MIRA INFORM REPORT

Report Date :

19.12.2014

IDENTIFICATION DETAILS

Name :	KYUSHU KIRONY CO., LTD.
Registered Office :	1-2-32, Higashi-naka, Hakata-ku, Fukuoka-shi
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	11.08.1984
Com. Reg. No.:	2900-01-012405
Legal Form :	Private
Line of Business :	Trader of Curtain, Curtain Rod & Interior Items.
No of Employees :	32

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

KYUSHU KIRONY CO., LTD.

OUTLINE

========

Country: Japan

Company name: KYUSHU KIRONY CO., LTD.

Name in local language: KYUSHU KIRONY K.K.

Office address: 1-2-32, Higashi-naka, Hakata-ku, Fukuoka-shi,

Fukuoka pref. 812-0892

Office tel: 092-471-1128

Office fax: 092-474-2102

Website: http://kyushukirony.co.jp

Business type: Trader

Industry: Curtain, curtain rod, interior items.

Established: August 11, 1984

Capital: Jp. 37,000,000 yen

Employees: 32

Corporate formation: Private

Corporation No.: 2900-01-012405 (Fukuoka Legal Affairs Bureau)

MAJOR SHAREHOLDERS

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

Paid in capital : Jp. 37,000,000 yen

Number of authorized shares : 800 shares

Shares issued : 740 shares

Number of shareholder : 4

Name of shareholders Number of shares (%)

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

Board members shareholders fund 430 shares(58.1)

Kirony Co., Ltd. 130 shares (17.6)

TOLI Corporation 90 shares (12.2)

Employees shareholders fund 90 shares (12.1)

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

Total 740 shares (100.0)

DETAILED PRODUCT CLASSFICATION & ACTIVITY

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

Activity Product/Service Description

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

Trading Curtain, blind & curtain rail

Trading Cloth, flooring materials etc.

Trading Carpet, cane-made interior etc.

COMPANY MANAGEMENT

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

President Mr. Ichiro Sakamoto

Nationality: Japan

Managing Director Mr. Masashi Matsunaga

Nationality: Japan

Director Mr. Shizuka Kuwazuru

Nationality: Japan

Director Mr. Matsutoshi Takeda

Nationality: Japan

Auditor Mr. Kenji Tokoshima

Nationality: Japan

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

*Key Personnel*

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

Mr. Ichiro Sakamoto

President and representative director

Born in November 1948 in Kagoshima pref.

Business career:

1970-1984: Worked at Doms Co., Ltd.

Aug. 1984: Employed by the subject.

May 2000: Representative director.

Home address: 4-23-6-701, Hara, Sawara-ku, Fukuoka-shi, Fukuoka pref.

FINANCIALS

===========

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2010	1,368,345,000	2,404,000
2011	1,387,112,000	loss 21,490,000
2012	1,389,490,000	loss 19,988,000
2013	1,484,218,000	1,725,000
2014	1,673,128,000	6,346,000

FINANCIAL DESCRIPTION

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

*Book Closing*

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

March 31st

*Financials*

==========

Balance Sheet
Unit: thousands of JP yen
	3/31/2012	3/31/2013	3/31/2014
Current assets	959,102	852,122	1,003,759
Cash & deposits	170,285	104,445	108,888
Account receivables	645,724	612,228	730,246

Inventories	118,761	112,971	134,406
Others	24,332	22,478	30,219
Fixed assets	128,444	127,944	127,023
Tangible assets	84,905	84,383	83,911
Intangible assets	1,234	1,234	1,234
Investments & others	42,305	42,327	41,878
Total Assets	1,087,548	980,066	1,130,782
Current liabilities	728,590	672,200	813,418
Account payables	608,485	587,756	696,378
Short term loans	112,000	73,000	102,000
Outstanding accounts	5,407	2,763	10,551
Outstanding taxes	547	5,653	547
Others	2,151	3,028	3,942
Fixed liabilities	296,936	244,119	247,272
Long term loans	296,936	244,119	247,272
Shareholders' equity	62,022	63,747	70,092
Paid up capital	37,000	37,000	37,000
Retained earnings	25,022	26,747	33,092
Total Liabilities & Net Assets	1,087,548	980,066	1,130,782
Income Statement
Unit : thousands of JP yen
	3/31/2012	3/31/2013	3/31/2014
Sales	1,389,490	1,484,218	1,673,128
Cost of goods sold	1,171,969	1,254,682	1,411,766
Gross profit(loss)	217,521	229,537	261,362
Sales/administrative expenses	207,986	218,147	224,398
Operating profit(loss)	9,535	11,389	36,964
Non operating income	503	2,751	480
Non operating expenses	9,511	8,961	8,964
Ordinary profit(loss)	527	5,179	28,480
Special profits	25,351	354	3,262
Special losses	45,319	3,262	24,849
Pretax profit	-19,441	2,272	6,893
Taxes & adjustment	547	547	547
Net profit	-19,988	1,725	6,346

*Bank Details*

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

Bank Name : Nishi-Nippon City Bank, Ltd.

Branch : Hakata Minami

Bank Name : Fukuoka Bank, Ltd.

Branch : Hie

Bank Name : Saga Bank, Ltd.

Branch : Naka

*Credit Opinion*

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

After suffering tough periods of 2011 and 2012 terms, the performance has been picking up so far.

TOLI Corp., one of the shareholders, has been enhancing its financial condition, carrying JPY 13,409 million of retained earnings as of September 30, 2014.

The current financial status is not so great, but negative factors are not observed in particular at present.

LOCAL BRANCHES & MANAGEMENT

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

Branch name: Kita-Kyushu branch

Branch address: Johno, Kokura-minami-ku, Kita-Kyushu-shi

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

Branch name: Kagoshima sales office

Branch address: Seiryo, Kagoshima-shi

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

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

*Main Products & Services*

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

Wholesale of the following items:

Imported items:

Curtain(Europe, India, China etc.)

Carpet(China, Pakistan, Iran, India, Belgium, Egypt etc.)

Cane interior(Indonesia)

Hot carpet(China, R.O.K. etc)

Wooden rail(China, Taiwan etc.)

Others(Australia, China etc.)

Domestic items:

Curtain

Carpet

Blind

Curtain rail

Partition/separator

Flooring materials

Wall materials

Other materials

Living items

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

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

Logistics center: Tanotus, Higashi-ku, Hakata-shi

ORGANIZATION STRUCTURE

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

*Address*

=========

Registered address is the same as the operational address.

*Company History*

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

Date Development

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

August 11, 1984 Incorporated, originally 100%-sponsored by Kirony Co., Ltd.(Tokyo)

with an investment of JPY 10 million.

April 1994 Merged Fukuoka sales office of Kirony Co., Ltd.

December 2000 Increased the capital to JPY 20 million.

April 1997 Increased the capital to JPY 23 million.

January 2001 TOLI Corp., a public listed corporation(#7971), became a shareholder.

March 2007 Increased the capital to JPY 33 million.

February 2008 Increased the capital to JPY 37 million.

TRADE REFERENCES

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

*Suppliers*

==========

Domestic:

Kirony Co., Ltd.

TOLI Corp.

Tachikawa Blind Co., Ltd.

Tohsoh Corp.

Sangetsu Co., Ltd.

Ririkara Ltd.

Nichibei Inc.

Tokiwa Sangyo Co., Ltd.

A.B.C. Shokai Co., Ltd.

Kawabe Shokai Co., Ltd.

Runon Ltd.

Toh-oh Trading Co., Ltd.

Imports from:

Turkey

Germany

France

Spain Belgium

China

Iran

Pakistan

Afghanistan

Egypt

India

Indonesia

R.O.K.

*Customers*

==========

Local interior shops

Local furniture shops

Local specialty stores

Local interior contractors

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

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

Company name: Kirony Curtain Service Co., Ltd.

Country: Japan

Status: Subsidiary

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

Company name: Nishi-Nippon Techno Co., Ltd.

Country: Japan

Status: Subsidiary

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.32
UK Pound	1	Rs.98.68
Euro	1	Rs.78.11

INFORMATION DETAILS

Analysis Done by :	KAR
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.