MIRA
INFORM REPORT
|
Report Date : |
10.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SEVEN SIGNATURES CORPORATION |
|
|
|
|
Registered Office : |
5F, 3-3-11 Kitaaoyama Minatoku Tokyo 107-0061 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Date of Incorporation : |
Jul 2003 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Sale, management, operation of hotel
condominiums |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
-- |
name
SEVEN SIGNATURES CORPORATION
REGD NAME
KK Seven Signatures
MAIN OFFICE
5F, 3-3-11 Kitaaoyama Minatoku Tokyo 107-0061 JAPAN
Tel : 03-5210-0030
*.. Moved to the caption address in Sept 2006 from the former
at: Fuerte Kojimachi Bldg 7F, 1-7-25 Kojimachi Chiyodaku Tokyo, where Lexington
Corp is located.
URL : http://www.bals.co.jp
(Of the parent, Bals Corp)
E-Mail address: info@bals.co.jp
ACTIVITIES
Sale, management, operation of hotel condominiums
BRANCHES
Nil
OFFICERS
Fumio Takashima, ch (Pres of Bals Corp)
YOICHIRO NAKANO, PRES (Pres of Lexington Corp)
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES UNDETD A/SALES Yen 100 M*
PAYMENTS REGULAR CAPITAL Yen 15 M
TREND UNDETD WORTH Yen 15 M
STARTED 2003 EMPLOYES 10
*..
Targets only.
COMMENT
MANAGEMENT, SALE AND OPERATION OF HOTEL CONDOMINIUMS, JOINTLY OWNED BY BALS CORP AND LEXINGTON CORP.
FINANCIAL SITUATION NOT DETERMINED DUE TO THE RECENT INCEPTION
BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: UNABLE TO BE ASSESSED WITHOUT PROVEN BUSINESS.
ALL CREDITS TO BE FULLY GUARANTEED BY BALS CORP.
HIGHLIGHTS
The subject company was established jointly by Bals Corp and
Lexington Corp (See REGISTRATION for both companies) in order to advance into
management, sale, operation of hotel condominiums. Operations started in Sept 2006, when the firm obtained sole
distributorship right in partnership with S&P Destination Proprieties for
hotel condominiums of Trump International Hotel and Tower Waikiki Beach Hotel
to be completed in the first half 2009.
The operations include sale, leasing, management, owning of these
condominiums in Japan. For this purpose, the firm opened a showroom
at the caption address and moved the headquarters thereto. The firm aims, in addition to sale of
overseas hotel condominiums, to own hotels & condominiums in Japan &
overseas to canvass sale, leasing and management of these hotels.
The roles of the two partners:
Bals Corp: As retailer of household interior furniture and goods, offers Asian interior design concept to purchasers of these condominiums, introducing own brand interior furniture & goods.
Lexington Corp: As
investment advisor, offers advice to owners/purchasers of these condominiums on
investment and operation thereof.
FINANCIAL INFORMATION
Bals Corp invested some Yen 4,000 million for the purchase (for sales campaign) of condominiums, opening of showroom & office, operating funds of the project. Funds are arranged by bank loans and own monies.
Sales targets for the initial term ending Jan 2008 are projected at Yen 100 million, with Yen 300 million expenditures and operating expenses. All these figures have been released from Bals Corp.
Consolidated
financials of the parent, Bals Corp, are attached.
Both the financial situation and business trends are not
determined due to the recent inception but should be good for ORDINARY business
engagement. On the back of the owner,
Bals Corp, the financial situation is considered FAIR but needs to see proven
business records in order to assess credit limits. In the meantime, all credits are recommended fully guaranteed by
Bals Corp. Max credit limit of Bals
Corp: Yen 388.8 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jul
2003
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,200
shares
Issued: 300
shares
Sum: Yen
15 million
Major shareholders (%): Bals
Corp* & Lexington Corp**(--100)
No. of shareholders: 2
*.. Bals Corp, operator of interior goods stores (2 overseas & 94 domestic), founded 1990, listed Tokyo S/E’s, capital Yen 1,657 million, turnover Yen 22,229 million, employees 276, pres Fumio Takashima.
** Investment advisor, founded 2003 by MBO of assets consulting
division at Comers Securities Co, capital Yen 100 million, employees 7, pres
Yoichiro Nakano.
Nothing detrimental is known as to the commercial morality
of executives.
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
SMBC (Roppongi)
Mizuho Bank (Aoyama)
Relations: Satisfactory
CONSOLIDATED FINANCES
OF THE PARENT, BALS CORP
|
FINANCES: (Consolidated
in million yen) |
|
||||
|
|
|
Terms Ending: |
31/01/2006 |
31/01/2005 |
|
|
INCOME STATEMENT |
|
|
|||
|
|
Annual Sales |
|
22,229 |
18,994 |
|
|
|
Cost of Sales |
9,157 |
7,995 |
||
|
|
GROSS PROFIT |
13,072 |
10,998 |
||
|
|
Selling & Adm Costs |
11,637 |
9,860 |
||
|
|
OPERATING PROFIT |
1,434 |
1,137 |
||
|
|
Non-Operating P/L |
-56 |
-34 |
||
|
|
RECURRING PROFIT |
1,378 |
1,103 |
||
|
|
NET PROFIT |
815 |
464 |
||
|
BALANCE SHEET |
|
|
|
||
|
|
Cash |
|
1,661 |
1,422 |
|
|
|
Receivables |
|
1,385 |
1,158 |
|
|
|
Inventory |
|
3,224 |
2,851 |
|
|
|
Securities, Marketable |
|
|
||
|
|
Other Current Assets |
417 |
369 |
||
|
|
TOTAL CURRENT ASSETS |
6,687 |
5,800 |
||
|
|
Property & Equipment |
2,554 |
1,557 |
||
|
|
Intangibles |
|
16 |
46 |
|
|
|
Investments, Other Fixed Assets |
2,120 |
1,926 |
||
|
|
TOTAL ASSETS |
11,377 |
9,329 |
||
|
|
Payables |
|
1,803 |
2,473 |
|
|
|
Short-Term Bank Loans |
578 |
583 |
||
|
|
|
|
|
|
|
|
|
Other Current Liabs |
1,525 |
1,486 |
||
|
|
TOTAL CURRENT LIABS |
3,906 |
4,542 |
||
|
|
Debentures |
|
610 |
610 |
|
|
|
Long-Term Bank Loans |
764 |
745 |
||
|
|
Reserve for Retirement Allw |
196 |
178 |
||
|
|
Other Debts |
|
32 |
3 |
|
|
|
TOTAL LIABILITIES |
5,508 |
6,078 |
||
|
|
MINORITY INTERESTS |
71 |
11 |
||
|
|
Common
stock |
1,657 |
758 |
||
|
|
Additional
paid-in capital |
1,793 |
758 |
||
|
|
Retained
earnings |
2,356 |
1,599 |
||
|
|
Evaluation
p/l on investments/securities |
3 |
1 |
||
|
|
Others |
|
(12) |
123 |
|
|
|
Treasury
stock, at cost |
|
|
||
|
|
TOTAL S/HOLDERS` EQUITY |
5,797 |
3,239 |
||
|
|
TOTAL EQUITIES |
11,377 |
9,329 |
||
|
CONSOLIDATED CASH FLOWS |
|
|
|||
|
|
|
Terms ending: |
31/01/2006 |
31/01/2005 |
|
|
|
Cash
Flows from Operating Activities |
|
66 |
43 |
|
|
|
Cash Flows
from Investment Activities |
-1,869 |
-782 |
||
|
|
Cash
Flows from Financing Activities |
1,790 |
567 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
909 |
916 |
|
|
ANALYTICAL RATIOS Terms
ending: |
31/01/2006 |
31/01/2005 |
|||
|
|
|
Net
Worth (S/Holders' Equity) |
5,797 |
3,239 |
|
|
|
|
Current
Ratio (%) |
171.20 |
127.70 |
|
|
|
|
Net
Worth Ratio (%) |
50.95 |
34.72 |
|
|
|
|
Recurring
Profit Ratio (%) |
6.20 |
5.81 |
|
|
|
|
Net
Profit Ratio (%) |
3.67 |
2.44 |
|
|
|
|
Return
On Equity (%) |
14.06 |
14.33 |
|
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%)