MIRA INFORM REPORT

 

 

Report Date :

09.05.2014

 

IDENTIFICATION DETAILS

 

Name :

TOYS’R’US-JAPAN LTD

 

 

Registered Office :

Muza Kawasaki Central Tower F25/26, 1310 Omiyacho Saiwaiku Kawasaki Kanagawa-Pref 212-8566

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2014

 

 

Date of Incorporation :

November, 1989

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Retail of toys, childcare goods, children’s clothing, stationery

 

 

No. of Employees :

1,800

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 


 

Maximum Credit Limit :

Yen 3,069.8 million

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

 

TOYS’R’US-JAPAN LTD

 

REGD NAME:    Toys’R’US KK

MAIN OFFICE:  Muza Kawasaki Central Tower F25/26, 1310 Omiyacho Saiwaiku Kawasaki Kanagawa-Pref 212-8566 JAPAN

                        Tel: 044-549-9030     

Fax: 044-549-9108

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Retail of toys, childcare goods, children’s clothing, stationery, others

 

 

BRANCHES   

 

164 stores nationwide

 

 

OVERSEAS

 

USA (the parent)

 

 

FACTORIES

 

Ichikawa, Kobe (--warehouses)

 

 

OFFICERS

 

MONIKA MERZ, PRES              Zen’ichiro Shiraishi v pres

David J Scgwartz, dir                  Robert S Zarra, dir

                                               

Yen Amount    

 

In million Yen, unless otherwise stated

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 137,906 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 10 M

TREND             SLOW                                      WORTH            Yen 23,282 M   

STARTED         1989                                         EMPLOYES      1,800

 

 

COMMENT

 

RETAILER OF TOYS, CHILDRENCARE GOODS, OTHERS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 3,069.8 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established by Toys’R’US, USA as its Japan operating office for selling toys, childcare goods, children’s clothing, stationery, other.  Operates164 stores nationwide.  Goods are imported.

 

 

FINANCIAL INFORMATION

           

The sales volume for Jan/2014 fiscal term amounted to Yen 137,906 million, a 6% down from Yen 147,345 million in the previous term.  The operations plunged into the red to post Yen 1,587 million recurring loss and Yen 6,502 net losses, respectively, compared with Yen 1,516 million recurring profit and Yen 106 million net profit, respectively, a year ago.

 

For the current term ending Jan 2015 the recurring profit is projected at Yen 1,400 million and the net profit at Yen 110 million, respectively, on a 3% rise in turnover, to Yen 142,000 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 3,069.8 million, on the normal 30 days terms.

 

 

REGISTRATION

 

Date Registered:  Nov 1989

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         20,000 shares

Issued:                20,000 shares

Sum:                   Yen 10 million

Major shareholders (%): TRU Japan Holdings Inc (50), TRU Japan Holdings 2 LLC (50)

 No. of shareholders: 2

 

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

 

 

OPERATION

           

Activities: Retails toys, childcare goods, children’s clothing, stationery, school supplies, game consoles, game software, books & sporting goods, including Internet sales, operating 164 retail stores nationwide (100%)

 

Clients: Consumers 

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Goods are imported from USA, other

 

Payment record: Slow but correct

 

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

 

Bank References:

                        Mizuho Bank (Ginza)

                        SMBC (Shimbashi)

                        Relations: ^Satisfactory

 

 

FINANCES (In Million Yen)

 

       Terms Ending:

31/01/2015

31/01/2014

31/01/2013

31/01/2012

Annual Sales

 

142,000

137,906

147,345

158,380

Recur. Profit

 

1,400

-1,587

1,516

4,021

Net Profit

 

110

-6,502

106

618

Total Assets

 

 

62,823

69,541

74,685

Current Assets

 

 

24,359

24,829

25,565

Current Liabs

 

 

27,775

27,232

30,058

Net Worth

 

 

23,282

29,783

29,672

Capital, Paid-Up

 

 

10

10

10

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.97

-6.41

-6.97

-2.49

    Current Ratio

 

..

87.70

91.18

85.05

    N.Worth Ratio

..

37.06

42.83

39.73

    R.Profit/Sales

 

0.99

-1.15

1.03

2.54

    N.Profit/Sales

0.08

-4.71

0.07

0.39

    Return On Equity

..

-27.93

0.36

2.08

 

Notes: Forecast (or estimated) figures for the 31/01/2015 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.00

UK Pound

1

Rs.101.75

Euro

1

Rs.83.48

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.