MIRA INFORM REPORT

 

 

Report Date :

09.07.2014

 

IDENTIFICATION DETAILS

 

Name :

AMERICAN RAG CIE JAPAN INC

 

 

Registered Office :

2-11-1 Sendagaya Shibuyaku Tokyo

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2014

 

 

Date of Incorporation :

October, 1998

 

 

Com. Reg. No.:

0110-01-031224 (Tokyo-Shibuyaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, retail of lady’s & men’s wear, accessories, shoes, household goods, CDs

 

 

No. of Employees :

149

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 

 

Company name and address

 

AMERICAN RAG CIE JAPAN INC

 

REGD NAME:    American Rag Cie Japan KK

MAIN OFFICE:  Shinko No.2 Bldg 6F, 2-22-16 Jingumae Shibuyaku Tokyo 150-0001 JAPAN

                                    Tel: 03-6758-0610         

Fax: 03-6758-0613     

 

                        *.. Registered at: 2-11-1 Sendagaya Shibuyaku Tokyo;

                        Moved to the caption address

                                               

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

E-Mail address: (thru the URL)   

 

 

ACTIVITIES

 

Import, retail of lady’s & men’s wear, accessories, shoes, household goods, CDs

 

 

STORES  

 

Tokyo (4), Yokohama, Osaka (2), Nagoya Kyoto, Fukuoka (Tot 13)

 

 

OFFICERS

 

HIROSHI YOSHIDA, PRES                                                        

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                                         A/SALES          Yen 4,600 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 10 M

TREND             SLOW                                      WORTH            Yen 1,437 M

STARTED                     1998                                         EMPLOYES      149

 

COMMENT    

 

RETAILER SPECIALIZING IN APPAREL & ACCESSORIES, AFFILIATED TO

SAZABY INC.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was originated in Los Angeles for exporting designer brand clothing and accessories into Japan, and later reorganized as a JV company by Sazaby Inc (now Sazaby League Inc) and Industries Wartz, USA.  This is a retailer specializing in men’s & lady’s clothing, accessories, shoes, household good and CD’s.  Operates 13 stores nationwide.  Handling items include the products of the major shareholder, Sazaby League Inc.  Goods are imported from USA, Europe, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Feb/2014 fiscal term amounted to Yen 4,600 million, a 2% down from Yen 4,700 million in the previous term.  Opened 2 new shops, but closed down flag shop in Aoyama.  The operations continued in the red to post Yen 336 million net losses, compared with Yen 10 million net losses a year ago.  The losses are referred to the costs of new shop building and increased costs of imports.

 

For the current term ending Feb 2015the operations are projected to come back to profitability to post Yen 50 million, on a 3% rise in turnover, to Yen 4,750 million

 

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

 

 

REGISTRATION

 

Date Registered:  Oct 1998

Regd No.:             0110-01-031224 (Tokyo-Shibuyaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         800 shares

Issued:                200 shares

Sum:                   Yen 10 million

            Major shareholders (%): Sazaby League Inc* (80), Industries Wartz Inc, USA (20)

No. of shareholders: 2

 

*.. Sazaby Inc, wholesaler & retailer of in-house designed brand of handbags &

accessories, Tokyo, founded 2010, capital Yen 90 million, sales Yen 7,500 million, net profit Yen 1,542 million, employees 421, pres Masatokui Mori

           

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

OPERATION

           

Activities: Retails men’s & lady’s wear, accessories, whose, household goods, CD’s, other (--100%)

 

Clients: Consumers

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Marubeni Fashion Link, Shimohira Co, Itochu Corp, Tamurakoma & Co, Lee Japan, other.

Imports from USA, other

 

Payment record: Slow but correct

 

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

 

Bank References:

                        MUFG (Shinjuku-Nishi)

                        Mizuho Bank (Aoyama)

                        Relations: Satisfactory

 

FINANCES (In Million Yen)

 

       Terms Ending:

28/02/2015

28/02/2014

28/02/2013

29/02/2012

Annual Sales

　

4,750

4,600

4,700

4,900

Recur. Profit

　

　

　

　

　

Net Profit

　

50

-336

-10

82

Total Assets

　

　

2,022

2,270

2,359

Current Assets

　

　

1,265

1,488

1,388

Current Liabs

　

　

455

375

455

Net Worth

　

　

1,437

1,774

1,785

Capital, Paid-Up

　

　

10

10

10

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.26

-2.13

-4.08

2.96

    Current Ratio

 

..

278.02

396.80

305.05

    N.Worth Ratio

..

71.07

78.15

75.67

    R.Profit/Sales

 

..

..

..

..

    N.Profit/Sales

1.05

-7.30

-0.21

1.67

    Return On Equity

..

-23.38

-0.56

4.59

 Notes: Forecast (or estimated) figures for the 28/02/2015 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.80

UK Pound

1

Rs.102.42

Euro

1

Rs.81.32

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.