MIRA INFORM REPORT

 

 

Report Date :

29.09.2012

 

IDENTIFICATION DETAILS

 

Name :

SOUND HOUSE INC

 

 

Registered Office :

14-3 Shinizumi Narita Chiba-Pref 286-0825

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

November 2009

 

 

Com. Reg. No.:

0400-01-046181 (Chiba-Narita)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, wholesale, retail (online) of musical instruments for commercial use

 

 

No. of Employees :

140 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

 

SOUND HOUSE INC

 

 

REGD NAME

 

KK Sound House

 

 

MAIN OFFICE

 

14-3 Shinizumi Narita Chiba-Pref 286-0825 JAPAN

Tel: 0476-89-1111      Fax: 0476-89-2222

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Import, wholesale, retail (online) of musical instruments for commercial use

 

 

BRANCHES

 

Nil

 

 

OFFICERS

 

ICHIRO EO, PRES

Atsushi Watanabe, dir

Koichi Miyano, dir         

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 8,000 M

     PAYMENTS No Complaints          CAPITAL           Yen 390 M

TREND   UP                              WORTH                        Yen 868 M

STARTED                     2009                 EMPLOYES      140

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING INMUSICAL INSTRUMENTS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established originally in 1994 by Naohiko Nakajima in order to make most of his experience in the subject line of business.  In Nov 2009, the firm was reorganized under a holding company, House Holdings Inc, and started operations anew from then.  This is a trading firm specializing in import, wholesale and retail (online shop) of AV equipment, musical instruments, studio equipment, other for commercial & professional use.  90% of the goods are imported from USA, other from Europe, China, etc.  Goods are mostly shipped to leasing firms, musical instruments dealers, AV equipment makers, including rentals to live music studios, etc. 

 

 

FINANCIAL INFORMATION

           

Financials are only partially disclosed.

 

The sales volume for Dec/2011 fiscal term amounted to Yen 8,000 million, a 14% up from Yen 7,000 million in the previous term.  Business increased for the second year operation from the reorganization.  Clients increased.  The net profit was posted at Yen 250 million, compared with Yen 350 million a year ago.  High overhead costs and high Yen ate into profits.

 

For the current term ending Dec 2012 the net profit is projected at Yen 260 million, on a 4% rise in turnover, to Yen 8,300 million.  Business is seen expanding steadily. 

 

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

 

 

REGISTRATION

 

Date Registered:  Nov 2009

Regd No.:         0400-01-046181 (Chiba-Narita)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         31,200 shares

Issued:                7,800 shares

Sum:                   Yen 390 million

Major shareholders (%): House Holdings Inc* (100)

 

*.. Holding company of group firms

 

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

 

 

OPERATION

           

Activities: Imports, wholesales retails (online shop) and rentals AV equipment, musical instruments (excluding guitars, pianos), studio equipment, lighting fixtures, all for commercial & professional use (--100%)

 

Clients: [Consumers, audio equipment leasing firms, live houses, musical instruments dealers] Sony Music Distribution, Sony Marketing, M17 Japan, Audio Technica, Kawai Musical Instruments Mfg, D&M Holdings, Freedom Custom Guitar Research, Pro Audio Japan, Pioneer Corp, Yamaha, Media Integration, other 

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Imports from : American Audio, Antari, Aristides Instruments, Etymotic Research, Middle Atlantic, Summit Audio, Zaolla, Pearl River, Odyssey, other

 

Payment record: No Complaints

 

Location: Business area in Narita, Chiba-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Chiba Bank (Narita)

MUFG (Chiba)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

　

　

31/12/2012

31/12/2011

31/12/2010

31/12/2009

Annual Sales

　

8,300

8,000

7,000

2,175

Recur. Profit

　

　

　

　

　

Net Profit

　

260

250

350

84

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

868

693

448

Capital, Paid-Up

　

　

390

390

390

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.75

14.29

221.84

   - - -

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

3.13

3.13

5.00

3.86

 

Notes: Financials are only partially disclosed.  The 31/12/2009 fiscal term is the initial accounting

term from the inception

Forecast (or estimated) figures for the 31/12/2012 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.70

UK Pound

1

Rs.85.72

Euro

1

Rs.68.15

 

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.