MIRA INFORM REPORT

 

 

Report Date :           

21.02.2012

 

IDENTIFICATION DETAILS

 

Name :

ITOCHU HOME FASHION CORPORATION

 

 

Registered Office :

Asahi Seimei Sunaga Bldg 5F, 2-2-6 Nihombashi-Bakurocho Chuoku Tokyo 103-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

June 1996

 

 

Com. Reg. No.:

(Tokyo-Chuoku) 37347

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of home furnishings

 

 

No. of Employees :

55

 

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 42.4 Million

 

 

Status :

Satisfactory

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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

 

ITOCHU HOME FASHION CORPORATION

 

 

REGD NAME

 

Itochu Home Fashion KK

 

 

MAIN OFFICE

 

Asahi Seimei Sunaga Bldg 5F, 2-2-6 Nihombashi-Bakurocho Chuoku Tokyo 103-0002 JAPAN

 

Tel: 03-3663-9431      Fax: 03-3663-0660

                                               

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Import, export, wholesale of home furnishings

 

 

BRANCHES

 

Osaka, Fukuoka

 

OVERSEAS

 

China

 

 

FACTORIES

 

(subcontracted)

 


OFFICERS

 

KENJI INOUE, PRES

Harumitsu Utani, s/mgn dir

Tomihiko Ishikawa, dir                                                   

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 7,380 M

PAYMENTS                  REGULAR         CAPITAL           Yen 335 M

TREND             UP                    WORTH            Yen 353 M

STARTED                     1996                 EMPLOYES      55

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN HOME FURNISHINGS, OWNED BY  ITOCHU CORP.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 42.4 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established as Sanki Interior Corp and in 1998 merged with Itochu Living Corporation and renamed as captioned, and became Itochu Corp’s subsidiary.  This is a trading firm, with mfg division, for import, export and wholesale of home furnishings: interior goods, upholstery, beds & beddings, apparel, other (See OPERATION).   Goods are manufactured at subcontracted mfr in Vietnam and imported.  Operates online shop “Plus Value”.  Clients include major chain stores, specialty stores, other, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2011 fiscal term amounted to Yen 7,380 million, a 9% up from Yen 6,755 million in the previous term.  Sales in the previous term were substantially affected by the global economic downturn.  The global economy basically continued to follow a course of recovery, led by growth in the economies in emerging countries.  Exports were robust.  In the Textile Company, the subject being one of them, the parent acquired Java Holdings Co Ltd and Leilian Co Ltd in the second half of the previous fiscal year.  This led to higher revenue in the year under review, while Yen-Dollar rates followed a course of Yen appreciation and eroded profits in Yen terms.  The recurring profit was posted at Yen 69 million, while the bottom line posted Yen 69 million net losses for the term, compared with Yen 151 million recurring profit and Yen 46 million net losses, respectively, a year ago.

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 50 million and the net profit at Yen 50 million, respectively, on a 5% rise in turnover, to Yen 4,750 million.  The acquired two firms will contribute in full term. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 42.4 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Jun 1996

Regd No.:         (Tokyo-Chuoku) 37347

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         37,600 shares

Issued:             9,400 shares

Sum:                   Yen 335 million

Major shareholders (%): Itochu Corp* (98), Sakase Adtech (2)

No. of shareholders: 2

 

*.. Itochu Corp, one of top five general trading houses, founded 1949, listed Tokyo, Osaka, Nagoya, Fukuoka & Sapporo S/E’s, capital Yen 202,241 million, sales Yen 11,392,589 million, operating profit Yen 256,082 million, recurring profit Yen 182,097 million, net profit Yen 160,975 million, total assets Yen 5,673,683 million, net worth Yen 1,397,510 million, employees 71,561, pres Masahiro Okafuji

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales home furnishings (100%)

Goods are mostly manufactured at subcontracted factory in Vietnam. 

 

(Handling Items): Curtains, blinds, roll screen, coverings, sofa cover, cushion, stuffed animals & dolls, furniture, kitchen cloth, tableware, beds & beddings, blanket, pillows, towelket, towels, matt, pat, home wear, bags, porches, footwear, gifts, accessories, other

 

Clients: [Supermarkets, chain stores] Ryohin Kikaku Co, Aeon Co, Ito-Yokado, QVC Japan (TV shopping), Nitori Co, other

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Imports from Vietnam, other.

Domestically supplied from: Itochu Corp, Sanyo Feather Co, Fujiwara Co, other

 

Payment record: Regular

 

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

 

Bank References:

·         Mizuho Bank (Yokoyamacho)

·         SMBC (Asakusabashi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

29/02/2012

28/02/2011

28/02/2010

28/02/2009

Annual Sales

 

7,750

7,380

6,755

7,862

Recur. Profit

 

50

49

151

172

Net Profit

 

50

-69

-46

96

Total Assets

 

 

4,668

4,231

3,913

Current Assets

 

 

4,342

3,835

3,465

Current Liabs

 

 

4,021

3,576

3,231

Net Worth

 

 

353

430

474

Capital, Paid-Up

 

 

335

335

335

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.01

9.25

-14.08

0.10

    Current Ratio

 

..

107.98

107.24

107.24

    N.Worth Ratio

..

7.56

10.16

12.11

    R.Profit/Sales

 

0.65

0.66

2.24

2.19

    N.Profit/Sales

0.65

-0.93

-0.68

1.22

    Return On Equity

..

-19.55

-10.70

20.25

 

Notes: Forecast (or estimated) figures for the 29/02/2012 fiscal term.

 


SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF ITOCHU CORP

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

 

11,392,589

10,306,799

 

  Cost of Sales

10,351,298

9,382,433

 

      GROSS PROFIT

1,041,291

924,366

 

  Selling & Adm Costs

785,209

776,952

 

      OPERATING PROFIT

256,082

147,414

 

  Non-Operating P/L

-73,985

7,572

 

      RECURRING PROFIT

182,097

154,986

 

      NET PROFIT

160,975

128,153

BALANCE SHEET

 

 

 

 

  Cash

 

630,722

475,674

 

  Receivables

 

1,434,363

1,426,682

 

  Inventory

 

504,342

476,066

 

  Securities, Marketable

3,560

7,140

 

  Other Current Assets

502,844

(492,081)

 

      TOTAL CURRENT ASSETS

3,075,831

1,893,481

 

  Property & Equipment

643,629

666,351

 

  Intangibles

 

 

 

 

  Investments, Other Fixed Assets

1,954,223

2,917,015

 

      TOTAL ASSETS

5,673,683

5,476,847

 

  Payables

 

1,239,609

1,217,599

 

  Short-Term Bank Loans

241,915

229,236

 

 

 

 

 

 

  Other Current Liabs

561,355

545,723

 

      TOTAL CURRENT LIABS

2,042,879

1,992,558

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

2,159,929

2,107,589

 

  Reserve for Retirement Allw

52,564

43,314

 

  Other Debts

 

20,801

22,033

 

      TOTAL LIABILITIES

4,276,173

4,165,494

 

      MINORITY INTERESTS

 

 

 

Common stock

202,241

202,241

 

Additional paid-in capital

114,291

137,506

 

Retained earnings

1,035,222

900,397

 

Evaluation p/l on investments/securities

(139,038)

(194,254)

 

Others

 

187,481

268,137

 

Treasury stock, at cost

(2,687)

(2,674)

 

      TOTAL S/HOLDERS` EQUITY

1,397,510

1,311,353

 

      TOTAL EQUITIES

5,673,683

5,476,847

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

 

336,868

295,376

 

Cash Flows from Investment Activities

-230,420

-196,318

 

Cash Flows from Financing Activities

52,905

-258,987

 

Cash, Bank Deposits at the Term End

 

630,722

475,674

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

1,397,510

1,311,353

 

 

Current Ratio (%)

150.56

95.03

 

 

Net Worth Ratio (%)

24.63

23.94

 

 

Recurring Profit Ratio (%)

1.60

1.50

 

 

Net Profit Ratio (%)

1.41

1.24

 

 

Return On Equity (%)

11.52

9.77

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.21

UK Pound

1

Rs.77.75

Euro

1

Rs.64.58

 

 

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.