MIRA INFORM REPORT

 

 

Report Date :

18.09.2013

 

IDENTIFICATION DETAILS

 

Name :

J FRONT DESIGN & CONSTRUCTION CO LTD

 

 

Registered Office :

Ueyama Bldg 5F, 2-1-3 Minami-Semba Chuoku Osaka 542-0081

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2013

 

 

Date of Incorporation :

November 1998

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Construction company, house & building finishing interior works, constructs hotels, restaurants, shops, also wholesaler of furniture, house interior items

 

 

No. of Employees :

310

 

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

 

Maximum Credit Limit :

Yen 921.8 Million

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

 

J FRONT DESIGN & CONSTRUCTION CO LTD

 

 

REGD NAME 

 

KK J Front Kenso

 

 

MAIN OFFICE

 

Ueyama Bldg 5F, 2-1-3 Minami-Semba Chuoku Osaka 542-0081 JAPAN

Tel: 06-4705-6200     

Fax: 06-4705-6900

 

*.. The is its one of Hyogo Stores

 

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES  

 

Housing construction, interior works, other

 

 

BRANCHES

           

Tokyo, Sapporo, Sendai, Kobe, Nagoya, Fukuoka, Okinawa

 

 

STORES  

 

Tokyo (2), Kobe (3) (as given)

 

 

OFFICERS

 

SADAYUKI AYUKAWA, PRES

Kazuo Masuzawa, dir

Hiroto Tsukada, dir        

           

Yen Amount:     In million Yen, unless otherwise stated

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 32,483 M

PAYMENTS                  No Complaints          CAPITAL           Yen 100 M

TREND             UP                                WORTH            Yen 4,686 M

STARTED                     1998                             EMPLOYES      310

 

 

COMMENT    

 

CONSTRUCTION AND HOUSE INTERIOR FINISHING WORKS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 921.8 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established by J Front Retailing Co Ltd (See REGISTRATION) as its construction and house finishing interior works company.  It constructs hotels, restaurants, shops, offices, other.  It also makes furniture, house interior furniture, other.  Clients include all construction companies, department stores & group firms, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Feb/2013 fiscal term amounted to Yen 32,483 million, an 11% up from Yen 29,261 million in the previous term.  Housing furniture and interior items were sold well.  The recurring profit was posted at Yen 630 million and the net profit at Yen 373 million, respectively, compared with Yen 558 million recurring profit and Yen 239 million net profit, respectively, a year ago.

 

For the current term ending Feb 2014 the recurring profit is projected at Yen 650 million and the net profit at Yen 380 million, respectively, on a 3% rise in turnover, to Yen 33,500 million.   

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 921.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Nov 1998

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         8,000 shares

Issued:                 shares

Sum:                   Yen 2,000 million

Major shareholders (%): 100

No. of shareholders: J Front Retailing Co Ltd* (100)

 

*.. Holding company founded Sept 2007 thru management consolidations between Daimaru & Matsuzakaya Holdings, Tokyo, listed Tokyo S/E, capital Yen 30,000 million, sales Yen 1,092,756 million, operating profit Yen 30,857 million, recurring profit Yen 32,202 million, net profit Yen 12,183 million, total assets Yen 1,009,165 million, net worth Yen 341,318 million, employees 8,323, pres Ryoichi Yamamoto

 

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

 

 

OPERATION

           

Activities: Construction company, house & building finishing interior works, constructs hotels, restaurants, shops, also wholesales furniture, house interior items, others (--100%)

 

Clients: [Mfrs, wholesalers] Daimaru & Group firms, Matsuzakaya & its Group firms, Takenaka Corporation, Obayashi Corporation, Shimizu Corp, Kajima Corp, other 

 

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Semba Corp, Nomura Co, Sumitomo Light Metal Ind, Hakusuisha, Ishimaru, other

 

Payment record: No Complaints 

 

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

 

Bank References:

MUFG (Osaka-Nishi)

SMBC (Semba)

Relations: Satisfactory

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

28/02/2014

28/02/2013

29/02/2012

28/02/2011

Annual Sales

 

33,500

32,483

29,261

34,995

Recur. Profit

 

650

630

558

 

Net Profit

 

380

373

239

165

Total Assets

 

 

12,753

14,238

17,797

Current Assets

 

 

11,816

13,386

 

Current Liabs

 

 

7,539

9,219

 

Net Worth

 

 

4,686

4,383

4,143

Capital, Paid-Up

 

 

100

100

100

Div.P.Share(¥)

 

 

0.00

4.00

70.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.13

11.01

-16.39

39.01

    Current Ratio

 

..

156.73

145.20

..

    N.Worth Ratio

..

36.74

30.78

23.28

    R.Profit/Sales

 

1.94

1.94

1.91

..

    N.Profit/Sales

1.13

1.15

0.82

0.47

    Return On Equity

..

7.96

5.45

3.98

 

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

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.38

UK Pound

1

Rs.100.86

Euro

1

Rs.84.59

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.