MIRA INFORM REPORT

 

 

Report Date :

19.02.2011

 

IDENTIFICATION DETAILS

 

Name :

AKACHAN HONPO CO LTD

 

 

Registered Office :

3-3-21 Minamihonmachi Chuoku Osaka 541-0054

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

February 1941

 

 

Com. Reg. No.:

(Osaka-Chuoku) 077342

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Retail of baby wear, baby goods, maternity wear, goods

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 340.8 Million

 

 

Status :

Moderate

 

 

Payment Behaviour :

Regular

 

 

Litigation :

---

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

AKACHAN HONPO CO LTD

 

 

REGD NAME

 

Akachan Honpo KK

 

 

MAIN OFFICE

 

3-3-21 Minamihonmachi Chuoku Osaka 541-0054 JAPAN

Tel: 06-6251-0625     Fax: 06-6251-3340

URL:                 www.akachan.jp  

E-mail:             info@akachan.jp             

 

 

ACTIVITIES  

 

Retail of baby wear, baby goods, maternity wear, goods, other

 

 

STORES  

 

88 stores nationwide

 

 

FACTORIES  

 

(subcontracted)

 

 

OFFICER(S)  

 

SHIRO KAWABE, PRES            Kazuaki Yoshimura, dir

Yuya Numazaki, dir                    Yoshiyuki Miyai, dir

Yoshiaki Ohta, dir                      Chikashi Okihama, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    R/WEAK           A/SALES          Yen 79,106 M

PAYMENTS                  REGULAR         CAPITAL           Yen 3,080 M

TREND             SLOW              WORTH            Yen 2,204 M

STARTED         1941                 EMPLOYES      3,657

 

 

COMMENT    

 

CHAIN SHOP OPERATOR SPECIALIZING IN BABY/MATERNITY WEAR & GOODS.  FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 340.8 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

The subject company was established by a local entrepreneur in order to make most of his experience in the subject lien of business.  The firm is now under management of Seven & I Holdings Co Ltd (Ito-Yokado group) (See REGISTRATION).  This is a chain shop operator specializing in baby/maternity wear and goods.  Operates a total 88 stores nationwide. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Feb/2010 fiscal term amounted to Yen 79,106 million, a 3% down from Yen 81,771 million in the previous term.  This is referred to the low birth rate.  Consumer spending was sluggish.  The operations continued in the red to register Yen 678 million recurring loss and Yen 848 million net losses, respectively, compared with Yen 1,763 million recurring loss and Yen 5,346 million net losses, respectively, a year ago.  .

 

For the current term ending Feb 2011 the operations are expected to come back to profitability but still remaining in a minimum amount post taxes, on a 1% fall in turnover, to Yen 78,000 million.  Low birth rate is continuing. 

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  Max credit limit is estimated at Yen 340.8 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:          Feb 1941

Regd No.:                     (Osaka-Chuoku) 077342

Legal Status:   　         Limited Company (Kabushiki Kaisha)

Authorized:      　         36 million shares

Issued:                         9,284,645 shares

Sum:                　         Yen 3,080 million

Major shareholders (%): Seven & I Holdings Co* (79.5), Ito-Yokado (12.7)

No. of shareholders: 4

 

*.. Holding company, with Ito-Yokado, Seven-Eleven Japan & Denny’s Japan as core Operating companies, founded 2005, listed Tokyo S/E, capital Yen 50,000 million, sales Yen 5,111,297 million, operating profit Yen 226,666 million recurring profit Yen 226,950 million, net profit Yen 44,875 million, total assets Yen 4,676,999 million, net worth Yen 1,698,453 million, employees 52,348, pres Noritoshi Murata

 

Consolidated Financials are attached 8See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Retails baby/maternity care goods: baby carts, baby cars, furniture, baby wear, maternity wear, diapers, beddings, toys, milk, soaps, other (--100%).

 

Clients: Consumers

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sojitz Corp, Kao Customer Marketing, Pigeon, Arata Corp, Combi Corp, Ryoshoku Ltd, other

 

Payment record: Regular

 

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

 

Bank References:

Shoko Chukin Bank (Osaka)

SMBC (Midosuji)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

       Terms Ending:

28/02/2011

28/02/2010

28/02/2009

29/02/2008

Annual Sales

　

78,000

79,105

81,771

12,957

Recur. Profit

　

0

-678

-1,763

　

Net Profit

　

0

-848

-5,346

-537

Total Assets

　

　

30,333

31,029

　

Current Assets

　

　

13,890

13,135

　

Current Liabs

　

　

16,813

21,052

　

Net Worth

　

　

2,204

-1,748

　

Capital, Paid-Up

　

　

3,080

3,080

3,080

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

-1.40

-3.26

5.18

-9.59

    Current Ratio

 

..

82.61

62.39

..

    N.Worth Ratio

..

7.27

-5.63

..

    R.Profit/Sales

 

0.00

-0.86

-2.16

..

    N.Profit/Sales

0.00

-1.07

-6.54

-4.14

 

Notes: The 29/02/2008 fiscal term is for irregular two months due to change in accounting term to

 

Mar/Feb from Jan/Dec.  The growth rates are adjusted on a 12-months basis.

 

Forecast (or estimated) figures for the 28/02/2011 fiscal term. 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE TOP PARENT, SEVEN & I HOLDINGS CO LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

5,117,197

5,649,948

 

  Cost of Sales

3,355,578

3,789,598

 

      GROSS PROFIT

1,755,719

1,860,350

 

  Selling & Adm Costs

1,529,052

1,578,484

 

      OPERATING PROFIT

226,666

281,865

 

  Non-Operating P/L

284

-2,559

 

      RECURRING PROFIT

226,950

279,306

　

      NET PROFIT

44,875

92,336

BALANCE SHEET

 

 

 

 

  Cash

　

691,633

650,949

 

  Receivables

 

119,627

116,902

 

  Inventory

 

161,394

169,534

 

  Securities, Marketable

55,025

94,824

 

  Other Current Assets

432,507

364,893

 

      TOTAL CURRENT ASSETS

1,460,186

1,397,102

 

  Property & Equipment

1,195,709

1,222,427

 

  Intangibles

 

297,531

421,647

 

  Investments, Other Fixed Assets

720,179

685,884

 

      TOTAL ASSETS

3,673,605

3,727,060

 

  Payables

 

292,628

297,783

 

  Short-Term Bank Loans

151,200

191,100

 

　

 

　

　

 

  Other Current Liabs

819,542

766,044

 

      TOTAL CURRENT LIABS

1,263,370

1,254,927

 

  Debentures

 

190,068

180,448

 

  Long-Term Bank Loans

244,470

249,685

 

  Reserve for Retirement Allw

5,983

6,990

 

  Other Debts

　

175,773

174,337

 

      TOTAL LIABILITIES

1,879,664

1,866,387

 

      MINORITY INTERESTS

 

 

 

Common stock

50,000

50,000

 

Additional paid-in capital

576,072

576,074

 

Retained earnings

1,172,263

1,246,165

 

Evaluation p/l on investments/securities

3,227

247

 

Others

 

1,648

(2,537)

 

Treasury stock, at cost

(9,270)

(9,277)

 

      TOTAL S/HOLDERS` EQUITY

1,793,940

1,860,672

　

      TOTAL EQUITIES

3,673,605

3,727,060

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

322,202

310,007

 

Cash Flows from Investment Activities

-115,158

-139,568

 

Cash Flows from Financing Activities

-156,708

-169,755

　

Cash, Bank Deposits at the Term End

　

717,320

653,483

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

1,793,940

1,860,672

 

 

Current Ratio (%)

115.58

111.33

 

 

Net Worth Ratio (%)

48.83

49.92

 

 

Recurring Profit Ratio (%)

4.44

4.94

 

 

Net Profit Ratio (%)

0.88

1.63

 

 

Return On Equity (%)

2.50

4.96

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.18

UK Pound

1

Rs.73.04

Euro

1

Rs.61.43

 

 

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

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

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.