MIRA INFORM REPORT

 

 

Report Date :

30.06.2007

 

IDENTIFICATION DETAILS

 

Name :

LADONNA CO LTD

 

 

Registered Office :

Eitai MK Bldg 2/3 F’s, 1-5-9 Saga Kotoku Tokyo 135-0031

 

 

Country :

Japan

 

 

Financials (as on) :

31.05.2007

 

 

Date of Incorporation :

Apr 1951

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, wholesale of picture frames, interior decorative items

 

 

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 :

Yen 49.5 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

LADONNA CO LTD

 

 

REGD NAME

 

KK Ladonna

 

 

MAIN OFFICE

 

Eitai MK Bldg 2/3 F’s, 1-5-9 Saga Kotoku Tokyo 135-0031 JAPAN

Tel        : 03-5620-2780

Fax       : 03-5620-2781

URL      : http://www.ladonna.co.net

E-Mail address: sales@kadonna.co.net

 

 

ACTIVITIES

 

Import, wholesale of picture frames, interior decorative items

 

 

BRANCHES

 

Osaka, Kawaguchi

 

 

OFFICERS

 

KOSUKE MATSUMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 966 M

PAYMENTS      REGULAR                     CAPITAL           Yen 15 M

TREND             STEADY                       WORTH            Yen 558 M

STARTED         1951                             EMPLOYES      19

 

 

COMMENT

 

IMPORTER SPECIALIZING IN PICTURE FRAMES, OWNED BY KING JIM CO LTD.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US#100,000 / O/A 15 DAYS

                       

MAX CREDIT LIMIT: YEN 49.5 MILLION, 30 DAYS NORMAL TERMS.  .

 

 

HIGHLIGHTS

           

The subject company was established by Takashi Nagashima for selling jewelry & accessories for women.  Later in 1980 when Takahiko Nagashima, the second pres, took the pres office, changed the mainstay line to importing and wholesaling picture/photo frames and interior decorative items.  In 2001, the firm was purchased by King Jim Co Ltd, largest    mfr of filing systems & electronic stationery, Tokyo (See REGISTRATION) and became its wholly owned subsidiary.  Goods are imported from Italy, China, Korea, Thailand, other.  Clients include department stores, stationery stores, other, nationwide.

 

 

FINANCIAL INFORMATION

           

Financials are consolidated by the parent, King Jim Co Ltd, the consolidated financials of which are as attached.

                       

The sales volume for May/2006 fiscal term amounted to Yen 966 million, a 10% up from Yen 882 million in the previous term.  Demand for photo frames increased with imports from China rose.  The net profit was posted at Yen 119 million, down from Yen 124 million a year ago.  This is due to the rising costs of imports and operations.  Competition among the trade continued under pressure on profitability.

 

For the term just ended May 2007 the net profit was projected at Yen 120 million, on a 4% rise in turnover, to Yen 1,000 million.  The weaker Yen should have uplifted sales upward in Yen terms.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 49.5 million, on 30 days normal terms.  The proposed amount for 15 days terms is considered well within the firm’s financial capacities.

 

 

REGISTRATION

 

Date Registered:            Apr 1951

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    120,000 shares

Issued:                          30,000 shares

Sum:                            Yen 15 million

Major shareholders (%): King Jim Co Ltd*(100)

*.. Largest mfr of filing systems & electronic stationery, Tokyo, founded 1948, listed Tokyo S/E, capital Yen 1,978 million, turnover Yen 30,299 million, recurring profit Yen 2,158 million, net profit Yen 1,083 million, total assets Yen 26,680 million, net worth Yen 20,169 million, employees 1,084, pres Akira Miyamoto

           

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

 

 

OPERATION

 

Activities: Imports and wholesales photo frames, picture frames, digital photo players, interior frames, lighting photo frames, mini frames & frame sets, other (--100%).

 

Goods are imported from Italy, China, Korea, Thailand, etc.

 

 

Clients: [Department stores, chain stores] Isetan, Mitsukoshi, Takashimaya, Tokyu Hands, Passport, Maruzen Co, Loft Co, Etoile-Kaito, Akachan Honpo, other.  

 

No. of accounts: 500

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Imports from Italy, Korea, China, Thailand, other.

 

Payment record: Regular

 

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

 

           

Bank References

 

MUFG (Kanda-Ekimae)

SMBC (Asakusabashi)

 

Relations: Satisfactory

 

 

FINANCES: (In Million Yen)

 

       Terms Ending:

31/05/2007

31/05/2006

31/05/2005

31/05/2004

Annual Sales

　

1,000

966

882

755

Recur. Profit

　

　

　

　

　

Net Profit

　

120

119

124

64

Total Assets

　

　

658

670

　

Current Assets

　

　

626

640

　

Current Liabs

　

　

90

166

　

Net Worth

　

　

558

496

　

Capital, Paid-Up

　

　

15

15

15

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

3.52

9.52

16.82

7.24

       Current Ratio

 

..

695.56

385.54

..

       N.Worth Ratio

..

84.80

74.03

..

       R.Profit/Sales

 

..

..

..

..

       N.Profit/Sales

12.00

12.32

14.06

8.48

       Return On Equity

..

21.33

25.00

..

 

Note: Forecast (or estimated) for the 31/05/2007 fiscal term.

 

 

 

 

 

ATTACHMENTS:

CONSOLIDATED FINANCIALS OF THE PARENT, KING JIM CO LTD

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

30/06/2006

30/06/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

30,299

30,683

 

  Cost of Sales

18,950

19,411

 

      GROSS PROFIT

11,348

11,272

 

  Selling & Adm Costs

9,260

9,173

 

      OPERATING PROFIT

2,088

2,099

 

  Non-Operating P/L

70

28

 

      RECURRING PROFIT

2,158

2,127

　

      NET PROFIT

1,083

1,305

BALANCE SHEET

 

 

 

 

  Cash

　

6,534

9,178

 

  Receivables

 

4,338

4,298

 

  Inventory

 

3,597

3,403

 

  Securities, Marketable

611

　

 

  Other Current Assets

847

828

 

      TOTAL CURRENT ASSETS

15,927

17,707

 

  Property & Equipment

6,749

5,575

 

  Intangibles

 

775

699

 

  Investments, Other Fixed Assets

4,113

4,704

 

      TOTAL ASSETS

27,564

28,685

 

  Payables

 

3,185

5,990

 

  Short-Term Bank Loans

470

530

 

　

 

　

　

 

  Other Current Liabs

2,202

2,283

 

      TOTAL CURRENT LIABS

5,857

8,803

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

576

　

 

  Reserve for Retirement Allw

304

327

 

  Other Debts

　

375

126

 

      TOTAL LIABILITIES

7,112

9,256

 

      MINORITY INTERESTS

 

213

 

Common stock

1,978

1,978

 

Additional paid-in capital

2,740

1,840

 

Retained earnings

16,684

16,058

 

Evaluation p/l on investments/securities

203

124

 

Others

 

10,064

(201)

 

Treasury stock, at cost

(11,217)

(585)

 

      TOTAL S/HOLDERS` EQUITY

20,452

19,214

　

      TOTAL EQUITIES

27,564

28,685

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

30/06/2006

30/06/2005

 

Cash Flows from Operating Activities

　

-825

2,765

 

Cash Flows from Investment Activities

-917

-1,413

 

Cash Flows from Financing Activities

-906

-285

　

Cash, Bank Deposits at the Term End

　

6,359

8,993

ANALYTICAL RATIOS            Terms ending:

30/06/2006

30/06/2005

 

 

Net Worth (S/Holders' Equity)

20,452

19,214

 

 

Current Ratio (%)

271.93

201.15

 

 

Net Worth Ratio (%)

74.20

66.98

 

 

Recurring Profit Ratio (%)

7.12

6.93

 

 

Net Profit Ratio (%)

3.57

4.25

 

 

Return On Equity (%)

5.30

6.79

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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