MIRA INFORM REPORT

 

 

Report Date :

09.01.2013

 

IDENTIFICATION DETAILS

 

Name :

ZETT CREATE CORPORATION

 

 

Registered Office :

1-2-16 Karasugatsuji Tennojiku Osaka 543-0042

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

March, 1979

 

 

Com. Reg. No.:

023974

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of sporting goods

 

 

No. of Employees :

88

 

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 :

Slow but Correct

 

 

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

 

ZETT CREATE CORPORATION

 

 

REGD NAME 

 

Zett Create KK

 

 

MAIN OFFICE

 

1-2-16 Karasugatsuji Tennojiku Osaka 543-0042 JAPAN

Tel: 06-6779-1172     Fax: 06-6774-0721

*.. The given phone number is that of the parent, Zett Corp

                                               

URL:                 http://www.zett.ne.jp (of the parent, Zett Corp)

E-Mail address: custinfo@zett.ne.jp

 

 

ACTIVITIES  

 

Mfg of sporting goods

 

 

BRANCHES   

 

Nil

 

 

FACTORIES  

 

At the caption address, Fukui

 

 

OFFICERS

 

KOICHI WADA, PRES               Yasuo Watanabe, ch

Hirofumi Yoneda, mgn dir            Tadashi Hasegawa, dir

Masaharu Yabugaki, dir              Hiroyuki Watanabe, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 6,990 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 960 M

TREND             SLOW                          WORTH            Yen 1,204 M

STARTED         1979                             EMPLOYES      88

 

 

COMMENT    

 

MFR OF SPORTING GOODS, WHOLLY OWNED BY ZETT CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY                                   

BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established on the basis of mfg division separated from Zett Corporation (See REGISTRATION).  This is the mfg division, consolidated subsidiary, of Zett Corporation and most of the sporting goods, particularly baseball & softball goods, are manufactured by this company.  Goods are wholly shipped to the parent.

 

 

FINANCIAL INFORMATION

           

Financials are consolidated by the parent and only partially disclosed.

 

The sales volume for Mar/2012 fiscal term amounted to Yen 6,990 million, a shade down from Yen 6,999 million in the previous term.  Sales of sports apparel, sporting goods and outdoor products were facing difficulties.  Consumer spending was sluggish.  The operations continued in the red to post Yen 189 million net losses for the term, compared with Yen 87 million net losses a year ago.

 

For the current term ending Mar 2013 the operations are projected to come back to profitability to post Yen 20 million net profit, on a 2% rise in turnover, to Yen 7,120 million.  Baseball goods will continue to stagnate.  But sales of Converse baseball goods will grow further.   

 

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

 

 

REGISTRATION

 

Date Registered:          Mar 1979

Regd No.:                    (Osaka-Tennojiku) 023974

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  7.6 million shares

Issued:                        1.92 million shares

Sum:                            Yen 960 million

Major shareholders (%): Zett Corporation* (100)

           

*.. Leading wholesaler of sporting goods, Osaka, founded 1950, listed Osaka (second section), capital Yen 1,005 million, sales Yen 38,988 million, operating loss Yen 132 million, recurring loss Yen 47 million, net loss Yen 300 million, total assets Yen 20,030 million, net worth Yen 7,567 million, employees 587, pres Hiroyuki Watanabe

 

Consolidated Financials are attached (See SUPPLEMENTS)                    

           

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

 

 

OPERATION

           

Activities: Manufactures sporting goods: baseball goods, baseball uniforms, other sporting goods (--100%).  Goods are wholly shipped to the parent, Zett Corp.

 

Clients: [Wholesaler] Zett Corp

            No. of accounts: 1

            Domestic areas of activities: Nationwide

Suppliers:        [Mfrs, wholesalers] Mitsubishi Corp, Toyota Tsusho Corp, Marubeni Corp, Mitsui & Co, Okamoto Seikou Co, Zairo Co, other

 

Payment record: Slow but Correct

 

Location: Business area in Osaka.  Office premises at the caption address are owned by the parent, Zett Corp, and maintained satisfactorily.

 

Bank References:

Mizuho Bank (Semba)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

　

　

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

7,120

6,990

6,999

7,424

Recur. Profit

　

　

　

　

　

Net Profit

　

20

-189

-87

18

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

1,204

1,393

1,480

Capital, Paid-Up

　

　

960

960

960

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

1.86

-0.13

-5.72

-2.85

       Current Ratio

 

 

..

..

..

       N.Worth Ratio

 

..

..

..

       N.Profit/Sales

0.28

-2.70

-1.24

0.24

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, ZETT CORPORATION.

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

38,988

38,245

 

  Cost of Sales

30,961

29,593

 

      GROSS PROFIT

8,027

8,652

 

  Selling & Adm Costs

8,159

9,496

 

      OPERATING PROFIT

-132

-843

 

  Non-Operating P/L

85

58

 

      RECURRING PROFIT

-47

-785

　

      NET PROFIT

-300

-1,207

BALANCE SHEET

 

 

 

 

  Cash

　

2,197

2,565

 

  Receivables

 

9,040

7,931

 

  Inventory

 

2,737

2,940

 

  Securities, Marketable

　

　

 

  Other Current Assets

380

539

 

      TOTAL CURRENT ASSETS

14,354

13,975

 

  Property & Equipment

4,053

4,164

 

  Intangibles

 

56

54

 

  Investments, Other Fixed Assets

1,567

1,466

 

      TOTAL ASSETS

20,030

19,659

 

  Payables

 

8,255

7,526

 

  Short-Term Bank Loans

1,150

1,207

 

　

 

　

　

 

  Other Current Liabs

968

1,154

 

      TOTAL CURRENT LIABS

10,373

9,887

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

421

363

 

  Reserve for Retirement Allw

322

312

 

  Other Debts

　

1,347

1,323

 

      TOTAL LIABILITIES

12,463

11,885

 

      MINORITY INTERESTS

 

 

 

Common stock

1,005

1,005

 

Additional paid-in capital

2,968

2,968

 

Retained earnings

3,397

3,698

 

Evaluation p/l on investments/securities

268

176

 

Others

 

(69)

(70)

 

Treasury stock, at cost

(2)

(3)

 

      TOTAL S/HOLDERS` EQUITY

7,567

7,774

　

      TOTAL EQUITIES

20,030

19,659

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

-241

732

 

Cash Flows from Investment Activities

-75

-45

 

Cash Flows from Financing Activities

-52

-218

　

Cash, Bank Deposits at the Term End

　

2,197

2,565

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

7,567

7,774

 

 

Current Ratio (%)

138.38

141.35

 

 

Net Worth Ratio (%)

37.78

39.54

 

 

Recurring Profit Ratio (%)

-0.12

-2.05

 

 

Net Profit Ratio (%)

-0.77

-3.16

 

 

Return On Equity (%)

-3.96

-15.53

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.33

UK Pound

1

Rs.89.05

Euro

1

Rs.72.57

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.