MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	JAPAN MUSTARDSEED CORPORATION
Registered Office :	5-23-4-203, Omori-nishi, Ota-ku, Tokyo
Country :	Japan
Date of Incorporation :	07.03.1992
Com. Reg. No.:	0108-01-015066 (Tokyo)
Legal Form :	Private Limited Company
Line of Business :	Importer and wholesaler of CPU, Hard Disk Drives, Computer cases as well as AT compatible computers (DOS/V components) and peripherals.
No of Employees :	56

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 :	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 – 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 MUSTARDSEED CORPORATION

company OUTLINE

Company name: JAPAN MUSTARDSEED CORPORATION

Name in local language: MUSTARDSEED K.K.

Office address: Theodore Bldg., 3-13-4, Minami-ohi, Shinagawa-ku, Tokyo140-0013

Country: Japan

Office tel: 03-3768-1466

Website: www.mustardseed.co.jp

Business type: Trader

Industry: Personal computer peripherals.

Established: March 7, 1992

Capital: Jp. 80,000,000 yen

Employees: 56

Corporate formation: Private

Corporation No.: 0108-01-015066 (Tokyo Legal Affairs Bureau)

MAJOR SHAREHOLDERS

Paid in capital : Jp. 80,000,000 yen

Number of authorized shares : 1,600 shares

Shares issued : 1,600 shares

Number of shareholder : 2

Name of shareholders Number of shares (%)

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

Mr. Hiroshi Miyata 1,280 shares (80.0)

Ms. Satomi Miyata 320 shares (20.0)

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

Total 1,600 shares (100.0)

DETAILED PRODUCT CLASSFICATION & ACTIVITY

Activity Product/Service Description

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

Trading Personal computer peripherals

Trading Computer parts

COMPANY MANAGEMENT

President Mr. Hiroshi Miyata

Nationality: Japan

Director Mr. Yasunori Kosakai

Nationality: Japan

Director Ms. Anna Saito

Nationality: Japan

Auditor Mr. Minoru Saito

Nationality: Japan

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

*Key Personnel*

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

Mr. Hiroshi Miyata

President and representative director

Born on November 12, 1949

Home address: 5-23-4-203, Omori-nishi, Ota-ku, Tokyo

FINANCIALS

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2007	4,707,284,000	20,060,000
2008	4,428,197,000	15,660,000
2009	4,773,409,000	16,643,000
2010	5,216,679,000	15,102,000
2011	5,198,601,000	9,073,000
2012	4,666,571,000	5,078,000

FINANCIAL DESCRIPTION

*Book Closing*

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

December 31st

*Financials*

==========

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

*Bank Details*

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

Mizuho Bank Shiba Branch

Sumitomo Mitsui Banking Kamata Branch

Resona Bank Ikebukuro Branch

Resona Bank Omori Branch

Tokyo Tomin Bank Omori Branch

Bank of Tokyo-Mitsubishi UFJ Omori Branch

Shoko Chukin Bank Omori Branch

*Credit Opinion*

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

The subject is a Tokyo-based firm specializing in import and wholesale of PC peripherals and other items with 22-year business history.

Although the sales has been declining since Dec. 2010 term, the subject has kept a certain level of net income constantly for at least eight years since Dec. 2006 term.

There would be a certain amount of retained earnings thought the exact financial condition is not available due to non-disclosure of its financial statements.

Negative factors are not observed in particular at present except for a weaker currency.

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Products & Services*

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

Import and wholesale of the following products:

- CPU

- Hard Disk Drives

- Computer cases

- AT compatible computers (DOS/V components) and peripherals.

ORGANIZATION STRUCTURE

*Address*

=========

Registered address: 5-23-4-203, Omori-nishi, Ota-ku, Tokyo

(The residence of the business owner)

Operational head office: Theodore Bldg., 3-13-4, Minami-ohi, Shinagawa-ku, Tokyo 140-0013

Company History

Date Development

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

March 7, 1992: Japan Mustardseed corporation is established by the capital 10 million yen.

Began export Only 100% Hard disk drives.

1993: Began import 17inch monitors taking the opportunity of having exceeded

With the Microsoft Corporation starting development the Windows OS

Japanese version, business began mainly of shop in Akihabara.

1994: Mainly, computer cases, Hard disk drives, video cards, 15inch, 17inch monitors

and other peripherals import and sell to mainly of shop in Akihabara.

10inch monitors import and sell.

1995: Developed the Japanese market of CINERAMA BRAND MPEG CARD, for

distribution businesses.

In addition, became a Japanese sole agency of ASTAR MOTHER BOARD

(EPoX).

April, 1996: Capital increased to 20 million yen.

Became a Japanese sole agency of MODEM(ACEEX) and LAN

products(SURECOME).

1997: With the introduction of new products, aimed at dealing major distributors.

As part of its medium-term strategy, planned to establish of CI(Corporate

Identity) and to build a headquarters building.

April, 1998: Capital increased to 30 million yen.

October, 1998: Headquarters building is completed at Minami-ohi, Shinagawa-ku, Tokyo.

1999: Became a distributor of Japan elite group(ECS).

April, 2000: Capital increased to 40 million yen.

April, 2001: Capital increased to 50 million yen.

2002: Became a distributor of BenQ Japan.

2003: Became a domestic regular dealer of GIGABYTE.

2004: Started real estate division.

Became an authorized distributor of Shuttle.

Became an authorized distributor of SilverStone.

July 2005 Relocated the registered head office to the current address from the following:

3-13-4, Minami-ohi, Shinagawa-ku, Tokyo.

2006: Became an authorized distributor of GIGABYTE.

Became an authorized distributor of NOVAX(UMAX).

Became an authorized distributor of KME.

Became an authorized distributor of SOFT TRADING(Gaming goods).

July, 2006: Capital increased to 70 million yen.

2007: Opened Support Center.

December, 2009: Became an authorized distributor of Antec.

March, 2010: Became an authorized distributor of ADATA.

July, 2010: Became an authorized distributor of ASRock.

March, 2011: Became an authorized distributor of GIADA(JEHE).

April, 2011: Became an authorized distributor of RAIDON.

June, 2011: Capital increased to 80 million yen.

October, 2011: Became an authorized distributor of AVTECH Corporation.

July, 2012: Became an authorized distributor of VTX3D.

TRADE REFERENCES

*Suppliers*

==========

Import from the following countries:

- Singapore

- USA

- Taiwan

As for specific suppliers please refer to the above in the company history section.

*Customers*

==========

Yamada Denki Co., Ltd.

Bic Camera Co., Ltd.

Edion Inc.

Third Wave Inc.

PC Depot Corporation

Yodobashi Camera Co., Ltd.

Cycom Inc.

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

Company name: Ace Plus Inc.

Country: Japan

Status: Subsidiary

Company name: Mustard Giga Corp.

Country: Japan

Status: Subsidiary

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.65
UK Pound	1	Rs.98.53
Euro	1	Rs.78.02

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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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.