MIRA INFORM REPORT

Report Date :

24.12.2014

IDENTIFICATION DETAILS

Name :	FUHLEN COORDINATE LTD.
Registered Office :	1-33-10, Taito-Taito-ku, Tokyo
Country :	Japan
Date of Incorporation :	11.03.1991
Com. Reg. No.:	0105-02-019101 (Tokyo)
Legal Form :	Private Limited Company
Line of Business :	Engaged in Import and sales of Audio/Acoustic Equipment and Components, Furniture, Lighting Equipment and Devices, Interior Items & Daily use sundry items
No of Employees :	15

RATING & COMMENTS

MIRA’s Rating :

B

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

Maximum Credit Limit :	US$ 20,000
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

FUHLEN COORDINATE LTD.

Company OUTLINE

Company name: FUHLEN COORDINATE LTD.

Name in local language: FUHLEN COORDINATE, Y.K.

Office address: Miki Bldg. Main Wing 7F., 2-3-5, Ginza, Chuo-ku, Tokyo 104-0061

Country: Japan

Office tel: 03-3538-3570

Office fax: 03-3538-3571

Website: www.fuhlen.jp

Business type: Trader

Industry: Acoustic components, furniture, lighting devices, interior

Established: March 11, 1991

Capital: Jp. 6,100,000 yen

Employees: 15

Corporate formation: Private

Corporation No.: 0105-02-019101 (Tokyo Legal Affairs Bureau)

MAJOR SHAREHOLDERS

Paid in capital : Jp. 6,100,000 yen

Number of authorized shares : 122 shares

Shares issued : 122 shares

Number of shareholder : n. a.

Ms. Hiromi Tanaka, president, holds majority. (estimated)

DETAILED PRODUCT CLASSFICATION & ACTIVITY

Activity Product/Service Description

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

Trading Audio/acoustic equipment and components

Trading Furniture, lighting devices,

Trading Interior items and sundries

COMPANY MANAGEMENT

President Ms. Hiromi Tanaka

Nationality: Japan

Director Mr. Masanao Shimizu

Nationality: Japan

Director Mr. Hiroshi Kitamura

Nationality: Japan

Director Mr. Jiro Konno

Nationality: Japan

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

*Key Personnel*

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

Ms. Hiromi Tanaka

President and representative director

Business career:

April 22, 2003: Representative director and president of the subject.

Home address: 1-33-10-201, Taito, Taito-ku, Tokyo 110-0016

FINANCIALS

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2011	485,000,000	2,000,000
2012	380,119,000	4,029,000
2013	382,451,000	2,761,000
2014	462,136,000	4,827,000

FINANCIAL DESCRIPTION

*Book Closing*

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

May 31st

*Financials*

==========

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

*Bank Details*

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

Bank Name : Kosan Shinkin Bank

Branch : Akihabara

Bank Name : Asahi Shinkin Bank

Branch : Yushima

Bank Name : Mizuho Bank, Ltd.

Branch : Ueno

*Credit Opinion*

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

The subject is a Tokyo-based small-sized firm specializing in import and wholesale of audio/acoustic equipment and other products with 23-year business history.

Sales appears to be a bit small for the length of business history.

A certain net income has been posted every year for recent three years.

Although the exact financial condition is not available due to non-disclosure of its financial statements, there might be some amount of retained earnings.

Our standard suggestion would be up to US$ 20,000 on terms of 90 days.

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Products & Services*

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

Import and sales of the following products:

- Audio/acoustic equipment and components

- Furniture

- Lighting equipment and devices

- Interior items

- Daily use sundry items

Currently dealing with the following brand names:

- QUADRASPIRE(The Netherlands)

- PIEGA(Switzerland)

- OCTVAVE(Germany)

- NUFORCE(USA)

- NUPRiME(USA)

- TRIGON(Germany)

- BRODMANN(Austria)

- ANTHONY GALLO ACOUSTICS(USA)

- Audel(Italy)

- ALBEDO(Italy)

- Davone of Denmark(Denmark)

- Mark & Daniel(unknown)

- SOUND Mechanics(ditto)

- tabula rasa massivholzmoebel(Germany)

- Fuehlen(GermanY)

ORGANIZATION STRUCTURE

*Address*

=========

Registered address: 1-33-10, Taito-Taito-ku, Tokyo

(Residence of the president)

Operational head office: Miki Bldg. Main Wing 7F., 2-3-5, Ginza, Chuo-ku, Tokyo

(registered as a branch)

*Company History*

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

Date Development

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

March 11, 1991 Incorporated.

October 8, 2002 Relocated to the current address from the following:

1495 Matsudo, Matsudo-shi, Chiba pref.

TRADE REFERENCES

*Suppliers*

==========

Please refer to the above products list mentioned in the section of “Main Business.”

Major suppliers are:

- Octave (33%)

- NUFORCE (16%)

- PIEGA (13%)

*Customers*

==========

Kanjitsu Electric Co., Ltd. (22%)

Dynamic Audio Co., Ltd. (10%)

Abac Corp. (10%)

Tele-on Inc. (6%)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.45
UK Pound	1	Rs.98.88
Euro	1	Rs.77.62

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%)

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.