MIRA INFORM REPORT

Report Date :

11.12.2014

IDENTIFICATION DETAILS

Name :	JAPAN ALLROUND MUSIC INC.
Registered Office :	37-10, Udagawa-cho, Shibuya-ku, Tokyo 150-0051
Country :	Japan
Financials (as on) :	31.10.2011
Date of Incorporation :	06.08.1981
Com. Reg. No.:	0110-01-011411
Legal Form :	Private
Line of Business :	Trader/Service Provider of Music Entertainment Related Business.
No of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

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	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

JAPAN ALLROUND MUSIC INC.

OUTLINE

========

Country: Japan

Company name: JAPAN ALLROUND MUSIC INC.

Name in local language: JAM, K.K.

Office address: 37-10, Udagawa-cho, Shibuya-ku, Tokyo 150-0051

Office tel: 03-6804-8711

Office fax: 03-6804-8651

Website: http://jamgroup.jp

Business type: Trader/Service

Industry: Music entertainment-related business

Established: August 6, 1981

Capital: Jp. 30,000,000 yen

Employees: N. A.

Corporate formation: Private

Corporation No.: 0110-01-011411 (Tokyo Legal Affairs Bureau)

MAJOR SHAREHOLDERS

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

Paid in capital : Jp. 30,000,000 yen

Number of authorized shares : 80,000 shares

Shares issued : 60 000 shares

Number of shareholder : n. a.

Mr. Hideki Nishikawa, President, holds majority. (estimated)

DETAILED PRODUCT CLASSFICATION & ACTIVITY

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

Activity Product/Service Description

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

Trading Event goods

Trading Brand products

Trading Licensed products

Trading Collectibles

Service Event planning and promotion

Service Artist management

Service License business

COMPANY MANAGEMENT

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

President Mr. Hideki Nishikawa

Nationality: Japan

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

*Key Personnel*

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

Mr. Hideki Nishikawa

President and representative director

Home address: 3-14-11, Hatagaya, Shibuya-ku, Tokyo

FINANCIALS

===========

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2011 n. a. loss 111,099,000

The above figure was only available in the public gazette.

FINANCIAL DESCRIPTION

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

*Book Closing*

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

October 31st

*Financials*

==========

Balance Sheet
Unit: thousands of JP yen
	10/31/2011
Current Assets	466,295
Fixed assets	86,845
Total Assets	553,140
Current liabilities	80,191
Fixed liabilities	516,488
Shareholders' equity	-43,539
Paid up capital	30,000
Capital reserves	9,040
Retained earnings	-82,579
Total Liabilities & Net Assets	553,140

*Bank Details*

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

Bank Name : Seibu Shinkin Bank

Branch : Shibuya

Bank Name : Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch : n. a.

*Credit Opinion*

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

The subject is a Tokyo-based firm specializing in music entertainment-related business.

The website shows nothing important.

In February 2012, the subject announced to merge another firm, P.G.S. Inc., headed by Mr. Hideki Nishikawa, located at the same address as that of the subject.

P.G.S. Inc. carried JPY 16 million of capital loss as of March 31, 2012, and the subject carried JPY 43.5 million of capital loss as of October 31, 2011 when the subject posted JPY 111 million of net loss for Oct. 2011 term.

Besides the above financial information, neither sales nor net income data has been disclosed.

It would be advisable to enter into any business under well-secured conditions.

No recommendation for any open accounts at this time.

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

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

*Main Products & Services*

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

The subject says it is conducting the following music entertainment-related business:

Operating event shop of hit artists

Planning and promotion of event

Trading brand products

Licensing business

Trading of collectibles

ORGANIZATION STRUCTURE

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

*Address*

=========

Registered address: 4-11-8, Sendagaya, Shibuya-ku, Tokyo 151-0051

Operational address: 37-10, Udagawa-cho, Shibuya-ku, Tokyo 150-0051

*Company History*

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

Date Development

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

Aug. 6, 1981: Established Japan Allround Music Inc.

1982: Opened The Beatles shop ”GET BACK”. (Dec. 8th, the anniversary of John

Lennon’s death)

1985: Opened Elvis Presley shop ”LOVE ME TENDER”. (Jan. 28th, Elvis Presley’s

birthday)

1986: Opened The Rolling Stones shop ”GIMME SHELTER”.

1988: Launched music merchandise wholesale business.

1989: Started Asia’s largest music merchandising convention ”ROCK’N'ROLL

BAZAAR”.

1993: Opened General artist’s shop ”ROCK’N'ROLL MUSEUM”.

Jul. 18 1994: Relocated to the current address.

1999: Opened PGS Inc. (Player’s Goods Server) E-Commerce site to promote and sell

Independent Artist’s goods.

2003: Established REVOLUTION Inc. Production of original design merchandise

under the 60HMR brand,as well as licensed merchandise including “The

Beatles”, “The Rolling Stones”, “KISS”, “Elvis Presley”, “Oasis” etc.

2004: Opened UK Office, ”ROCK’N'ROLL MUSEUM LONDON” and ”ROCK’N'ROLL

MUSEUM LEEDS”.

2005: Opened Music+Culture item shop ”MUSICULTURE”.

2006: Opened US branch Office as ”LOVE ME TENDER USA”.

2008: Launched Drop shipping business ”JAM SHOPPING”.

2009: Turned ”GET BACK”, ”LOVE ME TENDER” and ”GIMME SHELTER” into

E-commerce store.

Nov. 13, 2014 The subject was renamed as “JAM Inc.” from “Japan All-round Music Inc.”

English name has remained unchanged in the website.

TRADE REFERENCES

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

*Suppliers*

==========

Overseas:

The subject says it has been sourcing from nearly 400 suppliers including the followings:

Amplified Inc.

C&D Corp.

Courts And Hackett Inc.

Firebrand Inc.

Global Merchandising Services Inc.

Impact Merchandising Inc.

Luminous Media Limited

Pyramid Posters Ltd.

Rolling Stone Collection Inc.

Worn Free Inc.

Zion Corp.

Domestic:

Shinko Music Entertainment Co., Ltd.

Japan Cable Television Inc.(CNNj)

*Customers*

==========

General public

General corporations

Tower Record Inc.

HMV Japan Corp.

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

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

Company name: JAM Shopping Inc.

Country: Japan

Status: Affiliate

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.95
UK Pound	1	Rs.97.16
Euro	1	Rs.76.75

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

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.