MIRA INFORM REPORT

 

 

Report Date :

10.10.2007

 

IDENTIFICATION DETAILS

 

Name :

AIC INC

 

 

Registered Office :

Shinkawa East 3-6F, 1-23-5 Shinkawa Chuoku Tokyo 104-0033

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2007

 

 

Date of Incorporation :

Jan 1979

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, wholesale of apparel, foodstuffs, household goods

 

 

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 2155.0 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

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

URL      : http://www.aicincjp.com/

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)

 

TAKASHI HAMABE, PRES

Masayuki Yamamoto, mgn dir                 Masato Sekino, mgn dir

Shuichi Matsuda, dir                              Kozo Honda, dir

Yoshitaka Watanabe, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 149,924 M

PAYMENTS      REGULAR                     CAPITAL           Yen 230 M

TREND             STEADY                       WORTH            Yen 4,514 M

STARTED         1979                             EMPLOYES      231

 

 

COMMENT

 

TRADING HOUSE FOR IMPORTING APPAREL, FOODS, ETC, JOINTLY OWNED BY AEON CO & IZUMIYA CO.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$250,000 / T/T TERMS.

                       

MAX CREDIT LIMIT: YEN 2,155.0 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) for the 28/02/2008 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 purchases.  Has 6 purchasing offices in China (5) 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 of European-style apparel).  Goods are exclusively shipped to the two parents.    

           

 

FINANCIAL INFORMATION

 

The sales volume for Feb/2007 fiscal term amounted to Yen 149,924 million, a 4% up from Yen 143,544 million in the previous term.  This is attributed to increasing demand from the two parents thanks to the expansion of the number of new stores.  The recurring profit was posted at Yen 66 million and the net profit at Yen 32 million, respectively, compared with Yen 44 million recurring profit and Yen 38 million net profit, respectively, a year ago.

 

For the current term ending Feb 2008 the recurring profit is projected at Yen 70 million and the net profit at Yen 35 million, respectively, on a 5% rise in turnover, to Yen 157,000 million.  Imports will remain steady and uprising in line with the two parents’ expanding operations.  Aeon Co expects sales to rise 8% and Izumiya Co 3%, respectively, over the previous year.  Imports from China are expected to increase.

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,155.0 million, on 30 days normal terms.  The proposed amount is considered well within the firm’s financial capabilities.

 

 

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 198,791 million, turnover Yen 4,824,775 million, recurring profit Yen 188,303 million, net profit Yen 57,656 million, total assets Yen 3,534,346 million, net worth Yen 912,637 million, employees 63,163, 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 378,892 million, recurring profit Yen 6,688 million, net profit Yen 2,237 million, total assets Yen 264,347 million, net worth Yen 106,208 million, employees 3,770, 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 the two parent, Aeon Co Ltd and Izumiya Co Ltd:

 

(Sales Breakdown of 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] Emiya International, Tasmania Feedlot, Sondo (Korea), other. Imports widely 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

 

MUFG (H/O)

Mizuho Corporate Bank (Uchisaiwaicho)

 

Relations: Satisfactory

 

 

FINANCES

 

(Non-Consolidated in million yen)

 

　

　

Terms Ending:

28/02/2007

28/02/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

149,924

143,544

 

  Cost of Sales

146,404

140,115

 

      GROSS PROFIT

3,519

3,428

 

  Selling & Adm Costs

3,449

3,407

 

      OPERATING PROFIT

70

21

 

  Non-Operating P/L

-4

23

 

      RECURRING PROFIT

66

44

　

      NET PROFIT

32

38

BALANCE SHEET

 

 

 

 

  Cash

　

494

402

 

  Receivables

 

14,763

13,001

 

  Inventory

 

1,967

1,034

 

  Securities, Marketable

　

　

 

  Other Current Assets

7,585

7,166

 

      TOTAL CURRENT ASSETS

24,809

21,603

 

  Property & Equipment

31

31

 

  Intangibles

 

309

250

 

  Investments, Other Fixed Assets

407

367

 

      TOTAL ASSETS

25,556

22,251

 

  Payables

 

14,713

11,654

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

4,160

4,530

 

      TOTAL CURRENT LIABS

18,873

16,184

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

1,600

500

 

  Reserve for Retirement Allw

　

　

 

  Other Debts

　

569

1,129

 

      TOTAL LIABILITIES

21,042

17,813

 

      MINORITY INTERESTS

 

 

 

Common stock

230

230

 

Additional paid-in capital

6

　

 

Retained earnings

4,231

4,207

 

Evaluation p/l on investments/securities

　

　

 

Others

 

47

0

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

4,514

4,437

　

      TOTAL EQUITIES

25,556

22,251

ANALYTICAL RATIOS            Terms ending:

28/02/2007

28/02/2006

 

 

Net Worth (S/Holders' Equity)

4,514

4,437

 

 

Current Ratio (%)

131.45

133.48

 

 

Net Worth Ratio (%)

17.66

19.94

 

 

Recurring Profit Ratio (%)

0.04

0.03

 

 

Net Profit Ratio (%)

0.02

0.03

 

 

Return On Equity (%)

0.71

0.86

 

 

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