MIRA INFORM REPORT

 

 

Report Date :

21.07.2014

 

IDENTIFICATION DETAILS

 

Name :

MEGA SPORTS CO LTD

 

 

Registered Office :

Nihombashi Kakigaracho Bldg, 1-36-5 Nihombashi-Kakigaracho Tokyo 103-0014

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2014

 

 

Date of Incorporation :

August 1995

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, retail of sporting goods, sports gears, wears.

 

 

No. of Employees

680

 

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 1,172.4 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 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

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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

 

MEGA SPORTS CO LTD

 

REGD NAME:    KK Mega Sports

MAIN OFFICE:  Nihombashi Kakigaracho Bldg, 1-36-5 Nihombashi-Kakigaracho Tokyo

103-0014 JAPAN

Tel: 03-5644-3666      Fax: 03-5644-3668

 

URL:                 http://www.aeon.inf (Of the parent, Aeon Co Ltd)

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Imports, retail of sporting goods, sports gears, wears, other

 

 

SHOPS    

 

86 stores nationwide (“The Sports Authority” stores)

 

 

OFFICERS

 

MANABU MINAMIYAMA, PRES

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 65,000 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 450 M

TREND             SLOW                          WORTH            Yen 2,340 M    

STARTED         1995                             EMPLOYES      680

 

 

COMMENT

 

RETAILER OF SPORTING GOODS, SPORTS GEARS, WEARS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 1,172.4 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established by Aeon Co Ltd (See REGISTRATION) as its subsidiary stores handling in sporting goods, sports gears, wears & shoes, etc.  Operates 93 sports shops nationwide, named as “The Sports Authority” stores.  Goods are also sold online.  .

 

 

FINANCIAL INFORMATION

           

Financials are consolidated by the parent, Aeon Co Ltd, and only partially disclosed. Disclosed.  Profits are not precisely disclosed and only estimated from the past.

 

The sales volume for Feb/2014 fiscal term amounted to Yen 65,000 million, a 3% down from Yen 67,000 million in the previous term.  The net profit is estimated posted at Yen 150 million, compared with Yen 160 million a year ago.

 

For the current term ending Feb 2015 the net profit is projected at Yen 160 million, on a 3% rise in turnover, to Yen 67,000 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,172.4 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Aug 1995

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         36,000 shares

Issued:                9,000 shares

Sum:                   Yen 450 million

Major shareholders (%): Aeon Co Ltd* (80.1), The Sports Authority (19.9)

  No. of shareholders: 2

 

*.. Top-ranked operator of general merchandise stores (GMS), Chiba, founded 1926, listed Tokyo S/E, capital Yen 220,007 million, sales Yen 6,395,142 million, operating profit Yen 171,432 million, recurring profit Yen 176,854 million, net profit Yen 45,600 million, total assets Yen 6,815,241 million, net worth Yen 1,120,095 million, employees 109,523, pres Motoya Okada

 

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

 

 

OPERATION

           

Activities: Imports and retails sporting goods, sports gears, sports wears, shoes, other, operating 86 stores nationwide named as “The Sports Authority” (--100%)

 

Clients: Consumers 

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nike Japan, Mizuno Corp, SSK, Asics Corp, Globeride Inc, Adidas Japan, Goldwin, Descente Ltd, other

 

Payment record: No complaints

 

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

 

Bank References:

Mizuho Bank (Uchisaiwaicho)

SMBC (Tokyo-Chuo)

Relations: Satisfactory

 

FINANCES

 

(In Million Yen)

Terms Ending:

　

28/02/2015

28/02/2014

28/02/2013

29/02/2012

Annual Sales

　

67,000

65,000

67,000

72,000

Recur. Profit

　

..

..

..

..

Net Profit

　

160

150

160

180

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

2,340

2,190

2,030

Capital, Paid-Up

　

　

450

450

450

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.08

-2.99

-6.94

4.35

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

0.24

0.23

0.24

0.25

 

Notes: Financials are only partially disclosed.  Profits are not precisely disclosed and only estimated.

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

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.33

UK Pound

1

Rs.103.18

Euro

1

Rs.81.58

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

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.