MIRA INFORM REPORT

 

 

Report Date :

07.11.2013

 

IDENTIFICATION DETAILS

 

Name :

NITORI CO LTD

 

 

Registered Office :

3-6-20 Kamiya Kitaku Tokyo 115-0043

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2014

 

 

Date of Incorporation :

March 2010

 

 

Com. Reg. No.:

4300-01-044958

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Chain store operator of furniture & interior goods; online shops

 

 

No. of Employees :

2,856

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

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 – 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

 

NITORI CO LTD

REGD NAME:    KK Nitori

MAIN OFFICE:  3-6-20 Kamiya Kitaku Tokyo 115-0043 JAPAN

                                    Tel: 03-6741-1111         

 

                        *.. The is its Sapporo Head Office and registered address

   

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

E-Mail address: info@nitori.co.jp

 

 

ACTIVITIES

 

Chain store operator of furniture & interior goods; online shops

 

 

BRANCH

 

Tokyo

 

 

STORES  

 

300 stores, including 14 overseas stores

 

 

OVERSEAS   

 

USA, Indonesia, Vietnam, Thailand, Malaysia, Chine (4), Taiwan.

 

 

FACTORIES  

 

Subsidiaries both at home and abroad

 

 

OFFICERS

 

AKIO NITORI, PRES & CEO

Kiyoshi Sugiyama, s/mgn dir

Toshiyuki Shirai, s/mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 341,752 M

PAYMENTS                  REGULAR         CAPITAL           Yen 1,000 M

TREND             STEADY           WORTH            Yen 44,778 M

STARTED                     2010                 EMPLOYES      2,856

 

 

COMMENT    

 

FURNITURE & INTERIOR GOODS CHAIN STORE OPERATOR. 

FINANCIAL SITUTION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1972 by Nitori family for selling furniture.  In 2010 formed a holding company, Nitori Holdings Co Ltd, and became its wholly owned subsidiary, and was delisted from the Tokyo S/E.  This is an operator of furniture and interior specialty store chain originating in Hokkaido.  Ranked top in Hokkaido, though most of the stores located in eastern Japan in Honshu mainland.  Now operates 14 in Tokyo, 16 in Kanagawa-Pref and 17 in Osaka-Pref.   Operates 6 overseas factories in S/E Asia with overseas sales constituting majority of sales.  Handling items are: living room furniture, storage furniture & cabinets, dining furniture, beds, other furniture, interior goods.  Diversifying product lineups, including small articles and accessories.  Goods are retailed online, too.  Operating stores total 300, including 14 overseas stores.

 

 

FINANCIAL INFORMATION

 

The sales volume for Feb/2013 fiscal term amounted to Yen 341,752 million, a 5% up from Yen 325,164 million in the previous term.  35 new stores were opened including overseas in Taiwan.  The recurring profit was posted at Yen 52,580 million and the net profit at Yen 30,617 million, respectively, compared with Yen 47,301 million recurring profit and Yen 26,094 million net profit, respectively, a year ago. 

 

For the current term ending Feb 2014 the recurring profit is projected at Yen 54,000 million and the net profit at Yen 32,000 million, respectively, on a 5% rise in turnover, to Yen 360,000 million.  Profitability of foreign-developed imported products is improving.  Weaker Yen may contribute to sales growth in Yen terms.

 

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

 

REGISTRATION

 

Date Registered:  Mar 2010

Regd No.:            4300-01-044958 (Sapporo-Kitaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         80,000 shares

Issued:                20,000 shares

Sum:                   Yen 1,000 million

Major shareholders (%): Nitori Holdings Co Ltd* (100)

 

*.. Holding Company, Sapporo, founded 2010, listed Tokyo S/E, capital Yen 13,370 million, sales Yen 348,789 million, operating profit Yen 61,550 million, recurring profit Yen 62,195 million, net profit Yen 35,811 million, total assets Yen 298,178 million, net worth Yen 218,758 million, employees 7,496, pres Akio Nitori, concurrently

 

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

 

Related companies: (Domestic) Nitori Holdings Co Ltd, Nitori Logistics Co, Nitori Furniture Co, Nitori Public Co, Nitori Facility Co

(Overseas) Nitori USA Inc, PT Nitori Furniture Indonesia, Nitori Furniture Vietnam EPE, Nitori (Thailand) Co Ltd, Nitori (Malaysia) Sdn Bhd, Nitori China Co Ltd, Shanghai Liqiao Industrial Co Ltd, Nitori Taiwan Co Ltd, Huizhou Shiniao Logistics Co Ltd, Nitori India Private Ltd, Decohome China Co Ltd

           

 

OPERATION

 

Activities: Planning and sale of furniture & interior merchandise (home furnishing products), interior decorative coordinating for newly built homes, sale of products developed and imported from overseas, operating 300 stores domestic, including 14 stores abroad (--100%)

 

(Sales Items by Divisions):

Living room furniture: sofas, tables, chairs, living room sets, including office furniture;

Storage furniture: wardrobes, dressers, sideboard, chests, cocktail cabinets, other;

Dining furniture: dining tables, corner cupboard, other;

Beds: beds, other accessories;

Interior goods: curtains, rugs & carpets, gardening tools, kitchenware, tableware,  

bedspreads, ornamental goods, bedspreads, other;

                       

Goods are imported from overseas subsidiary mfrs in: China, Indonesia, Thailand, Malaysia, Hong Kong

Goods are retailed online and catalogue sales, too.

 

Clients: Consumers, business firms, other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nitori Holdings Co, Nitori Furniture Co, Nitori Home Logistics Co, Nitori Public Co, other.

Imports from Vietnam, Indonesia, Thailand, Malaysia, China, Hong Kong, other (--subsidiary & affiliated firms)

 

Payment record: Regular

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

 

Bank References:

Mizuho Bank (Sapporo)

MUFG (Sapporo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

28/02/2014

28/02/2013

29/02/2012

28/02/2011

Annual Sales

　

360,000

341,752

325,164

158,731

Recur. Profit

　

54,000

52,580

47,301

20,213

Net Profit

　

32,000

30,617

26,094

11,741

Total Assets

　

　

98,603

93,680

75,378

Current Assets

　

　

61,504

68,785

68,244

Current Liabs

　

　

49,159

51,152

48,856

Net Worth

　

　

44,778

38,070

24,024

Capital, Paid-Up

　

　

1,000

1,000

1,000

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.34

5.10

104.85

- - -

    Current Ratio

 

..

125.11

134.47

139.68

    N.Worth Ratio

..

45.41

40.64

31.87

    R.Profit/Sales

 

15.00

15.39

14.55

12.73

    N.Profit/Sales

8.89

8.96

8.02

7.40

    Return On Equity

..

68.38

68.54

48.87

 

Notes: The 28/02/2011 fiscal term is the initial accounting term from the reorganization.

Forecast (or estimated) figures for the 28/02/2014 fiscal term

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.92

UK Pound

1

Rs.99.59

Euro

1

Rs.83.63

 

 

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.