MIRA INFORM REPORT

Report Date :

26.12.2014

IDENTIFICATION DETAILS

Name :	G.K INTERNATIONAL, INC.
Registered Office :	Shin-horidome Bldg. 4F., 2-4-3, Nihonbashi-horidome-Cho, Chuo-Ku, Tokyo 103-0012
Country :	Japan
Date of Incorporation :	02.07.1988
Com. Reg. No.:	0100-01-046702
Legal Form :	Private Company
Line of Business :	Trader of Casual Wears
No. of Employees :	6

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$ 350,000
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

G.K INTERNATIONAL, INC.

OUTLINE

Country: Japan

Company name: G.K INTERNATIONAL, INC.

Name in local language: G.K INTERNATIONAL, K.K.

Office address: Shin-horidome Bldg. 4F., 2-4-3, Nihonbashi-horidome-cho, Chuo-ku,

Tokyo 103-0012

Office tel: 03-3662-8977

Business type: Trader

Industry: Casual wears

Established: July 2, 1988

Capital: Jp. 15,000,000 yen

Employees: 6

Corporate formation: Private

Corporation No.: 0100-01-046702 (Tokyo Legal Affairs Bureau)

MAJOR SHAREHOLDERS

Paid in capital : Jp. 15,000,000 yen

Number of authorized shares : 2,000 shares

Shares issued : 300 shares

Number of shareholder : 2

Name of shareholders Number of shares (%)

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Goko K.K. 244 shares (81.3)

Employees shareholders fund 56 shares (18.7)

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Total 300 shares (100.0)

DETAILED PRODUCT CLASSFICATION & ACTIVITY

Activity Product/Service Description

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

Trading Casual wears

Service Customs clearance agency

Service Import agency

COMPANY MANAGEMENT

President Mr. Yoshitsugu Matsui (President of Goko K.K.)

Nationality: Japan

Chairman Mr. Masahisa Moritani (Chairman of Goko K.K.)

Nationality: Japan

Director Mr. Tomohiko Yasuda

Nationality: Japan

Auditor Mr. Hiroitsu Murakami

Nationality: Japan

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

*Key Personnel*

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

Mr. Yoshitsugu Matsui

President and representative director

Born on February 26, 1953

Education: Graduated from Shiga University

Business career:

1975: Employed by then Kanematsu-Gosho Co., Ltd.(now Kanematsu Textile & Kanematsu Corp.)

Jul. 1985: Employed by the subject.

Nov. 2009: Representative director and president of the subject.

Other responsibility: Representative director and president of the parent, Goko K.K.

Home address: 5-31-16, Minami-oizumi, Nerima-ku, Tokyo 178-0064

FINANCIALS

Currency: (local currency - Jp. yen)

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

Year | Sales | Net Income

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

2009	4,270,741,000	73,112,000
2010	3,738,022,000	33,816,000
2011	3,986,600,000	39,787,000
2012	3,999,329,000	54,869,000
2013	3,906,517,000	24,488,000
2014	3,309,829,000	24,366,000

FINANCIAL DESCRIPTION

*Book Closing*

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

June 30th

*Financials*

==========

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

*Bank Details*

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

Bank Name : Mizuho Bank, Ltd.

Branch : Nihonbashi

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

Branch : Ohdenma-cho

*Credit Opinion*

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

The subject has been acting as a purchasing agent for the parent company, Goko K.K. since its establishment.

The summary of the parent is as follows:

Date of foundation: September 30, 1953

Capital paid-in: JPY 49,240,000

Number of employees: 34

Board members:

All the same as those of the subject except Mr. Tomohiko Yasuda as managing director

Main business: Import and wholesale of men’s and women’s casual wears, and shirts & blouses

The subject has been conducting its business activities under the control of trading section of the parent.

A steady performance has been maintained for years whereas the sales has been almost flat for recent years.

The subject can be regarded as the same business entity as that of the parent.

Negative factors are not observed in particular at present though a weaker currency may be unfavorable.

Our standard suggestion would be up to US$ 350,000 on terms of 90 days.

LOCAL BRANCHES & MANAGEMENT

Branch name: Osaka sales office

Branch address: Minami-senba, Chuo-ku, Osaka-shi, Osaka

Branch tel: 06-6252-9700

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One overseas office in Qingdao, China

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Products & Services*

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

Import and wholesale of casual wears

Customs clearance agency work

Import agency work

ORGANIZATION STRUCTURE

*Address*

=========

Registered address is the same as the operational address.

The quoted phone number cannot be specified.

*Company History*

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

Date Development

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

September 30, 1953 The parent company, Goko K.K. was incorporated as a wholesaler of

fabrics for shirting.

1967 Started dealing with knitted wears

July 2, 1988 The subject was incorporated at the following address:

15-10, Nihonbashi-kodenma-cho, Chuo-ku, Tokyo

June 16, 2014 Relocated to the current address together with the parent.

TRADE REFERENCES

*Suppliers*

==========

Overseas suppliers (specific names not disclosed)

*Customers*

==========

Goko K.K. (100%)

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

Company name: G. Trans, Inc.

Country: Japan

Status: Affiliate

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

Company name: Shanghai Goshin Co., Ltd.

Country: China

Status: Affiliate

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 :	RAS
Report Prepared by :	NIT

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.