MIRA INFORM REPORT

 

 

Report Date :

21.06.2014 

 

IDENTIFICATION DETAILS

 

Name :

ARATA CORPORATION

 

 

Registered Office :

1-1389 Kaijincho-Minami Funabashi City Chiba-Pref 273-0024

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April 2002

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of detergent, cosmetics, paper-sanitary goods

 

 

No. of Employees

2,984

 

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 :

Good

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 – 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

 

ARATA CORPORATION

 

REGD NAME:   KK Arata

MAIN OFFICE:  1-1389 Kaijincho-Minami Funabashi City Chiba-Pref 273-0024 JAPAN

                                    Tel: 047-495-1233     Fax: 047-495-1243

 

*.. The given address is its Osaka Office     -

 

URL:                 http://www.arata-gr.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Import, export, wholesale of detergent, cosmetics, paper-sanitary goods

 

 

BRANCHES

 

Nationwide (80)

 

 

CHIEF EXEC 

 

NOBUYUKI HATANAKA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 651,954 M

PAYMENTS      REGULAR         CAPITAL           Yen 5,000 M

TREND             UP                    WORTH            Yen 51,041 M

STARTED                     2002                 EMPLOYES      2,984

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN DETERGENT, COSMETICS, OTHER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

601,949

4,257

1,015

(%)

45,665

(Consolidated)

31/03/2012

606,705

3,915

1,628

0.79

47,324

31/03/2013

616,327

3,605

1,768

1.59

49,044

31/03/2014

651,954

4,388

2,435

5.78

51,041

31/03/2015

640,000

4,400

1,900

-1.83

..

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the top-ranked and independent wholesaler of detergents, cosmetics, paper/sanitary goods, toiletries, and other daily necessities.  Established in April 2002, with capital/business integration among three influential local wholesalers.  Also engaged in development of PB products.  The company will close 3 distribution bases in the Chubu area and integrate functions at the base in Konan, Aichi-Pref, with the aim of improving its distribution network efficiently.  It will actively launch private brand products for women, including cream products.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 651,954 million, a 5.8% up

from Yen 616,327 million in the previous term.  Sales of cosmetics and detergents at drug stores grew.  The recurring profit was posted at Yen 4,388 million and the net profit at Yen 2,435 million, respectively, compared with Yen 3,605 million recurring profit and Yen 1,768 million net profit, respectively, a year ago. 

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 4,400 million

and the net profit at Yen 1,900 million, on a 1.8% fall in turnover, to Yen 640,000 million.  The company plans full-swing efforts in private brand products and online sales, but contribution to earnings will remain minor.  Operating profits will inch up.

 

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

 

 

 

 

 

REGISTRATION

           

Date Registered:　Apr 2002

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       150 million shares

Issued:                79,301,124 shares

Sum:                   Yen 5,000 million

 

Major shareholders (%): Employees’ S/Holding Assn (8.8), Otowa Shokusan Co (6.8), Nobuyuki Hatanaka (4.9), Lion Corp (4.5), Company’s Treasury Stock (2.7), Sakuji Tanaka (2.4), Seinosuke Hatanaka (2.4), Kisosei Shoten (2.1), Aibisu Co (1.7), Nobuko Tanaka (1.6); foreign owners (1.8)

 

No. of shareholders: 2,542

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Nobuyuki Hatanaka, pres; Akira Shimawaki, v pres; Yoichi Suzuki, v pres; Seinosuke Hatanaka, v pres; Saburo Motoyama, s/mgn dir; Fumiaki Kobayashi, s/mgn dir; Mikihisa Ito, mgn dir; Haruki Kataoka, dir

 

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

 

Related companies: Fashion Arata, Japel, other.

 

 

OPERATION

 

Activities: Imports, exports and wholesales: healthcare & beauty goods (29%), toiletries (26%), paper products (21%), household goods (7%), others (17%)

 

Clients: [Mfrs, wholesalers] Kawachi Pharmacy, DCM Holdings, Sun Drug, Uny Corp,

Sugi Holdings, Cosmos Pharmacy, Don Quiquote, Matsumoto Kiyoshi Pharmaceutical, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Proctor & Gamble Japan, Lion Corp, Uni Charm, Oji Paper,

Kobayashi Pharmaceutical Co, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Marunouchi)

Mizuho Bank (Tokyo)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

　

651,954

616,327

  Cost of Sales

585,224

552,041

      GROSS PROFIT

66,730

64,285

  Selling & Adm Costs

62,258

60,559

      OPERATING PROFIT

4,472

3,726

  Non-Operating P/L

-84

-121

      RECURRING PROFIT

4,388

3,605

　

      NET PROFIT

2,435

1,768

BALANCE SHEET

  Cash

　

10,965

8,108

  Receivables

89,542

82,592

  Inventory

30,981

31,009

  Securities, Marketable

　

　

  Other Current Assets

26,527

24,097

      TOTAL CURRENT ASSETS

158,015

145,806

  Property & Equipment

48,772

45,980

  Intangibles

4,289

4,108

  Investments, Other Fixed Assets

10,126

10,805

      TOTAL ASSETS

221,202

206,699

  Payables

69,039

65,031

  Short-Term Bank Loans

36,155

34,636

　

　

　

  Other Current Liabs

17,716

16,848

      TOTAL CURRENT LIABS

122,910

116,515

  Debentures

1,500

　

  Long-Term Bank Loans

33,217

27,930

  Reserve for Retirement Allw

6,589

7,977

  Other Debts

　

5,945

5,233

      TOTAL LIABILITIES

170,161

157,655

      MINORITY INTERESTS

Common stock

5,000

5,000

Additional paid-in capital

23,083

23,083

Retained earnings

22,524

20,705

Evaluation p/l on investments/securities

1,132

939

Others

15

28

Treasury stock, at cost

(713)

(711)

      TOTAL S/HOLDERS` EQUITY

51,041

49,044

　

      TOTAL EQUITIES

221,202

206,699

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

　

1,481

9,959

Cash Flows from Investment Activities

-5,878

-4,054

Cash Flows from Financing Activities

7,246

-7,699

　

Cash, Bank Deposits at the Term End

　

9,731

6,857

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

Net Worth (S/Holders' Equity)

51,041

49,044

Current Ratio (%)

128.56

125.14

Net Worth Ratio (%)

23.07

23.73

Recurring Profit Ratio (%)

0.67

0.58

Net Profit Ratio (%)

0.37

0.29

Return On Equity (%)

4.77

3.60

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.28

UK Pound

1

Rs.102.77

Euro

1

Rs.82.12

 

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%)

 

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.