MIRA INFORM REPORT

 

 

Report Date :

07.07.2011

 

IDENTIFICATION DETAILS

 

Name :

COSTCO WHOLESALE JAPAN LTD

 

 

Registered Office :

3-1-4 Ikegami Shincho Kawasakiku Kanagawa-Pref 210-0832

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2010

 

 

Date of Incorporation :

April 1998

 

 

Com. Reg. No.:

(Yokohama-Kawasaki) 079681

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Membership warehouse store operator

 

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 498.9 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

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 – March 31st, 2011

 

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Name and address

 

COSTCO WHOLESALE JAPAN LTD

REGD NAME:    Costco Wholesale Japan KK

MAIN OFFICE:  3-1-4 Ikegami Shincho Kawasakiku Kanagawa-Pref 210-0832 JAPAN

                        Tel: 044-281-2600

 

URL:                 http://www.costco.co.jp/

E-Mail address: info@costco.co.jp

 

 

ACTIVITIES

 

Membership warehouse store operator

 

 

STORE(S)

 

Hayama (Fukuoka), Makuhari (Chiba), Tamasakai (Tokyo), Amagasaki (Hyogo),Kanazawa Seaside (Yokohama), other (Tot 10)

 

 

OFFICER(S)

 

KEN TERIA, PRES (Only phonetically spelled)

                        James B Murphy, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 28,000 M

PAYMENTS                  REGULAR                     CAPITAL           Yen 7,505 M

TREND             SLOW                          WORTH            Yen 8,765 M

STARTED                     1998                             EMPLOYES      1,400

 

 

COMMENT

 

MEMBERSHIP WAREHOUSE STORE OPERATOR, WHOLLY OWNED BY

COSTCO WHOLESALE CORP, USA. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

.

MAX CREDIT LIMIT: YEN 498.9 MILLION, 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

 

The subject company was established by Costco Wholesale Corp, USA, in order to advance into Japan for operating its membership warehouse stores.  In 1999, opened the first store in Hisayama (Fukuoka), followed by Chiba (Dec/2000), Tokyo (Sept/2002), Hyogo (Apr/2003) and Kanazawa stores (Oct/2004).  The stores employ two membership systems: Business (Corporate) & Gold Star (Individuals).  Business members account for about 30% of the total, while turnover from Business members stands about 70% of total sales.  The firm stocks 5,000 items, selling in bulk at low prices.  Handling items are: fresh & frozen foods, processed foods, jewelry & watches, house-ware, apparel, gardening tools, sporting goods, other. 

 

 

FINANCIAL INFORMATION

 

            The financials are consolidated by the US parent, Costco Wholesale Corp, and only partially disclosed.

 

The sales volume for Aug/2010 fiscal term amounted to Yen 28,000 million, a 5% up from Yen 26,700 million in the previous term.  This is attributed to the opening of a new store in the second half of the term.  The net profit was posted at Yen 250 million, compared with Yen 150 million a year ago. 

 

            For the current term ending Aug 2011 the net profit is projected at Yen 260 million, on a 4% rise in turnover, to Yen 29,000 million.  The new store opened in the last term will contribute in full term. 

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 498.9 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:  Apr 1998

Regd No.:         (Yokohama-Kawasaki) 079681

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         150.1 million shares

Issued:                150.1 million shares

Sum:                   Yen 7,505 million

Major shareholders (%): Costco Wholesale Corp, USA (100)

 

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

 

 

OPERATION

 

Activities: Membership warehouse store operator, with 5 stores operating, wholesaling & retailing of the following goods (--100%)

 

(Product categories – typical & not confined to these items):

Personal: jewelry & watches; apparel (quality brands/Kirkland Signature apparel of dresses, sweaters, jeans, jackets, socks & accessories; health & beauty: shampoo, soap, toothbrushes, shaving products, lotions, foundation, vitamins, remedies, diapers, brand-name perfumes, other; office supplies (desks & office furniture, paper, pads, stationery, file cabinets, tables, other wide range of office accessories); seasonal/toys (toys, seasonal/holiday items); books & media (imported books & magazines, DVD’s, videos, music CD’s, PC software);

Outdoor/Home: lawn & garden (live plants, fertilizers, gardening tools & supplies, patio furniture, barbecues); hardware /storage (power & hand tools, ladders, compressors, pressure washers); sporting goods (snowboards, golf clubs, bicycles, camping equipment, fitness equipment); auto (oils, chemicals, auto cleaners, car batteries, other automotive accessories);

Processed foods: frozen foods (fresh frozen chicken, vegetables & seafood); snacks & candy (name-brand candy bars, candies, chewing gums, mints, chips, nuts, jerky, rice crackers); dry groceries (soy sauce, teas, olive oils, coffee, cranberry products, other imported items); liquor (wine, spirits, sake, beer);

Fresh foods: fresh meat (beef, port, chicken, other); fresh fish (including sushi & sashimi trays); fresh produce (fresh fruits & vegetables – washed, cut and assorted); fresh bakery (breads, pies, muffins, cookies, pastries, croissants, custom-order cakes); fresh Deli (cheeses, ham, sausages, seaweed, kimchi, sushi, sashimi, salads);

Services: optical (eyeglasses, frames & lenses, sunglasses); 1 hour photo shop; tire center (brand-name vehicle tires, including balancing & installation services); Food Court (quick snacks); delivery services (offers delivery services from freezers, cooler items to sofas, refrigerators and up to pallet quantities).

About 40% of the goods are imported from the parent and its group firms in USA, other. 

 

Clients: Individual consumers, business firms, other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Kao Corp (4%), San Rio Corp (4%), Proctor & Gamble Far East Inc (3), other. 

Also, imports from Costco Wholesale Corp, USA and its group firms.

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Kawasaki)

Mitsubishi UFJ Trust Bank (Kawasaki)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

Terms Ending:

　

31/08/2011

31/08/2010

31/08/2009

31/08/2008

Annual Sales

　

28,500

28,000

26,700

29,700

Recur. Profit

　

300

300

150

200

Net Profit

　

260

250

150

150

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

8,765

8,590

8,485

Capital, Paid-Up

　

　

7,505

7,505

7,505

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

1.79

4.87

-10.10

2.41

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

0.91

0.89

0.56

0.51

 

Notes:  Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/08/2011 fiscal term.

 

 

           

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.42

UK Pound

1

Rs.70.95

Euro

1

Rs.63.63

 

 

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

--

NB

                                       New Business

 

--

 

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.