MIRA INFORM REPORT

 

 

Report Date :

02.08.2013

 

IDENTIFICATION DETAILS

 

Name :

MT & HILTON HOTEL CO LTD

 

 

Registered Office :

Tokyo Shiodome Bldg 1F/28-37F, 1-9-1 Higashi-Shimbashi Minatoku Tokyo

105-0021

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

October  2004

 

 

Com. Reg. No.:

0104-01-055479 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Hotel operation & management

 

 

No. of Employees :

450

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit:

--

Status :

Moderate

Payment Behaviour :

Slow

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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 and address

 

MT & HILTON HOTEL CO LTD

(Operating as CONRAD TOKYO)

REGD NAME:   MT & Hilton Hotel KK

MAIN OFFICE:  Tokyo Shiodome Bldg 1F/28-37F, 1-9-1 Higashi-Shimbashi Minatoku Tokyo

105-0021 JAPAN

Tel: 03-6388-8000      Fax: 03-6388-8001

 

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

E-Mail address: tokyoinfo@conradhotels.com

 

 

ACTIVITIES

 

Hotel operation & management

 

HOTEL FACILITIES

 

Guest room: 290 rooms

Restaurant & Bars: French restaurant, Chinese restaurant, Japanese

restaurant, Bar & Lounge

Parties & Convention Facilities: 2 ballrooms, 3 banquet rooms and 3

meeting rooms

Other related facilities: Spa & Fitness, Wedding chapel, etc

 

 

OFFICERS

 

KAZUHIKO OIWA, PRES                       Toshio Komatsu, dir

Katsuyuki Kinoshita, dir             Masahiko Yabe, dir

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK           A/SALES          Yen Undisclosed

PAYMENTSSLOW                     CAPITAL           Yen 20 M

TREND UP                    WORTH            Yen (-) 1,247 M

STARTED         2004                 EMPLOYES      450

*.. Financials are not disclosed only with partial figures

 

 

COMMENT    

 

HOTEL OPERATION & MANAGEMENT, OWNED BY MORI TRUST CO LTD.

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: UNABLE TO BE ASSESSED DUE TO THE LACK OF PROVEN BUSINESS, WHICH THE FIRM DOES NOT DISCLOSE.

MAX CREDIT LIMIT OF THE PARENT, MORI TRUST CO LTD: YEN 2,685.6 MILLION, ON 30 DAYS NORMAL TERMS.  ALL & ANY CREDITS TO THE SUBJECT FIRM ARE RECOMMENDED ON FULLY GUARANTEED TERMS FROM THE PARENT.

 

 

HIGHLIGHTS

           

            The subject company was established by Mori Trust Co Ltd (See REGISTRATION) in to succeed and reconstruct Holton Hotel Tokyo (built 1962) and the present place is selected to house its East Asia Flagship.  It offers views of the Hamarikyu Gardens and Tokyo Bay with contemporary Japanese design.  The hotel has 290 guest rooms, with restaurants & bars, ball rooms, banquet rooms & meeting rooms, spa & fitness clubs, wedding chapel, other.

 

 

FINANCIAL INFORMATION

           

            Financials are wholly consolidated by the parent, Mori Trust Co Ltd, and not individually disclosed, except as stated in the statement down the report.  All these figures are cited from the parent’s financial statements.

 

The sales volume for Dec/2012 fiscal term for hotel business revenue amounted to Yen 19,589 million, a 9% up from Yen 17,928 million.  A recovery in demand from domestic and international tourists resulted in higher occupancy rates and sales. 

 

            The financial situation is considered RATHR WEAK but should be good for MODERATE business engagements.  Max credit limit of the parent, Mori Trust Co Ltd, is estimated at Yen 2,685.6 million, on 30 days normal terms.  Any & all credits to the subject firm are recommended on fully secured terms from the parent.

 

 

REGISTRATION

 

Date Registered:       Oct 2004

Regd No.:           0104-01-055479 (Tokyo-Minatoku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         1,600 shares

Issued:               400 shares

Sum:                   Yen 20 million

     Major shareholders (%): Mori Trust Co Ltd* (100)

 

*.. Mori Trust Co Ltd, Tokyo, real estate development, hotel management and investment business, founded 1970, capital Yen 10,000 million, sales Yen 92,080 million (of which hotel-related business at Yen 19,563 million), operating profit Yen 25,265 million, recurring profit Yen 24,920 million, net profit Yen 19,256 million, total assets Yen 869,120 million, net worth Yen 251,412 million, employees 1,723, pres Akira Mori

 

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

 

 

OPERATION

 

Activities: Hotel operation & management (--100%)

 

Clients: Travelers, tourists, business firms, other

No. of accounts: Unavailable

Domestic areas of activities: Centered in greater-Tokyo

 

Payment record: Slow

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the owner, Mori Trust Co Ltd, and maintained satisfactorily.

 

Bank References:

MUFG (Toranomon-Chuo)

SMBC Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

       Terms Ending:

31/12/2012

31/12/2011

Annual Sales

 

N/A 

         N/A

Recur. Profit

 

         N/A

         N/A

Net Profit

 

-151

-516

Total Assets

 

875

854

Current Assets

 

767

773

Current Liabs

 

1,987

1,813

Net Worth

 

-1,247

-1,096

Capital, Paid-Up

 

20

20

Div.P.Share(¥)

 

0

0.00

 

Notes: Financials are only partially disclosed.  No sales figures are disclosed.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.74

UK Pound

1

Rs.92.05

Euro

1

Rs.80.60

 

 

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.