MIRA INFORM REPORT

 

 

Report No. :

307763

Report Date :

11.02.2015

 

IDENTIFICATION DETAILS

 

Name :

EUROPEAN FLOWER DESIGN INC

 

 

Registered Office :

EFD Bldg, 3-23-1 Nihombashi-Hamacho Chuoku Tokyo 103-0007

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2015 (Estimated)

 

 

Date of Incorporation :

December 1996

 

 

Legal Form :

Limited Company

 

 

Line of Business :

·         Subject operates as Flower Arrangement Schools & Classes.

·         Subject also Wholesales Flowers

 

 

No of Employees :

75

 

 

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

 

Status :

Satisfactory 

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. Japan's industrial sector is 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 three 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. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. 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 2013 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 new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which is exceeding 230% 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 the year 2015. 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          

 

EUROPEAN FLOWER DESIGN INC

 

 

REGD NAME

 

KK European Flower Design Renmei

 

 

MAIN OFFICE

 

EFD Bldg, 3-23-1 Nihombashi-Hamacho Chuoku Tokyo 103-0007 JAPAN

 

Tel: 03-5640-8001      Fax: 03-5640-8101

 

*.. The is one of its flower arrangement classes in Tokyo

 

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

E-Mail address:            info@european.co.jp

 

 

ACTIVITIES  

 

·         Subject operates as Flower Arrangement Schools & Classes.

·         Subject also Wholesales Flowers

 

 

BRANCHES   

 

Osaka, Nagoya, Sendai, Chiba, Itami, Kumamoto

 

OFFICERS

 

AKIHISA IBIHARA, PRES

Miyako Iwama, rep dir

Tomofumi Nohara, dir

                       

Yen Amount:     In million Yen, unless otherwise stated


SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 4,062 M

PAYMENTSNo Complaints    CAPITAL           Yen 10 M

TREND UP                                WORTH            Yen 854 M       

STARTED         1996                             EMPLOYES      75

 

 

COMMENT    

 

OPERATION OF FLOWER ARRANGEMENT SCHOOLS/CLASSES.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 97.0 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established by Akihisa Ebihara in order to make most of his experience in the subject line of business.  The firm operates flower arrangement schools & classes nationwide.  It also wholesales flowers.  Clients are increasing these days.

 

 

FINANCIAL INFORMATION

           

The sales volume for Sept/2014 fiscal term amounted to Yen 4,062 million, a 1% up from Yen 4,027 million in the previous term.  The recurring profit was posted at Yen 199 million and the net profit at Yen 90 million, respectively, compared with Yen 175 million recurring profit and Yen 75 million net profit, respectively, a year ago.

 

For the current term ending Sept 2015 the recurring profit is projected at Yen 210 million and the net profit at Yen 95 million, respectively, on a 5% rise in turnover, to Yen 4,250 million. 

 

The financial situation is considered FAIR and good for ORDINARY business    engagements.  Max credit limit is estimated at Yen 97.0 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:           Dec 1996

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         800 shares

Issued:                200 shares

Sum:                   Yen 10 million

Major shareholders (%): Akihisa Ebihara (100)

 

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

 

 

OPERATION

           

Activities: Operates flower arrangement schools/classes nationwide, also sells flowers, other (--100%)

 

Clients: Flower arrangement instructors/teachers (90%), business firms, consumers, other 

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Naniwa Flower Auction Co (18%), Tokyo Flower Port, OTA Floriculture Auction Co, Meiko Flower Bridge, JF Hyogokenseika Inc, other

 

Payment record: No Complaints 

 

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

 

Bank References:

MUFG (Kasai)

SMBC (Kasai)

Relations: Satisfactory

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

30/09/2015

30/09/2014

30/09/2013

30/09/2012

Annual Sales

 

4,250

4,062

4,027

4,037

Recur. Profit

 

210

199

175

 

Net Profit

 

95

90

75

113

Total Assets

 

 

2,183

2,031

1,913

Current Assets

 

 

718

695

 

Current Liabs

 

 

555

521

 

Net Worth

 

 

854

788

738

Capital, Paid-Up

 

 

10

10

10

Div.Ttl in Million (¥)

 

 

25

25

25

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.63

0.87

-0.25

3.83

    Current Ratio

 

..

129.37

133.40

..

    N.Worth Ratio

 

..

39.12

38.80

38.58

    R.Profit/Sales

 

4.94

4.90

4.35

..

    N.Profit/Sales

 

2.24

2.22

1.86

2.80

    Return On Equity

 

..

10.54

9.52

15.31

 

Notes: Forecast (or estimated) figures for the 30/09/2015 fiscal term.

 

 

 

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.96

UK Pound

1

Rs.94.41

Euro

1

Rs.70.20

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

 

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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