MIRA INFORM REPORT

 

 

Report Date :

03.12.2012

 

IDENTIFICATION DETAILS

 

Name :

DAISO INDUSTRIES CO LTD

 

 

Registered Office :

 

1-4-14 Saijo-Yoshiyuki-Higashi Higashi-Hiroshima Hiroshima-Pref 739-0008

 

 

 

 

Country :

Japan

 

 

 

 

Financials (as on) :

31.03.2012

 

 

 

 

Date of Incorporation :

Dec 1977

 

 

 

 

Com. Reg. No.:

2400-01-022681 (Hiroshima-Higashi-Hiroshima)

 

 

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

 

 

Line of Business :

“100 Yen” Shop Operator

 

 

 

 

No. of Employees :

1,000

 

 

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

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

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 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

Company name

 

DAISO INDUSTRIES CO LTD

 

 

REGD NAME

 

KK Daiso Sangyo

 

MAIN OFFICE

 

1-4-14 Saijo-Yoshiyuki-Higashi Higashi-Hiroshima Hiroshima-Pref 739-0008 JAPAN

Tel: 082-420-0100    

Fax: 082-420-0135

URL:                 http://www.daiso-sangyo.co.jp/

E-Mail address: info@daiso-sangyo.co.jp

 

 

ACTIVITIES

 

“100 Yen” shop operator

 

 

BRANCH (ES)

 

Sapporo, Chiba, Nagoya, Higashi-Osaka, Fukuoka

 

 

SHOP(S)  

 

2,570 domestic; 564 overseas in 24 countries, of which 508 in Asia/Oceania

 

 

FACTORIES

 

(subcontracted)

 

 

OFFICER(S)

 

HIROTAKE YANO, PRES                       Mieko Aono, s/mgn dir              

Masashi Ishikawa, s/mgn dir                   Gunji Kihara, s/mgn dir  

Masayoshi Naito, dir                              Takamitsu Ohara, dir                             

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 341,500 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 2,700 M

TREND             STEADY                       WORTH            Yen 111,353 M

STARTED                     1977                             EMPLOYES      1,000

 

 

COMMENT

 

“100 YEN SHOP” CHAINS OPERATOR. 

FINANCIAL SITUATION CONSIDERED FAIR TO EXCELLENT AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1972 as Yano-Shoten Ltd for selling household items and was incorporated in 1977, as Daiso Sangyo Inc.  In 1987, launched “Daiso 100 Yen Shop” operation.  Today operates 2,570 shops domestically from Hokkaido to Okinawa and 563 stores overseas in 24 countries.  Handling a wide range of goods from household goods of about 90,000 items (80% originally developed) to hobby materials, stationery and school & office supplies.  Goods are subcontracted mfg to both domestic and overseas makers.  Enjoys 60% of the domestic market share in the 100 Yen shop business.  Goods are also wholesaled to supermarkets, chain stores, and specialty stores, nationwide.  Opened the first overseas store in Taiwan in Aug 2001, followed by Korea, Singapore, Thailand, China, other. 

 

 

FINANCIAL INFORMATION

 

The firm stopped releasing full financials from the last reporting at the 31/03/2002 fiscal term.  Henceforth, the financials have been disclosed only partially. 

 

The sales volume for Mar/2012 fiscal term amounted to Yen 341,500 million, a similar amount in the previous term.  The net profit is reported posted at Yen 14,200 million, compared with Yen 14,150 million a year ago.  Profits are not precisely disclosed and are estimated.

 

For the current term ending Mar 2013 the net profit is projected at Yen 14,500 million, on a 3% rise in turnover, to Yen 350,000 million.  Business is seen steadily expanding.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:                                  Dec 1977

Regd No.:                                             2400-01-022681 (Hiroshima-Higashi-Hiroshima)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              7.2 million shares

Issued:                                     5.4 million shares

Sum:                                        Yen 2,700 million

Major shareholders (%):                       Hirotake Yano, Yano Shoji KK, and Yano families (--100)

No. of shareholders:                7

 

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

 

 

OPERATION

 

Activities: “Daiso 100 Yen Plaza” shop chain operator: 2,570 stores domestically and 564 overseas in 26 countries, including franchisees (--100%). 

 

Handles over 90,000 items (80% originally developed items and brands): kitchen ware, cosmetics, toiletries, tableware, laundry supplies, stationery, garden supplies, household chemicals, electric supplies, foods, spices, bathroom supplies, others.  Goods are also imported from subcontracted mfrs in China, Taiwan, Singapore, other S/E Asian countries centrally.  Goods are wholesaled to supermarkets, chain stores, other, too.

(Overseas stores): Singapore, Canada, Korea, Taiwan, Thailand, Indonesia, UAE, Kuwait, Qatar, Bahrain, Macao, USA, Oman, China, New Caledonia, other.

 

Clients: [Consumers, franchisees, chain stores, supermarkets] Aeon Co, Izumiya, Tokyu Store, Seiyu Ltd, Izumi, Marui, Heiwado, Tenmaya, Uny, Ito-Yokado, other.

No. of accounts: 1,000 (Wholesale div only)

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Izumi Kasei Co, LEC Inc, Fujito Co, Hayashi Imanity Co, Sunpalko Co, Sun Japan Corp, Matsuno Ind Co, Whitemax Co, other. 

Imports from China, Taiwan, Hong Kong, Singapore, Thailand, Vietnam, Indonesia, and other S/E Asian countries.

 

Payment record: No Complaints

 

Location: Business area in Higashi-Hiroshima City.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Bank (Hiroshima)

SMBC (Hiroshima)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

　

　

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

350,000

341,500

341,400

341,200

Recur. Profit

　

　

　

　

　

Net Profit

　

14,500

14,200

14,150

14,150

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

111,353

101,413

91,508

Capital, Paid-Up

　

　

2,700

2,700

2,700

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.49

0.03

0.06

0.95

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

4.14

4.16

4.14

4.15

 

Notes: The firm stopped releasing full financials with the last reporting at the 31/03/2002 fiscal term. Henceforth, only partial figures have been disclosed.

Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.52

UK Pound

1

Rs.87.48

Euro

1

Rs.70.89

 

 

INFORMATION DETAILS

 

Report Prepared by :

SHG

 

 

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.