MIRA INFORM REPORT

 

 

Report Date :

22.11.2014

 

IDENTIFICATION DETAILS

 

Name :

INTERSPACE CO LTD

 

 

Registered Office :

Shinjuku NS Bldg 8F, 2-4-1 Nishi-Shinjuku Shinjukuku Tokyo 163-0808

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

November 1999

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is engaged in Internet advising business, media management

 

 

No. of Employees :

311

 

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 551.3 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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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

 

INTERSPACE CO LTD

 

REGD NAME:   KK Interspace

MAIN OFFICE:  Shinjuku NS Bldg 8F, 2-4-1 Nishi-Shinjuku Shinjukuku Tokyo 163-0808 JAPAN

                                    Tel: 03-5339-8680     Fax: 03-5909-4578     -

 

URL:                 http://www.interspace.ne.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Internet advising business, media management

 

 

BRANCHES   

 

Osaka, Fukuoka

 

 

OVERSEAS

 

China, Indonesia, Thailand (--subsidiaries)

 

 

CHIEF EXEC 

 

SHIN’ICHIRO KAWABATA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 16,788 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 981 M

TREND UP                                WORTH             Yen 2,747 M

STARTED         1999                             EMPLOYES      311

 

COMMENT    

 

INTERNET ADVISING BUSINESS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 551.3 MILLION, 30 DAYS NORMAL TERMS

 

Unit: In Million Yen

Forecast figures for the 30/09/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a leading affiliate adviser operating “Access Trade”.  Also runs cell phone community site, child care support services “mama stadium” targeted at housewives and other websites.  Has subsidiaries in China, Indonesia and Thailand.  Stressing overseas business mainly in Asia.

 

 

FINANCIAL INFORMATION

 

The sales volume for Sept/2014 fiscal term amounted to Yen 16,788 million, a 10.6% up from Yen 15,182 million in the previous term.  The recurring profit was posted at Yen 780 million and the net profit at Yen 786 million, respectively, compared with Yen 597 million recurring profit and Yen 197 million net profit, respectively, a year ago.

 

For the current term ending Sept 2015 the recurring profit is projected at Yen 654 million and the net profit at Yen 284 million, respectively, on a 13.2% rise in turnover, to Yen 19,000 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 551.3 million, on 30 days normal terms.

 

 

 

REGISTRATION

           

Date Registered:　      Nov 1999

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:         20 million shares

Issued:                6,934,800 shares

Sum:                   Yen 981 million

 

Major shareholders (%): Shin’ichiro Kawabata (42.2), Junpei Kawabata (7.4), Yuriko Fujita (7.4), Yuki Kawabata (4.1), Shigeru Kawabata (3.3), Company’s Treasury Stock (2.6), Mihoko Ogawa (2.1), Rakuten Securities (1.4), Japan Securities Finance (1.0), Japan Trustee Services T (0.9); foreign owners (1.9)

 

No. of shareholders: 1,971

 

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

 

Managements: Shin’ichiro Kawabata, pres; Yosuke Fukasawa, dir; Toshiaki Hirano, dir; Keita Iwabuchi, dir

 

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

 

Related companies: More Games Co, Interspace (Thailand), IS Unique China, other.

 

 

OPERATION

           

Activities: Internet advising business (93%), media management, others (--7%)

           

Clients: [Mfrs, wholesalers] Opt Inc, Net Marketing, Cyber Agent, NTT Communications, Navitime Japan, other

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] IBEZ, Japan Enterprise, Media Online, other

 

Payment record: No complaints

 

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

 

Bank References:

                        SMBC (Shinjuku-Nishiguchi)

                        Mizuho Bank (Shinjuku-Nishiguchi)

                        Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

30/09/2014

30/09/2013

INCOME STATEMENT

 

　

　

  Annual Sales

　

16,788

15,182

　

  Cost of Sales

13,475

12,331

　

      GROSS PROFIT

3,312

2,850

　

  Selling & Adm Costs

2,531

2,258

　

      OPERATING PROFIT

780

592

　

  Non-Operating P/L

10

5

　

      RECURRING PROFIT

790

597

　

      NET PROFIT

386

197

BALANCE SHEET

 

 

　

　

  Cash

　

2,471

2,387

　

  Receivables

 

2,087

1,614

　

  Inventory

 

　

　

　

  Securities, Marketable

　

　

　

  Other Current Assets

112

97

　

      TOTAL CURRENT ASSETS

4,670

4,098

　

  Property & Equipment

169

120

　

  Intangibles

 

306

244

　

  Investments, Other Fixed Assets

450

446

　

      TOTAL ASSETS

5,595

4,908

　

  Payables

 

2,136

1,842

　

  Short-Term Bank Loans

　

　

　

　

 

　

　

　

  Other Current Liabs

623

529

　

      TOTAL CURRENT LIABS

2,759

2,371

　

  Debentures

 

30

58

　

  Long-Term Bank Loans

　

　

　

  Reserve for Retirement Allw

　

　

　

  Other Debts

　

58

47

　

      TOTAL LIABILITIES

2,847

2,476

　

      MINORITY INTERESTS

 

　

　

Common stock

981

979

　

Additional paid-in capital

725

725

　

Retained earnings

1,124

823

　

Evaluation p/l on investments/securities

7

3

　

Others

 

10

0

　

Treasury stock, at cost

(100)

(99)

　

      TOTAL S/HOLDERS` EQUITY

2,747

2,431

　

      TOTAL EQUITIES

5,595

4,908

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

30/09/2014

30/09/2013

　

Cash Flows from Operating Activities

　

472

504

　

Cash Flows from Investment Activities

-597

-250

　

Cash Flows from Financing Activities

-59

-32

　

Cash, Bank Deposits at the Term End

　

2,171

2,287

ANALYTICAL RATIOS            Terms ending:

30/09/2014

30/09/2013

　

 

Net Worth (S/Holders' Equity)

2,747

2,431

　

 

Current Ratio (%)

169.26

172.84

　

 

Net Worth Ratio (%)

49.10

49.53

　

 

Recurring Profit Ratio (%)

4.71

3.93

　

 

Net Profit Ratio (%)

2.30

1.30

　

　

Return On Equity (%)

14.05

8.10

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.85

UK Pound

1

Rs.97.01

Euro

1

Rs.77.62

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.