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Report No. : |
317212 |
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Report Date : |
17.04.2015 |
IDENTIFICATION DETAILS
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Name : |
BARNEYS JAPAN CO LTD |
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Registered Office : |
Southgate Shinjuku 6F, 5-33-8 Sendagaya Tokyo 151-0051 |
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Country : |
Japan |
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Financials (as on) : |
28.02.2015 |
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Date of Incorporation : |
June, 1989 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Operates Apparel Chain Stores. |
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No. of Employees : |
563 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 387.9 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
BARNEYS JAPAN CO LTD
REGD NAME: KK
Barneys Japan
MAIN OFFICE: Southgate
Shinjuku 6F, 5-33-8 Sendagaya Tokyo 151-0051 JAPAN
Tel: 03-6880-1310
URL: http://www.barneys.co.jp/
E-Mail address: (thru the URL)
Operates apparel
chain stores
Shinjuku, Ginza
(Tokyo), Yokohama, Kobe, Fukuoka, other (Tot 10)
SHIN’ICHI UTADANI,
PRES Masashi Kawabe, dir
Hiroki Takeno, dir Takashi Matsumoto, dir
Takeshi Fukuda,
dir Keiji Tanaka, dir
Yen Amount:
In million Yen,
unless otherwise stated
FINANCES FAIR A/SALES Yen 19,726 M
PAYMENTSNO COMPLAINTS CAPITAL Yen 4,990 M
TREND STEADY WORTH Yen 6,095 M
STARTED 1989 EMPLOYES 563
APPAREL CHAIN STORE OPERATOR, JOINTLY OWNED BY SUMITOMO CORP AND
ITO-YOKADO.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 387.9 MILLION, 30 DAYS NORMAL TERMS.
The subject company was established as a JV by Barneys New York and Isetan Co Ltd, department operator, Tokyo in order to operate Barneys New York clothing stores in Japan. In Jun 2006, Isetan Co sold the entire share in the company to Sumitomo Corp and Tokio Marine Capital Co, an investment fund affiliated with Tokio Marine & Nichido Fire Insurance Co. By this transfer, the new partners obtained the rights to the Barneys brand for Japan. In Jan 2014, Ito-Yokado bought the share and became its part owner. Barneys Japan sells such foreign luxury brands as Armani & Gucci, in addition to the Barneys brand. 70% of the apparel & accessories are directly imported.
The sales volume
for Feb/2014 fiscal term amounted to Yen 19,726 million, a 1% up from Yen 19,521
million in the previous term. The recurring
profit was posted at Yen 532 million and the net profit at Yen 312 million,
respectively, compared with Yen 515 million recurring profit and Yen 381
million net profit, respectively, a year ago.
For the term that
ended Feb 2015 the recurring profit was projected at Yen 540 million and the
net profit at Yen 320 million, respectively, on a 3% rise in turnover, to Yen
20,300 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 387.9 million, on 30 days normal
Date Registered: Jun 1989
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 400,000 shares
Issued:
255,601 shares
Sum: Yen 4,990.482 million
Major
shareholders (%): Sumitomo Corp (50.1), Seven & I Holdings Co Ltd (49.9)
No. of shareholders: 2
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Operates 10 chain stores in Shinjuku, Ginza (--Tokyo) and Yokohama, other(--100%), retailing men’s & women’s high-end apparel, clothing accessories, cosmetics, golf wear, gift items, accessories, handling foreign luxury brands as Armani and Gucci, in addition to the Barneys brand. About 70% of the goods are directly imported.
Clients: Consumers
No. of accounts: Unavailable
Domestic areas of activities: Centered in greater-Tokyo
Suppliers: [Mfrs, wholesalers] Imports from Barneys New York, other.
Payment record: No Complaints
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References:
MUFG (Shinjuku-dori)
Mizuho Bank (Iidabashi)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
28/02/2015 |
28/02/2014 |
28/02/2013 |
29/02/2012 |
|
|
Annual
Sales |
|
20,300 |
19,726 |
19,521 |
18,553 |
|
Recur.
Profit |
|
540 |
532 |
515 |
|
|
Net
Profit |
|
320 |
312 |
381 |
292 |
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Total
Assets |
|
|
14,019 |
13,788 |
N/A |
|
Current
Assets |
|
|
6,166 |
5,671 |
|
|
Current
Liabs |
|
|
4,323 |
3,749 |
|
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Net
Worth |
|
|
6,095 |
5,783 |
5,402 |
|
Capital,
Paid-Up |
|
|
4,990 |
4,990 |
4,990 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
2.91 |
1.05 |
5.22 |
2.86 |
|
Current Ratio |
|
.. |
142.63 |
151.27 |
.. |
|
N.Worth Ratio |
|
.. |
43.48 |
41.94 |
.. |
|
R.Profit/Sales |
|
2.66 |
2.70 |
2.64 |
.. |
|
N.Profit/Sales |
|
1.58 |
1.58 |
1.95 |
1.57 |
|
Return On Equity |
|
.. |
5.12 |
6.59 |
5.41 |
Notes: Forecast
(or estimated) figures for the 28/0/2015 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.37 |
|
|
1 |
Rs.92.44 |
|
Euro |
1 |
Rs.66.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
|
|
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 |
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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 |
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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 |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.