MIRA INFORM REPORT

 

 

Report No. :

308235

Report Date :

14.02.2015

 

IDENTIFICATION DETAILS

 

Name :

OTTO JAPAN INC

 

 

Registered Office :

Mikami Bldg, 1-18-1 Wakabayashi Setagayaku Tokyo 154-0023

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2015 (Estimated)

 

 

Date of Incorporation :

September 1986

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engaged as Mail Order House, Catalog Sales, In-Shop Store Sales, Outlet Mall Sales of Ladies’ Garments (Blouse, Shirts, Jackets, Skirts, Knit Sweater, Cardigans), Accessories (Shoes, Bags, Wallets) & House Interior Goods

 

 

No of Employees :

164

 

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 :

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 – 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

 

OTTO JAPAN INC

 

 

REGD NAME

 

Otto Japan KK

 

 

MAIN OFFICE

 

Mikami Bldg, 1-18-1 Wakabayashi Setagayaku Tokyo 154-0023 JAPAN

Tel: 03-5431-2800      Fax: 03-5431-2911

 

URL:                 http://www.otto-online.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Engaged as Mail Order House, Catalog Sales, In-Shop Store Sales, Outlet Mall Sales of Ladies’ Garments (Blouse, Shirts, Jackets, Skirts, Knit Sweater, Cardigans), Accessories (Shoes, Bags, Wallets) & House Interior Goods

 

 

BRANCHES

 

In-store shops at Keio & Matsuzakaya Dept Store; outlet mall in Saitama

 

 

OVERSEAS

 

Germany (Parent)

 

 

OFFICERS

 

SUSUMU TANAKA, PRES

Schaeffler Berhard, rep dir

                       

Yen Amount:     In million Yen, unless otherwise stated


SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 11,351 M

PAYMENTSSlow but Correct         CAPITAL           Yen 5,150 M

TREND SLOW                           WORTH            Yen 6,037 M     

STARTED         1986                             EMPLOYES      164

 

 

COMMENT    

 

MAIL ORDER HOUSE OF LADIES’ GARMENTS, OTHER, OWNED BY GERMAN CAPITAL.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established originally as a JV between Otto Versand GmbH & Co, Germany, and Sumisho Corp, as Sumisho Otto Mail Order Inc, as a mail order house and catalog sales of ladies’ garments & accessories.   In 2007, the German partner acquired full share of the company, and became its 100% subsidiary in Japan, and renamed Otto Japan Inc.  This is a mail order house & catalog sales company, but advanced into direct sales of these goods in department stores (now in Keio & Matsuzakaya Department Stores), and outlet malls (Otto Outlet) in Koshigaya, Saitama-Pref. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Feb/2014 fiscal term amounted to Yen 11,351 million, a 9% down from Yen 12,508 million in the previous term.  The operations, however, came back to profitability to post Yen 219 million recurring profit and Yen 156 million net profit, respectively, compared with Yen 158 million recurring loss and Yen 143 million net losses, respectively, a year ago.

 

For the current term ending Feb 2015 the recurring profit is projected at Yen 230 million and the net profit at Yen 165 million, respectively, on a 5% rise in turnover, to Yen 11,950 million. 

 

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

 

 

REGISTRATION

 

Date Registered:            Sept 1986

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         10.3 million shares

Issued:                10.3 million shares

Sum:                   Yen 5,150 million

Major shareholders (%): Otto-Asia Beteiligungs-Verwaltungs GmbH* (100)

 

*.. 100% subsidiary of Otto GmbH (Germany)

 

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

 

 

OPERATION

           

Activities: Mail order house, catalog sales, in-shop store sales, outlet mall sales of ladies’ garments (blouse, shirts, jackets, skirts, knit sweater, cardigans, other), accessories (shoes, bags, wallets, other), house interior goods (--100%)

 

Clients: Consumers 

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sumitomo Corp, Toyobo Co, Sankyo Seiko Co, Marukin Co, Euro Passion SA, Sunpac Co, Toyo Tokei Co, other

 

Payment record: Slow but Correct

 

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

 

Bank References:

SMBC (Tokyo)

Deutsche Bank (Tokyo)

Relations: Satisfactory

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

28/02/2015

28/02/2014

28/02/2013

29/02/2012

Annual Sales

 

11,950

11,351

12,508

13,041

Recur. Profit

 

230

219

-158

-540

Net Profit

 

165

156

-143

-403

Total Assets

 

 

8,453

8,457

9,680

Current Assets

 

 

5,746

5,722

6,981

Current Liabs

 

 

2,270

2,041

2,773

Net Worth

 

 

6,037

6,262

6,740

Capital, Paid-Up

 

 

5,150

5,150

5,150

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.28

-9.25

-4.09

-9.62

    Current Ratio

 

..

253.13

280.35

251.75

    N.Worth Ratio

 

..

71.42

74.05

69.63

    R.Profit/Sales

 

1.92

1.93

-1.26

-4.14

    N.Profit/Sales

 

1.38

1.37

-1.14

-3.09

    Return On Equity

 

..

2.58

-2.28

-5.98

 

Notes: Forecast (or estimated) figures for the 28/02/2015 fiscal term.

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.95.78

Euro

1

Rs.71.05

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

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.