MIRA INFORM REPORT

 

 

Report Date :

05.05.2012

 

IDENTIFICATION DETAILS

 

Name :

JALUX INC

 

 

Registered Office :

IS Bldg 3F, 3-32-42 Higashishinagawa Shinagawaku Tokyo 140-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

March 1962

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, supply of aircraft parts & components; management of duty-free shops

 

 

No. of Employees :

903

 

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 :

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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 and address

 

JALUX INC

REGD NAME:    KK Jalux

MAIN OFFICE:  IS Bldg 3F, 3-32-42 Higashishinagawa Shinagawaku Tokyo 140-0002 JAPAN

Tel: 03-6367-8800

 

*.. Moved to the caption address on 01/08/2010 as part of restructuring from the former at: 2-4-11 Higashishinagawa Shinagawaku Tokyo    

 

URL:                 http://www.jalux.com/

E-Mail address:            info@support.jalux.com

 

 

ACTIVITIES

 

Import, supply of aircraft parts & components; management of duty-free shops

 

 

BRANCHES   

 

Sapporo, Aomori, Akita, Narita, Haneda, Hiroshima, Kansai (Osaka), Matsuyama, Oita, Kitakyushu, Kagoshima, other (Tot 84 shops in 24 airports).

 

OVERSEAS

 

London, Vienna, Los Angeles, Honolulu, Hong Kong, Bangkok, Shanghai

(-- subsidiaries).  (See REGISTRATION)

 

 

CHIEF EXEC

 

AKINOBU YOKOO, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 89,082 M

PAYMENTS      REGULAR         CAPITAL           Yen 2,558 M

TREND             SLOW              WORTH            Yen 14,375 M

STARTED                     1962                 EMPLOYES      903

COMMENT    

 

A TRADING HOUSE AFFILIATED WITH SOJITZ CORP & JAPAN AIR LINES.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

 

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

 

 

HIGHLIGHTS

 

The subject company was established as a trading firm, named Nikko Shoji KK, by JAL, nation’s largest airline, at the caption address, Tokyo.  Renamed as captioned in Jun 2001.  Specializes in procurement of aircraft parts, sales of used aircraft and procurement of in-flight goods-for-sale for the JAL group.  Operates and manages a total of 92 duty-free & other shops in 24 domestic airports, including New Chitose, Narita, Haneda, Kansai & Fukuoka.  In Jan 2004, merged with KK JSS Trading, when JAL and JAS merged.  Main business lies in planning and sales of gift products for retail stores, including dept stores, and sales of originally developed De SKY products also for JAL group.  After the merger, the firm began selling time-shared rights to resort hotels in Hawaii, expanding the business into Asia outside Japan.  In Dec 2005, set up a subsidiary in Shanghai and started water quality testing/improvement business on rivers.  In Mar 2007 (effective 28/03/2007), JAL’s 30% share was transferred to Sojitz Corp (See REGISTRATION), who became the top shareholder.  The firm streamlined its organization thru: voluntary retirements, reduction of 160 head office staff through transfer to subsidiaries and 50% cut in directors.  Leases fell by 50% through relocation of the headquarter from the JAL Building in Aug/2010.  In July 2010, pulled out of 11 unprofitable businesses, including cleaning & jewelry.  The company opened the first collaborative store within airport in Mar 2012 in tie-up with Circle K Sunks.  Food mfg JV will start in-house production of airplane box lunches in the Mar 2013 term.

           

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 89,082 million, a 6.8% down from Yen 95,541 million in the previous term.  Negative impacts were posed by a decrease in decommissioned aircrafts.  The insurance business hovered low.  By divisions, Aviation-related up 3.7% to Yen 20,260 million; Media and Life service down 22% to Yen 10,480 million; Retail down 7% to Yen 41,798 million.  The recurring profit was posted at Yen 1,656 million and the net profit at Yen 693 million, respectively, compared with Yen 1,603 million recurring profit and Yen 492 million net profit, respectively, a year ago

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 1,750 million and the net profit at Yen 780 million, respectively, on a 7.8% rise in turnover, to Yen 96,000 million.    The airport retail business will continue recovery, backed by steady growth of Japanese overseas tourists.  Food sales will rise in reaction to slump caused by the Tohoku Earthquake.

 

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

 

 

REGISTRATION

 

Date Registered:  Mar 1962

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         20 million shares

Issued:                12,775,821 shares

Sum:                   Yen 2,558 million

Major shareholders (%): Sojitz Corp* (22.0), JAL (Int’l) (21.3), Japan Airport Terminal (8.0), Aioi Nissay Dowa Ins (4.5), Tokio Marine & Nichido Fire Ins (3.5), Mitsui Sumitomo Ins (1.9), Aioi Ins (1.4), Sompo Japan Ins (1.4), Airport Facilities (1.3), Employees’ S/Holding Assn (0.9), Japan Trustee Services (0.8); foreign owners (1.0)

 

No. of shareholders: 12,013

 

*.. Leading trading house born by the merger of Nissho-Iwai Corp & Nichimen Corp, founded 2003, capital Yen 160,339 million, listed Tokyo, Osaka S/E’s, turnover Yen 4,014,639 million, operating profit Yen 37,519 million, recurring profit Yen 45,316 million, net profit Yen 15,981 million, total assets Yen 2,055,147 million, net worth Yen 267,982 million, employees 1,769, pres Yoji Sato

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Akinobu Yokoo, pres & CEO; Toshio Takahashi, v pres; Katsuhiko Mqasada, s/mgn dir; Hiroyuki Katayama, dir; Koji Kumon, dir; Osamu Yamaguchi, dir; Takao Suzuki, dir

 

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

 

Related companies: JAL-DFS Co, JALUX Airport Inc (Airport shop management), JALUXEurope, JALUX Americas, other

 

Overseas consolidated subsidiaries: JALUX Europe Ltd (London, Vienna); JALUX

Americas Inc (Los Angeles);JALUX Asia Ltd (Bangkok); JALUX Hong Kong Co Ltd (Hong Kong); JALUX Shanghai Co Ltd (Shanghai); JALUX Hawaii Inc (Honolulu)

 

           

OPERATION

 

Activities: A trading firm affiliated with Sojitz Corp & JAL.

 

(Sales breakdown by divisions):

            

Aviation-related/Corporate Solutions (20%): aircraft, fuel, aircraft components, machinery, equipment & materials, cabin service supplies, in flight-sales, others;

Foods & Beverages (19%): farm/marine products, processed foods, wines & liquor, jewelry (catalog & in-flight sales), beverages, others;

Travel Retail (48%): printing, greeting cards, other supplies, real estate management, insurances, airport shop operation, others.

Corporate solutions (13%): Insurance, real-estate broking, other

(Overseas trading ratio: less than 10%).

 

            

Clients: [Wholesalers, mfrs, consumers] JAL Int’l, Royal Co, JAL DFS Duty Free Shoppers, IHI, Daimaru Matsuzakaya, Japan Transocean Air, Jalux Airport, Marine Foods, Okamura Trading, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] JALUX Americas, JALUX Europe, JAL Int’l, Fresh Pacific & Vegetable Inc, Showa Aircraft Ind, Japan Tobacco Inc, Sojitz Foods, Bernod Ricard Japan, Okamura Trading, other.

 

Payment record: Regular

 

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

 

Bank References:

SMBC (H/O)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

89,082

95,541

 

  Cost of Sales

70,263

74,970

 

      GROSS PROFIT

18,819

20,571

 

  Selling & Adm Costs

17,198

19,024

 

      OPERATING PROFIT

1,621

1,546

 

  Non-Operating P/L

35

57

 

      RECURRING PROFIT

1,656

1,603

　

      NET PROFIT

693

492

BALANCE SHEET

 

 

 

 

  Cash

　

5,391

5,007

 

  Receivables

 

9,615

8,822

 

  Inventory

 

5,919

5,213

 

  Securities, Marketable

　

1,000

 

  Other Current Assets

3,081

2,316

 

      TOTAL CURRENT ASSETS

24,006

22,358

 

  Property & Equipment

5,118

6,337

 

  Intangibles

 

405

499

 

  Investments, Other Fixed Assets

4,173

5,395

 

      TOTAL ASSETS

33,702

34,589

 

  Payables

 

8,572

8,514

 

  Short-Term Bank Loans

3,025

2,515

 

　

 

　

　

 

  Other Current Liabs

5,130

4,394

 

      TOTAL CURRENT LIABS

16,727

15,423

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

1,202

4,044

 

  Reserve for Retirement Allw

411

292

 

  Other Debts

　

987

855

 

      TOTAL LIABILITIES

19,327

20,614

 

      MINORITY INTERESTS

 

 

 

Common stock

2,558

2,558

 

Additional paid-in capital

711

711

 

Retained earnings

10,811

10,482

 

Evaluation p/l on investments/securities

(7)

(21)

 

Others

 

370

320

 

Treasury stock, at cost

(68)

(75)

 

      TOTAL S/HOLDERS` EQUITY

14,375

13,975

　

      TOTAL EQUITIES

33,702

34,589

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

1,839

4,946

 

Cash Flows from Investment Activities

-73

300

 

Cash Flows from Financing Activities

-2,358

-7,334

　

Cash, Bank Deposits at the Term End

　

5,384

5,999

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

14,375

13,975

 

 

Current Ratio (%)

143.52

144.97

 

 

Net Worth Ratio (%)

42.65

40.40

 

 

Recurring Profit Ratio (%)

1.86

1.68

 

 

Net Profit Ratio (%)

0.78

0.51

 

 

Return On Equity (%)

4.82

3.52

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.72

UK Pound

1

Rs.86.98

Euro

1

Rs.70.64

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

 

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.