MIRA INFORM REPORT

 

 

Report Date :

18.03.2013

 

IDENTIFICATION DETAILS

 

Name :

YAGI & CO LTD

 

 

Registered Office :

2-2-8 Kyutaromachi Chuoku Osaka 540-8660

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

April 1918

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of textiles, textile products

 

 

No. of Employees :

405

 

 

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 :

Regular

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 and address

 

YAGI & CO LTD

REGD NAME:   KK Yagi

MAIN OFFICE:  2-2-8 Kyutaromachi Chuoku Osaka 540-8660 JAPAN

Tel: 06-6266-7300     Fax: 06-6271-0065

                       

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

E-Mail address:            soumu_enquiry@yaginet.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of textiles, textile products

 

 

BRANCHES

 

Tokyo, Nagoya, Fukui, Wakayama

 

 

OVERSEAS   

 

Hong Kong, China (2),Thailand, Vietnam (--subsidiaries); Italy, Istanbul (--agents)

 

 

CHIEF EXEC

 

HIDEO YAGI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY:     

 

FINANCES        FAIR                 A/SALES          Yen 111,162 M

PAYMENTSREGULAR   CAPITAL           Yen 1,088 M

TREND STEADY           WORTH            Yen 24,238 M

STARTED         1918                 EMPLOYES      405

 

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN TEXTILES. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

Notes: Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

The subject company was established originally in 1893 when Yosaburo Yagi started a store selling spun yarns, on his account.  Incorporated in 1918, the firm has been succeeded by his descendants.  This is a trading firm specializing in import, export and wholesale of a wide range of textiles, textile materials, cloths, knit fabrics and secondary textile products.  Active in overseas, with rep offices and production subs in HK, Thailand, China and others.  Boosting handling in imports.  The firm aims to shift sales of Tila March bag brand from outlets in department stores to independent stores.  The first store will be opened in Fukuoka.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 111,162 million, a 2.2% up from Yen 108,762 million in the previous term.  The recurring profit was posted at Yen 3,518 million and the net profit at Yen 1,856 million, respectively, compared with Yen 3,059 million recurring profit and Yen 1,723 million net profit, respectively, a year ago.

 

            (Apr/Dec/2012 results): Sales Yen 86,548 million (up 2.1%), operating profit Yen 2,878 million (down 9.8%), recurring profit Yen 2,996 million (up 0.3%), net profit Yen 1,849 million (up 8.4%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 3,700 million and net profit at Yen 2,270 million, respectively, on a 3.5% rise in turnover, to Yen 115,000 million.  Profit margin on raw materials and textiles is narrowing due to declining domestic demand and tougher competition.  Growth of secondary textile is compensating, but costs on planning and production businesses on consignment are swelling.  Operating profit will show only a minor growth. 

 

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

 

 

REGISTRATION

 

Date Registered:  Apr 1918

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         45,568,000 shares

Issued:                10,568,000 shares

Sum:                   Yen 1,088 million

           

Major shareholders (%): Company’s Treasure Stock (20.5), Company’s Kyoeikai Assn (8.6), Mizuho Bank (3.9), SMBC (3.5). Employees’ S/Holding Assn (2.8), MUFG (2.8), Goldman Sachs International (2.6), Dai-ichi Life Ins (2.3), Cross Plus (2.0), Tachibana Securities (1.8); foreign owners (4.8)

 

No. of shareholders: 919

 

Listed on the S/Exchange (s) of: Osaka (Second section)

 

Managements: Hideo Yagi, pres & CEO; Yukihiro Asano, s/mgn dir; Iwao Nakane, mgn dir; Satoshi Bishu, mgn dir

 

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

 

Related companies: Violetta, Yagi Bldg, Puff Japan, Marusu, and Yagi Hong Kong

 

 

OPERATION

 

Activities: A specialized trading house of textiles (sales breakdown): Fiber raw materials (17%): cotton yarns, cloths, synthetic yarns such as polyester, nylon, acrylic yarns & cloths; textiles, cotton fabrics, knit fabrics, synthetic resin fabrics; knit cloth (14%); textile secondary products (66%), others (3%).

 

Clients: [Textile mfrs, wholesalers] Toray Ind, Toyobo Co, Fuji Spinning Co, Cloth Plus, Scroll Corp, Senshukai, Point Inc, other

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Toray Ind, Teijin Fiber, Fuji Spinning Co, Nisshinbo Ind, Toyobo Co, Toray Opelontex Co, other.

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Osaka-Chuo)

SMBC (Semba)

Relations: Satisfactory

 

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

111,162

108,762

 

  Cost of Sales

95,854

94,393

 

      GROSS PROFIT

15,308

14,370

 

  Selling & Adm Costs

11,573

10,972

 

      OPERATING PROFIT

3,734

3,397

 

  Non-Operating P/L

-216

-338

 

      RECURRING PROFIT

3,518

3,059

　

      NET PROFIT

1,856

1,723

BALANCE SHEET

 

 

 

 

  Cash

　

3,223

3,870

 

  Receivables

 

30,132

29,183

 

  Inventory

 

6,368

6,436

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,258

1,084

 

      TOTAL CURRENT ASSETS

40,981

40,573

 

  Property & Equipment

4,171

4,054

 

  Intangibles

 

25,414

54,054

 

  Investments, Other Fixed Assets

(19,096)

(48,363)

 

      TOTAL ASSETS

51,470

50,318

 

  Payables

 

14,078

14,405

 

  Short-Term Bank Loans

4,647

6,116

 

　

 

　

　

 

  Other Current Liabs

5,733

4,545

 

      TOTAL CURRENT LIABS

24,458

25,066

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

341

274

 

  Reserve for Retirement Allw

688

631

 

  Other Debts

　

1,744

1,731

 

      TOTAL LIABILITIES

27,231

27,702

 

      MINORITY INTERESTS

 

 

 

Common stock

1,088

1,088

 

Additional paid-in capital

805

805

 

Retained earnings

23,284

21,806

 

Evaluation p/l on investments/securities

655

498

 

Others

 

34

46

 

Treasury stock, at cost

(1,628)

(1,628)

 

      TOTAL S/HOLDERS` EQUITY

24,238

22,615

　

      TOTAL EQUITIES

51,470

50,318

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

2,350

229

 

Cash Flows from Investment Activities

-1,593

-1,071

 

Cash Flows from Financing Activities

-1,882

1,251

　

Cash, Bank Deposits at the Term End

　

2,050

3,178

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

24,238

22,615

 

 

Current Ratio (%)

167.56

161.86

 

 

Net Worth Ratio (%)

47.09

44.94

 

 

Recurring Profit Ratio (%)

3.16

2.81

 

 

Net Profit Ratio (%)

1.67

1.58

 

 

Return On Equity (%)

7.66

7.62

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.16

UK Pound

1

Rs.81.74

Euro

1

Rs.70.50

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.