MIRA
INFORM REPORT
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Report Date : |
20.07.2007 |
IDENTIFICATION DETAILS
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Name : |
EIKO ART CO LTD |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.08.2006 |
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Date of Incorporation : |
Feb 1962 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Import, wholesale of diamonds,
jewelry & accessories, watches |
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 21. 0 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
name
EIKO ART CO LTD
REGD NAME
Eiko Bijutsu KK
(Bijutsu means art objects in Japanese)
MAIN OFFICE
Tel : 03-3834-3301
Fax : 03-3835-9566
URL : N/A
ACTIVITIES
Import,
wholesale of diamonds, jewelry & accessories, watches
BRANCHES
FACTORY(IES)
(subcontracted)
OFFICER(S)
TOSHIJI
KOTANI, PRES
Jun’ichiro
Kotani, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,100 M
PAYMENTS REGULAR CAPITAL Yen 10 M
TREND SLOW WORTH Yen
81 M
STARTED 1962 EMPLOYES 13
COMMENT
IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS, WATCHES &
JEWELRY PRODUCTS, OWNED BY EIKO WATCH CO LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT
ENGAGEMENTS: US$160,000 / O/A 90DAYS
MAX
CREDIT LIMIT: YEN 21.0 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company was established on the basis of a trading
division separated from Eiko Watch Co Ltd, Osaka (see REGISTRATION), for
importing and wholesaling watches, polished diamonds, other precious stones, jewelry
products and accessories. Toshiji Kotani
is concurrently pres of the parent. It
also handles high-quality art objects.
The parent company is agent importer of “Sector” branch watches from
FINANCIAL INFORMATION
Financials are only partially disclosed.
The sales volume for Aug/2006 fiscal term amounted to Yen 1,100 million, an 8% down from Yen 1,200 million in the previous term, hurt by the depressed demand for luxury goods amid sluggish consumer spending. The net profit was posted at Yen 1 million, compared with Yen 3 million a year ago.
For the current term ending Aug 2007 the net profit is projected at Yen 3 million, on a 9% rise in turnover, to Yen 1,200 million. Consumer spending is seen recovering. Weaker Yen will help uplift sales amount in Yen terms.
The financial situation is considered maintained FAIR and should be good for ORDINATY business engagements. Max credit limit is estimated at Yen 21.0 million, on 30 days normal terms. The proposed amount for 90 days terms is considered well within the firm’s financial capacities.
REGISTRATION
Date
Registered: Feb 1962
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 80,000 shares
Issued: 20,000 shares
Sum: Yen 10 million
Major
shareholders (%): Kotani Family (45), Eiko Watch Co Ltd*(34)
*.. Importer and wholesaler specializing in watches, jewelry, art objects, etc, Osaka, founded 1946, capital Yen 30 million, owned by Kotani family & relatives, turnover Yen 29,327 million, employees 441, pres Toshiji Kotani, concurrently.
No. of
shareholders: 7
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Imports, wholesales and retails polished diamonds, sapphires, pearls, antimonies, tins, other precious stones & metals, fingerings, earrings, bracelets, necklaces, and other jewelry products, watches, art objects, others (--100%).
(Import 50%; wholesale 80%; retail 20%).
Clients: [Wholesalers, specialty stores] Eiko Watch (80%), Shiba Genko (10%), other
No. of
accounts: 100
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Tokyo Kiho, Pigeon Jewelry, Oriental Diamond, Yoshida Kogyo, other.
Payment
record: Regular
Location: Business area in
Bank References
SMBC
(Ueno)
Mizuho
Bank (Ueno)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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Terms Ending: |
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31/08/2007 |
31/08/2006 |
31/08/2005 |
31/08/2004 |
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Annual
Sales |
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1,200 |
1,100 |
1,200 |
1,300 |
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Recur.
Profit |
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.. |
.. |
.. |
.. |
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Net
Profit |
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3 |
1 |
3 |
4 |
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Total
Assets |
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N/A |
N/A |
N/A |
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Net
Worth |
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81 |
80 |
78 |
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Capital,
Paid-Up |
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10 |
10 |
10 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
9.09 |
-8.33 |
-7.69 |
-7.14 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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.. |
.. |
.. |
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N.Profit/Sales |
0.25 |
0.09 |
0.25 |
0.31 |
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Notes:
Financials are only partially disclosed.
Forecast
(or estimated) figures for the 31/08/2007 fiscal term.
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)