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Report Date : |
16.03.2013 |
IDENTIFICATION DETAILS
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Name : |
COSTCO WHOLESALE JAPAN LTD |
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Registered Office : |
3-1-4 Ikegami Shincho Kawasakiku Kanagawa-Pref 210-0832 |
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Country : |
Japan |
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Date of Incorporation : |
April 1998 |
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Com. Reg. No.: |
0200-01-079681 (Yokohama-Kawasaki) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Membership warehouse store operator |
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No. of Employees : |
5,665 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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 (31.03.2011) |
Current Rating (30.06.2012) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
COSTCO WHOLESALE JAPAN LTD
REGD NAME: Costco
Wholesale Japan KK
MAIN OFFICE: 3-1-4
Ikegami Shincho Kawasakiku Kanagawa-Pref 210-0832 JAPAN
Tel: 044-281-2600
E-Mail address: info@costco.co.jp
Membership
warehouse store operator
Hayama (Fukuoka), Makuhari (Chiba),
Tamasakai (Tokyo), Amagasaki (Hyogo), Kanazawa Seaside (Yokohama), other (Tot
11)
KEN TERIO, PRES
(Only phonetically spelled)
James B Murphy,
rep dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 65,000 M
PAYMENTSREGULAR CAPITAL Yen
7,505 M
TREND UP WORTH Yen 9,000 M
STARTED 1998 EMPLOYES 5,665
MEMBERSHIP WAREHOUSE STORE OPERATOR, WHOLLY
OWNED BY
COSTCO WHOLESALE CORP, USA.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
.
The subject
company was established by Costco Wholesale Corp, USA, in order to advance into
Japan for operating its membership warehouse stores. In 1999, opened the first store in Hisayama
(Fukuoka), followed by Chiba (Dec/2000), Tokyo (Sept/2002), Hyogo (Apr/2003)
and Kanazawa stores (Oct/2004). The
stores employ two membership systems: Business (Corporate) & Gold Star
(Individuals). Business members account
for about 30% of the total, while turnover from Business members stands about
70% of total sales. The firm stocks
5,000 items, selling in bulk at low prices.
Handling items are: fresh & frozen foods, processed foods, jewelry
& watches, house-ware, apparel, gardening tools, sporting goods, other. Now operates 11 stores centrally in the
greater-Tokyo region and vicinities.
The financials are
consolidated by the US parent, Costco Wholesale Corp, and not disclosed.
The sales volume for Aug/2012 fiscal term is
estimated amounted to Yen 65,000 million, an 8% up from Yen 60,000 million in
the previous term. Profits are not
disclosed. The figures have not been
precisely confirmed by the firm, and only collected from outside source.
The financial situation
is considered maintained FAIR and good for ORDINARY business engagements.
Date Registered: Apr 1998
Regd No.: 0200-01-079681 (Yokohama-Kawasaki)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 150.1 million shares
Issued:
150.1 million shares
Sum: Yen 7,505 million
Major shareholders (%): Costco Wholesale
Corp, USA (100)
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Membership warehouse
store operator, with 5 stores operating, wholesaling & retailing of the
following goods (--100%)
(Product
categories – typical & not confined to these items):
Personal: jewelry &
watches; apparel (quality brands/Kirkland Signature apparel of dresses,
sweaters, jeans, jackets, socks & accessories; health & beauty:
shampoo, soap, toothbrushes, shaving products, lotions, foundation, vitamins,
remedies, diapers, brand-name perfumes, other; office supplies (desks &
office furniture, paper, pads, stationery, file cabinets, tables, other wide
range of office accessories); seasonal/toys (toys, seasonal/holiday items);
books & media (imported books & magazines, DVD’s, videos, music CD’s,
PC software);
Outdoor/Home: lawn &
garden (live plants, fertilizers, gardening tools & supplies, patio
furniture, barbecues); hardware /storage (power & hand tools, ladders,
compressors, pressure washers); sporting goods (snowboards, golf clubs,
bicycles, camping equipment, fitness equipment); auto (oils, chemicals, auto cleaners,
car batteries, other automotive accessories);
Processed
foods: frozen foods (fresh frozen chicken, vegetables & seafood); snacks
& candy (name-brand candy bars, candies, chewing gums, mints, chips, nuts,
jerky, rice crackers); dry groceries (soy sauce, teas, olive oils, coffee,
cranberry products, other imported items); liquor (wine, spirits, sake, beer);
Fresh
foods: fresh meat (beef, port, chicken, other); fresh fish (including sushi
& sashimi trays); fresh produce (fresh fruits & vegetables – washed,
cut and assorted); fresh bakery (breads, pies, muffins, cookies, pastries,
croissants, custom-order cakes); fresh Deli (cheeses, ham, sausages, seaweed,
kimchi, sushi, sashimi, salads);
Services: optical
(eyeglasses, frames & lenses, sunglasses); 1 hour photo shop; tire center
(brand-name vehicle tires, including balancing & installation services);
Food Court (quick snacks); delivery services (offers delivery services from
freezers, cooler items to sofas, refrigerators and up to pallet quantities).
About 40% of the goods are imported from the
parent and its group firms in USA, other.
Clients: Individual consumers, business firms, other
No. of accounts:
Unavailable
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Kao Corp (4%), San Rio Corp (4%), Proctor & Gamble Far East
Inc (3%), Itochu Corp, Suntory, other.
Also, imports from Costco Wholesale Corp,
USA and its group firms.
Payment record: Regular
Location: Business area in Tokyo.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References:
MUFG (Shibuya)
SMBC (Kumamoto)
Relations:
Satisfactory
(In Million Yen)
NOT DISCLOSED AND UNAVAILABLE
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.16 |
|
|
1 |
Rs.81.74 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.