MIRA INFORM REPORT

 

 

Report Date :

13.01.2014

 

IDENTIFICATION DETAILS

 

Name :

LIXIL VIVA CORPORATION

 

 

Registered Office :

298-1 Kami Ageo Saitama-Pref

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

June, 1993

 

 

Com. Reg. No.:

0300-01-041872 (Saitama-Ageo)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Home Center chains operation (from DIY to housing reforming goods)

 

 

No. of Employees :

1,204

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

LIXIL VIVA CORPORATION

 

REGD NAME:    KK Lixil Viva

MAIN OFFICE:  298-1 Kami Ageo Saitama-Pref JAPAN

                        Tel: 048-773-3815     

 

                        *.. The is the Annex Building

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Home Center chains operation (from DIY to housing reforming goods)

 

 

BRANCHES   

 

89 stores from Hokkaido to western Japan

 

 

OFFICERS

 

KATSUHIRO MAMENARI, PRES

Kazuyuki Yonezawa, dir             Osamu Watanabe, dir

Iwao Okura, dir                          Yoshizumi Kanamori, dir

           

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 154,658 M

PAYMENTS      REGULAR         CAPITAL           Yen 20,000 M

TREND             SLOW              WORTH            Yen 27,018 M

STARTED         1993                 EMPLOYES      1,204

 

COMMENT    

 

HOME CENTER OPERATOR.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

HIGHLIGHTS

           

The subject company was established originally in 1977 as Viva Home KK, and I 1993 the firm went under Tostem Corp, it was reorganized and started operation by the name of Tostem Viva Corp.  In 2011, the firm became a subsidiary of Lixil Group Corp and renamed as captioned.  This is an operator of home center chains, operating 89 stores from Hokkaido to western Japan, handling DIY to house reform goods, others (See OPERATION).  Goods are also sold online. Opened in autumn 2013 Osaka Dome store in Osaka. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 154,658 million, a 3% down from Yen 159,545 million in the previous term.  Sales continued down in the northern Japan after the earthquake there in 2012.  The recurring profit was posted at Yen 4,594 million and the net profit at Yen 2,371 million, respectively, compared with Yen 6,554 million recurring profit and yen 3,468 million net profit, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 4,700 million and the net profit at Yen 2,500 million, respectively, on a 5% rise in turnover, to Yen 162,000 million.  Newly opened Osaka store will contribute. 

 

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

 

 

REGISTRATION

 

Date Registered:          Jun 1993

Regd No.:                     0300-01-041872 (Saitama-Ageo)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  800,000 shares

Issued:                         100,000 shares

Sum:                            Yen 20,000 million

Major shareholders (%): Lixil Group Corp* (100)

           

*.. Largest manufacturer of housing facilities & comprehensive maker of building materials, Tokyo, founded 1949, listed Tokyo S/E, capital Yen 68,121 million, sales Yen 1,436,395 million, operating profit Yen 50,485 million, recurring profit Yen 53,063 million net profit Yen 21,347 million, total assets Yen 1,498,822 million, net worth Yen 571,625 million, employees 47,000, pres Yoshiaki Fujimori

 

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

OPERATION

           

Activities: Operates home center stores, 89 stores from Hokkaido down to western Japan, selling from DIY to housing renovation goods: DIY goods (51%), home improvements (31%), others (18%).

 

(Handling Items): DIY goods, lumber, materials, electronic materials, paints, adhesives, home interior goods, storages, working tools, lighting, home electronics, gardening tools & supplies, pets, pet foods, living necessities, house ware, stationery, car goods, cycling goods, sporting goods, leisure goods housing equipment, exteriors/interiors, house reform (renovation) goods, other

 

Clients: Consumers 

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Kao Customer Marketing, Paltac, Japell Co, Iris Ohyama Inc, Eco Trading, Hanwa Corp, Yamazen Corp, Tokiwa Shoukai, Yuwa Corp, Hodaka Corp, Koizumi Seiki Corp, other

 

Payment record: Regular

 

Location: Business area in Ageo City, Saitama-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        SMBC (Ohtemachi)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

162,000

154,658

159,545

141,676

Recur. Profit

 

4,700

4,594

6,554

5,200

Net Profit

 

2,500

2,371

3,468

2,878

Total Assets

 

 

115,774

116,743

111,335

Current Assets

 

 

41,237

40,542

34,457

Current Liabs

 

 

55,542

54,728

71,851

Net Worth

 

 

27,018

26,518

23,866

Capital, Paid-Up

 

 

20,000

20,000

20,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.75

-3.06

12.61

5.56

    Current Ratio

 

..

74.24

74.08

47.96

    N.Worth Ratio

..

23.34

22.71

21.44

    R.Profit/Sales

 

2.90

2.97

4.11

3.67

    N.Profit/Sales

1.54

1.53

2.17

2.03

    Return On Equity

..

8.78

13.08

12.06

 

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

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.94

UK Pound

1

Rs.102.06

Euro

1

Rs.84.31

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.