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Report No. : |
353442 |
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Report Date : |
03.12.2015 |
IDENTIFICATION DETAILS
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Name : |
MARUZEN CO LTD |
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Registered Office : |
2-3-10 Nihombashi Chuoku Tokyo |
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Country : |
Japan |
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Financials (as on) : |
31.01.2015 |
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Date of Incorporation : |
March, 1880 |
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Com. Reg. No.: |
0107-01-026217 (Tokyo-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Wholesale and Retail of Books, Magazines, Educational Books, Other. |
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No. of Employees : |
305 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 227.0 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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 – 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 |
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Moderate |
B1 |
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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 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 |
MARUZEN CO LTD
REGD NAME: Maruzen
KK
MAIN OFFICE: Kokusai
Hamamatsucho Bldg, 1-9-18 Kaigan Minatoku Tokyo 105-0022 JAPAN
Tel: 03-6367-6014 Fax: 03-6367-6185
*.. The is its Ginza Branch (Store)
**.. Registered at: 2-3-10 Nihombashi Chuoku
Tokyo
E-Mail address: (thru the URL)
Wholesale, retail
of books, magazines, educational books, other
19 Branches & Shops
nationwide
(Publishing is done by subsidiaries)
EISUKE MATSUO,
PRES Mitsuo Nitta, ch
Mitsuhiko Ebihara,
dir Hiroyuki Koitani, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 43,674 M
PAYMENTSSLOW BUT CORRECT CAPITAL Yen 100 M
TREND STEADY WORTH Yen 2,303 M
STARTED 1880 EMPLOYES 305
BOOK STORE OPERATOR.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 227.0 MILLION, 30 DAYS NORMAL TERMS
The subject
company was established by Yuteki Hayashi, disciple of educator Yukichi
Fukuzawa, in order to publish
educational books & magazines. In Feb 2011, separated the publishing business to a subsidiary company. The firm now
manages book stores, operated by a subsidiary, and supervises overall business
operations. Operates 19 stores
nationwide. Clients include government agencies, universities, schools, business
firms, other nationwide.
The sales volume
for Jan/2015 fiscal term amounted to Yen 43,674 million, a 3% up from Yen
42,589 million in the previous term.
This is attributed to the increase of book demand from libraries,
laboratories, universities, other. The
operations continued in the deficit to post Yen 320 million recurring loss and
Yen 32 million net profit, respectively, compared with Yen 607 million
recurring loss and Yen 253 million net loss, respectively, a year ago.
For the current
term ending Jan 2016 the operations were projected to come back to
profitability to post Yen 300 million recurring profit and Yen 40 million net
profit, respectively, on a 3% rise in turnover, to Yen 44,980 million.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 227.0
million, on 30 days normal terms.
Date
Registered: Mar 1880
Regd
No.: 0107-01-026217 (Tokyo-Chuoku)
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized: 3
million shares
Issued:
1.76 million shares
Sum:
Yen 100 million
Major shareholders (%): Maruzen CHI
Holdings Co Ltd* (100)
*.. Holding company, founded 2010, listed Tokyo S/E, capital Yen 3,000 million,
sales Yen 168,813 million, operating loss Yen 2,024 million, recurring loss Yen
1,897 million, net loss Yen 845 million, total assets Yen 131,898 million, net
worth Yen 34,346 million, employees 1,451, pres Kiyotaka Nakagawa
Nothing detrimental is known as to the
commercial morality of executives.
Activities: Import of books,
journals, electronic content, online products, etc, and sales of imported and
Japanese products for university and educational markets and libraries in Japan;
international sales of Japanese books and journals; in-store sales of books,
journals, stationery and apparel; publishing; education-related business
consulting services; library operations outsourcing services; consulting on
installation of university facilities and libraries, other (--100%)
Clients: Consumers,
universities, government agencies, libraries, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesales] TOHAN Co, Sumitomo 3M, Okamura Corp, Nippan Co, Elsevier Japan,
Daiichi Steel Ind, Kongo Inc, other
Payment record: Slow but correct
Location: Business area in Tokyo. Office premises at
the caption address are leased and maintained satisfactorily.
Bank References:
SMBC (Kyobashi)
Mizuho Bank (Yaesuguchi)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
31/01/2016 |
31/01/2015 |
31/01/2014 |
31/01/2013 |
|
|
Annual
Sales |
|
44,980 |
43,674 |
42,589 |
47,801 |
|
Recur.
Profit |
|
300 |
-320 |
-607 |
-805 |
|
Net
Profit |
|
40 |
32 |
-253 |
-1,111 |
|
Total
Assets |
|
|
30,650 |
26,556 |
27,886 |
|
Current
Assets |
|
|
25,022 |
19,954 |
19,690 |
|
Current
Liabs |
|
|
25,850 |
22,027 |
22,893 |
|
Net
Worth |
|
|
2,303 |
2,141 |
2,402 |
|
Capital,
Paid-Up |
|
|
100 |
100 |
100 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
2.99 |
2.55 |
-10.90 |
-0.87 |
|
Current Ratio |
|
.. |
96.80 |
90.59 |
86.01 |
|
N.Worth Ratio |
|
.. |
7.51 |
8.06 |
8.61 |
|
R.Profit/Sales |
|
0.67 |
-0.73 |
-1.43 |
-1.68 |
|
N.Profit/Sales |
|
0.09 |
0.07 |
-0.59 |
-2.32 |
|
Return On Equity |
|
.. |
1.39 |
-11.82 |
-46.25 |
Notes: Forecast (or estimated) figures for the
31/01/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.62 |
|
|
1 |
Rs.100.34 |
|
Euro |
1 |
Rs.70.67 |
|
Yen |
1 |
Rs.0.54 |
Note :
Above are approximate rates obtained from sources believed to be correct
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 |
|
|
-- |
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.