MIRA INFORM REPORT

 

 

Report Date :

14.11.2013

 

IDENTIFICATION DETAILS

 

Name :

YAMANO MUSIC CO LTD

 

 

Registered Office :

4-5-6 Ginza Chuoku Tokyo 104-0061

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

Dec 1926

 

 

Com. Reg. No.:

(Tokyo-Chuoku) 059219

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, wholesales and retails (including online shops) musical instruments and accessories; operates piano & electronic organ classes

 

 

No. of Employees :

255

 

 

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 & address

 

YAMANO MUSIC CO LTD

 

REGD NAME:    KK Yamano Gakki (Gakki means musical instruments)

 

MAIN OFFICE:  4-5-6 Ginza Chuoku Tokyo 104-0061 JAPAN

Tel: 03-3562-5051          Fax: 03-3862-8686    

 

* The is its accounting/operation divisions

 

URL:                 http://www.yamano-music.co.jp/

E-Mail address: info@yamano-music.co.jp

 

 

ACTIVITIES

           

Imports, wholesale, retail of musical instruments; operation of music classes

 

 

SHOPS

           

Tokyo, Chiba, Saitama, Kanagawa, Osaka, Hiroshima, Fukuoka, other (Tot 34)

 

Music Classes: Tokyo (12), Hiroshima, other (Tot 20 (--Piano/electronic organ classes)

 

 

OFFICER(S)

           

MASAHIKO YAMANO, PRES     Susumu Ikeda, v pres                

Kikutoshi Andoh, s/mgn dir                     Takashi Nonomura, dir   

Masataka Hayasaka, dir

                      

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 18,250 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 100 M

TREND SLOW                          WORTH            Yen 3,925 M

STARTED         1926                             EMPLOYES      255

 

COMMENT

           

IMPORTER, WHOLESALER AND RETAILER OF MUSICAL INSTRUMENTS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

            The subject company was established originally in 1892 by Seitaro Yamano for selling musical instruments, on his account.  Incorporated in 1926, the firm has been succeeded by his descendants.  Masahiko is the founder’s great grandson, who took the pres office in 2003.  Imports, wholesales and retails musical instruments, CD’s, DVD’s, AV software, other accessories.  Operates a total 35 retail shops, including in-shop stores in department stores, nationwide.   Goods are also widely retailed online.  Also operates a total 20 music classes/saloons centrally in Tokyo.  The given address is its international trading & administration divisions.  The firm is essentially owned by the Yamano family.

           

 

FINANCIAL INFORMATION

 

            Financials are only partially disclosed as is the case with family-based companies.

 

            The sales volume for Mar/2013 fiscal term amounted to Yen 18,250 million, a 1% down from Yen 18,500 million in the previous term.  Consumer spending was sluggish.  Closed down 3 music classes during the term.  The net profit was posted at Yen 100 million, compared with Yen 130 million a year ago. 

 

For the current term ending Mar 2014 the net profit is projected at Yen 150 million, on a 3% rise in turnover, to Yen 18,790 turnover, at Yen 21,000 million.

           

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

 

 

REGISTRATION

 

Date Registered:                    Dec 1926

Regd No.:                                 (Tokyo-Chuoku) 059219

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  16 million shares

Issued:                         4 million shares

Sum:                            Yen 200 million

 

     Major shareholders (%): Masahiko Yamano (36), Masamitsu Yamano (17), Kimiko Yamano (12), Yamano Creates (7), Mari Yamano (4)

No. of shareholders: 80

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

 

 

OPERATION

 

Activities: Imports, wholesales and retails (including online shops) musical instruments and accessories; operates piano & electronic organ classes (--100%).

 

Operates a total 34 retail shops and 20 music classes nationwide.

 

(Handling items): pianos, electronic organs, guitars, ukulele, digital keyboards, flute, clarinet, trumpet, horn, other including accessories, CD’s DVD’s AV software, other.

 

           

Clients: Consumers, retail stores, other

Wholesaling clients: Mitsukoshi Isetan Department Store, Takashimaya, Sogo Department Store, Aeon Retail Co, Seibu Department Store, Odakyu Department Store, Parco Co, other

No. of accounts: 500 (wholesale div)

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Gibson Musical Instruments, Fender Musical Instruments,

Yamaha Corp, Sony Music Distribution, Toshiba EMI, Pony Canyon, Avex Marketing, Victor Entertainment, Universal Music, EMI Music Japan, other.

 

Payment record: No Complaints

 

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

 

Bank References:

Mizuho Bank (Ginza)

MUFG (Ginza)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

Terms Ending:

 

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

18,790

18,250

18,500

22,000

Recur. Profit

 

..

..

..

..

Net Profit

 

150

100

130

150

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

3,925

3,814

3,723

Capital, Paid-Up

 

 

100

100

100

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.96

-1.35

-15.91

-4.35

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

0.80

0.55

0.70

0.68

 

Notes: Financials are not disclosed from Mar/2009 fiscal term. 

Forecast (or estimated) figures for the 31/03/2014 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.65

UK Pound

1

Rs.101.16

Euro

1

Rs.85.55

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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%)