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Report Date : |
30.09.2013 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU HOME FASHION CORPORATION |
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Registered Office : |
Asahi Seimei Sunaga Bldg 5F, 2-2-6 Nihombashi-Bakurocho Chuoku Tokyo
103-0002 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
June, 1996 |
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Com. Reg. No.: |
(Tokyo-Chuoku) 37347 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export, wholesale of home furnishings, reception agent for
convenience Stores |
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No. of Employees : |
86 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
No Complaints |
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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 – 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 |
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High |
B2 |
|
Very High |
C1 |
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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 |
ITOCHU HOME
FASHION CORPORATION
Itochu Home Fashion KK
Asahi Seimei Sunaga Bldg 5F, 2-2-6 Nihombashi-Bakurocho Chuoku Tokyo
103-0002 JAPAN
Tel: 03-3663-9431 Fax:
03-3663-0660
URL: http://www.itochuhf.co.jp
E-Mail address: info@itochuhf.co.jp
Import, export, wholesale of home furnishings, reception agent for
convenience Stores
Osaka, Fukuoka
China
Tochigi (Distribution Center)
KENJI INOUE, PRES
Tomihiko Ishikawa, dir
Yen Amount: In million Yen,
unless otherwise stated
FINANCES FAIR A/SALES Yen 10,552 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
375 M
TREND UP WORTH Yen 885 M
STARTED 1996 EMPLOYES 86
TRADING FIRM SPECIALIZING IN HOME FURNISHINGS, RECEPTION AGENT BUSINESS,
OWNED BY ITOCHU CORP.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The subject company was established as Sanki Interior Corp and in 1998
merged with Itochu Living Corporation and renamed as captioned, and became
Itochu Corp’s subsidiary. This is a
trading firm, with mfg division, for import, export and wholesale of home
furnishings: interior goods, upholstery, beds & beddings, apparel, other
(See OPERATION). In Apr/2012, convenience stores reception
agent business was transferred from Itochu Corporation. Goods are manufactured at subcontracted mfr
in Vietnam and imported. Operates online
shop “Plus Value”. Clients include major
chain stores, specialty stores, other, nationwide.
The sales volume for Mar/2013 fiscal term amounted to Yen 10,552
million, a 35% up from Yen 7,830 million in the previous term. This is attributed to the transfer of
convenience store receiving agent business from the parent, Itochu Corp. The recurring profit was posted at Yen 554
million and the net profit at Yen 336 million, respectively, compared with Yen
372 million recurring profit and Yen 171 million net profit, respectively, a
year ago.
For the current term ending Mar 2014 the recurring profit is projected
at Yen 600 million and the net profit at Yen 400 million, respectively, on a9%
rise in turnover, to Yen 11,500 million.
The convenience store reception agent business will increase.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date
Registered: Jun 1996
Regd
No.: (Tokyo-Chuoku)
37347
Legal
Status: Limited
Company (Kabushiki Kaisha)
Authorized: 30,000 shares
Issued:
7,505 shares
Sum:
Yen
375.259 million
Major
shareholders (%): Itochu Corp* (100)
*.. Itochu Corp, one of top five general
trading houses, founded 1949, listed Tokyo, S/E, capital Yen 202,241 million,
sales Yen 12,551,557 million, operating profit Yen 244,219 million, recurring
profit Yen 311,112 million, net profit Yen 280,297 million, total assets Yen
7,117,446 million, net worth Yen 1,765,435 million, employees 77,513, pres
Masahiro Okafuji
Consolidated Financials are attached (See SUPPLEMENTS)
Activities: Imports, exports
and wholesales home furnishings: beds, beddings, blanket, pillows, other (47%),
footwear, men’s shoes (18%), sports shoes (18%), curtains, sofas, other
furnishings (17%)
Goods are mostly manufactured at subcontracted factory in Vietnam.
(Handling Items): Curtains,
blinds, roll screen, coverings, sofa cover, cushion, stuffed animals &
dolls, furniture, kitchen cloth, tableware, beds & beddings, blanket,
pillows, towelket, towels, matt, pat, home wear, bags, porches, footwear,
gifts, accessories, other
Clients: [Supermarkets,
chain stores] Ryohin Kikaku Co, Aeon Co, Ito-Yokado, QVC Japan (TV shopping),
Nitori Co, QVC Japan, Otsu Corp, Fujiwara Co, Sanyo Feather Co, Curtain Jyutan
Oogoku, other
No. of accounts: 300
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Imports from Vietnam, other.
Domestically supplied from: Itochu Corp, Sanyo Feather Co, Fujiwara Co,
Flag Sports, Laforet Co, other
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho Bank (Yokoyamacho)
SMBC (Asakusabashi)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
31/03/2012 |
31/03/2011 |
|
|
Annual Sales |
|
11,500 |
10,552 |
7,830 |
7,380 |
|
Recur. Profit |
|
600 |
554 |
372 |
49 |
|
Net Profit |
|
400 |
336 |
171 |
-69 |
|
Total Assets |
|
|
6,262 |
5,409 |
4,668 |
|
Current Assets |
|
|
5,897 |
5,083 |
4,342 |
|
Current Liabs |
|
|
5,065 |
4,650 |
4,021 |
|
Net Worth |
|
|
885 |
647 |
353 |
|
Capital, Paid-Up |
|
|
375 |
375 |
335 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
8.98 |
34.76 |
6.10 |
9.25 |
|
|
Current Ratio |
|
.. |
116.43 |
109.31 |
107.98 |
|
N.Worth Ratio |
.. |
14.13 |
11.96 |
7.56 |
|
|
R.Profit/Sales |
|
5.22 |
5.25 |
4.75 |
0.66 |
|
N.Profit/Sales |
3.48 |
3.18 |
2.18 |
-0.93 |
|
|
Return On Equity |
.. |
37.97 |
26.43 |
-19.55 |
|
Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.78 |
|
|
1 |
Rs.101.42 |
|
Euro |
1 |
Rs.84.67 |
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 |
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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 |
|
<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.