MIRA INFORM REPORT

 

 

Report No. :

335579

Report Date :

05.08.2015

 

IDENTIFICATION DETAILS

 

Name :

NAGAO INTERNATIONAL INC

 

 

Registered Office :

AG Bldg 6F, 3-18-17 Minamiaoyama Minatoku Tokyo 107-0062

 

 

Country :

Japan

 

 

Financials (as on) :

31.07.2014

 

 

Date of Incorporation :

August 1987

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is Imports and wholesales costume jewelry, fashion watches, hand bags, sunglasses, reading glasses, belts, umbrellas, neckties, fashion accessories, apparel, interior decorative items

 

 

No. of Employee :

3

 

 

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 :

Small Company

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company name

 

NAGAO INTERNATIONAL INC

 

 

REGD NAME

 

KK Nagao International

 

 

MAIN OFFICE

 

AG Bldg 6F, 3-18-17 Minamiaoyama Minatoku Tokyo 107-0062 JAPAN

Tel: 03-3401-8101     Fax: 03-3401-4422

 

                       

URL

 

http://www.abiste.co.jp (Of the parent, Abiste Corp)

 

 

E-Mail address

 

soumu@abiste.co.jp

 

 

ACTIVITIES

 

Import, wholesale of costume jewelry, apparel, clothing accessories

 

 

BRANCHES

 

Nil

 

 

OFFICERS

 

YOSHITO NAGAO, PRES

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 1,400 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 10 M

TREND STEADY                       WORTH            Yen 115 M

STARTED         1987                             EMPLOYES      3

 

IMPORTER OF FASHION ACCESSORIES, WHOLLY OWNED BY ABISTE CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of trading division separated from     Abiste Corp, operator of boutique stores, at the caption address (See REISTRATION). Yoshito Nagao is concurrently pres at the parent.  Management & operations are fully integrated with the parent, with same phone/Fax numbers & Website used.  This is virtually import division of the parent.  Specializes in importing and wholesaling costume jewelry, fashion watches, hand bags, sunglasses, belts, neckties, apparel, home interior items, other. Goods are wholly shipped to the parent, who operates more than 100 direct            managed stores plus 120 licensed stores in leading hotels & department stores, nationwide.  Goods are imported from     about 20 countries: France, Italy, Germany, UK, USA, etc.

 

 

FINANCIAL INFORMATION

           

Financials are only partially disclosed.

 

The sales volume for Jul/2014 fiscal term amounted to Yen 1,017 million, an almost silar amount of Yen 1,009 in the previous ter.  The recurring profit was posted at Yen 138 million and the net profit at Ye 85 million, respectively, compared with Yen 104 recurring profit and Yen 61 million net profit, respectively, a year ago.

 

For the term that ended Jul 2015 the recurring profit was projected at Yen 140 million and the net profit at Yen 87 million, on a 3% rise in turnover, at Yen 1,050 million,  Final results are yet to be disclosed.

 

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

 

 

 

REGISTRATION

 

Date Registered:               Aug 1987

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         800 shares

Issued:                200 shares

Sum:                   Yen 10 million

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

 

*.. Boutique store operator (105 direct run stores & 120 licensed stores in hotels), at the caption address, founded 1976, capital Yen 17 million, turnover Yen 3,800 million, net profit Yen 480 million, employees 250, pres Yoshito Nagao, concurrently.

           

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

 

 

OPERATION

 

Activities: Imports and wholesales costume jewelry, fashion watches, hand bags, sunglasses, reading glasses, belts, umbrellas, neckties, fashion accessories, apparel, interior decorative items, others (--100%).

 

Goods are imported from France, Italy, Germany, UK, USA, other in 20 countries                                     worldwide, and wholly shipped to the parent, Abiste Corp.

 

Clients: [Boutique operator] Shipped wholly to the parent, Abiste Corp. 

No. of accounts: 1

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Imports from France, Italy, Germany, UK, USA, other in

20 countries worldwide.

Payment record: No Complaints

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

 

Bank References:

MUFG (Aoyama)

Mizuho Bank (Aoyama)

Relations: Satisfactory

 

FINANCES

 

(In Million Yen)

Terms Ending:

 

31/07/2015

31/07/2014

31/07/2013

31/07/2012

Annual Sales

 

1,050

1,017

1,009

718

Recur. Profit

 

140

138

104

..

Net Profit

 

87

85

61

16

Total Assets

 

 

1,382

1,304

1,184

Net Worth

 

 

1,114

1,027

966

Capital, Paid-Up

 

 

10

10

10

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.24

0.79

40.53

-13.49

    Current Ratio

 

 

#DIV/0!

..

..

    N.Worth Ratio

 

 

80.61

78.76

81.59

    N.Profit/Sales

 

8.29

8.36

6.05

2.23

 

Note: Financials are only partially disclosed.

Forecast (or estimated) for the 31/07/2015 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.91

UK Pound

1

Rs.99.82

Euro

1

Rs.70.05

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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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