MIRA INFORM REPORT

 

 

Report No. :

353442

Report Date :

03.12.2015

 

IDENTIFICATION DETAILS

 

Name :

MARUZEN CO LTD

 

 

Registered Office :

2-3-10 Nihombashi Chuoku Tokyo

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2015

 

 

Date of Incorporation :

March, 1880

 

 

Com. Reg. No.:

0107-01-026217 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Wholesale and Retail of Books, Magazines, Educational Books, Other.

 

 

No. of Employees :

305

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Maximum Credit Limit :

Yen 227.0 Million

 

 

Status :

Satisfactory

 

 

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 – 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 and address

 

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

                                               

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Wholesale, retail of books, magazines, educational books, other

 

 

BRANCHES

 

19 Branches & Shops nationwide

 

 

FACTORIES

 

(Publishing is done by subsidiaries)

 

 

OFFICERS

           

EISUKE MATSUO, PRES          Mitsuo Nitta, ch

Mitsuhiko Ebihara, dir                Hiroyuki Koitani, dir

                                                           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

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

 

 

COMMENT

 

BOOK STORE OPERATOR.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 227.0 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

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.

 

 

FINANCIAL INFORMATION

           

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.

 

 

REGISTRATION

 

            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.

 

 

OPERATION

           

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

 

 

FINANCES

(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

UK Pound

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

 

 

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.