MIRA INFORM REPORT

 

 

Report Date :

06.10.2007

 

IDENTIFICATION DETAILS

 

Name :

ERECTA INTERNATIONAL CORPORATION

 

 

Registered Office :

Shibuya Cross Tower 8F, 2-15-1 Shibuya Shibuyaku Tokyo 150-0002

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2007

 

 

Date of Incorporation :

Aug 1966

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, wholesale of steel wire shelves, storage containers, dome houses

 

 

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 106.8 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

name

 

ERECTA INTERNATIONAL CORPORATION

 

 

REGD NAME

 

Erecta KK

 

 

MAIN OFFICE

 

Shibuya Cross Tower 8F, 2-15-1 Shibuya Shibuyaku Tokyo 150-0002 JAPAN

Tel        : 03-5766-8177 

Fax       : 03-5766-8192

URL      : http://www.erecta.co.jp/

E-Mail address: international@erecta.co.jp

 

 

ACTIVITIES

 

Import, wholesale of steel wire shelves, storage containers, dome houses

 

 

BRANCHES

 

Osaka, Nagoya, Sendai, Fukuoka, Sapporo

 

 

FACTORY

 

Kofu (Distribution Center)

 

 

OVERSEAS

 

Erecta Shanghai Int’l Corporation (subsidiary)

 

 

OFFICERS

 

TAKASHI YANAGIYA, PRES

Katsuma Matsumoto, s/mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 6,724 M

PAYMENTS      REGULAR         CAPITAL           Yen 88 M

TREND             STEADY           WORTH            Yen 1,250 M

STARTED         1966                 EMPLOYES      120

 

 

COMMENT

 

IMPORTER AND WHOLESALER SPECIALIZING IN STEEL WIRE SHELVES, CONTAINERS, OTHERS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 106.8 MILLION, 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established by Takashi Yanagiya in order to make most of his experience in the subject line of business.  In 1966, obtained import agency agreement from Metro International Corporation, USA, followed by technical tie-up for mfg/distribution of Erecta goods, which led to establish the firm.  This is a trading house specializing in import and wholesale of steel wire shelves as mainline, meal delivery carts, dome houses, cold-dish re-heaters, portable steel pallets, other, all imported from USA, Germany, etc.  Goods are for use in offices, stores, hotels, food service industry, household, hospitals, displays, etc.  Domestic clients are chain stores, office equipment wholesalers, kitchen utensil mfrs, other, nationwide.  The firm announced to withdraw from dome house business as of 30/Sept/2007.  It is understood that the division incurred a huge deficit from overstock and poor sales.

 

 

FINANCIAL INFORMATION

 

The sales volume for Sept/2006 fiscal term amounted to Yen 6,724 million, a 2.5% up from Yen 6,560 million in the previous term.  Cook & chill re-heating carts and quake-resistant portable steel pallets were in much increased demand.  Steel wire storage shelves were rather sluggish.  Materials price hikes were in some areas transferred to clients.  The recurring profit was posted at Yen 181 million but the operations plunged into the red to register Yen 385 million net losses for the term.  This is referred to the overstock and poor sales of dome houses.  This compares with Yen 182 million recurring profit and Yen 66 million net profit, respectively, a year ago.  Dividends paid: Yen 50/share.

 

For the current term just ended Sept 2007 the net profit was projected and estimated posted at Yen 50 million, on a 1% rise in turnover, to Yen 6,800 million.  The firm withdrew from dome house business effective 30/Sept/2007.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 106.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Aug 1966

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    700,000 shares

Issued:                          176,000 shares

Sum:                            Yen 88 million

Major shareholders (%): Takashi Yanagiya (33.8), Chikara Yanagiya (28.9), Employees’ S/Holding Assn (16.9)

No. of shareholders:       5

 

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

 

 

OPERATION

 

Activities: Imports and wholesales: steel wire shelves, storage showcase shelves, service carts & wagons, food delivery carts, quake-resistant portable steel pallets, dome houses (Fuller Dome), cook & chill system-based re-heaters, transport boxes & containers, fully automatic welding machines, others (--100%). 

 

Imports from USA, Germany, France, other, as sales agent in Japan. 

 

Also from China (subsidiary). 

 

Goods are for use in: offices, stores, hotels, restaurants & food service industry, hospitals, displays, household, etc.

 

(Key Overseas Partners):

Metro International Corporation (USA), mfr of steel wire & resin storage shelves;

Rubbermaid Commercial Products (USA), mfr of rubber/plastic products for home-use;

Rieber GmbH & Co KG (Germany), mfr of stainless steel kitchen facilities;

Socamel Rescaset (France), mfr of cook & chill re-heating carts.

           

Clients: [Wholesalers, mfrs, chain stores] Nihon Choriki, Askul, Yamazen, Nippon Yusoki Co, Hoshizaki Tokyo, Fujimac Corp, Nakanishi Gear Co, Yamazen Corp, other.

 

No. of accounts: 600

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Erecta Industries (subsidiary), Inter Metro, Sasaki Tekko Vending, Kyowa Pallet, Wakabayashi Seisakusho, other. 

 

Imports from USA, Germany, France, China, etc.

 

Payment record: Regular

 

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

 

 

Bank References

 

SMBC (Shibuya)

MUFG (Shibuya-Chuo)

 

Relations: Satisfactory

 

 

 

 

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

30/09/2007

30/09/2006

30/09/2005

30/09/2004

Annual Sales

　

6,800

6,724

6,560

6,348

Recur. Profit

　

　

181

182

148

Net Profit

　

50

-385

66

76

Total Assets

　

　

4,644

5,185

5,207

Current Assets

　

　

3,387

3,586

3,095

Current Liabs

　

　

2,239

2,352

2,248

Net Worth

　

　

1,250

1,618

1,559

Capital, Paid-Up

　

　

88

88

88

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

1.13

2.50

3.34

5.80

       Current Ratio

 

..

151.27

152.47

137.68

       N.Worth Ratio

..

26.92

31.21

29.94

       R.Profit/Sales

 

..

2.69

2.77

2.33

       N.Profit/Sales

0.74

-5.73

1.01

1.20

       Return On Equity

..

-30.80

4.08

4.87

 

Notes: Forecast (or estimated) figures for 30/09/2007 fiscal term.

 

 

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.

 

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