MIRA INFORM REPORT

 

 

Report Date :

30.07.2014

 

IDENTIFICATION DETAILS

 

Name :

LAWSON HMV ENTERTAINMENT INC

 

 

Registered Office :

Osaki East Tower 6F, 1-11-2 Osaki Shinagawaku Tokyo 141-0032

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2014

 

 

Date of Incorporation :

July 1992

 

 

Com. Reg. No.:

0107-01-022515 (Tokyo-Shinagawaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is Chain Shop Operator of CD/DVD, Music, Tickets, Audio Disk

 

 

No of Employees :

1,165

 

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 560.5 Million

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

 

LAWSON HMV ENTERTAINMENT INC

 

 

REGD NAME

 

KK Lawson HMV Entertainment

 

 

MAIN OFFICE

 

Osaki East Tower 6F, 1-11-2 Osaki Shinagawaku Tokyo 141-0032 JAPAN

 

Tel: 03-6730-2200      Fax: 03-6730-2216

 

URL:                 http://www.lawson.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Shop operator of CD/DVD, tickets, audio disk records

 

 

BRANCHES   

 

51 stores nationwide

 

 

OFFICERS

 

KEN SAKAMOTO, PRES                       Masaharu Kamo, rep dir

      Seiichi Ohno, dir                              Hisaya Moritani, dir

Yutaka Yoshitake, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 45,313 M

PAYMENTSREGULAR   CAPITAL           Yen 100 M

TREND STEADY           WORTH            Yen 7,124 M     

STARTED         1992                 EMPLOYES      1,165

 

COMMENT

 

SHOP OPERATOR OF CD/DVD, MUSIC RECORDS, OTHER.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: ESTIMATED AT YEN 560.5 MILLION, ON 30 DAYS NORMAL TERMS.

                       

 

HIGHLIGHTS

           

The subject company was established on the basis of a division separated from Lawson Inc, convenience store operator at the caption address 8See REGISTRATION).   This is a chain store operating selling CD/DVE, music records, tickets, other.  In Sept 2011 merged with HMV Japan Inc.  .

 

 

FINANCIAL INFORMATION

           

The sales volume for Feb/2014/2013 fiscal term amounted to Yen 45,313 million, a 1% up from Yen 44,939 million in the previous term.  The recurring profit was posted at Yen 2,805 million and the net profit at Yen 2,550 million, respectively, compared with Yen 2,436 million recurring profit and Yen 2,450 million net profit, respectively, a year ago.

 

For the current term ending Feb 2015 the recurring profit is projected at Yen 2,900 million and the net profit at Yen 2,600 million, respectively, on a 3% rise in turnover, to Yen 46,600 million.  Business is seen expanding steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 560.5 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:      Jul 1992

Regd No.:                 0107-01-022515 (Tokyo-Shinagawaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         8,000 shares

Issued:                2,000 shares

Sum:                   Yen 100 million

 

Major shareholders (%): Lawson Inc* (100)

 

*.. Second largest convenience store operator, at the caption address, founded 1975, listed Tokyo S/E, capital Yen 58,506 million, sales Yen 485,247 million, operating profit Yen 68,126 million, recurring profit Yen 68,880 million, net profit Yen 37,965 million, total assets Yen 620,992 million, net worth Yen 245,288 million, employees 6,336, pres Gen’ichi Tamatsuka

 

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

 

 

OPERATION

 

Activities: Chain shop operator of CD/DVD, music records, tickets, audio disk records, other, operating 51 stores nationwide (--100%)

 

Clients: Consumers 

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hanshin Electric Railway, Avex Live Creative, Sunday Fork Promotion, Tokyo Dome, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Tokyo)

Fukuoka Bank (Akasakamon)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

28/02/2015

28/02/2014

28/02/2013

29/02/2012

Annual Sales

　

46,600

45,313

44,939

25,545

Recur. Profit

　

2,900

2,805

2,436

1,678

Net Profit

　

2,600

2,550

2,450

2,073

Total Assets

　

　

34,548

35,309

21,819

Current Assets

　

　

30,170

31,144

18,300

Current Liabs

　

　

26,053

29,377

18,624

Net Worth

　

　

7,124

4,682

2,224

Capital, Paid-Up

　

　

100

100

100

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.84

0.83

75.92

158.97

    Current Ratio

 

..

115.80

106.01

98.26

    N.Worth Ratio

..

20.62

13.26

10.19

    R.Profit/Sales

 

6.22

6.19

5.42

6.57

    N.Profit/Sales

5.58

5.63

5.45

8.12

    Return On Equity

..

35.79

52.33

93.21

 

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

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.04

Euro

1

Rs.80.74

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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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.