MIRA INFORM REPORT

 

 

Report No. :

315816

Report Date :

16.04.2015

 

IDENTIFICATION DETAILS

 

Name :

MARUBENI FASHION LINK LTD

 

 

Registered Office :

Yoyogi 1-chome Bldg 4F, 1-22-1 Yoyogi Shibuyaku Tokyo 151-0053

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

April 1982

 

 

Com. Reg. No.:

0110-01-052802

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, exports and wholesales fabrics, yarn, clothing for women, men, children, clothing accessories, others

 

 

No. of Employee :

244

 

 

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 932.2 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 – 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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

MARUBENI FASHION LINK LTD

 

REGD NAME:   Marubeni Fashion Link KK

MAIN OFFICE:  Yoyogi 1-chome Bldg 4F, 1-22-1 Yoyogi Shibuyaku Tokyo 151-0053 JAPAN

                                    Tel: 03-3370-9161     Fax: 03-3370-9130

 

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

 

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of textile, yarn, clothing, clothing accessories

 

 

BRANCHES

 

Osaka

 

 

OFFICER(S)

 

 ATSUSHI SAITOH, PRES        Yoshio Hoden, mgn dir

Akihiro Yamamoto, dir             Yoshiyuki Matsumoto, dir

Yuji Takigawa, dir                     Atsushi Watanabe, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

                        FINANCES        FAIR                             A/SALES          Yen 65,000 M

                        PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 450 M

                        TREND SLOW                           WORTH            Yen 4,635 M

                        STARTED         1982                             EMPLOYES      244

 

 

COMMENT           

 

                        IMPORTER & EXPORTER OF TEXTILES, WHOLLY OWNED BY MARUBENI                                                             CORP. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGGEMENTS.

 

                        MAX CREDIT LIMIT: YEN 932.2 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a textile division separated from Marubeni Corp (See REGISTRATION).  This is a trading firm for import and export of textiles, textile goods, accessories.  In 2008, OEM operation division was transferred from the parent.  Clients include major apparel mfrs, wholesalers, other, nationwide.

           

 

FINANCIAL INFORMATION

 

Financials are consolidated by the parent, Marubeni Corp, and only partially disclosed.

 

The sales volume for Mar/2014 fiscal term amounted to Yen 65,000 million, a 19% down from Yen 80,000 million in the previous term.  Sales declined as demand very sluggish domestically.  The net profit was posted at Yen 612 million, compared with Yen 847 million net profit a year ago.

 

For the term that ended Mar 2015 the net profit was projected at Yen 650 million, on a 5% rise in turnover, to Yen 68,500 million.  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 932.2 million, on 30 days normal terms. 

 

 

REGISTRATION

 

            Date Registered:  Apr 1982

            Regd No.:            0110-01-052802 (Tokyo-Shibuyaku)

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         900,000 shares

            Issued:                900,000 shares

            Sum:                   Yen 450 million

            Major shareholders (%): Marubeni Corp*(100)

 

*.. Major general trading house, listed Tokyo SE, founded 1949, capital Yen 262,686 million, turnover Yen 7,055,700 million, operating profit Yen 110,060 million, recurring profit Yen 236,373 million, net profit Yen 210,945 million, total assets Yen 7,994,943 million, net worth Yen 1,551,053 million, employees 39,465, pres Fukuya Kokubu

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales fabrics, yarn, clothing for women (60%), men (20%), children (10%), clothing accessories, others (10%).

 

Clients: [Mfrs, wholesalers] San-Ei International, Impact 21, Aba House International, Value Planning, Nishimatsuya Chains, Five Foxes Co, Bay Cruise, Tomorrow Land, Five Fox Co, other

            No. of accounts: 800

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Takisada Osaka, Takisada Nagoya, Kyoei Iryo, Spirits, Teijin Ltd, Toray, Sun Top, Matsuoka Trading, other.

 

            Payment record: No Complaints

 

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

 

            Bank References:

                        Mizuho Bank (Yokoyamacho)

                        SMBC (Asakusabashi)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

68,500

65,000

80,000

69,488

Recur. Profit

 

 

 

 

1,727

Net Profit

 

650

612

847

905

Total Assets

 

 

19,868

20,965

24,776

Current Assets

 

 

19,523

20,513

24,091

Current Liabs

 

 

15,020

16,273

20,517

Net Worth

 

 

4,635

4,498

4,051

Capital, Paid-Up

 

 

450

450

450

Div.Ttl in Million (¥)

 

 

0.00

0.00

452

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.38

-18.75

15.13

1.15

    Current Ratio

 

..

129.98

126.06

117.42

    N.Worth Ratio

 

..

23.33

21.45

16.35

    R.Profit/Sales

 

..

..

..

2.49

    N.Profit/Sales

 

0.95

0.94

1.06

1.30

    Return On Equity

 

..

13.20

18.83

22.34

 

Notes: Financials are only partially disclosed as from the 31/03/2010 fiscal term.

Forecast (or estimated) figures for the 31/03/2015 fiscal term. 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.40

UK Pound

1

Rs.92.15

Euro

1

Rs.66.48

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.