MIRA INFORM REPORT

 

 

Report No. :

314737

Report Date :

10.04.2015

 

IDENTIFICATION DETAILS

 

Name :

SHIMAMURA MUSIC CO LTD

 

 

Registered Office :

6-37-3 Hirai Edogawa-ku, Tokyo, 132-0035

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2015

 

 

Year of Establishment  :

1962

 

 

Com. Reg. No.:

0117-01-003943

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, wholesales and retails (including online shops) musical instruments and accessories; operates piano & electronic organ classes.

 

 

No. of Employee :

1876

 

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 :

Satisfactory

 

 

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 – 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

 

SHIMAMURA MUSIC CO LTD

Japanese company name

Shimamura Gakki KK

Registered Office

1. Street Number and District

6-37-3 Hirai Edogawa-ku

2. City and Perefecture

Tokyo

3. ZIP Code

132-0035

4. Country

JAPAN

TEL

03-3613-4111

FAX

03-3613-4117

URL

www.shimamura.co.jp/

Email Address

inquiry@shimamura.co.jp

Activities (Services & Products)

 Imports, wholesales and retails (including online shops) musical instruments and accessories; operates piano & electronic organ classes.

 

 

 

 

 

SUMMARY OF REPORT

Annual Sales (MM YEN)

31,500

Capital Amount (MM YEN)

100

Net Worth (MM YEN)

Unavailable

FINANCES

FAIR

TREND

UP

EMPLOYEES

1876

 

OTHER INFORMATION FOLLOWS

YEAR STARTED

1962

YEAR REGISTERED

Mar.  1969

REGD NO.

0117-01-003943

LEGAL STATUS

Limited Company(Kabushiki Kaisha)

MAJOR SHAREHOLDERS

1

Shimamura Sogyo (25.5)

2

Mototsugu Shimamura (12.8)

3

Mayuko Sugano (10.4)

NUMBER OF SHAREHOLDERS

19

AUTHORIZED SHARES (MM)

17.28

ISSUED SHARES (MM)

5.31

SUM

Yen 100 million

EXECUTIVES

PRESIDENT

TOSHIAKI HIROSE

CHAIRMAN

Mototsugu Shimamura

VICE PRESIDENT

SENIOR MGN DIRECTOR

DIRECTOR

Keiichi Oshima

DIRECTOR

Fumitaka Haga

DIRECTOR

Satoko Shimamura

DIRECTOR

Mayuko Shimamura

MAIN BANKS

1

SMBC(Kameido)

2

MUFG(Kameido-kitaguchi)

RELATIONS

Satisfactory

CLIENTS

1

General consumers

2

Schools

3

Government agencies

4

Other

SUPPLIERS

1

Yamaha Corp

2

Roland

3

Fernandes Co

4

Korg

5

Other

BRANCHES

1

Tokyo

2

Sapporo

3

Sendai

4

Chiba

5

Other(Tot 153)

FACTORIES

1

None

OVERSEAS

1

None

 

HIGHLIGHT and COMMENT

 

Shimamura Music was founded in 1962 by Mototsugu Shimamura and opened its first music school that same year with 48 students. Musical instrument sales were later started for students who had a desire to learn but were unable to practice at home. 　They have since expanded the business, with most of new stores opening in major shopping centers throughout Japan. Success in developing stores and music schools that meet the expectations of various levels of players can be seen in their approximately 10% share of the musical instruments retail market in Japan, currently estimated at JPY 250 billion (US$2.8 billion). Shimamura Music has become the largest musical instruments retailer in Japan, with annual sales of Yen 30 billion and 140 locations nationwide, and the third largest music school operator, after Yamaha and Kawai.

 

 

 

 

 

FINANCIAL information

 

Financials are disclosed only partially.

 The sales volume for Feb/2014 fiscal term amounted to Yen 30,000 million, a 2.7% up from Yen 29,210 million in the previous term.  The net profit amounted at Yen 350 million which is increased from Yen 266 million in 2013.

 For the current term ending Feb/2015, the net profit at Yen 409 million is estimated based on a 5% rise in turnover, to Yen 31,500 million.  Only sales figures for 2015 has been disclosed.


The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 183.8 million, on 30 days normal terms.

PLEASE ATTACH THE FINANCIALS BELOW

 

 

 

 

 

Terms Ending:

28/02/2015

28/02/2014

28/02/2013

28/02/2012

Annual Sales

31,500

30,000

29,210

28,932

Recur. Profit

..

..

..

..

Net Profit

409

350

266

257

Total Assets

 

 

 

 

Net Worth

 

 

 

 

Capital, Paid-Up

 

 

 

 

Div.P.Share(¥)

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

5.00

2.70

0.96

#DIV/0!

       Current Ratio

 

..

..

..

       N.Worth Ratio

 

..

..

..

       N.Profit/Sales

1.30

1.17

0.91

0.89

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.26

UK Pound

1

Rs.92.49

Euro

1

Rs.66.99

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.