MIRA INFORM REPORT

 

 

Report Date :

02.05.2014

 

IDENTIFICATION DETAILS

 

Name :

EISHIN TRADING CO LTD

 

 

Registered Office :

TOC Bldg 9F, 7-22-17 Nishigotanda Shinagawaku Tokyo 141/0034

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

November, 1952

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, retail (in-shop operator) of furniture, apparel

 

 

No. of Employees :

75

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 


 

Status :

Moderate

Payment Behaviour :

Slow

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

 

EISHIN TRADING CO LTD

 

REGD NAME:   Eishin Bussan KK

MAIN OFFICE:  TOC Bldg 9F, 7-22-17 Nishigotanda Shinagawaku Tokyo 141/0034 JAPAN

                        Tel: 03-5719-7260    

Fax: 03-5719-7266

 

                        *.. Moved to the caption address from the former as given

 

URL:                 http://www.eishin-kk.co.jp/

E-Mail address:import-dept@eishin-kk.co.jp

 

 

ACTIVITIES

 

Import, retail (in-shop operator) of furniture, apparel

 

 

IN-SHOP(S)

 

Tokyo, Osaka, Kobe, Chiba, Kyoto, Nagoya, Hiroshima, other (Tot 18)

 

 

FACTORIES  

 

Kawasaki, Osaka (--distribution centers)

 

 

OVERSEAS

 

Equatoriale SRL (Milan), Camex (Barcelona) (--purchasing agents)

 

 

OFFICER(S)  

 

YOSHINOBU SEKINO, PRES                

Kiyoshi Hashimoto, s/mgn dir

Kiyomi Satoh, dir

 

 

Yen Amount    

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK           A/SALES          Yen 1,540 M

PAYMENTS      SLOW               CAPITAL           Yen 60 M

TREND             SLOW               WORTH            Yen (-) 517 M

STARTED         1952                 EMPLOYES      75

 

 

COMMENT    

 

IMPORTER AND IN-SHOP OPERATOR SPECIALIZING IN FURNITURE AND        APPAREL

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established originally as Private Limited Company for exporting household items, and in 1964 upgraded the legal status to Limited Company, named as captioned.  In 1960 started importing furniture and apparel primarily from Europe.  Operates a total 18 in-shops nationwide at major department stores and chain stores.  Import sources have since been expanded into India, Philippines, China, Taiwan, and other Asian countries.  Handling items: furniture, wall hangings, interior decorative items, lighting fixtures, curtain cloths; lingerie, foundation garments, beach wear, other apparel goods.  Also offers house interior design, plan and architect services.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2013 fiscal term amounted to Yen 1,540 million, a 5% up from Yen 1,466 million in the previous term.  The recurring profit was posted at Yen 35 million and the net profit at Yen 79 million, respectively, compared with Yen 47 million recurring profit and Yen 45 million net profit a year ago.

 

For the current term ending Dec 2014 the recurring profit is projected at Yen 40 million and the net profit at Yen 85 million, respectively, on a 3% rise in turnover, to Yen 1,580 million.

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements. 


REGISTRATION

           

Date Registered:  Nov 1952

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         480,000 shares

Issued:                120,000 shares

Sum:                   Yen 60 million

Major shareholders (%): Yoshinobu Sekino (30), Masahiro Tanaka (25), Masataka

Tanaka (16), Kiyoshi Hashimoto (12), Katsumi Satoh (10)

No. of shareholders: 11

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

 

 

OPERATION

 

Activities: Importer and in-shop operator of: (Home Furnishing Div): furniture, table sets, table sets, cupboards, cabinets, dining wall hangings, carved ornaments, lighting fixtures, china, glassware, curtain cloths, upholstery fabrics, restaurant chairs, others (--65%); (Apparel Div): lingerie, foundation garments, nightwear, swimming suits, beach/resort wears, bathrobes, stockings, other apparel goods (--35%).  Offers home interior design, plan & architect services, too.  Goods are wholly imported.  (% is all about)

 

Clients: [Consumers, department stores] In-shops at: Takashimaya, Isetan, Daimaru, Komatsu Store, Seibu Department Stores, Tokyo Interior, other.

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Imports from Spain, Italy, France, Belgium, UK, Germany, USA, India, Taiwan, China, Philippines, etc.  For home interior design & architect services, handles imported products of: Orac Décor (Belgium), Andy Thornton, Oakleaf (--UK), While River (USA), Wilson Wilcox, other.

 

Payment record: Slow

 

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

 

Bank References:

                        Mizuho Bank (Inaricho)

                        MUFG (Ueno)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

       Terms Ending:

31/12/2014

31/12/2013

31/12/2012

31/12/2011

Annual Sales

 

1,580

1,540

1,466

1,300

Recur. Profit

 

40

35

47

 

Net Profit

 

85

79

45

-795

Total Assets

 

 

1,033

980

986

Current Assets

 

 

164

116

 

Current Liabs

 

 

100

47

 

Net Worth

 

 

-517

-596

-542

Capital, Paid-Up

 

 

60

60

60

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.60

5.05

12.77

-0.91

    Current Ratio

..

164.00

246.81

..

    N.Worth Ratio

..

-50.05

-60.82

-54.97

    R.Profit/Sales

2.53

2.27

3.21

..

    N.Profit/Sales

5.38

5.13

3.07

-61.15

 

Notes:  Forecast (or estimated) figures for the 31/12/2014 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.34

UK Pound

1

Rs.101.45

Euro

1

Rs.83.31

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.