MIRA INFORM REPORT

 

 

Report Date :

13.12.2013

 

IDENTIFICATION DETAILS

 

Name :

KINOKUNIYA COMPANY LTD

 

 

Registered Office :

3-7-10 Shimomeguro Meguroku Tokyo 153-0064

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2012

 

 

Date of Incorporation :

January, 1946

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Book store operator

 

 

No. of Employees :

1,000

 

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 – 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

 

KINOKUNIYA COMPANY LTD

 

 

REGD NAME

 

KK Kinokuniya Shoten

 

 

MAIN OFFICE

 

3-7-10 Shimomeguro Meguroku Tokyo 153-0064 JAPAN

Tel: 03-6910-0502      Fax: 03-6420-2350

 

*.. Registered at: 3-17-7 Shinjuku Shinjukuku Tokyo

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Book store operator

 

 

STORES

 

64 stores nationwide; 24 stores overseas

 

 

OVERSEAS

 

USA (7), Singapore (4), Indonesia (3), Malaysia, Australia, Taiwan (5), Dubai

 

 

HALL/THEATER

 

Shinjuku, Shibuya

 

 

OFFICERS

 

Masashi Takai, pres                   Tsutomu Yamamoto, v pres

Masahiro Nakae, s/mgn dir         Osamu Kawajiri, s/mgn dir

Masahiro Ichikawa, s/mgn dir      Shigeru Fujishima, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 108,191 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 36 M

TREND             SLOW                          WORTH            Yen 16,586 M

STARTED         1946                             EMPLOYES      1,000

 

 

COMMENT    

 

BOOK STORE OPERATOR.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

This is a book store operator started originally in 1927 and was incorporated in 1946.  Operates 64 stores nationwide, and 24 stores overseas.  Sells books, magazines, CD-ROMs, audio visual software, stationery, other (See OPERATION).  Books/magazines are imported and exported.  Also operates theater and hall in Tokyo.  Clients include universities, educational institutions, governments, municipal offices, libraries, other.

 

 

FINANCIAL INFORMATION

 

The sales volume for Aug/2012 fiscal term amounted to Yen 108,191 million, a 1% down from Yen 109,807 million in the previous term.  The recurring profit was posted at Yen 820 million and the net profit at Yen 503 million, respectively, compared with Yen 430 million recurring profit and Yen 329 million net profit, respectively, a year ago.

 

For the term that ended Aug 2013 the recurring profit was projected at Yen 830 million and the net profit at Yen 510 million, respectively, on a 2% rise in turnover, to Yen 110,500 million.  Final results are yet to be released.

 

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

 

REGISTRATION

 

Date Registered:                      Jan 1946

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              288,000 shares

Issued:                                     72,000 shares

Sum:                                        Yen 36 million

Major shareholders (%):           MUFG, Mizuho Bank, Tokio Marine & Nichido Life Ins, Nippan, Tohan Co, other (breakdown unavailable)

No. of shareholders:                124

 

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

 

 

OPERATION

 

Activities: Book store operator, operating 64 stores nationwide and 24 overseas, books are imported and exported, operates hall/theater, other (--100%)

 

(Books handled/sold): Japanese/foreign books, journals (including electronic journals), magazines, CD-ROMs, audio visual software, stationery, educational & library equipment/systems, electronic information services, publishing, production of audio visual software; production of bibliographic databases, management theaters and art gallery, other

 

Clients: Consumers (55%), public libraries, universities, educational institutions, municipal offices, governments, research institutes, laboratories, business firms, other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nippon Shuppan Hambai Inc (Nippan), Tohan Co, Nikkyohan Co, Osakaya Co, other

Imports foreign books/magazines from overseas

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Shinjuku-Chuo)

Mizuho Bank (Shinjuku)

Relations: ^Satisfactory

 

 

FINANCES

 

 (In Million Yen)

Terms Ending:

31/08/2013

31/08/2012

31/08/2011

31/08/2010

Annual Sales

 

110,500

108,191

109,807

112,999

Recur. Profit

 

830

820

430

 

Net Profit

 

510

503

329

200

Total Assets

 

 

65,418

68,334

68,952

Current Assets

 

 

40,995

42,646

 

Current Liabs

 

 

35,775

42,764

 

Net Worth

 

 

16,586

16,200

15,089

Capital, Paid-Up

 

 

36

36

36

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

S.Growth Rate

2.13

-1.47

-2.82

-1.32

Current Ratio

 

..

114.59

99.72

..

N.Worth Ratio

..

25.35

23.71

21.88

R.Profit/Sales

 

0.75

0.76

0.39

..

N.Profit/Sales

0.46

0.46

0.30

0.18

Return On Equity

..

3.03

2.03

1.33

 

Notes: Forecast (or estimated) figures for the 31/08/2013 fiscal term.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.62

UK Pound

1

Rs.100.84

Euro

1

Rs.84.98

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.