MIRA
INFORM REPORT
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Report Date : |
26th
May 2006 |
IDENTIFICATION
DETAILS
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Name : |
AIC,
INC. |
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Registered Office : |
Shinkawa East 3-6F, 1-23-5 Shinkawa Chuoku Tokyo
104-0033 Japan |
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Country : |
Japan |
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Financials (as on) : |
28/02/2005 |
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Date of Incorporation : |
Jan 1979 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, wholesale of apparel,
foodstuffs, household goods |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 2,033.6 MILLION |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
NAME
AIC INC
REGD NAME
Aiku KK
(as pronounced in Japanese)
MAIN OFFICE
Shinkawa
East 3-6F, 1-23-5 Shinkawa Chuoku Tokyo 104-0033 JAPAN
Tel:
03-5541-2060
Fax:
03-5541-2140
E-Mail address: webmaster@aicincjp.com
ACTIVITIES
Import, wholesale of apparel, foodstuffs, household goods
BRANCHES
Beijing, Shanghai, Hong Kong, Qingdao, Dongguan (--China), Bangkok
(-- purchasing offices)
OFFICER(S)
Korehide Arai, ch TAKASHI
HAMABE, PRES
Masayuki Yamamoto, dir Masato
Sekino, dir
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
148,707 M
PAYMENTS REGULAR CAPITAL Yen
230 M
TREND STEADY WORTH Yen 4,410 M
STARTED 1979 EMPLOYES 243
COMMENT
TRADING HOUSE FOR IMPORTING APPAREL, FOODS, ETC, JOINTLY OWNED BY
AEON CO & IZUMIYA CO. FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 2,033.6 MILLION, NORMAL 30 DAYS TERMS.
Forecast (or estimated) for the 28/02/2006 fiscal term.
HIGHLIGHTS
The subject company was established jointly by Aeon Co Ltd, Chiba,
and Izumiya Co Ltd, Osaka, two leading supermarket chain operators (see
REGISTRATION), as a trading house for importing apparel, foodstuffs, household
goods, etc, handled by the two parents’ stores. The joint founding was aimed to rationalize buying costs by joint
imports and purchase. Operates 6 subsidiaries
in China centrally, and Bangkok.
Handling items are apparel, foodstuffs, household goods, other (see
OPERATION). Originally developed goods
are branded as “AIC” and also jointly branded “World Eye”. Import sources are mainly China, Hong Kong,
Thailand, India; and also from Europe, USA, Oceania, etc (particularly for
European-style apparel). Goods are
essentially and exclusively shipped to the two parents. .
The sales volume for Feb/2005 fiscal term amounted to Yen 148,707
million, an 11% up from Yen 133,396 million in the previous term. This is attributed to robust demand from two
parents thanks to the expansion of the number of stores. The recurring profit, however, decreased to
Yen 101 million from Yen 546 million, and the net profit to Yen 16 million from
Yen 286 million, respectively, compared with the previous term. The major factor for the deterioration has
not been disclosed, but the firm registered Yen 94 million in extraordinary
losses for the term. The profit deterioration
is also referred to the rising overhead costs which rose by about 7% from the
previous term.
For the term ended Feb/2006 the recurring profit is believed
posted at Yen 110 million and the net profit at Yen 200 million, respectively,
on a 4.9% rise in turnover, to Yen 160,000 million. Imports remained steady in line with the two parents’ expanded
operations. Imports from China are seen
increased.
The financial situation is considered FAIR to GOOD and responsible
for ORDINARY business engagements. Max
credit limit is estimated at Yen 2,033.6 million, on normal 30 days terms.
REGISTRATION
Date Registered: Jan
1979
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 438,000 shares
Issued: 438,000 shares
Sum: Yen 230 million
Major shareholders (%): Aeon Co Ltd*(66.7), Izumiya Co Ltd**(33.3)
No. of shareholders: 2
*.. Top ranked operator of general merchandise stores, Chiba,
founded 1926, listed Tokyo S/E, capital Yen 101,798 million, turnover Yen
4,195,843 million, recurring profit Yen 156,099 million, net profit Yen 62,066
million, total assets Yen 2,887,269 million, net worth Yen 612,837 million, employees
52,597, pres Motoya Okada
**.. Mid-size supermarket chain operator centering in the
greater-Osaka region, Osaka, founded 1952, listed Tokyo, Osaka S/E’s, capital
Yen 39,066 million, turnover Yen 365,014 million, recurring profit Yen 4,322
million, net profit Yen 1,839 million, total assets Yen 257,696 million, net
worth Yen 104,032 million, employees 3,834, pres Norio Hayashi
Nothing detrimental is known as to the commercial morality of
executives.
OPERATION
Activities: This is a trading house for import and supply
exclusively to Aeon Co Ltd and Izumiya Co Ltd, the two parents, (Breakdown of
sales by divisions):
Apparel (55%): formal wears/suits for men & women, sweaters, polo shirts,
sports wears, pullovers, jeans, trousers, slacks, skirts, blouse, underwear,
night gowns, pajamas, shoes, hosieries, gloves, hats & caps, other;
Foodstuffs (25%): mushrooms, cabbages, broccoli, onions, pumpkins, asparagus, bamboo
shoots, chestnuts, cherries, oranges, cut flowers, beef, chicken, livestock
products (processed), shrimps & prawns, tune, cuttlefish, salmon, jam,
butter, canned tomato, canned fruits, soft drinks, confectionery, chilled
vegetables, cheese, pickles, other:
Household items (20%): curtains, rugs & carpets, beds, beddings, bedclothes, wooden
furniture, cabinets, tableware (stainless/aluminum/china), chinaware,
glassware, stationery, toys, sportswear, outdoor utensils, bicycles,
toiletries, cosmetics, accessories, pet foods, other.
Goods are imported from China, Hong Kong, Taiwan, Thailand,
Europe, USA, etc, and shipped exclusively to the two parents, Aeon Co Ltd and
Izumiya Co Ltd.
Clients: [Supermarket chain operators] Shipped exclusively to the
two parents, Aeon Co Ltd and Izumiya Co Ltd.
No. of accounts: 2
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Imports from China, Hong Kong,
Thailand, India, Korea, USA, Canada, Brazil, Chile, UK, Italy, Australia, New
Zealand, other.
Payment record: Regular
Location: Business area in Tokyo.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
Bank of Tokyo-Mitsubishi UFJ (H/O)
Mizuho Corporate Bank (Uchisaiwaicho)
Relations: Satisfactory
FINANCES
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(in million yen) |
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Terms Ending: |
28/02/2005 |
28/02/2004 |
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INCOME STATEMENT |
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Annual
Sales |
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148,707 |
133,396 |
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Cost of
Sales |
145,395 |
129,848 |
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GROSS PROFIT |
3,311 |
3,548 |
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Selling
& Adm Costs |
3,213 |
2,996 |
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OPERATING PROFIT |
98 |
551 |
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Non-Operating P/L |
-3 |
-5 |
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RECURRING PROFIT |
101 |
546 |
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NET
PROFIT |
16 |
286 |
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BALANCE SHEET |
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Cash |
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333 |
521 |
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Receivables |
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22,553 |
22,103 |
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Inventory |
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1,724 |
1,656 |
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Securities, Marketable |
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Other
Current Assets |
1,052 |
677 |
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TOTAL
CURRENT ASSETS |
25,662 |
24,957 |
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Property
& Equipment |
63 |
70 |
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Intangibles |
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169 |
61 |
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Investments, Other Fixed Assets |
381 |
363 |
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TOTAL ASSETS |
26,275 |
25,451 |
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Payables |
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16,467 |
14,633 |
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Short-Term Bank Loans |
3,800 |
3,000 |
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Other
Current Liabs |
1,597 |
3,393 |
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TOTAL CURRENT LIABS |
21,864 |
21,026 |
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Debentures |
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Long-Term Bank Loans |
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2,000 |
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Reserve
for Retirement Allw |
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Other
Debts |
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0 |
(2,000) |
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TOTAL LIABILITIES |
21,864 |
21,026 |
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MINORITY
INTERESTS |
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Common stock |
230 |
230 |
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Additional paid-in capital |
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Retained earnings |
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Evaluation p/l on investments/securities |
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Others |
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4,180 |
4,194 |
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Treasury stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
4,410 |
4,424 |
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TOTAL EQUITIES |
26,275 |
25,451 |
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ANALYTICAL RATIOS
Terms ending: |
28/02/2005 |
28/02/2004 |
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Net Worth (S/Holders' Equity) |
4,410 |
4,424 |
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Current Ratio(%) |
117.37 |
118.70 |
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Net Worth Ratio (%) |
16.78 |
17.38 |
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Recurring Profit Ratio (%) |
0.07 |
0.41 |
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Net Profit Ratio (%) |
0.01 |
0.21 |
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Return On Equity (%) |
0.36 |
6.46 |
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RATING EXPLANATIONS
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RATING |
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 |