MIRA INFORM REPORT

 

 

Report No. :

313833

Report Date :

07.04.2015

 

IDENTIFICATION DETAILS

 

Name :

JALUX INC.

 

 

Registered Office :

IS Bldg, 3F, 3-32-42 Higashi Shinagawa, Shinagawa-Ku, Tokyo 140-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Year of Establishment :

1962

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Supply of Aircraft Parts & Components; Management of Duty-Free Shops.

 

 

No. of Employees :

347

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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

 

ENGLISH COMPANY NAME

JALUX INC.

Japanese company name

KK Jalux

Registered Office

1. Street Number and District

IS Bldg, 3F, 3-32-42 Higashi Shinagawa, Shinagawa-ku

2. City and Perefecture

Tokyo

3. ZIP Code

140-0002

4. Country

JAPAN

TEL

03-6367-8800

FAX

n/a

URL

www.jalux.com

Email Address

info@support.jalux.com

Activities (Services & Products)

Import, supply of aircraft parts & components; management of duty-free shops

 

 

SUMMARY OF REPORT

 

Annual Sales (MM YEN)

99,837

Capital Amount (MM YEN)

2,559

Net Worth (MM YEN)

15,848

FINANCES

FAIR

TREND

UP

EMPLOYEES

347

 

 

OTHER INFORMATION FOLLOWS:

Year Started

1962

Year Registered

1962

Major Shareholders

1

Sojitsu Corp.(22%)

2

JAL (21.4%)

3

Japan Airport Bdg (8%)

Number of Shareholders

14,977

Authorized Shares (MM)

20

Issued Shares (MM)

12.7

Executives

PRESIDENT

AKINOBU YOKOO

Vice President

Kunio Hirata

Director

Tadashi Sato

Main Banks

1

MUFG (Head Office)

2

Relations

Satisfactory

Clients

1

IHI

2

Jalux Airport

3

JAL

4

Daimaru Matsuzakaya

5

JAL DFS

Suppliers

1

JALUX America

2

Pernod Ricard Japan

3

Japan Airport Delica

4

Yantai Shanghai Foodstuff

5

Japan Tobacco

Branches

1

Tokyo (5 in ttl)

Factories

1

None

Overseas

1

US

2

Thailand

3

Hong Kong and others

 

 

HIGHLIGHT AND COMMENT

 

The subject company was established as a trading firm, named Nikko Shoji KK, by JAL, nation’s largest airline, at the caption address, Tokyo.  Renamed as captioned in Jun 2001.  It has 3 major business units, 1) Aviation Business & Service Unit, 2)Marketing Unit, 3)Food & Beverage Unit.


1) Aviation Business & Service Unit: They continually strive to expand their business areas by using their expertise nurtured in the aviation-related business.  They also provide complex services that meet the needs of both Japanese and overseas customers.


2) Marketing Unit: They plan and provide a variety of products and services in extensive business fields with companies in Japan and worldwide.  For example, they plan and sell inflight and mail order products, original goods, propose merchandise for brands, design and produce paper media, plan and run events, and purchase goods.

3) They offer products and services in a variety of categories to help our customers enjoy better lifestyles, including imports of fresh products and wines, mail order services, and airport retail shops.  They have developed and maintained impressive sales channels by utilizing their domestic and international transport networks.

 

 

FINANCIAL information

 

The sales volume for March 2014 fiscal term amounted to Yen 99,837 million, a 16% up from Yen 85,937 million in the previous term.   The recurring profit was posted at Yen 1,767 million and the net profit at Yen 967 million, respectively, compared with Yen 1,247 million recurring profit and Yen 780 million net profit, respectively, a year ago.

 For the term that ended Mar 2015 the recurring profit was projected at Yen 2,200 million and the net profit at Yen 1,100 million, respectively, on a 6% rise in turnover, to Yen 106,000 million.  Final results are yet to be released.

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

 

 

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

31/03/2011

95,541

1,603

492

(%)

13,975

31/03/2012

89,082

1,656

693

-6.76

14,375

31/03/2013

85,937

1,247

780

-3.53

14,823

31/03/2014

99,837

1,767

967

16.17

15,848

31/03/2015

106,000

2,200

1,100

6.17

16,948

 Forecast (or estimated) figures for 2015  term.

     *..Unit: Million Yen

 

 


FINANCES

(Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

  Annual Sales

 

99,837

85,937

 

  Cost of Sales

 

80,297

66,945

 

      GROSS PROFIT

19,540

18,993

 

  Selling & Adm Costs

17,833

17,601

 

      OPERATING PROFIT

1,707

1,392

 

  Non-Operating P/L

60

-144

 

      RECURRING PROFIT

1,767

1,247

 

      NET PROFIT

 

967

780

BALANCE SHEET

 

 

  Cash

 

6,361

5,220

 

  Receivables

7,705

8,034

 

  Inventory

6,718

5,502

 

  Securities, Marketable

 

 

 

  Other Current Assets

3,387

2,656

 

      TOTAL CURRENT ASSETS

24,171

21,412

 

  Property & Equipment

4,703

5,335

 

  Intangibles

508

408

 

  Investments, Other Fixed Assets

3,822

4,087

 

      TOTAL ASSETS

33,204

31,242

 

  Payables

7,026

6,790

 

  Short-Term Bank Loans

1,894

2,045

 

 

 

 

 

  Other Current Liabs

 

5,126

4,920

 

      TOTAL CURRENT LIABS

14,046

13,756

 

  Debentures

 

 

 

  Long-Term Bank Loans

2,082

1,464

 

  Reserve for Retirement Allw

553

9

 

  Other Debts

 

674

1,190

 

      TOTAL LIABILITIES

17,356

16,419

 

      MINORITY INTERESTS

 

 

Common stock

2,559

2,559

 

Additional paid-in capital

711

711

 

Retained earnings

12,177

11,400

 

Evaluation p/l on investments/securities

 

 

 

Others

545

300

 

Treasury stock, at cost

(143)

(147)

 

      TOTAL S/HOLDERS` EQUITY

15,848

14,823

 

      TOTAL EQUITIES

33,204

31,242

CONSOLIDATED CASH FLOWS

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

1,920

2,103

 

Cash Flows from Investment Activities

-1,122

-1,197

 

Cash Flows from Financing Activities

86

-1,145

 

Cash, Bank Deposits at the Term End

 

6,303

5,217

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

Net Worth (S/Holders' Equity)

15,848

14,823

 

Current Ratio (%)

172.09

155.65

 

Net Worth Ratio (%)

47.73

47.45

 

Recurring Profit Ratio (%)

1.77

1.45

 

Net Profit Ratio (%)

0.97

0.91

 

 

Return On Equity (%)

6.10

5.26

 

 

 

Terms Ending:

31/03/2014

31/03/2013

IND/03/2014

 

  Annual Sales

 

99,837

85,937

 

  Cost of Sales

80,297

66,945

 

      GROSS PROFIT

19,540

18,993

0

  Selling & Adm Costs

17,833

17,601

 

      OPERATING PROFIT

1,707

1,392

0

  Non-Operating P/L

60

-144

 

      RECURRING PROFIT

1,767

1,247

0

      NET PROFIT

967

780

 

 

  Cash

 

6,361

5,220

 

  Receivables

7,705

8,034

 

  Inventory

6,718

5,502

 

  Securities, Marketable

 

 

 

  Other Current Assets

3,387

2,656

0

      TOTAL CURRENT ASSETS

24,171

21,412

 

  Property & Equipment

4,703

5,335

 

  Intangibles

508

408

 

  Investments, Other Fixed Assets

3,822

4,087

0

      TOTAL ASSETS

33,204

31,242

 

  Payables

7,026

6,790

 

  Short-Term Bank Loans

1,894

2,045

 

 

 

 

 

  Other Current Liabs

5,126

4,920

0

      TOTAL CURRENT LIABS

14,046

13,756

 

  Debentures

 

 

 

  Long-Term Bank Loans

2,082

1,464

 

  Reserve for Retirement Allw

553

9

 

  Other Debts

 

674

1,190

0

      TOTAL LIABILITIES

17,356

16,419

 

      MINORITY INTERESTS

 

..

Common stock

2,559

2,559

 

Additional paid-in capital

711

711

 

Retained earnings

12,177

11,400

 

Evaluation p/l on investments/securities

 

 

 

Others

545

300

0

Treasury stock, at cost

(143)

(147)

 

      TOTAL S/HOLDERS` EQUITY

15,848

14,823

 

      TOTAL EQUITIES

33,204

31,242

0

 

Terms ending:

31/03/2014

31/03/2013

31/03/2012

Cash Flows from Operating Activities

 

1,920

2,103

 

Cash Flows from Investment Activities

-1,122

-1,197

 

Cash Flows from Financing Activities

86

-1,145

 

Cash, Bank Deposits at the Term End

 

6,303

5,217

 

31/03/2014

31/03/2013

IND/03/2014

Net Worth (S/Holders' Equity)

15,848

14,823

0

Current Ratio (%)

172.09

155.65

#DIV/0!

Net Worth Ratio (%)

47.73

47.45

#DIV/0!

Recurring Profit Ratio (%)

1.77

1.45

#DIV/0!

Net Profit Ratio (%)

0.97

0.91

#DIV/0!

 

Return On Equity (%)

6.10

5.26

#DIV/0!

Current Sales

99,837

Credit Limit

3,193.8

 

 

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

95,541

1,603

492

(%)

13,975

(Consolidated)

31/03/2012

89,082

1,656

693

-6.76

14,375

31/03/2013

85,937

1,247

780

-3.53

14,823

31/03/2014

99,837

1,767

967

16.17

15,848

31/03/2015

106,000

2,200

1,100

6.17

16,948

 Forecast (or estimated) figures for 2015  term.

     *..Unit: Million Yen

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.16

UK Pound

1

Rs.92.73

Euro

1

Rs.68.23

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.