MIRA INFORM REPORT
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Report Date : |
10th May 2006 |
IDENTIFICATION DETAILS
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Name : |
ASUKA ASSET MANAGEMENT
LTD |
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Registered Office : |
Road Town, British
Virgin Islands |
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Date of Incorporation : |
Feb 1999 |
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Legal Form : |
Limited
Company |
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Line of Business : |
Investment
advisory & discretionary asset management |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 72.9 MILLION |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME
ASUKA ASSET MANAGEMENT LTD
REGD NAME
Asuka Asset Management KK
REG OFFICE
Road Town, British Virgin Islands
OPERATING OFFICE
Landic Akasaka Bldg 8F, 2-3-4 Akasaka Minatoku
Tokyo 107-0052 JAPAN
Tel: 03-6229-9800
URLN/A
ACTIVITIES
Investment advisory & discretionary
asset management
Licensed: FSA No. 873, granted
13/08/1999
Financial
Reconstruction Commission: No. 31, granted 20/06/2000.
BRANCHES
Nil
OFFICER(S)
MAMORU TANIYA, PRES & CEO
Kazuho Toyoda, dir of Risk &
Research
Toshihiro Hirao, dir of operating
MANAGERS (of Investment)
Takao Shomura, mgr Yoshihiro Okuda, mgr
Haruhiko Ikebe, mgr Yuichi Washimori, mgr
Yosuke Mitsusada, mgr Takuya Hiroi, mgr
Shigeru Nishide, mgn Daisuke Kono, mgr
ANALYSTS
Two Directors (Taniya & Toyoda)
& above 6 staffs
ADVISORS
Two Directors (Taniya & Toyoda)
& above 6 staffs
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
1,094 M
PAYMENTS REGULAR CAPITAL US$1,34 million
TREND STEADY WORTH Yen 859 M
STARTED 2002 EMPLOYES 15
COMMENT
INVESTMENT ADVISORY FIRM. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR PROPER BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 72.9 MILLION,
NORMAL 30 DAYS TERMS.
HIGHLIGHTS
The subject company was
established jointly by Mamoru Taniya, Toshihiro Hirao and Kazuho Toyoda on the
basis of MBO arrangement from Tudor Capital Japan. The trios were from Salmon Brothers Japan, where they left in
1999 when the firm merged with Citigroup.
The subject started as investment advisory firm with Taniya as CEO,
Hirao as CIO and Toyoda as head of risk management. The three partners held 97% of the equity while Tudor Capital
holds 3%, at the start (for current shareholding % see REGISTRATION). Staffs & employees came most from Tudor
Capital Japan. The firm is
headquartered in British Virgin Islands and took about five months for regulatory
approval for BVI-domiciled management firm, longer than expected. Moreover, the partners had to deposit US$1
million to get their discretionary investment advisory license. Obtaining approval from the Japanese
regulatory authorities for foreign-based firms, though said eased, takes
normally several months. The subject
firm is a specialized investment advisory and discretionary asset management
firm, offering risk & return portfolio management, unlike the traditional
asset management, according to the firm as reported to the FSA. At the start, Asuka’s investors came from
overseas, partly because Japanese investors tend to be more conservative as the
risk & return concept was unfamiliar in Japan, but now the foreign make-up
of mostly institutional investors is down to about 70%, while the Japanese
component keeps expanding.
The revenues for Dec/2004 fiscal
term amounted to Yen 1,094 million, a 101% up from Yen 544 million in the
previous term. This is thanks to the
increased portfolio management and advisory services for Monex Capital Partners
Inc (see OPERATION). The net profit was
posted at Yen 318 million, compared with Yen 429 million the previous
term. The firm reported 5 investment advisory
contracts, of which 2 based on clients’ assets investment totaling Yen 158
million total assets. Also, 17
discretionary asset management contracts, 8 domestic & 9 overseas,
operating funds totaling Yen 78,121 million, reported to the FSA.
The financial situation is
considered FAIR and good for PROPER business engagements. Max credit limit is estimated at Yen 72.9
million theoretically only.
REGISTRATION
Date Registered: Feb 1999 (Japan Office Mar 1999)
Legal Status: Limited Company (Kabushiki Kaisha)
Paid-in Capital: US41,343,333
Capital brought into Japan: Yen 801
million initially.
Major shareholders (%): Mamoru
Taniya (36.0), Toshihiro Hirao (32.4), Kazuho Toyoda (21.6), Tudor Proprietary
Trading LLC (10)
No. of shareholders: 4
(Brief Biodata of executives, where
available)
Mamoru Taniya, Pres & CEO; graduate of Tokyo
University, faculty of law; (1987-1998) mfg dir of Salomon Smith Barneys
Securities, as head of proprietary trading division; (1999-2002) after leaving
Salomon, set up Tokyo Branch for Tudor Investment Corporation (Tudor Capital
Japan); (2002) founded the subject firm by amicable management buyout of Tudor
Capital Japan; DOB 30/12/1962.
Kazuho Toyoda, Dir of Risk & Research;
(1987-2002) Prop research & risk management at Salomon Smithy Barneys
Securities; 2002 founded the subject firm jointly with Taniya and Hirao; DOB
07/11/1955.
Toshihiro Hirai, Dir of operations; (1987-2002) co-heads
of Asian proprietary trading (1997) at Salomon Smithy Barneys Securities; 2002
founded the subject firm jointly with Taniya and Toyoda
Note: Private telephone numbers and any other
information other than these are not officially disclosed and unavailable.
Nothing detrimental is known as to the
commercial morality of executives.
OPERATION
Activities: Investment advisory and
discretionary asset management firm
(100%).
Funds being managed: Asuka
Japanese Equity Long/Short Fund, started Sept/2002; Asuka Opportunities Fund,
started Oct/2002, the balance of which operating funds exceeded Yen 60,000
million, reported to the FSA;
Also, investment advisory for
Monex Fund of Funds I, managed & operated by Monex Capital Partners I Inc,
fund size about Yen 1,500 million-2,000 million. The advisory contract became effective 01/12/2004.
Clients: Individual & institutional
investors
No. of accounts: Unavailable
Domestic areas of activities:
Nationwide
Suppliers: Securities firms, investors,
other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References
Local Bank (Unavailable)
Relations: Satisfactory
FINANCES
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(Non-Consolidated in million yen) |
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Terms
Ending: |
31/12/2004 |
31/12/2003 |
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INCOME
STATEMENT |
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Annual Sales |
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1,094 |
544 |
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Cost of Sales |
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GROSS PROFIT |
1,094 |
544 |
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Selling & Adm Costs |
435 |
328 |
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OPERATING PROFIT |
659 |
215 |
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Non-Operating P/L |
-2 |
0 |
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RECURRING PROFIT |
657 |
215 |
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NET PROFIT |
318 |
429 |
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BALANCE
SHEET |
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Cash |
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276 |
70 |
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Receivables |
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Inventory |
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Securities, Marketable |
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Other Current Assets |
317 |
470 |
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TOTAL CURRENT ASSETS |
593 |
540 |
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Property & Equipment |
13 |
18 |
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Intangibles |
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5 |
7 |
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Investments, Other Fixed Assets |
463 |
86 |
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TOTAL ASSETS |
1,074 |
651 |
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Payables |
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Short-Term Bank Loans |
0 |
34 |
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Other Current Liabs |
215 |
48 |
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TOTAL CURRENT LIABS |
215 |
82 |
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Debentures |
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Long-Term Bank Loans |
0 |
0 |
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Reserve for Retirement Allw |
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Other Debts |
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0 |
0 |
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TOTAL LIABILITIES |
215 |
82 |
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MINORITY INTERESTS |
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Common
stock |
773 |
801 |
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Additional
paid-in capital |
0 |
0 |
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Retained
earnings |
86 |
(232) |
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Evaluation
p/l on investments/securities |
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Others |
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0 |
(1) |
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Treasury
stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
859 |
568 |
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TOTAL EQUITIES |
1,074 |
651 |
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ANALYTICAL RATIOS Terms
ending: |
31/12/2004 |
31/12/2003 |
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Net
Worth (S/Holders' Equity) |
859 |
568 |
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Current
Ratio (%) |
275.81
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658.54
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Net
Worth Ratio (%) |
79.98 |
87.25 |
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Recurring
Profit Ratio (%) |
60.05 |
39.52 |
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Net
Profit Ratio (%) |
29.07 |
78.86 |
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Return
On Equity (%) |
37.02 |
75.53 |
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Notes: The above is the
financial statement required by the FSA in accordance with its rule and format,
which we obtained directly from the FSA, Kanto District.
RATING EXPLANATIONS
RATING
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STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |