawano” at the location of the subject.

5. Operating shops of used clothing under the name of “Furugiya Nishi-kaigan(or Used Clothing West Coast).” In Fukuoka, Oita, Kumamoto, Saga, Nagasaki, Yamaguchi, Okayama and Chiba prefectures

6. Manufacture and sales of felt for interior and civil engineering use

According to the website of Nippon Fiber, the total business size was JPY 2.1 billion including those of Kawano Shoji Co., Ltd.(the subject) and Kawano Project Co., Ltd. for August 31, 2011.

The number of employees is 210 including the group companies.

Judging from the above structure, the business of the subject itself appears to be conducted under the control of Nippon Fiber Inc.

Neither financial nor specific trade reference has been disclosed.

It would be advisable to research the core business of the group, Nippon Fiber Inc., and to enter into any business under well-secured conditions.

No recommendation for any open accounts at this moment.

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Products & Services*

======================

Import and export of used clothing

ORGANIZATION STRUCTURE

*Address*

=========

Registered address is the same as the operational address.

*Company History*

================

Date Development

-----------------------------------------------------------------------------------------------

May 21, 1985 Incorporated.

TRADE REFERENCES

*Suppliers*

==========

General corporations

Import for U.S.A. and Europe

*Customers*

==========

Export to Asian countries

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 61.85
UK Pound	1	Rs. 96.73
Euro	1	Rs. 76.53

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	DPT

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.