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Report No. : |
315293 |
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Report Date : |
17.04.2015 |
IDENTIFICATION DETAILS
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Name : |
CROSTER CO LTD |
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Registered Office : |
Croster Bldg, 2-17-14 Kaminarimon Taitoku Tokyo 111-0034 |
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Country : |
Japan |
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Financials (as on) : |
31.10.2014 |
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Date of Incorporation : |
Oct., 1988 |
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Com. Reg. No.: |
0105-01-003291 (Tokyo-Taitoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer (OEM) of Sports Bag, Rucksack, Tents (Manufactured in
China) |
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No. of Employees : |
37 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 |
CROSTER
CO LTD
REGD
NAME: KK Croster
MAIN
OFFICE: Croster Bldg, 2-17-14 Kaminarimon
Taitoku Tokyo 111-0034 JAPAN
Tel: 03-3845-0066 Fax: 03-3843-6300
E-Mail
address: (thru the URL)
Mfg (OEM) of sports bag, rucksack, tents
(Manufactured in China)
Osaka, Chiba (distribution center)
China
China (subsidiary factory)
KENJI HIGUCHI, PRES
Hitomi Higuchi, dir
Takao Higuchi, dir
Yen Amount: In
million Yen, unless otherwise stated
FINANCES WEAK A/SALES Yen 1,120 M
PAYMENTSSLOW CAPITAL Yen 70 M
TREND SLOW WORTH Yen (-)
570 M
STARTED 1988 EMPLOYES 37
MFR SPECIALIZING IN SPORTS BAGS.
FINANCIAL SITUATION CONSIDERED WEAK BUT SHOULD BE GOOD FOR MODERATE
BUSINESS ENGAGEMENTS.
RECOMMENDING NO DREDITS ON NEW TRANSACTIONS
WITHOUT STRICTLY SECURED TERMS.
The subject company was originally founded 1959
for making sports bags, and was incorporated in 1988. This is a specialized OEM mfr of sports bags,
fashion bags, outdoor goods, tents, other.
Mfg is all done in China at a subsidiary factories.
The sales volume for Oct/2014 fiscal term
amounted to Yen 1,120 million, a 17% steep down from Yen 1350 million in the
previous term. The licenses with major
companies were terminated. The
operations continued in the red to post Yen 200 million net losses for the
term, compared with Yen 400 million net losses a year ago.
For the current term ending Oct 2015 the
operations are projected to come back to prosperity but still limited to a
minimum amount post-taxes, on a 3% rise in turnover, to Yen 1,150 million.
The financial situation is considered WEAK
but should be good for MODERATE business engagements. No credits are
recommended on new transactions unless with strictly secured terms. The net
worth is negative.
Date
Registered: Oct 1988
Regd
No.: 0105-01-003291
(Tokyo-Taitoku)
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized: 560,000
shares
Issued: 140,000
shares
Sum:
Yen 70 million
Major shareholders (%): Great
Valley, Koshiro Higuchi, Kenji Higuchi, Takao Higuchi, other (Details not
disclosed)
No. of shareholders: 7
Nothing detrimental is known as to the
commercial morality of executives.
Activities: OEM produces sports bags, fashion bags,
sports accessories, tents, rucksacks, outdoor goods, other, all manufactured at
subsidiary factories in China (--100%)
Clients: [Mfrs, wholesalers] Aeon Retail, Alpen, Uny,
Asics, Ito-Yokado, other
No. of accounts: 300
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Special Valley (90%),
other
Payment
record: Slow
Location: Business area in Tokyo. Office
premises at the caption address are owned and maintained satisfactory.
Bank
References:
Resona
Bank (Nippori)
MUFG
(Kaminarimon)
Relations:
Money deposits & transfers only
(In
Million Yen)
|
Terms
Ending: |
|
31/10/2015 |
31/10/2014 |
31/10/2013 |
31/10/2012 |
|
Annual Sales |
|
1,150 |
1,120 |
1,350 |
2,200 |
|
Recur. Profit |
|
0 |
-220 |
.. |
-195 |
|
Net Profit |
|
0 |
-200 |
-400 |
-620 |
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Total Assets |
|
|
770 |
N/A |
1,500 |
|
Net Worth |
|
|
-570 |
-370 |
70 |
|
Capital, Paid-Up |
|
|
70 |
70 |
82 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
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<Analytical
Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
2.68 |
-17.04
|
-38.64
|
-22.29
|
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Current Ratio |
|
|
.. |
.. |
.. |
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N.Worth Ratio |
|
|
-74.03
|
.. |
4.67 |
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N.Profit/Sales |
|
0.00 |
-17.86
|
-29.63
|
-28.18
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Notes: Forecast (or estimated) figures for the
31/10/2015 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
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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>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 |
|
|
<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.