MIRA INFORM REPORT

 

 

Report Date :

25.05.2012

 

IDENTIFICATION DETAILS

 

Name :

AIC INC

 

 

Registered Office :

Aeon Tower Bldg Annex, 1-4 Nakase Mihamaku Chiba 261-0023

 

 

Country :

Japan

 

 

Financials (as on) :

29.02.2012

 

 

Date of Incorporation :

January 1979

 

 

Com. Reg. No.:

0400-01-057028 (Chiba-Mihamaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, wholesale of apparel, foodstuffs, household goods

 

                      

No. of Employees :

340

 

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 :

Good

 

 

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

 

AIC INC

 

 

REGD NAME

 

Aiku KK (as pronounced in Japanese)

 

 

MAIN OFFICE

 

Aeon Tower Bldg Annex, 1-4 Nakase Mihamaku Chiba 261-0023 JAPAN

Tel: 043-310-9211     Fax: 043-310-9251

 

*.. Moved to the caption address, which is owned by the parent, Aeon Co Ltd

 

URL:                 http://www.aicincjp.com/

E-Mail address:            fukuir@aicincjp.com

 

 

ACTIVITIES  

 

Import, wholesale of apparel, foodstuffs, household goods

 

 

BRANCHES

 

Beijing, Shanghai, Hong Kong, Qingdao, Shenzhen (--China), Bangkok,

Ho Chi Minh (-- purchasing offices)

 

 

OFFICER(S)

 

MASAYUKI YAMAMOTO, PRES                          Masato Sekino, mgn dir

Takashi Watanabe, dir                              Shuichi Matsuda, dir                                                               

Kozo Honda, dir                                       Yoshitaka Watanabe, dir

 

Yen Amount:     In million Yen, unless otherwise stated


 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 70,670 M

PAYMENTS      REGULAR         CAPITAL           Yen 230 M

TREND SLOW              WORTH            Yen 4,879 M

STARTED         1979                 EMPLOYES      340

 

 

COMMENT    

 

TRADING HOUSE FOR IMPORTING APPAREL, FOODS, ETC, OWNED BY  AEON CO LTD. 

           

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$50,000.00.

                       

 

HIGHLIGHTS

 

The subject company was established jointly by Aeon Co Ltd, Chiba, and Izumiya Co Ltd, Osaka, two leading supermarket chain operators (see REGISTRATION), as a trading house for importing apparel, foodstuffs, household goods, etc, handled by the two parents’ stores.  In 2008, the subject purchased all the shares of Izumiya Co and the firm became a wholly owned subsidiary of Aeon Corp.  Has 5 purchasing offices in China, Bangkok and Ho Chi Minh.  Handling items are apparel, foodstuffs, household goods, other (see OPERATION).  Originally developed goods are branded as “AIC” and also jointly branded “World Eye”.  Import sources are mainly China, Hong Kong, Thailand, India; Vietnam and also from Europe, USA, Oceania, etc (particularly of European-style apparel).  Goods are exclusively shipped to the parent, Aeon Corp.     .

           

 

FINANCIAL INFORMATION

 

The sales volume for Feb/2011 fiscal term amounted to Yen 70,670 million, a 14% down from Yen 82,046 million in the previous term.  This is referred to the lingering global economic downturn started in Nov 2008.  PB brand shipment to Aeon Co was curtailed.  Consumer spending was sluggish.  The recurring profit was posted at Yen 919 million and the net profit at Yen 446 million, respectively, compared with Yen 2,154 million recurring profit and Yen 1,265 million net profit, respectively, a year earlier.

 

For the term that ended Feb 2012 the recurring profit was projected at Yen 1,000 million and the net profit at Yen 460 million, respectively, on a 2% rise in turnover, to Yen 72,000 million.  Final results are yet to be released.

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements. 


 

REGISTRATION

 

Date Registered:            Jan 1979

Regd No.:            0400-01-057028 (Chiba-Mihamaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         438,000 shares

Issued:             438,000 shares

Sum:                   Yen 230 million

Major shareholders (%): Aeon Co Ltd*(66.7), Company’s Treasury Stock (33.3)

No. of shareholders: 2

 

*.. Top-ranked operator of general merchandise stores (GMS), Chiba, founded 1926, listed Tokyo S/E, capital Yen 199,054 million, sales Yen 5,206,132 million, operating profit Yen 195,690 million, recurring profit Yen 212,260 million, net profit Yen 66,750 million, total assets Yen 4,048,937 million, net worth Yen 1,282,066 million, employees 79,910, pres Motoya Okada

 

Consolidated Financials are attached (See SUPPLEMENTS)

           

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

 

 

OPERATION

 

Activities: This is a trading house for import and supply exclusively to the parent, Aeon      Co Ltd:

 

(Sales Breakdown of Divisions – Breakdowns are all about):

 

Apparel (55%): formal wears/suits for men & women, sweaters, polo shirts, sports wears,   pullovers, jeans, trousers, slacks, skirts, blouse, underwear, night gowns, pajamas, shoes,   hosieries, gloves, hats & caps, other;

 

Foodstuffs (25%): mushrooms, cabbages, broccoli, onions, pumpkins, asparagus, bamboo shoots, chestnuts, cherries, oranges, cut flowers, beef, chicken, livestock products (processed), shrimps & prawns, tune, cuttlefish, salmon, jam, butter, canned tomato, canned fruits, soft drinks, confectionery, chilled vegetables, cheese, pickles, other:

 

Household items (20%): curtains, rugs & carpets, beds, beddings, bedclothes, wooden     furniture, cabinets, tableware (stainless/aluminum/china), chinaware, glassware, stationery, toys, sportswear, outdoor utensils, bicycles, toiletries, cosmetics, accessories, pet foods, other.

 

Goods are imported from China, Hong Kong, Taiwan, Thailand, Europe, USA, etc, and        shipped exclusively to the parent, Aeon Co Ltd.

 

Clients: [Supermarket chain operator] Aeon Retail Co, Aeon Top Value, Aeon group firms, other

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Emiya International, Tasmania Feedlot, Sondo (Korea), Royal Corp, Nippon Access Inc, other. 

            Imports widely from China, Hong Kong, Thailand, India, Korea, USA, Canada, Brazil, Chile, Vietnam, UK, Italy, Australia, New Zealand, other.

           

Payment record: Regular

 

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

 

Bank References:

MUFG (H/O)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

29/02/2012

28/02/2011

28/02/2010

28/02/2009

Annual Sales

 

72,000

70,670

82,046

125,925

Recur. Profit

 

1,000

919

2,154

1,317

Net Profit

 

460

446

1,265

715

Total Assets

 

 

19,406

21,775

19,782

Current Assets

 

 

18,678

20,875

18,884

Current Liabs

 

 

10,635

13,208

15,431

Net Worth

 

 

4,879

4,749

3,254

Capital, Paid-Up

 

 

230

230

230

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

1.88

-13.87

-34.85

-32.36

    Current Ratio

 

..

175.63

158.05

122.38

    N.Worth Ratio

..

25.14

21.81

16.45

    R.Profit/Sales

 

1.39

1.30

2.63

1.05

    N.Profit/Sales

0.64

0.63

1.54

0.57

    Return On Equity

..

9.14

26.64

21.97

 

Notes: Forecast (or estimated) figures for the 28/02/2012 fiscal term. 

 

 

 

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, AEON CO LTD

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

29/02/2012

28/02/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

5,206,131

5,096,569

 

  Cost of Sales

3,393,772

3,322,762

 

      GROSS PROFIT

1,812,359

1,773,807

 

  Selling & Adm Costs

1,616,668

1,601,446

 

      OPERATING PROFIT

195,690

172,360

 

  Non-Operating P/L

16,570

9,720

 

      RECURRING PROFIT

212,260

182,080

 

      NET PROFIT

66,750

59,688

BALANCE SHEET

 

 

 

 

  Cash

 

184,324

320,212

 

  Receivables

 

421,939

416,548

 

  Inventory

 

340,971

308,951

 

  Securities, Marketable

2,198

4,509

 

  Other Current Assets

423,098

459,242

 

      TOTAL CURRENT ASSETS

1,372,530

1,509,462

 

  Property & Equipment

1,749,903

1,407,068

 

  Intangibles

 

144,987

117,365

 

  Investments, Other Fixed Assets

781,517

740,733

 

      TOTAL ASSETS

4,048,937

3,774,628

 

  Payables

 

644,059

640,114

 

  Short-Term Bank Loans

97,003

52,065

 

 

 

 

 

 

  Other Current Liabs

798,272

726,734

 

      TOTAL CURRENT LIABS

1,539,334

1,418,913

 

  Debentures

 

204,319

215,209

 

  Long-Term Bank Loans

631,196

547,624

 

  Reserve for Retirement Allw

8,735

8,271

 

  Other Debts

 

383,287

365,374

 

      TOTAL LIABILITIES

2,766,871

2,555,391

 

      MINORITY INTERESTS

 

 

 

Common stock

199,054

199,054

 

Additional paid-in capital

264,963

264,963

 

Retained earnings

543,771

496,648

 

Evaluation p/l on investments/securities

1,853

3,401

 

Others

 

326,512

316,628

 

Treasury stock, at cost

(54,087)

(61,458)

 

      TOTAL S/HOLDERS` EQUITY

1,282,066

1,219,236

 

      TOTAL EQUITIES

4,048,937

3,774,628

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

29/02/2012

29/02/2011

 

Cash Flows from Operating Activities

 

203,382

261,132

 

Cash Flows from Investment Activities

-327,865

-105,517

 

Cash Flows from Financing Activities

-13,061

-121,847

 

Cash, Bank Deposits at the Term End

 

166,277

306,820

ANALYTICAL RATIOS            Terms ending:

29/02/2012

28/02/2011

 

 

Net Worth (S/Holders' Equity)

1,282,066

1,219,236

 

 

Current Ratio (%)

89.16

106.38

 

 

Net Worth Ratio (%)

31.66

32.30

 

 

Recurring Profit Ratio (%)

4.08

3.57

 

 

Net Profit Ratio (%)

1.28

1.17

 

 

Return On Equity (%)

5.21

4.90

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.29

UK Pound

1

Rs.88.26

Euro

1

Rs.70.82

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.