MIRA INFORM REPORT

Report Date :

15.01.2014

IDENTIFICATION DETAILS

Name :	AZ PLANNING CO LTD

Registered Office :	4-23-3 Yukawa-Shinmachi Minamiku Kokura Kitakyushu Fukuoka-Pref 800-0256

Country :	Japan

Financials (as on) :	31.01.2013

Date of Incorporation :	October, 2002

Com. Reg. No.:	2908-01-006394 (Kitakyushu-Kokuraminamiku)

Legal Form :	Limited Company (Kabushiki Kaisha)

Line of Business :	Import, wholesale of men’s casual wear and accessories

No. of Employees :	19

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Japan

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. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA

Company name & address

AZ PLANNING CO LTD

REGD NAME: KK Az Planning

MAIN OFFICE: 4-23-3 Yukawa-Shinmachi Minamiku Kokura Kitakyushu Fukuoka-Pref 800-0256

JAPAN

Tel: 093-951-8977

Fax: 093-951-8979

URL: http://www.zaza-g.com (Of the parent, KK Zaza Horaya)

E-Mail address: (thru the URL)

ACTIVITIES

Import, wholesale of men’s casual wear and accessories

BRANCHES

Nil

OFFICERS

HIROTO HORA, PRES

Tatsuya Itoh, s/mgn dir

Katsumi Oda, s/mgn dir

Yen Amount

In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 3,300 M

PAYMENTS SLOW BUT CORRECT CAPITAL Yen 10 M

TREND UP WORTH Yen 49 M

STARTED 2002 EMPLOYES 19

COMMENT

TRADING FIRM SPECIALIZING IN MEN’S CASUAL WEAR & ACCESSORIES.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

HIGHLIGHTS

The subject company was established on the basis of a trading division separated from KK Zaza Horaya (see REGISTRATION). Hiroto Hora is concurrently pres at the parent. This is a trading firm for import and wholesale of men’s casual wear and accessories Goods are mostly shipped to the parent, KK Zaza Horaya.

FINANCIAL INFORMATION

Financials are only partially disclosed.

The sales volume for Jan/2013 fiscal term amounted to Yen 3,300 million, a 10% up from Yen 3,000 million in the previous term. Demand from the parent rose as it opened 3 new stores during the term. The net profit was posted at Ye 15 million, compared with Yen 3 million a year ago.

For the current term ending Jan 2014 the net profit is projected at Yen 15 million, on a 3% rise in turnover，to Yen 3,400 million. Business is seen expanding steadily.

The financial situation is considered FAIR and good for ORDINARY business engagements.

REGISTRATION

Date Registered: Oct 2002

Regd No.: 2908-01-006394 (Kitakyushu-Kokuraminamiku)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 800 shares

Issued: 200 shares

Sum: Yen 10 million

Major shareholders (%): KK Zaza Horaya* (100)

*.. Retailer of men’s casual wear & accessories operating 70, at the caption address, funded 1986, capital Yen 30 million, sales Yen 3,400 million, net profit Yen 1 million, employees 70, pres Hiroto Hora concurrently

Nothing detrimental is known as to the commercial morality of executives.

OPERATION

Activities: Imports and wholesales men’s casual wear & accessories (--100%)

Clients: [Mfrs, wholesalers] KK Zaza Horaya, Z San, Goro, other

No. of accounts: 200

Domestic areas of activities: Centered in Fukuoka-Pref

Suppliers: [Mfrs, wholesalers] Levi Strauss Japan, Cross Plus, Takisada Nagoya, Yagihyo Co, other

Imports from China, other

Payment record: Slow but correct

Location: Business area in Kitakyushu. Office premises at the caption address are owned and maintained satisfactorily.

Bank References:

Resona Bank (Kitakyushu)

Howa Bank (Kitakyushu)

Relations: Satisfactory

FINANCES (In Million Yen)

Terms Ending:	31/01/2014	31/01/2013	31/01/2012	31/01/2011
Annual Sales	3,400	3,300	3,000	2,800
Recur. Profit	..	..	..	..
Net Profit	15	15	3	-15
Total Assets		N/A	N/A	N/A
Net Worth		49	34	31
Capital, Paid-Up		10	10	10
Div.P.Share(¥)		0.00	0.00	0.00
*<Analytical Data>*	(%)	(%)	(%)	(%)
S.Growth Rate	3.03	10.00	7.14	3.70
Current Ratio		..	..	..
N.Worth Ratio		..	..	..
N.Profit/Sales	0.44	0.45	0.10	-0.54

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/01/2014 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.52
UK Pound	1	Rs.101.48
Euro	1	Rs.84.11

INFORMATION DETAILS

Report Prepared by :

NNA

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.