MIRA INFORM REPORT

Report No. :	315786
Report Date :	17.04.2015

IDENTIFICATION DETAILS

Name :	NETYEAR GROUP CORPORATION
Registered Office :	Tokyu Ginza 2 Chome Bldg, 2-15-2 Ginza Chuo-Ku
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	July, 1999
Legal Form :	Not Available
Line of Business :	Consulting on digital marketing, planning, production of digital content, systems development, planning and sales of marketing tools, planning and sales of cloud-based office tools.
No. of Employee :	159

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	Mm Yen 214.6
Status :	Satisfactory
Payment Behaviour :	No complaints
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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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 and address

	ENGLISH COMPANY NAME	NETYEAR GROUP CORPORATION
	Japanese company name	Netyear Group KK
	Registered Office
	1. Street Number and District	Tokyu Ginza 2 Chome Bldg, 2-15-2 Ginza Chuo-Ku
	2. City and Perefecture	Tokyo
	3. ZIP Code	104-0061
	4. Country	JAPAN
		*Registration address is 2-17-22 Akasaka Minato-ku, Tokyo
	TEL	03-6369-0500
	FAX	03-6369-0501
	URL	www. netyear.net/
	Email Address	info@netyear.net
	Activities (Services & Products)	Consulting on digital marketing, planning, production of digital content, systems development, planning and sales of marketing tools, planning and sales of cloud-based office tools.
SUMMARY OF REPORT
	Annual Sales (MM YEN)	5,352
	Capital Amount (MM YEN)	540
	Net Worth (MM YEN)	1,909
	FINANCES	FAIR
	TREND	UP
	EMPLOYEES	159
	CREDIT LIMIT PROPOSED(MM YEN)	214.6
	OTHER INFORMATION FOLLOWS:
	Year Started	1999
	Month and Year Registered	July, 1999
	Regd No.	0104-01-094866
	Major Shareholders
	1	Tis(31.09)
	2	Fujiyo Ishiguro(16.64)
	3	Salesforce Com Inc(3.10)
	Number of Shareholders	7,074
	Authorized Shares	184,34,200
	Issued Shares	68,53,800
	Executives
	PRESIDENT	FUJIYO ISHIGURO
	Director	Hirohiko Sasaki
	Director	Yoshio Shinozuka
	Director	Noriyuki Ikeda
	Main Banks
	1	MUFG(Omotesando)
	2	MIZUHO BANK(Ikebukuro)
	Relations	Satisfactory
	Clients
	1	Kddi
	2	Jaccs
	3	Starbucks Coffee Japan
	4	Ntt Communications
	5	Others
	Suppliers
	1	Spot Purchase
	2	Emerging Industry for System, Software
	3	Others
	Branches
	1	None
	Factories
	1	None
	Overseas
	1	None
	HIGHLIGHT and COMMENT	The Net Year Knowledge Capital Partners Co Ltd was established by US Netyear Group, as a subsidiary company. Its name changed to "Netyear Group Co" in 2000. Then it became an affiliate of "Sorun Co" perform transfer of shares and reduced capital increase in July 2003. It has being listed in Tokyo Stock Exchange and on the Mothers in 2011. Sorun became an equity method affliate of its corporation.
	FINANCIAL information	Financials fully disclosed
		The sales volume for Mar/2014 fiscal term amounted to Yen 5,352 million, a 23% up from Yen 4,355 million in the previous term. The recurring profit was posted at Yen 191 million and the net profit at Yen 59 million, respectively, compared with Yen 144 million recurring profit and Yen 90 million net profit, respectively, a year ago. For the term that ended Mar 2015 the recurring profit was projected at Yen 400 million and the net profit at Yen 30 million, respectively, on a 29% rise in turnover, to Yen 6,900 million. Final results are yet to be released. The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 214.6 million, on 30 days normal terms.
	PLEASE ATTACH THE FINANCIALS BELOW.
	Note: Forecast (or estimated) figures for the 31/03/2015 fiscal term
	Terms Ending	Annual Sales*	R.Profit*	N.Profit*	S.Growth	Net Worth*
	31/03/2011	3,492	54	-117	(%)	1,711
	31/03/2012	4,022	103	64	15.20	1,775
	31/03/2013	4,355	144	90	8.26	1,845
	31/03/2014	5,352	191	59	22.91	1,909
	31/03/2015	6,900	400	30	28.92	1,939
*..Unit: Million Yen
	FINANCES: (Consolidated in million yen)
			Terms Ending:	31/03/2014	31/03/2013
	INCOME STATEMENT
		Annual Sales		5,352	4,355
		Cost of Sales		4,240	3,421
		GROSS PROFIT		1,112	933
		Selling & Adm Costs		923	791
		OPERATING PROFIT		189	142
		Non-Operating P/L		2	2
		RECURRING PROFIT		191	144
		NET PROFIT		59	90
	BALANCE SHEET
		Cash		1,032	1,051
		Receivables		1,201	1,020
		Inventory
		Securities, Marketable
		Other Current Assets		263	155
		TOTAL CURRENT ASSETS		2,496	2,226
		Property & Equipment		100	36
		Intangibles		362	25
		Investments, Other Fixed Assets		185	169
		TOTAL ASSETS		3,143	2,455
		Payables		272	233
		Short-Term Bank Loans		127	13
		Other Current Liabs		558	364
		TOTAL CURRENT LIABS		958	610
		Debentures
		Long-Term Bank Loans		266
		Reserve for Retirement Allw
		Other Debts		10	0
		TOTAL LIABILITIES		1,234	610
		MINORITY INTERESTS
		Common stock		540	528
		Additional paid-in capital		621	609
		Retained earnings		738	700
		Evaluation p/l on investments/securities
		Others		10	7
		Treasury stock, at cost		0	0
		TOTAL S/HOLDERS` EQUITY		1,909	1,845
		TOTAL EQUITIES		3,143	2,455
	CONSOLIDATED CASH FLOWS
			Terms ending:	31/03/2014	31/03/2013
		Cash Flows from Operating Activities		82	266
		Cash Flows from Investment Activities		-408	-16
		Cash Flows from Financing Activities		306	-62
		Cash, Bank Deposits at the Term End		1,032	1,051
	ANALYTICAL RATIOS Terms ending:			31/03/2014	31/03/2013
			Net Worth (S/Holders' Equity)	1,909	1,845
			Current Ratio (%)	260.63	364.77
			Net Worth Ratio (%)	60.74	75.14
			Recurring Profit Ratio (%)	3.57	3.30
			Net Profit Ratio (%)	1.10	2.06
			Return On Equity (%)	3.10	4.87

FINANCES (Consolidated in million yen)
			Terms Ending:	31/03/2014		31/03/2013	IND/03/2014
INCOME STATEMENT
	Annual Sales			5,352		4,355
	Cost of Sales			4,240		3,421
	GROSS PROFIT			1,112		933	0
	Selling & Adm Costs			923		791
	OPERATING PROFIT			189		142	0
	Non-Operating P/L			2		2
	RECURRING PROFIT			191		144	0
	NET PROFIT			59		90
BALANCE SHEET
	Cash			1,032		1,051
	Receivables			1,201		1,020
	Inventory
	Securities, Marketable
	Other Current Assets			263		155	0
	TOTAL CURRENT ASSETS			2,496		2,226
	Property & Equipment			100		36
	Intangibles			362		25
	Investments, Other Fixed Assets			185		169	0
	TOTAL ASSETS			3,143		2,455
	Payables			272		233
	Short-Term Bank Loans			127		13
	Other Current Liabs			558		364	0
	TOTAL CURRENT LIABS			958		610
	Debentures
	Long-Term Bank Loans			266
	Reserve for Retirement Allw
	Other Debts			10		0	0
	TOTAL LIABILITIES			1,234		610
	MINORITY INTERESTS						..
	Common stock			540		528
	Additional paid-in capital			621		609
	Retained earnings			738		700
	Evaluation p/l on investments/securities
	Others			10		7	0
	Treasury stock, at cost			0		0
	TOTAL S/HOLDERS` EQUITY			1,909		1,845
	TOTAL EQUITIES			3,143		2,455	0
CONSOLIDATED CASH FLOWS
			Terms ending:	31/03/2014		31/03/2013	31/03/2012
	Cash Flows from Operating Activities			82		266
	Cash Flows from Investment Activities			-408		-16
	Cash Flows from Financing Activities			306		-62
	Cash, Bank Deposits at the Term End			1,032		1,051
ANALYTICAL RATIOS Terms ending:				31/03/2014		31/03/2013	IND/03/2014
		Net Worth (S/Holders' Equity)		1,909		1,845	0
		Current Ratio (%)		260.63		364.77	#DIV/0!
		Net Worth Ratio (%)		60.74		75.14	#DIV/0!
		Recurring Profit Ratio (%)		3.57		3.30	#DIV/0!
		Net Profit Ratio (%)		1.10		2.06	#DIV/0!
		Return On Equity (%)		3.10		4.87	#DIV/0!
Notes: Audited by CPA. IND/xx/yyyy.. Non-consolidated figures for (xx month)/(yyyy year) term.
			Current Sales		5,352
			Credit Limit		214.6

Netyear Group #315786
Business	Terms Ending	Annual Sales*	R.Profit*	N.Profit*	S.Growth	Net Worth*
Results:	31/03/2011	3,492	54	-117	(%)	1,711
(Consolidated)	31/03/2012	4,022	103	64	15.20	1,775
	31/03/2013	4,355	144	90	8.26	1,845
	31/03/2014	5,352	191	59	22.91	1,909
	31/03/2015	6,900	400	30	28.92	1,939
	Forecast (or estimated) figures for 2015 term.				*..Unit: Million Yen

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.37
UK Pound	1	Rs.92.44
Euro	1	Rs.66.56

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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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