MIRA INFORM REPORT

 

 

Report Date :

29.11.2012

 

IDENTIFICATION DETAILS

 

Correct Name :

DUNLOP SPORTS CO LTD

 

 

Formerly Known As :

SRI SPORTS LIMITED

 

 

Registered Office :

3-6-9 Wakinohama-cho Chuoku Kobe 651-0072

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

July 2003

 

 

Com. Reg. No.:

1400-01-022902 (Kobe-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of sporting goods: golf, tennis

 

 

No. of Employees :

1747 employees

 

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

(31.03.2012)

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

 

DUNLOP SPORTS CO LTD

(Renamed in May 2012 from SRI SPORTS LIMITED)

 

 

REGD NAME

 

Dunlop Sports KK

 

 

MAIN OFFICE

 

3-6-9 Wakinohama-cho Chuoku Kobe 651-0072 JAPAN

 

Tel: 078-265-3200     Fax: 078-265-3135     -

 

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES  

 

Mfg of sporting goods: golf, tennis

 

 

BRANCHES   

 

Tokyo

 

 

OVERSEAS

 

Shanghai

 

 

FACTORIES

 

Tamba (Hyogo-Pref); Indonesia

 

CHIEF EXEC

 

YASUSHI NAOJIRI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 58,695 M

PAYMENTS                  No Complaints          CAPITAL           Yen 9,207 M

TREND             SLOW              　         WORTH            Yen 35,215 M

STARTED                     2003                 　         EMPLOYES      1,747

 

 

COMMENT    

 

MFR OF GOLF & TENNIS PRODUCTS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

 

                        Unit: In Million Yen

Forecast figures for the 31/12/2012 fiscal term.

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a sporting goods mfg division separated from Sumitomo Rubber Ind (See REGISTRATION), as Sri Sports Ltd, and in May 2012 renamed as captioned.  This is a specialized mfr of gold & tennis products.  Top-ranked in golf clubs under brand name of Dunlop, XXIO and Srixon.  Also handles tennis goods.  Holds golf tournament events and operates golf schools.  Also engaged in golf course management.  The firm will spur its marketing efforts targeted at wealthy people through trial sales of the “XXIO” model, and plans to expand sales of an integrated model with the bought-out Cleveland.

 

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2011 fiscal term amounted to Yen 58,895 million, a 7.7% down from Yen 83,584 million in the previous term.  The domestic economy suffered a drop in economic activities and personal consumption from the impact of the Great East Japan Earthquake.  The number of golf course visitors and golf/tennis equipment markets all fell below the previous year because of consumer spending temporarily weakening significantly from the impact of the Earthquake, in addition to the cold weather and snowfall in Jan & Feb.  By Divisions, Sports Equipment down 8.1% to Yen 53,483 million; Service/Golf Course Management Operations down 2.7% to Yen 5,211 million.  The recurring profit was posted at Yen 2,506 million and the net profit at Yen 1,890 million, respectively, compared with Yen 4,697 million recurring profit and yen 2,843 million net profit, respectively, a year ago.

 

(Jan/Sept/2012 results): Sales Yen 48,001 million (up 11.8%), operating profit Yen 3,480 million (up 500.8%), recurring profit Yen 3,581 million (up 1,444.0%), net profit Yen 1,756 million (up 206.0%).  (% compared with the corresponding period a year ago).

 

For the current term ending Dec 2012 the recurring profit is projected at Yen 4,000 million and the net profit at Yen 1,800 million, respectively, on a 5.6% rise in turnover, to Yen 62,000 million.  Golf club sales are slumping in Europe and USA.  But domestic sales of new model “XXIO” are making a remarkable growth.  Sales in Asia are also growing resultant of sales route expansion.  Golf balls sales are benefitting from mass production, thanks to the plant startup in Indonesia. 

 

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

 

 

REGISTRATION

           

Date Registered:  Jul 2003

Regd No.:         1400-01-022902 (Kobe-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       100 million shares

Issued:                29 million shares

Sum:                   Yen 9,207 million

 

Major shareholders (%):Sumitomo Rubber Ind* (60.3), Master Trust Bank of Japan T (3.3), Company’s Treasury Stock (2.3), Japan Trustee Services T (1.9), Credit Suisse Sec Euro (1.2), Chase London SL Omnibus Acct (0.7), Employees’ S/Holding Assn (0.6), State Street Bank & Trust 505019 (0.5), CBLDN KIA Fund 139 (0.4), Japan Trustee Services T6 (0.3); foreign owners (5.4)

 

No. of shareholders: 20,632

 

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

 

Managements: Hiroyuki Baba, ch; Yasushi Nojiri, pres; Kazuo Kinameri, s/mgn dir; Takao Mizuno, mgn dir; Hideki Sano, mgn dir; Tetsuo Yamaguchi, dir; Tadahiro Ebisuno, dir; Seizo Tanaka, dir; Shuhei Mimura, dir; Akio Onishi, dir; Mitsuteru Tanigawa, dir

 

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

 

Related companies: Dunlop Sports Marketing, Roger Cleveland Golf, other.

 

 

OPERATION

           

Activities: Manufactures golf & tennis products (91%), golf tournament operations, golf course management, golf/tennis school management, others (9%).

Overseas Sales Ratio (32%)

 

(Mfg Items): golf clubs, golf balls, golf bags, golf shoes; tennis rackets, tennis balls, tennis shoes, other

 

           

Clients: [Mfrs, wholesalers, sporting goods stores] Dunlop Sports Marketing, Dunlop Sports Chubu, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Dunlop Golf Club, PT Sumi Rubber Indonesia, Babolat VS SA, Moririn Co, other

 

Payment record: No Complaints 

 

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

 

Bank References:

SMBC (Kobe)

MUFG (Kobe)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/12/2011

31/12/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

58,695

63,584

 

  Cost of Sales

28,873

30,889

 

      GROSS PROFIT

29,821

32,695

 

  Selling & Adm Costs

26,965

27,668

 

      OPERATING PROFIT

2,855

5,026

 

  Non-Operating P/L

-349

-329

 

      RECURRING PROFIT

2,506

4,697

　

      NET PROFIT

1,890

2,843

BALANCE SHEET

 

 

 

 

  Cash

　

2,408

3,837

 

  Receivables

 

13,930

12,950

 

  Inventory

 

8,814

8,378

 

  Securities, Marketable

　

　

 

  Other Current Assets

2,941

1,877

 

      TOTAL CURRENT ASSETS

28,093

27,042

 

  Property & Equipment

8,195

8,586

 

  Intangibles

 

9,621

10,830

 

  Investments, Other Fixed Assets

6,570

6,694

 

      TOTAL ASSETS

52,479

53,152

 

  Payables

 

4,603

5,363

 

  Short-Term Bank Loans

3,183

1,268

 

　

 

　

　

 

  Other Current Liabs

6,228

8,183

 

      TOTAL CURRENT LIABS

14,014

14,814

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

1,513

1,694

 

  Other Debts

　

1,737

1,626

 

      TOTAL LIABILITIES

17,264

18,134

 

      MINORITY INTERESTS

 

 

 

Common stock

9,207

9,207

 

Additional paid-in capital

9,207

9,207

 

Retained earnings

16,505

15,773

 

Evaluation p/l on investments/securities

(28)

(5)

 

Others

 

540

1,051

 

Treasury stock, at cost

(216)

(216)

 

      TOTAL S/HOLDERS` EQUITY

35,215

35,017

　

      TOTAL EQUITIES

52,479

53,151

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/12/2011

31/12/2010

 

Cash Flows from Operating Activities

　

1,123

6,503

 

Cash Flows from Investment Activities

-1,752

-1,795

 

Cash Flows from Financing Activities

-745

-7,184

　

Cash, Bank Deposits at the Term End

　

1,727

2,981

ANALYTICAL RATIOS            Terms ending:

31/12/2011

31/12/2010

 

 

Net Worth (S/Holders' Equity)

35,215

35,017

 

 

Current Ratio (%)

200.46

182.54

 

 

Net Worth Ratio (%)

67.10

65.88

 

 

Recurring Profit Ratio (%)

4.27

7.39

 

 

Net Profit Ratio (%)

3.22

4.47

 

 

Return On Equity (%)

5.37

8.12

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.70

UK Pound

1

Rs.89.34

Euro

1

Rs.72.35

 

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.