MIRA INFORM REPORT

 

 

Report No. :

320382

Report Date :

29.04.2015

 

IDENTIFICATION DETAILS

 

Name :

JEUGIA CO LTD

 

 

Registered Office :

Sound Stage 4F, 61 Benkeiishi-cho Teramachi-Nishiiru Sanjo-dori Nakagyoku Kyoto 604-8082

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

May, 1952

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Retail of Musical Instruments, Operate of Music Schools.

 

 

No. of Employees :

190

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Moderate

 

 

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

 

JEUGIA CO LTD

 

REGD NAME:               KK Jeugia

 

MAIN OFFICE:              Sound Stage 4F, 61 Benkeiishi-cho Teramachi-Nishiiru Sanjo-dori Nakagyoku

                                                Kyoto 604-8082 JAPAN

                                                Tel: 075-255-1566     Fax: 075-211-9501

 

                                    *.. The is one of its shops-

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Retail of musical instruments, operate of music schools

 

 

BRANCHES

 

132 shops/music schools

 

 

CHIEF EXEC

 

MASASHI NISHIMURA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 7,892 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 957 M

TREND UP                                WORTH                        Yen 2,370 M

STARTED         1952                             EMPLOYES                 190

 

 

COMMENT

 

OPERATOR OF MUSIC SCHOOLS, RETAILER OF MUSICAL INSTRUMENTS. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is a Kyoto-based retailer, starting as musical instruments sales agency for Yamaha Corp. Expanded operations into music lessons, marine sports equipment, furniture, etc. Audiovisual software now 2nd mainline. Also deals in design and management of swimming pools. Music schools will grow steadily.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 7,892 million, a 5.4% down from Yen 8,342 million in the previous term.  The recurring profit was posted at Yen 29 million and the net losses of Yen 54 million for the term, respectively, compared with Yen 160 million recurring profit and Yen 56 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 150 million and the net profit at Yen 58 million, respectively, on a 2.6% rise in turnover, to Yen 8,100 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.

 

 

REGISTRATION

           

Date Registered:　                May 1952

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              24 million shares

Issued:                         8,272,500 shares

Sum:                            Yen 957 million

 

Major shareholders (%): Yamaha Music Japan (31.9), Mizuho Bank (4.9), Bank of Kyoto (4.8), Shiga Bank (4.8), Customers’ S/Holding Assn (3.4), Nippon Life Ins (3.0), Employees’ S/Holding Assn (2.9), Tanaka Shoten (2.8), Ryuichi Suzuki (2.5), Daiwa Corp (2.0); foreign owners (0.0)

 

No. of shareholders: 470

 

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

 

Managements: Masashi Nishimura, pres; Yoshikazu Kawamura, mgn dir; Shin’ichi Araki, dir; Atsushi Yamane, dir; Naoki Yamamori, dir; Hiroshi Ono, dir

 

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

 

 

OPERATION

           

Activities: Operates music schools (52%), retails musical instruments (31%), AV software (13%), others (4%)

           

Clients: [Mfrs, wholesalers] Nintendo Co, Kentetsu Department Store, universities, schools, municipal offices, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Yamaha Music Japan, Osaka Murakami Gakki, Japan                                Creation, Avex Music Creative, other

 

Payment record: No Complaints

 

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

 

Bank References:

            Mizuho Bank (Shijo)

            Bank of Kyoto (Shijo)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

7,892

8,342

　

  Cost of Sales

4,562

4,885

　

      GROSS PROFIT

3,330

3,457

　

  Selling & Adm Costs

3,298

3,296

　

      OPERATING PROFIT

31

161

　

  Non-Operating P/L

-2

-1

　

      RECURRING PROFIT

29

160

　

      NET PROFIT

-54

56

BALANCE SHEET

　

　

  Cash

　

1,112

1,008

　

  Receivables

195

404

　

  Inventory

777

771

　

  Securities, Marketable

　

　

　

  Other Current Assets

394

493

　

      TOTAL CURRENT ASSETS

2,478

2,676

　

  Property & Equipment

1,819

1,784

　

  Intangibles

39

39

　

  Investments, Other Fixed Assets

1,335

1,271

　

      TOTAL ASSETS

5,671

5,770

　

  Payables

488

523

　

  Short-Term Bank Loans

582

582

　

　

　

　

　

  Other Current Liabs

1,197

1,352

　

      TOTAL CURRENT LIABS

2,267

2,457

　

  Debentures

　

　

　

  Long-Term Bank Loans

761

683

　

  Reserve for Retirement Allw

136

131

　

  Other Debts

　

137

131

　

      TOTAL LIABILITIES

3,301

3,402

　

      MINORITY INTERESTS

　

　

Common stock

957

957

　

Additional paid-in capital

985

985

　

Retained earnings

286

366

　

Evaluation p/l on investments/securities

147

64

　

Others

0

0

　

Treasury stock, at cost

(5)

(5)

　

      TOTAL S/HOLDERS` EQUITY

2,370

2,367

　

      TOTAL EQUITIES

5,671

5,770

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

397

53

　

Cash Flows from Investment Activities

-122

-248

　

Cash Flows from Financing Activities

-165

-216

　

Cash, Bank Deposits at the Term End

　

758

649

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

2,370

2,367

　

Current Ratio (%)

109.31

108.91

　

Net Worth Ratio (%)

41.79

41.02

　

Recurring Profit Ratio (%)

0.37

1.92

　

Net Profit Ratio (%)

-0.68

0.67

　

　

Return On Equity (%)

-2.28

2.37

 

           

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.33

UK Pound

1

Rs.96.52

Euro

1

Rs.68.93

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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

 

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.