MIRA INFORM REPORT

 

 

Report Date :

08.10.2014

 

IDENTIFICATION DETAILS

 

Name :

FASIC CO LTD

 

 

Registered Office :

63-1 Gosai Sanjo Ichinomiya Aichi-Pref 494-0003

 

 

Country :

Japan

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

September 1974

 

 

Com. Reg. No.:

1800-01-083560

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports and wholesales men’s apparel: suits, formal wear, bulzons, trousers, pants, jackets, slacks, other (--100%)

 

 

No of Employees :

24

 

 

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 58.0 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 & address

 

FASIC CO LTD

 

 

REGD NAME

 

KK Fasic

 

 

MAIN OFFICE

 

63-1 Gosai Sanjo Ichinomiya Aichi-Pref 494-0003 Japan

Tel: 0586-63-2300      Fax: 0586-63-2322

 

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

E-Mail address: (thru the URL)

 

ACTIVITIES:     Import, wholesale of men’s apparel, accessories

BRANCHES:     Tokyo (agent)

OVERSEAS:     China, Indonesia

FACTORIES:    China (3), Indonesia (opened in 2011)

 

OFFICERS:       ISSEI SHIBATA, PRES 

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 6,867 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 25 M

TREND UP                                WORTH            Yen 672 M

STARTED         1974                             EMPLOYES      24

 

COMMENT:      TRADING FIRM SPECIALIZING IN MEN’S CLOTHING.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                        MAX CREDIT LIMIT: YEN 58.0 MILLION, 30 DAYS NORMAL TERMS

 

HIGHLIGHTS

           

This is a trading firm, with mfg division, for import and wholesale of men’s apparel: dresses, suits, slacks, other (See OPERATION).  Mfg is all subcontracted to its subsidiaries in China (3) and Indonesia.  The Indonesian Factory was opened in 2011, producing 450,000 men’s suits & shirts.  Clothing include shape memorized suits & shirts (wash-and-wear clothes).  Goods are imported.  Main client is Aoki Corp, men’s apparel chain stores, where 80& of products are supplied.  .

 

 

FINANCIAL INFORMATION

           

The sales volume for Jun/2013 fiscal term amounted to Yen 6,867 million, an 8% up from Yen 6,347 million in the previous term.  Stable and increased orders received from the main client, Aoki International Corp.  The recurring profit was posted at Yen 136 million and the net profit at Yen 62 million, respectively, compared with Yen 132 million recurring profit and Yen 28 million net profit, respectively, a year ago.

 

For the term that ended Jun 2014 the recurring profit was projected at Yen 150 million and the net profit at Yen 70 million, respectively, on a 5% rise in turnover, to Yen 7,200 million.  Weaker Yen may have contributed to raise revenues in Yen terms.  Final results are yet to be released. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 58.0 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:           Sept 1974

Regd No.:                                 1800-01-083560 (Aichi-Ichinomiya)

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                  200,000 shares

Issued:                         40,000 shares

Sum:                            Yen 25 million

Major shareholders (%): Kazunari Shibata (37), Kinji Adachi (36), Kayoko Adachi (15), Fashion Sewing (11), Alta Moda Co (10)

No. of shareholders:     8

 

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

 

 

OPERATION

           

Activities: Imports and wholesales men’s apparel: suits, formal wear, bulzons, trousers, pants, jackets, slacks, other (--100%)

Goods are manufactured at its subsidiary factories in China (3) and Indonesia

 

Clients: [Apparel chain store] Aoki International (80%), supermarkets, other 

No. of accounts: 100

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Takisada Nagoya, Toyama & Co, Takaoka & Co, Homeostyle Co, other

Imports from China, Indonesia, other

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Ichinomiya)

Shoko Chukin Bank (Nagoya)

Relations: Satisfactory

 

 

 

FINANCES

 

(In Million Yen)

 

Terms Ending:

30/06/2014

30/06/2013

30/06/2012

30/06/2011

Annual Sales

 

7,200

6,867

6,347

5,390

Recur. Profit

 

150

136

132

163

Net Profit

 

70

62

28

16

Total Assets

 

 

5,672

5,152

4,056

Current Assets

 

 

4,823

4,249

3,200

Current Liabs

 

 

3,909

2,943

2,244

Net Worth

 

 

672

613

587

Capital, Paid-Up

 

 

25

25

25

Div.Ttl in Million (¥)

 

 

2.5

2.5

2.5

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.85

8.19

17.76

13.64

    Current Ratio

 

..

123.38

144.38

142.60

    N.Worth Ratio

 

..

11.85

11.90

14.47

    R.Profit/Sales

 

2.08

1.98

2.08

3.02

    N.Profit/Sales

 

0.97

0.90

0.44

0.30

    Return On Equity

 

..

9.23

4.57

2.73

 

Notes: Forecast (or estimated) figures for the 30/06/2014 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.35

UK Pound

1

Rs.98.71

Euro

1

Rs.77.47

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 


 

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.