MIRA INFORM REPORT

 

 

Report No. :

315237

Report Date :

25.04.2015

 

IDENTIFICATION DETAILS

 

Name :

CONNECT HOLDINGS CORP

 

 

Registered Office :

2-10-2 Minami-Azabu Minatoku Tokyo 106-0047

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2014

 

 

Date of Incorporation :

March 2011

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Holding Company: business alliance (61%), concept marketing shops (39%)

 

[We tried to confirm / obtain the detailed activity but the same is not available from any sources]

 

 

No. of Employee :

37

           

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

YEN 34.2 MILLION

 

Status :

Moderate

 

 

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. 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

 

CONNECT HOLDINGS CORP

 

REGD NAME:   Connect Holdings KK

MAIN OFFICE:  2-10-2 Minami-Azabu Minatoku Tokyo 106-0047 JAPAN

                                    Tel: 03-5439-6580     Fax: 03-5439-6581     -

 

URL:                 http://www.connect-hd.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Holding Company

 

 

BRANCHES

 

Nil

 

 

CHIEF EXEC

 

NOBUMI NAGAKURA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK                       A/SALES          Yen 1,510 M

                                    PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 416 M

                                    TREND             UP                                WORTH            Yen 487 M

                                    STARTED         2011                             EMPLOYES      37

 

 

COMMENT

 

HOLDING COMPANY 

FINANCIAL SITUATION COSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

            MAX CREDIT LIMIT: YEN 34.2 MILLION, 30 DAYS NORMAL TERMS

 

                        Unit: In Million Yen

Forecast figures for the 31/08/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a Holding Company of SBY Co, and was established by Connect Technologies Corp, listed on the Tokyo S/E, but was delisted on this establishment.  SBY is engaged in selling miscellaneous goods for young girls.  Started solar power generation business in Nov 2014.  Also engaged in the system sales business making contribution to earnings.

 

 

FINANCIAL INFORMATION

 

The sales volume for Aug/2014 fiscal term amounted to Yen 1,510 million, a 3.7% up from Yen 1,456 million in the previous term.  The recurring profit was posted at Yen 29 million and the net profit at Yen 11 million, respectively, compared with Yen 27 million recurring profit and Yen 42 million net profit, respectively, a year ago.

 

For the current term ending Aug 2015 the recurring profit is projected at Yen 60 million and the net profit at Yen 60 million, respectively, on a 25.8% rise in turnover, to Yen 1,900 million.   

Newly started solar generation business and the systems sales business will contribute to raise earnings.

 

(Sept/2014/Feb/2015 results): Sales Yen 643 million (down 13.4%), operating loss Yen 82 million (previously Yen 23 million profit), recurring loss Yen 92 million (previously Yen 13 million profit), net loss Yen 65 million (previously Yen 1 million profit).  (% & figures as compared with the corresponding period a year ago).

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  Max credit limit is estimated at Yen 34.2 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　Mar 2011

                        Legal Status:         Limited Company (Kabushiki Kaisha

                        Authorized:          164 million shares

                        Issued:                 55,008,601 shares

                        Sum:                   Yen 416 million

 

Major shareholders (%): Tatsuo Sato (51.3), Mitsuru Yabuki (6.4), Chuzo Takeyama (1.7), Shigeki Nishitani (1.0), Tsukasa Maeda (0.9), other; foreign owners (0.7)

 

No. of shareholders: 6,403

 

                        Listed on the S/Exchange (s) of: Tokyo (Second section)

 

Managements: Nobumi Nagakura, pres; Taiji Okuda, dir; Toshiyuki Sekimoto, dir; Tatsuo Sato, dir; Wataru Kawakura, dir; Yujiro Yamada, dir; Yoko Nagoshi, dir; Masafumi Kikumoto, dir

 

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

 

                        Related companies: SBY.

 

 

OPERATION

           

Activities: Holding Company: business alliance (61%), concept marketing shops (39%)

                        Clients: [Mfrs, wholesalers] SBY

                        No. of accounts: 1 (for distribution nationwide)

                        Domestic areas of activities: Nationwide

                        Suppliers: Mfrs, wholesalers, other

                          Payment record: Slow but correct

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

 

                        Bank References:

                                    MUFG (Omotesando)

                                    Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/08/2014

31/08/2013

INCOME STATEMENT

　

　

  Annual Sales

　

1,510

1,456

　

  Cost of Sales

753

650

　

      GROSS PROFIT

757

806

　

  Selling & Adm Costs

721

765

　

      OPERATING PROFIT

35

40

　

  Non-Operating P/L

-6

-13

　

      RECURRING PROFIT

29

27

　

      NET PROFIT

11

42

BALANCE SHEET

　

　

  Cash

　

70

110

　

  Receivables

96

78

　

  Inventory

194

103

　

  Securities, Marketable

　

　

　

  Other Current Assets

331

92

　

      TOTAL CURRENT ASSETS

691

383

　

  Property & Equipment

62

70

　

  Intangibles

59

80

　

  Investments, Other Fixed Assets

81

127

　

      TOTAL ASSETS

893

660

　

  Payables

92

59

　

  Short-Term Bank Loans

77

37

　

　

　

　

　

  Other Current Liabs

128

112

　

      TOTAL CURRENT LIABS

297

208

　

  Debentures

　

　

　

  Long-Term Bank Loans

107

48

　

  Reserve for Retirement Allw

　

　

　

  Other Debts

　

1

2

　

      TOTAL LIABILITIES

405

258

　

      MINORITY INTERESTS

　

　

Common stock

416

381

　

Additional paid-in capital

422

387

　

Retained earnings

(356)

(367)

　

Evaluation p/l on investments/securities

　

　

　

Others

5

0

　

Treasury stock, at cost

　

　

　

      TOTAL S/HOLDERS` EQUITY

487

401

　

      TOTAL EQUITIES

893

660

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/08/2014

31/08/2013

　

Cash Flows from Operating Activities

　

-15

-17

　

Cash Flows from Investment Activities

-208

-68

　

Cash Flows from Financing Activities

182

93

　

Cash, Bank Deposits at the Term End

　

68

110

ANALYTICAL RATIOS            Terms ending:

31/08/2014

31/08/2013

　

Net Worth (S/Holders' Equity)

487

401

　

Current Ratio (%)

232.66

184.13

　

Net Worth Ratio (%)

54.54

60.76

　

Recurring Profit Ratio (%)

1.92

1.85

　

Net Profit Ratio (%)

0.73

2.88

　

　

Return On Equity (%)

2.26

10.47

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.40

UK Pound

1

Rs.95.42

Euro

1

Rs.68.49

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.